(1) A person commits an offence if, for purposes connected with plastic packaging tax, the person—
(a) produces or provides, causes to be produced or provided, or otherwise makes use of any document which is false in a material particular, and
(b) does so intending to deceive any person or to secure that a machine will respond to the document as if it were a true document.
(2) A person commits an offence if, in providing any information under any provision made by or under this Part the person—
(a) makes a statement which the person knows to be false in a material particular, or
(b) recklessly makes a statement which is false in a material particular.
(3) A person guilty of an offence under this section is liable (subject to subsection (4))—
(a) on summary conviction in England and Wales—
(i) to imprisonment for a term not exceeding 6 months,
(ii) to a fine not exceeding £20,000, or
(iii) to both;
(b) on summary conviction in Scotland—
(i) to imprisonment for a term not exceeding 6 months,
(ii) to a fine not exceeding the statutory maximum, or
(iii) to both;
(c) on summary conviction in Northern Ireland—
(i) to imprisonment for a term not exceeding 6 months,
(ii) to a fine not exceeding the statutory maximum, or
(iii) to both;
(d) on conviction on indictment—
(i) to imprisonment for a term not exceeding 14 years,
(ii) to a fine, or
(iii) to both.
(4) In the case of an offence under this section where—
(a) the document referred to in subsection (1) is a return required under any provision made by or under this Part of this Act, or
(b) the information referred to in subsection (2) is contained in or otherwise relevant to such a return,
the maximum amount of the fine on summary conviction is the greater of £20,000 or the statutory maximum (as the case may be), and the amount equal to three times the sum of the amounts (if any) by which the return underestimates any person's liability to plastic packaging tax.
(5) In subsection (4) the reference to the amount by which a person's liability to plastic packaging tax is understated is the sum of—
(a) the amount (if any) by which the person's gross liability was understated, and
(b) the amount (if any) by which any entitlements of the person to tax credits and repayments of plastic packaging tax were overstated.
(6) In subsection (5) “gross liability” means liability to plastic packaging tax before any deduction is made in respect of—
(a) any entitlement to any tax credits, or
(b) any repayment of plastic packaging tax.
(1) A person commits an offence if the person's conduct during any particular period must have involved the person committing one or more offences under section 77 or 78.
(2) For the purposes of any proceedings for an offence under this section it is immaterial whether the particulars of the offence or offences that must have been committed are known.
(3) A person guilty of an offence under this section is liable (subject to subsection (4))—
(a) on summary conviction in England and Wales—
(i) to imprisonment for a term not exceeding 6 months,
(ii) to a fine not exceeding £20,000, or
(iii) to both;
(b) on summary conviction in Scotland—
(i) to imprisonment for a term not exceeding 6 months,
(ii) to a fine not exceeding the statutory maximum, or
(iii) to both;
(c) on summary conviction in Northern Ireland—
(i) to imprisonment for a term not exceeding 6 months,
(ii) to a fine not exceeding the statutory maximum, or
(iii) to both;
(d) on conviction on indictment—
(i) to imprisonment for a term not exceeding 14 years,
(ii) to a fine, or
(iii) to both.
(4) In the case of any offence under this section, the maximum amount of the fine on summary conviction is the greater of £20,000 or the statutory maximum (as the case may be), and the amount equal to three times the sum of the amounts of plastic packaging tax which are shown to be amounts that were or were intended to be evaded by the conduct in question.
(5) For the purposes of subsection (4), the amounts of plastic packaging tax that were, or were intended to be, evaded are to be taken as including—
(a) the amount of any tax credit, and
(b) the amount of any repayment of plastic packaging tax,
which was, or was intended to be, obtained in circumstances when there was no entitlement to it.
(6) In determining for the purposes of subsection (4) the amounts of plastic packaging tax that were, or were intended to be, evaded, no account is to be taken of the extent to which any liability to tax of a person would be, or would have been, reduced by the amount of any tax credit or repayment of plastic packaging tax to which the person was, or would have been, entitled.
(1) Where a person (P) fails to comply with a relevant requirement, P is liable to—
(a) a fixed penalty of £500, and
(b) a daily penalty of £40 for each day, after the first, on which the person continues to fail to comply.
(2) Where P is liable to a daily penalty in respect of a continuing failure to comply with a relevant requirement P is not liable to a further fixed penalty in respect of that failure.
(3) P is not liable to a penalty under this section in respect of an act or omission in respect of which P—
(a) has been convicted of an offence, or
(b) is liable to a penalty other than under this section.
(4) P is not liable to a penalty under this section if P satisfies the Commissioners or (on appeal) the appeal tribunal within the meaning of Schedule 11 that there is a reasonable excuse for the failure.
