(1) Section 119 does not apply by virtue of paragraph (a) of subsection (1) of that section in any of the following cases (any reference in this section to A or B being taken as a reference to the person referred to as A or B, as the case may be, in that subsection).
(2) Case 1 is where B holds the estate or interest as nominee or bare trustee for A.
(3) Case 2 is where A is to hold the estate or interest as nominee or bare trustee for B.
(4) Case 3 is where B holds the estate or interest as nominee or bare trustee for some other person and A is to hold it as nominee or bare trustee for that other person.
(5) Case 4 is where (in a case not falling within subsection (2) or (4) above)—
(a) the transfer or vesting is a conveyance or transfer out of a settlement in or towards satisfaction of a beneficiary’s interest;
(b) the beneficiary’s interest is not an interest acquired for money or money’s worth; and
(c) the conveyance or transfer is a distribution of property in accordance with the provisions of the settlement.
(6) Case 5 is where (in a case not falling within subsection (3) above) A—
(a) is a person carrying on a business which consists of or includes the management of trusts; and
(b) is to hold the estate or interest as trustee acting in the course of that business.
(7) Case 6 is where (in a case not falling within subsection (3) above) A is to hold the estate or interest as trustee and, apart from section 1122(6) of the Corporation Tax Act 2010 (trustees as connected persons), would not be connected with B.
(8) Case 7 is where—
(a) B is a company;
(b) the transfer or vesting is, or is part of, a distribution of assets (whether or not in connection with the winding up of the company); and
(c) the estate or interest was acquired by B by virtue of an instrument which is duly stamped.
(9) This section shall be construed as one with the Stamp Act 1891.
(10) This section applies to instruments executed after the day on which this Act is passed.
(1) This section applies where a lease is granted to a company (“A”) and—
(a) the person granting the lease (“B”) is connected with A; or
(b) some or all of the consideration for the grant of the lease consists of the issue or transfer of shares in a company with which B is connected.
(2) Subsection (3) has effect for the purposes of stamp duty chargeable under Part II of Schedule 13 to the Finance Act 1999 (stamp duty on a lease) by reference to Part I of that Schedule (conveyance or transfer on sale).
(3) If, apart from this subsection, the amount or value of the consideration for the grant would be less than the value determined under subsection (4), the consideration shall be taken to be the value determined under subsection (4).
(4) That value is—
(a) the market value, immediately before the instrument granting the lease is executed, of the lease granted; but
(b) reduced by the value of so much of any actual consideration as does not consist of property.
(5) This section applies only if, in consequence of its application, the lease is chargeable with a greater amount of stamp duty than it would be apart from this section.
(6) 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.
(7) In this section—
“company” means any body corporate;
“shares” includes stock and the reference to shares in a company includes a reference to securities issued by a company.
(8) For the purposes of this section, the question whether any person is connected with another shall be determined in accordance with the provisions of section 1122 of the Corporation Tax Act 2010.
(9) This section shall be construed as one with the Stamp Act 1891.
(10) This section applies to instruments executed on or after 28th March 2000.
(11) But this section does not apply to an instrument giving effect to a contract made on or before 21st March 2000, unless—
(a) the instrument is made in consequence of the exercise after that date of any option, right of pre-emption or similar right; or
(b) the instrument transfers the property in question to, or vests it in, a person other than the purchaser under the contract, because of an assignment (or, in Scotland, assignation) or further contract made after that date.
(12) This section shall be deemed to have come into force on 28th March 2000.
122 Marketable securities transferred etc for exempt property.
(1) Subsection (2) applies where—
(a) an instrument transferring marketable securities would not, apart from this section, be or fall to be treated as a transfer on sale for the purposes of stamp duty; but
(b) the transfer of the marketable securities is for consideration; and
(c) the consideration is or includes any qualifying property (“the other property”).
(2) For the purposes of Part I of Schedule 13 to the Finance Act 1999 (stamp duty on conveyance or transfer on sale) the instrument transferring the marketable securities shall be taken to be a transfer on sale of those securities.
(3) If the amount or value of the consideration for that transfer on sale would (apart from this subsection) exceed the market value of the marketable securities immediately before the execution of the instrument transferring them, the amount or value of the consideration shall be taken to be equal to that market value.
For this purpose 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.
(4) Subsection (2) has effect even though—
(a) the transfer of the marketable securities is the whole or part of the consideration for a sale of the other property; or
(b) the transaction is by way of exchange.
(5) Subsection (2) does not affect any charge to stamp duty in respect of the same or any other instrument so far as it relates to the transfer of the other property.
(6) In this section “qualifying property” means any debt due, stock or securities, to the extent that the debt, stock or securities are not chargeable securities, within the meaning of Part IV of the Finance Act 1986 (stamp duty reserve tax).
(7) This section shall be construed as one with the Stamp Act 1891.
(8) This section applies to instruments executed on or after 28th March 2000.
(9) But this section does not apply to an instrument giving effect to a contract made on or before 21st March 2000, unless—
(a) the instrument is made in consequence of the exercise after that date of any option, right of pre-emption or similar right; or
(b) the instrument transfers the property in question to, or vests it in, a person other than the purchaser under the contract, because of an assignment (or, in Scotland, assignation) or further contract made after that date.
(10) This section shall be deemed to have come into force on 28th March 2000.
123 Transfer of property between associated companies: Great Britain.
(1) Amend section 42 of the Finance Act 1930 as follows.
(2) In subsection (2) (instruments on which stamp duty not chargeable) in paragraph (a) for “to another" substitute “ (“the transferor”) to another (“the transferee”) ”.
(3) In that subsection, after paragraph (b) insert— “ unless at the time the instrument is executed arrangements are in existence by virtue of which at that or some later time any person has or could obtain, or any persons together have or could obtain, control of the transferee but not of the transferor. ”.
(4) In subsection (2B) (body to be parent of another if beneficial owner of 75% of ordinary share capital) after “if at that time the first body" insert “ (a) ” and at the end of the subsection add—
(b) is beneficially entitled to not less than 75 per cent of any profits available for distribution to equity holders of the second body; and
(c) would be beneficially entitled to not less than 75 per cent of any assets of the second body available for distribution to its equity holders on a winding-up.
.
(5) In subsection (3)—
(a) after “The ownership referred to in" insert “ paragraph (a) of ”; and
(b) for “this section" substitute “ that paragraph ”.
(6) At the end of the section add—
(5) Schedule 18 to the Income and Corporation Taxes Act 1988 shall apply for the purposes of paragraphs (b) and (c) of subsection (2B) as it applies for the purposes of paragraphs (a) and (b) of section 413(7) of that Act; but this is subject to subsection (6).
(6) In determining for the purposes of this section whether a body corporate is the parent of the transferor, paragraphs 5(3) and 5B to 5E of Schedule 18 to the Income and Corporation Taxes Act 1988 shall not apply for the purposes of paragraph (b) or (c) of subsection (2B).
(7) In this section, “control” shall be construed in accordance with section 840 of the Income and Corporation Taxes Act 1988.
.
(7) This section has effect in relation to instruments executed after the day on which this Act is passed.
124 Transfer of property between associated companies: Northern Ireland.
(1) Amend section 11 of the Finance Act (Northern Ireland) 1954 as follows.
