Finance Bill

Session 2013 - 14
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Finance Bill

Finance Bill
Part 4 — Excise duties and other taxes
112


Change of keeper

The period of 14 days beginning with the day on which a new licence
or nil licence is issued for the vehicle because of a change in the person
by whom the vehicle is being kept.

Renewal etc.
5

The period of 14 days following the time when a licence or nil licence
for or in respect of the vehicle, or a relevant declaration applying to the
vehicle, ceases to be in force, but only if an application for a licence or
nil licence for or in respect of the vehicle to run from that time has been
received before that time.
10

Replacement

The period beginning with the time when a licence or nil licence that is
in force for or in respect of the vehicle is delivered to the Secretary of
State with an application for a replacement licence, and ending with the
time when the replacement licence is obtained.
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(2)
For the purposes of this section—
(a)
there is a relevant declaration applying to a vehicle if the
particulars and declaration required to be furnished and made
by regulations under section 22(1D) have been furnished and
made in relation to the vehicle in accordance with the
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regulations, and
(b)
the relevant declaration ceases to be in force if, after the
particulars and declaration have been furnished and made the
vehicle is used or kept on a public road (otherwise than under a
trade licence).”
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(3)
In consequence of the provision made by subsections (1) and (2) omit—
(a)
section 147 of FA 2008, and
(b)
in regulation 6 of the Road Vehicles (Registration and Licensing)
Regulations 2002 (S.I. 2002/2742), paragraph (1) and, in paragraph (2),
the words “Except where paragraph (1) applies,”.
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187
Vehicles not kept or used on public road
(1)
VERA 1994 is amended as follows.
(2)
In section 7A (supplement payable on vehicle ceasing to be appropriately
covered), in subsection (1A)(d) omit “within the immediately preceding period
of 12 months”.
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(3)
In Schedule 2A (immobilisation, removal and disposal of vehicles), in
paragraph 1(10)(b) omit “within the immediately preceding period of 12
months”.
188
Vehicle licences for disabled people
Schedule 35 makes provision about vehicle licences for disabled people.
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Finance Bill
Part 4 — Excise duties and other taxes
113

Value added tax
189
Repayments of value added tax to health service bodies
(1)
In section 41 of VATA 1994 (application to the Crown), in subsection (7), after
“Board” insert “and a clinical commissioning group, the Health and Social Care
Information Centre, the National Health Service Commissioning Board and
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the National Institute for Health and Care Excellence”.
(2)
The amendment made by this section is treated as having come into force on 1
April 2013.
190
Valuation of certain supplies of fuel
Schedule 36 contains provision about the valuation of certain supplies of fuel
10
for the purposes of value added tax.
191
Reduced rate for energy-saving materials
(1)
Group 2 (installation of energy-saving materials) of Part 2 of Schedule 7A to
VATA 1994 (reduced rate supplies of goods and services) is amended as
follows.
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(2)
For items 1 and 2 substitute—
“1.
Supplies of services of installing energy-saving materials in
residential accommodation.
2.
Supplies of energy-saving materials by a person who installs those
materials in residential accommodation.”
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(3)
Omit Note 3 (meaning of “use for a relevant charitable purpose”).
(4)
The amendments made by this section have effect in relation to supplies made
on or after 1 August 2013.
Stamp duty land tax
192
Pre-completion transactions: existing cases
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(1)
Section 45 of FA 2003 (contract and conveyance: effect of transfer of rights) has
effect subject to the amendments in subsections (2) to (6) below in relation to
transfers of rights (see subsection (1) of that section) entered into on or after 21
March 2012 but before the day on which this Act is passed.
(2)
In subsection (3), in the second sentence, after “except” insert “in a case
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excluded by subsection (3A) or”.
(3)
After subsection (3) insert—
“(3A)
A case is excluded by this subsection from the second sentence of
subsection (3) if—
(a)
the secondary contract is substantially performed at the same
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time as, and in connection with, the substantial performance or
completion of the original contract but is not completed at that
time (“the relevant time”),

