(1) In section 5 of the principal Act (allowance of abortive exploration expenditure incurred before 16th March 1983), after subsection (2) there shall be inserted the following subsection—
(2A) For the purpose only of determining under paragraph (c) of subsection (1) above whether expenditure is or is likely to become allowable for any oil field, it shall be assumed that any oil field which, apart from this subsection, would be a non-taxable field is or, as the case may be, will be a taxable field and, accordingly, that section 185(4)(e) of the Finance Act 1993 (no expenditure allowable for non-taxable fields) does not apply.
(2) Subsection (1) above shall be deemed to have come into force at the same time as Part III of the Finance Act 1993 (27th July 1993).
(3) The Board may make all such amendments of assessments or determinations or of decisions on claims as may be necessary in consequence of the preceding provisions of this section.
238 Disposals of assets producing tariff receipts.
(1) With respect to disposals made after 30th November 1993, paragraph 5 of Schedule 2 to the Oil Taxation Act 1983 (acquisition and disposal of qualifying assets otherwise than at arm’s length: limit on tariff and disposal receipts) shall be amended in accordance with subsections (2) and (3) below; and in this subsection “disposal” has the same meaning as in that paragraph.
(2) In sub-paragraph (1) of paragraph 5, at the end of paragraph (c), and in place of the amendment made by section 190(5)(b) of the Finance Act 1993, there shall be inserted
and
(d) the use of the asset will be wholly by that person in connection with a taxable field in which he is a participator (and accordingly, and in particular, there will be no use giving rise to tariff receipts)
; and for the words “those receipts”, where they next occur, there shall be substituted “ the receipts referred to in paragraphs (b) and (c) above ”.
(3) In sub-paragraph (3) of paragraph 5, for paragraph (b) there shall be substituted the following paragraph—
(b) the disposal does not fall within sub-paragraph (1) above, and
.
(4) The Board may make all such amendments of assessments or determinations or of decisions on claims as may be necessary in consequence of the preceding provisions of this section.
(1) In section 122 of the Stamp Act 1891 (definitions)—
(a) after subsection (1) there shall be inserted—
(1A) For the purposes of this Act a deed (or, in Scotland, a deed for which delivery is required) shall be treated as executed when it is delivered or, if it is delivered subject to conditions, when the conditions are fulfilled
, and
(b) at the end of the definition of “executed” and “execution” in subsection (1) there shall be added “ (but subject to subsection (1A) of this section) ”.
(2) In section 27 of the Stamp Duties Management Act 1891 (definitions), in the definition of “executed” and “execution”, for the words following “execution” there shall be substituted “ have the same meaning as in the Stamp Act 1891 ”.
(3) This section shall apply to any instrument except one which, on or before 7th December 1993, has been executed for the purposes of the Stamp Act 1891 as that Act has effect before amendment by this section.
(1) This section applies if there are presented for stamping at the same time in pursuance of Schedule 13 to the Finance Act 1999—
(a) an agreement for a lease, and
(b) the lease which gives effect to the agreement,
and the duty (if any) chargeable on the agreement is paid.
(2) Section 15A of that Act (interest payable on late stamping) applies in relation to the agreement as if the reference to the day on which the instrument was executed were to the day on which the lease was executed.
(3) For the purposes of section 15B of that Act (penalty on late stamping) the agreement is treated—
(a) as if it had been executed at the same time and place as the lease, and
(b) where the lease was executed outside the United Kingdom, as if it had been first received in the United Kingdom at the same time as the lease.
(4) For the purposes of this section a lease gives effect to an agreement if the lease is granted subsequent to the agreement and either is in conformity with the agreement or relates to substantially the same property and term as the agreement.
(5) References in this section to an agreement for a lease include missives of let in Scotland.
240A Requirements before lease treated as duly stamped.
(1) A lease shall not be treated as duly stamped unless—
(a) it contains a certificate that there is no agreement to which it gives effect, or
(b) it is stamped with a stamp denoting—
(i) that there is an agreement to which it gives effect which is not chargeable with duty, or
(ii) the duty paid on the agreement to which it gives effect.
(2) For the purposes of this section a lease gives effect to an agreement if the lease is granted subsequent to the agreement and either is in conformity with the agreement or relates to substantially the same property and term as the agreement.
(3) References in this section to a lease do not include, and references in this section to an agreement do include, missives of let in Scotland.
(1) Where—
(a) the consideration for the transfer or vesting of any estate or interest in land or the grant of any lease consists of or includes any property, and
(b) for the purposes of stamp duty chargeable under or by reference to Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) no amount or value is, apart from this section, attributed to that property on that transfer, vesting or grant,
then, for those purposes, the consideration or, as the case may be, the consideration so far as relating to that property shall be taken to be the market value of the property immediately before the instrument in question is executed and accordingly the instrument shall be charged with ad valorem duty under that heading.
(2) For the purposes of this section the market value of property at any time is the price which that property might reasonably be expected to fetch on a sale at that time in the open market.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) This section shall apply to instruments executed after 7th December 1993, not being instruments executed in pursuance of a contract made before 30th November 1993.
242 Where consideration not ascertainable from conveyance or lease.
(1) Where, for the purposes of stamp duty chargeable under or by reference to Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale), the consideration, or any part of the consideration, for—
(a) the transfer or vesting of any estate or interest in land, or
(b) the grant of any lease,
cannot, apart from this subsection, be ascertained at the time the instrument in question is executed, the consideration for the transfer, vesting or grant shall for those purposes be taken to be the market value immediately before the instrument is executed of the estate or interest transferred or vested or, as the case may be, the lease granted.
(2) Where, for the purposes of stamp duty chargeable under paragraph 12 of Schedule 13 to the Finance Act 1999, the rent, or any part of the rent, payable under any lease cannot, apart from this subsection, be ascertained at the time it is executed, the rent shall for those purposes be taken to be the market rent at that time.
(3) For the purposes of this section—
(a) the cases where consideration or rent cannot be ascertained at any time do not include cases where the consideration or rent could be ascertained on the assumption that any future event mentioned in the instrument in question were or were not to occur, and
(b) the market rent of a lease at any time is the rent which the lease might reasonably be expected to fetch at that time in the open market,
and in this section “market value” has the same meaning as in section 241 above.
(4) This section shall apply to instruments executed after 7th December 1993.
(1) Where, in pursuance of any agreement, any lease is surrendered (or, in Scotland, renounced) at any time otherwise than by deed, the agreement shall be treated for the purposes of stamp duty as if it were a deed executed at that time effecting the surrender (or, as the case may be, renunciation).
(2) This section shall apply to any agreement made after 7th December 1993.
244 Production of documents on transfer of land in Northern Ireland.
(1) Subject to section 245 below, on the occasion of—
(a) any transfer on sale of any freehold interest in land in Northern Ireland, or
(b) the grant, or any transfer on sale, of any lease of such land,
the transferee, lessee or proposed lessee shall produce to the Commissioners the instrument by means of which the transfer is effected or the lease granted or agreed to be granted, as the case may be.
(2) Any transferee, lessee or proposed lessee required to produce any instrument under subsection (1) above shall produce with it a document (signed by him or by some person on his behalf and showing his address) giving such particulars as may be prescribed.
(3) Any person who, within thirty days—
(a) after the execution of an instrument which he is required under subsection (1) above to produce, or
(b) in the case of such an instrument executed at a place outside Northern Ireland, after it is first received in Northern Ireland,
fails to comply with that subsection or subsection (2) above shall be liable on summary conviction to a fine not exceeding level 1 on the standard scale.
(4) Where any agreement for any lease of land in Northern Ireland is produced to the Commissioners together with a document (signed as mentioned in subsection (2) above) giving such particulars as may be prescribed—
(a) it shall not be necessary to produce to them the instrument granting the lease, or any further such document as is referred to in that subsection, unless that instrument is inconsistent with the agreement, but
(b) the Commissioners shall, if any such instrument is produced to them and application is made for that purpose, denote on the instrument that it has been produced to them.
(5) Notwithstanding anything in section 12 of the Stamp Act 1891, no instrument required by this section to be produced to the Commissioners shall be deemed, for the purposes of section 14 of that Act, to be duly stamped unless it is stamped with a stamp denoting that the instrument has been so produced.
(1) Section 244 above shall not apply to any instrument (an “exempt instrument”) falling within any prescribed class; but regulations may, in respect of exempt instruments or such descriptions of exempt instruments as may be prescribed, require such a document as is mentioned in subsection (2) of that section to be furnished in accordance with the regulations to the Commissioner of Valuation for Northern Ireland.
(2) The information contained in any document produced to the Commissioners under section 244(2) above shall be available for use by the Commissioner of Valuation for Northern Ireland.
(3) Any person who fails to comply with any requirement imposed by virtue of subsection (1) above shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.
(4) Section 244 above shall also not apply to any instrument which relates solely to—
(a) incorporeal hereditaments or to a grave or right of burial, ...
(b) land subject to land purchase annuities which are registered in the Land Registry in Northern Ireland. or
(c) an SDLT transaction within the meaning of paragraph 1(2) of Schedule 19 to the Finance Act 2003.
(5) In this section and section 244 above—
“lease”—
includes an underlease or other tenancy and an agreement for a lease, underlease or tenancy, but
does not include a mortgage, charge or lien on any property for securing money or money’s worth,
and “lessee” and “grant” shall be construed accordingly,
“prescribed” means prescribed by regulations, and
“regulations” means regulations made by the Commissioners under this section.
(6) The power to make regulations under this section shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.
(7) Regulations under this section may make different provision for different cases.
(8) This section and section 244 above shall come into force on such day as the Treasury may by order made by statutory instrument appoint.
The Table substituted by section 72(1) of the Finance (No. 2) Act 1992 shall apply to chargeable transfers made in the year beginning 6th April 1994, and accordingly section 8(1) of the Inheritance Tax Act 1984 (indexation of rate bands) shall not apply to such transfers.
(1) In section 113B of the Inheritance Tax Act 1984 (replacement business property)—
(a) in subsections (2)(a) and (5)(b), for “twelve months” substitute, in each case, “ the allowed period ”; and
(b) in subsection (8), at the end add “ and “allowed period” means the period of three years or such longer period as the Board may allow ”.
(2) In section 124B of the Act of 1984 (replacement agricultural property)—
(a) in subsections (2)(a) and (5)(b), for “twelve months” substitute, in each case, “ the allowed period ”; and
(b) in subsection (8), at the end add “ and “allowed period” means the period of three years or such longer period as the Board may allow ”.
(3) This section applies in relation to transfers of value made, and other events occurring, on or after 30th November 1993.
(1) No property forming part of a premiums trust fund or ancillary trust fund of a corporate member shall be relevant property for the purposes of Chapter III of Part III of the Inheritance Tax Act 1984 (settlements without interests in possession).
(2) In this section “ancillary trust fund”, “corporate member” and “premiums trust fund” have the same meanings as in Chapter V of Part IV of this Act (Lloyd’s underwriters: corporations etc.).
(1) For the purposes of this section—
(a) the relevant date is 30th November 1993;
(b) the 1992 Act is the Taxation of Chargeable Gains Act 1992.
(2) In section 468F of the Taxes Act 1988 the following shall be omitted—
(a) in subsection (1)(c) the words “and not a dual resident”;
(b) in subsection (8) the definition of “dual resident”;
and this subsection shall have effect where the date of payment is the relevant date or later.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) Sections 749(4A) and 751(2)(bb) of the Taxes Act 1988 shall be omitted; and this subsection shall be deemed to have come into force on the relevant date.
(5) Section 139(3) of the 1992 Act shall be omitted; and this subsection shall have effect in relation to acquisitions on or after the relevant date.
(6) Section 160 of the 1992 Act shall be omitted; and this subsection shall have effect where the disposal of the old assets (or of the interest in them) is made on or after the relevant date or the acquisition of the new assets is made (or the acquisition of the interest in them is made or the unconditional contract for their acquisition is entered into) on or after the relevant date.
(7) The following provisions shall be omitted—
(a) in section 166(2) of the 1992 Act the words “or a company” and the words “or company”;
(b) in section 171(2) of that Act, paragraph (e) and the word “or” immediately preceding it;
(c) section 172(3)(a) of that Act;
and this subsection shall have effect in relation to disposals on or after the relevant date.
(8) In section 175(2) of the 1992 Act the words from “or a company which” to the end of paragraph (b) shall be omitted; and this subsection shall have effect where the disposal of the old assets (or of the interest in them) or the acquisition of the new assets (or of the interest in them) is made on or after the relevant date.
(9) Section 186 of the 1992 Act shall be omitted together with the following in section 187—
(a) in subsection (1)(a) the words “or 186”;
(b) in subsection (6) the words “or, as the case may be, section 186(2),” and the words “or, as the case may be, section 186(1)”;
and this subsection shall have effect where the company concerned becomes on or after the relevant date a company which falls to be regarded as mentioned in section 186(1) .
(10) Section 188 of the 1992 Act shall be omitted; and this subsection shall be deemed to have come into force on the relevant date.
(11) In section 211(3) of the 1992 Act the words “(and would not be a gain on which, under any double taxation relief arrangements, it would not be liable to tax)” shall be omitted; and this subsection shall have effect where the transfer is made on or after the relevant date.
(12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) Schedule 24 to this Act (which makes provision in connection with transfers and other disposals under or by virtue of the Railways Act 1993) shall have effect.
(2) Paragraphs 4(1) and 17 of that Schedule, and this section so far as relating to those provisions, shall be taken to have come into force on 5th November 1993 (the date on which the Railways Act 1993 was passed).
(3) Subject to subsection (2) above, this section and that Schedule shall be taken to have come into force on 11th January 1994.
Schedule 25 to this Act (which makes provision in connection with the transfer of the undertaking of Northern Ireland Airports Limited) shall have effect.
254 Practice and procedure in connection with appeals.
(1) Section 56B of the Taxes Management Act 1970 (regulations about practice and procedure in connection with appeals) shall be amended as follows.
(2) In subsection (2)(b) (documents to be made available for inspection by Commissioners or by officers of the Board) for “the Commissioners or by officers of the Board” there shall be substituted “ specified persons ”.
(3) The following subsection shall be inserted after subsection (2)—
(2A) In subsection (2)(b) above “specified persons” means such of the following as may be specified in the regulations—
(a) the Commissioners;
(b) any party to the appeal;
(c) officers of the Board.
(1) The provisions mentioned in subsection (2) below (which enable revenue traders and taxable persons to be required to keep records) shall be amended in accordance with subsections (3) and (4) below (which correct minor errors in those provisions so far as they relate to the admissibility in evidence of the recorded information).
(2) The provisions are—
(a) in the Customs and Excise Management Act 1979, section 118A; and
(b) in Schedule 7 to the Value Added Tax Act 1983, paragraph 7.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) Subsection (7) and sub-paragraph (6) of those provisions shall be omitted.
(1) In this Act “the Taxes Act 1988” means the Income and Corporation Taxes Act 1988.
(2) Part V of this Act shall be construed as one with Part I of the Oil Taxation Act 1975, and in Part V that Act is referred to as “the principal Act”.
(3) Part VI of this Act shall be construed as one with the Stamp Act 1891.
The enactments specified in Schedule 26 to this Act (which include provisions which are already spent) are hereby repealed to the extent specified in the third column of that Schedule, but subject to any provision of that Schedule.
SCHEDULE 1 Table of rates of duty on wine and made-wine
Section 1.
Part I Wine or made-wine of a strength not exceeding 22 per cent.
Description of wine or made-wine | Rates of duty per hectolitre
£
Wine or made-wine of a strength not exceeding 2 per cent. | 13.48
Wine or made-wine of a strength exceeding 2 per cent. but not exceeding 3 per cent. | 22.46
Wine or made-wine of a strength exceeding 3 per cent. but not exceeding 4 per cent. | 31.45
Wine or made-wine of a strength exceeding 4 per cent. but not exceeding 5 per cent. | 40.44
Wine or made-wine of a strength exceeding 5 per cent. but not exceeding 5.5 per cent. | 49.42
Wine or made-wine of a strength exceeding 5.5 per cent. but not exceeding 15 per cent. and not being sparkling | 134.77
Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent. but not exceeding 15 per cent. | 222.55
Wine or made-wine of a strength exceeding 15 per cent. but not exceeding 22 per cent. | 207.33
Part II Wine or made-wine of a strength exceeding 22 per cent.
Description of wine or made-wine | Rates of duty per litre of alcohol in the wine or made-wine
£
Wine or made-wine of a strength exceeding 22 per cent. | 19.81
SCHEDULE 3 Amendments about gaming machine licence duty
Section 6.
Licences for periods beginning on or after 1st May 1994
1 (1) The Betting and Gaming Duties Act 1981 shall be amended as follows.
(2) For section 21(3) (period of gaming machine licences) there is substituted—
(3) A gaming machine licence may be granted for a period of a month, or of any number of months not exceeding twelve, beginning on any day of any month
.
(3) Section 22(5) (rates of duty) is omitted.
(4) For section 23 (amount of duty) there is substituted—
Amount of duty.
23 (1) The amount of duty payable on a gaming machine licence shall be—
(a) the appropriate amount for the machine which it authorises, or
(b) if it authorises two or more machines, the aggregate of the appropriate amounts for each of those machines.
(2) The appropriate amount for each machine shall be determined in accordance with the following Table by reference to—
(a) the period for which the licence is granted, and
(b) whether the machine falls within column 2 or column 3 of the Table,
and references in this Part to a rate of gaming machine licence duty are references to the rate in column 2 or the rate in column 3.
TABLE
(1) Period (in months) for which licence granted | (2) Small prize or five-penny machines | (3) Other machines
1 | 50 | 125
2 | 90 | 230
3 | 130 | 335
4 | 170 | 435
5 | 210 | 540
6 | 245 | 630
7 | 290 | 735
8 | 330 | 840
9 | 365 | 930
10 | 405 | 1,035
11 | 425 | 1,090
12 | 450 | 1,150
(5) In section 24 (restrictions on number of licences)—
(a) subsection (2),
(b) in subsections (3) and (4), “such”, and
(c) in subsection (6)(a), the words from “or” at the end of sub-paragraph (i) to “greater”,
are omitted.
(6) In section 26 (supplementary provisions), in subsection (4)—
(a) “section 22(5) or” is omitted, and
(b) for “those provisions” there is substituted “ that provision ”.
(7) In Part II of Schedule 4 (supplementary provisions) for paragraphs 6 and 7 (applications and duration of licences) there is substituted—
6 An application for a gaming machine licence shall be made to the Commissioners in such form and manner as they may require.
7 The period for which a gaming machine licence is granted shall begin with the day on which application for the licence is received by the Commissioners or, if a later day is specified for that purpose in the application, with that day; and the licence shall expire at the end of that period.
(8) Paragraphs 9 to 11A of that Schedule (amendment, etc.) shall not apply at any time before 1st May 1994 to any licence in relation to which this paragraph has effect.
(9) This paragraph shall have effect in relation to gaming machine licences granted for any period beginning on or after 1st May 1994.
Special licences
2 No special licence (as defined in section 21(2) of the Betting and Gaming Duties Act 1981) may be granted for any period beginning on or after 1st May 1994.
3 (1) Accordingly, that Act shall be amended as follows.
(2) In section 21, for the words following “force” in subsection (1) to the end of subsection (2) there is substituted—
a licence granted under this Part of this Act with respect to the premises.
(2) Such a licence shall be known as a gaming machine licence
.
(3) Section 21A (special licences) is omitted.
(4) In section 24—
(a) in subsection (3), the words from “but” to the end are omitted, and
(b) in subsection (4), the words “or there are special licences in force with respect to those machines” are omitted.
(5) In paragraph 8 of Schedule 4 (transfer of licences), in sub-paragraph (1), for paragraphs (a) and (b) there is substituted “ transfer a gaming machine licence in respect of any premises to a successor in title to the interest in those premises of the person to whom the licence was granted ”.
(6) Paragraph 11(2) of that Schedule is omitted.
(7) In paragraph 12 of that Schedule (display of licence), for “an ordinary licence” there is substituted “ a gaming machine licence ”.
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) In paragraph 18 of that Schedule (forfeiture), for paragraphs (a) and (b) there is substituted “ those machines which are authorised by the gaming machine licence or licences produced to him ”.
(10) Paragraph 4(2) below shall cease to have effect.
(11) This paragraph shall come into force on 1st May 1995.
Seasonal licences
4 (1) In Part I of Schedule 4 to that Act (exemptions), for paragraph 4 (and the cross-heading preceding it) there shall be substituted—
Seasonal licences
4 (1) If at any time during March of any year there has previously been granted a seasonal licence for that year authorising the provision of any number of small-prize machines on any premises and that licence has not been surrendered, it shall be treated for the purposes of this Act as authorising the provision at that time of that number of small-prize machines on the premises.
(2) Where a seasonal licence is granted for any year authorising the provision of any number of small-prize machines on any premises, and the licence is not surrendered, it shall be treated for the purposes of this Act as authorising during October of that year the provision of that number of small-prize machines on the premises.
(3) Subject to sub-paragraph (4) below, in this Schedule “seasonal licence”, in relation to any year, means a gaming machine licence expressed to authorise only the provision of small-prize machines on any premises for the period of six months beginning with 1st April in that year.
(4) A licence in respect of any premises is not a seasonal licence in relation to any year if any gaming machine licence has been granted in respect of those premises for any period which includes the whole or any part of the preceding winter period.
