Law

Finance (No. 2) Act 2023

United Kingdom · statute

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In force since 2026-07-15, as the publisher states.

Copy read on 2026-11-08. The page it was read from

Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.

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Contents: 422 provisions
  1. Title and introductory text
  2. 1 Income tax charge for tax year 2023-24
  3. 2 Main rates of income tax for tax year 2023-24
  4. 3 Default and savings rates of income tax for tax year 2023-24
  5. 4 Freezing starting rate limit for savings for tax year 2023-24
  6. 5 Charge and main rate for financial year 2024
  7. 6 Standard small profits rate and fraction for financial year 2024
  8. 7 Temporary full expensing etc for expenditure on plant or machinery
  9. 8 Annual investment allowance to remain at £1M beyond temporary period
  10. 9 First-year allowance for expenditure on electric vehicle charge points
  11. 10 Relief for research and development
  12. 11 Treatment of profits from patents etc: small profits rate of corporation tax
  13. 12 Energy (oil and gas) profits levy: de-carbonisation allowance
  14. 13 Museums and galleries exhibition tax relief: extension of sunset date
  15. 14 Extension of the temporary increase in theatre tax credit etc
  16. 15 Seed enterprise investment scheme: increase of limits etc.
  17. 16 CSOP schemes: share value limit and share class
  18. 17 Enterprise management incentives: restricted shares and declarations
  19. 18 Lifetime allowance charge abolished
  20. 19 Certain lump sums to be taxed at marginal rate
  21. 20 Annual allowance increased
  22. 21 Money purchase annual allowance
  23. 22 Annual allowance: tapering
  24. 23 Modification of certain existing transitional protections
  25. 24 Collective money purchase arrangements
  26. 25 Relief relating to net pay arrangements
  27. 26 Payments under Jobs Growth Wales Plus
  28. 27 Power to clarify tax treatment of devolved social security benefits
  29. 28 Qualifying care relief: increase in individual’s limit
  30. 29 Estates in administration and trusts
  31. 30 Transfer of basic life assurance and general annuity business
  32. 31 Certain re-insurance sums not to count as deemed I-E receipts
  33. 32 Insurers in difficulties: write-down orders for corporation tax purposes
  34. 33 Insurers in difficulties: write-down orders in case of pension schemes
  35. 34 Corporate interest restriction
  36. 35 Investment vehicles
  37. 36 Share exchanges involving non-UK incorporated close companies
  38. 37 Records relating to transfer pricing
  39. 38 Double taxation relief: foreign nominal rates
  40. 39 Payments to farmers under the lump sum exit scheme etc
  41. 40 Contracts completed after ordinary notification period
  42. 41 Separated spouses and civil partners
  43. 42 Carried interest: election to pay tax as scheme profits arise
  44. 43 Relief on disposal of joint interests in land
  45. 44 Meaning of “alcoholic product”
  46. 45 Alcoholic strength
  47. 46 Categories of alcoholic products: regulations
  48. 47 Alcohol duty: charge
  49. 48 Rates
  50. 49 Excise duty point and payment
  51. 50 Qualifying draught products: reduced rates
  52. 51 Alcoholic products qualifying for draught relief
  53. 52 Repackaging qualifying draught products
  54. 53 Repackaging in contravention of section 52 (2)
  55. 54 Small producer relief: discounted rates
  56. 55 Small producer alcoholic products
  57. 56 Small production premises
  58. 57 “Alcohol production amount” etc
  59. 58 Exclusions
  60. 59 Duty discount for small producer alcoholic products
  61. 60 Assessments where incorrectly low rate of alcohol duty applied
  62. 61 Mergers: general provisions
  63. 62 Modified “small production premises” test
  64. 63 Modified duty discount
  65. 64 Adjusted post-merger amount
  66. 65 Early termination of merger transition period
  67. 66 Subsequent mergers
  68. 67 Simultaneous mergers
  69. 68 Demergers
  70. 69 “Producer”, “production premises”, “group premises” etc
  71. 70 Connected persons
  72. 71 Index of defined expressions: Chapter 3
  73. 72 Exemption: production for personal consumption
  74. 73 Research and experiments
  75. 74 Spoilt alcoholic products
  76. 75 Alcoholic ingredients
  77. 76 Imported medical articles
  78. 77 Flavourings
  79. 78 Authorised use for certain purposes
  80. 79 Imported goods not for human consumption
  81. 80 Restrictions on use of certain articles
  82. 81 Further provision about remission and repayment
  83. 82 Approval requirement: producers
  84. 83 Supplementary provision about approvals
  85. 84 Exemption: production for personal consumption
  86. 85 Exemption: research and experiments
  87. 86 Mixing alcoholic products
  88. 87 Post-duty point dilution of alcoholic products
  89. 88 Alcoholic products regulations
  90. 89 Penalties and forfeiture
  91. 90 Denatured alcohol
  92. 91 Licence to manufacture and deal wholesale in denatured alcohol
  93. 92 Regulations relating to denatured alcohol
  94. 93 Penalties and forfeiture
  95. 94 Defaults in respect of denatured alcohol: possession of excess alcoholic products
  96. 95 Defaults in respect of denatured alcohol: supply and use of denatured alcohol
  97. 96 Inspection of premises etc
  98. 97 Prohibition of use of denatured alcohol etc as beverage or medicine
  99. 98 Definitions
  100. 99 Further provision relating to definitions
  101. 100 Approval to carry on controlled activity
  102. 101 The register of approved wholesalers
  103. 102 Regulations relating to approval, registration and controlled activities
  104. 103 Restriction on buying controlled alcoholic products wholesale
  105. 104 Offences
  106. 105 Penalties
  107. 106 Groups
  108. 107 Index of defined expressions: Chapter 7
  109. 108 Reviews and appeals
  110. 109 Forfeiture: supplementary provision
  111. 110 Removal of goods: application of section 95 of CEMA 1979
  112. 111 Drawback
  113. 112 Duty stamps
  114. 113 Repeals
  115. 114 Minor and consequential amendments
  116. 115 Temporary provision: wine
  117. 116 Temporary provision: cider
  118. 117 Interpretation of this Part
  119. 118 Regulations: supplementary and general
  120. 119 Regulations: procedure
  121. 120 Commencement
  122. 121 Introduction to multinational top-up tax
  123. 122 Chargeable persons
  124. 123 Charge to multinational top-up tax
  125. 124 How to calculate top-up amounts etc
  126. 125 Administration of multinational top-up tax
  127. 126 Meaning of “multinational group” and “ultimate parent”
  128. 127 Excluded entities
  129. 128 Responsible members
  130. 129 Qualifying multinational groups
  131. 130 Change in composition of multinational group
  132. 131 Whether de-merged groups meet the revenue threshold
  133. 132 Effective tax rate
  134. 133 Adjusted profits of a member of a multinational group
  135. 134 Underlying profits as determined for statements of ultimate parent
  136. 135 Underlying profits of permanent establishments
  137. 136 Underlying profits accounts
  138. 137 No amounts outside of profit and loss account to be included
  139. 137A Use of substituted values
  140. 138 Profits adjusted to be before tax
  141. 139 Profits adjusted to be profits before consolidation adjustments to eliminate intragroup transactions
  142. 140 Profits adjusted to be profits before certain purchase accounting adjustments
  143. 141 General exclusion of dividends
  144. 142 Excluded equity gain or loss
  145. 143 Included revaluation method gain or loss
  146. 144 Adjustments for asymmetric foreign currency income and losses