(2) After subsection (2) (instruments on which stamp duty not chargeable) insert—
(2A) But this section does not apply to an instrument by virtue of subsection (2)(a) if, at the time the instrument is executed, arrangements are in existence by virtue of which at that or some later time any person has or could obtain, or any persons together have or could obtain, control of the transferee but not of the transferor.
.
(3) In subsection (3AA) (body to be parent of another if beneficial owner of 75% of ordinary share capital) after “if at that time the first body" insert “ (a) ” and at the end of the subsection add—
(b) is beneficially entitled to not less than 75 per cent of any profits available for distribution to equity holders of the second body; and
(c) would be beneficially entitled to not less than 75 per cent of any assets of the second body available for distribution to its equity holders on a winding-up.
.
(4) In subsection (3A)—
(a) after “The ownership referred to in" insert “ paragraph (a) of ”; and
(b) for “this section" substitute “ that paragraph ”.
(5) At the end of the section add—
(6) Schedule 18 to the Income and Corporation Taxes Act 1988 shall apply for the purposes of paragraphs (b) and (c) of subsection (3AA) as it applies for the purposes of paragraphs (a) and (b) of section 413(7) of that Act; but this is subject to subsection (7).
(7) In determining for the purposes of this section whether a body corporate is the parent of the transferor, paragraphs 5(3) and 5B to 5E of Schedule 18 to the Income and Corporation Taxes Act 1988 shall not apply for the purposes of paragraph (b) or (c) of subsection (3AA).
(8) In this section, “control” shall be construed in accordance with section 840 of the Income and Corporation Taxes Act 1988.
.
(6) This section has effect in relation to instruments executed after the day on which this Act is passed.
125 Grant of leases etc between associated companies.
(1) Amend section 151 of the Finance Act 1995 as follows.
(2) In subsection (1) (stamp duty not chargeable on leases etc) at the end insert the following paragraph—
This subsection is subject to subsection (4A) below.
.
(3) After subsection (4) insert—
(4A) An instrument shall not be exempt from stamp duty by virtue of subsection (1) above if at the time the instrument is executed arrangements are in existence by virtue of which at that or some later time any person has or could obtain, or any persons together have or could obtain, control of the lessee but not of the lessor.
.
(4) In subsection (8) (body to be parent of another if beneficial owner of 75% of ordinary share capital) after “if at that time the first body" insert “ (a) ” and at the end of the subsection add—
(b) is beneficially entitled to not less than 75 per cent of any profits available for distribution to equity holders of the second body; and
(c) would be beneficially entitled to not less than 75 per cent of any assets of the second body available for distribution to its equity holders on a winding-up.
.
(5) In subsection (10)—
(a) after “The ownership referred to in" insert “ paragraph (a) of ”; and
(b) for “this section" substitute “ that paragraph ”.
(6) After subsection (10) insert—
(10A) Schedule 18 to the Income and Corporation Taxes Act 1988 shall apply for the purposes of paragraphs (b) and (c) of subsection (8) as it applies for the purposes of paragraphs (a) and (b) of section 413(7) of that Act; but this is subject to subsection (10B).
(10B) In determining for the purposes of this section whether a body corporate is the parent of the lessor, paragraphs 5(3) and 5B to 5E of Schedule 18 to the Income and Corporation Taxes Act 1988 shall not apply for the purposes of paragraph (b) or (c) of subsection (8) above.
(10C) In this section, “control” shall be construed in accordance with section 840 of the Income and Corporation Taxes Act 1988.
.
(7) This section has effect in relation to instruments executed after the day on which this Act is passed.
(1) Amend section 55 of the Stamp Act 1891 (calculation of ad valorem duty in respect of stock and securities) as follows.
(2) After subsection (1) insert—
(1A) For the purposes of subsection (1), it is immaterial—
(a) whether, at the time of the execution of the conveyance on sale, the stock or marketable security is or has been issued or is to be issued; and
(b) in a case where the stock or marketable security is to be issued, when it is to be, or is, issued and whether the issue is certain or contingent.
.
(3) This section has effect in relation to instruments executed after the day on which this Act is passed.
127 Company acquisition reliefs: redeemable shares.
(1) Amend section 75 of the Finance Act 1986 (acquisitions: reliefs) in accordance with subsections (2) and (3).
(2) In subsection (4), in paragraph (a) (which requires that the consideration for the acquisition consists of or includes the issue of shares) after “the issue of" insert “ non-redeemable ”.
(3) In subsection (4), after paragraph (b) add—
In paragraph (a) above, “non-redeemable shares” means shares which are not redeemable shares.
.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) This section has effect in relation to instruments executed after the day on which this Act is passed.
(1) Where a lease is or has been surrendered or, in Scotland, renounced at any time, a document evidencing the surrender or renunciation shall be treated for the purposes of stamp duty as if it were a deed executed at that time effecting the surrender or renunciation.
(2) Stamp duty shall be chargeable by virtue of subsection (1) on a document containing a statutory declaration, notwithstanding anything in land registration rules under the Land Registration Act 2002.
(3) Stamp duty shall not be chargeable by virtue of subsection (1) on any lease or agreement for a lease or with respect to any letting if the lease or agreement—
(a) is made in consideration of the surrender or renunciation; and
(b) relates to the same subject matter as the lease surrendered or renounced.
(4) Stamp duty shall not be chargeable by virtue of subsection (1) on any document if a document falling within subsection (5) has been duly stamped.
(5) The documents that fall within this subsection are—
(a) a deed effecting the surrender or renunciation;
(b) an agreement which falls to be treated for the purposes of stamp duty as if it were such a deed;
(c) any document which falls to be so treated by virtue of subsection (1); and
(d) any lease or agreement falling within subsection (3).
(6) A land registrar shall regard a document which by virtue of subsection (4) is not chargeable to stamp duty by virtue of subsection (1) as not duly stamped unless—
(a) it is stamped as if it were a deed effecting the surrender or renunciation; or
(b) it appears by some stamp ... on it that the full and proper duty chargeable on such a deed has been paid on another document; or
(c) it appears by some stamp ... on it that a lease or agreement falling within subsection (3) has been duly stamped; or
(d) the land registrar is aware of a document falling within subsection (5) which has been duly stamped.
(7) The documents which evidence the surrender or renunciation of a lease shall be taken to include an application, in consequence of the surrender or renunciation of the lease, for—
(a) the making in a land register, or
(b) the removal from a land register,
of an entry relating to the lease.
(8) In this section—
“land register"—
(a) in relation to England and Wales, means the register kept under section 1 of the Land Registration Act 2002;
(b) in relation to Scotland, means the Land Register of Scotland or the General Register of Sasines;
(c) in relation to Northern Ireland, means the register maintained under section 10 of the Land Registration Act (Northern Ireland) 1970;
“land registrar"—
(a) in relation to England and Wales, means the Chief Land Registrar or any other officer of Her Majesty’s Land Registry exercising functions of the Chief Land Registrar;
(b) in relation to Scotland, means the Keeper of the Registers of Scotland;
(c) in relation to Northern Ireland, means the Registrar of Titles or any other official of the Land Registry exercising functions of the Registrar of Titles.
(9) This section shall be construed as one with the Stamp Act 1891.