Finance Bill
Part 4 — Excise duties and other taxes
114

(b)
the original purchaser or a person connected with the original
purchaser is in possession of the whole, or substantially the
whole, of the subject-matter of the transfer of rights at any time
after the relevant time, and
(c)
having regard to all the circumstances, it would be reasonable
5
to conclude that the obtaining of a tax advantage for the original
purchaser was the main purpose, or one of the main purposes,
of the original purchaser in entering into the transfer of rights.
(3B)
In subsection (3A)—
“possession” has the same meaning as in section 44(5)(a);
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“tax advantage” means—
(a)
a relief from tax or increased relief from tax,
(b)
a repayment of tax or increased repayment of tax, or
(c)
the avoidance or reduction of a charge to tax.
(3C)
Nothing in subsection (3A) or (3B) affects the breadth of the application
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of sections 75A to 75C.”
(4)
In subsection (4), at the end insert “except in a case excluded by subsection
(4A)”.
(5)
After subsection (4) insert—
“(4A)
Subsection (3A) applies for the purposes of subsection (4) as if—
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(a)
the reference to subsection (3) were a reference to subsection (4),
(b)
a reference to the original contract were a reference to the
secondary contract arising from the earlier transfer of rights,
(c)
a reference to the original purchaser were a reference to the
transferee under the earlier transfer of rights, and
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(d)
a reference to the transfer of rights were a reference to the
subsequent transfer of rights.”
(6)
In subsection (5)(b)—
(a)
after “subsection (3) above” insert “or in subsection (3A) above”, and
(b)
after “subsection (4)” insert “or (4A)”.
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(7)
The following provisions of this section apply where—
(a)
section 45 of FA 2003 applies in relation to the contract for a land
transaction (“the original contract”),
(b)
as a result of subsections (1) to (6) above, the substantial performance
or completion of the original contract (or, in a case within subsection (5)
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of that section, its substantial performance or completion so far as
relating to part of the subject-matter of the original contract) is not
disregarded, and
(c)
the relevant time referred to in subsection (3A)(a) of that section fell
before the day on which this Act is passed.
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(8)
Section 76 of FA 2003 (duty to deliver land transaction return) is to be regarded
as requiring the purchaser under the original contract to deliver a land
transaction return relating to the land transaction not later than 30 September
2013.
(9)
Accordingly, 30 September 2013 is for the purposes of Part 4 of FA 2003 the
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filing date for the land transaction return relating to the transaction.

Finance Bill
Part 4 — Excise duties and other taxes
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(10)
If the purchaser under the original contract (“P”) has delivered a land
transaction return relating to the land transaction before the day on which this
Act is passed, P must not later than 30 September 2013 give notice under
paragraph 6 of Schedule 10 to FA 2003 amending the return, but this does not
prevent P from making subsequent amendments within the time allowed by
5
sub-paragraph (3) of that paragraph.
193
Pre-completion transactions
Schedule 37 contains provisions about certain transactions relating to a
contract that is to be completed by a conveyance.
194
Relief from higher rate
10
Schedule 38 contains provisions about relief from the higher rate of stamp duty
land tax.
195
Leases
Schedule 39 contains provision about stamp duty land tax in relation to leases.
Landfill tax
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196
Standard rate of landfill tax
(1)
Section 42 of FA 1996 (amount of landfill tax) is amended as follows.
(2)
In subsection (1)(a) (standard rate), for “£72” substitute “£80”.
(3)
In subsection (2) (reduced rate) for “£72” substitute “£80”.
(4)
The amendments made by this section have effect in relation to disposals made
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(or treated as made) on or after 1 April 2014.
Climate change levy
197
Climate change levy: main rates
(1)
In paragraph 42(1) of Schedule 6 to FA 2000 (climate change levy: amount
payable by way of levy) for the table substitute—
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Taxable commodity supplied
Rate at which levy payable if

supply is not a reduced-rate

supply or a supply for use in

scrap metal recycling

Electricity
£0.00541 per kilowatt hour

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Finance Bill
Part 4 — Excise duties and other taxes
116

Taxable commodity supplied
Rate at which levy payable if

supply is not a reduced-rate

supply or a supply for use in

scrap metal recycling

Gas supplied by a gas utility
£0.00188 per kilowatt hour

5

or any gas supplied in a

gaseous state that is of a kind

supplied by a gas utility

Any petroleum gas, or other
£0.01210 per kilogram

gaseous hydrocarbon,

10

supplied in a liquid state

Any other taxable
£0.01476 per kilogram”.

commodity

(2)
The amendment made by subsection (1) has effect in relation to supplies
treated as taking place on or after 1 April 2014.
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198
Climate change levy: supplies subject to carbon price support rates etc
Schedule 40 amends Schedule 6 to FA 2000 (climate change levy).
Insurance premium tax
199
Contracts that are not taxable
(1)
In Schedule 7A to FA 1994 (IPT: contracts that are not taxable), paragraph 3
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(contracts relating to motor vehicles for use by handicapped persons) is
amended as follows.
(2)
In sub-paragraph (2)(a)—
(a)
after “disability living allowance” insert “, or personal independence
payment,” and
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(b)
after “component” insert “, or of an armed forces independence
payment”.
(3)
In sub-paragraph (3), after “disability living allowance” insert “, personal
independence payment, armed forces independence payment”.
(4)
After sub-paragraph (4)(b) insert—
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“(ba)
“personal independence payment” means a personal
independence payment under Part 4 of the Welfare Reform
Act 2012 or the corresponding provision having effect in
Northern Ireland;
(bb)
“armed forces independence payment” means an armed
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forces independence payment under a scheme established
under section 1 of the Armed Forces (Pensions and
Contributions) Act 2004;”.
(5)
The amendments made by this section are treated as having come into force on
8 April 2013.
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