(5) If in relation to any year—
(a) a seasonal licence is granted in respect of any premises, and
(b) another gaming machine licence is granted (whether before or after the grant of the seasonal licence or after the surrender of the seasonal licence) in respect of those premises for any period which includes the whole or any part of the following winter period (and does not include the whole or any part of the preceding winter period),
there shall (unless an amount has already become payable under this sub-paragraph in respect of the seasonal licence) be payable on the seasonal licence on the relevant date an additional amount of duty.
(6) The additional amount is the difference between the duty payable (apart from this paragraph) on that licence at the time it was granted and the amount that would have been so payable if the licence had been granted for a period of eight months or, in a case where the seasonal licence has been surrendered before the beginning of September, seven months.
(7) In sub-paragraph (5) above, the “relevant date” means—
(a) the date on which the seasonal licence is granted, or
(b) the date on which the other licence is granted,
whichever is the later.
(8) In this paragraph “winter period” means November to February.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) Sections 21(3) and 23 of that Act (as inserted by this Schedule) shall have effect for the purposes of paragraph 4(6) of that Schedule (as so inserted) in relation to gaming machine licences granted for the period of six months beginning with 1st April 1994.
(4) This paragraph shall have effect in relation to gaming machine licences granted for any period beginning on or after 1st April 1994.
Amendment and surrender of licences
5 (1) Part II of Schedule 4 to that Act shall be amended as follows.
(2) Paragraphs 9 and 10 (amendment of licences) are omitted.
(3) In paragraph 11 (surrender of licence), for sub-paragraph (1) there is substituted—
(1) The holder of a gaming machine licence may surrender it to the proper officer at any time.
(1A) On the surrender of the licence the holder shall be entitled to repayment of duty of the following amount.
(1B) That amount is the difference between—
(a) the amount of duty actually paid on the licence, and
(b) the amount (if less) that would have been paid if the period for which the licence was granted had been reduced by the number of complete months in that period which have not expired,
and for the purposes of this paragraph a seasonal licence is to be treated as granted for the period of eight months beginning with 1st March
.
(4) Paragraph 11A (reduction of duty in certain cases) is omitted.
(5) Sub-paragraph (3) above shall not apply to special licences; and sections 21(3) and 23 of that Act (as inserted by this Schedule) shall have effect for the purposes of paragraph 11(1B)(b) of that Schedule (as so inserted) in relation to gaming machine licences granted for any period beginning before 1st May 1994.
(6) This paragraph shall come into force on 1st May 1994.
Section 9.
Part I Contraventions under the Management Act
1 The Management Act shall be amended in accordance with the following provisions of this Part of this Schedule.
2 (1) In subsection (6) of section 92 (offence of making alteration in or addition to approved warehouse), for the words from “he shall be liable” onwards there shall be substituted “ the making of the alteration or addition shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
(2) For subsection (8) of that section (offence of contravening condition or direction given in connection with the approval of a warehouse) there shall be substituted the following subsection—
(8) Where any person contravenes or fails to comply with any condition imposed or direction given by the Commissioners under this section, his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).
3 In section 93(6) (offence of failing to comply with any warehousing regulations or with any condition, restriction or requirement imposed under any warehousing regulations), for the words from “he shall be liable” onwards there shall be substituted “ his failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
4 In section 100J (offence and forfeiture in the case of a contravention of REDS regulations), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any goods in respect of which any person contravenes any provision of any such regulations, or fails to comply with any such condition or restriction, shall be liable to forfeiture. ”
5 In section 101(4) (offence of failing to produce licence after being requested to do so)—
(a) for “a reasonable time” there shall be substituted “ one month ”; and
(b) for the words from “he shall be liable” onwards there shall be substituted “ his failure shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
6 (1) In subsection (2) of section 107 (offence of failing to display notice or comply with directions as to the form and manner of a notice), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
(2) In subsection (3) of that section (offence of affixing misleading notice), for the words from “he shall be liable” onwards there shall be substituted “ his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
7 In section 108(4) (offence of contravening directions in relation to premises etc. entered under the revenue trade provisions), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
8 (1) In subsection (1) of section 111 (using premises or article without having entered them), for the words from “he shall be liable” to the words “and any”, in the first place where they occur, there shall be substituted “ his use of the premises or article shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any ”.
(2) Subsection (2) of that section (fraudulent use of entered premises or article) shall cease to have effect.
9 In section 114(2) (offence of using prohibited substance or liquor), for the words from “he shall be liable” onwards there shall be substituted “ his use of that substance or liquor in that manner shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties); but section 10 of that Act (exception for cases of reasonable excuse) shall not apply in relation to conduct attracting a penalty by virtue of this subsection. ”
10 (1) In subsection (4) of section 115 (offence of tampering etc. with specimen)—
(a) for “any person other than an officer” there shall be substituted “ the revenue trader ”; and
(b) for the words from “he shall be liable” onwards there shall be substituted “ his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
(2) After that subsection there shall be inserted the following subsection—
(5) For the purposes of subsection (4) above and without prejudice to section 10(1) of the Finance Act 1994 (exception for cases of reasonable excuse), conduct by an employee of the revenue trader or by any other person entitled to act on the trader’s behalf in connection with his trade shall be deemed to be conduct by that trader except in so far as he took all reasonable steps to prevent it.
11 In section 116(3) (offence of failing to pay duty on demand), for the words from “the trader shall” onwards there shall be substituted “ the trader’s failure to pay the duty on demand shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) which shall be calculated by reference to the amount of the duty demanded and shall also attract daily penalties. ”
12 In section 118G (offences in connection with record keeping etc. by revenue traders), for the words from “he shall be liable” onwards there shall be substituted “ his failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) and, in the case of any failure to keep records, shall also attract daily penalties. ”
13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part II Contraventions under the Alcoholic Liquor Duties Act 1979
14 The Alcoholic Liquor Duties Act 1979 shall be amended in accordance with the following provisions of this Part of this Schedule.
15 In section 8(2) (offence of contravening condition of remission of duty on spirits used for medical or scientific purposes), for the words from “then” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
16 In section 10(2) (offence of contravening condition of remission of duty on spirits used in art or manufacture), for the words from “then” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
17 (1) In subsection (3) of section 13 (offence and forfeiture in the case of a contravention of regulations etc. applying to the manufacture of spirits)—
(a) for the words from “he shall” to “continues” there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) ”; and
(b) for the words from “in respect of which” onwards there shall be substituted “ in respect of which any person contravenes any such regulation, or fails to comply with any such regulation, condition, restriction or requirement, shall be liable to forfeiture. ”
(2) Subsection (4) of that section (power to vary penalty under subsection (3)) shall cease to have effect.
(3) In subsection (5) of that section (offence and forfeiture in the case of a contravention of any condition imposed with respect to any process of manufacture involving spirits), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any spirits in respect of which any person contravenes or fails to comply with any such condition shall be liable to forfeiture. ”
18 (1) In subsection (4) of section 15 ....
(2) For subsection (5) of that section there shall be substituted the following subsection—
(5) Where, after the approval of a distiller’s warehouse, the distiller by whom it is provided makes, without the previous consent of the Commissioners, an alteration in or addition to that warehouse, the making of the alteration or addition shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).
(3) In subsection (7) of that section (offence and forfeiture in the case of a contravention of regulations relating to a distiller’s warehouse), for the words from “he shall” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any spirits in respect of which any person contravenes any such regulation, or fails to comply with any such regulation or condition, shall be liable to forfeiture. ”
(4) Subsection (8) of that section (power to vary penalty under subsection (7)) shall cease to have effect.
19 (1) In subsection (2) of section 16 (offence and forfeiture in the case of a contravention of regulations relating to racking at a distillery), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any spirits in respect of which any person contravenes or fails to comply with any such regulation shall be liable to forfeiture. ”
(2) In subsection (3) of that section (forfeiture and offence in the case of an excess of stock), for the words from “the distiller shall be liable” onwards there shall be substituted “ there shall be deemed to have been conduct by the distiller attracting a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
20 In section 18(6) (rectifying or compounding spirits in contravention of an excise licence), for the words from “he shall be liable” onwards there shall be substituted “ his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
21 (1) In subsection (2) of section 19 (offence and forfeiture in the case of contraventions of obligations imposed by or under regulations relating to the rectifying etc. of spirits), for the words from “he shall” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any spirits and any other article in respect of which any person contravenes any such regulation, or fails to comply with any such regulation, condition, requirement or restriction, shall be liable to forfeiture. ”
(2) Subsection (3) of that section (power to vary penalty under subsection (2)) shall cease to have effect.
22 In each of subsections (1) and (2) of section 20 (forfeiture and offences in the case of an excess or deficiency of stock), for the words from “the rectifier shall be liable” onwards there shall be substituted “ there shall be deemed to have been conduct by the rectifier attracting a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26 (1) In subsection (1) of section 33 (offence and forfeiture in the case of the use of spirits relieved from spirits duty), in the words after paragraph (c), for the words from “he shall” to “greater” there shall be substituted “ his doing so shall, unless he has complied with the requirements specified in subsection (2) below, attract a penalty under section 9 of the Finance Act 1994 (civil penalties) ”.
(2) In subsection (5) of that section (contravention of enforcement regulations), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
27 For subsection (2) of section 34 (offence of contravening prohibition on grogging) there shall be substituted the following subsection—
(2) A contravention of this section shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).
28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29 In section 41A(8) (offence and forfeiture in the case of a contravention of a condition of registration), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any beer in respect of which any person contravenes or fails to comply with any such condition shall be liable to forfeiture. ”
30 In section 44(2) (offence of contravening condition imposed in connection with remission of duty on beer used for the purposes of research or experiment), for the words from “then” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
31 In section 46(2) (offence of contravening regulations relating to the remission of duty on spoilt beer), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
32 (1) In subsection (4) of section 47 (offence of failing to apply for registration as a brewer), for the words from “he shall be liable” to “scale;” there shall be substituted “ his failure shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) ”.
(2) In subsection (5) of that section (offence and forfeiture in the case of the production of beer by an unregistered person), for the words from “he shall be liable” onwards there shall be substituted “ his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) which shall be calculated by reference to the amount of duty charged on the beer produced, and the beer produced and any worts found on those premises shall be liable to forfeiture. ”
33 For subsection (3) of section 49 (offence and forfeiture in the case of a contravention of beer regulations) there shall be substituted the following subsection—
(3) Where any person contravenes or fails to comply with any regulation made under this section, his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any article or substance in respect of which any person contravenes or fails to comply with any such regulation shall be liable to forfeiture.
34 In section 54(5) (offence of producing wine on unlicensed premises), for the words from “he shall” to “and the wine” there shall be substituted “ his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) which shall be calculated by reference to the amount of duty charged on the wine produced, and the wine ”.
35 In section 55(6) (offence of producing made-wine on unlicensed premises), for the words from “he shall” to “and the made-wine” there shall be substituted “ his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) which shall be calculated by reference to the amount of duty charged on the made-wine produced, and the made-wine ”.
36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37 In section 56(2) (offence and forfeiture in the case of a contravention of regulations relating to wine and made-wine), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any article in respect of which any person contravenes or fails to comply with any such regulation shall be liable to forfeiture. ”
38 For subsection (2) of section 59 (offence of rendering wine or made-wine sparkling) there shall be substituted the following subsection—
(2) Where any person contravenes subsection (1) above or is concerned in such a contravention, his contravention or, as the case may be, his being so concerned shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).
39 In section 61(2) (offence of contravening regulations relating to the remission of duty on spoilt wine or made-wine), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
40 (1) In subsection (4) of section 62 (offence of producing cider on unlicensed premises), for the words from “he shall” to “and the cider” there shall be substituted “ his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) which shall be calculated by reference to the amount of duty charged on the cider made, and the cider ”.
(2) In subsection (6) of that section (offence and forfeiture in the case of a contravention of regulations made for the purposes of managing the duty on cider), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any article in respect of which any person contravenes or fails to comply with any such regulation shall be liable to forfeiture. ”
41 In section 64(2) (offence of contravening regulations relating to the remission of duty on spoilt cider), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
45 In section 75(5) (offence of unlicensed methylation of spirits)—
(a) for “Any person who” there shall be substituted “ Where any person ”; and
(b) for the words from “shall be liable” onwards there shall be substituted “ his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
46 (1) In subsection (3) of section 77 (offence of contravening regulations relating to methylated spirits or any condition, restriction or requirement imposed under any such regulations), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
(2) In subsection (4) of that section (offence of unlicensed dealing in methylated spirits), for the words from “he shall be liable” onwards there shall be substituted “ his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
(3) In subsection (5) of that section (forfeiture), for “an offence under subsection (3) or (4) above is committed” there shall be substituted “ there is such a contravention or failure to comply as is mentioned in subsection (3) above or any such dealing as is mentioned in subsection (4) above ”.
47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part III Contraventions under the Hydrocarbon Oil Duties Act 1979
49 The Hydrocarbon Oil Duties Act 1979 shall be amended in accordance with the following provisions of this Part of this Schedule.
50 (1) In subsection (3) of section 10 (offences in connection with use etc. of oil that has been relieved of duty for a purpose which does not qualify for relief)—
(a) for “A person who” there shall be substituted “ Where any person ”; and
(b) for the words from “shall be liable” to “greater” there shall be substituted “ his use or acquisition of the oil or, as the case may be, his becoming so liable shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) ”.
(2) In subsection (4) of that section (offence of supplying for a use that does not qualify for relief)—
(a) for “A person who” there shall be substituted “ Where any person ”;
(b) for the words from “shall be liable” to “greater, if” there shall be substituted “ and ”; and
(c) at the end there shall be inserted “ his supplying the oil shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) ”.
51 (1) In subsection (1) of section 13 (offences in connection with use etc. of heavy oil)—
(a) for “A person who” there shall be substituted “ Where any person ”; and
(b) for the words from “shall be liable” to “greater” there shall be substituted “ his use of the oil or, as the case may be, his becoming so liable shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) ”.
(2) In subsection (2) of that section (offence of supplying heavy oil for a use in contravention of section 12(2))—
(a) for “A person who” there shall be substituted “ Where any person ”;
(b) for the words from “shall be liable” to “greater, where” there shall be substituted “ and ”; and
(c) at the end there shall be inserted “ his supplying the oil shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
52 (1) In subsection (4) of section 14 (offences in connection with use etc. of oil in the case of which rebate has been allowed)—
(a) for “A person who” there shall be substituted “ Where any person ”; and
(b) for the words from “shall be liable” to “greater” there shall be substituted “ his use or acquisition of the oil or, as the case may be, his becoming so liable shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) ”.
(2) In subsection (5) of that section (offence of supplying for a use for which no rebate is allowed)—
(a) for “A person who” there shall be substituted “ Where any person ”;
(b) for the words from “shall be liable” to “greater, if” there shall be substituted “ and ”; and
(c) at the end there shall be inserted “ his supplying the oil shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
53 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
54 In section 20AA(4) (offence and forfeiture in the case of a contravention of the regulations relating to reliefs), for paragraph (a) there shall be substituted the following paragraph—
(a) his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties); and
.
55 In section 21(3) (offence and forfeiture in the case of a contravention of regulations relating to administration or enforcement)—
(a) for “A person who” there shall be substituted “ Where any person ”; and
(b) for the words from “shall be liable on” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any goods in respect of which any person contravenes or fails to comply with any such regulation shall be liable to forfeiture. ”
56 (1) In subsection (1) of section 22 (offence and forfeiture in the case of the use of fuel substitute for a chargeable purpose without duty having been paid)—
(a) for “A person who” there shall be substituted “ Where any person ”; and
(b) for the words from “shall be liable on” onwards there shall be substituted “ his putting the liquid to that use shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any goods in respect of which any person contravenes this subsection shall be liable to forfeiture. ”
(2) After that subsection there shall be inserted the following subsection—
(1A) Section 10 of the Finance Act 1994 (exception for cases of reasonable excuse) shall not apply in relation to conduct attracting a penalty by virtue of subsection (1) above.
57 (1) In subsection (1) of section 23 (offence and forfeiture in the case of the use etc. of road fuel gas without duty having been paid)—
(a) for “A person who” there shall be substituted “ Where any person ”; and
(b) for the words from “shall be liable on” onwards there shall be substituted “ his use of the road fuel gas or, as the case may be, his taking it as fuel into that vehicle shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any goods in respect of which a person contravenes this subsection shall be liable to forfeiture. ”
(2) After that subsection there shall be inserted the following subsection—
(1A) Section 10 of the Finance Act 1994 (exception for cases of reasonable excuse) shall not apply in relation to conduct attracting a penalty by virtue of subsection (1) above.
58 In section 24(4) (offence and forfeiture in the case of a contravention of regulations relating to incidental matters)—
(a) for “A person who” there shall be substituted “ Where any person ”; and
(b) for the words from “shall be liable on” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any goods in respect of which any person contravenes or fails to comply with any such regulation shall be liable to forfeiture. ”
Part IV Contraventions under the Tobacco Products Duty Act 1979
59 In section 7(2) of the Tobacco Products Duty Act 1979 (offence and forfeiture in the case of a contravention of regulations for the management of the duty etc.), for the words from “he shall be liable” onwards there shall be substituted “ his failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any article in respect of which any person fails to comply with any such regulation, or which is found on premises in respect of which any person has failed to comply with any such regulation, shall be liable to forfeiture. ”
Part V Contraventions under the Betting and Gaming Duties Act 1981
60 The Betting and Gaming Duties Act 1981 shall be amended in accordance with the following provisions of this Part of this Schedule.
61 In section 24(5) (offence where gaming machine provided without there being a licence in force)—
(a) for “any person who at the time when it is so provided” there shall be substituted “ the provision of the machine shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) and, for the purposes of the application of that section to the conduct attracting the penalty, the provision of the machine shall be treated as the conduct of each of the persons who, at the time when the gaming machine is provided ”; and
(b) the words after paragraph (f) shall be omitted.
62 (1) In paragraph 13 of Schedule 1 (enforcement), for sub-paragraphs (1) and (2) there shall be substituted—
(1) Where any person—
(a) fails to pay any general betting duty or pool betting duty payable by him, or
(b) contravenes or fails to comply with any of the provisions of, or of any regulations made under, any of paragraphs 2, 4 and 6 to 10 above,
his failure to pay, contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) which, in the case of a failure to pay, shall be calculated by reference to the amount of duty payable.
(2) Any such failure to pay as is mentioned in sub-paragraph (1)(a) above shall also attract daily penalties.
(2A) Any person who obstructs any officer in the exercise of his functions in relation to general betting duty or pool betting duty shall be guilty of an offence and liable on summary conviction to a penalty of level 4 on the standard scale.
(2) In paragraph 14(3) of that Schedule (offence of failing to produce permit within period reasonably required)—
(a) the word “reasonably” shall be omitted; and
(b) for the words from “he shall be guilty” onwards there shall be substituted “ his failure shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
(3) In paragraph 15 of that Schedule (forfeiture and cancellation of licence on second or subsequent conviction),—
(a) in sub-paragraph (1), for “paragraph 13(1) or (3) above” there shall be substituted “ paragraph 13(3) above ” and the words from “(not being” to “9 above)” shall be omitted; and
(b) in paragraph (a) of that sub-paragraph, for the words from “the conviction” to “other person)” there shall be substituted
there has been at least one previous occasion on which that or another person has been either—
(i) convicted of an offence under paragraph 13(3) above; or
(ii) assessed to a penalty to which he was liable under section 8 of the Finance Act 1994 (penalty for evasion),
in respect of conduct taking place
.
63 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
64 (1) In sub-paragraph (3) of paragraph 16 of Schedule 3 (offence of contravening provision made by or under that Schedule)—
(a) for “Any person who” there shall be substituted “ Where any person ”; and
(b) for the words after paragraph (b) there shall be substituted—
“ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
(2) Sub-paragraph (4) of that paragraph (continuing offences) shall cease to have effect.
65 (1) In sub-paragraph (1) of paragraph 16 of Schedule 4 (offence of contravening provision made by or under that Schedule), for the words from “he shall be guilty” onwards there shall be substituted “ his contravention, failure to comply or refusal shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
(2) Sub-paragraph (2) of that paragraph (continuing offences) shall cease to have effect.
Part VI Contraventions relating to lottery duty
66 Chapter II of Part I of the Finance Act 1993 shall be amended in accordance with the following provisions of this Part of this Schedule.
67 In section 27(4) (offence of failing to pay duty)—
(a) for “A person who” there shall be substituted “ Where a person ”; and
(b) for the words from “is guilty” onwards there shall be substituted “ his failure so to make the payment shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) which shall be calculated by reference to the amount which has not been paid and shall also attract daily penalties. ”
68 In each of sections 28(3) and 29(8) (offences of contravening regulations made for the purposes of lottery duty)—
(a) for “A person who” there shall be substituted “ Where a person ”; and
(b) for the words from “is guilty” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
Section 13A.
