Market leading insight for tax experts
View online issue

Finance Act 2019: royal assent

printer Mail

The Finance (No 3) Bill 2017/19 received royal assent on 12 February 2019, becoming the Finance Act 2019.

The provisions of the Act implemented from the date of royal assent are:

  • s 28 and Sch 11: corporate interest restriction – extension of reporting company notification period effective from royal assent;
  • s 45: SDLT: exemption for financial institutions in resolution – applies to certain transfers of property from failing financial institutions to public bodies and creditors;
  • s 49: stamp duty: exemption for financial institutions in resolution – applies to certain transfers of shares from failing financial institutions to public bodies and creditors;
  • s 51: VAT reverse charge – enables HM Treasury to modify the rule that the value of reverse-charged supplies received must be included in turnover for VAT registration purposes;
  • s 53 and Sch 18: VAT groups: eligibility – extends the criteria for eligibility to join a VAT group, to include certain non-corporate entities such as partnerships and individuals;
  • s 64: climate change levy: exemption for mineralogical and metallurgical processes – amends the definition so that the exemption for energy used in those processes remains operable following the UK’s departure from the EU;
  • s 83: resolution of double taxation disputes – primary legislation needed to implement the double taxation dispute resolution mechanisms in EU directive 2017/1852;
  • s 84: international tax enforcement: disclosable arrangements – enables HM Treasury to make regulations to comply with international rules on the disclosure of cross-border tax arrangements, specifically EU directive 2018/822 and the OECD’s model mandatory disclosure rules;
  • ss 85–86: interest in respect of unlawful ACT – introduces a new non-exclusive interest-like remedy in relation to certain claims against HMRC (and predecessor Inland Revenue) in respect of ACT paid and subsequently set off or repaid before the time of the claim;
  • s 87: voluntary tax returns – puts tax returns submitted voluntarily on the same footing as those submitted in response to a formal notice to file;
  • s 88: interest under FA 1989 s 178 and FA 2009 s 101 – removes the need for an appointed day order to charge or pay interest on tax and other amounts provided for by FA 1989 s 178, and also sets interest rates for certain purposes including true-up interest for DPT;
  • s 89 and Sch 20: regulatory capital securities and hybrid capital instruments – introduces new tax rules for loan relationships that are hybrid capital instruments and revokes the Taxation of Regulatory Capital Securities Regulations, SI 2013/3209;
  • s 90: consequential minor amendments to tax legislation to reflect EU exit – permits the government to make small, essential changes to UK tax law to keep it working as it does now if the UK leaves the EU without a deal; and
  • s 91: emissions reduction trading scheme: preparatory expenditure – authorises the secretary of state to incur expenditure in preparation for the introduction of an emissions reduction trading scheme to replace the EU ETS after Brexit.