Session 2012 - 13
Internet Publications
Other Bills before Parliament

Finance Bill


Finance Bill
Part 6 — Excise duties

109

 

Gambling duties

190     

Machine games duty

Schedule 24 contains provision replacing amusement machine licence duty

with a new excise duty and making related changes to VATA 1994.

191     

Amusement machine licence duty

5

(1)   

In section 23(2) of BGDA 1981 (amount of duty payable on amusement

machine licence), for the table substitute—

“Table

 

Months for

Category

Category

Category

Category

Category

Category

 
 

which licence

A

B1

B2

B3

B4

C

 

10

 

granted







 
  

£

£

£

£

£

£

 
 

           1

555

280

220

220

200

85

 
 

           2

1105

555

435

435

395

165

 
 

           3

1655

830

655

655

595

250

 

15

 

           4

2205

1105

870

870

790

330

 
 

           5

2755

1380

1085

1085

985

410

 
 

           6

3305

1655

1305

1305

1185

495

 
 

           7

3860

1930

1520

1520

1380

575

 
 

           8

4410

2205

1740

1740

1575

655

 

20

 

           9

4960

2485

1955

1955

1775

740

 
 

         10

5510

2760

2170

2170

1970

820

 
 

         11

6060

3035

2390

2390

2170

900

 
 

         12

6295

3150

2480

2480

2250

935”.

 

(2)   

The amendment made by this section has effect in relation to cases where the

25

application for the amusement machine licence is received by the

Commissioners for Her Majesty’s Revenue and Customs after 4 pm on 23

March 2012.

192     

Rates of gaming duty

(1)   

In section 11(2) of FA 1997 (rates of gaming duty), for the table substitute—

30


 
 

Finance Bill
Part 6 — Excise duties

110

 

“Table

 

Part of gross gaming yield

Rate

 
 

The first £2,175,000

15 per cent

 
 

The next £1,499,500

20 per cent

 
 

The next £2,626,000

30 per cent

 

5

 

The next £5,542,500

40 per cent

 
 

The remainder

50 per cent”.

 

(2)   

The amendment made by this section has effect in relation to accounting

periods beginning on or after 1 April 2012.

193     

Remote gambling: double taxation relief

10

Schedule 25 contains provision for double taxation relief in respect of remote

gambling.

Vehicle excise duty

194     

VED rates for light passenger vehicles, light goods vehicles, motorcycles etc

(1)   

Schedule 1 to VERA 1994 (annual rates of duty) is amended as follows.

15

(2)   

In paragraph 1 (general)—

(a)   

in sub-paragraph (2) (vehicle not covered elsewhere in Schedule

otherwise than with engine cylinder capacity not exceeding 1,549cc),

for “£215” substitute “£220”, and

(b)   

in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with

20

engine cylinder capacity not exceeding 1,549cc), for “£130” substitute

“£135”.

(3)   

In paragraph 1B (graduated rates of duty for light passenger vehicles)—

(a)   

for the tables substitute—

“Table 1

25

Rates payable on first vehicle licence for vehicle

 

CO2 emissions figure

Rate

 
 

(1)

(2)

(3)

(4)

 
 

   Exceeding

 Not exceeding

Reduced rate

Standard rate

 
 

g/km

g/km

£

£

 

30

 

         130

         140

         110

          120

 
 
 

Finance Bill
Part 6 — Excise duties

111

 
 

CO2 emissions figure

Rate

 
 

(1)

(2)

(3)

(4)

 
 

   Exceeding

 Not exceeding

Reduced rate

Standard rate

 
 

g/km

g/km

£

£

 
 

         140

         150

         125

          135

 

5

 

         150

         165

         160

          170

 
 

         165

         175

         265

          275

 
 

         175

         185

         315

          325

 
 

         185

         200

         450

          460

 
 

         200

         225

         590

          600

 

10

 

         225

         255

         805

          815

 
 

         255

           —

         1020

          1030

 
 

Table 2

Rates payable on any other vehicle licence for vehicle

 

CO2 emissions figure

Rate

 

15

 

(1)

(2)

(3)

(4)

 
 

   Exceeding

 Not exceeding

Reduced rate

Standard rate

 
 

g/km

g/km

£

£

 
 

         100

         110

          10

           20

 
 

         110

         120

          20

           30

 

20

 

         120

         130

          90

           100

 
 

         130

         140

         110

          120

 
 

         140

         150

         125

          135

 
 

         150

         165

         160

          170

 
 

         165

         175

         185

          195

 

25

 

