Finance Act 1995
1995 c. 4
An Act to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with Finance.
[1st May 1995]
Most Gracious Sovereign,
WE, Your Majesty’s most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary supplies to defray Your Majesty’s public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
(1) The Alcoholic Liquor Duties Act 1979 shall be amended as follows.
(2) In section 1 (the alcoholic liquors dutiable under the Act) in subsections (4) and (5) (definitions of “wine” and “made-wine”) after the words “any liquor” there shall in both cases be inserted “ which is of a strength exceeding 1.2 per cent and which is ”.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) In section 59(1) (prohibition on rendering wine and made-wine sparkling) for paragraph (b) there shall be substituted the following paragraph—
(b) is wine or made-wine of a strength exceeding 5.5 per cent.
.
(5) Subsections (2) and (4) above—
(a) shall apply in relation to liquor imported into, or produced in, the United Kingdom on or after 1st January 1995, and
(b) as regards any provision about liquor removed to the United Kingdom from the Isle of Man, shall also apply in relation to liquor so removed on or after that date.
(6) Subsection (3) above shall apply in relation to liquor imported into, or made in, the United Kingdom on or after 1st January 1995.
(1) For the Table of rates of duty in Schedule 1 to the Alcoholic Liquor Duties Act 1979 (wine and made-wine) there shall be substituted the Table in Schedule 1 to this Act.
(2) This section shall be deemed to have come into force on 1st January 1995.
(1) In section 5 of the Alcoholic Liquor Duties Act 1979 (spirits) for “£19.81” there shall be substituted “ £20.60 ”.
(2) In section 36(1) of that Act (beer) for “£10.45” there shall be substituted “ £10.82 ”.
(3) In section 62(1) of that Act (cider) for “£22.82” there shall be substituted “ £23.78 ”.
(4) This section shall be deemed to have come into force on 1st January 1995.
(1) In section 6(1) of the Hydrocarbon Oil Duties Act 1979 for “£0.3314” (duty on light oil) and “£0.2770” (duty on heavy oil) there shall be substituted “ £0.3526 ” and “ £0.3044 ” respectively.
(2) In section 8 of that Act (duty on road fuel gas) the following subsection shall be substituted for subsections (3) to (5)—
(3) The rate of the duty under this section shall be £0.3314 a kilogram.
(3) In section 11(1) of that Act (rebate on heavy oil) for “£0.0116” (fuel oil) and “£0.0164” (gas oil) there shall be substituted “ £0.0166 ” and “ £0.0214 ” respectively.
(4) In section 14(1) of that Act (rebate on light oil for use as furnace fuel) for “£0.0116” there shall be substituted “ £0.0166 ”.
(5) This section shall be deemed to have come into force at 6 o’clock in the evening of 29th November 1994.
(1) In section 6(1) of the Hydrocarbon Oil Duties Act 1979, as amended by section 6 above, for “£0.3526” (duty on light oil) and “£0.3044” (duty on heavy oil) there shall be substituted “ £0.3614 ” and “ £0.3132 ” respectively.
(2) This section shall be deemed to have come into force on 1st January 1995.
(1) In the definition of “road vehicle” in section 27(1) of the Hydrocarbon Oil Duties Act 1979 (road vehicle not to include vehicle of a kind specified in Schedule 1) for the words “of a kind specified in Schedule 1 to this Act” there shall be substituted “ which is an excepted vehicle within the meaning given by Schedule 1 to this Act. ”
(2) The following Schedule shall be substituted for Schedule 1 to that Act—
SCHEDULE 1
EXCEPTED VEHICLES
Unlicensed vehicles not used on public roads
1 (1) A vehicle is an excepted vehicle while—
(a) it is not used on a public road, and
(b) no licence under the Vehicle Excise and Registration Act 1994 is in force in respect of it.
(2) A vehicle in respect of which there is current a certificate or document in the form of a licence issued under regulations under section 22(2) of the Vehicle Excise and Registration Act 1994 shall be treated for the purposes of sub-paragraph (1) above as a vehicle in respect of which a licence under that Act is in force.
