Finance Bill

Session 2012 - 13
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Finance Bill

Finance Bill
Schedule 23 — Air passenger duty
Part 3 — Devolution of Northern Ireland long haul rates of duty
534

(a)
if the passenger’s agreement for carriage provides for
standard class travel in relation to every flight on the
passenger’s journey, the rate is the rate set by an Act of the
Northern Ireland Assembly for the purposes of this
paragraph, and
5
(b)
in any other case, the rate is the rate set by an Act of the
Northern Ireland Assembly for the purposes of this
paragraph.
(5)
If the passenger’s journey ends at any other place—
(a)
if the passenger’s agreement for carriage provides for
10
standard class travel in relation to every flight on the
passenger’s journey, the rate is the rate set by an Act of the
Northern Ireland Assembly for the purposes of this
paragraph, and
(b)
in any other case, the rate is the rate set by an Act of the
15
Northern Ireland Assembly for the purposes of this
paragraph.
(6)
The rate of £0 may be set for the purposes of any paragraph.
(7)
The same rate may be set for the purposes of two or more
paragraphs.
20
(8)
Subsections (5) to (7) and (10) to (12) of section 30 apply for the
purposes of this section as they apply for the purposes of that section.
(9)
“The relevant day” means the day appointed as such by an order.
(10)
Section 42(4) and (5) does not apply to an order under subsection (9).
(11)
None of the following applies to any matter in respect of which this
25
section authorises provision to be made by an Act of the Northern
Ireland Assembly—
(a)
any paragraph of Schedule 2 or 3 to the Northern Ireland Act
1998 (excepted and reserved matters);
(b)
section 63 of that Act (financial acts of the Assembly).
30
(12)
A Bill containing provision authorised by this section may not be
passed by the Northern Ireland Assembly except in pursuance of a
recommendation which—
(a)
is made by the Minister of Finance and Personnel, and
(b)
is signified to the Assembly by the Minister or on the
35
Minister’s behalf.
(13)
A Bill containing provision authorised by this section may not be
passed by the Northern Ireland Assembly without cross-community
support (as defined in section 4(5) of the Northern Ireland Act 1998).
(14)
“Passed”, in relation to a Bill, means passed at the final stage (at
40
which the Bill can be passed or rejected but not amended).
(15)
Duty paid to the Commissioners in respect of the carriage of
chargeable passengers to which this section applies must be paid by
the Commissioners into the Consolidated Fund of Northern
Ireland.”
45
10    (1)
Section 33 (registration of aircraft operators) is amended as follows.

Finance Bill
Schedule 23 — Air passenger duty
Part 3 — Devolution of Northern Ireland long haul rates of duty
535

      (2)
After subsection (2) insert—
“(2A)
If the Commissioners decide to keep a register under section 33A
below, an operator of a chargeable aircraft does not become liable to
be registered under this section just because the aircraft is used for
the carriage of chargeable passengers to which section 30A above
5
applies.”
      (3)
In subsection (3)(b) after “passengers” insert “or, if the Commissioners have
decided to keep a register under section 33A below, that no chargeable
aircraft which he operates will be used for the carriage of chargeable
passengers apart from the carriage of chargeable passengers to which
10
section 30A above applies”.
      (4)
In subsection (4) after “registered” (in both places) insert “under this
section”.
      (5)
In subsection (7) after “section” insert “or section 33A below”.
11
After section 33 insert—
15
“33A
Registration of Northern Ireland long haul aircraft operators
(1)
The Commissioners may under this section keep a register of aircraft
operators.
(2)
If the Commissioners decide to keep a register under this section, the
operator of a chargeable aircraft becomes liable to be registered
20
under this section if the aircraft is used for the carriage of chargeable
passengers to which section 30A above applies.
(3)
A person who has become liable to be registered under this section
ceases to be so liable if the Commissioners are satisfied at any time—
(a)
that he no longer operates any chargeable aircraft, or
25
(b)
that no chargeable aircraft which he operates will be used for
the carriage of chargeable passengers to which section 30A
above applies.
(4)
A person who is not registered under this section and has not given
notice under this subsection shall, if he becomes liable to be
30
registered under this section at any time, give written notice of that
fact to the Commissioners not later than the end of the prescribed
period beginning with that time.
(5)
Notice under subsection (4) above shall be in such form, be given in
such manner and contain such information as the Commissioners
35
may direct.”
12
In section 34 (fiscal representatives) in subsection (5)—
(a)
omit “under section 33 above”, and
(b)
in paragraph (a) for “that section” substitute “section 33 or 33A
above”.
40
13
After section 41 insert—
“41A
Northern Ireland long haul rates of duty: disclosure of information
(1)
An officer of Revenue and Customs may disclose to the Secretary of
State, the Treasury or the Department of Finance and Personnel in

