SCHEDULES

SCHEDULE 32The GAAR and partnerships

PART 2Minor and consequential amendments to Part 5 of FA 2013

13

1

Schedule 43C (penalty under section 212A: supplementary provision) is amended as follows.

2

In the heading after “212A” insert “ or 212B ”.

3

In paragraph 1, for “section 212A” substitute “ sections 212A and 212B ”

4

In paragraph 2—

a

for sub-paragraph (1), substitute—

1

The “value of the counteracted tax advantage” is—

a

for a penalty under section 212A, the additional amount due or payable in respect of tax as a result of the counteraction mentioned in subsection (1)(d) of that section, and

b

for a penalty under section 212B, the additional amount due or payable in respect of tax (by the partner in question) as a result of the counteraction mentioned in subsection (1)(b) of that section.

b

for “section 212A(1)(c)” substitute “ section 212A(1)(d) or as result of the counteraction mentioned in 212B(1)(b) (as the case may be) ”, and

c

in sub-paragraph (5), for “the”, in the second place it occurs, substitute “ a ”.

5

In paragraph 3(1) omit “mentioned in section 212A(1)(b) (“the tax advantage”)”.

6

In paragraph 4(1), after “212A” insert “ or 212B (as the case may be) ”.

7

In paragraph 5—

a

in sub-paragraph (1), after “212A” insert “ or 212B (as the case may be) ”, and

b

in sub-paragraph (2), for paragraph (a) substitute—

a

notify—

i

where the penalty is under section 212A, the person who is liable for it;

ii

where the penalty is under section 212B, the person who is liable for it and the responsible partner.

c

in sub-paragraph (5), after “section 212A(1)(d)” insert “ or section 212B(1)(b) (as the case may be) ”.

8

In paragraph 8—

a

in sub-paragraph (1)(b), after “212A” insert “ or 212B (as the case may be) ”, and

b

in sub-paragraph (4), after “212A” insert “ or 212B ”.

9

In paragraph 9—

a

in sub-paragraph (1)(a), after “212A” insert “ or 212B ”, and

b

after sub-paragraph (1) insert—

1A

Where the penalty is under section 212B, an appeal against it must be brought by the responsible partner.

10

In paragraph 10(1), after section 212A insert “ or 212B ”.