(10) This section applies to documents relating to the surrender or renunciation of a lease after the day on which this Act is passed.
129 Abolition of duty on instruments relating to intellectual property.
(1) No stamp duty is chargeable on an instrument for the sale, transfer or other disposition of intellectual property.
(2) In subsection (1) “intellectual property” means—
(a) any patent, trade mark, registered design, copyright or design right,
(b) any plant breeders’ rights and rights under section 7 of the Plant Varieties Act 1997,
(c) any licence or other right in respect of anything within paragraph (a) or (b), and
(d) any rights under the law of a country or territory outside the United Kingdom that correspond or are similar to those within paragraph (a), (b) or (c).
(3) Schedule 34 to this Act (which contains provisions supplementing this section) has effect.
(4) This section and Schedule 34 shall be construed as one with the Stamp Act 1891.
(5) This section applies to instruments executed on or after 28th March 2000.
(6) This section shall be deemed to have come into force on that date.
131 Relief for certain instruments executed before this Act has effect.
(1) This section applies to an instrument of any of the following descriptions executed in the period beginning with 22nd March 2000 and ending with the day on which this Act is passed—
(a) an instrument transferring or vesting an estate or interest in land in such circumstances as are mentioned in section 119 (transfer of land to connected company), in a case specified in section 120 (excepted cases);
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) If the instrument is not stamped until after the day on which this Act is passed, the law in force at the time of its execution shall be deemed for stamp duty purposes to be that which would have applied if it had been executed after that day.
(3) If the Commissioners are satisfied that—
(a) the instrument was stamped on or before the day on which this Act is passed,
(b) stamp duty was chargeable in respect of it, and
(c) had it been stamped after that day no stamp duty, or less stamp duty, would have been chargeable,
they shall pay to such person as they consider appropriate an amount equal to the duty (and any interest or penalty) that would not have been payable if the law in force at the time of execution of the instrument had been that which would have applied had it been executed after that day.
(4) Any such payment must be claimed before 1st April 2001.
(5) Entitlement to a payment is subject to compliance with such conditions as the Commissioners may determine with respect to the production of the instrument, to its being stamped so as to indicate that it has been produced under this section or to other matters.
(6) For the purposes of section 10 of the Exchequer and Audit Departments Act 1866 (Commissioners to deduct repayments from gross revenues) any amount paid under this section shall be treated as a repayment.
(7) This section shall be construed as one with the Stamp Act 1891.
(1) Amend section 55 of the Finance Act 1987 (Crown exemption from stamp duty) as follows.
(2) In subsection (1) (which specifies the bodies relieved from stamp duty)—
(a) after “agreed to be made" insert “ (a) ”;
(b) after “Minister of the Crown or" insert “ (b) ”; and
(c) after “Treasury, or" insert “ (c) ”.
(3) In subsection (1), after “National Assembly for Wales," insert
or
(d) to the Northern Ireland Assembly Commission,
.
(4) Subsection (3) has effect in relation to instruments executed on or after 28th March 2000.
(5) This section shall be deemed to have come into force on 28th March 2000.
133 Loan capital where return bears inverse relationship to results.
(1) In section 79 of the Finance Act 1986 (loan capital), after subsection (7) insert—
(7A) Subsection (4) above shall not be prevented from applying to an instrument by virtue of subsection (6)(b) above by reason only that the loan capital concerned carries a right to interest which—
(a) reduces in the event of the results of a business or part of a business improving, or the value of any property increasing, or
(b) increases in the event of the results of a business or part of a business deteriorating, or the value of any property diminishing.
.
(2) For the purposes of stamp duty, subsection (1) above has effect where the instrument is executed on or after 21st March 2000.
(3) For the purposes of stamp duty reserve tax, subsection (1) above has effect—
(a) in relation to the charge to tax under section 87 of the Finance Act 1986, where—
(i) the agreement to transfer is conditional and the condition is satisfied on or after 21st March 2000, or
(ii) the agreement is not conditional and is made on or after that date;
(b) in relation to the charge to tax under section 93(1) of that Act, where securities are transferred, issued or appropriated on or after 21st March 2000 (whenever the arrangement was made);
(c) in relation to the charge to tax under section 96(1) of that Act, where securities are transferred or issued on or after 21st March 2000 (whenever the arrangement was made);
(d) in relation to the charge to tax under section 93(10) of that Act, where securities are issued or transferred on sale, under terms there mentioned, on or after 21st March 2000;
(e) in relation to the charge to tax under section 96(8) of that Act, where securities are issued or transferred on sale, under terms there mentioned, on or after 21st March 2000.
134 Transfers between depositary receipt systems and clearance systems.
(1) In Part III of the Finance Act 1986 (stamp duty), after section 72 insert—
Transfers between depositary receipt system and clearance system
Transfers between depositary receipt system and clearance system.
72A (1) Where an instrument transfers relevant securities of a company incorporated in the United Kingdom between a depositary receipt system and a clearance system—
(a) the provisions of section 67(2) to (5) or, as the case may be, section 70(2) to (5) above shall not apply, and
(b) the stamp duty chargeable on the instrument is £5.
(2) A transfer between a depositary receipt system and a clearance system means a transfer—
(a) from (or to) a company that at the time of the transfer falls within section 67(6) above, and
(b) to (or from) a company that at that time falls within section 70(6) above.
(3) This section does not apply to a transfer from a clearance system (that is, from such a company as is mentioned in subsection (2)(b) above) if at the time of the transfer an election is in force under section 97A below in relation to the clearance services for the purposes of which the securities are held immediately before the transfer.
.
(2) In Part IV of the Finance Act 1986 (stamp duty reserve tax), after section 97A insert—
Transfer between depositary receipt system and clearance system.
97B (1) There shall be no charge to tax under section 93 or 96 above where securities are transferred between a depositary receipt system and a clearance system.
(2) A transfer between a depositary receipt system and a clearance system means a transfer—
(a) from (or to) a company which at the time of the transfer falls within section 67(6) above, and
(b) to (or from) a company which at that time falls within section 70(6) above.
(3) This section does not apply to a transfer from a clearance system (that is, from such a company as is mentioned in subsection (2)(b) above) if at the time of the transfer an election is in force under section 97A above in relation to the clearance services for the purposes of which the securities are held immediately before the transfer.
.
(3) In sections 67(9), 70(9), 95(1) and 97(1) of the Finance Act 1986 (transfers between depositary receipt systems or between clearance systems), the words “and is resident in the United Kingdom" and “and is so resident" shall cease to have effect.
(4) In section 97A of that Act (clearance services: election for alternative system of charge), after subsection (12) add—
(13) Nothing in section 70(9) or 97(1) above has effect to prevent a charge to stamp duty or stamp duty reserve tax arising—
(a) on a transfer to which subsection (5) above applies, or
(b) on a deemed transfer under subsection (11) above.
.
(5) The amendments in this section have effect as follows—
(a) subsection (1), and subsections (3) and (4) as they apply for stamp duty purposes, apply in relation to instruments executed after the day on which this Act is passed;
(b) subsection (2), and subsections (3) and (4) as they apply for the purposes of stamp duty reserve tax, apply where the securities are transferred after that day.