Tractors
2 (1) A vehicle is an excepted vehicle if it is—
(a) an agricultural tractor, or
(b) an off-road tractor.
(2) In sub-paragraph (1) above “agricultural tractor” means a tractor used on public roads solely for purposes relating to agriculture, horticulture, forestry or activities falling within sub-paragraph (3) below.
(3) The activities falling within this sub-paragraph are—
(a) cutting verges bordering public roads;
(b) cutting hedges or trees bordering public roads or bordering verges which border public roads.
(4) In sub-paragraph (1) above “off-road tractor” means a tractor which is not an agricultural tractor (within the meaning given by sub-paragraph (2) above) and which is—
(a) designed and constructed primarily for use otherwise than on roads, and
(b) incapable by reason of its construction of exceeding a speed of twenty-five miles per hour on the level under its own power.
Light agricultural vehicles
3 (1) A vehicle is an excepted vehicle if it is a light agricultural vehicle.
(2) In sub-paragraph (1) above “light agricultural vehicle” means a vehicle which—
(a) has a revenue weight not exceeding 1,000 kilograms,
(b) is designed and constructed so as to seat only the driver,
(c) is designed and constructed primarily for use otherwise than on roads, and
(d) is used solely for purposes relating to agriculture, horticulture or forestry.
(3) In sub-paragraph (2)(a) above “revenue weight” has the meaning given by section 60A of the Vehicle Excise and Registration Act 1994.
Agricultural engines
4 An agricultural engine is an excepted vehicle.
Vehicles used between different parts of land
5 A vehicle is an excepted vehicle if—
(a) it is used only for purposes relating to agriculture, horticulture or forestry,
(b) it is used on public roads only in passing between different areas of land occupied by the same person, and
(c) the distance it travels on public roads in passing between any two such areas does not exceed 1.5 kilometres.
Mowing machines
6 A mowing machine is an excepted vehicle.
Snow clearing vehicles
7 A vehicle is an excepted vehicle when it is—
(a) being used, or
(b) going to or from the place where it is to be or has been used,
for the purpose of clearing snow from public roads by means of a snow plough or similar device (whether or not forming part of the vehicle).
Gritters
8 A vehicle is an excepted vehicle if it is constructed or adapted, and used, solely for the conveyance of machinery for spreading material on roads to deal with frost, ice or snow (with or without articles or material used for the purposes of the machinery).
Mobile cranes
9 (1) A mobile crane is an excepted vehicle.
(2) In sub-paragraph (1) above “mobile crane” means a vehicle which is designed and constructed as a mobile crane and which—
(a) is used on public roads only as a crane in connection with work carried on at a site in the immediate vicinity or for the purpose of proceeding to and from a place where it is to be or has been used as a crane, and
(b) when so proceeding does not carry any load except such as is necessary for its propulsion or equipment.
Digging machines
10 (1) A digging machine is an excepted vehicle.
(2) In sub-paragraph (1) above “digging machine” means a vehicle which is designed, constructed and used for the purpose of trench digging, or any kind of excavating or shovelling work, and which—
(a) is used on public roads only for that purpose or for the purpose of proceeding to and from the place where it is to be or has been used for that purpose, and
(b) when so proceeding does not carry any load except such as is necessary for its propulsion or equipment.
Works trucks
11 (1) A works truck is an excepted vehicle.
(2) In sub-paragraph (1) above “works truck” means a goods vehicle which is designed for use in private premises and is used on public roads only—
(a) for carrying goods between private premises and a vehicle on a road within one kilometre of those premises,
(b) in passing from one part of private premises to another,
(c) in passing between private premises and other private premises in a case where the premises are within one kilometre of each other, or
(d) in connection with road works at the site of the works or within one kilometre of the site of the works.
(3) In sub-paragraph (2) above “goods vehicle” means a vehicle constructed or adapted for use and used for the conveyance of goods or burden of any description, whether in the course of trade or not.
Road construction vehicles
12 (1) A vehicle is an excepted vehicle if it is—
(a) a road construction vehicle, and
(b) used or kept solely for the conveyance of built-in road construction machinery (with or without articles or material used for the purposes of the machinery).
