Finance (No. 2) Bill (HC Bill 190)

(a) which is charged to HGV road user levy, and

(b) which satisfies the reduced pollution requirements for the purposes
of VERA 1994,

the amendments made by paragraphs 5 and 10 have effect in relation to
5licences taken out on or after 1 April 2014.

13 In the case of a rigid goods vehicle or tractive unit—

(a) which has a revenue weight of not less than 12,000 kgs, and

(b) which satisfies the reduced pollution requirements for the purposes
of VERA 1994,

10the amendments made by paragraphs 7 to 10 have effect in relation to
licences taken out on or after 1 April 2014.

Licences taken out on or after 1 April 2016

14 In the case of the vehicles described in paragraph 15 the amendments made
by paragraphs 4 to 10 have effect in relation to licences taken out on or after
151 April 2016.

15 Those vehicles are—

(a) a bus, light exceptional load vehicle or haulage vehicle which
satisfies the reduced pollution requirements for the purposes of
VERA 1994 because paragraph 4 of Schedule 2 to the Regulations
20applies to the vehicle as result of it falling within item 1 or 2 of Table
1 or any of items 1 to 3 of Table 2 in that paragraph (or being taken to
be a vehicle falling within item 1 of Table 1 or Table 2 as a result of
paragraph 5 of that Schedule), and

(b) a rigid goods vehicle or tractive unit—

(i) 25which has a revenue weight below 12,000 kgs, and

(ii) which satisfies the reduced pollution requirements for the
purposes of VERA 1994 because paragraph 4 of Schedule 2 to
the Regulations applies to the vehicle as result of it falling
within item 1 or 2 of Table 1 or any of items 1 to 3 of Table 2
30in that paragraph (or being taken to be a vehicle falling
within item 1 of Table 1 or Table 2 as a result of paragraph 5
of that Schedule).

Licences taken out on or after 1 January 2017

16 In the case of the vehicles described in paragraphs 17 and 18 the
35amendments made by paragraphs 4 to 10 have effect in relation to licences
taken out on or after 1 January 2017.

17 A bus, light exceptional load vehicle or haulage vehicle which satisfies the
reduced pollution requirements for the purposes of VERA 1994 because—

(a) paragraph 4 of Schedule 2 to the Regulations applies to the vehicle as
40result of it falling within item 3 or 4 of Table 1 or item 4 of Table 2 in
that paragraph,

(b) paragraph 4A of Schedule 2 to the Regulations applies to the vehicle
as result of it meeting the requirements of paragraph 4B of that
Schedule, or

(c) 45paragraph 4C of Schedule 2 to the Regulations applies to the vehicle
as result of it meeting the requirements of paragraph 4D of that
Schedule.

18 (1) A rigid goods vehicle or tractive unit—

(a) which has a revenue weight below 12,000 kgs, and

(b) which satisfies the reduced pollution requirements for the purposes
of VERA 1994 for any of the reasons in sub-paragraph (2).

(2) 5Those reasons are—

(a) paragraph 4 of Schedule 2 to the Regulations applies to the vehicle as
result of it falling within item 3 or 4 of Table 1 or item 4 of Table 2 in
that paragraph,

(b) paragraph 4A of Schedule 2 to the Regulations applies to the vehicle
10as result of it meeting the requirements of paragraph 4B of that
Schedule, or

(c) paragraph 4C of Schedule 2 to the Regulations applies to the vehicle
as result of it meeting the requirements of paragraph 4D of that
Schedule.

15I January 2017

19 The amendments made by paragraphs 2 and 3 come into force on 1 January
2017.

Interpretation

20 In this Schedule—

• 20“bus” has the same meaning as in paragraph 3(2) of Schedule 1 to VERA
  1994;

• “exceptional load vehicle” is a vehicle to which paragraph 6 of Schedule
  1 to VERA 1994 applies by reason of falling within sub-paragraph (1)
  of that paragraph;

• 25“haulage vehicle” has the same meaning as in paragraph 7(2) of
  Schedule 1 to VERA 1994;

• “light exceptional load vehicle” means an exceptional load vehicle
  which is not charged to HGV road user levy;

• “the Regulations” means the Road Vehicles (Registration and
  30Licensing) Regulations 2002 (S.I. 2002/2742);

• “rigid goods vehicle” and “tractive unit” have the same meaning as in
  VERA 1994.