Finance Bill
Schedule 23 — Air passenger duty
Part 4 — Other provision
536

Northern Ireland any information for purposes connected with the
setting of rates of duty under section 30A above, including (in
particular) to enable the setting of rates under that section to be taken
into account for the purposes of section 58 of the Northern Ireland
Act 1998 (payments by Secretary of State into Consolidated Fund of
5
Northern Ireland).
(2)
Information disclosed under subsection (1) above may not be further
disclosed without the consent of the Commissioners (which may be
general or specific).
(3)
In section 19 of the Commissioners for Revenue and Customs Act
10
2005 (wrongful disclosure) references to section 18(1) of that Act are
to be read as including a reference to subsection (2) above.”
14
In section 44 of CRCA 2005 (payment into Consolidated Fund) after
subsection (2)(c) insert—
“(ca)
sums required by section 30A(15) of the Finance Act 1994 (air
15
passenger duty: Northern Ireland long haul rates of duty) to
be paid into the Consolidated Fund of Northern Ireland,”.
15
In column 2 of the Table in paragraph 1 of Schedule 41 to FA 2008 (penalties
for failure to notify), in the entry relating to air passenger duty, after “33(4)”
insert “or 33A(4)”.
20
Part 4
Other provision
16
Chapter 4 of Part 1 of FA 1994 (air passenger duty) is amended as follows.
17
In section 28 (introduction to air passenger duty) for subsection (3)
substitute—
25
“(3)
Sections 29 and 29A below set out how to determine if an aircraft is
a chargeable aircraft for the purposes of this Chapter.”
18    (1)
Section 29 (chargeable aircraft) is amended as follows.
      (2)
For subsection (1) substitute—
“(1)
For the purposes of this Chapter an aircraft is a chargeable aircraft
30
if—
(a)
it is a fixed-wing aircraft designed or adapted to carry
persons in addition to the flight crew,
(b)
its authorised take-off weight is not less than 5.7 tonnes, and
(c)
it is fuelled by kerosene (as defined in section 1(8) of the
35
Hydrocarbon Oil Duties Act 1979).”
      (3)
In subsection (2) for “ten” (wherever occurring) substitute “5.7”.
      (4)
Omit subsection (3).
19
After section 29 insert—
“29A
Chargeable aircraft: exceptions
40
(1)
This section applies for the purposes of this Chapter.