         175

         185

         205

          215

 
 

         185

         200

         240

          250

 
 

         200

         225

         260

          270

 
 

         225

         255

         450

          460

 
 
 

Finance Bill
Part 7 — Value added tax

112

 
 

CO2 emissions figure

Rate

 
 

(1)

(2)

(3)

(4)

 
 

   Exceeding

 Not exceeding

Reduced rate

Standard rate

 
 

g/km

g/km

£

£

 
 

         255

           —

         465

          475”;

 

5

 

(b)   

in the sentence immediately following the tables, for paragraphs (a)

and (b) substitute—

“(a)   

in column (3), in the last two rows, “260” were

substituted for “450” and “465”, and

(b)   

in column (4), in the last two rows, “270” were

10

substituted for “460” and “475”.”

(4)   

In paragraph 1J (VED rates for light goods vehicles)—

(a)   

in paragraph (a), for “£210” substitute “£215”, and

(b)   

in paragraph (b), for “£130” substitute “£135”.

(5)   

In paragraph 2(1) (VED rates for motorcycles)—

15

(a)   

in paragraph (b), for “£35” substitute “£36”,

(b)   

in paragraph (c), for “£53” substitute “£55”, and

(c)   

in paragraph (d), for “£74” substitute “£76”.

(6)   

The amendments made by this section have effect in relation to licences taken

out on or after 1 April 2012.

20

Part 7

Value added tax

195     

Anti-forestalling charge to value added tax

Schedule 26 contains provision for an anti-forestalling charge to value added

tax related to changes in the descriptions of exempt or zero-rated supplies.

25

196     

Exempt supplies

(1)   

In Part 1 of Schedule 9 to VATA 1994 (index to exempt supplies of goods and

services), at the appropriate place in the table insert—

 

“Supplies of services by groups

Group 16”.

 
 

involving cost sharing

  

30

(2)   

In Part 2 of that Schedule (the groups), at the end insert—

“GROUP 16 — SUPPLIES OF SERVICES BY GROUPS INVOLVING COST

SHARING

           

Item No

 
 

Finance Bill
Part 7 — Value added tax

113

 

1          

The supply of services by an independent group of persons where

each of the following conditions is satisfied—

(a)   

each of those persons is a person who is carrying on an

activity (“the relevant activity”) which is exempt from VAT

or in relation to which the person is not a taxable person

5

within the meaning of Article 9 of Council Directive 2006/

112/EC,

(b)   

the supply of services is made for the purpose of rendering

the members of the group the services directly necessary for

the exercise of the relevant activity,

10

(c)   

the group merely claims from its members exact

reimbursement of their share of the joint expenses, and

(d)   

the exemption of the supply is not likely to cause distortion

of competition.”

(3)   

In section 31 of that Act (exempt supplies and acquisitions), after subsection (2)

15

insert—

“(3)   

The Treasury may by regulations make an exemption of a group 16

supply of a description specified in the regulations subject to

conditions.

(4)   

Regulations under subsection (3) may—

20

(a)   

make different provision for different cases, and

(b)   

make consequential or transitional provision (including

provision amending this Act).

(5)   

In subsection (3) “group 16 supply” means a supply falling within

Group 16 of Schedule 9.”

25

197     

Supply of goods or services by public bodies

(1)   

VATA 1994 is amended as follows.

(2)   

In section 41 (application to the Crown)—

(a)   

omit subsection (2), and

(b)   

in subsection (3)(b) for “a direction under subsection (2) above,”

30

substitute “section 41A,”.

(3)   

After that section insert—

“41A    

Supply of goods or services by public bodies

(1)   

This section applies where goods or services are supplied by a body

mentioned in Article 13(1) of the VAT Directive (status of public bodies

35

as taxable persons) in the course of activities or transactions in which it

is engaged as a public authority.

(2)   

If the supply is in respect of an activity listed in Annex I to the VAT

Directive (activities in respect of which public bodies are to be taxable

persons), it is to be treated for the purposes of this Act as a supply in the

40

course or furtherance of a business unless it is on such a small scale as

to be negligible.

(3)   

If the supply is not in respect of such an activity, it is to be treated for

the purposes of this Act as a supply in the course or furtherance of a

 
 

Finance Bill
Part 7 — Value added tax

114

 

business if (and only if) not charging VAT on the supply would lead to

a significant distortion of competition.

(4)   

In this section “the VAT Directive” means Council Directive 2006/112/

EC on the common system of value added tax.”

