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Finance Act 1994, SCHEDULE 7 is up to date with all changes known to be in force on or before 29 March 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

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Changes and effects yet to be applied to Schedule 7:

Changes and effects yet to be applied to the whole Act associated Parts and Chapters:

Whole provisions yet to be inserted into this Act (including any effects on those provisions):

  • s. 16A(2)(g) inserted by 2023 c. 30 Sch. 13 para. 28
  • s. 160(2)-(7) modified by 2010 c. 8 s. 464(6) (as inserted) by 2017 c. 32 Sch. 5 para. 1
  • Sch. 5 para. 2(1)(pa) inserted by S.I. 2022/109 reg. 4 (This amendment not applied to legislation.gov.uk. The affecting statutory instrument has no legal effect. It was made under a procedure which meant that it ceased to have effect 28 days after signing unless it was debated and approved in Parliament within that time. It was not debated and approved within 28 days, so it has expired with no effect.)

Section 64.

SCHEDULE 7U.K. Insurance premium tax

Modifications etc. (not altering text)

C1Sch. 7 extended (19.3.1997) by 1997 c. 16, s. 50, Sch. 5 Pt. I paras. 1, 4(2)

Part IU.K. Information

RecordsU.K.

1(1)Regulations may require registrable persons to keep records.U.K.

(2)Regulations under sub-paragraph (1) above may be framed by reference to such records as may be specified in any notice published by the Commissioners in pursuance of the regulations and not withdrawn by a further notice.

(3)Regulations may [F1

(a)]require any records kept in pursuance of the regulations to be preserved for such period not exceeding six years as may be specified in the regulations.

[F2(b)authorise the Commissioners to direct that any such records need only be preserved for a shorter period than that specified in the regulations, and

(c)authorise a direction to be made so as to apply generally or in such cases as the Commissioners may stipulate.]

[F3(4)A duty under the regulations to preserve records may be discharged—

(a)by preserving them in any form and by any means, or

(b)by preserving the information contained in them in any form and by any means,

subject to any conditions or exceptions specified in writing by the Commissioners.]

Textual Amendments

F1Words in Sch. 7 para. 1(3) renumbered as Sch. 7 para. 1(3)(a) (1.4.2010) by Finance Act 2009 (c. 10), s. 98(2), Sch. 50 para. 1(2)(a); S.I. 2010/815, art. 2

F2Sch. 7 para. 1(3)(b)(c) inserted (1.4.2010) by Finance Act 2009 (c. 10), s. 98(2), Sch. 50 para. 1(2)(b); S.I. 2010/815, art. 2

F3Sch. 7 para. 1(4) substituted for Sch. 7 para. 1(4)-(6) (1.4.2010) by Finance Act 2009 (c. 10), s. 98(2), Sch. 50 para. 1(3); S.I. 2010/815, art. 2

Other provisionsU.K.

F42U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F53U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part IIU.K. Powers

Entry, arrest, etc.U.K.

4F6(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

F7(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Modifications etc. (not altering text)

C2Sch. 7 para. 4(3): power of seizure extended (prosp.) by 2001 c. 16, ss. 50-55, 68, 138(2), Sch. 1 Pt. I para. 57

C3Sch. 7 para. 4(3) powers of seizure extended (1.4.2003) by Criminal Justice and Police Act 2001 (c. 16), ss. 50, 138(2), Sch. 1 para. 57 (with ss. 52-54, 68); S.I. 2003/708, art. 2(a)

[F9 Order for access to recorded information etc.]U.K.

Textual Amendments

F9Sch. 7 para. 4A and the preceding cross-heading inserted (1.5.1995) by 1995 c. 4, s. 34, Sch. 5 para. 8(1)

F104A(1)Where, on an application by an authorised person, a justice of the peace or, in Scotland, a justice (within the meaning of section 462 of the M1Criminal Procedure (Scotland) Act 1975) is satisfied that there are reasonable grounds for believing—U.K.

(a)that an offence in connection with tax is being, has been or is about to be committed, and

(b)that any recorded information (including any document of any nature whatsoever) which may be required as evidence for the purpose of any proceedings in respect of such an offence is in the possession of any person,

he may make an order under this paragraph.

(2)An order under this paragraph is an order that the person who appears to the justice to be in possession of the recorded information to which the application relates shall—

(a)give an authorised person access to it, and

(b)permit an authorised person to remove and take away any of it which he reasonably considers necessary,

not later than the end of the period of 7 days beginning on the date of the order or the end of such longer period as the order may specify.

(3)The reference in sub-paragraph (2)(a) above to giving an authorised person access to the recorded information to which the application relates includes a reference to permitting the authorised person to take copies of it or to make extracts from it.

(4)Where the recorded information consists of information [F11stored in any electronic form] , an order under this paragraph shall have effect as an order to produce the information in a form in which it is visible and legible [F12or from which it can readily be produced in a visible and legible form ] and, if the authorised person wishes to remove it, in a form in which it can be removed.

(5)This paragraph is without prejudice to paragraphs 3 and 4 above.

Textual Amendments

F10Sch. 7 para. 4A and the preceding cross-heading inserted (1.5.1995) by 1995 c. 4, s. 34, Sch. 5 para. 8(1)

F11Words in Sch. 7 para. 4A(4) substituted (1.4.2003) by Criminal Justice and Police Act 2001 (c. 16), para. 13(2)(g)s. 138(2), Sch. 2 para. 13(1)(a); S.I. 2003/708, art. 2(k)

Marginal Citations

Removal of documents etc.U.K.

5(1)An authorised person who removes anything in the exercise of a power conferred by or under paragraph 4 [F13or 4A] above shall, if so requested by a person showing himself—U.K.

(a)to be the occupier of premises from which it was removed, or

(b)to have had custody or control of it immediately before the removal,

provide that person with a record of what he removed.

(2)The authorised person shall provide the record within a reasonable time from the making of the request for it.