Finance Bill
Schedule 23 — Air passenger duty
Part 4 — Other provision
537

(2)
An aircraft is not a chargeable aircraft whenever its operation falls
within an exemption set out in sub-paragraph (b), (c), (f) or (g) under
the category of activity “Aviation” in Annex I to Directive 2003/87/
EC of the European Parliament and of the Council of 13 October 2003
(as amended by Directive 2008/101/EC of the European Parliament
5
and of the Council of 19 November 2008).
(3)
Those exemptions are to be read in accordance with paragraphs 2.2
to 2.5 of the Annex to Commission Decision 2009/450/EC of 8 June
2009.
(4)
An aircraft is not a chargeable aircraft whenever it is being operated
10
under a public service obligation imposed under Article 16 of
Regulation (EC) No 1008/2008 of the European Parliament and of
the Council of 24 September 2008 (common rules for the operation of
air services).”
20
In section 30 (rate of duty) before subsection (5) insert—
15
“(4E)
In relation to the carriage of a chargeable passenger on an aircraft to
which subsection (4F) applies—
(a)
if the rate which (apart from this subsection) would apply is
the rate in subsection (2)(a) or (b), a rate equal to twice the
rate in subsection (2)(b) is to apply instead,
20
(b)
if the rate which (apart from this subsection) would apply is
the rate in subsection (3)(a) or (b), a rate equal to twice the
rate in subsection (3)(b) is to apply instead,
(c)
if the rate which (apart from this subsection) would apply is
the rate in subsection (4)(a) or (b), a rate equal to twice the
25
rate in subsection (4)(b) is to apply instead, and
(d)
if the rate which (apart from this subsection) would apply is
the rate in subsection (4A)(a) or (b), a rate equal to twice the
rate in subsection (4A)(b) is to apply instead.
(4F)
This subsection applies to an aircraft if—
30
(a)
its authorised take-off weight is not less than 20 tonnes, but
(b)
it is not authorised to seat more than 18 persons (excluding
members of the flight crew and cabin attendants).
(4G)
In subsection (4F)(a) “take-off weight” is to be read in accordance
with section 29(2) but as if “20” were substituted for “5.7” wherever
35
occurring.
(4H)
For the purposes of subsection (4F)(b) an aircraft is authorised to seat
more than 18 persons (excluding members of the flight crew and
cabin attendants) if—
(a)
there is a certificate of airworthiness (as defined in section
40
29(4)) in force in respect of the aircraft showing that the
maximum number of persons who may be seated on the
aircraft (excluding members of the flight crew and cabin
attendants) is more than 18, or
(b)
the Commissioners are satisfied that the aircraft is designed
45
or adapted to seat more than 18 persons (excluding members
of the flight crew and cabin attendants) or the aircraft belongs
to a class or description of aircraft in respect of which the
Commissioners are so satisfied.”

Finance Bill
Schedule 24 — Machine games duty
Part 1 — Imposition of duty
538

21
In section 30A (as inserted by paragraph 9 above) after subsection (7)
insert—
“(7A)
In relation to the carriage of a chargeable passenger on an aircraft to
which section 30(4F) applies—
(a)
if the rate which (apart from this subsection) would apply is
5
the rate set for the purposes of subsection (3)(a) or (b), a rate
equal to twice the rate set for the purposes of subsection (3)(b)
is to apply instead,
(b)
if the rate which (apart from this subsection) would apply is
the rate set for the purposes of subsection (4)(a) or (b), a rate
10
equal to twice the rate set for the purposes of subsection (4)(b)
is to apply instead, and
(c)
if the rate which (apart from this subsection) would apply is
the rate set for the purposes of subsection (5)(a) or (b), a rate
equal to twice the rate set for the purposes of subsection (5)(b)
15
is to apply instead.”
22    (1)
Section 43 (interpretation) is amended as follows.
      (2)
In subsection (1) for the definition of “passenger” substitute—
““passenger”, in relation to any aircraft, means any person
carried on the aircraft other than—
20
(a)
a member of the flight crew,
(b)
a cabin attendant, or
(c)
a person who is not carried for reward and who
satisfies such other requirements as may be
prescribed.”
25
      (3)
After subsection (1) insert—
“(1A)
The agreements and arrangements covered by the definition of
“agreement for carriage” in subsection (1) include informal
agreements or arrangements between, for example, members of a
family or friends.”
30
23
The amendments made by this Part of this Schedule have effect in relation
to the carriage of passengers beginning on or after 1 April 2013.
Schedule 24
Section 190

Machine games duty
Part 1
35
Imposition of duty
The duty
1
A duty of excise, to be known as machine games duty, is to be charged on
the playing of dutiable machine games in the United Kingdom.