(5) For the purposes of subsection (4)—
(a) an insufficiency of funds is not a reasonable excuse, unless it is attributable to events outside P's control,
(b) where P relies on any other person to do anything, that is not a reasonable excuse unless P took reasonable care to avoid the failure, and
(c) where P had a reasonable excuse for the failure but the excuse has ceased, P is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased.
(6) Where P is liable to a penalty under this section—
(a) the Commissioners or, on appeal, the appeal tribunal within the meaning of Schedule 11, may reduce the penalty to such amount (including nil) as they think proper;
(b) on an appeal relating to any penalty reduced by the Commissioners, the appeal tribunal may cancel the whole or any part of the Commissioners' reduction.
(7) In this section, “relevant requirement” means an obligation or a requirement imposed by or under—
(a) section 58 (variation and correction of the register);
(b) section 61 (payment, collection and recovery);
(c) section 63 (records);
(d) section 65 (security for tax);
(e) section 68 (statements);
(f) section 69 (tax representatives);
(g) section 74 (death, incapacity or insolvency of person carrying on a business);
(h) section 75 (transfer of business as a going concern);
(i) Schedule 9 (secondary liability and assessment notices and joint and several liability notices);
(j) Schedule 13 (groups of companies).
(8) The Treasury may by regulations amend subsection (1) so as to substitute for the amounts for the time being specified there amounts taking account of inflation.
(9) The Treasury may by regulations amend subsection (7) so as to add or remove a requirement relating to plastic packaging tax as a “relevant requirement”.
(10) Schedule 14 makes provision about the assessment of penalties under this section.
Sections 145 to 155 of CEMA 1979 (proceedings for offences, mitigation of penalties and certain other matters) apply in relation to offences under this Part as they apply in relation to offences under the customs and excise Acts.
In this Part—
“accounting period” has the meaning given by section 46(2);
“attributed recycled plastic” is to be construed in accordance with section 49;
“chargeable plastic packaging component” is to be construed in accordance with section 47;
“chemical recycling certification scheme” is to be construed in accordance with section 49A;
“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs;
“the customs and excise Acts” has the same meaning as in CEMA 1979 (see section 1(1) of that Act);
“finished” has the meaning given by section 47(3);
“HMRC” means Her Majesty's Revenue and Customs;
“imported” is to be construed in accordance with section 50;
“joint and several liability notice” has the meaning that it has in Part 2 of Schedule 9;
“packaging component” and “plastic packaging component” are to be construed in accordance with section 48;
“plastic” and “recycled plastic” are to be construed in accordance with section 49;
“the register” means the register under section 54(1) (and references to registration are to registration in that register);
“secondary liability and assessment notice” has the meaning that it has in Part 1 of Schedule 9;
“tax credit”, unless the context requires otherwise, means a tax credit in accordance with regulations under section 53.
(1) Regulations under this Part—
(a) may make different provision for different purposes;
(b) may include incidental, consequential, supplementary, transitional or transitory provision.
(2) Regulations under this Part may make provision by reference to things specified in a notice that is—
(a) published by the Commissioners in accordance with the regulations, and
(b) not withdrawn by a further notice.
(3) Any power of the Commissioners to make regulations under this Part may instead be exercised by the Treasury.
(4) Regulations under this Part are to be made by statutory instrument.
(5) A statutory instrument containing regulations under the following provisions is subject to the made affirmative procedure—
(a) section 48(5) (meaning of “packaging component”);
(b) section 49(8) (meaning of “plastic” and “recycled plastic” , “recycled plastic” and “attributed recycled plastic”);
(ba) section 50(3) (timing of importation);
(c) section 52 (exempt plastic packaging components);
(d) section 80(8) or (9) (penalties for contravening relevant requirements).
(6) Any other statutory instrument containing regulations under this Part is subject to annulment in pursuance of a resolution of the House of Commons (“the negative procedure”).
(7) But subsection (6) does not apply to a statutory instrument containing only regulations under section 85 (commencement of this Part).
(8) Where a statutory instrument under this Act is subject to “the made affirmative procedure”—
(a) it must be laid before the House of Commons after being made, and
(b) it ceases to have effect at the end of the period of 28 sitting days beginning with the day on which the instrument is made, unless within that period the instrument is approved by a resolution of the House of Commons.
(9) Where regulations cease to have effect as a result of subsection (8), that does not—
(a) affect anything previously done under the regulations, or
(b) prevent the making of new regulations.
(10) Any provision that may be included in regulations in a statutory instrument under this Act subject to the negative procedure may be included in regulations in a statutory instrument subject to the made affirmative procedure.
(11) In this section, “sitting day” means a day on which the House of Commons is sitting (and a day is only a day on which the House of Commons is sitting if the House begins to sit on that day).
