Finance Act 1982
1982 c. 39
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.
[30th July, 1982]
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 Duties on spirits, beer, wine, made-wine and cider.
(1) In section 5 of the Alcoholic Liquor Duties Act 1979 (excise duty on spirits) for the words from “at the rates” to the end of the section there shall be substituted the words “ at the rate of £14.47 per litre of alcohol in the spirits ”.
(2) In section 36 of that Act (excise duty on beer) for “£18.00” and “£0.60” there shall be substituted “ £20.40 ” and “ £0.68 ” respectively.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) In section 62(1) of that Act (excise duty on cider) for “£7.20” there shall be substituted “ £8.16 ”.
(6) This section shall be deemed to have come into force on 10th March 1982.
(1) The Hydrocarbon Oil Duties Act 1979 shall have effect subject to the following modifications.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) In subsection (1) of section 27 (interpretation) after the words “In this Act” there shall be inserted the words— “ “aviation gasoline” has the meaning given by section 6(4) above ”.
(5) In Part I of Schedule 3 (regulations under section 21 relating to hydrocarbon oil) after paragraph 10 there shall be inserted the following paragraphs—
1OA Amending the definition of “aviation gasoline” in subsection (4) of section 6 of this Act.
1OB Conferring power to require information relating to the supply or use of aviation gasoline to be given by producers, dealers and users.
1OC Requiring producers and users of and dealers in aviation gasoline to keep and produce records relating to aviation gasoline.
(6) In Schedule 4 (regulations under section 24) after paragraph 18 there shall be inserted the following paragraphs—
18A Prohibiting the use of aviation gasoline otherwise than as a fuel for aircraft.
18B Prohibiting the taking of aviation gasoline into fuel tanks for engines other than aircraft engines.
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) Schedule 6 to this Act shall have effect for the purposes of—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) increasing gaming licence duty;
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) increasing, and otherwise amending the law relating to, gaming machine licence duty.
(2) Part II of Schedule 6 shall have effect in relation to bets made at any time by reference to an event taking place after 31st March 1982, Part Ill of that Schedule shall have effect in relation to gaming licences for any period beginning after 31st March 1982, Part IV of that Schedule shall have effect in relation to bingo played after 26th September 1982 and Part V of that Schedule shall have effect in relation to gaming machine licences for any period beginning after 30th September 1982.
9 Immature spirits for home use and loss allowance for imported beer.
(1)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) At the end of section 40 of the Alcoholic Liquor Duties Act 1979 (charge of duty on imported beer) there shall be added the following subsection:—
(3) The duty chargeable on beer to which subsection (1) above applies and which is imported or removed into the United Kingdom in containers having a capacity of more than 10 litres shall be charged on a quantity which is 2 per cent. less than the quantity so imported or removed.
(4) Subsection (3) above has effect in relation to beer imported or removed into the United Kingdom on or after 1st October 1982.
(1) In subsection (2) of section 1 of the Excise Duties (Surcharges or Rebates) Act 1979 (regulator powers) for the words from “groups of duties” to “every right” there shall be substituted the words
duties to which this section applies, provide for an adjustment—
(a) of any liability to such a duty; and
(b) of any right
.
(2) For subsections (3) and (4) of section 2 of that Act there shall be substituted the following subsection—
(3) An order—
(a) may specify different percentages for different cases; but
(b) may not provide for both an addition to any amount payable and a deduction from any other amount payable.
.
(3) In subsection (7) of that section (procedure for certain orders) for the words from “with respect to” to the end of paragraph (b) there shall be substituted the words
—
(a) specifies a percentage by way of addition to any amount payable or increases a percentage so specified; or
(b) withdraws or reduces a percentage specified by way of deduction from any amount payable,
.
11 Power of Commissioners with respect to agricultural levies etc.
(1) Notwithstanding that—
(a) agricultural levies, within the meaning of section 6 of the European Communities Act 1972, which are charged on goods exported from the United Kingdom are, in accordance with subsection (4) of that section, paid to and recoverable by the relevant Minister (within the meaning given by subsection (9) of that section), and
(b) payments made by virtue of Community arrangements to which subsection (3) of that section applies are made by that Minister (within the meaning so given),
proceedings for an offence under the Theft Act 1968, the Theft Act 1978, the Theft Act (Northern Ireland) 1969 , the Theft (Northern Ireland) Order 1978 or the Fraud Act 2006 relating to any such levies or payments may be instituted by the Commissioners.
