UK Act of Parliament 2016 United Kingdom

Finance Act 2016

View on legislation.gov.uk Ask Guv about this Act

At a glance

Enforced by

What's here

10 compliance obligations, 4 practical guides across 3 topics · 1 journey

Penalty landscape

2 of 10 obligations carry an unlimited fine. 2 carry different penalties and 6 have no criminal penalty — flagged in the list below.

Who this Act binds

Business-side actors with duties under this Act, ranked by how often they appear.

Any Person 4
Trader 2
Employer 1
Client 1
Responsible Person 1

Plus 1 non-business duty on Crown ministers, regulators, local authorities or tribunals — shown collapsed under each section below.

Step-by-step journeys using this legislation

Walkthroughs that take you from a real business situation to compliance.

Manage your employees

1 step

Relevant guidance

Practical guides for businesses affected by this Act, ordered by how closely they engage with it.

Supporting — topic alignment

2 guides

Apprenticeship Levy for large employers

Patent Box: reduce Corporation Tax on patented profits

Mentioned in related content

2 guides

Other Acts binding the same actors

For each actor bound by this Act, the other UK Acts that bind them most often. Useful for understanding the full compliance landscape facing each role.

Any Person also bound by 749 other Acts (top 5 shown)

Human Medicines Regulations 2012 2012 110 duties
Licensing Act 2003 2003 105 duties
Merchant Shipping Act 1995 1995 97 duties
Road Traffic Act 1988 1988 95 duties
Air Navigation Order 2016 2016 86 duties

Traders also bound by 219 other Acts (top 5 shown)

Value Added Tax Regulations 1995 1995 952 duties
TULRCA 1992 1992 39 duties
Companies Act 2006 2006 39 duties
Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 2013 39 duties
The Customs (Import Duty) (EU Exit) Regulations 2018 2018 33 duties

Employers also bound by 171 other Acts (top 5 shown)

Provision and Use of Work Equipment Regulations 1998 1998 204 duties
The Income Tax (Pay As You Earn) Regulations 2003 2003 201 duties
Electricity at Work Regulations 1989 1989 55 duties
Fire Safety (Scotland) Regulations 2006 2006 51 duties
TULRCA 1992 1992 47 duties

Clients also bound by 30 other Acts (top 5 shown)

Construction (Design and Management) Regulations 2015 2015 89 duties
Building Regulations (Northern Ireland) 2012 2012 14 duties
Building (Higher-Risk Buildings Procedures) (England) Regulations 2023 2023 10 duties
Medicines for Human Use (Clinical Trials) Regulations 2004 2004 10 duties
Building Regulations 2010 2010 10 duties

Responsible Persons also bound by 56 other Acts (top 5 shown)

MH(CT)(S)A 2003 2003 45 duties
Climate Change Levy (General) Regulations 2001 2001 24 duties
Regulatory Reform (Fire Safety) Order 2005 (England/Wales comparison) 2005 22 duties
The Offshore Installations (Prevention of Fire and Explosion, and Emergency Response) Regulations 1995 1995 21 duties
The Offshore Installations and Pipeline Works (Management and Administration) Regulations 1995 1995 16 duties

What this Act requires

Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.

Part 1 — Income tax

s.030

EIS and VCTs: election

Formally elect to opt-out of specific EIS and VCT tax rule changes Trader

Browse 43 other sections in this Part — procedural / definitional / commencement

s.001

Part 2 — Corporation tax

Browse 24 other sections in this Part — procedural / definitional / commencement

s.045

Part 3 — Income tax and corporation tax

Browse 14 other sections in this Part — procedural / definitional / commencement

s.069

Part 4 — Capital gains tax

Browse 10 other sections in this Part — procedural / definitional / commencement

s.083

Part 5 — Inheritance tax etc

Browse 5 other sections in this Part — procedural / definitional / commencement

s.093

Part 6 — Apprenticeship levy

s.100

A person's pay bill for a tax year

Amended 1 time

s.101

Connected companies

Agree and allocate the £15,000 Apprenticeship Levy allowance Trader

s.102

Connected charities

Divide apprenticeship levy allowance between connected charities Employer

s.105

Assessment, payment etc

Other duties (1) — Crown / regulator

HMRC must establish rules for Apprenticeship Levy assessment and payment Statutory regulator

s.107

Real time information

51 weeks imprisonment

Provide apprenticeship levy information to your service provider Client

s.109

No deduction in respect of levy to be made from earnings

Do not deduct Apprenticeship Levy costs from employee wages Any Person

Browse 18 other sections in this Part — procedural / definitional / commencement

s.098

Part 7 — VAT

s.123

VAT: representatives and security

Amended 1 time

s.126

VAT: women's sanitary products

Amended 1 time

Browse 3 other sections in this Part — procedural / definitional / commencement

s.122

Part 8 — SDLT and ATED

s.128

SDLT: higher rates for additional dwellings etc

Amended 1 time

Browse 9 other sections in this Part — procedural / definitional / commencement

s.127

Part 9 — Other taxes and duties

Browse 19 other sections in this Part — procedural / definitional / commencement

s.137

Part 10 — Tax avoidance and evasion

s.162

Penalties for enablers of offshore tax evasion or non-compliance

Unlimited fine Amended 1 time

Enable offshore tax evasion or non-compliance Any Person

s.164

Offshore tax errors etc: publishing details of deliberate tax defaulters

Amended 1 time

s.166

Offences relating to offshore income, assets and activities

Amended 1 time

Browse 8 other sections in this Part — procedural / definitional / commencement

s.156

Part 11 — Administration, enforcement and supplementary powers

s.167

Provide information to HMRC regarding tax advantages and state aid Responsible Person

s.182

Information powers: supplementary

Amended 3 times

Browse 12 other sections in this Part — procedural / definitional / commencement

s.168

Part 12 — Office of Tax Simplification

s.184

s.189

Commencement

Part 13 — Final

Browse 2 other sections in this Part — procedural / definitional / commencement

s.190

Interpretation

s.191

Short title

Schedules

s.sch017

Aqua methanol etc

7 years imprisonment

Mix aqua methanol with prohibited substances Any Person

s.sch020

Penalties for enablers of offshore tax evasion or non-compliance

Unlimited fine

Enable offshore tax evasion or non‑compliance Any Person

Browse 23 other Schedules — structural / supplementary

s.001

Official guidance

Authoritative sources published by regulators or government explaining this legislation.

OECD modified nexus approach for IP regimes (BEPS Action 5) (opens in a new tab) Detailed Guidance
R&D tax relief guidance (opens in a new tab) Detailed Guidance
Intellectual Property Office - apply for a patent (opens in a new tab) Detailed Guidance
HMRC Patent Box technical guidance (CIRD200000) (opens in a new tab) Detailed Guidance
Patent Box guidance on GOV.UK (opens in a new tab) Detailed Guidance
Connected companies guidance (HMRC) (opens in a new tab) Publication
Growth and Skills Levy information (opens in a new tab) Detailed Guidance
Find apprenticeship training providers (opens in a new tab) Detailed Guidance
Apprenticeship funding overview (opens in a new tab) Publication
Apprenticeship funding rules 2025 to 2026 (opens in a new tab) Publication
... and 2 more

Enforcement and responsible bodies

The regulators that administer or enforce this legislation.

HMRC

HM Revenue & Customs

Tax collection, customs duties, national insurance, tax credits, and enforcement of the National Minimum Wage. Regulates all UK businesses for tax compliance …