  147. 145 Exclusion of expenses for illegal payments, fines and penalties
  148. 146 Adjustment for changes in accounting policies and prior period errors
  149. 147 Accrued pension expense
  150. 147A Treatment of tax credits
  151. 148 Meaning of qualifying refundable tax credits
  152. 148A Transferable tax credits
  153. 148B Value of marketable transferable tax credits: originator
  154. 148C Value of marketable transferable tax credits: purchaser
  155. 149 Arm’s length requirement for certain transactions
  156. 150 Transactions between members of a multinational group: differences with accounting for tax
  157. 150A Instruments held intragroup: issuer’s accounting treatment to prevail
  158. 151 Adjustments for companies in distress
  159. 152 Adjustments where life assurance business carried on
  160. 153 Exclusion of certain insurance reserve movement expense
  161. 154 Exclusion of qualifying intra-group financing arrangement expenses
  162. 155 Qualifying tier one capital
  163. 156 Exclusion of international shipping profits
  164. 157 Core international shipping profits
  165. 158 Ancillary international shipping profits
  166. 159 Permanent establishment income and expense attribution
  167. 160 Attribution of losses between permanent establishment and main entity
  168. 161 Election to use realisation principle
  169. 162 Election to reflect deductions for stock-based compensation
  170. 163 Election to spread certain capital gains over five years
  171. 164 Election to exclude intra-group transactions
  172. 165 Election to have excluded equity gains and losses included
  173. 166 Election in relation to hedging currency risk in ownership interests
  174. 167 Underlying profits of hybrids
  175. 168 Underlying profits of transparent ... entities
  176. 169 Certain non tax resident entities to be treated as flow-through entities
  177. 170 Adjustments for ultimate parent that is a flow-through entity
  178. 171 Ultimate parent subject to qualifying dividend regime
  179. 172 Application of section 171 to members in the same territory as the ultimate parent
  180. 173 Covered taxes
  181. 174 Amount of covered tax balance
  182. 175 Amounts excluded from qualifying current tax expense
  183. 176 Amounts to be reflected in qualifying current tax expense
  184. 176A Meaning of “non-marketable transferable tax credits”
  185. 176B Value of non-marketable transferable tax credits: originator
  186. 176C Value of non-marketable transferable tax credits: purchaser
  187. 176D Tax credits etc allocated under tax equity partnerships
  188. 176E Flow-through tax benefits: proportional amortisation method
  189. 176F Flow-through tax benefits: subtraction method
  190. 176G Clawback of earlier qualifying flow-through tax benefits
  191. 177 Permanent establishments
  192. 178 Reallocation of tax expense
  193. 179 Controlled foreign company tax regimes
  194. 180 Blended CFC regimes
  195. 180A Section 180: further provision
  196. 181 Distributions from other members of a group
  197. 181A Cross-border allocation of current tax under cross-crediting regime
  198. 181B Cross-border allocation of deferred tax assets and liabilities
  199. 182 Total deferred tax adjustment amount
  200. 183 Qualifying foreign tax credits (substitute loss carry forward assets)
  201. 183A Alternative to section 183 where carry forward of credits not permitted
  202. 184 Recaptured deferred tax liabilities
  203. 185 Inclusion of existing deferred tax assets and liabilities on entry into regime
  204. 186 Deferred tax assets recorded at less than minimum rate
  205. 187 Election for losses to be treated as special loss deferred tax assets
  206. 188 Further provision about elections under section 187
  207. 189 Deemed distribution tax election
  208. 190 Deemed distribution tax amount
  209. 191 Reduction of recapture amount
  210. 192 Recalculation where member leaves the group
  211. 193 Calculation of top-up amounts
  212. 194 Total top-up amount for a territory
  213. 195 Substance based income exclusion
  214. 196 Eligible payroll costs
  215. 197 Eligible tangible asset amount
  216. 197A Operating leases
  217. 198 Eligible payroll costs and eligible tangible asset amount: permanent establishments
  218. 198ZA Eligible payroll costs: flow-through entities
  219. 198ZB Eligible tangible asset amount: flow-through entities
  220. 198ZC Eligible payroll costs and eligible tangible asset amount: flow-through ultimate parent
  221. 198A Power to make provision about treatment of payroll costs and assets
  222. 199 Election to treat certain top-up amounts as nil
  223. 200 Top-up amounts multiplied by inclusion ratio
  224. 201 Inclusion ratio
  225. 202 Covered taxes balance less than nil when members in a territory have a profit
  226. 203 Additional top-up amounts where covered taxes less than expected
  227. 204 Allocation of collective additional amount under section 203 to members
  228. 205 Election to carry forward and reduce collective additional amount
  229. 206 Additional top-up amounts where recalculations required
  230. 207 Allocation of collective additional amounts under section 206 to members
  231. 208 Member joining or leaving multinational group
  232. 209 When transfer of controlling interest treated as acquisition of assets and liabilities
  233. 210 Transfer of assets or liabilities from a member of a multinational group
  234. 211 Transfer of assets or liabilities to a member of a multinational group
  235. 212 Meaning of “qualifying reorganisation”
  236. 213 Investment entity tax transparency election
  237. 214 Taxable distribution method election
  238. 215 Undistributed income amount
  239. 216 Election where assets and liabilities adjusted to fair value for tax purposes
  240. 217 Post filing adjustments of covered taxes
  241. 218 Effect of rate changes to deferred tax expense
  242. 219 Adjustment where covered taxes not paid
  243. 220 Top-up amount of investment entity
  244. 221 Substance based income exclusion for investment entity
  245. 222 Investment entity effective tax rate
  246. 223 Adjustments
  247. 224 Additional top-up amounts of investment entities
  248. 225 Attribution of top-up amounts and additional top-up amounts to responsible member
  249. 226 Joint venture group
  250. 227 Application of Part to joint venture groups
  251. 228 Minority owned members
  252. 229 Multi-parent groups
  253. 229A Meaning of potentially undertaxed
  254. 229B Untaxed amounts
  255. 229C Allocation of untaxed amount to members
  256. 229D Amount allocated to the United Kingdom
  257. 229E Allocation to qualifying members
  258. 229F Election to make one member of a group liable for untaxed amounts
  259. 229G Number of employees
  260. 229H Value of tangible fixed assets
  261. 229I Joint ventures
  262. 229J References to responsible members
  263. 230 Meaning of terms and concepts used in this Part
  264. 231 Meaning of entity
  265. 232 Permanent establishments ...
  266. 232ZA Legal main entity distinct from main entity
  267. 232A Partnerships
  268. 233 Treatment of protected cell companies
  269. 234 Governmental, international and non-profit entities
  270. 235 Pension funds and pension services entities
  271. 236 Investment funds and investment entities
  272. 237 Intermediate and partially-owned parent members
  273. 238 Tax transparency of entities
  274. 239 Location of entities
  275. 240 Location of flow-through entities and permanent establishments
  276. 241 Pillar Two territories
  277. 242 Ownership interests and controlling interests