(2) In sub-paragraph (1) above “road construction vehicle” means a vehicle—
(a) which is constructed or adapted for use for the conveyance of built-in road construction machinery, and
(b) which is not constructed or adapted for the conveyance of any other load except articles and material used for the purposes of such machinery.
(3) In sub-paragraphs (1) and (2) above “built-in road construction machinery”, in relation to a vehicle, means road construction machinery built in as part of, or permanently attached to, the vehicle.
(4) In sub-paragraph (3) above “road construction machinery” means a machine or device suitable for use for the construction or repair of roads and used for no purpose other than the construction or repair of roads.
Road rollers
13 A road roller is an excepted vehicle.
Interpretation
14 In this Schedule “public road” means a road which is repairable at the public expense.
(3) This section shall come into force on 1st July 1995.
In section 8 of the Hydrocarbon Oil Duties Act 1979 (road fuel gas) subsection (7) (no charge on use of gas if delivered or stocked before 3rd July 1972) shall be omitted.
(1) For the Table of rates of duty in Schedule 1 to the Tobacco Products Duty Act 1979 there shall be substituted—
TABLE
1. Cigarettes | An amount equal to 20 per cent. of the retail price plus £55.58 per thousand cigarettes.
2. Cigars | £82.56 per kilogram.
3. Hand-rolling tobacco | £85.94 per kilogram.
4. Other smoking tobacco and chewing tobacco | £36.30 per kilogram.
(2) This section shall be deemed to have come into force at 6 o’clock in the evening of 29th November 1994.
(1) For the Table of rates of duty in Schedule 1 to the Tobacco Products Duty Act 1979, as substituted by section 10 above, there shall be substituted—
TABLE
1. Cigarettes | An amount equal to 20 per cent. of the retail price plus £57.64 per thousand cigarettes.
2. Cigars | £85.61 per kilogram.
3. Hand-rolling tobacco | £85.94 per kilogram.
4. Other smoking tobacco and chewing tobacco | £37.64 per kilogram.
(2) This section shall be deemed to have come into force on 1st January 1995.
(1) In section 7(1) of the Betting and Gaming Duties Act 1981 (which specifies 37.50 per cent. as the rate of pool betting duty) for “37.50 per cent.” there shall be substituted “ 32.50 per cent. ”
(2) This section shall apply in relation to any pool betting duty the requirement to pay which takes effect on or after 6th May 1995.
(1) In the Betting and Gaming Duties Act 1981 for the Table set out at the end of section 23 (amount of duty) there shall be substituted—
TABLE
(1) Period (in months) for which licence granted | (2) Small prize or five-penny machines | (3) Other machines
£ | £
1 | 60 | 150
2 | 105 | 275
3 | 155 | 400
4 | 205 | 520
5 | 250 | 645
6 | 295 | 755
7 | 340 | 880
8 | 390 | 1,005
9 | 435 | 1,115
10 | 480 | 1,235
11 | 510 | 1,305
12 | 535 | 1,375
(2) This section shall apply in relation to any gaming machine licence for which an application is made on or after 1st December 1994.
(1) Schedule 3 to this Act (which contains amendments for or in connection with the application of the provisions of the Betting and Gaming Duties Act 1981 relating to gaming machine licence duty to amusement machines that are not gaming machines and also makes a consequential amendment of the Customs and Excise Management Act 1979) shall have effect.
(2) Schedule 3 to this Act shall have effect (subject to subsection (3) below) in relation only to the provision of a machine at a time on or after 1st November 1995 and to licences for periods beginning on or after that date and the duty on such licences.
(3) Where a gaming machine licence has been granted before 1st November 1995 for a period ending on or after that date, that licence shall have effect on and after that date, for so long as it remains in force, as an amusement machine licence authorising the provision, in accordance with the licence, of the machines the provision of which was authorised by the licence immediately before that date.