198     

Relief from VAT on low value goods: restriction relating to Channel Islands

5

(1)   

In Schedule 2 to the Value Added Tax (Imported Goods) Relief Order 1984 (S.I.

1984/746) (reliefs for goods of certain descriptions), Group 8 (articles sent for

miscellaneous purposes) is amended as follows.

(2)   

The existing Note becomes Note (1) (and accordingly “Note” in Group 8

becomes “Notes”).

10

(3)   

After that Note insert—

“(2)   

Item 8 does not apply in relation to any goods sent from the Channel

Islands under a distance selling arrangement.

(3)   

For the purposes of Note (2)—

“distance selling arrangement”, in relation to any goods, means

15

any transaction, or series of transactions, under which the

person to whom the goods are sent receives them from a

supplier without the simultaneous physical presence of the

person and the supplier at any time during the transaction or

series of transactions, and

20

“supplier” means any person who is acting in a commercial or

professional capacity.”

(4)   

The amendment of that Schedule by this section is without prejudice to any

power to amend that Schedule by subordinate legislation.

(5)   

The amendments made by this section have effect in relation to goods

25

imported on or after 1 April 2012.

199     

Group supplies using an overseas member

(1)   

VATA 1994 is amended as follows.

(2)   

In section 43 (groups of companies), in subsection (2C)(c), after “above” insert

“and paragraph 8A of Schedule 6”.

30

(3)   

In section 83 (appeals), in subsection (1)(v) for “or 2” substitute “, 2 or 8A”.

(4)   

In section 97(4) (orders requiring Parliamentary approval within 28 days of

being made), in paragraph (f), after “1A(7)” insert “or 8A(7)”.

(5)   

Schedule 6 (valuation: special cases) is amended as follows.

(6)   

In paragraph 1 (cases where Commissioners may direct value is open market

35

value), in sub-paragraph (5), after “paragraph”, in the second place it occurs,

insert “8A or”.

(7)   

After paragraph 8 insert—

“8A   (1)  

This paragraph applies where—

(a)   

a supply (“the intra-group supply”) made by a member of a

40

group (“the supplier”) to another member of the group is, by

 
 

Finance Bill
Part 7 — Value added tax

115

 

virtue of section 43(2A), excluded from the supplies

disregarded under section 43(1)(a), and

(b)   

the representative member of the group satisfies the

Commissioners as to the value of each bought-in supply.

      (2)  

“Bought-in supply”, in relation to the intra-group supply, means a

5

supply of services to the supplier to which section 43(2A)(c) to (e)

refers, so far as that supply is used by the supplier for making the

intra-group supply.

      (3)  

The value of the intra-group supply shall be taken to be the total of

the relevant amounts in relation to the bought-in supplies.

10

      (4)  

The relevant amount in relation to a bought-in supply is the value of

the bought-in supply, unless a direction is made under sub-

paragraph (5).

      (5)  

If the value of a bought-in supply is less than its open market value,

the Commissioners may direct that the relevant amount in relation to

15

that supply is its open market value.

      (6)  

A direction under this paragraph must be given by notice in writing

to the representative member, but no direction may be given more

than 3 years after the time of the intra-group supply.

      (7)  

The Treasury may by order vary the provision made by this

20

Schedule about the value of supplies of the kind mentioned in sub-

paragraph (1)(a).

      (8)  

An order under sub-paragraph (7) may include incidental,

supplemental, consequential or transitional provision (including

provision amending section 43 or 83).”

25

(8)   

The amendments made by this section have effect in relation to supplies made

on or after the day on which this Act is passed.

200     

Power to require notification of arrival of means of transport in UK

In Schedule 11 to VATA 1994 (administration, collection and enforcement), in

paragraph 2 (accounting for VAT and payment of VAT), after sub-paragraph

30

(5) insert—

   “(5A)  

Regulations under this paragraph may make provision—

(a)   

for requiring the relevant person to give to the

Commissioners such notification of the arrival in the United

Kingdom of goods consisting of a means of transport, at such

35

time and in such form and manner, as may be specified in the

regulations or by the Commissioners in accordance with the

regulations, and

(b)   

where notification of the arrival of a means of transport

acquired from another member State, or imported from a

40

place outside the member States, is required by virtue of

paragraph (a), for requiring any VAT on the acquisition or

importation to be paid at such time and in such manner as

may be specified in the regulations.

     (5B)  

The provision that may be made by regulations made by virtue of

45

sub-paragraph (5A) includes—

 
 

 
previous section contents continue
 

© Parliamentary copyright
Revised 9 May 2012