  278. 243 Calculating percentage ownership interests of a specific entity or individual
  279. 244 Calculating percentage ownership interests of a class
  280. 245 Calculating percentage ownership interests: excluded entities
  281. 246 Calculating percentage direct and indirect ownership interests
  282. 247 Timing of transfers of interests
  283. 248 Exclusion of indirect interests held through ultimate parent
  284. 249 Consolidated financial statements
  285. 250 Acceptable accounting standards
  286. 251 Accounting periods
  287. 251A Meaning of country-by-country report
  288. 252 Application to sovereign wealth funds
  289. 253 Disqualified and qualified refundable imputation taxes
  290. 254 Use of currency
  291. 255 Pillar Two rules
  292. 256 Qualifying domestic top-up tax
  293. 256A Qualifying domestic top-up tax treated as not accruing where contested etc
  294. 257 Qualifying undertaxed profits tax
  295. 258 Meaning of “connected”
  296. 259 Other definitions
  297. 260 Transitional provision and safe harbours
  298. 261 Index of defined expressions
  299. 262 Power to amend to ensure consistency with Pillar Two
  300. 263 Regulations
  301. 264 Multinational top-up tax to apply from 31 December 2023
  302. 265 Introduction to domestic top-up tax
  303. 266 Qualifying entities
  304. 267 DTT excluded entities
  305. 267A Securitisation companies in a group treated as not consolidated
  306. 268 Permanent establishments
  307. 268A Partnerships
  308. 269 Chargeable persons
  309. 270 Amount charged
  310. 271 Election to make one member of a group liable for amounts charged
  311. 272 Determining top-up amounts of entity that is a member of a group
  312. 272A Treatment of covered bond vehicles
  313. 273 Determining top-up amounts of entity that is not a member of a group
  314. 273A References to Pillar Two rules
  315. 273B Effect of becoming subject to Pillar Two rules
  316. 273C Dividends from protected cell companies
  317. 274 Application of section 262
  318. 275 Application of Schedule 14
  319. 276 Application of transitional provision
  320. 277 Index of defined expressions
  321. 278 Domestic top-up tax to apply from 31 December 2023
  322. 279 Charge on exceptional generation receipts
  323. 280 Key concepts (generating undertaking etc)
  324. 281 Benchmark amount
  325. 282 Attribution of generation
  326. 283 Generation receipts
  327. 284 Allowable costs
  328. 285 Exceptional generation fuel costs
  329. 286 Exceptional revenue sharing costs
  330. 287 Groups
  331. 288 Lead member of a group and its qualifying periods
  332. 289 Liability of members of groups
  333. 290 Election for members with significant minority shareholding to pay levy
  334. 291 Qualifying partnerships
  335. 292 Qualifying joint ventures
  336. 293 Non-chargeable amounts of joint venture to be attributed to participants
  337. 294 Generation acquired and supplied by JV participants
  338. 295 Arrangements that reflect receipts (JV participants)
  339. 296 Generation acquired and supplied by significant minority shareholders
  340. 297 Arrangements that reflect receipts (significant minority shareholders)
  341. 298 Surrender of shortfalls
  342. 299 Amount that may be surrendered and use of that amount
  343. 300 Election to treat certain companies as transparent
  344. 301 Effect of company being transparent
  345. 302 General application of corporation tax administration
  346. 303 Company tax returns
  347. 304 Requirement to provide information about payments
  348. 305 Claims to shortfall amounts
  349. 306 Application of Part 5A of TMA 1970 and Instalment Payments Regulations
  350. 307 Application of Part 5 of CTA 2010 for the purposes of determining interests
  351. 308 Anti-avoidance
  352. 309 Information sharing
  353. 310 Interaction of electricity generator levy with corporation tax
  354. 311 Regulations under this Part
  355. 311A Meaning of “qualifying new generating plant”
  356. 312 Minor definitions relating to electricity market
  357. 313 Definitions in this Part
  358. 314 Transactions funded with the assistance of a public subsidy
  359. 315 Deposit schemes
  360. 316 Dumping, subsidisation and safeguarding remedies
  361. 317 Rulings as to method of valuation of goods
  362. 318 Discharging goods from free-circulation procedure subject to guarantee
  363. 319 Excepted machines etc
  364. 320 Rates of tobacco products duty
  365. 321 Flavour concentrates
  366. 322 New bands and rates
  367. 323 Northern Ireland rates
  368. 324 Rates of vehicle excise duty
  369. 325 Reform of HGV road user levy
  370. 326 End of exempt period for HGV road user levy
  371. 327 Rates of landfill tax
  372. 328 Rates of climate change levy
  373. 329 Rate of plastic packaging tax
  374. 330 Aggregates levy: exemptions and exploitation
  375. 331 Designation of sites
  376. 332 Sunset date for reliefs
  377. 333 Right to repayment of income tax to be inalienable
  378. 334 Late payment interest on value added tax
  379. 335 Penalties for failure to pay value added tax
  380. 336 VAT credits: repayment interest due where evidence not provided
  381. 337 Insurance premium tax: power to make regulations about notifications
  382. 338 Penalties for failure to make payments of plastic packaging tax on time
  383. 339 Approval of aerodromes
  384. 340 Approved aerodromes: minor and consequential amendments
  385. 341 Temporary approvals etc
  386. 342 Licensing authorities: requirements to give or obtain tax information
  387. 343 Section 342: consequential amendments
  388. 344 Definition of “charity” restricted to UK charities
  389. 345 Definition of “community amateur sports club” restricted to UK clubs
  390. 346 Exemptions from tax
  391. 347 Abolition of the Office of Tax Simplification
  392. 348 Pension benefits and inheritance tax
  393. 349 International arrangements for exchanging information
  394. 350 Payment of unclaimed money in court into the Consolidated Fund
  395. 351 Financial sanctions regulations: prohibition on certain payments by HMRC
  396. 352 Communications data
  397. 353 Interpretation
  398. 354 Short title
  399. Schedule 1 Relief for research and development
  400. Schedule 2 Estates in administration and trusts
  401. Schedule 3 Corporate interest restriction etc.
  402. Schedule 4 Investment vehicles
  403. Schedule 5 Records relating to transfer pricing
  404. Schedule 6 Categories of alcoholic products: interpretation
  405. Schedule 7 Rates of alcohol duty
  406. Schedule 8 Qualifying draught products: reduced rates
  407. Schedule 9 Small producer alcoholic products: duty discount
  408. Schedule 10 Penalties for contraventions of alcohol wholesaling provisions
  409. Schedule 11 Alcohol duty: reviews and appeals
  410. Schedule 13 Alcohol duty: minor and consequential amendments
  411. Schedule 14 Administration of multinational top-up tax
  412. Schedule 15 Multinational top-up tax: elections
  413. Schedule 16 Multinational top-up tax: transitional provision
  414. Schedule 16A Multinational top-up tax: safe harbours
  415. Schedule 17 Index of expressions defined or explained in Parts 3 and 4
  416. Schedule 18 Administration of domestic top-up tax
  417. Schedule 19 Dumping, subsidisation and safeguarding remedies
  418. Schedule 20 Bilateral safeguarding remedies
  419. Schedule 21 Soft drinks industry levy: flavour concentrates
  420. Schedule 22 Reforms of HGV road user levy
  421. Schedule 23 Freeports and investment zones: consequential amendments
  422. Schedule 24 Homes for Ukraine Sponsorship Scheme: exemptions from tax