136 Disposals of assets for which a VAT repayment is claimed.
(1) In section 3(2) of the Value Added Tax Act 1994 (taxable persons and registration), for “Schedules 1 to 3" there shall be substituted “ Schedules 1 to 3A ”.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) In section 69(1)(a) of that Act (breaches of regulatory provisions), for “or paragraph 5 of Schedule 3" there shall be substituted “ , paragraph 5 of Schedule 3 or paragraph 5 of Schedule 3A ”.
(4) In section 73(3)(b) of that Act (failure to make returns etc.), for “or paragraph 6(2) or (3) of Schedule 3" there shall be substituted “ , paragraph 6(2) or (3) of Schedule 3 or paragraph 6(1) or (2) of Schedule 3A ”.
(5) In section 74(1)(c) of that Act (interest on VAT recovered or recoverable by assessment), for “under paragraph 8 of Schedule 3" there shall be substituted “ , under paragraph 8 of Schedule 3 or under paragraph 7 of Schedule 3A ”.
(6) In the following provisions of that Act—
(a) paragraph 1(4)(a) and (5) of Schedule 1 (registration in respect of taxable supplies); and
(b) paragraph 1(4) of Schedule 2 (registration in respect of supplies from other member States),
for “or paragraph 6(3) of Schedule 3" there shall be substituted “ , paragraph 6(3) of Schedule 3 or paragraph 6(2) of Schedule 3A ”.
(7) In paragraph 1(3) of Schedule 3 to that Act (registration in respect of acquisitions from other member States), for “or paragraph 6(2) of Schedule 2" there shall be substituted “ , paragraph 6(2) of Schedule 2 or paragraph 6(2) of Schedule 3A ”.
(8) After Schedule 3 to that Act there shall be inserted the Schedule 3A set out in Schedule 36 to this Act.
(9) In paragraph 5(5) of Schedule 4 to that Act (matters to be treated as a supply of goods or services), for the words from “under sections 25 and 26" to the end there shall be substituted—
(a) under sections 25 and 26, to credit for the whole or any part of the VAT on the supply, acquisition or importation of those goods or of anything comprised in them; or
(b) under a scheme embodied in regulations made under section 39, to a repayment of VAT on the supply or importation of those goods or of anything comprised in them.
.
(10) Subsections (1) to (7) and (9) above have effect in relation to supplies made on or after 21st March 2000; and subsection (8) above and Schedule 36 to this Act have effect in relation to relevant supplies (within the meaning of Schedule 3A to that Act) made on or after that date.
137 Gold: penalty for failure to comply with record-keeping requirements etc.
(1) Part IV of the Value Added Tax Act 1994 (administration, collection and enforcement) is amended as follows.
(2) After section 69 (breaches of regulatory provisions) insert—
Breach of record-keeping requirements etc. in relation to transactions in gold.
69A (1) This section applies where a person fails to comply with a requirement of regulations under section 13(5)(a) or (b) of the Finance Act 1999 (gold: duties to keep records or provide information).
Where this section applies, the provisions of section 69 do not apply.
(2) A person who fails to comply with any such requirement is liable to a penalty not exceeding 17.5% of the value of the transactions to which the failure relates.
(3) For the purposes of assessing the amount of any such penalty, the value of the transactions to which the failure relates shall be determined by the Commissioners to the best of their judgement and notified by them to the person liable.
(4) No assessment of a penalty under this section shall be made more than 2 years after evidence of facts sufficient in the opinion of the Commissioners to justify the making of the assessment comes to their knowledge.
(5) The reference in subsection (4) above to facts sufficient to justify the making of the assessment is to facts sufficient—
(a) to indicate that there had been a failure to comply with any such requirement as is referred to in subsection (1) above, and
(b) to determine the value of the transactions to which the failure relates.
(6) A failure by any person to comply with any such requirement as is mentioned in subsection (1) above shall not give rise to a liability to a penalty under this section if the person concerned satisfies the Commissioners or, on appeal, a tribunal, that there is a reasonable excuse for the failure.
(7) Where by reason of conduct falling within subsection (1) above a person—
(a) is assessed to a penalty under section 60, or
(b) is convicted of an offence (whether under this Act or otherwise),
that conduct shall not also give rise to a penalty under this section.
.
(3) In section 70(1) of that Act (mitigation of penalties), for “or 67" substitute “ , 67 or 69A ”.
(4) In section 76(1) of that Act (assessment of amount due by way of penalty etc.), for “to 69" (in both places) substitute “ to 69A ”.
(5) In section 83 of that Act (appeals), in paragraph (n) for “59 to 69" substitute “ 59 to 69A ”.
(1) The Inheritance Tax Act 1984 is amended as follows.
(2) In section 13 (dispositions by close companies for benefit of employees), in subsection (4), after paragraph (b) insert
; or
(c) if the trusts are those of an employee share ownership plan approved under Schedule 8 to the Finance Act 2000, of any power to appropriate shares to, or acquire shares on behalf of, individuals under the plan.
.
(3) In section 72 (property leaving employee trusts and newspaper trusts)—
(a) in subsection (2) after “subsection (4)" insert “ , (4A) ”, and
(b) after subsection (4) insert—
(4A) If the trusts are those of an employee share ownership plan approved under Schedule 8 to the Finance Act 2000, tax shall not be chargeable under this section by virtue of subsection (3)(b) above on an appropriation of shares to, or acquisition of shares on behalf of, an individual under the plan.
.
(4) In section 86 (trusts for benefit of employees), in subsection (3), after paragraph (b) insert
; or
(c) the trusts on which the settled property is held are those of an employee share ownership plan approved under Schedule 8 to the Finance Act 2000.
.
139 Operating expenditure incurred while safeguard relief applies.
(1) After section 9 of the Oil Taxation Act 1975 insert—
Operating expenditure incurred while section 9 applies.
9A (1) Subsections (2) and (3) below apply where—
(a) operating expenditure is incurred by a participator in an oil field during a chargeable period to which section 9(1) of this Act applies (“the relevant chargeable period”);
(b) a claim for the allowance of the expenditure is made under Schedule 5 or 6 for the claim period which coincides with the relevant chargeable period (“the relevant claim period”); and
(c) the claim is made more than four months after the end of the relevant claim period.
(2) The Board shall not allow the expenditure except to such extent (if any) as they consider necessary to secure that the participator’s overall liability to tax is no greater than it would have been if the claim had been allowed before the Board had made an assessment to tax or a determination on or in relation to the participator in respect of the field for the relevant chargeable period.
(3) Any amounts of oil allowance which, if the claim had been allowed before the Board had made an assessment to tax or a determination on or in relation to the participator in respect of the field for the relevant chargeable period, would not have been utilised by him in that period, or any subsequent chargeable period, shall be disregarded for the purposes of section 8(6) of this Act.
(4) Where—
(a) the participator transfers the whole or part of his interest in the oil field to another person; and
(b) Parts II and III of Schedule 17 to the Finance Act 1980 apply to the transfer,
subsections (2) and (3) above shall have effect as if references to the participator included references to that other person.
(5) In this section—
“acquisition”, in relation to an asset, includes acquisition of an interest in the asset;
“capital expenditure” means expenditure on the acquisition or construction of an asset which is to be used for any of the following purposes—
for ascertaining the extent or characteristics of any oil-bearing area wholly or partly included in the field, or what the reserves of oil of any such oil-bearing area are;
for winning oil from the field;
for transporting oil won from the field, whether to a place in the United Kingdom or to a place in another country; or
for the initial treatment or initial storage of oil won from the field;
“operating expenditure” means any expenditure other than capital expenditure.