(3)Subject to sub-paragraph (7) below, if a request for permission to be allowed access to anything which—

(a)has been removed by an authorised person, and

(b)is retained by the Commissioners for the purposes of investigating an offence,

is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed or by someone acting on behalf of such a person, the officer shall allow the person who made the request access to it under the supervision of an authorised person.

(4)Subject to sub-paragraph (7) below, if a request for a photograph or copy of any such thing is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed, or by someone acting on behalf of such a person, the officer shall—

(a)allow the person who made the request access to it under the supervision of an authorised person for the purpose of photographing it or copying it, or

(b)photograph or copy it, or cause it to be photographed or copied.

(5)Subject to sub-paragraph (7) below, where anything is photographed or copied under sub-paragraph (4)(b) above the officer shall supply the photograph or copy, or cause it to be supplied, to the person who made the request.

(6)The photograph or copy shall be supplied within a reasonable time from the making of the request.

(7)There is no duty under this paragraph to allow access to, or to supply a photograph or copy of, anything if the officer in overall charge of the investigation for the purposes of which it was removed has reasonable grounds for believing that to do so would prejudice—

(a)that investigation,

(b)the investigation of an offence other than the offence for the purposes of the investigation of which the thing was removed, or

(c)any criminal proceedings which may be brought as a result of the investigation of which he is in charge or any such investigation as is mentioned in paragraph (b) above.

(8)Any reference in this paragraph to the officer in overall charge of the investigation is a reference to the person whose name and address are endorsed on the warrant concerned as being the officer so in charge.

Textual Amendments

F13Words in Sch. 7 para. 5(1) inserted (1.5.1995) by 1995 c. 4, s. 34, Sch. 5 para. 8(2)

6(1)Where, on an application made as mentioned in sub-paragraph (2) below, the appropriate judicial authority is satisfied that a person has failed to comply with a requirement imposed by paragraph 5 above, the authority may order that person to comply with the requirement within such time and in such manner as may be specified in the order.U.K.

(2)An application under sub-paragraph (1) above shall be made—

(a)in the case of a failure to comply with any of the requirements imposed by sub-paragraphs (1) and (2) of paragraph 5 above, by the occupier of the premises from which the thing in question was removed or by the person who had custody or control of it immediately before it was so removed, and

(b)in any other case, by the person who had such custody or control.

(3)In this paragraph “the appropriate judicial authority” means—

(a)in England and Wales, a magistrates’ court;

(b)in Scotland, the sheriff;

(c)in Northern Ireland, a court of summary jurisdiction, as defined in Article 2(2)(a) of the M2Magistrates’ Court (Northern Ireland) Order 1981.

(4)In England and Wales and Northern Ireland, an application for an order under this paragraph shall be made by way of complaint; and sections 21 and 42(2) of the M3Interpretation Act (Northern Ireland) 1954 shall apply as if any reference in those provisions to any enactment included a reference to this paragraph.

Part IIIU.K. Recovery

Recovery of tax etc.U.K.

7(1)Tax due from any person shall be recoverable as a debt due to the Crown.U.K.

F14(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F15(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F15(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F15(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)[F16In the M4Insolvency (Northern Ireland) Order 1989, in Article 346(1) (preferential debts) the words “ insurance premium tax ” shall be inserted after “VAT” and in Schedule 4 (categories of preferential debts) the following paragraph shall be inserted after paragraph 3—

3AAny insurance premium tax which is referable to the period of 6 months next before the relevant date (which period is referred to below as “the 6-month period”).

For the purposes of this paragraph—

(a)where the whole of the accounting period to which any insurance premium tax is attributable falls within the 6-month period, the whole amount of that tax is referable to that period; and

(b)in any other case the amount of any insurance premium tax which is referable to the 6-month period is the proportion of the tax which is equal to such proportion (if any) of the accounting period in question as falls within the 6-month period;

and references here to accounting periods shall be construed in accordance with Part III of the Finance Act 1994.]

F17(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F17(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F17(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F17(10). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F17(11). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F17(12). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Recovery of overpaid taxU.K.

8(1)Where a person has paid an amount to the Commissioners by way of tax which was not tax due to them, they shall be liable to repay the amount to him.U.K.

(2)The Commissioners shall only be liable to repay an amount under this paragraph on a claim being made for the purpose.

(3)It shall be a defence, in relation to a claim under this paragraph, that repayment of an amount would unjustly enrich the claimant.

[F18(4)The Commissioners shall not be liable, on a claim made under this paragraph, to repay any amount paid to them more than [F194 years] before the making of the claim.]

(6)A claim under this paragraph shall be made in such form and manner and shall be supported by such documentary evidence as may be prescribed by regulations.

(7)Except as provided by this paragraph, the Commissioners shall not be liable to repay an amount paid to them by way of tax by virtue of the fact that it was not tax due to them.

Textual Amendments

F18Sch. 7 para. 8(4) substituted for para. 8(4)(5) (19.3.1997) by 1997 c. 16, s. 50(1), Sch. 5 Pt. II para. 5(2)

Modifications etc. (not altering text)

C4SCh. 7 para. 8(3): power to modify conferred (19.3.1997) by 1997 c. 16, s. 50(1), Sch. 5 Pt. I paras. 1(1)(b), 3

C5Sch. 7 para. 8(3) amended (19.3.1997) by 1997 c. 16, Sch. 5 Pt. I

Part IVU.K. Penalties

Criminal offencesU.K.

9(1)A person is guilty of an offence if—U.K.

(a)being a registrable person, he is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion of tax by him or another registrable person, or

(b)not being a registrable person, he is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion of tax by a registrable person.

(2)Any reference in sub-paragraph (1) above to the evasion of tax includes a reference to the obtaining of a payment under regulations under section 55(3)(c) or (d) or (f) of this Act.