Taxation (Cross-border Trade) Act 2018
1 The following decisions so far as they are made under any provision made by or under Part 1 of the Taxation (Cross-border Trade) Act 2018, that is to say—
(a) any decision in relation to any goods as to whether or not the entry, unloading or transit of the goods, or their release by or to any person or for any purpose, is to be allowed or otherwise permitted;
(aa) any decision as to whether or not consent to the amendment or withdrawal of any Customs or other declaration is to be given;
(b) any decision as to whether or not permission for the examination of, or the taking of samples from, any goods presented to the Commissioners is to be granted;
(c) any decision as to the route to be used for the movement of any goods;
(d) any other decision as to whether or not the requirements of any procedure for goods which are to be or have been presented to the Commissioners, or any other formalities in relation to any such goods, have been satisfied or complied with or are to be waived, or as to the measures to be taken, including any requirements to be imposed, in consequence of the inability or other failure of any person to comply with the required procedure;
(e) any decision, in any particular case, as to whether or not any licence, authorisation or approval is to be granted to any person (whether in respect of any premises, place or area or anything else);
(f) any decision, in any particular case, as to whether or not the carrying out of any processing or other operations or the use of any procedure is to be, or to continue to be, authorised or approved;
(g) any decision in relation to—
(i) the establishment or operation of any warehouse or other facility, or
(ii) the construction of any building,
as to whether or not its establishment, operation or construction or the person by whom it is to be established, operated or constructed, is to be, or to continue to be, authorised or approved for any purpose;
(h) any decision consisting in the imposition of a requirement to supply information or assistance, or to furnish any document or other evidence, to the Commissioners or any officer or of a requirement to be present or represented when anything is done in relation to any goods;
(i) any decision to take or retain samples of any goods or as to the examination or analysis to which any goods or samples are to be subjected;
(j) any decision, in any particular case, as to whether or not a fee is to be charged to any person under regulations made under section 27 of the Taxation (Cross-border Trade) Act 2018 or as to the amount of any such fee;
(k) any decision as to whether or not collection of interest on arrears of customs duty or agricultural levy is to be waived;
(l) any decision, in relation to a decision mentioned in any of the preceding sub-paragraphs, as to the conditions subject to which the decision so mentioned is made or, as the case may be, the matters to which that decision relates have effect;
(m) any decision as to whether or not any person is to be required to give any security or other guarantee for the fulfilment, in whole or in part, of—
(i) any obligation to pay any customs duty or any agricultural levy of the European Union; or
(ii) any obligation to comply with a condition of any permission, designation, approval, authorisation or requirement mentioned in any of the preceding sub-paragraphs or with any provision for the purposes of which any decision falling within any of those sub-paragraphs is made,
or as to the form or amount of, or the conditions of, any such security or other guarantee;
(n) any decision as to the time at which or the period within which any obligation to pay any ... agricultural levy of the European Union ...;
(na) any decision as to the time at which or the period within which any obligation to pay any customs duty or to do any other thing required or authorised as a result of provision made by or under Part 1 of the Taxation (Cross-border Trade) Act 2018 is to be complied with;
(o) any decision as to whether or not a decision falling within this paragraph is to be varied, suspended or revoked, including a decision as to whether or not the time at which any such decision is to take effect is to be deferred , and a decision as to whether or not a licence, authorisation or approval is to be suspended or revoked or the terms of a licence, authorisation or approval are to be varied.
The Management Act
2 (1) The following decisions under or for the purposes of the Management Act, that is to say—
(a) any decision made under any regulations under section 20, 20B, 22 or 25 (approved wharf, approved aerodrome, examination station or temporary storage facility) —
(i) as to whether or not a mandatory condition is met; or
(ii) as to whether or not a discretionary condition is to be imposed, the terms of a discretionary condition or whether or not a discretionary condition is met;
and any reference to a mandatory condition is to a condition within subsection (1A)(a) of section 20, 22 or 25 , or subsection (2)(a) of section 20B, and any reference to a discretionary condition is to a condition within subsection (1A)(b) of section 20, 22 or 25 or subsection (2)(b) of section 20B;
(aa) any decision as to whether or not approval of an aerodrome under section 20B is to be given or withdrawn, or as to the conditions or restrictions under section 20B(3) subject to which any such approval is given;
(b) any decision as to whether or not any permission for any of the purposes of section 21 (control of movement of aircraft) is to be given or withdrawn or as to the conditions subject to which any such permission is given;
(c) any decision as to whether or not approval of a pipe-line for the purposes of section 24 (control of movement of goods by pipe-line) is to be given or withdrawn or as to the conditions subject to which any such approval is given;
(d) any decision as to whether or not expenses incurred by the Commissioners are to be borne by any person by virtue of section 29(3) (expenses of detention etc. of ships, aircraft and vehicles) or as to the amount of the expenses to be so borne;
(e) any decision consisting in the giving of a direction under section 30(1) (control of uncleared goods);
(f) any decision by virtue of subsection (2A) of section 31 (control of movement of goods) as to whether or not the requirements of any regulations under subsection (1) of that section are to be relaxed, as to whether or not substituted requirements are to be imposed or as to the terms of any such substituted requirements;
(g) any decision consisting in the imposition of a requirement by virtue of subsection (3) of section 33 (requirements as to record keeping) on a person in control of an aerodrome who is not licensed under any enactment relating to air navigation or as to what is or is not to be approved (whether or not in relation to such a requirement) for the purposes of paragraph (a) of that subsection;
(ga) any decision consisting in the imposition of a requirement by virtue of subsection (3A) of section 33 or as to what is or is not to be approved for the purposes of paragraph (a) of that subsection;
(h) any decision as to whether or not permission is to be given to any person for the purposes of section 39 (entry of surplus stores);
(i) any decision for the purposes of section 40 that any goods are to be deposited in a Queen’s warehouse;
(j) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(k) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(l) any decision for the purposes of section 63 (entry outwards) as to whether or not entry outwards is to be made of any ship or goods or as to the conditions subject to which any such entry outwards is to be made;
(m) any decision consisting in the imposition of a requirement under section 77, 79 or 80 to produce or furnish any document or other evidence or information;
(n) any decision for the purposes of section 92 (approval of warehouses)—
(i) as to whether or not any approval is to be given to any place as a warehouse or any consent is to be given to any alteration in or addition to any warehouse;
(ii) as to the conditions subject to which any approval or consent is given for the purposes of that section; or
(iii) for the withdrawal of any such approval or consent;
(o) any decision as to whether or not any amount is payable to the Commissioners in pursuance of section 99 (provision as to deposit in Queen’s warehouse) or as to the amount to be so paid by any person;
(p) any decision for the purposes of section 100G (registered excise dealers and shippers) as to whether or not, and in which respects, any person is to be, or to continue to be, approved and registered or as to the conditions subject to which any person is approved and registered;
(q) any decision as to the conditions subject to which any drawback is allowed or payable under section 132 or 134;
(r) any decision under section 152(b) as to whether or not anything forfeited or seized under the customs and excise Acts is to be restored to any person or as to the conditions subject to which any such thing is so restored;
(s) any decision under section 157 as to whether or not any person is to be required to give any security (or further security) for the observance of any condition, as to the form or amount of, or the conditions of, any such security or as to the cancellation of any bond , guarantee or other security ;
(t) any decision consisting in the giving or imposition of a direction or requirement for the purposes of section 158 (power to require the provision of facilities) or any decision as to whether or not an approval is to be given for the purposes of any such direction.
(2) Any decision which is made under or for the purposes of any regulations under any of sections 3, 31 or 93 of the Management Act (application to pipe-lines, control of movement of goods and warehousing regulations) and is-
(a) a decision in relation to any goods as to whether or not they may be moved, deposited, kept, secured, treated in any manner, removed or made available to any person or as to the conditions subject to which they are moved, deposited, kept, secured, treated in any manner, removed or made available to any person;
(b) a decision as to whether or not any person or place is to be, or to continue to be, authorised or approved in any respect for any purpose or as to the conditions subject to which any person or place is so authorised or approved; or
(c) a decision as to whether or not any person is to be required to give any security for the fulfilment of any obligation or as to the form or amount of, or the conditions of, any such security.
(3) Any decision which is made under or for the purposes of any regulations under section 35(4), 42 or 66 of the Management Act (report inwards, procedure in relation to goods on arrival etc. or in relation to goods for exportation) and is—
(a) a decision as to whether or not any permission is to be given for the purpose of dispensing with any of the requirements of any such regulations;
(b) a decision consisting in the imposition or variation of any requirement in exercise of any power conferred by any such regulations; or
(c) a decision as to whether or not any approval, authority or permission is to be given or granted for the purpose of determining the manner in which any requirement imposed by or under any such regulations is to be performed.
(3A) Any decision which is made under or for the purposes of any regulations under section 60A of the Management Act (power to make regulations about stores) and is a decision about granting or withdrawing authorisation for goods to be shipped or carried as stores without payment of duty or on drawback.
(4) Any decision which is made under or for the purposes of any regulations under section 127A of the Management Act (deferment of duty) and is—
(a) a decision as to whether or not any person or place is to be, or to continue to be, approved for any purpose connected with the deferment of duty or as to the conditions subject to which any person or place is so approved;
(b) a decision as to the amount of duty that may be deferred in any case; or
(c) a decision as to whether or not any person is to be required to give any security for the fulfilment of any obligation or as to the form or amount of, or the conditions of, any such security.
Part 2 of the Finance (No. 2) Act 2023 (alcohol duty)
3 (1) The following decisions under or for the purposes of Part 2 of the Finance (No. 2) Act 2023 (alcohol duty)—
(a) any decision as to whether or not any duty is to be remitted or repaid under section 73 (research and experiments) or 74 (spoilt alcoholic products) as to the conditions subject to which the duty is to be remitted or repaid;
(b) any decision—
(i) on a claim under section 75 for repayment of duty (alcoholic ingredients relief), or
(ii) as to whether or not to remit duty under that section;
(c) any decision for the purposes of section 76 (imported medical articles) or section 78 (authorised use for certain purposes) as to whether or not to recognise any article as used for medical purposes;
(d) any decision for the purposes of section 78 (authorised use for certain purposes)—
(i) as to the use to which any article is or is to be put, or as to the purposes for which it is or is to be used,
(ii) as to whether or not permission or authorisation for any person to receive, or for the delivery of, any spirits without payment of duty is to be granted or withdrawn, or
(iii) as to the conditions subject to which the permission or authorisation is granted;
(e) any decision for the purposes of section 79 (imported goods not for human consumption) as to whether or not any goods are for human consumption;
(f) any decision for the purposes of section 82 (approval requirement: producers) or 83 (supplementary provision about approvals)—
(i) as to whether or not, and in respect of which alcoholic products, premises or activities, an approval is given,
(ii) the period for which, or conditions subject to which, an approval is given,
(iii) as to the revocation or variation of an approval, or
(iv) as to whether a person is exempt from the approval requirement;
(g) any decision as to the application of an exemption under section 86 (mixing alcoholic products);
(h) any decision as to whether or not a licence for the purposes of section 91 (licence to manufacture and deal wholesale in denatured alcohol) is to be granted to a person, or as to the revocation or suspension of a licence for the purposes of that section;
(i) any decision for the purposes of any provision of Chapter 7 (wholesaling of controlled alcoholic products) as to whether or not, and in which respects, a person is to be, or to continue to be, approved and registered or as to the conditions or restrictions subject to which a person is to be approved and registered;
(j) any decision for the purposes of section 111 as to whether or not any drawback is to be set against an amount chargeable in respect of alcohol duty or as to the conditions subject to which drawback is set against that amount.
(2) Any decision which—
(a) is made under or for the purposes of any regulations under section 88 (alcoholic products regulations) of the Finance (No. 2) Act 2023, and
(b) is a decision as to whether or not a person is to be required to give security for the fulfilment of an obligation or as to the form or amount of, or the conditions of, the security.
(3) Any decision which is made under or for the purposes of any regulations under section 90 (denatured alcohol) or section 92 (regulations relating to denatured alcohol) of the Finance (No. 2) Act 2023 and is a decision—
(a) as to whether or not any process is to be, or to continue to be, approved for any purposes;
(b) as to the conditions subject to which the approval is given;
(c) as to the revocation or variation of an approval;
(d) as to whether or not a person is to be required to give security for the fulfilment of an obligation or as to the form or amount of, or the conditions of, the security.
(4) Any decision which—
(a) is made under paragraph 1 of Schedule 3 to the Finance Act 2001, and
(b) relates to Part 2 of the Finance (No. 2) Act 2023.
The Hydrocarbon Oil Duties Act 1979
4 (1) The following decisions under or for the purposes of the Hydrocarbon Oil Duties Act 1979—
(a) any decision under section 9 (delivery of oil for home use etc.) as to whether or not permission is to be given for the delivery of anything without payment of duty or as to the conditions subject to which any such permission is given;
(b) any decision as to whether or not a consent is to be given for the purposes of section 10(1) (consent to certain uses of oil delivered for home use) or as to the conditions subject to which any such consent is given;
(c) any decision as to whether or not a consent is to be given for the purposes of section 14(2) (consent to certain uses of rebated oil) or as to the conditions subject to which any such consent is given;
(d) any decision consisting in a determination for the purposes of section 17(3) (determination of use of oil etc. for different purposes);
(e) any decision as to the conditions subject to which any payment is to be made to any person in accordance with section 20(3) (payments in respect of contaminated or mixed substances).
(1A) Any decision which is made under or for the purposes of any regulations made under section 20AA of the Hydrocarbon Oil Duties Act 1979 and is a decision as to whether or not relief is to be allowed.
(2) Any decision which is made under or for the purposes of any regulations made or having effect as if made under section 21 or 24 of the Hydrocarbon Oil Duties Act 1979 and is—
(a) a decision as to whether or not any person is to be required to give any security for any duty which is or may become due, or as to the form or amount of, or the conditions of, any such security; or
(b) a decision as to whether or not any person is to be, or to continue to be, approved for the purposes of section 9(1) or (4), 14(1) or 19A(1) of that Act or as to the conditions subject to which any person is so approved.
(3) Any decision which—
(a) is made under paragraph 1 or 2 of Schedule 3 to the Finance Act 2001, and
(b) relates to the Hydrocarbon Oil Duties Act 1979.
The Tobacco Products Duty Act 1979
5 Any decision which is made under or for the purposes of any regulations made under section 2 or 7 of the Tobacco Products Duty Act 1979 and is—
(a) a decision as to whether or not any duty is remitted or repaid or as to the conditions subject to which it is remitted or repaid; or
(b) a decision as to whether or not any premises are to be, or to continue to be, registered for any purpose or as to the conditions subject to which any premises are so registered.
5A Any decision—
(a) to refuse an approval under section 8L of the Tobacco Products Duty Act 1979 (raw tobacco: approval to carry on a controlled activity);
(b) to impose a condition or restriction on, or to revoke or vary the terms of, an approval under that section.
Part 4 of FA 2026 (vaping products duty)
5B Any decision as to whether or not any person is to be, or continues to be, approved under section 122 or 123 of FA 2026.
The Betting and Gaming Duties Act 1981
6 (1) The following decisions under or for the purposes of the Betting and Gaming Duties Act 1981, that is to say—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) any decision under paragraph 10(2) of Schedule 3 (registration of bingo promoters) as to the conditions subject to which any person is to be, or to continue to be, registered as a bingo-promoter.
(2) Any decision which is made under or for the purposes of—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) paragraph 10(2) of Schedule 3 to the Betting and Gaming Duties Act 1981 ,
and is a decision as to whether or not any person is to be required to give any security for any duty which is or may become due, or as to the form or amount of, or the conditions of, any such security.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Finance Act 1993
7 Any decision as to whether or not any person is to be or to continue to be registered under section 29 of the Finance Act 1993 (registration for the purposes of lottery duty) and any decision which is made under or for the purposes of any regulations under that section and is a decision as to whether or not any person is to be required to give any security for the payment of any lottery duty that may become due, or as to the form or amount of, or the conditions of, any such security.
Chapter III of Part I of this Act
8 (1) Any decision made under or for the purposes of any regulations under section 21 of this Act or for the purposes of subsection (2) of that section which is—
(a) a decision consisting in the imposition or variation of any requirement as to the records which are to be kept by any person;
(b) a decision as to the manner in which any record or information is to be preserved or is to be made available to the Commissioners; or
(c) a decision as to the period for which any record or information is to be preserved.
(2) Any decision for the purposes of section 23 of this Act which is—
(a) a decision consisting in the imposition or variation of any requirement as to the information or documents which are to be furnished or produced by any person, including any decision as to the time or place at which, period within which or form in which anything is to be furnished or produced in pursuance of that section; or
(b) a decision as to the removal of any document produced under that section or as to the period for which such a document may be removed.
Chapter IV of Part I of this Act
9 The following decisions under or for the purposes of Chapter IV of Part I of this Act, that is to say—
(a) any decision under regulations made by virtue of section 33 to register, or not to register, any person as an aircraft operator in the register kept under that section or to remove a person so registered from the register;
(b) any decision under such regulations to show, or not to show, the name of any person as a fiscal representative in that register or to remove a name from the register;
(c) any decision under section 36 to require a person to provide security, including any decision as to the form or amount of the security; . . .
(d) any decision to give a person a notice under section 37.
(e) any decision with respect to the amount of any interest specified in an assessment under paragraph 11A of Schedule 6;
...
9ZA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Finance Act 2001
9A Any decision under or for the purposes of Part 2 of Schedule 3 to the Finance Act 2001 (interest).
The Finance (No. 2) Act 2017
9B Any decision for the purposes of Part 3 of the Finance (No. 2) Act 2017 (imported goods fulfilment businesses) as to—
(a) whether or not, and in which respects, any person is to be, or to continue to be, approved and registered, or
(b) the conditions or restrictions subject to which any person is approved and registered.
Interpretation of Schedule
10 (1) In this Schedule references to any decision as to the conditions subject to which any other decision (whether or not specified in this Schedule) is made include references to—
(a) any decision as to whether the other decision should be made subject to or to the imposition of any conditions, limitations, restrictions, prohibitions or other requirements, either from the time when the other decision takes effect or in exercise of any power to impose them subsequently;
(b) any decision as to the terms of any conditions, limitations, restrictions, prohibitions or other requirements imposed or applied in relation to that other decision;
(c) any decision as to the period for which any licence, approval, permission or other authorisation to which the other decision relates is to have effect or as to any variation of that period; and
(d) any decision as to whether any conditions, limitations, restrictions, prohibitions or other requirements so imposed or applied are to be revoked, suspended or cancelled or as to whether or in what respect their terms are at any time to be varied;
but those references do not include references to any decision as to the enforcement of any condition, restriction or prohibition in criminal proceedings, by the seizure or forfeiture of goods or, for purposes connected with any duty of excise, by any other means.
(2) References in this Schedule to decisions as to the exercise of any power to require security for the fulfilment of any obligation, the observance of any conditions or the payment of any duty shall be without prejudice to any reference to decisions as to the exercise of any general power in the case in question to impose conditions in connection with the making of any other decision and shall include references to the exercise of any power to require further security for the fulfilment of that obligation, the observance of those conditions or, as the case may be, the payment of that duty.
Part 1 Part 1 territories
Albania | Finland | Latvia | Portugal (including Madeira)
Algeria | France (including Corsica) | Libya | Romania
Andorra | Germany | Liechtenstein | Russian Federation, west of the Urals
Austria | Gibraltar | Lithuania | San Marino
Azores | Greece | Luxembourg | Serbia
Belarus | Greenland | North Macedonia | Slovak Republic
Belgium | Guernsey | Malta | Slovenia
Bosnia and Herzegovina | Hungary | Moldova | Spain (including the Balearic Islands and the Canary Islands)
Bulgaria | Iceland | Monaco | Sweden
Croatia | Republic of Ireland | Montenegro | Switzerland
Cyprus | Isle of Man | Morocco | Tunisia
Czechia | Italy (including Sicily and Sardinia) | Netherlands | Turkey
Denmark (including the Faroe Islands) | Jersey | Norway (including Svalbard) | Ukraine
Estonia | Republic of Kosovo | Poland | Western Sahara
Part 1A Part 1A territories
Afghanistan | Cuba | Kyrgyzstan | Senegal
Angola | Curacao | Lebanon | Seychelles
Anguilla | Djibouti | Liberia | Sierra Leone
Antigua and Barbuda | Dominica | Macau | Sint Eustatius
Armenia | Dominican Republic | Malawi | Sint Maarten
Aruba | Egypt | Maldives | Somalia
Azerbaijan | El Salvador | Mali | South Korea
Bahrain | Equatorial Guinea | Martinique | South Sudan
Bangladesh | Eritrea | Mauritania | Sri Lanka
Barbados | Ethiopia | Mayotte | St Helena, Ascension and Tristan da Cunha
Belize | French Guiana | Mongolia | St Kitts and Nevis
Benin | Gabon | Montserrat | Sudan
Bermuda | Georgia | Namibia | Suriname
Bhutan | Ghana | Nepal | Syria
Bonaire | Grenada | Nicaragua | Tajikistan
Botswana | Guadeloupe | Niger | Tanzania
Brazil | Guatemala | Nigeria | The Bahamas
British Virgin Islands | Guinea | North Korea | The Gambia
Burkina Faso | Guinea-Bissau | Oman | Togo
Burundi | Guyana | Pakistan | Trinidad and Tobago
Cameroon | Haiti | Panama | Turkmenistan
Canada | Honduras | Qatar | Turks and Caicos Islands
Cape Verde | India | Russian Federation, east of the Ural Mountains | Uganda
Cayman Islands | Iran | Rwanda | United Arab Emirates
Central African Republic | Iraq | Saba | United States (including Puerto Rico and U.S. Virgin Islands)
Chad | Israel | Saint Barthélemy | Uzbekistan
China | Ivory Coast | Saint Lucia | Venezuela
Colombia | Jamaica | Saint Martin | Yemen
Comoros | Jordan | Saint Pierre and Miquelon | Zambia
Congo | Kazakhstan | Saint Vincent and the Grenadines | Zimbabwe
Congo (Democratic Republic) | Kenya | Sao Tome and Principe
Costa Rica | Kuwait | Saudi Arabia
SCHEDULE 6 Air passenger duty: administration and enforcement
Section 40.
