Consequential minor amendments to tax legislation to reflect EU exit
Published 29 October 2018
© Crown copyright 2018
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at https://www.gov.uk/government/publications/amendments-to-tax-legislation-to-reflect-eu-exit/consequential-minor-amendments-to-tax-legislation-to-reflect-eu-exit
Who is likely to be affected
This measure does not affect individuals or businesses.
General description of the measure
This measure is not a policy change. It will allow the government to make minor amendments to tax law to keep it working in the same way as it does now if the UK leaves the EU without a deal.
This measure provides for 3 changes.
Change 1
It allows the government to make minor amendments for the purpose of maintaining the effect of any tax legislation.
For example, replacing references to “EU” with references to “EU and UK”, making minor amendments consequential on other changes to the law under section 8 of the European Union (Withdrawal) Act 2018 and changing values in “euros” to values in “sterling”.
Change 2
Amending an existing power which permits the government to bring international tax agreements into effect in UK law.
The measure mirrors a provision currently contained in legislation which gives effect to EU law, but which will no longer have effect after the ceases to be bound by EU law.
This measure ensures that public authorities are able to share information with HMRC for the purpose of enabling compliance with international tax agreements, and for HMRC to disclose that information to other countries for that purpose.
Change 3
The introduction of a measure which removes reference to EU legislation when HMRC are considering whether, and the extent to which, a taxpayer is unjustly enriched by repayment of Insurance Premium Tax, Landfill Tax or Excise Duty.
Policy objective
This measure provides for minor consequential amendments to the Taxes Acts which will be needed if the UK leaves the EU without a deal.
It ensures that tax law can continue to have the effect intended by Parliament in the case of a no deal exit. It does not introduce changes in tax policy.
This measure will ensure that tax legislation continues to keep it working in the same way as it does now in preparation for the possibility of a no deal exit from the EU.
It will also ensure that HMRC can continue to co-operate with other tax administrations to the widest possible extent, whilst ensuring that UK information is only used for specified legitimate purposes and that it remains confidential, in the same way as it would be in the UK, in the hands of the overseas recipient.
It will also ensure that the consideration of whether (and by how much) a taxpayer is unjustly enriched only refers to sums of tax wrongly paid as a result of a mistake of UK legislation (and not of EU legislation).
Unjust enrichment is used as a defence to a claim for repayment of wrongly paid Insurance Premium Tax, Landfill Tax or Excise Duty.
Background to the measure
This measure is not a policy change. It will allow the government to make minor amendments to tax law to keep it working in the same way as it does now if the UK leaves the EU without a deal.
This measure provides a power under which the government can make minor consequential amendments to tax legislation including changes to EU terminology.
This would be done to keep the tax system running as it does now and align with legislative changes being made in other areas of government. Given the minor and technical nature of the amendments proposed, no consultation is required.
Detailed proposal
Operative date
The legislation will have effect on and after the Royal Assent to Finance Bill 2018-19.
Current law
There is no current provision, this power is new.
Proposed revisions
Legislation will be introduced in Finance Bill 2018-19 to provide for a power to make minor consequential amendments pursuant to leaving the EU.
The government proposes to use the power to amend various parts of tax legislation in a way that maintains the same effect in the event of a no deal exit from the EU.
In particular, the power will allow amendment of section 173 Finance Act 2006, paragraph 2A of schedule 5 Finance Act 1997.
Summary of impacts
This measure will not in itself have impacts on individuals or businesses.
A Tax Information and Impact Note (TIIN) will be published for the subsequent regulations which will set out their impact.
Exchequer impact (£m)
This measure is not expected to have an Exchequer impact.
| 2018 to 2019 | 2019 to 2020 | 2020 to 2021 | 2021 to 2022 | 2022 to 2023 | 2023 to 2024 |
| nil | nil | nil | nil | nil | nil |
Economic impact
This measure is not expected to have any significant economic impacts.
Impact on individuals, households and families
No individuals are affected by this measure.
This measure is not expected to impact on family formation, stability or breakdown.
Equalities impacts
It is not anticipated that there will be impacts for those in groups sharing protected characteristics.
Impact on business including civil society organisations
This measure has no impact on businesses or civil society organisations.
Operational impact (£m) (HMRC or other)
This measure has no operational impact.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
This measure will be kept under review through communication with affected taxpayer groups.
Further advice
If you have any questions about this change, contact Joanna Hastie at email joanna.hastie@hmrc.gsi.gov.uk.