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(2) “Relevant retrospective tax provision” means a provision of the Income Tax Acts which—
(a) has retrospective effect, and
(b) affects the amount of general earnings received by an earner from an employment on which he is chargeable to income tax under the employment income Parts of ITEPA 2003 for a tax year.
(3) It does not matter whether the relevant retrospective tax provision was passed or made before the commencement day.
(4) Regulations under this section may, in particular, make provision—
(a) modifying any provision of any enactment (including this Act and any enactment passed or made on or after the commencement day);
(b) for any provision of any such enactment to apply in such cases, and with such modifications (if any), as the regulations may prescribe.
(5) Regulations under this section may be made so as to have retrospective effect but must not have effect in relation to any time before 2nd December 2004.
(6) In particular, regulations under this section made by virtue of subsection (5)—
(a) may affect matters determined before the time when the regulations are made, and
(b) may provide for those matters to be redetermined accordingly.
(7) Regulations under this section—
(a) may not impose any liability to pay a Class 1A contribution, and
(b) may not increase the amount of any Class 1A contribution.
(8) The powers conferred by this section are without prejudice to—
(a) any liability to pay a Class 1A contribution which arises by virtue of any relevant retrospective tax provision, and
(b) any powers conferred by or by virtue of any other provision of this Act or any other enactment.
(9) In particular, any modification of any provision of an instrument by regulations under this section is without prejudice to any other power to amend or revoke the provisions of the instrument (including the modified provision).
(10) For the purposes of this section—
“the commencement day” means the day on which the National Insurance Contributions Act 2006 was passed;
“enactment” includes an instrument made under an Act.”
(2) In section 172 of that Act (parliamentary control of statutory instruments), in subsection (11A), before “11(3)” insert “10ZC,”.
(1) Schedule 1 to the Social Security Contributions and Benefits Act 1992 (c. 4) (supplementary provisions relating to Class 1 contributions) is amended as follows.
(2) In paragraph 3A (restrictions on recovery of employer’s contributions), in sub-paragraph (2A)—
(a) after “relates to” insert “—
(a)”, and
(b) after “market value)” insert “, or
(b) any contribution, or any part of any contribution, liability to which arises as a result of regulations being given retrospective effect by virtue of section 4B(2) (earnings: power to make retrospective provision in consequence of retrospective tax legislation)”.
(3) In paragraph 3B (transfer of liability for employer’s contributions to employee), in sub-paragraph (7B)—
(a) after “relates to” insert “—
(a)”, and
(b) after “market value)” insert “, or
(b) any liability, or any part of any liability, to a contribution arising as a result of regulations being given retrospective effect by virtue of section 4B(2) (earnings: power to make retrospective provision in consequence of retrospective tax legislation)”.
(4) The amendments made by this section have effect in relation to agreements and elections whether entered into or made before, or on or after, the day on which this Act is passed (including those entered into or made before 2nd December 2004).
(1) Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) (supplementary provisions relating to Class 1 contributions) is amended as follows.
(2) In paragraph 3A (restrictions on recovery of employer’s contributions), in sub-paragraph (2A)—
(a) after “relates to” insert “—
(a)”, and
(b) after “market value)” insert “, or
(b) any contribution, or any part of any contribution, liability to which arises as a result of regulations being given retrospective effect by virtue of section 4B(2) (earnings: power to make retrospective provision in consequence of retrospective tax legislation)”.
(3) In paragraph 3B (transfer of liability for employer’s contributions to employee), in sub-paragraph (7B)—
(a) after “relates to” insert “—
(a)”, and
(b) after “market value)” insert “, or
(b) any liability, or any part of any liability, to a contribution arising as a result of regulations being given retrospective effect by virtue of section 4B(2) (earnings: power to make retrospective provision in consequence of retrospective tax legislation)”.
(4) The amendments made by this section have effect in relation to agreements and elections whether entered into or made before, or on or after, the day on which this Act is passed (including those entered into or made before 2nd December 2004).
(1) The Social Security Administration Act 1992 (c. 5) is amended as follows.
(2) After section 132 insert—
(1) The Treasury may by regulations make provision requiring, or relating to, the disclosure of information in relation to any notifiable contribution arrangements or notifiable contribution proposal.
(2) The only provision which may be made under subsection (1) is provision applying (with or without modification), or corresponding to, any of the following provisions—
(a) any provision of, or made under, Part 7 of the Finance Act 2004 (disclosure of tax avoidance schemes) so far as that provision relates to income tax;
(b) section 98C of the Taxes Management Act 1970 (penalties for failure to comply with Part 7 of the Finance Act 2004) and any other provision of the Taxes Management Act 1970 so far as it relates to a penalty under that section;
(c) any provision made under section 132 of the Finance Act 1999 or section 135 of the Finance Act 2002 (electronic communications);
(d) any provision of any other enactment or instrument (including any enactment or instrument passed or made on or after the day on which the National Insurance Contributions Act 2006 was passed) which requires, or relates to, the disclosure of information in relation to tax avoidance arrangements which relate in whole or in part to income tax.
(3) For the purposes of subsection (1)—
“notifiable contribution arrangements” means any arrangements which—
enable, or might be expected to enable, any person to obtain an advantage in relation to a contribution, and
are such that the main benefit, or one of the main benefits, that might be expected to arise from the arrangements is the obtaining of that advantage;
“notifiable contribution proposal” means a proposal for arrangements which, if entered into, would be notifiable contribution arrangements (whether the proposal relates to a particular person or to any person who may seek to take advantage of it).
(4) Where, at any time after the passing of the National Insurance Contributions Act 2006, a relevant tax provision is passed or made which changes the notifiable tax matters, the Treasury may, by regulations, amend the definitions in subsection (3) so as to make an analogous change to the matters in respect of which information may be required to be disclosed by virtue of this section.
(5) In subsection (4)—
“the notifiable tax matters” means the arrangements, proposals or other matters in respect of which information is or may be required to be disclosed under a relevant tax provision;
“relevant tax provision” means a provision mentioned in subsection (2).
(6) No provision made by regulations under this section may require any person to disclose to the Commissioners for Her Majesty’s Revenue and Customs, or any other person, any information with respect to which a claim to legal professional privilege, or, in Scotland, to confidentiality of communications, could be maintained in legal proceedings.
(7) In this section—
“advantage”, in relation to any contribution, means—
the avoidance or reduction of a liability for that contribution, or
the deferral of the payment of that contribution;
“arrangements” includes any scheme, transaction or series of transactions;
“contribution” means a contribution under—
Part 1 of the Social Security Contributions and Benefits Act 1992, or
Part 1 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;
“tax avoidance arrangements” includes arrangements which enable, or might be expected to enable, a person to obtain an advantage in relation to any tax (within the meaning of Part 7 of the Finance Act 2004).”
(3) In section 190(1) (statutory instruments subject to affirmative resolution procedure), after “provisions)—” insert—
“(za) regulations under section 132A(4);”.
(4) In section 192(5) (which lists the provisions of that Act which extend to Northern Ireland), at the appropriate place in the list insert—
“section 132A (and sections 189 and 190, but only for the purposes of regulations under section 132A);”.
(1) Sections 1, 3 and 5 extend to England and Wales and Scotland only.
(2) Sections 2, 4 and 6 extend to Northern Ireland only.
(3) The remaining provisions of this Act extend to England and Wales, Scotland and Northern Ireland.
This Act comes into force on the day on which it is passed.
This Act may be cited as the National Insurance Contributions Act 2006.
National Insurance Contributions Act 2006