Proposed changes to this act

No one has proposed a change to this act yet.

422 provisions

80 Restrictions on use of certain articles

(1) If a person makes unauthorised use of an article to which this section applies— (a) that conduct attracts a penalty under section 9 of FA 1994, and (b) the article is liable to forfeiture. (2) This section applies to— (a) an article containing spirits which are exempt under section 76 from the charge to alcohol duty; (b) an article in respect of which spirits were used in the manufacture or preparation, where remission of alcohol duty on the spirits was obtained under section 78. (3) A person makes “unauthorised use” of an article for the purposes of this section if— (a) the person uses the article other than for medical or scientific purposes, and (b) the person has not complied with the requirements under subsection (4). (4) The requirements are that— (a) the person must obtain the written consent of the Commissioners to the use of the article other than for medical or scientific purposes, and (b) the person must pay to the Commissioners an amount equal to the duty shortfall. (5) In this section, the “duty shortfall” means— (a) the difference between the duty charged on the spirits contained in, or used in the manufacture or preparation of, the article, and (b) the duty which would have been chargeable had the article not been exempt under section 76 or the duty had not been remitted under section 78. (6) The Commissioners may make regulations for the purpose of enforcing this section. (7) Regulations under subsection (6) may, in particular, require a person carrying on any trade in which spirits or articles containing, manufactured or prepared with spirits are, in the opinion of the Commissioners, likely to be or have been used— (a) to give and verify particulars of the materials which the person is using or has used, or the articles the person has sold; (b) to produce any documents (of whatever nature) relating to such materials or articles. (8) If a person contravenes or fails to comply with any regulation made under subsection (6), the contravention or failure attracts a penalty under section 9 of FA 1994. (9) In this section, a reference to an article includes a reference to any part of that article.

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81 Further provision about remission and repayment

(1) The remission or repayment of alcohol duty under any provision of this Chapter is subject to the conditions (if any)— (a) specified by the Commissioners in a notice published by them; (b) specified by or under regulations made by them; (c) imposed by them in a particular case. (2) If a person fails to comply with a condition in respect of the remission or repayment, the failure attracts a penalty under section 9 of FA 1994.

Propose a change

82 Approval requirement: producers

(1) A person may not produce alcoholic products on any premises unless— (a) the production on those premises is in accordance with an approval given under this section by the Commissioners to the person, or (b) the person is exempt from the approval requirement under section 84 or 85. (2) The Commissioners may approve a person under this section only if they are satisfied that the person is a fit and proper person to produce alcoholic products. (3) An approval under this section may authorise the approved person to hold alcoholic products (including alcoholic products produced by another person in, or imported into, the United Kingdom) on certain premises without payment of alcohol duty. (4) A person may not carry out other activities on those premises in relation to those alcoholic products, without payment of alcohol duty, except in accordance with an approval under this section. (5) The reference in subsection (4) to “activities” includes, in particular, packaging and processing, or carrying out other operations on or in relation to, the alcoholic products.

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83 Supplementary provision about approvals

(1) An approval under section 82 may be given to a person— (a) in respect of— (i) more than one category of alcoholic product; (ii) more than one set of premises; (b) for such period as the Commissioners think fit. (2) An approval is subject to the conditions or restrictions (if any)— (a) specified by the Commissioners in a notice published by them; (b) specified by or under regulations made by them; (c) imposed by them in a particular case. (3) The Commissioners may, at any time, revoke or vary the terms of an approval. (4) An application for approval must be in the form and manner, and contain the information, specified by or under regulations made by the Commissioners.

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84 Exemption: production for personal consumption

For the purposes of section 82(1)(b), a person is exempt from the approval requirement if— (a) the person produces alcoholic products only for the person’s own domestic use, and (b) the alcoholic products are not spirits.

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85 Exemption: research and experiments

For the purposes of section 82(1)(b), a person is exempt from the approval requirement if— (a) the person produces alcoholic products only for the purposes of research into, or experiments in, the production of alcoholic products, and (b) the person complies with, and the alcoholic products are produced in accordance with, the requirements specified— (i) by the Commissioners in a notice published by them, or (ii) by or under regulations made by the Commissioners.

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86 Mixing alcoholic products

(1) A person may not mix two or more alcoholic products unless one of the following exemptions applies. (2) The first exemption applies if the products are mixed— (a) either— (i) in accordance with an approval under section 82, or (ii) in an excise warehouse, and (b) the mixing takes place before the excise duty point. (3) The second exemption applies if all of the alcoholic products being mixed— (a) fall within the same paragraph of section 44(1), and (b) are of the same alcoholic strength. (4) The third exemption applies if— (a) the alcohol duty on each of the alcoholic products being mixed has been paid, and (b) that amount is equal to or exceeds the amount of alcohol duty that would (if the mixing had taken place before the excise duty point) have been chargeable on the resulting mix. (5) The fourth exemption applies if— (a) the alcohol duty on each of the alcoholic products being mixed has been paid, (b) the resulting mix is intended for consumption on the premises on which the mixing takes place, and (c) the method of mixing is of a description specified in a notice published by the Commissioners.

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87 Post-duty point dilution of alcoholic products

(1) A person may not mix water or any other substance with alcoholic products on which alcohol duty is chargeable if— (a) the mixing takes places after the excise duty point in relation to that charge, (b) the resulting product is intended for sale, and (c) if the mixing had taken place immediately before the excise duty point, the amount of alcohol duty would have been greater than the amount actually payable. (2) This section has effect, despite section 8 of the Isle of Man Act 1979, as if a removal of relevant alcoholic products to the United Kingdom from the Isle of Man constituted their importation into the United Kingdom (and references to the charge to alcohol duty and to the excise duty point are to be read accordingly).

