Finance Act 2020
What this means for your business
- Enforced by
- HMRC
- Applies to
- United Kingdom
- On this page
- 7 compliance obligations, 1 practical guide
What you must do
7 compliance obligations under this legislation — 2 can result in imprisonment.
Management duties 1
Take on DST obligations when you become the group's responsible member
If your business becomes the 'responsible member' for a Digital Services Tax group, you automatically inherit all DST duties, liabilities and any past penalties that could have applied to the previous responsible member. HMRC will treat everything the group did before the change as if it were done by your business, and you can be charged for any breaches that occurred earlier.
Notifications 1
Notify HMRC of any change in group information
If your business is part of a tax‑group and you have previously reported information to HMRC, you must tell HMRC as soon as any of that information changes. The responsible person for the group has to send the update within 90 days of the change.
Payments and fees 1
Pay Digital Services Tax on UK digital revenues
If your company is part of a corporate group that meets the DST threshold, you must calculate a 2% Digital Services Tax on the group’s UK digital services revenue that exceeds £25 million, and then pay the share that corresponds to your company’s proportion of that revenue. This tax is due for every accounting period in which the threshold is met.
Offences and prohibitions 3
Fail to pay HGV road user levy after notice
Unlimited fineIf your heavy goods vehicle is liable for the road‑user levy and you receive a payment notice for the transitional period but do not pay the amount within 28 days, you commit a criminal offence. Conviction can lead to a fine and/or imprisonment, depending on the penalty set for the underlying offence under the 2013 Act.
Use or supply restricted fuel for private pleasure craft
7 years imprisonmentIf you use, cause to be taken into an engine, or supply rebated fuel or marked oil that is used to propel a private pleasure craft – or you know it will be used for that purpose – you commit a criminal offence. On conviction you can be fined (unlimited amount) and/or jailed for up to seven years, and the fuel may be forfeited. The offence can be tried in either the magistrates' court or the Crown Court.
Use or supply restricted fuel for private pleasure craft
7 years imprisonmentIf you use, supply or allow restricted fuel (rebated fuel or marked oil) to be used as fuel for a private pleasure craft, you commit an offence. On conviction you face an unlimited fine and/or up to seven years’ imprisonment, plus possible forfeiture of the fuel and additional excise‑duty charges. The offence can be tried either in the magistrates’ court or the Crown Court.
Reporting and filing 1
Report to HMRC when group threshold conditions are met
If your company is part of a group that reaches the Finance Act thresholds, you must send HMRC the information they request. The responsible member of the group has to do this within 90 days of the accounting period ending, using the method set out in HMRC's notice.
Penalties for non-compliance
3 penalties under this legislation. 2 can result in imprisonment. 3 carry an unlimited fine.
Use or supply restricted fuel for private pleasure craft
Unlimited fine and/or 7 years imprisonment
Use or supply restricted fuel for private pleasure craft
Unlimited fine and/or 7 years imprisonment
Fail to pay HGV road user levy after notice
Unlimited fine
Practical guidance
Our guides explain how to comply with the requirements above.
Sections and provisions
131 classified provisions from this legislation.
Duties 5
Powers 6
- s.13 Power to exempt social security benefits from income tax
- s.20 Repaying sums paid to HMRC under agreements relating to certain loans etc
- s.67 Interest on overdue DST
- s.96 Charge for allocating allowances under emissions reduction trading scheme
- s.99 HMRC debts: regulations
- s.111 Preparing for a new tax in respect of certain plastic packaging
Definitions 25
- Schedule 3 Entrepreneurs' relief the relevant individual the relevant shareholders original shares
- s.11 Apprenticeship bursaries paid to persons leaving local authority care Apprentice
- s.39 Digital services tax: introduction
- s.41 Meaning of “UK digital services revenues” marketplace transaction online advertising revenues online marketplace revenues
- s.42 UK digital services revenues: accommodation and land online marketplace revenues
- s.43 Meaning of “digital services activity” etc Digital services activity Social media service Online marketplace
- s.44 Meaning of “user” and “UK user” UK user
- s.45 Exclusion for online financial marketplaces financial instrument provider relevant accounting period
- s.48 Alternative basis of charge the appropriate proportion
- s.49 Section 48: meaning of “relevant operating expenses” Excluded expenses specified
- s.50 Relief for certain cross-border transactions Relevant cross-border transaction foreign user foreign DST charge
- s.52 Meaning of “the responsible member”
- s.57 Meaning of “group”, “parent” etc group GAAP group subsidiary
- s.58 Section 57: meaning of “relevant entity” relevant entity participator recognised stock exchange
- s.59 Continuity of a group over time
- s.61 Accounting periods and meaning of “a group's accounts” accounting reference date
- s.63 Meaning of revenues arising, or expenses recognised, in a period consolidation exemption
- s.64 Meaning of “the applicable accounting standards” etc Acceptable overseas GAAP IAS specified
- s.72 Interpretation of Part HMRC accounting period the applicable accounting standards
- s.77 Stamp duty: transfers of unlisted securities and connected persons unlisted securities the enactments relating to stamp duty
- ... and 5 more definitions
Exemptions 13
- s.4 Starting rate limit for savings for tax year 2020-21
- Schedule 16 Taxation of coronavirus support payments
- s.17 Loan charge reduced where underlying liability disclosed but unenforceable
- s.18 Relief from interest on tax payable by a person subject to the loan charge
- s.26 Quarterly instalment payments
- s.37 Gains from contracts for life insurance etc: top slicing relief
- s.56 Duty to file returns
- s.76 Exceptional circumstances preventing disposal of interest in three year period
- s.86 Motor caravans
- s.88 HGV road user levy : exempt period
- s.103 HMRC: exercise of officer functions
- s.110 Future Fund: EIS and SEIS relief
- Schedule 15 Tax relief for scheme payments etc