(2) At the end of Part V of the Customs and Excise Management Act 1979 (control of exportation) there shall be added the following section:—
Offences in relation to agricultural levies.
68A (1) Without prejudice to section 11(1) of the Finance Act 1982, if any person is, in relation to any goods, in any way knowingly concerned in any fraudulent evasion or attempt at evasion of any agricultural levy chargeable on the export of the goods, he shall be guilty of an offence and may be detained.
(2) Any person guilty of an offence under this section shall be liable, on summary conviction, to a penalty of three times the value of the goods or £200, whichever is the greater.
(3) Any goods in respect of which an offence under this section is committed shall be liable to forfeiture.
(4) In this section “agricultural levy” has the same meaning as in section 6 of the European Communities Act 1972 and the provisions of this section apply notwithstanding that any such levy may be payable to the Intervention Board for Agricultural Produce.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In subsection (1) of section 8 of the Customs and Excise Management Act 1979 (functions of Commissioners may be exercised by secretaries, assistant secretaries, etc.) for paragraphs (b) and (c) there shall be substituted the following paragraph:—
(b) any officer or other person acting under the authority of the Commissioners
;
and at the end of that subsection there shall be added the words “ and any statement signed by one or more of the Commissioners certifying that a person specified in the statement was, at a time or for a purpose so specified, acting under the authority of the Commissioners shall be admissible in evidence, and in Scotland shall be sufficient evidence, of the fact so certified. ”
(1) Subject to the provisions of this section, Part II of the 1967 Act (assistance for house purchase and improvement in Great Britain) and Part VIII of the 1981 Order (option mortgages in Northern Ireland) shall cease to have effect on 1st April 1983.
(2) Nothing in this Act or the Taxes Act 1988 affects the continuing operation of—
(a) sections 24(2)(a) and 28 of the 1967 Act (entitlement to and calculation of subsidy) with respect to payments falling to be made by the Secretary of State and related to amounts due from the borrower before 1st April 1983 or treated as so due by virtue of section 28(1A) of that Act; or
(b) section 28A of the 1967 Act (recovery of subsidy in certain cases) in its application to any such payments; or
(c) Articles 142(2)(a) and 149 of the 1981 Order (entitlement to and calculation of subsidy) with respect to payments falling to be made by the Department of the Environment for Northern Ireland and related to amounts due from the borrower before 1st April 1983 or treated as so due by virtue of Article 149(2) of that Order; or
(d) Article 150 of the 1981 Order (recovery of subsidy in certain cases) in its application to any such payments.
(3) Nothing in this Act or the Taxes Act 1988 affects the continuing operation of Part II of the 1967 Act in relation to a loan in respect of which an option notice is in force on 31st March 1983 if—
(a) on that date the residence condition in section 24B of that Act is not fulfilled ; and
(b) as a result either of the lender having first become aware of the fact on or before that date or of a notification having been given on or before that date, the option notice will (assuming the continuation in force of the said Part II) cease to have effect after that date by virtue of paragraph (ix) or paragraph (x) of subsection (3) of section 24 of that Act.
(4) Nothing in this Act or the Taxes Act 1988 affects the continuing operation of Part VIII of the 1981 Order in relation to a loan in respect of which an option notice is in force on 31st March 1983 if—
(a) on that date the residence condition in Article 145 of that Order is not fulfilled; and
(b) as a result either of the lender having first become aware of that fact on or before that date or of a notification having been given on or before that date, the option notice will (assuming the continuation in force of the said Part VIII) cease to have effect after that date by virtue of sub-paragraph (i) or sub-paragraph (j) of paragraph (4) of Article 142 of that Order.
(5) In this section— “the 1967 Act” means the Housing Subsidies Act 1967; and “the 1981 Order” means the Housing (Northern Ireland) Order 1981.
(1) In section 55 of the Taxes Management Act 1970 (postponement of recovery of tax) in subsection (2) for the words “If no application is made under subsection (3) below” there shall be substituted the words “ Except as otherwise provided by the following provisions of this section ”.
(2) After subsection (3) of that section there shall be inserted the following subsection—
(3A) An application under subsection (3) above may be made more than thirty days after the date of the issue of the notice of assessment if there is a change in the circumstances of the case as a result of which the appellant has grounds for believing that he is over-charged to tax by the assessment.