Application of excise enactments
1 (1) The Customs and Excise Management Act 1979 shall have effect for the purposes of Chapter IV of Part I of this Act in relation to—
(a) any person who is or is liable to be registered,
(b) any fiscal representative, and
(c) any handling agent where a notice given to him under section 37 of this Act is effective,
as it has effect in relation to revenue traders, but with the modifications mentioned in sub-paragraph (2), and paragraphs 3 and 4, below.
(2) That Act shall have effect, in relation to any person to whom sub-paragraph (1) above applies, as if—
(a) the reference in section 112(1) (power of entry) to vehicles included aircraft,
(b) section 116 (payment of duty) were omitted,
(c) in section 117 (execution and distress)—
(i) the references to goods liable to any excise duty included tickets, and
(ii) the references to the trade in respect of which duty is imposed were to the trade or business by virtue of which sub-paragraph (1) above applies to him, and
(d) any power under section 118B(1)(b) to require any person who is or is liable to be registered to produce or cause to be produced any such documents as are referred to in that subsection included power to require his fiscal representative to produce them.
2 Section 118B of that Act shall have effect for the purposes of Chapter IV of Part I of this Act in relation to any person who, in the course of a trade or business carried on by him, issues or arranges for the issue of tickets as if—
(a) he were a revenue trader, and
(b) the references to services supplied by or to him in the course or furtherance of a business were to services supplied by or to him in the course of issuing or arranging for the issue of tickets.
3 (1) A notice may require any person to whom paragraph 1 above applies to furnish, at specified times and in the specified form, any such information to the Commissioners as he could be required by the Commissioners to furnish under subsection (1) of section 118B; and any such requirement shall have effect as a requirement under that subsection.
(2) A notice may require any person to whom paragraph 1 or 2 above applies to produce or cause to be produced for inspection by an officer, at specified places and times, any such documents as he could be required by the officer to produce under that subsection; and any such requirement shall have effect as a requirement under that subsection.
(3) In this paragraph—
“notice” means a notice published, and not withdrawn, by the Commissioners, and
“specified” means specified in such a notice.
4 In relation to any person to whom paragraph 1 or 2 above applies—
(a) that Act shall have effect as if “document” had the same meaning as in Chapter IV of Part I of this Act, and
(b) that Act and this Schedule shall have effect as if any reference to the production of any document, in the case of information recorded otherwise than in legible form, were to producing a copy of the information in legible form.
Information
5 (1) Any person having the management of an airport shall, if required to do so by the Commissioners—
(a) give notice to the Commissioners, within such time and in such form as they may reasonably require, stating whether or not he holds or has at any time held any information relating to the matters mentioned in sub-paragraph (3) below and, if he does or has done, stating the general nature of the information, and
(b) furnish to the Commissioners, within such time and in such form as they may reasonably require, such information relating to such matters as they may reasonably specify.
(2) Any such person shall, if required to do so by an officer, produce any documents relating to those matters, or cause them to be produced, for inspection by that officer.
(3) The matters referred to in sub-paragraphs (1) and (2) above are—
(a) whether or not any aircraft is a chargeable aircraft,
(b) who is the operator of any aircraft,
(c) whether or not any person is a handling agent of the operator of any aircraft, and
(d) whether or not any duty is payable on the carriage of any person and, if so, the amount of duty.
(4) Documents produced under sub-paragraph (2) above shall be produced, at such time as the officer may reasonably require, at the principal place of business of the person required to produce them or cause them to be produced or at such other place as the officer may reasonably require.
(5) An officer may take copies of, or make extracts from, any document produced under this paragraph.
(6) If it appears to an officer to be necessary to do so, he may, at a reasonable time and for a reasonable period, remove any document produced under this paragraph.
(7) Where an officer removes a document under sub-paragraph (6) above, then—
(a) if the person from whom it is removed so requests, the officer shall give him a receipt for the document,
(b) if the document is reasonably required for the proper conduct of any business, the officer shall, as soon as practicable, provide a copy of the document, free of charge, to the person by whom it was produced or caused to be produced, and
(c) if the document is lost or damaged, the Commissioners shall be liable to compensate the owner for any expenses reasonably incurred by him in replacing or repairing it.
(8) Any reference in this paragraph to the production of a document, in the case of information recorded otherwise than in legible form, is to producing a copy of the information in legible form.
(9) Any failure by a person having the management of an airport to comply with a requirement imposed under this paragraph shall attract a penalty under section 9 of this Act.
Application of Chapter II
6 An appeal which relates to duty shall not be entertained under section 16 of this Act at any time if any return for an accounting period to which the appeal relates which the appellant is required by regulations made by virtue of section 38 of this Act to make has not at that time been made.
Interest payable to Commissioners
7 (1) Where an assessment of duty due from any person (“the person assessed”) is made under section 12 of this Act and any of the conditions in sub-paragraph (2) below is fulfilled, the whole of the amount assessed shall, subject to paragraph 8 below, carry interest at the rate applicable under section section 197 of the Finance Act 1996 from the reckonable date until payment.
(2) The conditions are—
(a) that the assessment relates to an accounting period in respect of which either a return has previously been made or an earlier assessment has already been notified to the person assessed, or
(b) that the assessment relates to an accounting period which exceeds one month and begins on the date on which the person assessed was, or became liable to be, registered.
(3) In a case where—
(a) the circumstances are such that an assessment of duty due from any person could have been made and, if it had been made, the conditions in sub-paragraph (2) above would have been fulfilled, but
(b) before such an assessment was made the duty was paid (so that no such assessment was necessary),
the whole of the amount paid shall carry interest at the rate applicable under section 197 of the Finance Act 1996 from the reckonable date until the date on which it was paid.
(4) In this paragraph and paragraph 8 below the “reckonable date” means the latest date on which a return is required to be made under Chapter IV of Part I of this Act for the accounting period to which the amount assessed or paid relates; and interest under this paragraph shall run from the reckonable date even if that date is a non-business day, within the meaning of section 92 of the Bills of Exchange Act 1882.
(5) Interest under this paragraph shall be paid without any deduction of income tax.
8 (1) Where on an appeal by any person (“the appellant”) to a tribunal under section 16 of this Act against an assessment of duty—
(a) it is found that the whole or any part of the duty was due from him, and
(b) the amount due, or any part of that amount, has not been paid and no cash security has been given for it,
that amount or, as the case may be, that part of it shall carry interest at the rate applicable under section 197 of the Finance Act 1996 from the reckonable date until payment.
(2) In sub-paragraph (1) above, “cash security” means such adequate security as enables the Commissioners to place the amount in question on deposit.
(3) Interest under this paragraph shall be paid without any deduction of income tax.
Interest payable by the Commissioners
9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest: specified rate
11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assessment of interest
11A (1) Where by virtue of paragraph 7 above duty due from any person for an accounting period carries interest, the Commissioners may assess that person to an amount of interest in accordance with this paragraph.
(2) Notice of the assessment shall be given to the person liable for the interest or a representative of his.
(3) The amount of the interest shall be calculated by reference to a period ending on a date (“the due date”) no later than the date of the notice.
(4) The notice shall specify—
(a) the amount of the duty which carries the interest assessed (“the specified duty”);
(b) the amount of the interest assessed (“the specified interest”);
(c) the due date; and
(d) a date by which that amount is required to be paid (“the payment date”).
(5) Sub-paragraphs (6) and (7) below apply where the specified duty or any part of it is unpaid on the date of the notice.
(6) If the unpaid amount or any part of it is paid by the payment date, the payment shall be treated for the purposes of paragraph 7 above as made on the due date.
(7) To the extent that the unpaid amount is not paid by the payment date, an assessment may be made under this paragraph in respect of any interest on the unpaid amount which accrues after the due date.
(8) For the purposes of sub-paragraphs (6) and (7) above, a payment—
(a) which purports to be a payment of the unpaid amount or any part of it, but
(b) which is insufficient to discharge both the liability to pay the unpaid amount and the liability to pay the specified interest,
shall be treated as made in discharge (or partial discharge) of the liability to pay the specified interest before it is treated as discharging to any extent the liability to pay the unpaid amount.
(9) A notice of interest assessed under this paragraph may be combined in one document with notification of an assessment under section 12 of this Act which relates to the specified duty.
(10) A notice which is so combined must comply with the requirements of this paragraph which relate to a notice which is not so combined.
(11) The specified interest shall be recoverable as if it were duty due from the person assessed to that interest.
(12) For the purposes of this paragraph a person is a representative of another if—
(a) he is that other’s personal representative;
(b) he is that other’s trustee in bankruptcy or is a receiver or liquidator appointed in relation to that other or in relation to any of his property; or
(c) he is a person acting in some other representative capacity in relation to that other.
Evidence by certificate
12 (1) A certificate of the Commissioners—
(a) that a person was or was not, on any date specified in the certificate, registered or liable to be registered under section 33 of this Act,
(b) that the name of any person was or was not, on any date so specified, shown as the fiscal representative of any person in the register kept under that section,
(c) that any aircraft was or was not, on any date so specified, a chargeable aircraft,
(d) that any return required to be made under regulations made by virtue of section 38 of this Act had not, on any date so specified, been made, or
(e) that any duty shown as due in such a return, or in an assessment under section 12 of this Act, had not, on any date so specified, been paid,
shall be sufficient evidence of that fact until the contrary is proved.
(2) A photograph of any document furnished to the Commissioners for the purposes of Chapter IV of Part I of this Act and certified by them to be such a photograph shall be admissible in any proceedings, whether civil or criminal, to the same extent as the document itself.
(3) Any document purporting to be a certificate under sub-paragraph (1) or (2) above shall be taken to be such a certificate until the contrary is proved.
Preferential debt
13 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) In Schedule 4 to the Insolvency (Northern Ireland) Order 1989 (categories of preferential debts) in Category 2 (debts due to Customs and Excise) after paragraph 5B there shall be inserted—
5C Any amount which is due by way of air passenger duty from the debtor at the relevant date and which became due within the period of six months next before that date.
SCHEDULE 6A Premiums liable to tax at the higher rate
Section 51A.
Part I Interpretation
1 (1) In this Schedule—
“insurance-related service” means any service which is related to, or connected with, insurance;
“supply” includes all forms of supply; and “supplier” shall be construed accordingly.
(2) For the purposes of this Schedule, any question whether a person is connected with another shall be determined in accordance with section 1122 of the Corporation Tax Act 2010 .
Part II Descriptions of premium
Insurance relating to motor cars or motor cycles
2 (1) Subject to paragraph 5, a premium under a taxable insurance contract relating to a motor car or motor cycle falls within this paragraph if—
(a) the contract is arranged through a person falling within sub-paragraph (2) below, or
(b) the insurer under the contract is a person falling within that sub-paragraph,
unless the insurance is provided to the insured free of charge.
(2) A person falls within this sub-paragraph if—
(a) he is a supplier of motor cars or motor cycles;
(b) he is connected with a supplier of motor cars or motor cycles; or
(c) he pays—
(i) the whole or any part of the premium received under the taxable insurance contract, or
(ii) a fee connected with the arranging of that contract,
to a supplier of motor cars or motor cycles or to a person who is connected with a supplier of motor cars or motor cycles.
(2A) A premium does not fall within this paragraph if it is—
(a) payable under a taxable insurance contract relating to a motor car or motor cycle which is supplied by way of sale, and
(b) attributable to cover of the kind generally known as—
(i) fully comprehensive,
(ii) third party, fire and theft, or
(iii) third party.
(3) Where a taxable insurance contract relating to a motor car or motor cycle is arranged through a person who is connected with a supplier of motor cars or motor cycles, the premium does not fall within this paragraph by virtue only of sub-paragraph (2)(b) above except to the extent that the premium is attributable to cover for a risk which relates to a motor car or motor cycle supplied by a supplier of motor cars or motor cycles with whom that person is connected.
(4) Where the insurer under a taxable insurance contract relating to a motor car or motor cycle is connected with a supplier of motor cars or motor cycles, the premium does not fall within this paragraph by virtue only of sub-paragraph (2)(b) above except to the extent that the premium is attributable to cover for a risk which relates to a motor car or motor cycle supplied by a supplier of motor cars or motor cycles with whom the insurer is connected.
(5) For the purposes of this paragraph, the cases where insurance is provided to the insured free of charge are those cases where no charge (whether by way of premium or otherwise) is made—
(a) in respect of the taxable insurance contract, or
(b) at or about the time when the taxable insurance contract is made and in connection with that contract, in respect of any insurance-related service,
by any person falling within sub-paragraph (2) above to any person who is or becomes the insured (or one of the insured) under the contract or to any person who acts, otherwise than in the course of a business, for or on behalf of such a person.
(6) In this paragraph—
“motor car” and “motor cycle” have the meaning given—
by section 185(1) of the Road Traffic Act 1988; or
in Northern Ireland, by Article 3(1) of the Road Traffic (Northern Ireland) Order 1995;
“sale”, in relation to a motor car or motor cycle, means—
a sale under which title to the motor car or motor cycle passes to the purchaser immediately on purchase, or
a sale pursuant to a hire purchase agreement (within the meaning of the Consumer Credit Act 1974) under which it is intended at the outset of the agreement that the title to the motor car or motor cycle is to pass to the purchaser, whether on conclusion of the agreement or at the end of a period specified in the agreement.
“supplier” does not include an insurer who supplies a car or motor cycle as a means of discharging liabilities arising by reason of a claim under an insurance contract.
Insurance relating to domestic appliances etc.
3 (1) Subject to paragraph 5, a premium under a taxable insurance contract relating to relevant goods falls within this paragraph if—
(a) the contract is arranged through a person falling within sub-paragraph (2) below, or
(b) the insurer under the contract is a person falling within that sub-paragraph,
unless the insurance is provided to the insured free of charge.
(2) A person falls within this sub-paragraph if—
(a) he is a supplier of relevant goods;
(b) he is connected with a supplier of relevant goods; or
(c) he pays—
(i) the whole or any part of the premium received under the taxable insurance contract, or
(ii) a fee connected with the arranging of that contract,
to a supplier of relevant goods or to a person who is connected with a supplier of relevant goods.
(3) Where a taxable insurance contract relating to relevant goods is arranged through a person who is connected with a supplier of relevant goods, the premium does not fall within this paragraph by virtue only of sub-paragraph (2)(b) above except to the extent that the premium is attributable to cover for a risk which relates to relevant goods supplied by a supplier of relevant goods with whom that person is connected.
(4) Where the insurer under a taxable insurance contract relating to relevant goods is connected with a supplier of relevant goods, the premium does not fall within this paragraph by virtue only of sub-paragraph (2)(b) above except to the extent that the premium is attributable to cover for a risk which relates to relevant goods supplied by a supplier of relevant goods with whom the insurer is connected.
(5) For the purposes of this paragraph, the cases where insurance is provided to the insured free of charge are those cases where no charge (whether by way of premium or otherwise) is made—
(a) in respect of the taxable insurance contract, or
(b) at or about the time when the taxable insurance contract is made and in connection with that contract, in respect of any insurance-related service,
by any person falling within sub-paragraph (2) above to any person who is or becomes the insured (or one of the insured) under the contract or to any person who acts, otherwise than in the course of a business, for or on behalf of such a person.
(6) In this paragraph—
“relevant goods” means any electrical or mechanical appliance of a kind—
which is ordinarily used in or about the home; or
which is ordinarily owned by private individuals and used by them for the purposes of leisure, amusement or entertainment;
“supplier” does not include an insurer who supplies relevant goods as a means of discharging liabilities arising by reason of a claim under an insurance contract.
(7) In sub-paragraph (6) above—
“appliance” includes any device, equipment or apparatus;
“the home” includes any private garden and any private garage or private workshop appurtenant to a dwelling.
Insurance provided by divided company
3A (1) A premium under a taxable insurance contract relating to a motor car or motor cycle also falls within paragraph 2 above if—
(a) the insurance to be provided under the contract is provided by a divided company, and
(b) any division of that company would, if it were a separate company, be a person connected with a supplier of motor cars or motor cycles.
(2) A premium under a taxable insurance contract relating to relevant goods also falls within paragraph 3 above if—
(a) the insurance to be provided under the contract is provided by a divided company, and
(b) any division of that company would, if it were a separate company, be a person connected with a supplier of relevant goods.
(3) Sub-paragraph (1) or (2) above does not apply if the insurance is provided to the insured free of charge.
(4) A premium falls within paragraph 2 above by virtue of this paragraph only to the extent that it is attributable to cover for a risk which relates to a motor car or motor cycle supplied by a supplier of motor cars or motor cycles with whom the division in question would, if it were a separate company, be connected.
(5) A premium falls within paragraph 3 above by virtue of this paragraph only to the extent that it is attributable to cover for a risk which relates to relevant goods supplied by a supplier of relevant goods with whom the division would, if it were a separate company, be connected.
(6) For the purposes of this paragraph—
(a) a company is a “divided company” if under the law under which the company is formed, under the company’s constitution or under arrangements entered into by or in relation to the company—
(i) some or all of the assets of the company are available primarily, or only, to meet particular liabilities of the company, and
(ii) some or all of the members of the company, and some or all of its creditors, have rights primarily, or only, in relation to particular assets of the company;
(b) a “division” of such a company means an identifiable part of it (by whatever name known) that carries on distinct business activities and to which particular assets and liabilities of the company are primarily or wholly attributable.
(7) In this paragraph “provided to the insured free of charge” has the meaning given by sub-paragraph (5) of paragraph 2 or 3 above.
In determining for this purpose whether a divided company by whom insurance is provided is a person falling within sub-paragraph (2) of paragraph 2 or 3 above, the company shall be treated as connected with any person with whom a division of that company would be connected if it were a separate company.
(8) Other expressions defined for the purposes of paragraph 2 or 3 above have the same meaning in this paragraph.
Travel insurance
4 (1) A premium under a taxable insurance contract falls within this paragraph if it is in respect of the provision of cover against travel risks for a person travelling.
(2) Where—
(a) a contract of insurance provides cover against both travel risks and risks other than travel risks,
(b) the premium attributable to the cover against travel risks does not exceed 10 per cent. of the total premium payable under the contract, and
(c) the contract does not provide cover for a person travelling against travel risks falling within two or more of the paragraphs of sub-paragraph (3) below,
the premium, so far as attributable to the cover against travel risks, does not fall within this paragraph by virtue of sub-paragraph (1) above.
(3) The travel risks mentioned in sub-paragraph (2)(c) above are—
(a) liability in respect of cancellation of travel or of accommodation arranged in connection with travel;
(b) delayed or missed departure;
(c) curtailment of travel or of the use of accommodation arranged in connection with travel;
(d) loss or delayed arrival of baggage;
(e) personal injury or illness or expenses of repatriation.
(4) A premium does not fall within this paragraph by virtue of sub-paragraph (1) above if it is payable under a taxable insurance contract relating to a motor vehicle and is attributable to cover of the kind generally known as—
(a) fully comprehensive,
(b) third party, fire and theft,
(c) third party, or
(d) roadside assistance,
or if it is payable under a taxable insurance contract relating to a caravan, boat or aircraft and is attributable to cover of a description broadly corresponding to any of those set out in paragraphs (a) to (d) above (so far as applicable) provided in respect of the caravan, boat or aircraft for a period of at least one month for the person travelling.
(5) In this paragraph—
“person travelling” includes a person intending to travel;
“travel risks” means risks associated with, or related to, travel or intended travel—
outside the United Kingdom,
by air within the United Kingdom,
within the United Kingdom in connection with travel falling within paragraph (a) or (b) above, or
which involves absence from home for at least one night,
or risks to which a person travelling may be exposed during, or at any place at which he may be in the course of, any such travel.
Insurance relating to motor cars, motor cycles, domestic appliances, etc provided at a discount
5. (1) This paragraph applies where (apart from this paragraph) a premium would fall within paragraph 2 or 3 but the insurance is provided to the insured at less than its full cost.
(2) For the purposes of this paragraph the cases where the insurance is provided to the insured at less than its full cost are those cases where the amount charged in respect of the taxable insurance contract by any person falling within sub-paragraph (2) of paragraph 2 or 3 to any person who is or becomes the insured under the contract is less than the premium.
(3) Only so much of the premium as does not exceed the amount charged falls within paragraph 2 or 3.
Section 64.
Part I Information
Records
1 (1) Regulations may require registrable persons to keep records.
(2) Regulations under sub-paragraph (1) above may be framed by reference to such records as may be specified in any notice published by the Commissioners in pursuance of the regulations and not withdrawn by a further notice.
(3) Regulations may —
(a) require any records kept in pursuance of the regulations to be preserved for such period not exceeding six years as may be specified in the regulations.
(b) authorise the Commissioners to direct that any such records need only be preserved for a shorter period than that specified in the regulations, and
(c) authorise a direction to be made so as to apply generally or in such cases as the Commissioners may stipulate.
(4) A duty under the regulations to preserve records may be discharged—
(a) by preserving them in any form and by any means, or
(b) by preserving the information contained in them in any form and by any means,
subject to any conditions or exceptions specified in writing by the Commissioners.
Other provisions
2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part II Powers
Entry, arrest, etc.
4 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Order for access to recorded information etc.
4A (1) Where, on an application by an authorised person, a justice of the peace or, in Scotland, a justice (within the meaning of section 462 of the Criminal Procedure (Scotland) Act 1975) is satisfied that there are reasonable grounds for believing—
(a) that an offence in connection with tax is being, has been or is about to be committed, and
(b) that any recorded information (including any document of any nature whatsoever) which may be required as evidence for the purpose of any proceedings in respect of such an offence is in the possession of any person,
he may make an order under this paragraph.