(3)A person is guilty of an offence if with the requisite intent—

(a)he produces, furnishes or sends, or causes to be produced, furnished or sent, for the purposes of this Part of this Act any document which is false in a material particular, or

(b)he otherwise makes use for those purposes of such a document;

and the requisite intent is intent to deceive or to secure that a machine will respond to the document as if it were a true document.

(4)A person is guilty of an offence if in furnishing any information for the purposes of this Part of this Act he makes a statement which he knows to be false in a material particular or recklessly makes a statement which is false in a material particular.

(5)A person is guilty of an offence by virtue of this sub-paragraph if his conduct during any specified period must have involved the commission by him of one or more offences under the preceding provisions of this paragraph; and the preceding provisions of this sub-paragraph apply whether or not the particulars of that offence or those offences are known.

(6)A person is guilty of an offence if—

(a)he enters into a taxable insurance contract, or

(b)he makes arrangements for other persons to enter into a taxable insurance contract,

with reason to believe that tax in respect of the contract will be evaded.

(7)A person is guilty of an offence if he enters into taxable insurance contracts without giving security (or further security) he has been required to give under paragraph 24 below.

Criminal penaltiesU.K.

10(1)A person guilty of an offence under paragraph 9(1) above shall be liable—U.K.

(a)on summary conviction, to a penalty of [F20£20,000] or of three times the amount of the tax, whichever is the greater, or to imprisonment for a term not exceeding six months or to both;

(b)on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years or to both.

(2)The reference in sub-paragraph (1) above to the amount of the tax shall be construed, in relation to tax itself or a payment falling within paragraph 9(2) above, as a reference to the aggregate of—

(a)the amount (if any) falsely claimed by way of credit, and

(b)the amount (if any) by which the gross amount of tax was falsely understated.

(3)A person guilty of an offence under paragraph 9(3) or (4) above shall be liable—

(a)on summary conviction, to a penalty of [F21£20,000] or, where sub-paragraph (4) below applies, to the alternative penalty there specified if it is greater, or to imprisonment for a term not exceeding six months or to both;

(b)on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years or to both.

(4)In a case where—

(a)the document referred to in paragraph 9(3) above is a return required under this Part of this Act, or

(b)the information referred to in paragraph 9(4) above is contained in or otherwise relevant to such a return,

the alternative penalty is a penalty equal to three times the aggregate of the amount (if any) falsely claimed by way of credit and the amount (if any) by which the gross amount of tax was understated.

(5)A person guilty of an offence under paragraph 9(5) above shall be liable—

(a)on summary conviction, to a penalty of [F22£20,000] or (if greater) three times the amount of any tax that was or was intended to be evaded by his conduct, or to imprisonment for a term not exceeding six months or to both;

(b)on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years or to both;

and paragraph 9(2) and sub-paragraph (2) above shall apply for the purposes of this sub-paragraph as they apply respectively for the purposes of paragraph 9(1) and sub-paragraph (1) above.

(6)A person guilty of an offence under paragraph 9(6) above shall be liable on summary conviction to a penalty of [F23£20,000] or three times the amount of the tax, whichever is the greater.

(7)A person guilty of an offence under paragraph 9(7) above shall be liable on summary conviction to a penalty of [F24£20,000].

(8)In this paragraph—

(a)credit” means credit for which provision is made by regulations under section 55 of this Act;

(b)the gross amount of tax” means the total amount of tax due before taking into account any deduction for which provision is made by regulations under section 55(3) of this Act.

Criminal proceedings etc.U.K.

11U.K.Sections 145 to 155 of the M5Customs and Excise Management Act 1979 (proceedings for offences, mitigation of penalties and certain other matters) shall apply in relation to offences under paragraph 9 above and penalties imposed under paragraph 10 above as they apply in relation to offences and penalties under the customs and excise Acts as defined in that Act.

Marginal Citations

Civil penaltiesU.K.

F2512U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F25Sch. 7 para. 12 omitted (1.4.2009) by virtue of Finance Act 2008 (c. 9), s. 122(2), Sch. 40 para. 21(d)(ii); S.I. 2009/571, art. 2 (with art. 6)

Modifications etc. (not altering text)

C6Sch. 7 para. 12: savings for effects of 2008 c. 40, Sch. 40 para. 21 (5.3.2009) by The Finance Act 2008, Schedule 41 (Appointed Day and Transitional Provisions) Order 2009 (S.I. 2009/511), art. 4(b)(ii)

F2613U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F26Sch. 7 para. 13 omitted (1.4.2009) by virtue of Finance Act 2008 (c. 9), s. 122(2), Sch. 40 para. 21(d)(ii); S.I. 2009/571, art. 2 (with art. 6)

Modifications etc. (not altering text)

C7Sch. 7 para. 13: savings for effects of 2008 c. 40, Sch. 40 para. 21 (5.3.2009) by The Finance Act 2008, Schedule 41 (Appointed Day and Transitional Provisions) Order 2009 (S.I. 2009/511), art. 4(b)(ii)

F2714U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F27Sch. 7 para. 14 omitted (1.4.2010) (with effect in accordance with art. 3 of the commencing S.I.) by virtue of Finance Act 2008 (c. 9), s. 123(2), Sch. 41 para. 25(e)(iii); S.I. 2009/511, art. 2 (with art. 4)

15(1)This paragraph applies if a person fails to comply with—U.K.

(a)a requirement imposed by regulations made under section 54 of this Act to pay the tax due in respect of any period within the time required by the regulations, or

(b)a requirement imposed by regulations made under that section to furnish a return in respect of any period within the time required by the regulations;

and sub-paragraphs (2) and (3) below shall have effect subject to sub-paragraphs (5) and (6) below and paragraph 25(7) below.

(2)The person shall be liable to a penalty equal to 5 per cent. of the tax due or, if it is greater, to a penalty of £250.