(1) This Part—
(a) comes into force on such day as the Treasury may by regulations appoint, and
(b) has effect in relation to packaging components that are produced in the United Kingdom or imported into the United Kingdom on or after 1 April 2022.
(2) Regulations under this section may appoint different days for different purposes.
86 Rate bands etc for tax years 2021-22 to 2030-31
Sections 8 and 8D(7) of IHTA 1984 (indexation of rate bands, residential enhancement and taper threshold) do not have effect by virtue of any difference between—
(a) the consumer prices index for the month of September in 2020, 2021, 2022, 2023 , 2024, 2025 , 2026, 2027 , 2028 or 2029, and
(b) that index for the previous September.
87 Temporary period for reduced rates on residential property
(1) The Stamp Duty Land Tax (Temporary Relief) Act 2020 is amended as follows.
(2) In section 1 (reduced rates of SDLT on residential property for a temporary period)—
(a) in subsection (1)(b) (which specifies the end of that temporary period), for “31 March 2021” substitute “ 30 June 2021 ”,
(b) in subsections (1) and (6)(a), for “temporary” substitute “ initial temporary ”, and
(c) in the heading, for “a temporary” substitute “ an initial temporary ”.
(3) After that section insert—
Further period for reduced rates of SDLT on residential property
1A (1) This section makes modifications of Part 4 of the Finance Act 2003 in relation to any land transaction the effective date of which falls in the period (“the further temporary relief period”)—
(a) beginning with 1 July 2021, and
(b) ending with 30 September 2021.
(2) Section 55(1B) (amount of stamp duty land tax chargeable: general) has effect as if for Table A there were substituted—
TABLE A: RESIDENTIAL
Part of relevant consideration | Percentage
So much as does not exceed £250,000 | 0%
So much as exceeds £250,000 but does not exceed £925,000 | 5%
So much as exceeds £925,000 but does not exceed £1,500,000 | 10%
The remainder (if any) | 12%
.
(3) Schedule 4ZA (higher rates of stamp duty land tax for additional dwellings etc) has effect as if for the Table A in section 55(1B) mentioned in paragraph 1(2) there were substituted—
TABLE A: RESIDENTIAL
Part of relevant consideration | Percentage
So much as does not exceed £250,000 | 3%
So much as exceeds £250,000 but does not exceed £925,000 | 8%
So much as exceeds £925,000 but does not exceed £1,500,000 | 13%
The remainder (if any) | 15%
.
(4) Paragraph 2(3) of Schedule 5 (amount of SDLT chargeable in respect of rent) has effect as if for Table A there were substituted—
TABLE A: RESIDENTIAL
Rate bands | Percentage
£0 to £250,000 | 0%
Over £250,000 | 1%
.
(5) In a case where—
(a) as a result of section 44(4) of the Finance Act 2003 the effective date of a land transaction falls in the further temporary relief period, and
(b) the contract concerned is completed by a conveyance after that period ends,
section 44(8) of that Act is not to apply in relation to that conveyance if the sole reason that (but for this subsection) it would have applied is that the modifications made by this section have no effect in relation to that conveyance.
(6) Section 44(10) of the Finance Act 2003 applies for the purposes of subsection (5).
89 Relief from higher rate charge for certain housing co-operatives etc
(1) In Schedule 4A to FA 2003 (higher rate of SDLT for certain transactions), after paragraph 5F insert—
Qualifying housing co-operatives
5FA Paragraph 3 does not apply to a chargeable transaction so far as its subject-matter consists of a higher threshold interest that is acquired by a company on a day on which the company is a qualifying housing co-operative for the purposes of section 150(3A) of the Finance Act 2013 (relief from ATED).
(2) In that Schedule, after paragraph 5K insert—
5L (1) This paragraph applies where relief under paragraph 5FA (qualifying housing co-operatives) has been allowed in respect of a higher threshold interest forming the whole or part of the subject-matter of a chargeable transaction.
(2) References in this paragraph to a qualifying housing body are to—
(a) a company that is a qualifying housing co-operative for the purposes of section 150(3A) of the Finance Act 2013 (relief from ATED),
(b) a registered provider of social housing, or
(c) a registered social landlord.
(3) The relief under paragraph 5FA is withdrawn (subject to sub-paragraph (4)) if—
(a) on any day in the period of three years beginning with the effective date of the chargeable transaction (“the control period”), the purchaser is not a qualifying housing body, and
(b) immediately before the first day on which that is the case the purchaser still holds the higher threshold interest or holds a chargeable interest derived from it.
(4) If, on any day in the control period, the purchaser is not a qualifying housing body because it ceases to exist (whether by virtue of a conversion into, or amalgamation with, another person or for any other reason), relief is not to be withdrawn under this paragraph unless—
(a) another person (“the first successor”) has succeeded to the engagements of the purchaser, and
(b) condition A or condition B is met (and if condition B is met, subject to sub-paragraph (7)).