(2) An order under this paragraph is an order that the person who appears to the justice to be in possession of the recorded information to which the application relates shall—
(a) give an authorised person access to it, and
(b) permit an authorised person to remove and take away any of it which he reasonably considers necessary,
not later than the end of the period of 7 days beginning on the date of the order or the end of such longer period as the order may specify.
(3) The reference in sub-paragraph (2)(a) above to giving an authorised person access to the recorded information to which the application relates includes a reference to permitting the authorised person to take copies of it or to make extracts from it.
(4) Where the recorded information consists of information stored in any electronic form , an order under this paragraph shall have effect as an order to produce the information in a form in which it is visible and legible or from which it can readily be produced in a visible and legible form and, if the authorised person wishes to remove it, in a form in which it can be removed.
(5) This paragraph is without prejudice to paragraphs 3 and 4 above.
Removal of documents etc.
5 (1) An authorised person who removes anything in the exercise of a power conferred by or under paragraph 4 or 4A above shall, if so requested by a person showing himself—
(a) to be the occupier of premises from which it was removed, or
(b) to have had custody or control of it immediately before the removal,
provide that person with a record of what he removed.
(2) The authorised person shall provide the record within a reasonable time from the making of the request for it.
(3) Subject to sub-paragraph (7) below, if a request for permission to be allowed access to anything which—
(a) has been removed by an authorised person, and
(b) is retained by the Commissioners for the purposes of investigating an offence,
is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed or by someone acting on behalf of such a person, the officer shall allow the person who made the request access to it under the supervision of an authorised person.
(4) Subject to sub-paragraph (7) below, if a request for a photograph or copy of any such thing is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed, or by someone acting on behalf of such a person, the officer shall—
(a) allow the person who made the request access to it under the supervision of an authorised person for the purpose of photographing it or copying it, or
(b) photograph or copy it, or cause it to be photographed or copied.
(5) Subject to sub-paragraph (7) below, where anything is photographed or copied under sub-paragraph (4)(b) above the officer shall supply the photograph or copy, or cause it to be supplied, to the person who made the request.
(6) The photograph or copy shall be supplied within a reasonable time from the making of the request.
(7) There is no duty under this paragraph to allow access to, or to supply a photograph or copy of, anything if the officer in overall charge of the investigation for the purposes of which it was removed has reasonable grounds for believing that to do so would prejudice—
(a) that investigation,
(b) the investigation of an offence other than the offence for the purposes of the investigation of which the thing was removed, or
(c) any criminal proceedings which may be brought as a result of the investigation of which he is in charge or any such investigation as is mentioned in paragraph (b) above.
(8) Any reference in this paragraph to the officer in overall charge of the investigation is a reference to the person whose name and address are endorsed on the warrant concerned as being the officer so in charge.
6 (1) Where, on an application made as mentioned in sub-paragraph (2) below, the appropriate judicial authority is satisfied that a person has failed to comply with a requirement imposed by paragraph 5 above, the authority may order that person to comply with the requirement within such time and in such manner as may be specified in the order.
(2) An application under sub-paragraph (1) above shall be made—
(a) in the case of a failure to comply with any of the requirements imposed by sub-paragraphs (1) and (2) of paragraph 5 above, by the occupier of the premises from which the thing in question was removed or by the person who had custody or control of it immediately before it was so removed, and
(b) in any other case, by the person who had such custody or control.
(3) In this paragraph “the appropriate judicial authority” means—
(a) in England and Wales, a magistrates’ court;
(b) in Scotland, the sheriff;
(c) in Northern Ireland, a court of summary jurisdiction, as defined in Article 2(2)(a) of the Magistrates’ Court (Northern Ireland) Order 1981.
(4) In England and Wales and Northern Ireland, an application for an order under this paragraph shall be made by way of complaint; and sections 21 and 42(2) of the Interpretation Act (Northern Ireland) 1954 shall apply as if any reference in those provisions to any enactment included a reference to this paragraph.
Part III Recovery
Recovery of tax etc.
7 (1) Tax due from any person shall be recoverable as a debt due to the Crown.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) In the Insolvency (Northern Ireland) Order 1989, in Article 346(1) (preferential debts) the words “ insurance premium tax ” shall be inserted after “VAT” and in Schedule 4 (categories of preferential debts) the following paragraph shall be inserted after paragraph 3—
3A Any insurance premium tax which is referable to the period of 6 months next before the relevant date (which period is referred to below as “the 6-month period”).
For the purposes of this paragraph—
(a) where the whole of the accounting period to which any insurance premium tax is attributable falls within the 6-month period, the whole amount of that tax is referable to that period; and
(b) in any other case the amount of any insurance premium tax which is referable to the 6-month period is the proportion of the tax which is equal to such proportion (if any) of the accounting period in question as falls within the 6-month period;
and references here to accounting periods shall be construed in accordance with Part III of the Finance Act 1994.
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recovery of overpaid tax
8 (1) Where a person has paid an amount to the Commissioners by way of tax which was not tax due to them, they shall be liable to repay the amount to him.
(2) The Commissioners shall only be liable to repay an amount under this paragraph on a claim being made for the purpose.
(3) It shall be a defence, in relation to a claim under this paragraph, that repayment of an amount would unjustly enrich the claimant.
(4) The Commissioners shall not be liable, on a claim made under this paragraph, to repay any amount paid to them more than 4 years before the making of the claim.
(6) A claim under this paragraph shall be made in such form and manner and shall be supported by such documentary evidence as may be prescribed by regulations.
(7) Except as provided by this paragraph, the Commissioners shall not be liable to repay an amount paid to them by way of tax by virtue of the fact that it was not tax due to them.
Part IV Penalties
Criminal offences
9 (1) A person is guilty of an offence if—
(a) being a registrable person, he is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion of tax by him or another registrable person, or
(b) not being a registrable person, he is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion of tax by a registrable person.
(2) Any reference in sub-paragraph (1) above to the evasion of tax includes a reference to the obtaining of a payment under regulations under section 55(3)(c) or (d) or (f) of this Act.
(3) A person is guilty of an offence if with the requisite intent—
(a) he produces, furnishes or sends, or causes to be produced, furnished or sent, for the purposes of this Part of this Act any document which is false in a material particular, or
(b) he otherwise makes use for those purposes of such a document;
and the requisite intent is intent to deceive or to secure that a machine will respond to the document as if it were a true document.
(4) A person is guilty of an offence if in furnishing any information for the purposes of this Part of this Act he makes a statement which he knows to be false in a material particular or recklessly makes a statement which is false in a material particular.
(5) A person is guilty of an offence by virtue of this sub-paragraph if his conduct during any specified period must have involved the commission by him of one or more offences under the preceding provisions of this paragraph; and the preceding provisions of this sub-paragraph apply whether or not the particulars of that offence or those offences are known.
(6) A person is guilty of an offence if—
(a) he enters into a taxable insurance contract, or
(b) he makes arrangements for other persons to enter into a taxable insurance contract,
with reason to believe that tax in respect of the contract will be evaded.
(7) A person is guilty of an offence if he enters into taxable insurance contracts without giving security (or further security) he has been required to give under paragraph 24 below.
Criminal penalties
10 (1) A person guilty of an offence under paragraph 9(1) above shall be liable—
(a) on summary conviction, to a penalty of £20,000 or of three times the amount of the tax, whichever is the greater, or to imprisonment for a term not exceeding six months or to both;
(b) on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding 14 years or to both.
(2) The reference in sub-paragraph (1) above to the amount of the tax shall be construed, in relation to tax itself or a payment falling within paragraph 9(2) above, as a reference to the aggregate of—
(a) the amount (if any) falsely claimed by way of credit, and
(b) the amount (if any) by which the gross amount of tax was falsely understated.
(3) A person guilty of an offence under paragraph 9(3) or (4) above shall be liable—
(a) on summary conviction, to a penalty of £20,000 or, where sub-paragraph (4) below applies, to the alternative penalty there specified if it is greater, or to imprisonment for a term not exceeding six months or to both;
(b) on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding 14 years or to both.
(4) In a case where—
(a) the document referred to in paragraph 9(3) above is a return required under this Part of this Act, or
(b) the information referred to in paragraph 9(4) above is contained in or otherwise relevant to such a return,
the alternative penalty is a penalty equal to three times the aggregate of the amount (if any) falsely claimed by way of credit and the amount (if any) by which the gross amount of tax was understated.
(5) A person guilty of an offence under paragraph 9(5) above shall be liable—
(a) on summary conviction, to a penalty of £20,000 or (if greater) three times the amount of any tax that was or was intended to be evaded by his conduct, or to imprisonment for a term not exceeding six months or to both;
(b) on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding 14 years or to both;
and paragraph 9(2) and sub-paragraph (2) above shall apply for the purposes of this sub-paragraph as they apply respectively for the purposes of paragraph 9(1) and sub-paragraph (1) above.
(6) A person guilty of an offence under paragraph 9(6) above shall be liable on summary conviction to a penalty of £20,000 or three times the amount of the tax, whichever is the greater.
(7) A person guilty of an offence under paragraph 9(7) above shall be liable on summary conviction to a penalty of £20,000.
(8) In this paragraph—
(a) “credit” means credit for which provision is made by regulations under section 55 of this Act;
(b) “the gross amount of tax” means the total amount of tax due before taking into account any deduction for which provision is made by regulations under section 55(3) of this Act.
Criminal proceedings etc.
11 Sections 145 to 155 of the Customs and Excise Management Act 1979 (proceedings for offences, mitigation of penalties and certain other matters) shall apply in relation to offences under paragraph 9 above and penalties imposed under paragraph 10 above as they apply in relation to offences and penalties under the customs and excise Acts as defined in that Act.
Civil penalties
12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15 (1) This paragraph applies if a person fails to comply with—
(a) a requirement imposed by regulations made under section 54 of this Act to pay the tax due in respect of any period within the time required by the regulations, or
(b) a requirement imposed by regulations made under that section to furnish a return in respect of any period within the time required by the regulations;
and sub-paragraphs (2) and (3) below shall have effect subject to sub-paragraphs (5) and (6) below and paragraph 25(7) below.
(2) The person shall be liable to a penalty equal to 5 per cent. of the tax due or, if it is greater, to a penalty of £250.
(3) The person—
(a) shall be liable, in addition to an initial penalty under sub-paragraph (2) above, to a penalty of £20 for every relevant day when he fails to pay the tax or furnish the return, but
(b) shall not in respect of the continuation of the failure be liable to further penalties under sub-paragraph (2) above;
and a relevant day is any day falling after the time within which the tax is required to be paid or the return is required to be furnished.
(4) For the purposes of sub-paragraph (2) above the tax due—
(a) shall, if the person concerned has furnished a return, be taken to be the tax shown in the return as that for which he is accountable in respect of the period in question, and
(b) shall, in any other case, be taken to be such tax as has been assessed for that period and notified to him under section 56(1) of this Act.
(5) A failure falling within sub-paragraph (1) or (3) above shall not give rise to liability to a penalty under this paragraph if the person concerned satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the failure.
(6) Where, by reason of a failure falling within sub-paragraph (1) or (3) above—
(a) a person is convicted of an offence (whether under this Part of this Act or otherwise), or
(b) a person is assessed to a penalty under paragraph 12 above or to a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007 (penalties for errors) ,
that failure shall not also give rise to liability to a penalty under this paragraph.
(7) If it appears to the Treasury that there has been a change in the value of money since the passing of this Act or, as the case may be, the last occasion when the power conferred by this sub-paragraph was exercised, they may by order substitute for the sums for the time being specified in sub-paragraphs (2) and (3) above such other sums as appear to them to be justified by the change.
(8) An order under sub-paragraph (7) above shall not apply in relation to a failure which began before the date on which the order comes into force.
16 (1) This paragraph applies where—
(a) by virtue of regulations made under section 65 of this Act a liability notice (within the meaning of that section) is served on an insured person,
(b) by virtue of such regulations that person is liable to pay an amount of tax which has been assessed in accordance with the regulations, and
(c) that tax is not paid within the time required by the regulations;
and sub-paragraphs (2) and (3) below shall have effect subject to sub-paragraphs (4) and (5) below and paragraph 25(7) below.
(2) The person shall be liable to a penalty equal to 5 per cent. of the tax assessed as mentioned in sub-paragraph (1) above or, if it is greater, to a penalty of £250.
(3) The person—
(a) shall be liable, in addition to an initial penalty under sub-paragraph (2) above, to a penalty of £20 for every relevant day when the tax is unpaid, but
(b) shall not in respect of the continuation of the non-payment of the tax be liable to further penalties under sub-paragraph (2) above;
and a relevant day is any day falling after the time within which the tax is required to be paid.
(4) A person shall not be liable to a penalty by virtue of this paragraph if he satisfies the Commissioners or, on appeal, an appeal tribunal that he took all reasonable steps to ensure that the tax mentioned in sub-paragraph (1)(b) above was paid within the time required by the regulations.
(5) Where, by reason of a failure to pay tax, a person is convicted of an offence (whether under this Part of this Act or otherwise), that failure shall not also give rise to liability to a penalty under this paragraph.
(6) If it appears to the Treasury that there has been a change in the value of money since the passing of this Act or, as the case may be, the last occasion when the power conferred by this sub-paragraph was exercised, they may by order substitute for the sums for the time being specified in sub-paragraphs (2) and (3) above such other sums as appear to them to be justified by the change.
(7) An order under sub-paragraph (6) above shall not apply in relation to any failure to pay tax that was required to be paid before the date on which the order comes into force.
17 (1) If a person fails to comply with—
(a) section 53(3) of this Act,
(b) ...or
(c) a requirement imposed by any regulations made under this Part of this Act, other than a requirement falling within sub-paragraph (2) below,
he shall be liable to a penalty of £250; but this is subject to sub-paragraphs (3) and (4) below.
(2) A requirement falls within this sub-paragraph if it is—
(a) a requirement imposed by regulations made under section 54 of this Act to pay the tax due in respect of any period within the time required by the regulations,
(b) a requirement imposed by regulations made under that section to furnish a return in respect of any period within the time required by the regulations,
(c) a requirement imposed by regulations made under section 65 of this Act to pay tax within the time required by the regulations, or
(d) a requirement specified for the purposes of this sub-paragraph by regulations.
(3) A failure falling within sub-paragraph (1) above shall not give rise to liability to a penalty under this paragraph if the person concerned satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the failure.
(4) Where by reason of a failure falling within sub-paragraph (1) above—
(a) a person is convicted of an offence (whether under this Part of this Act or otherwise), or
(b) a person is assessed to a penalty under paragraph 12 above or to a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007 (penalties for errors) ,
that failure shall not also give rise to liability to a penalty under this paragraph.
(5) If it appears to the Treasury that there has been a change in the value of money since the passing of this Act or, as the case may be, the last occasion when the power conferred by this sub-paragraph was exercised, they may by order substitute for the sum for the time being specified in sub-paragraph (1) above such other sum as appears to them to be justified by the change.
(6) An order under sub-paragraph (5) above shall not apply in relation to a failure which began before the date on which the order comes into force.
18 (1) A person who—
(a) by virtue of subsection (3), (7) or (9) of section 57 of this Act becomes subject to a duty to take action as mentioned in subsection (4) of that section, and
(b) fails to take action as so mentioned,
shall be liable to a penalty of £10,000; but this is subject to sub-paragraph (2) below.
(2) A failure falling within sub-paragraph (1) above shall not give rise to liability to a penalty under this paragraph if the person concerned satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the failure.
(3) If it appears to the Treasury that there has been a change in the value of money since the passing of this Act or, as the case may be, the last occasion when the power conferred by this sub-paragraph was exercised, they may by order substitute for the sum for the time being specified in sub-paragraph (1) above such other sum as appears to them to be justified by the change.
(4) An order under sub-paragraph (3) above shall not apply in relation to a case where the duty mentioned in sub-paragraph (1) above was imposed before the date on which the order comes into force.
18A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19 (1) This paragraph applies where—
(a) in accordance with regulations under section 51 of the Finance Act 1997 (enforcement by distress) a distress is authorised to be levied on the goods and chattels of a person (a person in default) who has refused or neglected to pay any tax due from him or any amount recoverable as if it were tax due from him, and
(b) the person levying the distress and the person in default have entered into a walking possession agreement.
(2) For the purposes of this paragraph a walking possession agreement is an agreement under which, in consideration of the property distrained upon being allowed to remain in the custody of the person in default and of the delaying of its sale, the person in default—
(a) acknowledges that the property specified in the agreement is under distraint and held in walking possession, and
(b) undertakes that, except with the consent of the Commissioners and subject to such conditions as they may impose, he will not remove or allow the removal of any of the specified property from the premises named in the agreement.
(3) Subject to sub-paragraph (4) below, if the person in default is in breach of the undertaking contained in a walking possession agreement, he shall be liable to a penalty equal to half of the tax or other amount referred to in sub-paragraph (1)(a) above.
(4) The person in default shall not be liable to a penalty under sub-paragraph (3) above if he satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the breach in question.
(5) This paragraph extends only to Northern Ireland.
20 For the purposes of paragraphs ... 15(5), 17(3)... and 19(4) above—
(a) an insufficiency of funds available for paying any amount is not a reasonable excuse, and
(b) where reliance is placed on any other person to perform any task, neither the fact of that reliance nor any conduct of the person relied upon is a reasonable excuse.
Part V Interest
Interest on tax etc.
21 (1) Where an assessment is made under any provision of section 56 of this Act, the whole of the amount assessed shall carry interest at the rate applicable under section 197of the Finance Act 1996 from the reckonable date until payment; but this is subject to sub-paragraph (2) and paragraph 25(7) below.
(2) Sub-paragraph (1) above shall not apply in relation to an assessment under section 56(1) of this Act unless at least one of the following conditions is fulfilled, namely—
(a) that the assessment relates to an accounting period in respect of which either a return has previously been made, or an earlier assessment has already been notified to the person concerned;
(b) that the assessment relates to an accounting period which exceeds three months and begins on the date with effect from which the person was, or was required to be, registered under this Part of this Act.
(3) In a case where—
(a) the circumstances are such that a relevant assessment could have been made, but
(b) before such an assessment was made the tax due or other amount concerned was paid (so that no such assessment was necessary),
the whole of the amount paid shall carry interest at the rate applicable under section 197 of the Finance Act 1996 from the reckonable date until the date on which it was paid; and for the purposes of this sub-paragraph a relevant assessment is an assessment in relation to which sub-paragraph (1) above would have applied if the assessment had been made.
(4) The references in sub-paragraphs (1) and (3) above to the reckonable date shall be construed as follows—
(a) where the amount assessed or paid is such an amount as is referred to in subsection (2) of section 56 of this Act, the reckonable date is the seventh day after the day on which a written instruction was issued by the Commissioners directing the making of the payment of the amount which ought not to have been paid to the person concerned;
(b) in all other cases the reckonable date is the latest date on which (in accordance with regulations under this Part of this Act) a return is required to be made for the accounting period to which the amount assessed or paid relates;
and interest under this paragraph shall run from the reckonable date even if that date is a non-business day, within the meaning of section 92 of the Bills of Exchange Act 1882.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) Interest under this paragraph shall be paid without any deduction of income tax.
Interest payable by Commissioners
22 (1) Where, due to an error on the part of the Commissioners, a person—
(a) has paid to them by way of tax an amount which was not tax due and which they are in consequence liable to repay to him,
(b) has failed to claim payment of an amount to the payment of which he was entitled in pursuance of provision made under section 55(3)(c), (d) or (f) of this Act, or
(c) has suffered delay in receiving payment of an amount due to him from them in connection with tax,
then, if and to the extent that they would not be liable to do so apart from this paragraph, they shall (subject to the following provisions of this paragraph) pay interest to him on that amount for the applicable period.
(1A) In sub-paragraph (1) above—
(a) the reference in paragraph (a) to an amount which the Commissioners are liable to repay in consequence of the making of a payment that was not due is a reference to only so much of that amount as is the subject of a claim that the Commissioners are required to satisfy or have satisfied; and
(b) the amounts referred to in paragraph (c) do not include any amount payable under this paragraph.
(2) Interest under this paragraph shall be payable at the rate applicable under sectioin 197 of the Finance Act 1996
(3) The applicable period, in a case falling within sub-paragraph (1)(a) above, is the period—
(a) beginning with the date on which the payment is received by the Commissioners, and
(b) ending with the date on which they authorise payment of the amount on which the interest is payable.
(4) The applicable period, in a case falling within sub-paragraph (1)(b) or (c) above, is the period—
(a) beginning with the date on which, apart from the error, the Commissioners might reasonably have been expected to authorise payment of the amount on which the interest is payable, and
(b) ending with the date on which they in fact authorise payment of that amount.
(5) In determining the applicable period for the purposes of this paragraph there shall be left out of account any period by which the Commissioners’ authorisation of the payment of interest is delayed by the conduct of the person who claims the interest.
(5A) The reference in sub-paragraph (5) above to a period by which the Commissioners’ authorisation of the payment of interest is delayed by the conduct of the person who claims it includes, in particular, any period which is referable to—
(a) any unreasonable delay in the making of the claim for interest or in the making of any claim for the payment or repayment of the amount on which interest is claimed;
(b) any failure by that person or a person acting on his behalf or under his influence to provide the Commissioners—
(i) at or before the time of the making of a claim, or
(ii) subsequently in response to a request for information by the Commissioners,
with all the information required by them to enable the existence and amount of the claimant’s entitlement to a payment or repayment, and to interest on that payment or repayment, to be determined; and
(c) the making, as part of or in association with either—
(i) the claim for interest, or
(ii) any claim for the payment or repayment of the amount on which interest is claimed,
of a claim to anything to which the claimant was not entitled.