(3)The person—

(a)shall be liable, in addition to an initial penalty under sub-paragraph (2) above, to a penalty of £20 for every relevant day when he fails to pay the tax or furnish the return, but

(b)shall not in respect of the continuation of the failure be liable to further penalties under sub-paragraph (2) above;

and a relevant day is any day falling after the time within which the tax is required to be paid or the return is required to be furnished.

(4)For the purposes of sub-paragraph (2) above the tax due—

(a)shall, if the person concerned has furnished a return, be taken to be the tax shown in the return as that for which he is accountable in respect of the period in question, and

(b)shall, in any other case, be taken to be such tax as has been assessed for that period and notified to him under section 56(1) of this Act.

(5)A failure falling within sub-paragraph (1) or (3) above shall not give rise to liability to a penalty under this paragraph if the person concerned satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the failure.

(6)Where, by reason of a failure falling within sub-paragraph (1) or (3) above—

(a)a person is convicted of an offence (whether under this Part of this Act or otherwise), or

(b)a person is assessed to a penalty under paragraph 12 above [F28or to a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007 (penalties for errors)] ,

that failure shall not also give rise to liability to a penalty under this paragraph.

(7)If it appears to the Treasury that there has been a change in the value of money since the passing of this Act or, as the case may be, the last occasion when the power conferred by this sub-paragraph was exercised, they may by order substitute for the sums for the time being specified in sub-paragraphs (2) and (3) above such other sums as appear to them to be justified by the change.

(8)An order under sub-paragraph (7) above shall not apply in relation to a failure which began before the date on which the order comes into force.

16(1)This paragraph applies where—U.K.

(a)by virtue of regulations made under section 65 of this Act a liability notice (within the meaning of that section) is served on an insured person,

(b)by virtue of such regulations that person is liable to pay an amount of tax which has been assessed in accordance with the regulations, and

(c)that tax is not paid within the time required by the regulations;

and sub-paragraphs (2) and (3) below shall have effect subject to sub-paragraphs (4) and (5) below and paragraph 25(7) below.

(2)The person shall be liable to a penalty equal to 5 per cent. of the tax assessed as mentioned in sub-paragraph (1) above or, if it is greater, to a penalty of £250.

(3)The person—

(a)shall be liable, in addition to an initial penalty under sub-paragraph (2) above, to a penalty of £20 for every relevant day when the tax is unpaid, but

(b)shall not in respect of the continuation of the non-payment of the tax be liable to further penalties under sub-paragraph (2) above;

and a relevant day is any day falling after the time within which the tax is required to be paid.

(4)A person shall not be liable to a penalty by virtue of this paragraph if he satisfies the Commissioners or, on appeal, an appeal tribunal that he took all reasonable steps to ensure that the tax mentioned in sub-paragraph (1)(b) above was paid within the time required by the regulations.

(5)Where, by reason of a failure to pay tax, a person is convicted of an offence (whether under this Part of this Act or otherwise), that failure shall not also give rise to liability to a penalty under this paragraph.

(6)If it appears to the Treasury that there has been a change in the value of money since the passing of this Act or, as the case may be, the last occasion when the power conferred by this sub-paragraph was exercised, they may by order substitute for the sums for the time being specified in sub-paragraphs (2) and (3) above such other sums as appear to them to be justified by the change.

(7)An order under sub-paragraph (6) above shall not apply in relation to any failure to pay tax that was required to be paid before the date on which the order comes into force.

17(1)If a person fails to comply with—U.K.

(a)section 53(3) of this Act,

(b)F29...or

(c)a requirement imposed by any regulations made under this Part of this Act, other than a requirement falling within sub-paragraph (2) below,

he shall be liable to a penalty of £250; but this is subject to sub-paragraphs (3) and (4) below.

(2)A requirement falls within this sub-paragraph if it is—

(a)a requirement imposed by regulations made under section 54 of this Act to pay the tax due in respect of any period within the time required by the regulations,

(b)a requirement imposed by regulations made under that section to furnish a return in respect of any period within the time required by the regulations,

(c)a requirement imposed by regulations made under section 65 of this Act to pay tax within the time required by the regulations, or

(d)a requirement specified for the purposes of this sub-paragraph by regulations.

(3)A failure falling within sub-paragraph (1) above shall not give rise to liability to a penalty under this paragraph if the person concerned satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the failure.

(4)Where by reason of a failure falling within sub-paragraph (1) above—

(a)a person is convicted of an offence (whether under this Part of this Act or otherwise), or

(b)a person is assessed to a penalty under paragraph 12 above [F30or to a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007 (penalties for errors)] ,

that failure shall not also give rise to liability to a penalty under this paragraph.

(5)If it appears to the Treasury that there has been a change in the value of money since the passing of this Act or, as the case may be, the last occasion when the power conferred by this sub-paragraph was exercised, they may by order substitute for the sum for the time being specified in sub-paragraph (1) above such other sum as appears to them to be justified by the change.

(6)An order under sub-paragraph (5) above shall not apply in relation to a failure which began before the date on which the order comes into force.

18(1)A person who—U.K.

(a)by virtue of subsection (3), (7) or (9) of section 57 of this Act becomes subject to a duty to take action as mentioned in subsection (4) of that section, and

(b)fails to take action as so mentioned,

shall be liable to a penalty of £10,000; but this is subject to sub-paragraph (2) below.

(2)A failure falling within sub-paragraph (1) above shall not give rise to liability to a penalty under this paragraph if the person concerned satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the failure.

(3)If it appears to the Treasury that there has been a change in the value of money since the passing of this Act or, as the case may be, the last occasion when the power conferred by this sub-paragraph was exercised, they may by order substitute for the sum for the time being specified in sub-paragraph (1) above such other sum as appears to them to be justified by the change.

(4)An order under sub-paragraph (3) above shall not apply in relation to a case where the duty mentioned in sub-paragraph (1) above was imposed before the date on which the order comes into force.