(6) Where a claim period is a period of twelve months, this section shall have effect as if—
(a) that period were two separate claim periods of six months each;
(b) any claim for that period under Schedule 5 or 6 were two separate claims, one for each of those separate periods; and
(c) the operating expenditure to which that claim relates were apportioned between those separate periods and those separate claims in such manner as may be just and reasonable.
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(2) This section has effect in relation to expenditure incurred on or after 21st March 2000.
(1) In section 42 of the Finance Act 1996 (amount of landfill tax), in subsections (1)(a) and (2) for “£10" substitute “ £11 ”.
(2) This section has effect in relation to taxable disposals made, or treated as made, on or after 1st April 2000.
(1) In section 62 of the Finance Act 1996 (regulations about taxable disposals) amend subsection (7) (limit on power to make regulations providing that a disposal is not taxable) as follows.
(2) For paragraph (a) substitute—
(a) the material comprised in the disposal is held temporarily pending one or more of the following—
(i) the incineration or recycling of the material, or
(ii) the removal of the material for use elsewhere, or
(iii) the use of the material, if it is qualifying material within the meaning of section 42(3) above, for the restoration to use of the site at which the disposal takes place, or any part of that site, upon completion of waste disposal operations at the site, or as the case may be, that part of the site, or
(iv) the sorting of the material with a view to its removal elsewhere or its eventual disposal, and
.
(3) In paragraph (b) for “the temporary disposal is made" substitute “ the material in question is held temporarily ”.
(1) In section 60 of the Finance Act 1996 (which gives effect to Schedule 5 to the Act), after “penalties" insert “ , secondary liability ”.
(2) Accordingly the sidenote to that section becomes “Information, powers, penalties, secondary liability, etc".
(3) At the end of Schedule 5 to that Act (supplementary provisions relating to landfill tax) add the Part VIII set out in Schedule 37 to this Act.
(4) Subsection (3) has effect in relation to taxable disposals made on or after the day on which this Act is passed.
145 Information about interest etc paid, credited or received.
(1) In section 17 of the Taxes Management Act 1970 (interest paid or credited by banks etc without or after deduction of tax), subsections (4B) and (4C) shall cease to have effect.
(2) In subsection (5) of that section—
(a) for paragraph (c) there shall be substituted—
(c) that if a person is required—
(i) to make and deliver a return under subsection (1) above;
(ii) to include information in such a return under any provision made under paragraph (a) above; or
(iii) to furnish information under any provision made under paragraph (b) above,
and the notice under subsection (1) above specifies the form in which the return is to be made and delivered, or the information is to be included or furnished, the person shall make and deliver the return, or include or furnish the information, in that form;
;
and
(b) at the end there shall be inserted—
The further information required as mentioned in paragraph (a) or (b) above may include, in prescribed cases, the name and address of the person beneficially entitled to the interest paid or credited.
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(3) After paragraph (a) of subsection (6) of that section there shall be inserted—
(aa) may make provision with respect to the furnishing of information by persons required—
(i) to make and deliver a return under subsection (1) above;
(ii) to include information in such a return under any provision made under subsection (5)(a) above; or
(iii) to furnish information under any provision made under subsection (5)(b) above,
including the inspection of books, documents and other records on behalf of the Board;
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(4) In subsection (1) of section 18 of that Act (interest paid without or after deduction of tax)—
(a) for “by whom" there shall be substituted “ by or through whom ”; and
(b) for “who receives any such interest" there shall be substituted “ by whom any such interest is received ”.
(5) Subsections (3) and (3AA) of that section shall cease to have effect.
(6) In subsection (3A) of that section, after “interest paid" there shall be inserted “ or received ”.
(7) At the end of subsection (3B) of that section there shall be inserted—
The further information required as mentioned in paragraph (a) above may include, in prescribed cases, the name and address of the person beneficially entitled to the interest paid or received.
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(8) After paragraph (a) of subsection (3C) of that section there shall be inserted—
(aa) may make provision with respect to the furnishing of information by persons required to furnish information under subsection (1) above, or under any provision made under subsection (3B)(a) above, including the inspection of books, documents and other records on behalf of the Board;
.
(9) For subsection (3D) of that section there shall be substituted—
(3D) For the purposes of this section interest shall be treated as received by any person if it is received by another person at his direction or with his consent.
(3E) For the purposes of this section the following shall be treated as interest—
(a) any dividend in respect of a share in a building society;
(b) any amount to which a person holding a relevant discounted security is entitled on the redemption of that security; and
(c) any foreign dividend.
(3F) In subsection (3E)(b) above “relevant discounted security” has the meaning given by paragraph 3 of Schedule 13 to the Finance Act 1996.
(3G) In subsection (3E)(c) above “foreign dividend” means any annual payment, interest or dividend payable out of, or in respect of the stocks, funds, shares or securities of—
(a) a body of persons that is not resident in the United Kingdom, or
(b) a government or public or local authority in a country outside the United Kingdom.
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(10) Section 482A of Taxes Act 1988 (audit powers in relation to non-residents) shall cease to have effect.
(11) This section has effect in relation to amounts paid, credited or received on or after 6th April 2001.
(1) After section 20B of the Taxes Management Act 1970 insert—
Orders for the delivery of documents.
20BA (1) The appropriate judicial authority may make an order under this section if satisfied on information on oath given by an authorised officer of the Board—
(a) that there is reasonable ground for suspecting that an offence involving serious fraud in connection with, or in relation to, tax is being, has been or is about to be committed, and
(b) that documents which may be required as evidence for the purposes of any proceedings in respect of such an offence are or may be in the power or possession of any person.
(2) An order under this section is an order requiring the person who appears to the authority to have in his possession or power the documents specified or described in the order to deliver them to an officer of the Board within—
(a) ten working days after the day on which notice of the order is served on him, or
(b) such shorter or longer period as may be specified in the order.
For this purpose a “working day” means any day other than a Saturday, Sunday or public holiday.
(3) Where in Scotland the information mentioned in subsection (1) above relates to persons residing or having places of business at addresses situated in different sheriffdoms—
(a) an application for an order may be made to the sheriff for the sheriffdom in which any of the addresses is situated, and
(b) where the sheriff makes an order in respect of a person residing or having a place of business in his own sheriffdom, he may also make orders in respect of all or any of the other persons to whom the information relates (whether or not they have an address within the sheriffdom).
(4) Schedule 1AA to this Act contains provisions supplementing this section.
.
(2) After Schedule 1 to the Taxes Management Act 1970, insert the Schedule 1AA set out in Schedule 39 to this Act.
(3) In section 20BB of that Act (falsification etc. of documents)—
(a) in subsection (1)(a), after “above" insert “ or an order under section 20BA above ”;
(b) in subsection (3), after “notice is given" insert “ or the order is made ”; and
(c) after “notice", in the second place where it occurs in that subsection, insert “ or order ”.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In Schedule 5A to the National Loans Act 1968 (the Debt Management Account), in paragraph 11, after sub-paragraph (1) (excess of Account’s liabilities over its assets to be liability of National Loans Fund) insert—
(1A) The Treasury may pay from the National Loans Fund to the Debt Management Account an amount representing all or any of any excess mentioned in sub-paragraph (1) above, and if they do the liability there mentioned shall be extinguished or reduced accordingly.