(6) In determining for the purposes of sub-paragraph (5A) above whether any period of delay is referable to a failure by any person to provide information in response to a request by the Commissioners, there shall be taken to be so referable, except so far as may be provided for by regulations, any period which—
(a) begins with the date on which the Commissioners require that person to provide information which they reasonably consider relevant to the matter to be determined; and
(b) ends with the earliest date on which it would be reasonable for the Commissioners to conclude—
(i) that they have received a complete answer to their request for information;
(ii) that they have received all that they need in answer to that request; or
(iii) that it is unnecessary for them to be provided with any information in answer to that request.
(8) The Commissioners shall only be liable to pay interest under this paragraph on a claim made in writing for that purpose.
(9) A claim under this paragraph shall not be made more than 4 years after the end of the applicable period to which it relates.
(10) References in this paragraph to the authorisation by the Commissioners of the payment of any amount include references to the discharge by way of set-off of the Commissioners’ liability to pay that amount.
23 (1) In a case where—
(a) any interest is payable by the Commissioners to a person on a sum due to him under this Part of this Act, and
(b) he is a person to whom regulations under section 55 of this Act apply,
the interest shall be treated as an amount to which he is entitled by way of credit in pursuance of the regulations.
(2) Sub-paragraph (1) above shall be disregarded for the purpose of determining a person’s entitlement to interest or the amount of interest to which he is entitled.
Part VI Miscellaneous
Security for tax
24 Where it appears to the Commissioners requisite to do so for the protection of the revenue they may require a registrable person, as a condition of his entering into taxable insurance contracts, to give security (or further security) of such amount and in such manner as they may determine for the payment of any tax which is or may become due from him.
Assessments to penalties etc.
25 (1) Where a person is liable—
(a) to a penalty under any of paragraphs 12 to 19 above, or
(b) for interest under paragraph 21 above,
the Commissioners may, subject to sub-paragraph (2) below, assess the amount due by way of penalty or interest (as the case may be) and notify it to him accordingly; and the fact that any conduct giving rise to a penalty under any of paragraphs 12 to 19 above may have ceased before an assessment is made under this paragraph shall not affect the power of the Commissioners to make such an assessment.
(2) In the case of the penalties and interest referred to in the following paragraphs of this sub-paragraph, the assessment under this paragraph shall be of an amount due in respect of the accounting period which in the paragraph concerned is referred to as the relevant period—
(a) in the case of a penalty under paragraph 12 above relating to the evasion of tax, the relevant period is the accounting period for which the tax evaded was due;
(b) in the case of a penalty under paragraph 12 above relating to the obtaining of a payment under regulations under section 55(3)(c) or (d) or (f) of this Act, the relevant period is the accounting period in respect of which the payment was obtained;
(c) in the case of interest under paragraph 21 above, the relevant period is the accounting period in respect of which the tax (or amount assessed as tax) was due.
(3) In a case where the amount of any penalty or interest falls to be calculated by reference to tax which was not paid at the time it should have been and that tax cannot be readily attributed to any one or more accounting periods, it shall be treated for the purposes of this Part of this Act as tax due for such period or periods as the Commissioners may determine to the best of their judgment and notify to the person liable for the tax and penalty or interest.
(4) Where a person is assessed under this paragraph to an amount due by way of any penalty or interest falling within sub-paragraph (2) above and is also assessed under subsection (1) or (2) of section 56 of this Act for the accounting period which is the relevant period under sub-paragraph (2) above, the assessments may be combined and notified to him as one assessment, but the amount of the penalty or interest shall be separately identified in the notice.
(5) Sub-paragraph (6) below applies in the case of—
(a) an amount due by way of penalty under paragraph 15 or 16 above;
(b) an amount due by way of interest under paragraph 21 above.
(6) Where this sub-paragraph applies in the case of an amount—
(a) a notice of assessment under this paragraph shall specify a date, being not later than the date of the notice, to which the aggregate amount of the penalty or, as the case may be, the amount of interest which is assessed is calculated, and
(b) if the penalty or interest continues to accrue after that date, a further assessment or further assessments may be made under this paragraph in respect of amounts which so accrue.
(7) If, within such period as may be notified by the Commissioners to the person liable to the penalty under paragraph 15 or 16 above or for the interest under paragraph 21 above—
(a) a failure falling within paragraph 15(3) above is remedied,
(b) the tax referred to in paragraph 16(1) above is paid, or
(c) the amount referred to in paragraph 21(1) above is paid,
it shall be treated for the purposes of paragraph 15, 16 or 21 above (as the case may be) as remedied or paid on the date specified as mentioned in sub-paragraph (6)(a) above.
(8) Where an amount has been assessed and notified to any person under this paragraph it shall be recoverable as if it were tax due from him unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.
(9) Subsection (8) of section 56 of this Act shall apply for the purposes of this paragraph as it applies for the purposes of that section.
Assessments: time limits
26 (1) Subject to the following provisions of this paragraph, an assessment under—
(a) any provision of section 56 of this Act, or
(b) paragraph 25 above,
shall not be made more than 4 years after the relevant event .
(1A) In this paragraph “the relevant event”, in relation to an assessment, means—
(a) the end of the accounting period concerned, or
(b) in the case of an assessment under paragraph 25 of an amount due by way of a penalty other than a penalty referred to in paragraph 25(2), the event giving rise to the penalty.
(2) An assessment under paragraph 25 above of—
(a) an amount due by way of any penalty referred to in sub-paragraph (2) of that paragraph, or
(b) an amount due by way of interest,
may be made at any time before the expiry of the period of two years beginning with the time when the amount of tax due for the accounting period concerned has been finally determined.
(3) In relation to an assessment under paragraph 25 above, any reference in sub-paragraph (1A) or (2) above to the accounting period concerned is a reference to that period which, in the case of the penalty or interest concerned, is the relevant period referred to in sub-paragraph (2) of that paragraph.
(4) An assessment of an amount due from a person in a case involving a loss of tax—
(a) brought about deliberately by the person (or by another person acting on that person's behalf), or
(b) attributable to a failure by the person to comply with an obligation under section 53(1) or (2) or 53AA(1) or (3),
may be made at any time not more than 20 years after the relevant event.
(5) In sub-paragraph (4)(a) the reference to a loss brought about deliberately by the person includes a loss brought about as a result of a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by or on behalf of that person.
Supplementary assessments
27 If, otherwise than in circumstances falling within subsection (5)(b) of section 56 of this Act, it appears to the Commissioners that the amount which ought to have been assessed in an assessment under any provision of that section or under paragraph 25 above exceeds the amount which was so assessed, then—
(a) under the like provision as that assessment was made, and
(b) on or before the last day on which that assessment could have been made,
the Commissioners may make a supplementary assessment of the amount of the excess and shall notify the person concerned accordingly.
Disclosure of information
28 (1) Notwithstanding any obligation not to disclose information that would otherwise apply, the Commissioners may disclose information—
(a) to the Secretary of State, or
(b) to an authorised officer of the Secretary of State,
for the purpose of assisting the Secretary of State in the performance of his duties.
(2) Notwithstanding any such obligation as is mentioned in sub-paragraph (1) above—
(a) the Secretary of State, or
(b) an authorised officer of the Secretary of State,
may disclose information to the Commissioners or to an authorised officer of the Commissioners for the purpose of assisting the Commissioners in the performance of duties in relation to tax.
(3) Information that has been disclosed to a person by virtue of this paragraph shall not be disclosed by him except—
(a) to another person to whom (instead of him) disclosure could by virtue of this paragraph have been made, or
(b) for the purpose of any proceedings connected with the operation of any provision of, or made under, any enactment in relation to insurance or to tax.
(4) References in the preceding provisions of this paragraph to an authorised officer of the Secretary of State are to any person who has been designated by the Secretary of State as a person to and by whom information may be disclosed under this paragraph.
(5) The Secretary of State shall notify the Commissioners in writing of the name of any person designated under sub-paragraph (4) above.
28A (1) Notwithstanding any obligation not to disclose information that would otherwise apply, the Commissioners may disclose information—
(a) to the Treasury, or
(b) to an authorised officer of the Treasury,
for the purpose of assisting the Treasury in the performance of their duties.
(2) Notwithstanding any such obligation as is mentioned in sub-paragraph (1) above—
(a) the Treasury, or
(b) an authorised officer of the Treasury,
may disclose information to the Commissioners or to an authorised officer of the Commissioners for the purpose of assisting the Commissioners in the performance of duties in relation to tax.
(3) Information that has been disclosed to a person by virtue of this paragraph shall not be disclosed by him except—
(a) to another person to whom (instead of him) disclosure could by virtue of this paragraph have been made, or
(b) for the purpose of any proceedings connected with the operation of any provision of, or made under, any enactment in relation to insurance or to tax.
(4) References in the preceding provisions of this paragraph to an authorised officer of the Treasury are to any person who has been designated by the Treasury as a person to and by whom information may be disclosed under this paragraph.
(5) The Treasury shall notify the Commissioners in writing of the name of any person designated under sub-paragraph (4) above.
28B. (1) Notwithstanding any obligation not to disclose information that would otherwise apply, the Commissioners may disclose information to a regulator for the purpose of assisting the regulator in the performance of its functions.
(2) Information that has been disclosed to a regulator pursuant to this paragraph shall not be disclosed by the regulator except for the purpose of any proceedings connected with the operation of any provision of, or made under, any enactment in relation to insurance or to tax.
(3) In this paragraph “regulator” means—
(a) the Financial Conduct Authority;
(b) the Prudential Regulation Authority.
Evidence by certificate
29 (1) A certificate of the Commissioners—
(a) that a person was or was not at any time registered under section 53 of this Act, or
(b) that any return required by regulations under section 54 of this Act has not been made or had not been made at any time, ...
() . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
shall be sufficient evidence of that fact until the contrary is proved.
(2) Any document purporting to be a certificate under sub-paragraph (1) above shall be taken to be such a certificate until the contrary is proved.
Service of notices etc.
30 Any notice, notification or requirement to be served on, given to or made of any person for the purposes of this Part of this Act may be served, given or made by sending it by post in a letter addressed to that person or his tax representative at the last or usual residence or place of business of that person or representative.
No deduction of penalties or interest
31 In section 827 of the Taxes Act 1988 (no deduction for penalties etc.) the following subsection shall be inserted after subsection (1A)—
(1B) Where a person is liable to make a payment by way of—
(a) penalty under any of paragraphs 12 to 19 of Schedule 7 to the Finance Act 1994 (insurance premium tax), or
(b) interest under paragraph 21 of that Schedule,
the payment shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes.
Destination of receipts
32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provisional collection of tax
33 In section 1(1) of the Provisional Collection of Taxes Act 1968 after “value added tax,” there shall be inserted “ insurance premium tax, ”.
34 (1) In a case where—
(a) by virtue of a resolution having effect under the Provisional Collection of Taxes Act 1968 tax has been paid at a rate specified in the resolution, and
(b) by virtue of section 1(6) or (7) or 5(3) of that Act any of that tax is repayable in consequence of the restoration in relation to the premium concerned of a lower rate,
the amount repayable shall be the difference between the tax paid by reference to the actual chargeable amount at the rate specified in the resolution and the tax that would have been payable by reference to the actual chargeable amount at the lower rate.
(2) In sub-paragraph (1) above the “actual chargeable amount” means the chargeable amount by reference to which tax was paid.
(3) In a case where—
(a) by virtue of a resolution having effect under the Provisional Collection of Taxes Act 1968 tax is chargeable at a rate specified in the resolution, but
(b) before the tax is paid it ceases to be chargeable at that rate in consequence of the restoration in relation to the premium concerned of a lower rate,
the tax chargeable at the lower rate shall be charged by reference to the same chargeable amount as that by reference to which tax would have been chargeable at the rate specified in the resolution.
Adjustment of contracts
35 (1) Where, after the making of a contract of insurance and before a given premium is received by the insurer under the contract, there is a change in the tax chargeable on the receipt of the premium, then, unless the contract otherwise provided, there shall be added to or deducted from the amount payable as the premium an amount equal to the difference between—
(a) the tax chargeable had the change not been made, and
(b) the tax in fact chargeable.
(2) References in sub-paragraph (1) above to a change in the tax chargeable include references to a change to or from no tax being chargeable.
(3) Where this paragraph applies, the amount of the premium shall not be treated as altered for the purposes of calculating tax.
SCHEDULE 7A INSURANCE PREMIUM TAX: CONTRACTS THAT ARE NOT TAXABLE
PART I DESCRIPTIONS OF CONTRACT
Contracts of reinsurance
1 A contract falls within this paragraph if it is a contract of reinsurance.
Contracts constituting long term business
2 (1) Subject to sub-paragraph (3) below, a contract falls within this paragraph if it is exclusively a contract of long-term insurance.
(2) In deciding whether a contract is exclusively a contract of long-term insurance, as is mentioned in sub-paragraph (1) above, where—
(a) the contract includes cover for risks relating to accident or sickness;
(b) the contract contains related and subsidiary provisions such that it might also be regarded as a contract of general insurance, but is treated as a contract of long-term insurance for the purposes of any relevant order made under section 22 of the Financial Services and Markets Act 2000; and
(c) the contract was not entered into after 30th November 1993,
the inclusion of such cover shall be ignored.
(3) A contract which would otherwise fall within this paragraph does not do so if it is for medical insurance.
(4) Subject to sub-paragraph (5) below, for the purposes of this paragraph a contract is a contract for medical insurance if it provides one or more of the following benefits, whether or not their provision is subject to conditions or limitations—
(a) medical, dental or optical, consultation, diagnosis or treatment;
(b) alternative or complementary medical treatment or therapy;
(c) convalescent care;
(d) goods or services related to any of the above;
(e) payment or reimbursement of, or a grant towards, the whole or part of the cost of any of the above;
(f) payment of a specified sum for optical, dental or medical appointments;
(g) payment of a specified sum for each specified period of treatment as a hospital in-patient;
(h) payment of a specified sum for each specified period of convalescent care; or
(i) payment of a specified sum, except one to which sub-paragraph (6) below applies, when a person is diagnosed as requiring or has undergone a specified medical procedure.
(5) A benefit which would apart from this sub-paragraph fall within sub-paragraph (4) above shall not do so if, before he can become entitled to the benefit, the insured is required—
(a) to be suffering from a disability which so impairs his ability to carry out normal activities of daily living that he requires long term care, supervision or assistance; and
(b) to have been suffering from the disability for a continuous period of not less than 4 weeks.
(6) This sub-paragraph applies to a payment of a specified sum if the contract under which it is payable provides that only one such payment in relation to each specified medical procedure will be made in respect of each person in relation to whom benefit is payable under the contract.
Contracts relating to motor vehicles let on relevant benefit terms
3 (1) A contract falls within this paragraph if it relates only to a motor vehicle and—
(a) the vehicle is let on hire on relevant benefit terms to a person, and
(b) the supply of the vehicle to that person is zero-rated for the purposes of the Value Added Tax Act 1994 as a result of it being a supply falling within—
(i) paragraph (f) in item 2 in Group 12 in Schedule 8 to that Act, or
(ii) item 2A in that Group.
(2) “Relevant benefit terms” is to be construed in accordance with paragraph (2) of item 15 in Group 12 in Schedule 8 to the Value Added Tax Act 1994 (zero-rating).
Contracts relating to commercial ships
4 (1) A contract falls within this paragraph if it relates only to a commercial ship and is a contract of general insurance of a relevant class.
(2) For the purposes of this paragraph, a contract of general insurance is of a relevant class if it insures against risks arising from or in relation to—
(a) accidents,
(b) ships, or
(c) liabilities of ships,
(and no other risks).
(3) For the purposes of this paragraph a commercial ship is a ship which is—
(a) of a gross tonnage of 15 tons or more; and
(b) not designed or adapted for use for recreation or pleasure.
Contracts relating to lifeboats and lifeboat equipment
5 (1) A contract falls within this paragraph if it relates only to a lifeboat and is a contract of general insurance of a relevant class.
(2) For the purposes of this paragraph, a contract of general insurance is of a relevant class if it insures against risks arising from or in relation to—
(a) accidents,
(b) ships, or
(c) liabilities of ships,
(and no other risks).
(3) For the purposes of this paragraph a lifeboat is a vessel used or to be used solely for rescue or assistance at sea.
6 (1) A contract falls within this paragraph if it relates only to a lifeboat and lifeboat equipment and is such that, if it related only to a lifeboat, it would fall within paragraph 5 above.
(2) In deciding whether a contract relates to lifeboat equipment the nature of the risks concerned is immaterial, and they may (for example) be risks of dying or sustaining injury or of loss or damage.
(3) For the purposes of this paragraph—
(a) “lifeboat” has the meaning given by paragraph 5(3) above; and
(b) “lifeboat equipment” means anything used or to be used solely in connection with a lifeboat.
Contracts relating to commercial aircraft
7 (1) A contract falls within this paragraph if it relates only to a commercial aircraft and is a contract of general insurance of a relevant class.
(2) For the purposes of this paragraph, a contract of general insurance is of a relevant class if it insures against risks arising from or in relation to—
(a) accidents,
(b) aircraft, or
(c) aircraft liability,
(and no other risks).
(3) For the purposes of this paragraph a commercial aircraft is an aircraft which is—
(a) of a weight of 8,000 kilogrammes or more; and
(b) not designed or adapted for use for recreation or pleasure.
Contracts relating to spacecraft
7A (1) A contract falls within this paragraph if it relates only to the operation of a spacecraft and is a contract of general insurance of a relevant class.
(2) For the purposes of this paragraph, a contract of general insurance is of a relevant class if it insures against risks arising from or in relation to—
(a) accidents,
(b) goods in transit,
(c) fire or natural forces,
(d) damage to, or loss or malfunction of, property, or
(e) general liability to third parties,
(and no other risks).
(3) For the purposes of this paragraph—
(a) the “operation of a spacecraft” means the launch, flight, orbit or re-entry of a spacecraft, and
(b) “spacecraft” includes all component parts of its launch vehicle.
Contracts relating to risks outside the United Kingdom
8 (1) A contract falls within this paragraph if it relates only to a risk which is situated outside the United Kingdom.
(2) The question of whether a risk is situated in the United Kingdom shall be determined in accordance with the Table in sub-paragraph (3).
(3) This is the Table referred to in sub-paragraph (2)—
Where— | The risk is situated in—
the contract relates to a building, to some or all of the contents of a building or to a building and some or all of its contents | the country or territory in which the building is situated
the contract relates to vehicles of any type | the country or territory in which the vehicle is registered
the contract covers travel or holiday risks and has a duration of four months or less | the country or territory in which the policyholder entered into the contract
the contract does not fall within any of the previous entries and the policyholder is an individual | the country or territory in which the policyholder is habitually resident on the date on which the contract is entered into
the contract does not fall within any of the previous entries | the country or territory in which the establishment of the policyholder to which the contract relates is situated on the date on which the contract is entered into.
(4) For the purposes of the last entry in the Table, “establishment”, in relation to a policyholder (“P”), means—
(a) P’s head office or any of P’s agencies or branches, or
(b) any permanent presence of P (which need not take the form of a branch or agency and, for example, may consist of an office managed by P’s staff or by a person who is independent of P but who has permanent authority to act for P as if the person were an agency).
Contracts relating to foreign or international railway rolling stock
9 (1) A contract falls within this paragraph if it relates only to foreign or international railway rolling stock and is a contract of general insurance of a relevant class.
(2) For the purposes of this paragraph, a contract of general insurance is of a relevant class if it insures against risks arising from or in relation to—
(a) railway rolling stock, or
(b) general liability to third parties,
(and no other risks).
(3) For the purposes of this paragraph foreign or international railway rolling stock is railway rolling stock used principally for journeys taking place wholly or partly outside the United Kingdom.
Contracts relating to the Channel tunnel
10 (1) A contract falls within this paragraph if it relates only to the Channel tunnel system and is a contract of general insurance of a relevant class.
(2) For the purposes of this paragraph, a contract of general insurance is of a relevant class if it insures against risks arising from or in relation to—
(a) fire or natural forces,
(b) damage to property, or
(c) general liability to third parties,
(and no other risks).
(3) For the purposes of this paragraph “the Channel tunnel system” means—
(a) the tunnels described in section 1(7)(a) of the Channel Tunnel Act 1987;
(b) the control towers situated in the terminal areas described in section 1(7)(b) of that Act; and
(c) the shuttle crossovers, wherever situated.
11 (1) A contract falls within this paragraph if it relates only to relevant Channel tunnel equipment and is a contract of general insurance of a relevant class.
(2) For the purposes of this paragraph, a contract of general insurance is of a relevant class if it insures against risks arising from or in relation to—
(a) fire or natural forces,
(b) damage to property, or
(c) general liability to third parties,
(and no other risks).
(3) For the purposes of this paragraph “the Channel tunnel system” has the meaning given by paragraph 10(3) above.
(4) For the purposes of this paragraph “relevant Channel tunnel equipment” means, subject to sub-paragraph (5) below, the fixed or movable equipment needed for the operation of the Channel tunnel system or for the operation of trains through any tunnel forming part of it and in particular includes—
(a) any ventilation, cooling or electrical plant used or to be used in connection with any such operation; and
(b) any safety, signalling and control equipment which is or is to be so used.