(1) In Schedule 6 to the Finance Act 1994 (air passenger duty: administration and enforcement) after paragraph 11 there shall be inserted—
Assessment of interest
11A (1) Where by virtue of paragraph 7 above duty due from any person for an accounting period carries interest, the Commissioners may assess that person to an amount of interest in accordance with this paragraph.
(2) Notice of the assessment shall be given to the person liable for the interest or a representative of his.
(3) The amount of the interest shall be calculated by reference to a period ending on a date (“the due date”) no later than the date of the notice.
(4) The notice shall specify—
(a) the amount of the duty which carries the interest assessed (“the specified duty”);
(b) the amount of the interest assessed (“the specified interest”);
(c) the due date; and
(d) a date by which that amount is required to be paid (“the payment date”).
(5) Sub-paragraphs (6) and (7) below apply where the specified duty or any part of it is unpaid on the date of the notice.
(6) If the unpaid amount or any part of it is paid by the payment date, the payment shall be treated for the purposes of paragraph 7 above as made on the due date.
(7) To the extent that the unpaid amount is not paid by the payment date, an assessment may be made under this paragraph in respect of any interest on the unpaid amount which accrues after the due date.
(8) For the purposes of sub-paragraphs (6) and (7) above, a payment—
(a) which purports to be a payment of the unpaid amount or any part of it, but
(b) which is insufficient to discharge both the liability to pay the unpaid amount and the liability to pay the specified interest,
shall be treated as made in discharge (or partial discharge) of the liability to pay the specified interest before it is treated as discharging to any extent the liability to pay the unpaid amount.
(9) A notice of interest assessed under this paragraph may be combined in one document with notification of an assessment under section 12 of this Act which relates to the specified duty.
(10) A notice which is so combined must comply with the requirements of this paragraph which relate to a notice which is not so combined.
(11) The specified interest shall be recoverable as if it were duty due from the person assessed to that interest.
(12) For the purposes of this paragraph a person is a representative of another if—
(a) he is that other’s personal representative;
(b) he is that other’s trustee in bankruptcy or is a receiver or liquidator appointed in relation to that other or in relation to any of his property; or
(c) he is a person acting in some other representative capacity in relation to that other.
(2) In Schedule 5 to the 1994 Act (decisions subject to review and appeal) in paragraph 9 (decisions under Chapter IV of Part I of that Act) the word “and” immediately preceding sub-paragraph (d) shall be omitted and after that sub-paragraph there shall be inserted—
(e) any decision with respect to the amount of any interest specified in an assessment under paragraph 11A of Schedule 6;
.
(3) In section 16 of the 1994 Act (appeals to a tribunal) at the beginning of subsection (8) (meaning of “ancillary matter” for the purposes of that section) there shall be inserted “ Subject to subsection (9) below ” and after that subsection there shall be inserted—
(9) References in this section to a decision as to an ancillary matter do not include a reference to a decision of a description specified in paragraph 9(e) of Schedule 5 to this Act.
(10) Nothing in this section shall be taken to confer on an appeal tribunal any power to vary an amount of interest specified in an assessment under paragraph 11A of Schedule 6 to this Act except in so far as it is necessary to reduce it to the amount which is appropriate under paragraph 7 of that Schedule.
(4) This section shall apply in relation to accounting periods ending on or after 1st January 1995.
(1) Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty) shall be amended as follows.
(2) In paragraph 1(b) (rate for vehicle constructed after 1946 and for which no other rate is specified) for “£130” there shall be substituted “ £135 ”.
(3) In paragraph 3(1)(a) (rate for hackney carriage with seating capacity under nine) for “£130” there shall be substituted “ £135 ”.
(4) In paragraph 10 (trailer supplement)—
(a) in sub-paragraph (2) for “£130” there shall be substituted “ £135 ”;
(b) in sub-paragraph (3) for “£360” there shall be substituted “ £370 ”.
(5) This section shall apply in relation to licences taken out on or after 30th November 1994.
(1) In Part X of the Customs and Excise Management Act 1979, after section 137 (recovery of duties, &c.) insert—
Recovery of overpaid excise duty.