(5) Condition A is that, on the day the first successor succeeds to the engagements of the purchaser (“the day of succession”), the first successor is not a qualifying housing body.
(6) Condition B is that—
(a) on any day in the part of the control period that falls after the day of succession, the first successor is not a qualifying housing body, and
(b) immediately before the first day on which that is the case the first successor still holds the higher threshold interest or holds a chargeable interest derived from it.
(7) If condition B is met because the first successor ceases to exist (whether by virtue of a conversion into, or amalgamation with, another person or for any other reason), relief is not to be withdrawn under this paragraph unless it would have been withdrawn by virtue of sub-paragraph (4) if references in sub-paragraphs (4) to (6)—
(a) to the purchaser were references to the first successor, and
(b) to the first successor were references to the person who has succeeded to the engagements of the first successor (“the second successor”).
(8) Sub-paragraph (7) is to apply to the second successor as it applies to the first successor, and so on, subject to the necessary modifications.
(3) Schedule 17 contains minor and consequential amendments of Part 4 of FA 2003 (stamp duty land tax).
(4) The amendments made by this section and Schedule 17 have effect in relation to any land transaction of which the effective date is 3 March 2021 or a later date.
(1) In section 150 of FA 2013 (providers of social housing)—
(a) after subsection (3) insert—
(3A) A day in a chargeable period is relievable in relation to a single-dwelling interest if on that day a qualifying housing co-operative (as defined by section 150A) is entitled to the interest.
, and
(b) in the heading, at the end insert “ etc ”.
(2) After that section insert—
Meaning of “qualifying housing co-operative”
150A (1) A company is a “qualifying housing co-operative” for the purposes of section 150(3A) on any day if on that day—
(a) it is a housing association within the meaning of—
(i) the Housing Associations Act 1985, or
(ii) Part 2 of the Housing (Northern Ireland) Order 1992 (S.I. 1992/1725 (N.I. 15)),
(b) it is a registered society within the meaning of—
(i) the Co-operative and Community Benefit Societies Act 2014, or
(ii) the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969, and
(c) the rules of the association comply with subsection (2).
(2) The rules of the association—
(a) must restrict membership to persons who are tenants, or prospective tenants, of the association,
(b) must preclude the granting or assignment of tenancies to persons other than members,
(c) must prevent members from transferring any of their shares,
(d) must prevent members from receiving any more than the nominal value of their shares on a return of share capital, and
(e) must confer on members equal voting rights.
(3) The amendments made by this section have effect in relation to—
(a) the chargeable period beginning with 1 April 2021 and all subsequent chargeable periods;
(b) the chargeable period beginning with 1 April 2020 but only in relation to a person and a single-dwelling interest falling within case A or case B.
(4) Case A is that the first day in the chargeable period on which the person is within the charge with respect to the single-dwelling interest is on or after 3 March 2021.
(5) Case B is that the person was within the charge with respect to the single-dwelling interest on one or more days in the chargeable period before 3 March 2021 but has not delivered an annual tax on enveloped dwellings return for the period with respect to the interest by 3 March 2021.
(6) For the purposes of subsections (3) to (5), “single-dwelling interest”, “within the charge” and “annual tax on enveloped dwellings return” have the same meanings that they have for the purposes of Part 3 of FA 2013.
91 Repayment to certain housing co-operatives: 2020-21 chargeable period
(1) A claim for repayment of annual tax on enveloped dwellings paid, before 3 March 2021, by or on behalf of a chargeable person with respect to a single-dwelling interest may be made by the person for each day (if any) in the chargeable period beginning with 1 April 2020 on which—
(a) the person was within the charge with respect to the interest and not treated as being outside the charge by virtue of section 132(2) of FA 2013 (effect of reliefs under sections 133 to 150), and
(b) a qualifying housing co-operative was entitled to the interest.
(2) For the purposes of a claim under this section with respect to a single-dwelling interest—
(a) a company is a qualifying housing co-operative on any day if on that day it would have been a qualifying housing co-operative for the purposes of section 150(3A) of FA 2013 (if sections 150(3A) and 150A of FA 2013 (inserted by section 90) had been in force on that day);
(b) each day on which the conditions in subsection (1)(a) and (b) are met with respect to the interest is a “relievable day”;
(c) references to “the relevant return” are to the annual tax on enveloped dwellings return for the chargeable period beginning with 1 April 2020 with respect to the interest.
(3) Where a claim is made under this section with respect to a single-dwelling interest, HMRC must repay the total of the daily amounts for all the relievable days.
(4) A claim under this section must be made by amending the relevant return under paragraph 3 of Schedule 33 to FA 2013 on the same basis as it would have been amended if, on each of the relievable days, the chargeable person had been entitled to claim the type of relief numbered 8 in the table in section 159A(9) of FA 2013.