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88 Alcoholic products regulations

(1) The Commissioners may by regulations (“alcoholic products regulations”) make provision— (a) regulating the production, packaging, keeping and storage of alcoholic products produced in, or imported into, the United Kingdom; (b) for determining when the production of any alcoholic product begins and when it is completed; (c) for securing and collecting alcohol duty; (d) for determining alcohol duty, the rate and the method of charging the duty; (e) for charging alcohol duty, in specified circumstances, by reference to an alcoholic strength which any alcoholic product might reasonably be expected to have, or the rate of duty in force, at a time other than that at which the alcoholic product becomes chargeable; (f) for determining the alcohol production amount in relation to a set of premises (for the purposes of Chapter 3 of this Part), in specified circumstances, by reference to an alcoholic strength which any alcoholic product might reasonably be expected to have at a time other than that at which the alcoholic product is produced; (g) for full or partial relief from alcohol duty in specified circumstances (and whether or not subject to conditions); (h) regulating or prohibiting the addition of substances to, the mixing of, or the carrying out of other operations on or in relation to, any alcoholic product; (i) regulating the approval of persons under this Chapter, including the variation or revocation of the approval or of any condition or restriction to which it is subject; (j) permitting, in specified circumstances, the removal of alcoholic products from certain premises without payment of duty (whether or not subject to conditions); (k) make provision in respect of alcoholic products permitted to be removed from premises without payment of duty or on which alcohol duty has been remitted; (l) regulating the transportation of alcoholic products; (m) requiring the production of certificates as to matters relating to alcoholic products imported into the United Kingdom, and the production and producer of those products, as evidence that conditions for charging the duty at a particular rate are satisfied. (2) Alcoholic products regulations may, in particular, include provision— (a) requiring the making of returns; (b) for notifications and other communications with the Commissioners to be made electronically; (c) requiring persons to keep, and make available for inspection, specified records relating to alcoholic products; (d) for the imposition under the regulations of requirements as to documents to accompany, or be provided with, alcohol products at any time during a specified period or in specified circumstances, and requiring production of those documents; (e) conferring powers on an officer of Revenue and Customs to inspect, copy or remove for a reasonable period records or documents relating to alcoholic products; (f) for assessing an amount as alcohol duty due from a person in specified circumstances; (g) for the imposition under the regulations of conditions and restrictions (which may include a requirement to give a guarantee or other security). (3) The reference in subsection (1)(k) to alcoholic products permitted to be removed from premises without payment of duty is treated as including a reference to alcoholic products that are— (a) treated for the purposes of alcohol duty, by provision made (or having effect as if made) under section 12 of the Customs and Excise Duties (General Reliefs) Act 1979 (supply of duty-free goods to His Majesty’s ships), as exported, (b) supplied to persons on whom relief from payment of alcohol duty is conferred by provision made under section 13A of that Act (reliefs from duties and taxes for persons enjoying certain immunities and privileges), or (c) supplied for use on a ship, aircraft or railway vehicle as stores, in accordance with provision made under section 60A of CEMA 1979 (power to make regulations about stores). (4) In this section, “specified” means specified by or under alcoholic products regulations.

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89 Penalties and forfeiture

(1) This section applies if a person contravenes or fails to comply with— (a) section 82, (b) section 86(1), (c) section 87(1), or (d) any provision made by or under alcoholic products regulations. (2) The person’s conduct attracts a penalty under section 9 of FA 1994. (3) Any alcoholic products, articles (including packaging or equipment) or substances in the person's possession, used (or which may be used) for or in connection with an action to which the contravention or failure relates, are liable to forfeiture.

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90 Denatured alcohol

(1) Alcohol duty is not charged on denatured alcohol. (2) “Denatured alcohol” means an alcoholic product which has been mixed with a substance, and in a manner, specified by or under regulations made by the Commissioners (and references, however expressed, to “denaturing” alcoholic products are to be construed accordingly). (3) Provision made under subsection (2) may include provision specifying a substance, or a manner of mixing, by reference to particular circumstances or other factors, or to the approval or opinion of specified persons. (4) Where— (a) alcohol duty is chargeable on alcoholic products, and (b) the Commissioners are satisfied that the alcoholic products are to be converted into denatured alcohol before the duty is required to be paid, the duty is to be remitted.

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91 Licence to manufacture and deal wholesale in denatured alcohol

(1) A person may not denature any alcoholic products, or deal wholesale in denatured alcohol, unless the person holds an excise licence as a denaturer under this section. (2) For the purposes of this section, a person deals wholesale in denatured alcohol if the person sells, at any one time to any one person— (a) a quantity of at least 20 litres of denatured alcohol, or (b) a smaller quantity, specified by or under regulations made by the Commissioners, of denatured alcohol. (3) The Commissioners may, at any time, revoke or suspend an excise licence under this section. (4) An application for an excise licence as a denaturer must be in the form and manner, and contain the information, specified by the Commissioners in a notice published by them.

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92 Regulations relating to denatured alcohol

(1) The Commissioners may, with a view to the protection of the revenue, by regulations make provision— (a) regulating the denaturing of alcoholic products; (b) regulating the supply, storage, removal, sale, delivery, receipt, use, export or shipment as stores of denatured alcohol; (c) permitting alcoholic products to be denatured in a warehouse; (d) permitting dealing wholesale (within the meaning of section 91) in denatured alcohol of a specified description, in specified circumstances, without an excise licence; (e) regulating the import, receipt, removal, storage and use of alcoholic products for denaturing; (f) regulating the storage and removal of substances to be used in denaturing alcoholic products; (g) about the manner in which account is to be kept of stocks of denatured alcohol in the possession of persons licensed as denaturers under section 91 and of retailers of denatured alcohol. (2) Regulations under this section may, in particular, include provision— (a) for applications and other communications with the Commissioners to be made electronically; (b) requiring persons licensed as denaturers under section 91 and retailers of denatured alcohol to keep, and make available for inspection, specified records relating to denaturing; (c) conferring powers on an officer of Revenue and Customs to inspect, copy or remove for a reasonable period those records; (d) for the imposition under the regulations of conditions and restrictions (which may include a requirement to give a guarantee or other security). (3) In this section, “specified” means specified by or under regulations under this section.

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93 Penalties and forfeiture

(1) This section applies if a person— (a) fails to comply with section 91(1) (denaturing alcoholic products, or dealing wholesale in denatured alcohol, otherwise than in accordance with an excise licence), or (b) contravenes or fails to comply with any provision made by or under regulations under section 92. (2) Conduct mentioned in subsection (1)(a) or (b) attracts a penalty under section 9 of FA 1994. (3) Any alcoholic product or denatured alcohol, article (including packaging or equipment) or substance in the person’s possession, used (or which may be used) for or in connection with an action to which the contravention or failure relates is liable to forfeiture.