137A (1) Where a person pays to the Commissioners an amount by way of excise duty which is not due to them, the Commissioners are liable to repay that amount.
(2) The Commissioners shall not be required to make any such repayment unless a claim is made to them in such form, and supported by such documentary evidence, as may be prescribed by them by regulations; and regulations under this subsection may make different provision for different cases.
(3) It is a defence to a claim for repayment that the repayment would unjustly enrich the claimant.
(4) No claim for repayment may be made after the expiry of the period of six years beginning with the date of the payment or, if later, the date on which the claimant (or, where the right to repayment has been assigned or otherwise transmitted, any predecessor in title of his) discovered, or could with reasonable diligence have discovered, that the amount was not due.
(5) Except as provided by this section the Commissioners are not liable to repay an amount paid to them by way of excise duty by reason of the fact that it was not due to them.
.
(2) In section 17(5) of the Customs and Excise Management Act 1979, after paragraph (b) (restriction on repayment of sums overpaid in error) insert—
Paragraph (b) above does not apply to a claim for repayment under section 137A below.
.
(3) Section 29 of the Finance Act 1989 (recovery of overpaid excise duty and car tax) shall cease to have effect so far as it relates to excise duty.
(4) In section 14(1) of the Finance Act 1994 (decisions subject to review and appeal), after paragraph (b) insert—
(bb) any decision of the Commissioners on a claim under section 137A of the Customs and Excise Management Act 1979 for repayment of excise duty;
.
(5) The provisions of this section have effect in relation to payments made on or after such date as the Commissioners of Customs and Excise may appoint by order made by statutory instrument.
(1) In subsection (1) of section 21 of the Value Added Tax Act 1994 (value of imported goods), for “and (3)” there shall be substituted “ to (4) ”; and after subsection (3) there shall be inserted the following subsections—
(4) For the purposes of this Act, the value of any goods falling within subsection (5) below which are imported from a place outside the member States shall be taken to be an amount equal to 14.29 per cent. of the amount which, apart from this subsection, would be their value for those purposes.
(5) The goods which fall within this subsection are—
(a) any work of art which was obtained by any person before 1st April 1973 otherwise than by his producing it himself or by succession on the death of the person who produced it;
(b) any work of art which was—
(i) exported from the United Kingdom before 1st April 1973,
(ii) exported from the United Kingdom on or after that date and before 1st January 1993 by a person who, had he supplied it in the United Kingdom at the date when it was exported, would not have had to account for VAT on the full value of the supply, or
(iii) exported from the United Kingdom on or after 1st January 1993 by such a person to a place which, at the time, was outside the member States,
being, in each case, a work of art which has not been imported between the time when it was exported and the importation in question;
(c) any antique more than one hundred years old, being neither a work of art nor pearls or loose gem stones; and
(d) collectors’ pieces of zoological, botanical, mineralogical, anatomical, historical, archaeological, paleontological or ethnographic interest.
(6) In this section “work of art” means goods falling within any of the following descriptions, that is to say—
(a) paintings, drawings and pastels executed by hand but not comprised in manufactured articles that have been hand-painted or hand-decorated;
(b) original engravings, lithographs and other prints;
(c) original sculptures and statuary, in any material.
(7) An order under section 2(2) may contain provision making such alteration of the percentage for the time being specified in subsection (4) above as the Treasury consider appropriate in consequence of any increase or decrease by that order of the rate of VAT.
(2) This section shall have effect in relation to goods imported at any time on or after the day on which this Act is passed.
(1) In subsection (1) of section 47 of the Value Added Tax Act 1994 (agents etc.), for “the goods may” there shall be substituted “ then, if the taxable person acts in relation to the supply in his own name, the goods shall ”.
(2) After subsection (2) of that section there shall be inserted the following subsection—
(2A) Where, in the case of any supply of goods to which subsection (1) above does not apply, goods are supplied through an agent who acts in his own name, the supply shall be treated both as a supply to the agent and as a supply by the agent.
(3) In subsection (3) of that section, the words “goods or” shall be omitted.