(5) Terms used in this section and in Part 3 of FA 2013 have the same meaning in this section as in that Part.
92 Extension of temporary 5% reduced rate for hospitality and tourism sectors
In Articles 2 and 5 of the Value Added Tax (Reduced Rate) (Hospitality and Tourism) (Coronavirus) Order 2020 (S.I. 2020/728), for “31st March 2021” substitute “ 30th September 2021 ”.
93 Temporary 12.5% reduced rate for hospitality and tourism sectors
(1) The modifications made by Articles 3 and 4 of the Value Added Tax (Reduced Rate) (Hospitality and Tourism) (Coronavirus) Order 2020 (S.I. 2020/728) (“the Reduced Rate Order”) continue to have effect (despite Article 2 of that Order) during the relevant period.
(2) During that period, in relation to a supply that is of a description within Groups 14 to 16 in Part 2 of Schedule 7A to VATA 1994, the reference in section 29A(1) of that Act to “5 per cent” is to be read as a reference to “12.5 per cent” (and any reference elsewhere in that Act to a rate of 5% in the context of a supply of a description specified in Schedule 7A is to be read accordingly).
(3) The modifications made by Article 6 of the Reduced Rate Order also continue to have effect (despite Article 5 of that Order) during the relevant period, but subject to the modifications in subsection (4).
(4) The modifications to Article 6 of the Reduced Rate Order mentioned in subsection (3) are—
(a) as if in paragraph (a), for “4.5” there were substituted “ 8.5 ”;
(b) as if in paragraph (b), for “0” there were substituted “ 5.5 ”;
(c) as if in paragraph (c), for “1” there were substituted “ 4 ”.
(5) The relevant period means the period—
(a) beginning with the day after the day on which the modifications made by Articles 3, 4 and 6 of the Reduced Rate Order would otherwise cease to apply by virtue of the ending of the periods mentioned in Articles 2 and 5 of that Order (whether in accordance with section 92 or any regulations made under section 26B or 29A(3) of VATA 1994), and
(b) ending on 31 March 2022.
(6) The Treasury may by regulations—
(a) repeal subsections (1) to (5);
(b) amend subsection (5) so as to substitute for the period for the time being mentioned there such other period as they consider appropriate.
(7) A statutory instrument containing regulations under subsection (6) that would increase the rate of value added tax to be charged on a supply must be laid before the House of Commons after being made 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.
(8) Any other statutory instrument containing regulations under subsection (6) is subject to annulment in pursuance of a resolution of the House of Commons.
(9) The fact that a statutory instrument ceases to have effect as a result of subsection (7) does not affect—
(a) anything previously done under the instrument, or
(b) the making of a new instrument.
(10) In calculating the period of 28 days mentioned in subsection (7), 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 four days.
(1) In Schedule 18, which makes provision in relation to the Protocol on Ireland/Northern Ireland in the EU withdrawal agreement about value added tax and distance selling—
(a) Part 1 makes provision amending—
(i) the criteria for registration under Part 9 of Schedule 9ZA to VATA 1994 (value added tax on acquisitions in Northern Ireland from member States: registration in respect of distance sales), and
(ii) the application of the place of supply rules in Part 5 of Schedule 9ZB to VATA 1994 (goods removed to or from Northern Ireland: rules relating to particular supplies);
(b) Part 2 makes provision implementing the European Union schemes known as the One Stop Shop (“OSS”) and the Import One Stop Shop (“IOSS”);
(c) Part 3 makes provision amending Schedule 9ZC to VATA 1994 (online sales by overseas persons and low value importations: modifications relating to the Northern Ireland Protocol) to omit Part 2 of that Schedule (modifications of the Value Added Tax (Imported Goods) Relief Order 1984);
(d) Part 4 makes provision about supplies of goods by persons established outside the United Kingdom that are facilitated by online marketplaces.
(2) The Treasury may by regulations made by statutory instrument make such provision as they consider appropriate in consequence of this section or Schedule 18, including provision amending, repealing or revoking any provision of an Act whenever passed or made (including this Act and any Act amended by it).
(3) The Treasury may by regulations made by statutory instrument make such transitional, transitory, saving, supplementary or incidental provision as they consider appropriate in connection with the coming into force of this section or Schedule 18.
(4) Regulations under subsections (2) and (3) may (among other things)—
(a) confer on a person specified in the regulations a discretion to do anything under, or for the purposes of, the regulations;
(b) make provision by reference to things specified in a notice published in accordance with the regulations;
(c) make different provision for different purposes or areas.