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94 Defaults in respect of denatured alcohol: possession of excess alcoholic products

(1) This section applies if, in relation to a person who holds an excise licence under section 91 (the “denaturer”), at a time when an account is taken of the quantity of denatured alcohol in the denaturer’s possession— (a) there is a difference between the actual amount and the proper amount, and (b) either— (i) where the actual amount exceeds the proper amount, the amount of the excess is more than 1% of the permitted amount, or (ii) where the proper amount exceeds the actual amount, the amount of the excess is more than 2% of the permitted amount. (2) For the purposes of subsection (1)— (a) the “actual amount” is the quantity of alcoholic products of any description in the denatured alcohol in the denaturer’s possession; (b) the “proper amount” is the quantity of alcoholic products of the same description which, according to any accounts that are required to be kept by or under any regulations under section 92, ought to be in the denatured alcohol in the denaturer’s possession. (3) Where there is a difference between the actual amount and the proper amount, in relation to alcoholic products of a particular description, the “permitted amount” is the aggregate of— (a) the quantity of alcoholic products of that description when an account was last taken, and (b) the quantity of alcoholic products of that description that have since been lawfully added to the denaturer’s stock. (4) In a case within subsection (1)(b)(i), the relevant amount of any alcoholic products of the description to which the difference relates in the denaturer’s possession is liable to forfeiture. (5) The “relevant amount” for the purposes of subsection (4) is the amount corresponding to the amount of the excess mentioned in subsection (1)(b)(i), or such smaller amount as the Commissioners consider appropriate. (6) In a case within subsection (1)(b)(ii), the denaturer must, on demand by the Commissioners, pay alcohol duty— (a) on the amount of alcoholic products (of the same description) equal to the amount of the difference, or (b) if the Commissioners specify a smaller amount of alcoholic products (of the same description) in the demand, on that amount. (7) A demand made for the purposes of this section is to be combined, as if there had been a default of a kind mentioned in section 12 of FA 1994 (assessments to excise duty) with an assessment and notification under that section of the amount of duty due in consequence of the demand.

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95 Defaults in respect of denatured alcohol: supply and use of denatured alcohol

(1) This section applies if a person, in contravention of regulations under section 92, uses or supplies denatured alcohol containing alcoholic products of any description. (2) The person must, on demand by the Commissioners, pay alcohol duty— (a) on the amount of alcoholic products contained, at the time of supply or use, in the denatured alcohol, or (b) if the Commissioners specify a smaller amount of alcoholic products (of the same description) in the demand, on that amount. (3) For the purposes of this section, a supply of denatured alcohol to a person who— (a) by reason of regulations under section 92 is prohibited from receiving it unless authorised to do so by or under the regulations, but (b) is not so authorised, is treated as being a supply in contravention of those regulations. (4) A demand made for the purposes of this section is to be combined, as if there had been a default of a kind mentioned in section 12 of FA 1994 (assessments to excise duty) with an assessment and notification under that section of the amount of duty due in consequence of the demand.

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96 Inspection of premises etc

(1) An officer of Revenue and Customs may, at any reasonable time— (a) enter and inspect the premises of a person authorised by regulations under section 92 to receive denatured alcohol, (b) inspect and examine any denatured alcohol on the premises, and (c) take samples of any denatured alcohol or of any goods containing denatured alcohol (paying a reasonable price for each sample). (2) Subsection (1) does not affect any other power conferred by the customs and excise Acts.

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97 Prohibition of use of denatured alcohol etc as beverage or medicine

(1) It is an offence for a person— (a) to prepare, or attempt to prepare, denatured alcohol for use as a beverage or as a mixture with a beverage; (b) to sell denatured alcohol (whether or not prepared as described in paragraph (a)) as a beverage or mixed with a beverage; (c) to use any denatured alcohol or a derivative of it in the preparation of any article capable of being used as a beverage; (d) to sell or possess any article capable of being used as described in paragraph (c), in the preparation of which denatured alcohol or any derivative of it has been used; (e) except as permitted by the Commissioners and in accordance with any conditions imposed by them— (i) to purify, or attempt to purify, denatured alcohol, or (ii) after denatured alcohol has once been used, to attempt to recover the spirit or alcohol contained in it by distillation, condensation or in any other manner. (2) Subsection (1) is subject to subsections (5) and (6). (3) A person who commits an offence under this section is liable on summary conviction to a penalty not exceeding level 3 on the standard scale. (4) Any denatured alcohol, or any article (including packaging or equipment), in respect of which an offence under this section is committed is liable to forfeiture. (5) No offence is committed under this section where a person uses denatured alcohol or any derivative of it— (a) in the preparation for use as a medical article (as defined in section 76), (b) in the making of anything sold or supplied in accordance with regulations made by the Commissioners under section 92, or (c) in art or manufacture. (6) No offence is committed under this section where a person sells or possesses anything that— (a) is permitted to be prepared or made, by reference to paragraph (a) or (b) of subsection (5), for a use described in that paragraph, and (b) is sold or possessed for that use. (7) In this section, references to denatured alcohol include references to— (a) methanol, and (b) any mixture containing denatured alcohol or methanol.

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98 Definitions

(1) This section defines certain expressions used in this Chapter. (2) A sale is of “controlled alcoholic products” if— (a) it is a sale of alcoholic products on which alcohol duty is charged under this Part at a rate greater than nil, and (b) the excise duty point for the alcoholic products falls at or before the time of the sale. (3) Controlled alcoholic products are sold “wholesale” if— (a) the sale is of any quantity of the alcoholic products, (b) the seller is carrying on a trade or business and the sale is made in the course of that trade or business, (c) the sale is to a buyer carrying on a trade or business, for sale or supply in the course of that trade or business, and (d) the sale is not an incidental sale, a group sale or an excluded sale, and a reference to buying controlled alcoholic products wholesale is to be read accordingly. (4) A sale is an “incidental sale” if— (a) the seller makes authorised retail sales of alcoholic products of any description, and (b) the sale is incidental to those sales. (5) A sale is an “authorised retail sale” if it is made by retail under and in accordance with a licence or other authorisation under an enactment regulating the sale and supply of alcohol. (6) A sale is a “group sale” if the seller and the buyer are both bodies corporate which are members of the same group (see section 106). (7) A sale is an “excluded sale” if it is of a description specified by or under regulations made by the Commissioners. (8) “Controlled activity” means— (a) selling controlled alcoholic products wholesale, (b) offering or exposing controlled alcoholic products for sale in circumstances in which the sale (if made) would be a wholesale sale, or (c) arranging in the course of a trade or business for controlled alcoholic products to be sold wholesale, or offered or exposed for sale in circumstances in which the sale (if made) would be a wholesale sale. (9) “UK person” means a person who is UK-established for the purposes of value added tax (see paragraph 1(10) of Schedule 1 to VATA 1994). (10) “Enactment” includes an enactment contained in— (a) an Act of the Scottish Parliament; (b) an Act or Measure of Senedd Cymru; (c) Northern Ireland legislation. (11) References in this Chapter to the “alcohol wholesaling provisions” are references to this section and sections 99 to 106, and Schedule 10.