(4) This section shall have effect—
(a) so far as it amends section 47(1) of that Act, in relation to goods acquired or imported on or after the day on which this Act is passed; and
(b) for other purposes, in relation to any supply taking place on or after that day.
(1) After section 50 of the Value Added Tax Act 1994 there shall be inserted the following section—
Margin schemes.
50A (1) The Treasury may by order provide, in relation to any such description of supplies to which this section applies as may be specified in the order, for a taxable person to be entitled to opt that, where he makes supplies of that description, VAT is to be charged by reference to the profit margin on the supplies, instead of by reference to their value.
(2) This section applies to the following supplies, that is to say—
(a) supplies of works of art, antiques or collectors’ items;
(b) supplies of motor vehicles;
(c) supplies of second-hand goods; and
(d) any supply of goods through a person who acts as an agent, but in his own name, in relation to the supply.
(3) An option for the purposes of an order under this section shall be exercisable, and may be withdrawn, in such manner as may be required by such an order.
(4) Subject to subsection (7) below, the profit margin on a supply to which this section applies shall be taken, for the purposes of an order under this section, to be equal to the amount (if any) by which the price at which the person making the supply obtained the goods in question is exceeded by the price at which he supplies them.
(5) For the purposes of this section the price at which a person has obtained any goods and the price at which he supplies them shall each be calculated in accordance with the provisions contained in an order under this section; and such an order may, in particular, make provision stipulating the extent to which any VAT charged on a supply, acquisition or importation of any goods is to be treated as included in the price at which those goods have been obtained or are supplied.
(6) An order under this section may provide that the consideration for any services supplied in connection with a supply of goods by a person who acts as an agent, but in his own name, in relation to the supply of the goods is to be treated for the purposes of any such order as an amount to be taken into account in computing the profit margin on the supply of the goods, instead of being separately chargeable to VAT as comprised in the value of the services supplied.
(7) An order under this section may provide for the total profit margin on all the goods of a particular description supplied by a person in any prescribed accounting period to be calculated by—
(a) aggregating all the prices at which that person obtained goods of that description in that period together with any amount carried forward to that period in pursuance of paragraph (d) below;
(b) aggregating all the prices at which he supplies goods of that description in that period;
(c) treating the total profit margin on goods supplied in that period as being equal to the amount (if any) by which, for that period, the aggregate calculated in pursuance of paragraph (a) above is exceeded by the aggregate calculated in pursuance of paragraph (b) above; and
(d) treating any amount by which, for that period, the aggregate calculated in pursuance of paragraph (b) above is exceeded by the aggregate calculated in pursuance of paragraph (a) above as an amount to be carried forward to the following prescribed accounting period so as to be included, for the period to which it is carried forward, in any aggregate falling to be calculated in pursuance of paragraph (a) above.
(8) An order under this section may—
(a) make different provision for different cases; and
(b) make provisions of the order subject to such general or special directions as may, in accordance with the order, be given by the Commissioners with respect to any matter to which the order relates.
(2) Section 32 of that Act (relief on supply of certain second-hand goods) shall cease to have effect on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.
(1) Section 43 of the Value Added Tax Act 1994 (groups of companies) shall be amended as follows.
(2) After subsection (1) there shall be inserted the following subsection—
(1A) Paragraph (a) of subsection (1) above shall not apply in relation to any supply of goods or services by one member of a group to another unless both the body making the supply and the body supplied continue to be members of that group until—
(a) in the case of a supply of goods which are to be removed in pursuance of the supply, a time after the removal;
(b) in the case of any other supply of goods, a time after the goods have been made available, in pursuance of the supply, to the body supplied; or
(c) in the case of a supply of services, a time after the services have been performed.
;
and in subsection (1)(b), for “other supply” there shall be substituted “ supply which is a supply to which paragraph (a) above does not apply and is a supply ”.
(3) In subsection (5) (applications to be treated or to cease to be treated as members of a group etc.), for the words after paragraph (d) there shall be substituted—
unless the Commissioners refuse the application under subsection (5A) below.