(3) In subsection (6) of that section (determination of application) in paragraph (a) after the words “subsection (3) above” there shall be inserted the words “ other than an application made by virtue of subsection (3A) above ”.
(4) This section has effect in relation to notices of assessment to tax issued after the passing of this Act.
(1) In section 86 of the Taxes Management Act 1970 (interest on overdue tax) in subsection (3) (date when interest becomes payable)—
(a) the following paragraph shall be inserted after paragraph (a)—
(aa) in relation to any tax payable in accordance with the determination of an appeal against an assessment but which had not been charged by the assessment, the date which if it had been charged would by virtue of paragraph (a) above have been the reckonable date; and
; and
(b) in paragraph (b) after the words “paragraph (a)” there shall be inserted the words “ or paragraph (aa) ”.
(2) This section has effect in relation to notices of assessment to tax issued after the passing of this Act.
(1) In the following enactments, namely,—
(a) section 128 of the Capital Gains Tax Act 1979 (chattel exemption by reference to consideration of £2,000),
(b) section 12(2)(b) of the Taxes Management Act 1970 (information about assets acquired), and
(c) section 25(7) of that Act (information about assets disposed of),
for “£2,000”, in each case where it occurs, there shall be substituted “ £3,000 ”.
(2) This section applies to disposals on or after 6th April 1982 and, accordingly, in relation to subsection (1)(b) above, to assets acquired on or after that date.
(1) Section 79 of the Finance Act 1980 (which gives relief for disposals between individuals and, by virtue of section 78 of the Finance Act 1981, disposals by individuals to trustees) shall have effect as if references to an individual included references to the trustees of a settlement; but a claim for relief under that section in respect of a disposal to the trustees of a settlement shall be made by the transferor alone (instead of by the transferor and the transferee).
(2) In subsection (4) of that section, the words from “or” onwards shall cease to have effect.
(3) In subsection (5) of that section—
(a) in paragraph (a), for the words from “chargeable” to “purposes” there shall be substituted the words “ attributable to the value of the asset ”; and
(b) the words from “and where” onwards shall cease to have effect.
(4) In section 78 of the Finance Act 1981 (subsections (1) and (3) of which are superseded by this section) in subsection (2) for the words “that section” there shall be substituted the words “ section 79 of the Finance Act 1980 ”.
(5) This section applies to disposals on or after 6th April 1982.
(1) Where, in a case of a man and his wife living with him, one of them—
(a) disposes of securities to his wife or her husband on or after 6th April 1982, and
(b) disposes of other securities, which are of the same kind as those disposed of to the wife or husband, to another person (in this section referred to as “a third party”), the provisions of subsections (3) and (4) below have effect with respect to any securities acquired by the person making those disposals which, but for the provisions of section 88 above, could have been comprised in either of those disposals.
(2) Where a company which is a member of a group of companies—
(a) disposes of securities to another member of the group on or after 1st April 1982, and
(b) disposes of other securities, which are of the same kind as those disposed of to that other company, to another person (in this section referred to as a “third party”) not being another member of the same group, the provisions of subsections (3) and (4) below have effect with respect to any securities acquired by the company making those disposals which, but for the provisions of section 88 above, could have been comprised in either of those disposals.
(3) If, apart from the provisions of this subsection, securities disposed of to a third party—
(a) would be indexed securities, and
(b) but for the disposal referred to in subsection (1)(a) or, as the case may be, subsection (2)(a) above would be unindexed securities,
the identification shall be reversed so that the securities disposed of to the third party (or, if the quantity disposed of to the third party was greater than the quantity disposed of to the wife or husband or, as the case may be, to the other company, a part of them equal to the quantity so disposed of) shall be unindexed securities.
(4) If there is more than one disposal falling within subsection (1)(a) or, as the case may be, subsection (2)(a) above, or more than one disposal to a third party, the provisions of subsection (3) above shall be applied to securities disposed of on an earlier date before being applied to securities disposed of on a later date, and the re-identification of the securities first disposed of shall accordingly determine the way in which this section applies to the securities comprised in the later disposal.
(5) In this subsection “indexed securities” means securities which were acquired or provided more than twelve months before the date of the disposal concerned and “unindexed securities” shall be construed accordingly.
(6) Section 272 of the Taxes Act (groups of companies) shall apply for the purpose of this section as it applies for the purposes of sections 273 to 281 of that Act.
(7) Subsection (9) of section 88 above applies for the purposes of this section as it applies for the purposes of that.
