Finance (No. 2) Act 2017

JurisdictionUK Non-devolved
Citation2017 c. 32


Finance (No. 2) Act 2017

2017 Chapter 32

An Act to grant certain duties, to alter other duties, and to amend the law relating to the national debt and the public revenue, and to make further provision in connection with finance.

[16 November 2017]

Most Gracious Sovereign

WE, Your Majesty’s most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary supplies to defray Your Majesty’s public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and to grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

1 Direct taxes

PART 1

Direct taxes

Income tax: employment and pensions

Income tax: employment and pensions

S-1 Taxable benefits: time limit for making good

1 Taxable benefits: time limit for making good

(1) Part 3 of ITEPA 2003 (employment income: earnings and benefits etc treated as earnings) is amended as follows.

(2) In section 87 (cash equivalent of benefit of non-cash voucher)—

(a)

(a) in subsection (2)(b), for “to the person incurring it” substitute “, to the person incurring it, on or before 6 July following the relevant tax year”, and

(b)

(b) after subsection (2) insert—

“(2A) If the voucher is a non-cash voucher other than a cheque voucher, the relevant tax year is—

(a) the tax year in which the cost of provision is incurred, or

(b) if later, the tax year in which the employee receives the voucher.

(2B) If the voucher is a cheque voucher, the relevant tax year is the tax year in which the voucher is handed over in exchange for money, goods or services.”

(3) In section 88(3) (time at which cheque voucher treated as handed over), at the beginning insert “For the purposes of subsection (2) and sections 87(2B) and 87A(6),”.

(4) In section 94(2) (cash equivalent of benefit of credit-token), in paragraph (b), for the words from “employee” to the end substitute

“employee—

(i) to the person incurring it, and

(ii) on or before 6 July following the tax year which contains the occasion in question.”

(5) In section 105(2) (cash equivalent of benefit of living accommodation costing £75,000 or less), in paragraph (b), after “made good” insert “, on or before 6 July following the tax year which contains the taxable period,”.

(6) In section 106(3) (cash equivalent of benefit of living accommodation costing over £75,000), in paragraph (a), for the words from “paid” to “exceeds” substitute

“paid—

(i) by the employee,

(ii) in respect of the accommodation,

(iii) to the person providing it, and

(iv) on or before 6 July following the tax year which contains the taxable period,

exceeds”.

(7) In section 144 (deduction for payments for private use of car)—

(a)

(a) in subsection (1)(b), for “in” substitute “on or before 6 July following”,

(b)

(b) in subsection (2), after “paid” insert “as mentioned in subsection (1)(b)”, and

(c)

(c) in subsection (3), after “paid” insert “as mentioned in subsection (1)(b)”.

(8) In section 151(2) (when cash equivalent of benefit of car fuel is nil)—

(a)

(a) in the words before paragraph (a) omit “in the tax year in question”,

(b)

(b) in paragraph (a), at the beginning insert “in the tax year in question,”, and

(c)

(c) in paragraph (b), at the end insert “on or before 6 July following that tax year”.

(9) In section 152(2) (car fuel: proportionate reduction of cash equivalent)—

(a)

(a) in the words before paragraph (a) omit “for any part of the tax year in question”,

(b)

(b) in paragraph (a), at the beginning insert “for any part of the tax year in question,”,

(c)

(c) in paragraph (b), at the beginning insert “for any part of the tax year in question,”, and

(d)

(d) in paragraph (c)—

(i) after “employee”, in the first place it occurs, insert

“—

(i) for any part of the tax year in question,”, and

(ii) for “and the employee does make good that expense” substitute

“, and

(ii) the employee does make good that expense on or before 6 July following that tax year”.

(10) In section 158 (reduction for payments for private use of van)—

(a)

(a) in subsection (1)(b), for “in” substitute “on or before 6 July following”,

(b)

(b) in subsection (2), after “paid” insert “as mentioned in subsection (1)(b)”, and

(c)

(c) in subsection (3), after “paid” insert “as mentioned in subsection (1)(b)”.

(11) In section 162(2) (when cash equivalent of benefit of van fuel is nil)—

(a)

(a) in the words before paragraph (a) omit “in the tax year in question”,

(b)

(b) in paragraph (a), at the beginning insert “in the tax year in question,”, and

(c)

(c) in paragraph (b), at the end insert “on or before 6 July following that tax year”.