F31[F3218A]U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F31Sch. 7 para. 18A omitted (6.4.2014) by virtue of Finance Act 2008 (c. 9), s. 129(4), Sch. 43 para. 3(3); S.I. 2014/906, art. 2

19(1)This paragraph applies where—E+W+N.I.

(a)in accordance with regulations under [F33section 51 of the Finance Act 1997 (enforcement by distress)] a distress is authorised to be levied on the goods and chattels of a person (a person in default) who has refused or neglected to pay any tax due from him or any amount recoverable as if it were tax due from him, and

(b)the person levying the distress and the person in default have entered into a walking possession agreement.

(2)For the purposes of this paragraph a walking possession agreement is an agreement under which, in consideration of the property distrained upon being allowed to remain in the custody of the person in default and of the delaying of its sale, the person in default—

(a)acknowledges that the property specified in the agreement is under distraint and held in walking possession, and

(b)undertakes that, except with the consent of the Commissioners and subject to such conditions as they may impose, he will not remove or allow the removal of any of the specified property from the premises named in the agreement.

(3)Subject to sub-paragraph (4) below, if the person in default is in breach of the undertaking contained in a walking possession agreement, he shall be liable to a penalty equal to half of the tax or other amount referred to in sub-paragraph (1)(a) above.

(4)The person in default shall not be liable to a penalty under sub-paragraph (3) above if he satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the breach in question.

[F34(5)This paragraph extends only to Northern Ireland.]

Textual Amendments

F33Words in Sch. 7 para. 19(1)(a) substituted (1.7.1997) by 1997 c. 16, s. 53(5)(9); S.I. 1997/1432, art. 2

20U.K.For the purposes of paragraphs F35... 15(5), 17(3)F36... and 19(4) above—

(a)an insufficiency of funds available for paying any amount is not a reasonable excuse, and

(b)where reliance is placed on any other person to perform any task, neither the fact of that reliance nor any conduct of the person relied upon is a reasonable excuse.

Textual Amendments

F36Word in Sch. 7 para. 20 omitted (21.7.2008) by virtue of Finance Act 2008 (c. 9), s. 142(1)(d)

Part VU.K. Interest

Interest on tax etc.U.K.

21(1)Where an assessment is made under any provision of section 56 of this Act, the whole of the amount assessed shall carry interest at [F37the rate applicable under section 197of the Finance Act 1996] from the reckonable date until payment; but this is subject to sub-paragraph (2) and paragraph 25(7) below.U.K.

(2)Sub-paragraph (1) above shall not apply in relation to an assessment under section 56(1) of this Act unless at least one of the following conditions is fulfilled, namely—

(a)that the assessment relates to an accounting period in respect of which either a return has previously been made, or an earlier assessment has already been notified to the person concerned;

(b)that the assessment relates to an accounting period which exceeds three months and begins on the date with effect from which the person was, or was required to be, registered under this Part of this Act.

(3)In a case where—

(a)the circumstances are such that a relevant assessment could have been made, but

(b)before such an assessment was made the tax due or other amount concerned was paid (so that no such assessment was necessary),

the whole of the amount paid shall carry interest at [F37the rate applicable under section 197 of the Finance Act 1996] from the reckonable date until the date on which it was paid; and for the purposes of this sub-paragraph a relevant assessment is an assessment in relation to which sub-paragraph (1) above would have applied if the assessment had been made.

(4)The references in sub-paragraphs (1) and (3) above to the reckonable date shall be construed as follows—

(a)where the amount assessed or paid is such an amount as is referred to in subsection (2) of section 56 of this Act, the reckonable date is the seventh day after the day on which a written instruction was issued by the Commissioners directing the making of the payment of the amount which ought not to have been paid to the person concerned;

(b)in all other cases the reckonable date is the latest date on which (in accordance with regulations under this Part of this Act) a return is required to be made for the accounting period to which the amount assessed or paid relates;

and interest under this paragraph shall run from the reckonable date even if that date is a non-business day, within the meaning of section 92 of the M6Bills of Exchange Act 1882.

F38(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)Interest under this paragraph shall be paid without any deduction of income tax.

Textual Amendments

F37Words in Sch. 7 para. 21(1)(3) substituted (29.4.1996 with effect as mentioned in s. 197(7) of the amending Act) by 1996 c. 8, s. 197(6)(7); S.I. 1997/1015, art. 2

F38Sch. 7 para. 21(5) repealed (29.4.1996 with effect as mentioned in s. 197(7) of the repealing Act) by 1996 c. 8, s. ss. 197, 205, Sch. 41 Pt. VIII(1), Note; S.I. 1997/1015, art. 2

Modifications etc. (not altering text)

C8Sch. 7 para. 21: power to amend conferred (29.4.1996) by 1996 c. 8, s. 197(2)(b)

Marginal Citations

Interest payable by CommissionersU.K.

22(1)Where, due to an error on the part of the Commissioners, a person—U.K.

(a)has paid to them by way of tax an amount which was not tax due and which they are in consequence liable to repay to him,

(b)has failed to claim payment of an amount to the payment of which he was entitled in pursuance of provision made under section 55(3)(c), (d) or (f) of this Act, or

(c)has suffered delay in receiving payment of an amount due to him from them in connection with tax,

then, if and to the extent that they would not be liable to do so apart from this paragraph, they shall (subject to the following provisions of this paragraph) pay interest to him on that amount for the applicable period.

[F39(1A)In sub-paragraph (1) above—

(a)the reference in paragraph (a) to an amount which the Commissioners are liable to repay in consequence of the making of a payment that was not due is a reference to only so much of that amount as is the subject of a claim that the Commissioners are required to satisfy or have satisfied; and

(b)the amounts referred to in paragraph (c) do not include any amount payable under this paragraph.]

(2)Interest under this paragraph shall be payable at [F40the rate applicable under sectioin 197 of the Finance Act 1996]

(3)The applicable period, in a case falling within sub-paragraph (1)(a) above, is the period—

(a)beginning with the date on which the payment is received by the Commissioners, and

(b)ending with the date on which they authorise payment of the amount on which the interest is payable.