129 Exemption from duty on grants, transfers to charities, etc.
(1) Where any conveyance, transfer or lease is made or agreed to be made to a charitable company or to the trustees of a charitable trust or to the Trustees of the National Heritage Memorial Fund ..., no stamp duty shall be chargeable under Part I or II... of Schedule 13 to the Finance Act 1999—
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
on the instrument by which the conveyance, transfer or lease, or the agreement for it, is effected.
(2) An instrument in respect of which stamp duty is not chargeable by virtue only of subsection (1) above shall not be treated as duly stamped unless it is stamped in accordance with section 12 of the Stamp Act 1891 with a stamp denoting that it is not chargeable with any duty.
(3) This section applies to instruments executed on or after 22nd March 1982 and shall be deemed to have come into force on that date.
132 Increase of petroleum revenue tax and ending of supplementary petroleum duty.
(1) With respect to chargeable periods ending after 31st December 1982, section 1(2) of the principal Act (rate of petroleum revenue tax) shall be amended by substituting for the words “70 per cent.” the words “ 75 per cent. ”.
(2) At the end of subsection (5) of section 122 of the Finance Act 1981 (the chargeable periods for which supplementary petroleum duty is chargeable) for the words “and 30th June 1982” there shall be substituted the words “ 30th June 1982 and 31st December 1982 and to no other periods ”.
(1) In section 2 of the principal Act (assessable profits and allowable losses) at the beginning of subsection (5) there shall be inserted the words “ Subject to subsection (5A) below ” and at the end of that subsection there shall be inserted the following subsection—
(5A) In any case where oil consisting of gas is disposed of in a sale at arm’s length and the terms of the contract are such that the seller is required to transport the gas from a place on land in the United Kingdom for delivery at a place outside the United Kingdom or to meet some or all of the costs of or incidental to its transportation from and to such places then, for the purposes of this Part of this Act—
(a) the price received or receivable for the gas shall be deemed to be that for which it would have been sold, and
(b) the gas shall be deemed to be delivered at the time it would have been delivered,
if the terms of the contract required the gas to be delivered as mentioned in paragraph 2(2)(b) of Schedule 3 to this Act and did not require the seller to meet any such costs as are mentioned above.
(2) In section 122(3) of the Finance Act 1981 (gross profit for Purposes of supplementary petroleum duty) for “2(4) and (5)” there shall be substituted “ 2(4) to (5A) ”.
(3) This section has effect with respect to chargeable periods ending after 31st December 1981.
134 Alternative valuation of ethane used for petrochemical purposes.
(1) Where an election is made under this section and accepted by the Board, the market value for taxation purposes of any ethane to which the election applies shall be determined, not in accordance with paragraphs 2, 2A and 3 of Schedule 3 to the principal Act (value under a notional contract), but in accordance with a price formula specified in the election; and, in relation to any such ethane, any reference to market value in any other provision of the principal Act , in Part 8 of the Corporation Tax Act 2010 or in Chapter 16A of Part 2 of the Income Tax (Trading and Other Income) Act 2005 shall be construed accordingly.
(2) Subject to subsection (3) below, an election under this section must be made before 1st January 1994 and applies only to ethane—
(a) which, during the period covered by the election, is either disposed of otherwise than in sales at arm’s length or relevantly appropriated; and
(b) which is used or to be used for petrochemical purposes by or on behalf of the person to whom it is so disposed of or, as the case may be, by or on behalf of the participator by whom it is appropriated; and
(c) which is not subjected to fractionation between the time at which it is disposed of or appropriated as mentioned in paragraph (a) above and the time at which it is used as mentioned in paragraph (b) above.
(3) In any case where—
(a) at a time during the period covered by an election, market value falls to be determined for ethane to which subsection (4)(b) or subsection (5)(d) of section 2 of the principal Act applies (oil stocks at the end of chargeable periods), and
(b) after the expiry of the chargeable period in question, the ethane is disposed of or appropriated and used as mentioned in subsection (2) above,
the market value of that ethane at the time referred to in paragraph (a) above shall be determined as if it were then ethane to which the election applies.
(4) Where any ethane is used principally for the petro-chemical purposes specified in the election but some of it is used for fuel, as an incident of the principal use, the whole of it shall be regarded as ethane to which the election applies; but, subject thereto, the market value of ethane used otherwise than for those purposes shall be determined as if no election had been made.
(5) The provisions of Schedule 18 to this Act shall have effect for supplementing this section.