(4) After subsection (5) there shall be inserted the following subsection—
(5A) If it appears to the Commissioners necessary to do so for the protection of the revenue, they may—
(a) refuse any application made to the effect mentioned in paragraph (a) or (c) of subsection (5) above; or
(b) refuse any application made to the effect mentioned in paragraph (b) or (d) of that subsection in a case that does not appear to them to fall within subsection (6) below.
(5) Subsection (2) above has effect in relation to—
(a) any supply made on or after 1st March 1995, and
(b) any supply made before that date in the case of which both the body making the supply and the body supplied continued to be members of the group in question until at least that date,
and subsections (3) and (4) above have effect in relation to applications made on or after the day on which this Act is passed.
(1) Section 81 of the Value Added Tax Act 1994 (which includes provision as to the setting off of credits) shall be amended as follows.
(2) For subsection (4) there shall be substituted the following subsections—
(4A) Subsection (3) above shall not require any such amount as is mentioned in paragraph (a) of that subsection (“the credit”) to be set against any such sum as is mentioned in paragraph (b) of that subsection (“the debit”) in any case where—
(a) an insolvency procedure has been applied to the person entitled to the credit;
(b) the credit became due after that procedure was so applied; and
(c) the liability to pay the debit either arose before that procedure was so applied or (having arisen afterwards) relates to, or to matters occurring in the course of, the carrying on of any business at times before the procedure was so applied.
(4B) Subject to subsection (4C) below, the following are the times when an insolvency procedure is to be taken, for the purposes of this section, to be applied to any person, that is to say—
(a) when a bankruptcy order, winding-up order, adminis-tration order or award of sequestration is made in relation to that person;
(b) when that person is put into administrative receivership;
(c) when that person, being a corporation, passes a resolution for voluntary winding up;
(d) when any voluntary arrangement approved in accordance with Part I or VIII of the Insolvency Act 1986, or Part II or Chapter II of Part VIII of the Insolvency (Northern Ireland) Order 1989, comes into force in relation to that person;
(e) when a deed of arrangement registered in accordance with the Deeds of Arrangement Act 1914 or Chapter I of Part VIII of that Order of 1989 takes effect in relation to that person;
(f) when that person’s estate becomes vested in any other person as that person’s trustee under a trust deed.
(4C) In this section references, in relation to any person, to the application of an insolvency procedure to that person shall not include—
(a) the making of a bankruptcy order, winding-up order, administration order or award of sequestration at a time when any such arrangement or deed as is mentioned in subsection (4B)(d) to (f) above is in force in relation to that person;
(b) the making of a winding-up order at any of the following times, that is to say—
(i) immediately upon the discharge of an administration order made in relation to that person;
(ii) when that person is being wound up voluntarily;
(iii) when that person is in administrative receivership;
or
(c) the making of an administration order in relation to that person at any time when that person is in administrative receivership.
(4D) For the purposes of this section a person shall be regarded as being in administrative receivership throughout any continuous period for which (disregarding any temporary vacancy in the office of receiver) there is an administrative receiver of that person, and the reference in subsection (4B) above to a person being put into administrative receivership shall be construed accordingly.
(3) In subsection (5) (definitions), for “subsection (4) above” there shall be substituted “ this section ”.
(4) This section shall have effect in relation to amounts becoming due from the Commissioners of Customs and Excise at times on or after the day on which this Act is passed.
28 Transactions treated as supplies for purposes of zero-rating etc.
(1) In section 30 of the Value Added Tax Act 1994 (zero-rated supplies) for subsection (5) (transactions described in Schedule 8 to the Act to be treated as supplies) there shall be substituted—
(5) The export of any goods by a charity to a place outside the member States shall for the purposes of this Act be treated as a supply made by the charity—
(a) in the United Kingdom, and
(b) in the course or furtherance of a business carried on by the charity.
(2) This section shall have effect in relation to transactions occurring on or after the day on which this Act is passed.