(4)The applicable period, in a case falling within sub-paragraph (1)(b) or (c) above, is the period—

(a)beginning with the date on which, apart from the error, the Commissioners might reasonably have been expected to authorise payment of the amount on which the interest is payable, and

(b)ending with the date on which they in fact authorise payment of that amount.

[F41(5)In determining the applicable period for the purposes of this paragraph there shall be left out of account any period by which the Commissioners’ authorisation of the payment of interest is delayed by the conduct of the person who claims the interest.

(5A)The reference in sub-paragraph (5) above to a period by which the Commissioners’ authorisation of the payment of interest is delayed by the conduct of the person who claims it includes, in particular, any period which is referable to—

(a)any unreasonable delay in the making of the claim for interest or in the making of any claim for the payment or repayment of the amount on which interest is claimed;

(b)any failure by that person or a person acting on his behalf or under his influence to provide the Commissioners—

(i)at or before the time of the making of a claim, or

(ii)subsequently in response to a request for information by the Commissioners,

with all the information required by them to enable the existence and amount of the claimant’s entitlement to a payment or repayment, and to interest on that payment or repayment, to be determined; and

(c)the making, as part of or in association with either—

(i)the claim for interest, or

(ii)any claim for the payment or repayment of the amount on which interest is claimed,

of a claim to anything to which the claimant was not entitled.

(6)In determining for the purposes of sub-paragraph (5A) above whether any period of delay is referable to a failure by any person to provide information in response to a request by the Commissioners, there shall be taken to be so referable, except so far as may be provided for by regulations, any period which—

(a)begins with the date on which the Commissioners require that person to provide information which they reasonably consider relevant to the matter to be determined; and

(b)ends with the earliest date on which it would be reasonable for the Commissioners to conclude—

(i)that they have received a complete answer to their request for information;

(ii)that they have received all that they need in answer to that request; or

(iii)that it is unnecessary for them to be provided with any information in answer to that request.]

(8)The Commissioners shall only be liable to pay interest under this paragraph on a claim made in writing for that purpose.

[F42(9)A claim under this paragraph shall not be made more than [F434 years] after the end of the applicable period to which it relates.]

[F44(10)References in this paragraph to the authorisation by the Commissioners of the payment of any amount include references to the discharge by way of set-off of the Commissioners’ liability to pay that amount.]

Textual Amendments

F39Sch. 7 para. 22(1A) inserted (retrospectively) by 1997 c. 16, s. 50(1), Sch. 5, para. 9(1)(2)

F40Words in Sch. 7 para. 22(2) substituted (29.4.1996 with effect as mentioned in s. 197(7) of the amending Act) by 1996 c. 8, s. 197(6)(c)(7); S.I. 1997/1015, art. 2

F41Sch. 7 para. 22(5)-(6) substituted for para. 22(5)-(7) (19.3.1997 with effect as mentioned in Sch. 5 para. 10(2) of the amending Act) by 1997 c. 16, s. 50(1), Sch. 5 para. 10(1)(2)

F42Sch. 7 para. 22(9) substituted (retrospectively) by 1997 c. 16, s. 50(1), Sch. 5, para. 9(1)(3)

F44Sch. 7 para. 22(10) substituted (retrospectively) by 1997 c. 16, s. 50(1), Sch. 5, para. 9(1)(4)

Modifications etc. (not altering text)

C9Sch. 7 para. 22: power to amend conferred (29.4.1996) by 1996 c. 8, s. 197(2)(b)

23(1)In a case where—U.K.

(a)any interest is payable by the Commissioners to a person on a sum due to him under this Part of this Act, and

(b)he is a person to whom regulations under section 55 of this Act apply,

the interest shall be treated as an amount to which he is entitled by way of credit in pursuance of the regulations.

(2)Sub-paragraph (1) above shall be disregarded for the purpose of determining a person’s entitlement to interest or the amount of interest to which he is entitled.

Part VIU.K. Miscellaneous

Security for taxU.K.

24U.K.Where it appears to the Commissioners requisite to do so for the protection of the revenue they may require a registrable person, as a condition of his entering into taxable insurance contracts, to give security (or further security) of such amount and in such manner as they may determine for the payment of any tax which is or may become due from him.

Assessments to penalties etc.U.K.

25(1)Where a person is liable—U.K.

(a)to a penalty under any of paragraphs 12 to 19 above, or

(b)for interest under paragraph 21 above,

the Commissioners may, subject to sub-paragraph (2) below, assess the amount due by way of penalty or interest (as the case may be) and notify it to him accordingly; and the fact that any conduct giving rise to a penalty under any of paragraphs 12 to 19 above may have ceased before an assessment is made under this paragraph shall not affect the power of the Commissioners to make such an assessment.

(2)In the case of the penalties and interest referred to in the following paragraphs of this sub-paragraph, the assessment under this paragraph shall be of an amount due in respect of the accounting period which in the paragraph concerned is referred to as the relevant period—

(a)in the case of a penalty under paragraph 12 above relating to the evasion of tax, the relevant period is the accounting period for which the tax evaded was due;

(b)in the case of a penalty under paragraph 12 above relating to the obtaining of a payment under regulations under section 55(3)(c) or (d) or (f) of this Act, the relevant period is the accounting period in respect of which the payment was obtained;

(c)in the case of interest under paragraph 21 above, the relevant period is the accounting period in respect of which the tax (or amount assessed as tax) was due.

(3)In a case where the amount of any penalty or interest falls to be calculated by reference to tax which was not paid at the time it should have been and that tax cannot be readily attributed to any one or more accounting periods, it shall be treated for the purposes of this Part of this Act as tax due for such period or periods as the Commissioners may determine to the best of their judgment and notify to the person liable for the tax and penalty or interest.