(5) Equipment which consists of or forms part of—
(a) roads, bridges, platforms, ticket offices and other facilities for the use of passengers or motor vehicles;
(b) administrative buildings and maintenance facilities; and
(c) railway track or signalling equipment which is not situated in any part of the Channel tunnel system,
is not relevant Channel tunnel equipment for the purposes of this paragraph.
Contracts relating to goods in foreign or international transit
12 (1) A contract falls within this paragraph if it relates only to loss of or damage to goods in foreign or international transit and the insured enters into the contract in the course of a business carried on by him.
(2) For the purposes of this paragraph goods in foreign or international transit are goods in transit, and any container in which they are carried, where their carriage—
(a) begins and ends outside the United Kingdom;
(b) begins outside but ends in the United Kingdom; or
(c) ends outside but begins in the United Kingdom.
(3) For the purposes of sub-paragraph (2) above “container” has the same meaning as in regulation 38(3) of the Value Added Tax (General) Regulations 1985 .
Contracts relating to credit
13 (1) A contract falls within this paragraph if it relates only to credit granted in relation to goods or services supplied under a relevant contract by a person carrying on business in the United Kingdom.
(2) For the purposes of this paragraph a relevant contract is—
(a) a contract to make a relevant supply of goods, or a supply of services, or both, to an overseas customer;
(b) a contract to supply goods to a person who is to—
(i) export those goods; or
(ii) incorporate those goods in other goods which he is to export,
where the condition mentioned in sub-paragraph (3) below is satisfied;
(c) a contract to supply to a person who is to export goods services consisting of the valuation or testing of, or other work carried out on, those goods where the condition mentioned in sub-paragraph (3) below is satisfied;
(d) a contract to supply services to a person in order that he may comply with a legally binding obligation to make a supply of services to an overseas customer.
(3) The condition referred to in sub-paragraph (2)(b) and (c) above is that the goods to be exported are to be exported in order that the person exporting them may comply with a legally binding obligation to make a relevant supply of goods to an overseas customer.
(4) For the purposes of this paragraph—
(a) “export” means export from the United Kingdom and cognate expressions shall be construed accordingly; and
(b) any reference to a person who is to export goods shall be taken as including a reference to a person at whose direction the insured is to export them and the reference in sub-paragraph (3) above to the person exporting goods shall be construed accordingly.
(5) Where a contract relates to—
(a) credit of the description in sub-paragraph (1) above; and
(b) loss resulting from the insured or any third party being required to pay the amount of any bond or guarantee against non-performance by the insured of the contract which involves him making the supply,
the contract shall be treated for the purposes of sub-paragraph (1) above as if it did not relate to loss of the description in paragraph (b) above.
Contracts relating to exchange losses
14 (1) A contract falls within this paragraph if—
(a) it relates only to loss resulting from a change in the rate at which the price for a supply which is or may be made by the insured may be exchanged for another currency; and
(b) the conditions mentioned in sub-paragraph (2) below are satisfied.
(2) The conditions referred to in sub-paragraph (1) above are that—
(a) the insured is a person carrying on business in the United Kingdom;
(b) the contract of insurance concerns a contract to make a relevant supply of goods, or a supply of services, or both, to an overseas customer (whether or not the contract to make the supply is one into which the insured has entered, or one for which he has tendered or intends to tender); and
(c) the period of cover for the risk expires no later than the date by which the whole of the price for the supply is to be paid or, where the contract has not been entered into, would be required to be paid.
(3) Where the contract relates to—
(a) loss of the description in sub-paragraph (1)(a) above; and
(b) loss relating from a change in the rate at which the price of goods which the insured imports into the United Kingdom for the purpose of enabling him to make the supply concerned may be exchanged for another currency,
the contract shall be treated for the purposes of sub-paragraphs (1) and (2) above as if it did not relate to loss of the description in paragraph (b) above.
Contracts relating to the provision of financial facilities
15 (1) A contract falls within this paragraph if it relates only to the provision of a relevant financial facility and the conditions mentioned in sub-paragraph (2) below are satisfied.
(2) The conditions referred to in sub-paragraph (1) above are that—
(a) the person to whom the relevant financial facility is provided is an overseas customer;
(b) it is provided in order that he may comply with a legally binding obligation to receive a relevant supply of goods, or a supply of services, or both, from a person carrying on business . . .; and
(c) the contract of insurance insures against risks arising from or in relation to either or both—
(i) credit,
(ii) suretyship.
(3) For the purposes of this paragraph a relevant financial facility is—
(a) the making of an advance;
(b) the issue of a letter of credit or acceptance of a bill of exchange;
(c) the giving of a guarantee or bond; or
(d) any other similar transaction entered into in order to provide a customer with the means to pay, or a supplier with the right to call upon a third party for, the consideration for goods or services.
PART II INTERPRETATION
16 (1) This Part of this Schedule applies for the purposes of Part I of this Schedule.
(2) A relevant supply of goods is any supply of goods where the supply is to be made outside the United Kingdom or where the goods are to be exported from the United Kingdom.
(3) An overseas customer, in relation to a supply of goods or services, is a person who—
(a) does not have any business establishment in the United Kingdom but has such an establishment elsewhere;
(b) has such establishments both in the United Kingdom and elsewhere, provided that the establishment at which, or for the purposes of which, the goods or services which are to be supplied to him are most directly to be used is not in the United Kingdom; or
(c) has no such establishment in any place and does not have his usual place of residence in the United Kingdom.
16A Paragraphs 2, 4, 5, 7, 7A, 8, 9, 10, 11 and 15 must be read with—
(a) section 22 of the Financial Services and Markets Act 2000;
(b) any relevant order under that section; and
(c) Schedule 2 to that Act.
SCHEDULE 8 Supplemental provisions relating to personal reliefs
Section 77.
The Taxes Act 1988
1 In section 257A(6) of the Taxes Act 1988 (relief confined to one deduction), for “deduction” there shall be substituted “ income tax reduction ”.
2 (1) In subsections (1) and (2) of section 257BA of that Act (elections as to transfer of relief under section 257A)—
(a) for the words “to deduct from her total income”, in each place where they occur, there shall be substituted “ to an income tax reduction calculated by reference to ”; and
(b) for the words “that he is entitled to deduct under section 257A”, in each place where they occur, there shall be substituted “ by reference to which the calculation of the income tax reduction to which he is entitled under section 257A is to be made ”.
(2) In subsection (3) of that section—
(a) for “to deduct from his total income” there shall be substituted “ to an income tax reduction calculated by reference to ”;
(b) for “the amount, if any, that he is already entitled to deduct” there shall be substituted “ any income tax reduction to which he is already entitled ”; and
(c) for “that she is entitled to deduct by virtue of that election” there shall be substituted “ by reference to which the calculation of the income tax reduction to which she is entitled by virtue of that election is to be made ”.
(3) Any election made for the purposes of section 257BA of the Taxes Act 1988 which—
(a) has been made before the coming into force of this paragraph, and
(b) apart from this paragraph, would have effect in accordance with that section for the year 1994-95 or any subsequent year,
shall so have effect as if it were an election for the purposes of that section as amended by this paragraph.
3 (1) In subsection (1) of section 257BB of that Act (transfer of relief where it is not all used), for paragraph (b) and the words after that paragraph there shall be substituted—
(b) the amount of the reduction to which he is entitled is determined in accordance with section 256(2)(b) or, by virtue of his having no income tax liability to which that reduction is applicable, is nil,
his wife shall be entitled (in addition to any reduction to which she is entitled by virtue of an election under section 257BA) to an income tax reduction calculated by reference to an amount equal to the unused part of the amount by reference to which her husband’s income tax reduction fell to be calculated in pursuance of section 257A and any election under section 257BA.
(2) In subsection (3) of that section, for paragraph (b) and the words after that paragraph there shall be substituted—
(b) the amount of the reduction to which she is entitled is determined in accordance with section 256(2)(b) or, by virtue of her having no income tax liability to which that reduction is applicable, is nil,
her husband shall be entitled (in addition to any other reduction to which he is entitled by virtue of section 257A) to an income tax reduction calculated by reference to an amount equal to the unused part of the amount by reference to which his wife’s income tax reduction fell to be calculated in pursuance of that election.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) Subsection (6) of that section (calculation of amount left after deductions of a person’s total income) shall cease to have effect.
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The Taxes Management Act 1970 (c. 9)
13 In section 37A of the Taxes Management Act 1970 (effect of assessment where allowances transferred)—
(a) after the word “person’s”, in the first place where it occurs, there shall be inserted “ liability to income tax or ”;
(b) for the words from “any deduction made” to “spouse” there shall be substituted “ any income tax reduction or deduction from total income made in the case of that person’s spouse ”; and
(c) for the words from “and where” onwards there shall be substituted “ and the entitlement in that case of the first-mentioned person for the year in question to any income tax reduction or deduction from total income shall be treated as correspondingly reduced. ”
Section 83.
Introductory
1 In this Schedule “the 1989 Act” means the Finance Act 1989.
Reduction of relief
2 (1) Section 54 of the 1989 Act (relief on premiums for medical insurance) shall be amended as follows.
(2) In subsection (3) (relief by deduction from income) for the words from “it shall be deducted” to the end of the subsection there shall be substituted
the individual shall be entitled to relief under this subsection in respect of the payment; and (except where subsections (4) to (6) below apply) relief under this subsection shall be given—
(a) in accordance with subsections (3A) to (3C) below, and
(b) only on a claim made for the purpose.
(3) The following subsections shall be inserted after subsection (3)—
(3A) Where an individual is entitled to relief under subsection (3) above in respect of one or more payments made in a given year of assessment, the amount of his liability for that year of assessment to income tax on his total income shall be the amount to which he would be liable apart from this section less whichever is the smaller of—
(a) the amount found under subsection (3B) below, and
(b) the amount which reduces his liability to nil.
(3B) The amount referred to in subsection (3A)(a) above is an amount found by—
(a) taking the amount of the payment referred to in subsection (3A) above or (as the case may be) the aggregate amount of the payments there referred to, and
(b) finding an amount equal to tax on the amount taken under paragraph (a) above at the basic rate for the year of assessment concerned.
(3C) In determining for the purposes of subsection (3A) above the amount of incomerson would be liable apart from this section, no account shall be taken of—
(a) any income tax reduction under Chapter I of Part VII of the Taxes Act 1988 or under section 347B of that Act;
(b) any income tax reduction under section 353(1A) of the Taxes Act 1988;
(c) any relief by way of a reduction of liability to tax which is given in accordance with any arrangements having effect by virtue of section 788 of the Taxes Act 1988 or by way of a credit under section 790(1) of that Act;
(d) any tax at the basic rate on so much of that person’s income as is income the income tax on which he is entitled to charge against any other person or to deduct, retain or satisfy out of any payment.
(4) This paragraph shall apply in relation to payments made on or after 6th April 1994.
3 (1) In sections 257D(8) and 265(3) of the Taxes Act 1988 (total income after deductions) paragraph (d) (deduction on account of payments to which section 54(5) of the 1989 Act applies to be disregarded) shall be omitted.
(2) This paragraph shall apply in relation to payments made on or after 6th April 1994.
Surviving spouse
4 (1) In section 54 of the 1989 Act the following subsection shall be inserted after subsection (2)—
(2A) In a case where—
(a) a payment is made in respect of a premium under a contract at a time when the contract meets the requirement in subsection (2) above by virtue of paragraph (c) of that subsection, and
(b) a payment is made under the same contract at a time after one of the individuals has died and when the contract does not (apart from this subsection) meet the requirement in subsection (2) above by virtue only of the fact that the surviving spouse is not aged 60 or over at the time,
for the purposes of subsection (2) above in its application to the contract the surviving spouse shall be deemed to be aged 60 or over at the time mentioned in paragraph (b) above.
(2) This paragraph shall apply where the first or only payment to be made in respect of a premium under the contract after the death occurs is made on or after 6th April 1994.
Small benefits and abolition of certification
5 (1) Section 55 of the 1989 Act (eligible contracts) shall be amended as follows.
(2) In subsection (2) (conditions for contract’s being eligible) the following paragraphs shall be inserted after paragraph (b)—
(ba) at the relevant time the contract satisfies the conditions set out in subsection (2A) below,
(bb) the contract is not one in the case of which subsection (2D) below applies,
.
(3) Also in subsection (2)—
(a) after paragraph (c) there shall be inserted “ and ”, and
(b) paragraph (e) and the word “and” immediately preceding it shall be omitted.
(4) The following subsections shall be inserted after subsection (2)—
(2A) The conditions referred to in subsection (2)(ba) above are that—
(a) the contract either provides indemnity in respect of all or any of the costs of all or any of the treatments, medical services and other matters for the time being specified in regulations made by the Treasury, or in addition to providing indemnity of that description provides cash benefits falling within rules for the time being so specified,
(b) the contract does not confer any right other than such a right as is mentioned in paragraph (a) above or is for the time being specified in regulations made by the Treasury,
(c) the premium under the contract is reasonable, and
(d) the contract satisfies such other requirements as are for the time being specified in regulations made by the Treasury.
(2B) In a case where—
(a) at the relevant time the contract confers a material right, or more than one such right, but
(b) the total cost to the insurer of providing benefits in pursuance of the material right or (as the case may be) in pursuance of all the material rights would not exceed the prescribed sum,
the contract shall not thereby be regarded as failing to satisfy at the relevant time the condition set out in subsection (2A)(b) above.
(2C) For the purposes of subsection (2B) above a material right is a right which—
(a) is not a right such as is mentioned in subsection (2A)(a) above or such as is for the time being specified in regulations made under subsection (2A)(b) above, and
(b) is not a right to a cash benefit.
(2D) This subsection applies in the case of a contract (the main contract) if—
(a) at least one other contract is entered into which is a contract (a collateral contract) under which a benefit is provided in consideration of the insured’s entering into the main contract, and
(b) the cost to the insurer of fulfilling his obligations under the collateral contract (or, if there is more than one collateral contract, of fulfilling his obligations under all of them) exceeds the prescribed sum.
(5) Subsections (3) to (6) shall be omitted.
(6) In subsection (9) (approved benefit) for “mentioned in section 56(3)(a) below” there shall be substituted the following paragraphs—
(a) mentioned in subsection (2A)(a) above, or
(b) for the time being specified in regulations made under subsection (2A)(b) above.
(7) The following subsections shall be inserted after subsection (9)—
(10) For the purposes of this section a benefit is also an approved benefit if it is not a cash benefit and—
(a) it is a single benefit provided otherwise than as mentioned in subsection (9) above and the cost to the insurer of providing it does not exceed the prescribed sum, or
(b) it is one of a number of benefits provided otherwise than as mentioned in subsection (9) above and the total cost to the insurer of providing the benefits does not exceed the prescribed sum.
(11) In this section the reference to a premium, in relation to a contract of insurance, is to any amount payable under the contract to the insurer.
(12) For the purposes of this section the prescribed sum is £30.
(13) The Treasury may by order substitute for the sum for the time being specified in subsection (12) above such sum as may be specified in the order; and any such substitution shall have effect in relation to cases where the relevant time falls on or after such date as is specified in the order.
(8) This paragraph shall apply where the time which is the relevant time for the purposes of section 55 falls on or after 1st July 1994.
6 The Board shall not certify a contract under section 56 of the 1989 Act in such a way that the certification is expressed to take effect on or after 1st July 1994.
SCHEDULE 11 Extension of roll-over relief on re-investment
Section 91.
1 Chapter IA of Part V of the Taxation of Chargeable Gains Act 1992 shall be amended as follows.
Disposals on which relief available
2 In section 164A—
(a) in subsection (1)(a), for the words following “(“the re-investor”)” there is substituted “ on any disposal by him of any asset (“the asset disposed of”); and ”,
(b) in subsection (2), “Subject to section 164C” is omitted and for “initial holding” (in three places) there is substituted “ asset disposed of ”,
(c) subsections (3) to (7) are omitted,
(d) in subsection (9), for “initial holding” there is substituted “ asset disposed of ”, and
(e) for subsection (12) there is substituted—
(12) Without prejudice to section 52(4), where consideration is given for the acquisition of any assets some of which are shares to the acquisition of which a claim under this section relates and some of which are not, the consideration shall be apportioned in such manner as is just and reasonable
.
3 For section 164B there is substituted—
Roll-over relief on re-investment by trustees.
164B (1) Subject to the following provisions of this section, section 164A shall apply, as it applies in such a case as is mentioned in subsection (1) of that section, where there is—
(a) a disposal by the trustees of a settlement of any asset comprised in any settled property to which this section applies, and
(b) such an acquisition by those trustees of eligible shares in a qualifying company as would for the purposes of that section be an acquisition of a qualifying investment at a time in the qualifying period.
(2) This section applies—
(a) to any settled property in which the interests of the beneficiaries are not interests in possession, if all the beneficiaries are individuals, and
(b) to any settled property in which the interests of the beneficiaries are interests in possession, if any of the beneficiaries are individuals,
and references in this section to individuals include any charity.
(3) If, at the time of the disposal of the asset mentioned in subsection (1)(a) above, the settled property comprising that asset is property to which this section applies by virtue of subsection (2)(b) above but not all the beneficiaries are individuals, then—
(a) only the relevant proportion of the gain which would accrue to the trustees on the disposal shall be taken into account for the purposes of section 164A(2)(a)(i), and
(b) no reduction under section 164A(2) shall be made in respect of the whole or any part of the balance of the gain.
(4) Section 164A shall not apply by virtue of this section in a case where, at the time of the disposal of the asset mentioned in subsection (1)(a) above, the settled property which comprises that asset is property to which this section applies by virtue of subsection (2)(a) above unless, immediately after the acquisition of shares mentioned in subsection (1)(b) above, the settled property comprising the shares is also property to which this section applies by virtue of subsection (2)(a) above.
(5) Section 164A shall not apply by virtue of this section in a case where, at the time of the disposal of the asset mentioned in subsection (1)(a) above, the settled property which comprises that asset is property to which this section applies by virtue of subsection (2)(b) above unless, immediately after the acquisition of shares mentioned in subsection (1)(b) above—
(a) the settled property comprising the shares is also property to which this section applies by virtue of subsection (2)(b) above, and
(b) if not all the beneficiaries are individuals, the relevant proportion is not less than the proportion which was the relevant proportion at the time of the disposal of the asset mentioned in subsection (1)(a) above.
(6) If, at any time, in the case of settled property to which this section applies by virtue of subsection (2)(b) above, both individuals and others have interests in possession, the relevant proportion at that time is the proportion which the amount specified in paragraph (a) below bears to the amount specified in paragraph (b) below, that is—
(a) the total amount of the income of the settled property, being income the interests in which are held by beneficiaries who are individuals, and
(b) the total amount of all the income of the settled property.
(7) Where, in the case of any settled property in which any beneficiary holds an interest in possession, one or more beneficiaries (“the relevant beneficiaries”) hold interests not in possession, this section shall apply as if—
(a) the interests of the relevant beneficiaries were a single interest in possession, and
(b) that interest were held, where all the relevant beneficiaries are individuals, by an individual and, in any other case, by a person who is not an individual.
(8) In this section references to interests in possession do not include interests for a fixed term.
4 Sections 164C to 164E are omitted.
5 In section 164H(1), “within the meaning of section 164C” is omitted.
6 In section 164L(10), for the words following “trustees or” there is substituted “ any individual or charity by virtue of whose interest, at the time of the acquisition, section 164B applies to the settled property ”.
Acquisitions on which relief available
7 For section 164A(8) there is substituted—
(8) For the purposes of this section, a person who acquires any eligible shares in a qualifying company shall be regarded as acquiring a qualifying investment unless, where the asset disposed of consisted of shares in or other securities of any company (“the initial holding”), the qualifying company—
(a) is the company in which the initial holding subsisted, or
(b) is a company that was, at the time of the disposal of the initial holding, or is, at the time of the acquisition of the qualifying investment, a member of the same group of companies as the company in which the initial holding subsisted.
Retirement relief
8 Section 164A(11) is omitted and after section 164B there is inserted—
Interaction with retirement relief
164BA (1) The provisions of section 164A for making any reduction shall apply before any provisions for calculating the amount of, or giving effect to, any relief under section 163 or 164; and references in that section and this to a chargeable gain (except the second reference in subsection (4)(a) below) shall be construed accordingly.
(2) Subsection (3) below applies where—
(a) any claim for relief is made under section 164A in respect of any chargeable gain, and
(b) apart from this Chapter, the whole or any part of that gain would be relieved under section 163 or 164.
(3) For the purpose of giving relief under section 163 or 164, any reduction under section 164A shall be treated as having been made first against the unrelieved part of the chargeable gain; and only the amount (if any) which is equal to the unrelieved part of the chargeable gain after that reduction shall be treated as exceeding the amount available for relief.
(4) For the purposes of this section—
(a) the unrelieved part of a chargeable gain is so much of that gain as, apart from this Chapter, would constitute a chargeable gain after the application of the appropriate paragraph of Schedule 6,
(b) “amount available for relief” has the same meaning as in the appropriate paragraph of that Schedule, and
(c) the “appropriate paragraph” means, as the case may be, paragraph 6, 7(1)(b) or 8(1)(b).