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99 Further provision relating to definitions

(1) The Commissioners may by regulations make provision as to the cases in which sales are, or are not, to be treated for the purposes of this Chapter as— (a) wholesale sales, (b) sales of controlled alcoholic products, (c) incidental sales, (d) authorised retail sales, or (e) group sales. (2) The Commissioners may by regulations make provision as to the cases in which a person is, or is not, to be treated for the purposes of this Chapter as carrying on a controlled activity by virtue of section 98(8)(b) or (c).

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100 Approval to carry on controlled activity

(1) A UK person may not carry on a controlled activity otherwise than in accordance with an approval given by the Commissioners under this section. (2) The Commissioners may approve a person under this section to carry on a controlled activity only if they are satisfied that the person is a fit and proper person to carry on the activity. (3) The Commissioners may approve a person under this section to carry on a controlled activity for such period as they think fit. (4) An approval may be given subject to the conditions or restrictions (if any)— (a) specified by the Commissioners in a notice published by them; (b) specified by or under regulations made by them; (c) imposed by them in a particular case. (5) The conditions or restrictions may include conditions or restrictions requiring the controlled activity to be carried on only at or from premises specified or approved by the Commissioners. (6) The Commissioners may at any time revoke or vary the terms of an approval under this section. (7) In this Chapter “approved wholesaler” means a person approved under this section to carry on a controlled activity.

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101 The register of approved wholesalers

(1) The Commissioners must maintain a register of approved wholesalers. (2) The register is to contain such information relating to approved wholesalers as the Commissioners consider appropriate. (3) The Commissioners may make publicly available such information contained in the register as they consider necessary to enable those who deal with a person who carries on a controlled activity to determine whether the person in question is an approved wholesaler for the purposes of that activity. (4) The information may be made available by such means as the Commissioners consider appropriate.

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102 Regulations relating to approval, registration and controlled activities

(1) The Commissioners may by regulations make provision— (a) regulating the approval and registration of persons under the alcohol wholesaling provisions, (b) regulating the variation or revocation of any such approval or registration or of any condition or restriction to which such an approval or registration is subject, (c) about the register maintained under section 101, (d) regulating the carrying on of controlled activities, and (e) imposing obligations on approved wholesalers. (2) The regulations may, in particular, make provision— (a) requiring applications, and other communications with the Commissioners, to be made electronically; (b) as to the procedure for the approval and registration of bodies corporate which are members of the same group and for members of such a group to be jointly and severally liable for any penalties imposed under— (i) the regulations, or (ii) Schedule 10; (c) requiring approved wholesalers to keep and make available for inspection such records relating to controlled activities as may be specified by or under the regulations; (d) conferring powers on an officer of Revenue and Customs to inspect, copy or remove for a reasonable period those records; (e) imposing a penalty of an amount specified by the regulations (which must not exceed £1,000) for a contravention of— (i) the regulations, or (ii) any condition or restriction imposed under the alcohol wholesaling provisions; (f) for the assessment and recovery of such a penalty; (g) for alcoholic products (whether or not charged with any duty and whether or not that duty has been paid) to be subject to forfeiture for a contravention of— (i) the alcohol wholesaling provisions or the regulations made under this section, or (ii) any condition or restriction imposed under the alcohol wholesaling provisions.

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103 Restriction on buying controlled alcoholic products wholesale

(1) A person may not— (a) buy controlled alcoholic products wholesale from a UK person, unless the person is an approved wholesaler in relation to the sale, or (b) buy relevant alcoholic products from an Isle of Man person, unless the person is an Isle of Man approved wholesaler. (2) In this section and in section 104(4)— (a) “Isle of Man person” means a person who is established in the Isle of Man for the purposes of value added tax under any provision of the law in force in the Isle of Man corresponding to paragraph 1(10) of Schedule 1 to VATA 1994; (b) “Isle of Man approved wholesaler” means an Isle of Man person who is approved under any provision of the law in force in the Isle of Man corresponding to section 100; (c) “relevant alcoholic products” means alcoholic products which, if they had been produced in the United Kingdom, would have been charged with alcohol duty under this Part at a rate greater than nil.

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104 Offences

(1) A person who contravenes section 100(1) by selling controlled alcoholic products wholesale commits an offence if the person knows or has reasonable grounds to suspect that— (a) the buyer is carrying on a trade or business, and (b) the alcoholic products are for sale or supply in the course of that trade or business. (2) A person who contravenes section 100(1) by offering or exposing controlled alcoholic products for sale in circumstances in which the sale (if made) would be a wholesale sale commits an offence if the person intends to make a wholesale sale of the alcoholic products. (3) A person who contravenes section 100(1) by arranging in the course of a trade or business for controlled alcoholic products to be sold wholesale, or offered or exposed for sale in circumstances in which the sale (if made) would be a wholesale sale, commits an offence if the person intends to arrange for the alcoholic products to be sold wholesale. (4) A person who contravenes section 103 commits an offence if the person knows or has reasonable grounds to suspect that— (a) the UK person from whom the controlled alcoholic products are bought is not an approved wholesaler in relation to the sale, or (b) the Isle of Man person from whom the relevant alcoholic products are bought is not an Isle of Man approved wholesaler in relation to the sale. (5) A person who commits an offence under this section is liable on summary conviction— (a) in England and Wales to— (i) imprisonment for a term not exceeding the general limit in a magistrates’ court, (ii) a fine, or (iii) both, (b) in Scotland to— (i) imprisonment for a term not exceeding 12 months, (ii) a fine not exceeding the statutory maximum, or (iii) both, and (c) in Northern Ireland to— (i) imprisonment for a term not exceeding 6 months, (ii) a fine not exceeding the statutory maximum, or (iii) both. (6) A person who commits an offence under this section is liable on conviction on indictment to— (a) imprisonment for a period not exceeding 7 years, (b) a fine, or (c) both.

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105 Penalties

Schedule 10 contains provision about penalties for contraventions of the alcohol wholesaling provisions.

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106 Groups

(1) Two or more bodies corporate are members of a group for the purposes of the alcohol wholesaling provisions if each is established or has a fixed establishment in the United Kingdom and— (a) one of them controls each of the others, (b) one person (whether a body corporate or an individual) controls all of them, or (c) two or more individuals carrying on a business in partnership control all of them. (2) For the purposes of this section, a body corporate is to be taken to control another body corporate if— (a) it is empowered by or under an enactment to control that body’s activities, or (b) it is that body’s holding company within the meaning of section 1159 of, and Schedule 6 to, the Companies Act 2006. (3) For the purposes of this section— (a) an individual or individuals are to be taken to control a body corporate if the individual or individuals (were the individual or individuals a company) would be that body’s holding company within the meaning of section 1159 of, and Schedule 6 to, the Companies Act 2006 (meaning of “subsidiary” etc), and (b) a body corporate is established or has a fixed establishment in the United Kingdom if it is so established or has such an establishment for the purposes of value added tax.