.
(1) In section 4 of the National Savings Bank Act 1971 (deposits: limits and minimum balances), after subsection (3) insert—
(4) Regulations under section 2 of this Act may include any provision that may be included in an order under this section.
.
(2) In section 26 of that Act (regulations and orders etc.), for subsections (2) and (3) (parliamentary control of regulations under section 2 and orders under section 4) substitute—
(2) A statutory instrument containing—
(a) regulations under section 2 of this Act, or
(b) an order under section 4 of this Act,
shall be subject to annulment in pursuance of a resolution of either House of Parliament.
.
(3) If a draft of a statutory instrument containing an order under section 4 of that Act has been laid before Parliament, but the instrument has not been made, before the day on which this Act is passed, the instrument may be made either—
(a) as if section 26 of that Act had not been amended by this section, or
(b) in reliance on section 26(2) as substituted by this section.
The instrument shall be taken to be made as mentioned in paragraph (a) unless it states that it is made in reliance on section 26(2) as substituted by this section.
(1) This section applies to a national savings certificate issued under section 12 of the National Loans Act 1968 if—
(a) it was purchased on or before 7th October 1999, and
(b) the fifth anniversary of its purchase falls after the day on which this Act is passed.
(2) The power of the Treasury (under the prospectus under which the certificate was issued) to alter or end the extension terms for the certificate shall have effect as if it included power for the Treasury to decide before the fifth anniversary of the certificate’s purchase that the extension terms for the certificate are to involve it (so far as not cashed in) undergoing automatic roll-over on that anniversary.
(3) Where a certificate undergoes automatic roll-over on any occasion, the Treasury has power to decide before the fifth anniversary of that occasion that the extension terms for the certificate are to involve it (so far as not cashed in) undergoing automatic roll-over on that anniversary.
(4) For the purposes of this section a certificate undergoes “automatic roll-over” on an occasion if during the period of 5 years beginning with that occasion the certificate (so far as not cashed in) will earn interest as though it were a national savings certificate—
(a) purchased on that occasion for a term of 5 years at a price equal to the value (rounded, if necessary, to the nearest penny) of the certificate on that occasion, and
(b) earning such interest (whether at fixed rates or at rates that give effect to index-linking or partly one and partly the other) as has been decided by the Treasury before that occasion.
(5) Subject to subsections (2) and (3), a certificate to which this section applies continues (so far as not cashed in) to be held on the terms of the prospectus under which it was issued.
However, any obligation of the Director of Savings to take steps to inform the holder of the certificate before the fifth anniversary of its purchase of what is to happen to the certificate after that anniversary extends to taking the corresponding steps in relation to the fifth anniversary of each occasion on which the certificate has undergone automatic roll-over.
(6) Nothing in this section shall be taken as prejudicing the rights of the holder of a certificate to which this section applies to apply at any time to cash in the certificate.
(7) References in this section to cashing in a certificate include reinvesting it.
(1) For section 4 of the Exchange Equalisation Account Act 1979 (examination and certification of the Account) substitute—
Annual accounts.
4 (1) For each financial year in which the Account operates the Treasury shall prepare, in such form and on such basis as they may prescribe, accounts in relation to the transactions, assets and liabilities of the Account.
(2) The Treasury shall send the accounts to the Comptroller and Auditor General not later than 30th November of the financial year following that to which the accounts relate.
(3) The Comptroller and Auditor General shall examine and certify the accounts, issue a report on them and send the certified accounts and the report to the Treasury not later than 15th January of that year.
(4) The Treasury shall lay the certified accounts and the report before each House of Parliament not later than 31st January of that year.
(5) In certifying accounts under subsection (3) above the Comptroller and Auditor General shall state whether or not it is his opinion, having regard to his examination of the accounts, that—
(a) the resources of the Account have been used in accordance with the provisions of this Act;
(b) the transactions of the Account are in accordance with any relevant authority; and
(c) the accounts have been prepared in the form, and on the basis, prescribed under subsection (1) above.
(6) The Treasury may by order made by statutory instrument amend the date for the time being specified in any of subsections (2) to (4) above.
(7) Before making an order under subsection (6) above the Treasury shall consult the Comptroller and Auditor General.
(8) A statutory instrument containing an order under subsection (6) above shall be subject to annulment in pursuance of a resolution of the House of Commons.
(9) In this section a reference to the use of resources is a reference to their expenditure, consumption or reduction in value.
.
(2) This section applies in relation to the operation of the Exchange Equalisation Account in the financial year ending 31st March 2001 and subsequent financial years.
In this Act “the Taxes Act 1988” means the Income and Corporation Taxes Act 1988 and “ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005 and “ITA 2007” means the Income Tax Act 2007.
(1) The enactments mentioned in Schedule 40 to this Act (which include provisions that are spent or of no practical utility) are repealed to the extent specified in the third column of that Schedule.
(2) The repeals specified in that Schedule have effect subject to the commencement provisions and savings contained or referred to in the notes set out in that Schedule.
Section 6.
Converting unleaded petrol into leaded petrol
1 (1) In paragraph 1(1) of Schedule 2A to the Hydrocarbon Oil Duties Act 1979 (converting unleaded petrol into leaded petrol), before paragraph (a) insert—
(aa) adding lead to unleaded petrol in respect of which duty has been charged at the rate specified in section 6(1A)(a);
.
(2) In paragraph 8 of that Schedule (rate for mixtures of light oil), for sub-paragraph (2) substitute—
(2) In the case of a mixture produced in contravention of paragraph 1 above, the rate is the rate in force under section 6(1A)(b) at the time the mixture is produced.
.
Converting unleaded petrol into higher octane unleaded petrol
2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mixing different kinds of unleaded petrol
3 (1) After paragraph 2 of that Schedule insert—
Mixing different kinds of unleaded petrol
2A (1) A mixture which is unleaded petrol is produced in contravention of this paragraph if the mixture is produced by mixing unleaded petrol of any two or more of the following descriptions—
(a) petrol on which duty has been paid at the rate specified in section 6(1A)(a),
(b) petrol in respect of which a rebate has been allowed under section 13A(1A)(b),
(c) petrol in respect of which a rebate has been allowed under section 13A(1A)(a),
where the mixture produced is petrol of a description subject to a higher effective rate of duty than one or more of the ingredients of the mixture.
(2) The comparison required by sub-paragraph (1) shall be made by reference to the effective rates of duty in force at the time the mixture is produced.
(3) This paragraph is subject to any direction given under paragraph 3.
.
(2) In paragraph 3 of that Schedule, for “paragraph 1 above or (as the case may be) paragraph 2 above" substitute “ paragraph 1, 2 or 2A above ”.
(3) In paragraph 8 of that Schedule, after sub-paragraph (3) insert—
(3A) In the case of a mixture produced in contravention of paragraph 2A above, the rate is—
(a) in the case of a mixture that is higher octane unleaded petrol, the rate produced by deducting from the rate in force under section 6(1A)(b) at the time the mixture is produced the rebate which at that time is in force under section 13A(1A)(a);
(b) in the case of a mixture that is neither higher octane unleaded petrol nor ultra low sulphur petrol, the rate produced by deducting from the rate in force under section 6(1A)(b) at the time the mixture is produced the rebate which at that time is in force under section 13A(1A)(b).
