Finance Bill

Session 2012 - 13
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Other Bills before Parliament

Finance Bill

Finance Bill
Part 5 — Oil
105

Commencement etc
178
Commencement
The provisions of this Part (other than section 179) have effect in relation to
accounting periods of companies beginning on or after 1 January 2013.
179
Accounting periods straddling 1 January 2013
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(1)
If, apart from this section, a friendly society would have had an accounting
period beginning before 1 January 2013 and ending on or after that date, the
accounting period of the society is to end instead on 31 December 2012.
(2)
Accordingly, the rules in section 10 of CTA 2009 (end of accounting period) are
subject to this section.
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Part 4
Controlled foreign companies and foreign permanent establishments
180
Controlled foreign companies and foreign permanent establishments
Schedule 20 makes—
(a)
provision for and in connection with a charge on UK resident
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companies which have interests in non-UK resident companies
controlled by UK resident persons, and
(b)
provision about foreign permanent establishments of UK resident
companies.
Part 5
20
Oil
181
Transfers within a group by companies carrying on ring fence trade
(1)
Section 171A of TCGA 1992 (election to reallocate gain or loss to another
member of group) is amended as follows.
(2)
In subsection (4), at the end insert “(but see subsection (4A))”.
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(3)
After subsection (4) insert—
“(4A)
An election may not be made under this section to transfer the whole or
part of a ring fence chargeable gain from a company carrying on a ring
fence trade to a company not carrying on such a trade.
(4B)
In subsection (4A)—
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“ring fence chargeable gain”, in relation to a company, means—
(a)
a chargeable gain accruing to the company on a material
disposal within the meaning of section 197 (disposals of
interests in oil fields etc: ring fence provisions), or
(b)
a chargeable gain treated as accruing to the company by
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virtue of section 197(4);
“ring fence trade” has the same meaning as in Part 8 of CTA 2010
(see section 277 of that Act).”

Finance Bill
Part 6 — Excise duties
106

(4)
The amendments made by this section have effect in relation to chargeable
gains accruing, or treated by virtue of section 197(4) of TCGA 1992 as accruing,
in chargeable periods ending on or after 6 December 2011 (but see also
subsection (5)).
(5)
In relation to a chargeable period of a company beginning before 6 December
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2011 and ending on or after that date (“the straddling period”), the
amendments made by this section have effect as if, for the purposes of section
197 of TCGA 1992, so much of the straddling period as falls before 6 December
2011, and so much of that period as falls on or after that date, were separate
chargeable periods.
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182
Supplementary charge
(1)
In section 330 of CTA 2010 (supplementary charge in respect of ring fence
trades), in subsection (2), for “profits of the company’s ring fence trade”
substitute “company’s ring fence profits”.
(2)
This section is treated as having come into force on 6 December 2011.
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183
Relief in respect of decommissioning expenditure
Schedule 21 contains provision about the relief available in respect of
decommissioning expenditure.
184
Reduction of supplementary charge for certain oil fields
Schedule 22 contains provision extending the availability of field allowances
20
for oil fields.
Part 6
Excise duties
Tobacco products duty
185
Rates of tobacco products duty
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(1)
For the table in Schedule 1 to TPDA 1979 substitute—
“TABLE

1. Cigarettes
An amount equal to 16.5 per

cent of the retail price plus

£167.41 per thousand cigarettes

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2. Cigars
£208.83 per kilogram

3. Hand-rolling tobacco
£164.11 per kilogram

4. Other smoking tobacco and
£91.81 per kilogram”.

chewing tobacco

(2)
The amendment made by this section is treated as having come into force at 6
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pm on 21 March 2012.

Finance Bill
Part 6 — Excise duties
107

Alcoholic liquor duties
186
Rates of alcoholic liquor duties
(1)
ALDA 1979 is amended as follows.
(2)
In section 5 (rate of duty on spirits), for “£25.52” substitute “£26.81”.
(3)
In section 36(1AA) (rates of general beer duty)—
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(a)
in paragraph (za) (rate of duty on lower strength beer), for “£9.29”
substitute “£9.76”, and
(b)
in paragraph (a) (standard rate of duty on beer), for “£18.57” substitute
“£19.51”.
(4)
In section 37(4) (rate of high strength beer duty), for “£4.64” substitute “£4.88”.
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(5)
In section 62(1A) (rates of duty on cider)—
(a)
in paragraph (a) (rate of duty per hectolitre on sparkling cider of a
strength exceeding 5.5 per cent), for “£233.55” substitute “£245.32”,
(b)
in paragraph (b) (rate of duty per hectolitre on cider of a strength
exceeding 7.5 per cent which is not sparkling cider), for “£53.84”
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substitute “£56.55”, and
(c)
in paragraph (c) (rate of duty per hectolitre in any other case), for
“£35.87” substitute “£37.68”.
(6)
For the table in Schedule 1 substitute—
“Table of rates of duty on wine and made-wine
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Part 1
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 4 per
78.07

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cent

Wine or made-wine of a strength exceeding 4 per cent
107.36

but not exceeding 5.5 per cent

Wine or made-wine of a strength exceeding 5.5 per cent
253.39

but not exceeding 15 per cent and not being sparkling

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Sparkling wine or sparkling made-wine of a strength
245.32

exceeding 5.5 per cent but less than 8.5 per cent

Sparkling wine or sparkling made-wine of a strength of
324.56

8.5 per cent or of a strength exceeding 8.5 per cent but

not exceeding 15 per cent

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Wine or made-wine of a strength exceeding 15 per cent
337.82

but not exceeding 22 per cent

Finance Bill
Part 6 — Excise duties
108

Part 2
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

wine or made-

5

wine £

Wine or made-wine of a strength exceeding 22 per cent
26.81”.

(7)
The amendments made by this section are treated as having come into force on
26 March 2012.
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Repeal of drawback on British compounds and spirits of wine
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(1)
Section 22 of ALDA 1979 (drawback on British compounds and spirits of wine)
is repealed.
(2)
In consequence of the provision made by subsection (1), omit the following
provisions—
(a)
in Schedule 1 to the Isle of Man Act 1979, paragraph 29;
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(b)
in Schedule 8 to FA 1981, paragraph 16;
(c)
in Schedule 4 to FA 1994, paragraph 24;
(d)
in Schedule 5 to that Act, paragraph 3(1)(ha);
(e)
in Schedule 42 to FA 2008, paragraph 2(2).
Hydrocarbon oil etc duties
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188
Rebated fuel: private pleasure craft
(1)
In section 14E of HODA 1979 (rebated heavy oil and bioblend: private pleasure
craft), after subsection (7) insert—
“(7A)
A relevant declaration must include an acknowledgement that nothing
in this section or done under it (including the making of the
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declaration) affects any restriction or prohibition under the law of a
member State other than the United Kingdom on the use of the heavy
oil or bioblend as fuel for propelling craft outside United Kingdom
waters (as defined in section 1(1) of the Management Act).”
(2)
The amendment made by this section has effect in relation to supplies made on
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or after 1 April 2012.
Air passenger duty
189
Air passenger duty
Schedule 23 amends, and makes amendments connected with, Chapter 4 of
Part 1 of FA 1994 (air passenger duty).
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