(4)Where a person is assessed under this paragraph to an amount due by way of any penalty or interest falling within sub-paragraph (2) above and is also assessed under subsection (1) or (2) of section 56 of this Act for the accounting period which is the relevant period under sub-paragraph (2) above, the assessments may be combined and notified to him as one assessment, but the amount of the penalty or interest shall be separately identified in the notice.

(5)Sub-paragraph (6) below applies in the case of—

(a)an amount due by way of penalty under paragraph 15 or 16 above;

(b)an amount due by way of interest under paragraph 21 above.

(6)Where this sub-paragraph applies in the case of an amount—

(a)a notice of assessment under this paragraph shall specify a date, being not later than the date of the notice, to which the aggregate amount of the penalty or, as the case may be, the amount of interest which is assessed is calculated, and

(b)if the penalty or interest continues to accrue after that date, a further assessment or further assessments may be made under this paragraph in respect of amounts which so accrue.

(7)If, within such period as may be notified by the Commissioners to the person liable to the penalty under paragraph 15 or 16 above or for the interest under paragraph 21 above—

(a)a failure falling within paragraph 15(3) above is remedied,

(b)the tax referred to in paragraph 16(1) above is paid, or

(c)the amount referred to in paragraph 21(1) above is paid,

it shall be treated for the purposes of paragraph 15, 16 or 21 above (as the case may be) as remedied or paid on the date specified as mentioned in sub-paragraph (6)(a) above.

(8)Where an amount has been assessed and notified to any person under this paragraph it shall be recoverable as if it were tax due from him unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.

(9)Subsection (8) of section 56 of this Act shall apply for the purposes of this paragraph as it applies for the purposes of that section.

Assessments: time limitsU.K.

26(1)Subject to the following provisions of this paragraph, an assessment under—U.K.

(a)any provision of section 56 of this Act, or

(b)paragraph 25 above,

shall not be made more than [F454 years after the relevant event] .

[F46(1A)In this paragraph “the relevant event”, in relation to an assessment, means—

(a)the end of the accounting period concerned, or

(b)in the case of an assessment under paragraph 25 of an amount due by way of a penalty other than a penalty referred to in paragraph 25(2), the event giving rise to the penalty.]

(2)An assessment under paragraph 25 above of—

(a)an amount due by way of any penalty referred to in sub-paragraph (2) of that paragraph, or

(b)an amount due by way of interest,

may be made at any time before the expiry of the period of two years beginning with the time when the amount of tax due for the accounting period concerned has been finally determined.

(3)In relation to an assessment under paragraph 25 above, any reference in [F47sub-paragraph (1A) ]or (2) above to the accounting period concerned is a reference to that period which, in the case of the penalty or interest concerned, is the relevant period referred to in sub-paragraph (2) of that paragraph.

[F48(4)An assessment of an amount due from a person in a case involving a loss of tax—

(a)brought about deliberately by the person (or by another person acting on that person's behalf), or

(b)attributable to a failure by the person to comply with an obligation under section 53(1) or (2) or 53AA(1) or (3),

may be made at any time not more than 20 years after the relevant event.

(5)In sub-paragraph (4)(a) the reference to a loss brought about deliberately by the person includes a loss brought about as a result of a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by or on behalf of that person.]

Textual Amendments

F45Words in Sch. 7 para. 26(1) substituted (1.4.2010) by Finance Act 2009 (c. 10), s. 99(2), Sch. 51 para. 4(2); S.I. 2010/867, art. 2(1) (with art. 5)

F46Sch. 7 para. 26(1A) inserted (1.4.2010) by Finance Act 2009 (c. 10), s. 99(2), Sch. 51 para. 4(3); S.I. 2010/867, art. 2(1) (with art. 5)

F47Sch. 7 para. 26(4)(5) substituted (1.4.2010) for Sch. 7 para. 26(4) by Finance Act 2009 (c. 10), s. 99(2), Sch. 51 para. 4(5); S.I. 2010/867, art. 2(1) (with art. 5)

F48Words in Sch. 7 para. 26(3) substituted (1.4.2010) by Finance Act 2009 (c. 10), s. 99(2), Sch. 51 para. 4(4); S.I. 2010/867, art. 2(1) (with art. 5)

Supplementary assessmentsU.K.

27U.K.If, otherwise than in circumstances falling within subsection (5)(b) of section 56 of this Act, it appears to the Commissioners that the amount which ought to have been assessed in an assessment under any provision of that section or under paragraph 25 above exceeds the amount which was so assessed, then—

(a)under the like provision as that assessment was made, and

(b)on or before the last day on which that assessment could have been made,

the Commissioners may make a supplementary assessment of the amount of the excess and shall notify the person concerned accordingly.

Disclosure of informationU.K.

28(1)Notwithstanding any obligation not to disclose information that would otherwise apply, the Commissioners may disclose information—U.K.

(a)to the Secretary of State, or

(b)to an authorised officer of the Secretary of State,

for the purpose of assisting the Secretary of State in the performance of his duties.

(2)Notwithstanding any such obligation as is mentioned in sub-paragraph (1) above—

(a)the Secretary of State, or

(b)an authorised officer of the Secretary of State,

may disclose information to the Commissioners or to an authorised officer of the Commissioners for the purpose of assisting the Commissioners in the performance of duties in relation to tax.

(3)Information that has been disclosed to a person by virtue of this paragraph shall not be disclosed by him except—

(a)to another person to whom (instead of him) disclosure could by virtue of this paragraph have been made, or

(b)for the purpose of any proceedings connected with the operation of any provision of, or made under, any enactment in relation to insurance or to tax.

(4)References in the preceding provisions of this paragraph to an authorised officer of the Secretary of State are to any person who has been designated by the Secretary of State as a person to and by whom information may be disclosed under this paragraph.

(5)The Secretary of State shall notify the Commissioners in writing of the name of any person designated under sub-paragraph (4) above.