.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interpretation
4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 17.
Introduction
1 The Betting and Gaming Duties Act 1981 is amended as follows.
Exceptions from requirement to be licensed
2 In section 21(3A) (types of amusement machine excepted from requirement to be licensed) in paragraph (b) (five-penny machine which is a small-prize machine) for “five-penny machine" substitute “ ten-penny machine ”.
Amusement machine licence duty
3 (1) In section 22(2) (definition of small-prize machines)—
(a) after “Act" insert “ (a) ”;
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) at the end insert—
(b) an amusement machine is a medium-prize machine if it is a prize machine and the value or aggregate value of the benefits in money or money’s worth, which any player who is successful in a single game played by means of the machine may receive, can exceed £8 but cannot exceed £15.
.
(2) In section 22(3) (power of Commissioners to amend the sum mentioned in the definition of prize machines), for “the sum" substitute “ a sum ”.
Amount of duty
4 (1) In section 23(2) (amount of duty)—
(a) in paragraph (b) for “column 2, column 3 or column 4 of the Table" substitute “ Category A, Category B, Category C, Category D or Category E ”;
(b) for “the rate in column 2, the rate in column 3, or the rate in column 4" substitute “ the rate for the category of machine in question in column 2, 3, 4, 5 or 6 of the Table ”;
(c) for the Table substitute—
TABLE
(1) | (2) | (3) | (4) | (5) | (6)
Period (in months) for which licence granted | Category A | Category B | Category C | Category D | Category E
£ | £ | £ | £ | £
1 | 30 | 80 | 80 | 165 | 220
2 | 50 | 150 | 160 | 320 | 425
3 | 75 | 220 | 230 | 470 | 615
4 | 95 | 285 | 300 | 605 | 800
5 | 120 | 345 | 360 | 735 | 970
6 | 140 | 400 | 420 | 855 | 1,125
7 | 160 | 450 | 475 | 965 | 1,270
8 | 185 | 500 | 525 | 1,065 | 1,405
9 | 205 | 540 | 570 | 1,155 | 1,525
10 | 225 | 580 | 610 | 1,240 | 1,635
11 | 240 | 615 | 650 | 1,310 | 1,730
12 | 250 | 645 | 680 | 1,375 | 1,815
(2) At the end of section 23 insert—
(3) The machines comprised in each category referred to in this section are as follows—
Category A: any machine which is not a gaming machine;
Category B: any gaming machine which is a small-prize machine or five-penny machine;
Category C: any gaming machine which is a medium-prize machine, unless it is also a five-penny machine;
Category D: any gaming machine which is a ten-penny machine, unless it is also—
(a) a five-penny machine,
(b) a small-prize machine, or
(c) a medium-prize machine;
Category E: any machine which is not in any other category.
.
Meaning of amusement machine
5 (1) In section 25 (meaning of amusement machine), in paragraph (b) of subsection (1B) (meaning of video machine) omit “, other than one consisting only in a blank surface onto which light is projected”.
(2) In that section, in subsection (7) (application of provisions to a machine that falls to be treated as more than one machine) omit the word “or" at the end of paragraph (c) and after that paragraph insert—
(cc) medium-prize machines,
(cd) ten-penny machines, or
.
Supplementary provisions
6 In section 26(2) (definitions), after the definition of “five-penny machine" insert—
“ten-penny machine" means an amusement machine which can only be played by the insertion into the machine of coins of a denomination, or aggregate denomination, not exceeding 10p;
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Paragraphs 2 to 6: commencement
7 (1) Paragraphs 2 to 4, 5(2) and 6 shall have effect in relation to any amusement machine licence for which an application is received by the Commissioners of Customs and Excise after 4th August 2000.
(2) Paragraph 5(1) shall have effect on and after the day on which this Act is passed.
Seasonal licences: duration
8 (1) Amend paragraph 4 of Schedule 4 as follows.
(2) In sub-paragraph (2) (which provides for a seasonal licence to remain in force during October of the year for which it is granted) for the words from “during October of that year" to the end substitute
the provision of that number of relevant machines on the premises during the period in that year—
(a) beginning with 1st October; and
(b) ending with the Sunday before the first Monday in November.
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(3) In sub-paragraph (8) (meaning of “winter period”) for “November to February" substitute “ the period beginning with the first Monday in November and ending with the last day of February ”.
(4) Sub-paragraph (2) applies in relation to any licence expressed to be granted for a period beginning with 1st April in 2000 or any subsequent year.
(5) Sub-paragraph (3) has effect for determining what was comprised in the winter period beginning in 1999, and for determining what is comprised in any subsequent winter period.
Unlicensed amusement machines: duty chargeable
9 After section 24 insert—
Unlicensed machines: duty chargeable.
24A Schedule 4A to this Act (which provides for the recovery of amusement machine licence duty in relation to unlawfully unlicensed machines) shall have effect.
.
10 (1) After Schedule 4 insert—
Schedule 4A
Unlicensed amusement machines
Application
1 This Schedule applies where it appears to the Commissioners that an amusement machine is or was provided for play on premises in contravention of section 21(1) or 24(3) or (4) of this Act.
Default notice requesting production of licence
2 (1) The Commissioners may give a notice which complies with the requirements of sub-paragraphs (3) and (4) below.
(2) In this Schedule such a notice is referred to as a “default notice".
(3) The notice shall state that one or more amusement machines appear to have been provided for play on specified premises (“relevant premises”) during a specified period (the “alleged default period”)—
(a) the first day of which falls not more than three years before the date of the notice, and
(b) the last day of which falls on or before the date of the notice.
(4) The notice shall request the production to the Commissioners on or before a specified date (the “due date”) of every relevant amusement machine licence.
(5) For the purposes of sub-paragraph (4) above an amusement machine licence is a relevant licence if, at any time during the alleged default period, it was in force in relation to an amusement machine provided for play on the relevant premises at that time.
(6) A single default notice may relate to—
(a) different alleged default periods, or
(b) different relevant premises.
(7) A default notice shall be deemed to have been given if it is—
(a) left at, or posted to, the relevant premises, or
(b) given to, or posted to or left at the proper address of one or more persons falling within sub-paragraph (8) below.
(8) Those persons are—
(a) one or more of the persons who are or appear to be, or who at any time during the alleged default period were or appear to have been, responsible persons in relation to the relevant premises or an amusement machine provided for play on those premises, or
(b) any person who is the representative of such a person.
Failure to produce a licence: grant of default licence
3 (1) In any case where—
(a) the Commissioners give a default notice,
(b) the due date specified in the notice passes, and
(c) it appears to the Commissioners that at some time during the alleged default period specified in the notice one or more amusement machines were provided for play on the relevant premises so specified without an amusement machine licence being in force in relation to the machines,
the Commissioners may grant, in accordance with this paragraph, one or more licences in relation to each of the machines.
(2) In this Schedule—
“default licence” means a licence granted by the Commissioners under sub-paragraph (1) above;
“unlicensed machine” means a machine in relation to which a default licence is granted by the Commissioners.