Finance Bill
Schedule 24 — Machine games duty
Part 1 — Imposition of duty
539

Dutiable machine games
2     (1)
A “machine game” is a game (whether of skill or chance or both) played on
a machine for a prize.
      (2)
A machine game is “dutiable” if—
(a)
the prize or at least one of the prizes that can be won from playing
5
the game on the machine is or includes cash, and
(b)
the maximum amount of cash that a player can win from playing the
game on the machine exceeds the lowest charge payable for playing
the game on the machine.
      (3)
“Cash” means money or anything that may reasonably be considered to
10
equate to money, including—
(a)
anything that can be used in the same way as if it were money, and
(b)
anything that allows a person to obtain money on demand or
otherwise represents a promise to pay a person money on demand.
      (4)
The things mentioned in sub-paragraph (3) include—
15
(a)
anything of an intangible nature (such as points), and
(b)
anything that a person has as a result of the taking of any step by
someone else (such as the crediting of an account).
      (5)
If an adult would reasonably assume that a machine game satisfies the tests
in sub-paragraph (2)(a) and (b) (taking into account the way in which the
20
game is presented and all the other circumstances of the case), the game is
taken to be a dutiable machine game, whether or not it does in fact satisfy
those tests.
      (6)
In identifying for the purposes of this paragraph the lowest charge payable
for playing a game, any offer that waives or permits a player to pay less than
25
the charge that the player would be required to pay without the offer is
disregarded.
      (7)
Paragraph 3 makes further provision about what counts as a dutiable
machine game for the purposes of this Schedule.
3     (1)
A game that would otherwise be a dutiable machine game does not count as
30
one if—
(a)
it involves betting on future real events,
(b)
bingo duty is charged on the playing of it,
(c)
lottery duty is charged on the taking of a ticket or chance in it, or
(d)
it is a real game of chance and playing it—
35
(i)
amounts to dutiable gaming for the purposes of section 10 of
FA 1997, or
(ii)
would do so but for subsection (3), (3B) or (4) of that section.
      (2)
A “real game of chance” is a game of chance (within the meaning of BGDA
1981) that is non-virtual.
40
      (3)
A game consisting of several stages counts as a dutiable machine game if—
(a)
at least one stage would (if played on its own) be a dutiable machine
game, or
(b)
the stages (taken together) amount to a dutiable machine game.

Finance Bill
Schedule 24 — Machine games duty
Part 1 — Imposition of duty
540

      (4)
If more than one game can be played on a given machine, each game is to be
considered separately in deciding whether it is a dutiable machine game.
4
The Treasury may by order specify criteria to be taken into account in
deciding—
(a)
whether a particular game (or class of game) falls within the
5
definitions in paragraph 2(1) and (2), and
(b)
what counts as a single go at playing a particular game (or class of
game).
Types of machine
5     (1)
Machines are divided into two types for the purposes of machine games
10
duty.
      (2)
A machine is a “type 2 machine” if it can be demonstrated that—
(a)
the highest charge payable for playing a dutiable machine game on
the machine does not exceed 10p, and
(b)
the maximum amount of cash that can be won from playing a
15
dutiable machine game on the machine does not exceed £8.
      (3)
Any other machine is a “type 1 machine”.
      (4)
The Treasury may by order substitute for a sum for the time being specified
in sub-paragraph (2)(a) or (b) such higher sum as may be specified in the
order.
20
How the duty is charged
6     (1)
Machine games duty is charged on a taxable person’s total net takings in an
accounting period for each type of machine.
      (2)
The amount of the duty is found by—
(a)
applying the standard rate to the person’s total net takings in the
25
accounting period for type 1 machines,
(b)
applying the lower rate to the person’s total net takings in the
accounting period for type 2 machines, and
(c)
aggregating the results.
      (3)
This is subject to paragraph 10 (negative amounts of duty).
30
      (4)
The person’s “total net takings” in the accounting period for a type of
machine are the sum of the person’s net takings in the period for all the
relevant machines of that type.
      (5)
The person’s “net takings” in the period for each relevant machine are
determined in accordance with paragraphs 7 and 8.
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      (6)
If any of the relevant machines changes type during the accounting period—
(a)
the net takings in the part of the period before the change and the net
takings in the part after the change are to be allocated separately in
calculating the person’s total net takings in the period for each type
of machine, and
40
(b)
if it is not possible to identify the part of a period to which an amount
relates, the amount is to be apportioned on a just and reasonable
basis.