(5) A statutory instrument that—
(a) contains (whether alone or with other provision) regulations under subsection (2), and
(b) is not subject to any requirement under section 96 that the instrument be laid before, and approved by a resolution of, the House of Commons after being made,
is subject to annulment in pursuance of a resolution of the House of Commons.
(6) This subsection and the following provisions come into force on the day on which this Act is passed—
(a) subsection (1) and Schedule 18 so far as making provision for anything to be done by regulations, directions or public notice, and
(b) subsections (2) to (5), (7) and (8).
(7) Subsection (1) and Schedule 18 come into force for all remaining purposes on such day as the Treasury may by regulations made by statutory instrument appoint.
(8) Regulations under subsection (7) may appoint different days for different purposes.
96 Distance selling: power to make further provision
(1) The Treasury may by regulations made by statutory instrument make such provision relating to value added tax as they consider appropriate in relation to the Protocol on Ireland/Northern Ireland in the EU withdrawal agreement—
(a) for the purposes of, or in connection with, giving effect to Council Directive (EU) 2017/2455 of 5 December 2017 amending Directive 2006/112/EC and Directive 2009/132/EC as regards certain value added tax obligations for supplies of services and distance sales of goods, or
(b) otherwise for the purposes of dealing with matters arising out of, or related to, that Directive.
(2) No regulations may be made under this section on or after 1 April 2024.
(3) Regulations under this section—
(a) may make any such provision as might be made by an Act of Parliament, including provision amending or repealing any provision of this Act, but
(b) may not make provision taking effect from a date earlier than that of the making of the regulations.
(4) A statutory instrument containing (whether alone or with other provision) regulations under this section that amend or repeal any Act of Parliament must be laid before the House of Commons after being made.
(5) Regulations contained in a statutory instrument laid before the House of Commons under subsection (4) cease to have effect at the end of the period of 28 days beginning with the day on which the instrument is made unless, during that period, the instrument is approved by a resolution of the House of Commons.
(6) In calculating the period of 28 days, no account is to be taken of any whole days that fall within a period during which—
(a) Parliament is dissolved or prorogued, or
(b) the House of Commons is adjourned for more than four days.
(7) If regulations cease to have effect as a result of subsection (5), that does not—
(a) affect the validity of anything previously done under or by virtue of the instrument, or
(b) prevent the making of new regulations.
(8) A statutory instrument containing (whether alone or with other provision) regulations under this section to which subsection (4) does not apply is subject to annulment in pursuance of a resolution of the House of Commons.
(9) This section comes into force on the day on which this Act is passed.
(1) In Schedule 6 to VATA 1994 (valuation: special cases), after paragraph 11 insert—
11A (1) Sub-paragraph (2) applies to goods that—
(a) fall within subsection (5) of section 21 (works of art etc), and
(b) are treated as supplied in the United Kingdom as a result of section 7(5B) (importation of consignments with an intrinsic value not exceeding £135).
(2) The value of a supply of goods to which this sub-paragraph applies is to be taken to be an amount equal to 25% of the amount that, apart from this sub-paragraph, would be its value for the purposes of this Act.
(3) An order under section 2(2) may contain provision making such alteration of the percentage for the time being specified in sub-paragraph (2) as the Treasury consider appropriate in consequence of any increase or decrease by that order of the rate of VAT.
(2) The amendment made by subsection (1) has effect in relation to supplies made on or after IP completion day.
98 Continuing effect of principle preventing the abuse of the VAT system
(1) In section 42 of TCTA 2018 (EU law relating to VAT), after subsection (4) insert—
(4A) Accordingly, that principle may continue to be relied upon in determining any matter relating to value added tax (including in determining the effect of any provision made by or under an enactment).
(2) That section has effect, and is to be deemed always to have had effect, with the amendment made by subsection (1).
99 Deferring VAT payment by reason of the coronavirus emergency
(1) Schedule 19 makes provision about—
(a) powers of the Commissioners for Her Majesty's Revenue and Customs to agree that payment of sums to meet liabilities described in article 5 of the Finance Act 2008, Section 135 (Coronavirus) Order 2020 (S.I. 2020/934) (“the Coronavirus Order 2020”) may be further deferred,
(b) surcharges arising on such sums, and
(c) a penalty payable in connection with non-payment of such sums.
(2) Subsection (1) and Schedule 19 are to be treated as having come into force on 9 March 2021.
(3) The Treasury may by regulations repeal paragraphs 4 to 11 of Schedule 19 (penalty) where they consider it appropriate to do so by reason of circumstances arising as a result of the emergency specified in article 2 of the Coronavirus Order 2020.
(4) Regulations made under subsection (3)—
(a) must make provision for the repayment of amounts paid in respect of penalties under Schedule 19, and
(b) may make other transitional provision.
(5) Regulations under this section are to be made by statutory instrument.
(6) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.