In section 18 of the Value Added Tax Act 1994 (place and time of acquisition or supply of goods subject to warehousing regime) for subsection (5) (regulations about payment of VAT on supply of such goods) there shall be substituted the following subsections—
(5) The Commissioners may by regulations make provision for enabling a taxable person to pay the VAT he is required to pay by virtue of paragraph (b) of subsection (4) above at a time later than that provided for by that paragraph.
(5A) Regulations under subsection (5) above may in particular make provision for either or both of the following—
(a) for the taxable person to pay the VAT together with the VAT chargeable on other supplies by him of goods and services;
(b) for the taxable person to pay the VAT together with any duty of excise deferment of which has been granted to him under section 127A of the Customs and Excise Management Act 1979;
and they may make different provision for different descriptions of taxable person and for different descriptions of goods.
(1) Section 57 of the Value Added Tax Act 1994 (determination of consideration for fuel supplied for private use) shall be amended as follows.
(2) The following subsection shall be inserted after subsection (1)—
(1A) Where the prescribed accounting period is a period of 12 months, the consideration appropriate to any vehicle is that specified in relation to a vehicle of the appropriate description in the second column of Table A below.
(3) In subsection (2) (consideration where prescribed accounting period is period of 3 months) for “second” there shall be substituted “ third ”.
(4) In subsection (3) (consideration where prescribed accounting period is period of one month) for “third” there shall be substituted “ fourth ”.
(5) The following Table shall be substituted for Table A—
TABLE A
Description of vehicle (Type of engine and cylinder capacity in cubic centimetres) | 12 month period | 3 month period | 1 month period
£ | £ | £
Diesel engine 2000 or less | 605 | 151 | 50
More than 2000 | 780 | 195 | 65
Any other type of engine 1400 or less | 670 | 167 | 55
More than 1400 but not more than 2000 | 850 | 212 | 70
More than 2000 | 1260 | 315 | 105
(6) This section shall apply in relation to prescribed accounting periods beginning on or after 6th April 1995.
(7) Nothing in this section shall be taken to prejudice any practice by which the consideration appropriate to a vehicle is arrived at where a prescribed accounting period beginning before 6th April 1995 is a period of 12 months.
(1) In section 84(2) of the Value Added Tax Act 1994 (appeal not to be entertained unless amounts shown in returns paid, except in certain cases) the words “, except in the case of an appeal against a decision with respect to the matter mentioned in section 83(l),” shall be omitted.
(2) This section shall apply in relation to appeals brought after the day on which this Act is passed.
(1) The Value Added Tax Act 1994 shall have effect, and be deemed always to have had effect, as if it had been enacted as follows.
(2) Section 35(1) (refund of VAT to persons constructing certain buildings) shall be deemed to have been enacted with the word “building” substituted for the word “ dwelling ” in each place where it occurs.
(3) Paragraph 5(5) and (6)(b) of Schedule 4 and paragraph 7(b) of Schedule 6 (which contain references to paragraph 5(3) of Schedule 4 which should be references to paragraph 5(4) of that Schedule) shall be deemed to have been enacted—
(a) in the case of paragraph 5(5) and (6)(b), with “sub-paragraph (4) above” substituted for “ sub-paragraph (3) above ”, in each case; and
(b) in the case of paragraph 7(b), with “paragraph 5(4)” substituted for “ paragraph 5(3) ”.
(4) In paragraph 9 of Schedule 13 (which contains transitional provisions relating to bad debt relief), the following sub-paragraph shall be deemed to have been enacted instead of sub-paragraph (2) of that paragraph, that is to say—
(2) Claims for refunds of VAT shall not be made in accordance with section 36 of this Act in relation to—
(a) any supply made before 1st April 1989; or
(b) any supply as respects which a claim is or has been made under section 22 of the 1983 Act.
(5) In paragraph 13 of Schedule 14 (consequential amendment of the Finance Act 1994), the following sub-paragraph shall be deemed to have been enacted instead of sub-paragraph (a) of that paragraph, that is to say—
(a) in subsection (4) for “25 and 29 of the Finance Act 1985” and “40 of the Value Added Tax Act 1983” there shall be substituted, respectively, “85 and 87 of the Value Added Tax Act 1994” and “83 of that Act”;
.