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107 Index of defined expressions: Chapter 7

The following Table sets out expressions defined or explained for the purposes of this Chapter— Expression | Provision alcohol wholesaling provisions | section 98(11) approved wholesaler | section 100(7) authorised retail sale | section 98(5) controlled activity | section 98(8) enactment | section 98(10) group (in relation to bodies corporate) | section 106(1) group sale | section 98(6) incidental sale | section 98(4) Isle of Man person and Isle of Man approved wholesaler | section 103(2)(a) and (b) relevant alcoholic products (for the purposes of sections 103 and 104(4)) | section 103(2)(c) sale of controlled alcoholic products | section 98(2) UK person | section 98(9) wholesale | section 98(3)

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108 Reviews and appeals

Schedule 11 makes provision about reviews and appeals.

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109 Forfeiture: supplementary provision

(1) An officer of Revenue and Customs may destroy, break up or spill anything seized as liable to forfeiture under any provision of this Part. (2) Subsection (1) does not affect any other provision of, or power conferred by, the customs and excise Acts.

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110 Removal of goods: application of section 95 of CEMA 1979

(1) Section 95 of CEMA 1979 (deficiency in goods occurring in course of removal from warehouse without payment of duty) is amended as follows. (2) After subsection (1) insert— (1A) Subsection (1) applies in relation to goods that are alcoholic products as if references, in that subsection and in section 94, to a “warehouse” included references to premises in respect of which a person is authorised, under section 82 of the Finance (No. 2) Act 2023, to hold alcoholic products without payment of duty (and references to “warehoused” are to be construed accordingly). (1B) Subsection (1) applies (as modified by subsection (1A)) in relation to alcoholic products on which alcohol duty has been remitted as it applies to alcoholic products lawfully permitted to be taken from premises as mentioned in that subsection. (3) In subsection (2), in the words before paragraph (a), after “subsection (1)” insert “, (1A) or (1B)”.

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111 Drawback

(1) This section applies where drawback of alcohol duty is allowable, under regulations made under section 60A of CEMA 1979 (power to make regulations about stores) or section 2 of F(No. 2)A 1992 (power to provide for drawback of excise duty), to a person who produces alcoholic products in accordance with an approval under section 82 (“the producer”). (2) Subject to the conditions (if any) that the Commissioners impose, drawback of alcohol duty may be set against any amount to which the producer is chargeable in respect of alcohol duty (and any reference in CEMA 1979 to drawback payable is to be construed in accordance with this section).

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112 Duty stamps

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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113 Repeals

(1) The Alcoholic Liquor Duties Act 1979 is repealed. (2) The following sections of FA 1995 are repealed— (a) section 4 (alcoholic ingredients relief); (b) section 5 (denatured alcohol).

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114 Minor and consequential amendments

Schedule 13 makes minor and consequential amendments relating to this Part.

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115 Temporary provision: wine

(1) Wine of an alcoholic strength of at least 11.5% but not exceeding 14.5% is treated, for the purposes of the charge to alcohol duty, as if it were of an alcoholic strength of 12.5%. (2) This section expires at the end of the period of 18 months beginning with the day on which section 48 (rates) comes into force.

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116 Temporary provision: cider

Alcohol duty is not charged on cider which is produced— (a) at a time before section 82 (approvals) comes into force, and (b) by a person who, at that time, is exempt from the requirement to register under section 62 of ALDA 1979 by reason of an order made (or having effect as if made) under subsection (3) of that section.

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117 Interpretation of this Part

(1) The following Table sets out expressions defined or explained in this Part for general purposes— Expression | Provision alcohol | section 45(5) alcoholic products | section 44(1) and (2) alcoholic strength | section 45(1) beer | Schedule 6, paragraph 3 cider | Schedule 6, paragraph 5 denatured alcohol | section 90 excise duty point | section 49 other fermented product | Schedule 6, paragraph 12 qualifying draught product | section 51(1) spirits | Schedule 6, paragraph 1 wine | Schedule 6, paragraph 11 (2) This Part is to be construed as one with the Customs and Excise Acts 1979. (3) Any expression used in this Act or in any instrument made under this Act to which a meaning is given by any other Act included in the Customs and Excise Acts 1979 has, except where the context otherwise requires, the same meaning in this Act or any such instrument as in that Act.

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118 Regulations: supplementary and general

(1) The Commissioners may by regulations make provision supplementing provision made in relation to alcohol duty by or under this Part or any other enactment. (2) A power to make regulations under any provision of this Part may be exercised so as to make different provision for different purposes or areas. (3) A power to make regulations under any provision of this Part includes power to make— (a) provision which applies generally or only for specified cases or purposes; (b) provision conferring a discretion on a specified person to do anything under, or for the purposes of, the regulations; (c) provision by reference to things specified in a notice published in accordance with the regulations; (d) consequential, supplementary, incidental, transitional or saving provision. (4) Regulations under this Part are to be made by statutory instrument. (5) This section does not apply to regulations under section 120.

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119 Regulations: procedure

(1) A statutory instrument containing any regulations made under section 46(a) or section 51(5) must be laid before the House of Commons, and, unless approved by that House before the end of the period of 28 days beginning with the date on which the instrument is made, ceases to have effect at the end of that period. (2) The fact that a statutory instrument ceases to have effect as a result of subsection (1) does not affect— (a) anything previously done under the instrument, or (b) the making of a new statutory instrument. (3) In calculating the period for the purposes of subsection (1), no account is to be taken of any time— (a) during which Parliament is dissolved or prorogued, or (b) during which the House of Commons is adjourned for more than 4 days. (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) A statutory instrument containing regulations made under this Part, other than regulations in respect of which subsection (1) ... applies, is subject to annulment in pursuance of a resolution of the House of Commons. (6) A statutory instrument containing regulations to which subsection (1) applies may also include regulations relating to alcohol duty under any other provision of the customs and excise Acts (including any provision of this Part) if the Parliamentary procedure applicable to a statutory instrument containing regulations under the other provision does not require House of Commons approval. (7) Where regulations are included as mentioned in subsection (6), the procedure applicable to the statutory instrument is the procedure mentioned in subsection (1) (and not the procedure mentioned in subsection (6)). (8) If— (a) a statutory instrument contains regulations under any provision of this Part (other than regulations in respect of which subsection (1) ... applies) and regulations relating to alcohol duty under any other provision of the customs and excise Acts, and (b) the Parliamentary procedure applicable to a statutory instrument containing provision under the other provision does not require House of Commons approval, the only Parliamentary procedure applicable to a statutory instrument mentioned in paragraph (a) is that given by this section. (9) For the purposes of subsection (6) and subsection (8) the Parliamentary procedure applicable to a statutory instrument requires House of Commons approval if, as a condition of its continuing to have effect or its making, the House of Commons has to approve the statutory instrument or a draft of it. (10) This section does not apply to regulations under section 120.

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