(1) In section 33(3) of the Value Added Tax Act 1994 (refunds of VAT in certain cases), after paragraph (i) insert—
(ia) S4C;
.
(2) The amendment made by this section has effect in relation to supplies made, and acquisitions and importations taking place, on or after 1 April 2021.
Schedule 20 contains amendments of the Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605) in connection with the removal of certain steel products to Northern Ireland.
102 Restriction of use of rebated diesel and biofuels
(1) Schedule 21 makes—
(a) provision amending HODA 1979 to restrict the use of rebated diesel and biofuels to specified categories of machines, and
(b) related provision.
(2) Schedule 21 comes into force on 1 April 2022.
(3) The Treasury may by regulations make such consequential, supplementary, incidental, transitional, transitory or saving provision as the Treasury consider appropriate in connection with the coming into force of Schedule 21.
(4) Regulations under subsection (3) may—
(a) amend, repeal or revoke provision made by or under an Act passed before this Act;
(b) make different provision for different purposes or areas.
(5) Regulations under subsection (3) are to be made by statutory instrument.
(6) A statutory instrument containing regulations under subsection (3) is subject to annulment in pursuance of a resolution of the House of Commons.
(7) In Schedule 11 to FA 2020 (amendments of HODA 1979 relating to private pleasure craft), in paragraph 21 (power to make consequential amendments), after “enactment” insert “ , including Schedule 21 to FA 2021, ”.
(1) In Schedule 1 to TDPA 1979 (table of rates of tobacco products duty), for the Table substitute—
TABLE
1 Cigarettes | An amount equal to the higher of— 16.5% of the retail price plus £244.78 per thousand cigarettes, or £320.90 per thousand cigarettes.
2 Cigars | £305.32 per kilogram
3 Hand-rolling tobacco | £271.40 per kilogram
4 Other smoking tobacco and chewing tobacco | £134.24 per kilogram
5 Tobacco for heating | £251.60 per kilogram
(2) In consequence of the provision made by subsection (1), the Tobacco Products Duty (Alteration of Rates) Order 2020 (S.I. 2020/1256) is revoked.
(1) Section 19 of VERA 1994 (rebates of vehicle excise duty) is amended as follows.
(2) In subsection (3A) for “subsection (3B)” substitute “ subsections (3B) and (3C) ”.
(3) After subsection (3B) insert—
(3C) Where the annual rate of duty chargeable on a vehicle licence at the time when it was taken out is determined in accordance with paragraph 1GE(2) of Schedule 1 (higher rates of duty: vehicles with a price exceeding £40,000) the relevant amount is given by—
(
H
×
R
)
+
(
L
×
P
)
12
where—
H is the annual rate of duty chargeable on the licence at the time when it was taken out;
R is the number of complete months (if any) of that part of the currency of the licence which is unexpired—
in respect of which the rebate condition is satisfied, and
which are within the period of six years beginning with the day of registration;
L is the annual rate of duty that would have been chargeable on the licence at the time when it was taken out if that time had been after the period of six years beginning with the day of registration;
P is the number of complete months (if any) of that part of the currency of the licence which is unexpired—
in respect of which the rebate condition is satisfied, and
which are not within R.
(3D) In subsection (3C) the “day of registration” means the day on which the vehicle in respect of which the licence is in force was first registered under this Act or under the law of a country or territory outside the United Kingdom.
(4) The amendments made by this section have effect in relation to cases where a rebate condition (within the meaning of section 19 of VERA 1994) is satisfied on or after 1 April 2021.
(1) In section 30(4A) of FA 1994 (air passenger duty: long haul rates)—
(a) in paragraph (a), for “£82” substitute “ £84 ”, and
(b) in paragraph (b), for “£180” substitute “ £185 ”.
(2) The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2022.
108 Amounts of gross gaming yield charged to gaming duty
(1) In section 11(2) of FA 1997 (rates of gaming duty), for the table substitute—
TABLE
Part of gross gaming yield | Rate
The first £2,548,500 | 15%
The next £1,757,000 | 20%
The next £3,077,000 | 30%
The next £6,494,500 | 40%
The remainder | 50%
.
(2) The amendment made by this section has effect in relation to accounting periods beginning on or after 1 April 2021.
109 Rates of climate change levy from 1 April 2022 to 31 March 2023
(1) Paragraph 42 of Schedule 6 to FA 2000 (climate change levy: amount payable by way of levy) is amended as follows.
(2) In sub-paragraph (1), for the table substitute—
TABLE
Taxable commodity supplied | Rate at which levy payable if supply is not a reduced-rate supply
Electricity | £0.00775 per kilowatt hour
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility | £0.00568 per kilowatt hour
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state | £0.02175 per kilogram
Any other taxable commodity | £0.04449 per kilogram
.