Modifications etc. (not altering text)

C14Sch. 7 para. 28: certain functions of the Secretary of State made exercisable concurrently with the Treasury (5.1.1998) by S.I. 1997/2781, arts. 4(3) (with art. 7)

[F4928A(1)Notwithstanding any obligation not to disclose information that would otherwise apply, the Commissioners may disclose information—U.K.

(a)to the Treasury, or

(b)to an authorised officer of the Treasury,

for the purpose of assisting the Treasury in the performance of their duties.

(2)Notwithstanding any such obligation as is mentioned in sub-paragraph (1) above—

(a)the Treasury, or

(b)an authorised officer of the Treasury,

may disclose information to the Commissioners or to an authorised officer of the Commissioners for the purpose of assisting the Commissioners in the performance of duties in relation to tax.

(3)Information that has been disclosed to a person by virtue of this paragraph shall not be disclosed by him except—

(a)to another person to whom (instead of him) disclosure could by virtue of this paragraph have been made, or

(b)for the purpose of any proceedings connected with the operation of any provision of, or made under, any enactment in relation to insurance or to tax.

(4)References in the preceding provisions of this paragraph to an authorised officer of the Treasury are to any person who has been designated by the Treasury as a person to and by whom information may be disclosed under this paragraph.

(5)The Treasury shall notify the Commissioners in writing of the name of any person designated under sub-paragraph (4) above.]

Textual Amendments

F49Sch. 7 para. 28A inserted (5.1.1998) by S.I. 1997/2781, art. 8(1), Sch. Pt. II para. 124 (with art. 7)

[F5028B.(1)Notwithstanding any obligation not to disclose information that would otherwise apply, the Commissioners may disclose information to [F51a regulator] for the purpose of [F52assisting the regulator] in the performance of its functions.U.K.

(2)Information that has been disclosed to [F53a regulator] pursuant to this paragraph shall not be disclosed by [F54the regulator] except for the purpose of any proceedings connected with the operation of any provision of, or made under, any enactment in relation to insurance or to tax.]

[F55(3)In this paragraph “regulator” means—

(a)the Financial Conduct Authority;

(b)the Prudential Regulation Authority.]

Textual Amendments

F51Words in Sch. 7 para. 28B(1) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 79(2)(a)(i) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F52Words in Sch. 7 para. 28B(1) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 79(2)(a)(ii) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F53Words in Sch. 7 para. 28B(2) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 79(2)(b)(i) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F54Words in Sch. 7 para. 28B(2) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 79(2)(b)(ii) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

Evidence by certificateU.K.

29(1)A certificate of the Commissioners—U.K.

(a)that a person was or was not at any time registered under section 53 of this Act, [F56 or]

(b)that any return required by regulations under section 54 of this Act has not been made or had not been made at any time, F57...

F57. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

shall be sufficient evidence of that fact until the contrary is proved.

(2)Any document purporting to be a certificate under sub-paragraph (1) above shall be taken to be such a certificate until the contrary is proved.

Textual Amendments

F56Word in Sch. 7 para. 29(1)(a) inserted (21.7.2008) by Finance Act 2008 (c. 9), Sch. 44 para. 5(a)

F57Sch. 7 para. 29(1)(c) and word omitted (21.7.2008) by virtue of Finance Act 2008 (c. 9), Sch. 44 para. 5(b)

Service of notices etc.U.K.

30U.K.Any notice, notification or requirement to be served on, given to or made of any person for the purposes of this Part of this Act may be served, given or made by sending it by post in a letter addressed to that person or his tax representative at the last or usual residence or place of business of that person or representative.

No deduction of penalties or interestU.K.

31U.K.In section 827 of the Taxes Act 1988 (no deduction for penalties etc.) the following subsection shall be inserted after subsection (1A)—

(1B)Where a person is liable to make a payment by way of—

(a)penalty under any of paragraphs 12 to 19 of Schedule 7 to the Finance Act 1994 (insurance premium tax), or

(b)interest under paragraph 21 of that Schedule,

the payment shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes.

Destination of receiptsU.K.

F5832U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Provisional collection of taxU.K.

33U.K.In section 1(1) of the M7Provisional Collection of Taxes Act 1968 after “value added tax,” there shall be inserted “ insurance premium tax, ”.

Marginal Citations

34(1)In a case where—U.K.

(a)by virtue of a resolution having effect under the Provisional Collection of Taxes Act 1968 tax has been paid at a rate specified in the resolution, and

(b)by virtue of section 1(6) or (7) or 5(3) of that Act any of that tax is repayable in consequence of the restoration in relation to the premium concerned of a lower rate,

the amount repayable shall be the difference between the tax paid by reference to the actual chargeable amount at the rate specified in the resolution and the tax that would have been payable by reference to the actual chargeable amount at the lower rate.

(2)In sub-paragraph (1) above the “actual chargeable amount” means the chargeable amount by reference to which tax was paid.

(3)In a case where—

(a)by virtue of a resolution having effect under the M8Provisional Collection of Taxes Act 1968 tax is chargeable at a rate specified in the resolution, but

(b)before the tax is paid it ceases to be chargeable at that rate in consequence of the restoration in relation to the premium concerned of a lower rate,

the tax chargeable at the lower rate shall be charged by reference to the same chargeable amount as that by reference to which tax would have been chargeable at the rate specified in the resolution.

Marginal Citations

Adjustment of contractsU.K.

35(1)Where, after the making of a contract of insurance and before a given premium is received by the insurer under the contract, there is a change in the tax chargeable on the receipt of the premium, then, unless the contract otherwise provided, there shall be added to or deducted from the amount payable as the premium an amount equal to the difference between—U.K.

(a)the tax chargeable had the change not been made, and

(b)the tax in fact chargeable.

(2)References in sub-paragraph (1) above to a change in the tax chargeable include references to a change to or from no tax being chargeable.

(3)Where this paragraph applies, the amount of the premium shall not be treated as altered for the purposes of calculating tax.

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