(12) In section 163(3) (van fuel: proportionate reduction of cash equivalent)—

(a)

(a) in the words before paragraph (a) omit “for any part of the tax year in question”,

(b)

(b) in paragraph (a), at the beginning insert “for any part of the tax year in question,”,

(c)

(c) in paragraph (b), at the beginning insert “for any part of the tax year in question,”, and

(d)

(d) in paragraph (c)—

(i) after “employee”, in the first place it occurs, insert

“—

(i) for any part of the tax year in question,”, and

(ii) for “and the employee does make good that expense” substitute

“, and

(ii) the employee does make good that expense on or before 6 July following that tax year”.

(13) In section 203(2) (cash equivalent of benefit treated as earnings), for “to the persons providing the benefit” substitute “, to the persons providing the benefit, on or before 6 July following the tax year in which it is provided”.

(14) The amendments made by this section have effect for the purpose of calculating income tax charged for the tax year 2017-18 or any subsequent tax year.

S-2 Taxable benefits: ultra-low emission vehicles

2 Taxable benefits: ultra-low emission vehicles

(1) ITEPA 2003 is amended as follows.

(2) In section 139 (car with a CO 2 emissions figure: the appropriate percentage), for subsections (1) to (6) substitute—

“(1) The appropriate percentage for a year for a car with a CO 2 emissions figure of less than 75 is determined in accordance with the following table.Car Appropriate percentageCar with CO 2 emissions figure of 02%Car with CO 2 emissions figure of 1 - 50Car with electric range figure of 130 or more2%Car with electric range figure of 70 - 1295%Car with electric range figure of 40 - 698%Car with electric range figure of 30 - 3912%Car with electric range figure of less than 3014%Car with CO 2 emissions figure of 51 - 54 15%Car with CO 2 emissions figure of 55 - 5916%Car with CO 2 emissions figure of 60 - 6417%Car with CO 2 emissions figure of 65 - 6918%Car with CO 2 emissions figure of 70 - 7419%

(2) For the purposes of subsection (1) and the table, if a CO 2 emissions figure or an electric range figure is not a whole number, round it down to the nearest whole number.

(3) The appropriate percentage for a year for a car with a CO 2 emissions figure of 75 or more is whichever is the lesser of—(a) 20% plus one percentage point for each 5 grams per kilometre driven by which the CO 2 emissions figure exceeds 75, and(b) 37%.

(4) For the purposes of subsection (3), if a CO 2 emissions figure is not a multiple of 5, round it down to the nearest multiple of 5.

(5) In this section, an “electric range figure” is the number of miles which is the equivalent of the number of kilometres specified in an EC certificate of conformity, an EC type-approval certificate or a UK approval certificate on the basis of which a car is registered, as being the maximum distance for which the car can be driven in electric mode without recharging the battery.”

(3) In section 140 (car without a CO 2 emissions figure: the appropriate percentage)—

(a)

(a) in subsection (2), in the table —

(i) for “23%” substitute “24%”, and

(ii) for “34%” substitute “35%”;

(b)

(b) in subsection (3)(a), for “16%” substitute “2%”.

(4) In section 142(2) (car first registered before 1 January 1998: the appropriate percentage), in the table—

(a)

(a) for “23%” substitute “24%”, and

(b)

(b) for “34%” substitute “35%”.

(5) Omit subsection 170(3).

(6) The amendments made by this section have effect for the tax year 2020-21 and subsequent tax years.

S-3 Pensions advice

3 Pensions advice

(1) In Chapter 9 of Part 4 of ITEPA 2003, after section 308B insert—

“ 308C. Provision of pensions advice: limited exemption(1) No liability to income tax arises in respect of—(a) the provision of relevant pensions advice to an employee or former or prospective employee, or(b) the payment or reimbursement of costs incurred, by or in respect of an employee or former or prospective employee, in obtaining relevant pensions advice,if Condition A or B is met.(2) But subsection (1) does not apply in relation to a person in a tax year so far as the value of the exemption in the person’s case in that year exceeds £500.(3) The “value of the exemption”, in relation to a person and a tax year, is the amount exempted by subsection (1) from income tax in the person’s case in that year, disregarding subsection (2) for this purpose.(4) If in a tax year there is in relation to an individual more than one person who is an employer or former employer, subsections (1) to (3) apply in relation to the individual as employee or former or prospective employee of any one of those persons separately from their application in relation to the individual as employee or former or prospective employee of any other of those persons.(5) “Relevant pensions advice”, in relation to a person, means information, or advice, in connection with—(a) the person’s pension arrangements, or(b) the use of the person’s pension funds.(6) Condition A is that the relevant pensions advice, or payment...

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