(3) In sub-paragraph (1)(c) (reduced-rate supplies in respect of any taxable commodity other than electricity or petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state), for “17” substitute “ 14 ”.
(4) In consequence of the amendment made by subsection (3), in the definition of “r” in the Notes to paragraph 2 of Schedule 1 to the Climate Change Levy (General) Regulations 2001, for “0.83” substitute “ 0.86 ”.
(5) The amendments made by this section have effect in relation to supplies treated as taking place on or after 1 April 2022 but before 1 April 2023.
110 Rates of climate change levy from 1 April 2023
(1) Paragraph 42 of Schedule 6 to FA 2000 (climate change levy: amount payable by way of levy) is amended as follows.
(2) In sub-paragraph (1), for the table substitute—
TABLE
Taxable commodity supplied | Rate at which levy payable if supply is not a reduced-rate supply
Electricity | £0.00775 per kilowatt hour
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility | £0.00672 per kilowatt hour
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state | £0.02175 per kilogram
Any other taxable commodity | £0.05258 per kilogram
.
(3) In sub-paragraph (1)(c) (reduced-rate supplies in respect of any taxable commodity other than electricity or petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state), as amended by section 109(3), for “14” substitute “ 12 ”.
(4) In consequence of the amendment made by subsection (3), in the definition of “r” in the Notes to paragraph 2 of Schedule 1 to the Climate Change Levy (General) Regulations 2001, as amended by section 109(4), for “0.86” substitute “ 0.88 ”.
(5) The amendments made by this section have effect in relation to supplies treated as taking place on or after 1 April 2023.
(1) Section 42 of FA 1996 (amount of landfill tax) is amended as follows.
(2) In subsection (1)(a) (standard rate), for “£94.15” substitute “ £96.70 ”.
(3) In subsection (2) (reduced rate for certain disposals), in the words after paragraph (b)—
(a) for “£94.15” substitute “ £96.70 ”, and
(b) for “£3” substitute “ £3.10 ”.
(4) The amendments made by this section have effect in relation to disposals made (or treated as made) on or after 1 April 2021.
(1) The Treasury may by regulations designate an area in Great Britain as a special area for the purposes of—
(a) Part 2 of CAA 2001 (plant and machinery allowances),
(b) Part 2A of CAA 2001 (structures and buildings allowances), and
(c) where the area is in England, Part 4 of FA 2003 (stamp duty land tax).
(2) An area may only be designated by regulations under this section if, at the time the regulations are made—
(a) the area is situated in a freeport or an investment zone, or
(b) the Treasury consider that the area is being used, or is likely to be used, for purposes connected with activities carried on, or likely to be carried on, in a freeport or an investment zone.
(3) An area designated under this section is to be known as a “special tax site”.
(4) Regulations under this section must specify the date on which the designation takes effect.
(5) For the purposes of this section any reference to a freeport or an investment zone is to an area which is identified as such in a document published by, or with the consent of, the Treasury for the purposes of this section (and not withdrawn).
(6) Any regulations made by the Treasury in reliance on a resolution under section 1 of the Provisional Collection of Taxes Act 1968 and in force immediately before the passing of this Act which make a designation described in subsections (1) and (2) have effect as if validly made under this section.
(1) Schedule 22 makes provision about capital allowances for expenditure incurred in connection with freeport tax sites.
(2) In that Schedule —
(a) Part 1 provides for a first-year allowance under Part 2 of CAA 2001 (plant and machinery allowances),
(b) Part 2 provides for a different rate of allowance under Part 2A of CAA 2001 (structures and buildings allowances), and
(c) Part 3 contains related amendments.
(1) Schedule 24 contains provision for imposing penalties on persons in respect of failures to make certain returns.
(2) Schedule 25 contains provision for imposing penalties on persons who, by failing to make certain returns, deliberately withhold information which would enable or assist HMRC to assess that person's liability to tax.
(3) Schedules 24 and 25 come into force on such day as the Treasury may by regulations appoint.
(4) Different days may be appointed for different purposes.
(5) The Treasury may by regulations make transitional, transitory or saving provision in connection with the coming into force of any provision in Schedules 24 and 25.
(6) The power to make regulations under subsection (5) includes power to make different provision for different purposes.
(7) Regulations under this section are to be made by statutory instrument.
(1) Schedule 26 contains provision for imposing penalties on persons in respect of failures to make certain payments on time.
(2) Schedule 26 comes into force on such day as the Treasury may by regulations appoint.
(3) Different days may be appointed for different purposes.
(4) The Treasury may by regulations make transitional, transitory or saving provision in connection with the coming into force of any provision in Schedule 26.
(5) The power to make regulations under subsection (4) includes power to make different provision for different purposes.
(6) Regulations under this section are to be made by statutory instrument.