Clawback
9 (1) In section 164F—
(a) for subsection (1) there is substituted—
(1) This section shall apply where a person has acquired any eligible shares in a qualifying company (“the acquired holding”) for a consideration which is treated as reduced, under section 164A or this section, by any amount (“the held-over gain”)
,
(b) in subsection (3), for the words from “either” to the end of paragraph (b) there is substituted “ charged on any disposal or under this section ”,
(c) for subsection (4) there is substituted—
(4) For the purposes of this section the whole or a part of any held-over gain on the acquisition of the acquired holding shall be treated—
(a) in accordance with subsection (4A) below as charged on any disposal in relation to which the whole or any part of the held-over gain falls to be taken into account in determining the chargeable gain or allowable loss accruing on the disposal, and
(b) as charged under this section so far as it falls to be disregarded in accordance with subsection (11) below.
(4A) In the case of any such disposal as is mentioned in subsection (4)(a) above, the amount of the held-over gain charged on that disposal—
(a) shall, except in the case of a part disposal, be the amount taken into account as so mentioned, and
(b) in the case of a part disposal, shall be calculated by multiplying the following, that is to say—
(i) so much of the amount of the held-over gain as has not already been charged on a previous disposal, and
(ii) the fraction used in accordance with section 42(2) for determining, subject to any deductions in pursuance of this Chapter, the amount allowable as a deduction in the computation of the gain accruing on the disposal in question
,
(d) in subsection (5)—
(i) in paragraph (a) “or 164D” is omitted, and
(ii) in paragraph (c), for the words from “section 164D(4)” to the end there is substituted “ subsections (4) and (4A) above ”,
(e) in subsection (10), “(within the meaning of section 164D)” is omitted, and
(f) after that subsection there is inserted—
(10A) Where (apart from this subsection) a chargeable gain of any amount would by virtue of subsection (2) above accrue to the person who acquired the acquired holding but, within the period mentioned in subsection (10B) below, that person acquires a qualifying investment (within the meaning of section 164A), that person shall, on making a claim as respects the qualifying investment, be treated—
(a) as if the amount of the gain were reduced by whichever is the smallest of the following—
(i) the actual amount or value of the consideration for the acquisition of the qualifying investment,
(ii) in the case of a qualifying investment acquired otherwise than by a transaction at arm’s length, the market value of that investment at the time of its acquisition,
(iii) the amount specified for the purposes of this subsection in the claim, and
(b) as if the amount or value of the consideration for the acquisition of the qualifying investment were reduced by the amount of the reduction made under paragraph (a) above;
but paragraph (b) above shall not affect the treatment for the purposes of this Act of the other party to the transaction involving the qualifying investment.
(10B) The period referred to in subsection (10A) above is the period (not including any period before the acquisition of the acquired holding) which begins 12 months before and ends 3 years after the time when the chargeable gain accrues or would but for that subsection accrue, together with any such further period after the disposal as the Board may by notice allow.
(2) Section 164F as amended by sub-paragraph (1) above shall have effect as follows—
(a) the reference in subsection (1) to consideration treated as reduced under section 164A includes consideration treated as reduced under section 164D,
(b) the reference in subsection (3) to a gain having been charged on any disposal includes any gain having been carried forward from any disposal of shares, and
(c) the amounts referred to in subsection (4A)(a) and (b)(i) shall be treated as reduced by any amounts carried forward from any disposal of shares.
(3) References in sub-paragraph (2) above to an amount being carried forward from a disposal of shares are references to the reduction by that amount, in accordance with section 164D(3)(a), of the amount of the consideration for the disposal of those shares.
Anti-avoidance
10 In section 164L—
(a) after subsection (10) there is inserted—
(10A) For the purposes of this Chapter, where—
(a) a person has acquired any eligible shares in a qualifying company (“the acquired holding”) for a consideration which is treated as reduced under this Chapter by any amount (“the held-over gain”), and
(b) after that acquisition, he acquires eligible shares in a relevant company,
he shall not be regarded in relation to his acquisition of those shares in the relevant company as acquiring a qualifying investment for the purposes of section 164A.
(10B) For the purposes of subsection (10A) above a company is a relevant company if—
(a) where that person has disposed of any of the acquired holding, it is the company in which the acquired holding has subsisted or a company which was a member of the same group of companies as that company at any time since the acquisition of the acquired holding,
(b) it is a company in relation to the disposal of any shares in which there has been a claim under this Chapter such that, without that or an equivalent claim, there would have been no held-over gain in relation to the acquired holding, or
(c) it is a company which, at the time of the disposal or acquisition to which the claim relates, was a member of the same group of companies as a company falling within paragraph (b) above
, and
(b) in subsection (11), for the definition of “chargeable business assets” there is substituted—
“chargeable business asset”, in relation to any company, means a chargeable asset (including goodwill but not including shares or securities or other assets held as investments) which is, or is an interest in, an asset used for the purposes of a trade, profession, vocation, office or employment carried on by—
(a) the individual acquiring the shares,
(b) any personal company of that individual,
(c) a member of a trading group of which the holding company is a personal company of that individual, or
(d) a partnership of which that individual is a member
.
Miscellaneous
11 In section 164N, after subsection (1) there is inserted—
(1A) Every asset of a company is for the purposes of this Chapter a chargeable asset of that company at any time, except one on the disposal of which by the company at that time no gain accruing to the company would be a chargeable gain
.
Section 93.
Introductory
1 This Schedule applies in relation to chargeable gains and allowable losses accruing to—
(a) an individual, or
(b) the trustees of a settlement made before 30th November 1993;
(referred to in this Schedule as “the taxpayer”).
2 (1) This paragraph applies for the purposes of this Schedule, and the determinations required by this paragraph to be made shall be made without regard to paragraphs 4 to 7 below.
(2) If an allowable loss accrues on a disposal made on or after 30th November 1993 and, under the old indexation rules, a greater allowable loss would have accrued, there is an indexation loss in respect of the disposal equal to the amount by which the allowable loss which would have accrued under the old indexation rules exceeds the allowable loss accruing on the disposal.
(3) If a disposal made on or after 30th November 1993 is one on which neither a gain nor a loss accrues and, under the old indexation rules, an allowable loss would have accrued, there is an indexation loss in respect of the disposal equal to the amount of the allowable loss that would have accrued under the old indexation rules.
(4) If the total amount of chargeable gains accruing to the taxpayer in any year of assessment for which this Schedule has effect exceeds the allowable losses accruing in that year, there is a relevant gain for that year equal to the amount of the excess.
3 (1) The cases in which the appropriation of an asset by the taxpayer is treated under section 161(1) of the 1992 Act (appropriations to and from stock) as a disposal of the asset include cases in which, if he had sold the asset for its market value, an allowable loss would have accrued to him under the old indexation rules.
(2) Where, but for an election under subsection (3) of section 161 of the 1992 Act—
(a) an asset appropriated by the taxpayer would have been treated as disposed of as mentioned in subsection (1) of that section, and
(b) paragraph 2(2) or (3) above would have applied on the disposal,
paragraphs 1 and 2 above and 6 and 7 below shall apply, as if the asset had been so treated, to determine for the purposes of subsection (3) of that section any increase to be made in the amount of any allowable loss; and the appropriation of the asset is referred to below as a “relevant appropriation”.
(3) Sections 574 to 576 of the Taxes Act (relief for individual on disposal of shares in qualifying trading company) shall apply if an individual who has subscribed for shares as mentioned in section 574(1) disposes of them in circumstances where paragraph 2(3) above applies as they apply in other cases.
(4) Where a person makes a claim for relief under subsection (1) of section 574 in the case of a disposal in respect of which there is an indexation loss (referred to below as a “section 574 disposal”)—
(a) paragraphs 6 and 7 below shall apply to determine any increase to be made, for the purposes of that subsection, in the amount of the allowable loss, and
(b) paragraphs 4 and 5 below shall apply to so much only of the indexation loss as is not relieved under that section.
(5) References in this paragraph and paragraphs 6 and 7 below to an increase in any loss include, in circumstances where paragraph 2(3) above applies, a reference to the creation of the loss.
Capital gains tax
4 (1) Where in the case of any taxpayer—
(a) there is a relevant gain for the year 1993-94,
(b) the relevant gain exceeds the exempt amount for that year, and
(c) there are indexation losses in respect of any disposals made in that year,
then, for the purposes of the 1992 Act, the amount by which the total amount of chargeable gains accruing to the taxpayer in that year exceeds the allowable losses accruing in the year shall be reduced by the amount mentioned in sub-paragraph (2) below, and shall be so reduced before the deduction of any allowable losses carried forward from any previous year or carried back under section 62 from any subsequent year.
(2) The amount referred to in sub-paragraph (1) above is so much of the total of indexation losses in respect of disposals made in that year as does not exceed—
(a) £10,000, or
(b) the amount by which the relevant gain exceeds the exempt amount for the year,
whichever is the smaller.
5 (1) Where in the case of any taxpayer—
(a) there is a relevant gain for the year 1994-95,
(b) the relevant gain exceeds the exempt amount for that year, and
(c) there are indexation losses in respect of any disposals made in that year or unused indexation losses for the previous year,
then, for the purposes of the 1992 Act, the amount by which the total amount of chargeable gains accruing to the taxpayer in the year 1994-95 exceeds the allowable losses accruing in that year shall be reduced by the amount mentioned in sub-paragraph (2) below, and shall be so reduced before the deduction of any allowable losses carried forward from any previous year or carried back under section 62 from any subsequent year.
(2) The amount referred to in sub-paragraph (1) above is so much of the total of indexation losses in respect of disposals made in the year 1994-95, plus any unused indexation losses for the previous year, as does not exceed—
(a) £10,000 less the aggregate of—
(i) the amount of any reduction made under paragraph 4(1) above for the previous year, and
(ii) any increase made under paragraph 6(2) below for the previous year, or
(b) the amount by which the relevant gain exceeds the exempt amount for the year 1994-95,
whichever is the smaller.
(3) For the purposes of this paragraph, if the total amount of indexation losses in respect of disposals made by the taxpayer in the year 1993-94 exceeds the aggregate of—
(a) the amount of any reduction made under paragraph 4(1) above for that year, and
(b) any increase made under paragraph 6(2) below for that year,
there are unused indexation losses for that year of an amount equal to the excess.
Income tax
6 (1) This paragraph applies where, at any time in the period beginning with 30th November 1993 and ending with 5th April 1994, the taxpayer makes any relevant appropriation or any section 574 disposal; and for the purposes of this paragraph there shall be determined—
(a) the amount of any reduction for the year 1993-94 which (disregarding relevant appropriations and section 574 disposals) would be made under paragraph 4(1) above, and
(b) the amounts of any indexation losses in respect of relevant appropriations or section 574 disposals made in that period.
(2) If the aggregate of the amounts referred to in sub-paragraph (1)(a) and (b) above does not exceed £10,000, the amount of any allowable loss referable to such an appropriation or disposal shall be increased by any indexation loss in respect of it.
(3) In any other case, notwithstanding anything in paragraphs 4 and 5 above—
(a) the aggregate of—
(i) the amount of any reduction for the year 1993-94 to be made under paragraph 4(1) above, and
(ii) the amount of any indexation losses in respect of relevant appropriations or section 574 disposals made in the period referred to in sub-paragraph (1) above,
shall be equal to £10,000 and shall be allocated as the taxpayer may determine between that reduction and increases in allowable losses referable to such appropriations or disposals, and
(b) no reduction shall be made under paragraph 5 above or 7 below for the year 1994-95.
7 (1) This paragraph applies where, at any time in the year 1994-95, the taxpayer makes any relevant appropriation or any section 574 disposal; and for the purposes of this paragraph there shall be determined—
(a) the amount of any reduction for that year which (disregarding relevant appropriations and section 574 disposals) would be made under paragraph 5(1) above, and
(b) the amounts of any indexation losses in respect of relevant appropriations or section 574 disposals made in that year.
(2) If the aggregate of the amounts referred to in sub-paragraph (1)(a) and (b) above does not exceed the limit for 1994-95, that is—
(a) £10,000, less
(b) the aggregate of the amount of any reduction made under paragraph 4(1) above for the year 1993-94 and of any increases made under paragraph 6(2) above for that year,
the amount of any allowable loss referable to such an appropriation or disposal shall be increased by any indexation loss in respect of it.
(3) In any other case, notwithstanding anything in paragraph 5 above, the aggregate of the amount of any reduction for the year 1994-95 to be made under paragraph 5(1) above and of the amount of any indexation losses in respect of relevant appropriations or section 574 disposals made in that year—
(a) shall be equal to the limit for 1994-95, and
(b) shall be allocated as the taxpayer may determine between that reduction and increases in allowable losses referable to such appropriations or disposals.
Supplementary
8 (1) In this Schedule—
“the 1992 Act” means the Taxation of Chargeable Gains Act 1992, and
“the old indexation rules” means the 1992 Act as it would have effect if—
the amendments made by subsections (1) to (5) of section 93 of this Act, and
the repeal of section 103 (collective investment schemes, etc.) and section 111 (building societies) of the 1992 Act by subsection (7) of section 93 of this Act,
had not come into force.
(2) Other expressions not defined in this Schedule but used both in it and in the 1992 Act have the same meaning as in that Act.
(3) References in this Schedule to the reduction of any amount include its reduction to nil.
Section 102.
Introduction
1 The Finance Act 1989 shall be amended as provided in this Schedule.
Trustees
2 In Schedule 5, in paragraph 3 (trustees) the following sub-paragraph shall be inserted after sub-paragraph (4)—
(5) This paragraph applies in relation to trusts established on or before the day on which the Finance Act 1994 was passed.
3 In Schedule 5, the following paragraphs shall be inserted after paragraph 3—
3A Where a trust is established after the day on which the Finance Act 1994 was passed, the trust deed must make provision as mentioned in one of paragraphs (a) to (c) below—
(a) provision for the establishment of a body of trustees and complying with paragraph 3(2) to (4) above;
(b) provision for the establishment of a body of trustees and complying with paragraph 3B(2) to (9) below;
(c) provision that at any time while the trust subsists there must be a single trustee.
3B (1) The following are the provisions that must be complied with under paragraph 3A(b) above.
(2) The trust deed must—
(a) appoint the initial trustees;
(b) contain rules for the retirement and removal of trustees;
(c) contain rules for the appointment of replacement and additional trustees.
(3) The trust deed must be so framed that at any time while the trust subsists the conditions set out in sub-paragraph (4) below are fulfilled as regards the persons who are then trustees; and in that sub-paragraph “the relevant time” means that time.
(4) The conditions are that—
(a) the number of trustees is not less than three;
(b) all the trustees are resident in the United Kingdom;
(c) the trustees include at least one person who is a professional trustee and at least two persons who are non-professional trustees;
(d) at least half of the non-professional trustees were, before being appointed as trustees, selected in accordance with sub-paragraph (7) or (8) below;
(e) all the trustees so selected are persons who are employees of companies which fall within the founding company’s group at the relevant time, and who do not have and have never had a material interest in any such company.
(5) For the purposes of this paragraph a trustee is a professional trustee at a particular time if—
(a) the trustee is then a trust corporation, a solicitor, or a member of such other professional body as the Board may at that time allow for the purposes of this sub-paragraph,
(b) the trustee is not then an employee or director of any company then falling within the founding company’s group, and
(c) the trustee meets the requirements of sub-paragraph (6) below;
and for the purposes of this paragraph a trustee is a non-professional trustee at a particular time if the trustee is not then a professional trustee for those purposes.
(6) A trustee meets the requirements of this sub-paragraph if—
(a) he was appointed as an initial trustee and, before being appointed as trustee, was selected by (and only by) the persons who later became the non-professional initial trustees, or
(b) he was appointed as a replacement or additional trustee and, before being appointed as trustee, was selected by (and only by) the persons who were the non-professional trustees at the time of the selection.
(7) Trustees are selected in accordance with this sub-paragraph if the process of selection is one under which—
(a) all the persons who are employees of the companies which fall within the founding company’s group at the time of the selection, and who do not have and have never had a material interest in any such company, are (so far as is reasonably practicable) given the opportunity to stand for selection,
(b) all the employees of the companies falling within the founding company’s group at the time of the selection are (so far as is reasonably practicable) given the opportunity to vote, and
(c) persons gaining more votes are preferred to those gaining less.
(8) Trustees are selected in accordance with this sub-paragraph if they are selected by persons elected to represent the employees of the companies falling within the founding company’s group at the time of the selection.
(9) For the purposes of this paragraph a company falls within the founding company’s group at a particular time if—
(a) it is at that time resident in the United Kingdom, and
(b) it is the founding company or it is at that time controlled by the founding company.
3C (1) This paragraph applies where the trust deed provides that at any time while the trust subsists there must be a single trustee.
(2) The trust deed must—
(a) be so framed that at any time while the trust subsists the trustee is a company which at that time is resident in the United Kingdom and controlled by the founding company;
(b) appoint the initial trustee;
(c) contain rules for the removal of any trustee and for the appointment of a replacement trustee.
(3) The trust deed must be so framed that at any time while the trust subsists the company which is then the trustee is a company so constituted that the conditions set out in sub-paragraph (4) below are then fulfilled as regards the persons who are then directors of the company; and in that sub-paragraph “the relevant time” is that time and “the trust company” is that company.
(4) The conditions are that—
(a) the number of directors is not less than three;
(b) all the directors are resident in the United Kingdom;
(c) the directors include at least one person who is a professional director and at least two persons who are non-professional directors;
(d) at least half of the non-professional directors were, before being appointed as directors, selected in accordance with sub-paragraph (7) or (8) below;
(e) all the directors so selected are persons who are employees of companies which fall within the founding company’s group at the relevant time, and who do not have and have never had a material interest in any such company.
(5) For the purposes of this paragraph a director is a professional director at a particular time if—
(a) the director is then a solicitor or a member of such other professional body as the Board may at that time allow for the purposes of this sub-paragraph,
(b) the director is not then an employee of any company then falling within the founding company’s group,
(c) the director is not then a director of any such company (other than the trust company), and
(d) the director meets the requirements of sub-paragraph (6) below;
and for the purposes of this paragraph a director is a non-professional director at a particular time if the director is not then a professional director for those purposes.
(6) A director meets the requirements of this sub-paragraph if—
(a) he was appointed as an initial director and, before being appointed as director, was selected by (and only by) the persons who later became the non-professional initial directors, or
(b) he was appointed as a replacement or additional director and, before being appointed as director, was selected by (and only by) the persons who were the non-professional directors at the time of the selection.
(7) Directors are selected in accordance with this sub-paragraph if the process of selection is one under which—
(a) all the persons who are employees of the companies which fall within the founding company’s group at the time of the selection, and who do not have and have never had a material interest in any such company, are (so far as is reasonably practicable) given the opportunity to stand for selection,
(b) all the employees of the companies falling within the founding company’s group at the time of the selection are (so far as is reasonably practicable) given the opportunity to vote, and
(c) persons gaining more votes are preferred to those gaining less.
(8) Directors are selected in accordance with this sub-paragraph if they are selected by persons elected to represent the employees of the companies falling within the founding company’s group at the time of the selection.
(9) For the purposes of this paragraph a company falls within the founding company’s group at a particular time if—
(a) it is at that time resident in the United Kingdom, and
(b) it is the founding company or it is at that time controlled by the founding company.
4 In Schedule 5, the following shall be inserted at the end of paragraph 12 (position after trust’s establishment)— “ This paragraph applies in relation to trusts established on or before the day on which the Finance Act 1994 was passed. ”
5 In Schedule 5, the following paragraph shall be inserted after paragraph 12—
12A (1) Subject to sub-paragraphs (2) and (3) below, a trust which was at the time it was established a qualifying employee share ownership trust shall continue to be one.
(2) If the trust deed makes provision under paragraph 3A(a) above, the trust shall not be a qualifying employee share ownership trust at any time when the requirements mentioned in paragraph 3(3)(a) to (f) above are not satisfied.
(3) If the trust deed makes provision under paragraph 3A(b) above, the trust shall not be a qualifying employee share ownership trust at any time when the conditions mentioned in paragraph 3B(4)(a) to (e) above are not satisfied.
(4) If the trust deed makes provision under paragraph 3A(c) above, the trust shall not be a qualifying employee share ownership trust at any time when—
(a) there is not a single trustee,
(b) the trustee is not a company which is resident in the United Kingdom and controlled by the founding company, or
(c) the conditions mentioned in paragraph 3C(4)(a) to (e) above are not satisfied as regards the directors of the trustee.
(5) This paragraph applies in relation to trusts established after the day on which the Finance Act 1994 was passed.
Securities
6 (1) Section 69 (chargeable events) shall be amended as follows.
(2) In subsection (1)(c) (retention of securities at expiry of seven years from acquisition) for “period of seven years” there shall be substituted “ qualifying period ”.
(3) After subsection (4) there shall be inserted—
(4A) For the purposes of subsection (1)(c) above the qualifying period is—
(a) seven years, in the case of trusts established on or before the day on which the Finance Act 1994 was passed;
(b) twenty years, in the case of other trusts;
and for this purpose a trust is established when the deed under which it is established is executed.
7 (1) Paragraph 9 of Schedule 5 (transfer of securities) shall be amended as follows.
(2) In sub-paragraph (1)(b) for “period of seven years” there shall be substituted “ qualifying period ”.
(3) After sub-paragraph (2) there shall be inserted—
(2A) For the purposes of sub-paragraph (1) above the qualifying period is—
(a) seven years, in the case of trusts established on or before the day on which the Finance Act 1994 was passed;
(b) twenty years, in the case of other trusts.
Interpretation
8 In Schedule 5, the following paragraph shall be inserted after paragraph 16—
17 For the purposes of this Schedule a trust is established when the deed under which it is established is executed.