(6) In the preceding provisions of this section—
(a) “ethane” means oil consisting of gas of which the largest component by volume over any chargeable period is ethane and which—
(i) before being disposed of or appropriated as mentioned in subsection (2)(a) above either is not subjected to initial treatment or is subjected to initial treatment which does not include fractionation, or
(ii) results from the fractionation of gas before it is disposed of or relevantly appropriated;
(b) “taxation purposes” means the purposes of Part I of the principal Act and of Part VIII of the Finance Act 1981 (supplementary petroleum duty).
(7) In this section “fractionation” means the treatment of gas in order to separate gas of one or more kinds as mentioned in Paragraph 2A(3) of Schedule 3 to the principal Act; and for the purposes of subsection (6)(a) above,—
(a) the proportion of ethane in any gas shall be determined at a temperature of 15 degrees centigrade and at a pressure of one atmosphere; and
(b) “component” means ethane, methane or liquified petroleum gas.
(1) In any case where a determination of an oil field is made under Schedule 1 to the principal Act and before the date of the determination oil has been won from the oil field so determined,—
(a) Part I of the principal Act, except Schedule 7, and Part VIII of the Finance Act 1981 (supplementary petroleum duty) shall apply as if the determination had been made immediately before oil was first won from the field;
(b) where the actual date of the determination is later than the date which by virtue of paragraph (a) above is the end of a chargeable period for the oil field, then as respects that chargeable period sections 33(1) and 34 of the Taxes Management Act 1970 (in their application by virtue of paragraph 1 of Schedule 2 to the principal Act), paragraphs 2(1), 5(1) and 13 of Schedule 2 to the principal Act and paragraph 9 of Schedule 16 to the Finance Act 1981 shall have effect as if any reference to the end of a chargeable period were a reference to the actual date of the determination;
(c) where the actual date of the determination is later than the date which by virtue of paragraph (a) above is the end of a claim period in relation to the oil field, then as respects that claim period paragraph 2(1) of Schedule 5 to the principal Act and paragraph 1(2) of Schedule 6 to that Act shall have effect as if any reference to the end of the claim period in which the expenditure is incurred were a reference to that actual date; and
(d) where the actual date of the determination is later than the date which by virtue of paragraph (a) above is the end of the transfer period, within the meaning of Schedule 17 to the Finance Act 1980, in relation to the oil field, then as respects that transfer period paragraph 3(1) of that Schedule shall have effect as if the reference to the end of the transfer period were a reference to that actual date.
(2) In any case where—
(a) a determination is made under paragraph 5 of Schedule 1 to the principal Act (variation of fields) varying an earlier determination; and
(b) in consequence of that variation an existing oil field is altered to any extent;
then Part I of the principal Act and Part VIII of the Finance Act 1981 shall apply in relation to the oil field subject only to the modifications provided by subsection (3) below.
(3) Where subsection (2) above applies—
(a) the time allowed—
(i) by paragraph 2 or paragraph 5 of Schedule 2 to the principal Act for making returns, or
(ii) by paragraph 3 of Schedule 17 to the Finance Act 1980 for delivering notices—
shall as respects returns or notices containing such particulars as may be required in consequence of the later determination be extended to a period ending, in the case of a return under paragraph 2 or a notice under paragraph 3, two months and, in the case of a return under paragraph 5, one month after the actual date of that determination;
(b) any claim falling to be made in accordance with Schedule 5 or 6 to the principal Act in respect of any expenditure incurred before the actual date of the later determination which could not have been made before that determination may be made at any time before the expiry of the period of six years beginning with that date;
(c) section 1 of the Petroleum Revenue Tax Act 1980 (payments of tax on account). section 105 of the Finance Act 1980 (advance payments of tax) and paragraph 10 of Schedule 16 to the Finance Act 1981 (payments on account of supplementary petroleum duty) shall not apply in relation to any return made under paragraph 2 of Schedule 2 to the principal Act in so far as it is made by virtue of paragraph (a) above; and
(d) section 139 below (advance petroleum revenue tax) shall not apply in relation to so much of the gross profit as accrues to any person in a chargeable period ending before the actual date of the later determination by virtue only of that later determination.
(4) In subsection (3) of section 12 of the principal Act (references to things done etc. before determination of field) the words from “as regards” to “any oil field” shall cease to have effect.
(5) This section has effect in relation to determinations made after 31st December 1981.