(3) The Commissioners may grant a separate default licence for each period of consecutive days—
(a) which falls within the alleged default period, and
(b) for which no amusement machine licence in force in relation to the unlicensed machine was produced.
(4) The Commissioners may grant a default licence in relation to an unlicensed machine even though the period of that licence would include a day or days when the unlicensed machine was provided for play in contravention of section 21(1) or 24(3) or (4) of this Act on premises other than the relevant premises specified in the applicable default notice.
(5) In a case where the Commissioners grant a default licence in accordance with sub-paragraph (4) above, references in this Schedule to the relevant premises shall be construed in relation to any particular time as references to the premises on which the machine was provided for play at that time.
(6) The Commissioners may grant a default licence even though no application has been made for it.
(7) A default licence may be granted for a period of any length (whether or not a licence under Schedule 4 to this Act could be granted for a period of that length).
Assessment of amount equivalent to duty
4 (1) This paragraph applies where a default licence is granted in relation to an unlicensed machine.
(2) The Commissioners may, subject to the following provisions of this paragraph, assess to the best of their judgement the amount which would have been payable under this Act as amusement machine licence duty if the default licence had been an amusement machine licence granted under Schedule 4 to this Act.
(3) The Commissioners shall make the assessment using the rates of amusement machine licence duty which apply in relation to amusement machine licences granted in consequence of applications received by the Commissioners on the due date.
(4) If the period of the licence is 12 months or less, the assessment shall be made as if an amusement machine licence had been granted in relation to the unlicensed machine for that period.
(5) If the period of the licence is longer than 12 months, the assessment shall be made as if—
(a) a separate amusement machine licence had been granted in relation to the unlicensed machine for each complete period of 12 months falling wholly within the period of the licence, and
(b) a further amusement machine licence had been granted in relation to the unlicensed machine for any remaining part of the period of the licence.
(6) Sub-paragraphs (7) and (8) below shall apply in relation to an assessment to be made in any case where—
(a) the period of a licence mentioned in sub-paragraph (4) above, or
(b) the part of the period mentioned in sub-paragraph (5)(b) above,
is not a period of complete months.
(7) Any period of less than a month comprised in the period or the part of the period shall be treated as a complete month; and accordingly the period or the part of the period in question shall be treated as if it consisted of a complete month or, as the case may be, complete months.
(8) The amusement machine licence treated as granted for such a period, or for such a part of a period, shall be treated as having been—
(a) granted for that period, or that part of the period, as extended in accordance with sub-paragraph (7) above, and
(b) surrendered at the end of the last day of the period mentioned in sub-paragraph (4) above or, as the case may be, of the part of the period mentioned in sub-paragraph (5)(b) above.
Liability to pay
5 (1) Where an amount has been assessed under paragraph 4 above and notified to a responsible person or his representative, that amount—
(a) shall be deemed to be an amount of duty charged in accordance with section 22 of this Act on an amusement machine licence within the meaning of section 21 of this Act,
(b) shall be due from the responsible person, and
(c) may be recovered accordingly unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.
(2) The responsible persons to whom an assessment may be notified are any one or more of the persons who are or appear to be, or at any time during the period to which the assessment relates were or appear to have been, responsible persons in relation to the unlicensed machine or the relevant premises.
(3) An assessment shall be deemed to have been notified to a person if it is—
(a) given to him, or
(b) left at or posted to his proper address.
(4) But an assessment shall not be deemed to have been notified to a person unless and until—
(a) the default licence in relation to which the assessment has been made, or
(b) a copy of that licence,
has been given to him, or left at or posted to his proper address.
(5) Where an amount has been assessed and notified to more than one responsible person (or his representative), that amount shall be recoverable jointly and severally from any or all of the responsible persons.
(6) Arrangements made in accordance with paragraph 7A of Schedule 4 to this Act do not apply in relation to an amount assessed and notified in accordance with this paragraph.
Reviews and time limits on recovery
6 (1) Section 14 of the Finance Act 1994 (reviews of decisions) shall apply to so much of any decision by the Commissioners as is of any of the kinds mentioned in sub-paragraph (2) below, as it applies to the decisions mentioned in subsection (1) of that section.
(2) Those decisions are—
(a) any decision that a default licence should be granted,
(b) any decision contained in an assessment under paragraph 4 above that a person is liable to pay an amount of duty, and
(c) any decision contained in an assessment under paragraph 4 above as to the amount of a person’s liability.
(3) Sub-paragraph (4) below applies where the Commissioners—
(a) have given a default notice, and
(b) in consequence of so doing have granted a default licence.
(4) An assessment made under paragraph 4 above in relation to the default licence may not be notified to a responsible person (or his representative) at any time after the end of the period of one year beginning with the due date specified in the default notice.
(5) The reference to three years in paragraph 2(3)(a) above shall have effect as if it were a reference to twenty years in any case where sub-paragraph (6) or (7) below applies.
(6) This sub-paragraph applies where an amusement machine has been provided for play in circumstances where a person—
(a) has, by virtue of conduct engaged in for the purpose of evading any amount of amusement machine licence duty, become liable to a penalty under section 8 of the Finance Act 1994, or
(b) has been convicted of an offence under section 24(6) of this Act.
(7) This sub-paragraph applies where an amusement machine has been provided for play in circumstances where proceedings for an offence under section 24(6) of this Act would have been commenced or continued against a person (whether or not the person assessed), but for their having been compounded under section 152(a) of the Customs and Excise Management Act 1979.
General interpretation
7 (1) The following provisions of this paragraph apply for the purposes of this Schedule.
(2) A person is a responsible person in relation to an amusement machine at a particular time if, at that time, he is or was—
(a) the owner or hirer of the machine, or
(b) a party to any contract under which the machine may be, or may have been, or is or was required to be, on the relevant premises at that time.
(3) A person is a responsible person in relation to relevant premises at a particular time if, at that time, he is or was—
(a) the owner, lessee or occupier of the premises, or
(b) responsible to the owner, lessee or occupier for the management of the premises, or
(c) responsible for issuing or exchanging coins or tokens for use in playing any amusement machine on the premises, or otherwise for controlling the use of any such machine, or
(d) responsible for controlling the admission of persons to the premises or for providing persons resorting to the premises with any goods or services.
(4) A person’s representative is—
(a) his personal representative,
(b) his trustee in bankruptcy,
(c) any receiver or liquidator appointed in relation to him or any of his property, or
(d) any other person acting in a representative capacity in relation to him.
(5) The proper address of a person is—
(a) in the case of a body corporate, its registered office or principal office, and
(b) in any other case—
(i) his last known place of abode or business, or
(ii) any vessel or aircraft to which he may belong or have lately belonged.
(6) An item is only to be treated as posted to an address or place if it has been sent there by registered post or the recorded delivery service.
Saving for liability
8 The grant of a default licence in relation to an unlicensed machine shall be without prejudice to any liability arising under section 24 of this Act in relation to the machine.
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(2) This paragraph has effect in relation to amusement machines which appear to the Commissioners of Customs and Excise to have been provided for play on premises in contravention of section 21(1) or 24(3) or (4) of the Betting and Gaming Duties Act 1981 on or after the day falling three years before the day on which this Act is passed.