Section 85

SCHEDULE 15 Other amendments about vehicle excise duty

35Part 1 Amendments of the Vehicle Excise and Registration Act 1994

1 VERA 1994 is amended as follows.

2 In section 7 (issue of vehicle licences), omit subsections (6) and (7).

3 (1) Section 7A (supplement payable on vehicle ceasing to be appropriately
40covered) is amended as follows.

(2) In subsection (1B)—

(a) omit “or in respect of”, and

(b) omit the words from “unless” to the end.

(3)
Omit subsection (1C).

4 5Omit section 10 (transfer of vehicle licences).

5 In section 14 (trade licences: supplementary)—

(a) in subsection (2), for the words from “surrender” to the end
substitute “request that the Secretary of State cancel the licence”, and

(b) omit subsection (4).

6 (1) 10Section 19 (rebates) is amended as follows.

(2) In subsection (1), for the words from the beginning to “receive” substitute “If
any of the rebate conditions is satisfied in relation to a vehicle in respect of
which a vehicle licence is in force, the relevant person is entitled to receive
(by way of rebate of duty paid on the licence)”.

(3) 15For subsection (3) substitute—

“(3) The rebate conditions are as follows—

(a) the vehicle has been stolen and the Secretary of State has been
notified of that by the relevant person,

(b) the vehicle has been destroyed and the Secretary of State has
20been notified of that by the relevant person,

(c) a nil licence for the vehicle has been issued in accordance
with regulations under section 22,

(d) a qualifying application for a vehicle licence for the vehicle
has been received by the Secretary of State,

(e) 25the vehicle is neither used nor kept on a public road and the
particulars and declaration required to be furnished and
made by regulations under section 22(1D) have been
furnished and made in relation to it in accordance with the
regulations,

(f) 30the vehicle has been sold or disposed of and the particulars
prescribed by regulations under section 22(1)(d) have been
furnished in relation to it in accordance with the regulations,
or

(g) the vehicle has been removed from the United Kingdom with
35a view to its remaining permanently outside the United
Kingdom and the Secretary of State has been notified of that
by the relevant person.”

(4) In subsection (3ZA), for “(3)(ca)” substitute “(3)(d)”.

(5) In subsection (3A), for “when the application is made” substitute “when the
40rebate condition is satisfied”.

(6) In subsection (3B), for paragraph (b) (and the “and” following it)
substitute—

“(b) the rebate condition in question is that in subsection (3)(e), (f)
or (g), and”.

(7) For subsection (4) substitute—

“(4) In subsections (1) and (3) “the relevant person” means the person in
whose name the vehicle is registered immediately before the rebate
condition is satisfied.”

(8) 5For subsections (5) and (6) substitute—

“(5) The Secretary of State may specify requirements which must be
complied with before a rebate condition can be satisfied.

(5A) The requirements that may be specified include (in particular)—

(a) a requirement that particulars which are required to be
10furnished to the Secretary of State are transmitted to the
Secretary of State by such electronic means as may be
specified, and

(b) in a case within subsection (3)(a), requirements relating to the
reporting to the police that the vehicle has been stolen.”

(9) 15For subsection (7) substitute—

“(7) Where any of the rebate conditions is satisfied in relation to a licence,
the licence ceases to be in force.”

(10) In subsection (8)—

(a) for “trade licence is surrendered to the Secretary of State” substitute
20“request is made”,

(b) for “holder of the licence” substitute “holder of the trade licence”,
and

(c) for “of the surrender” substitute “the request is received by the
Secretary of State”.

7 25In section 22 (registration regulations)—

(a) omit subsection (2A)(c), and

(b) omit subsection (4).

8 In section 29 (penalty for keeping unlicensed vehicle)—

(a) in subsection (4) omit the words from “unless” to the end, and

(b) 30omit subsection (5).

9 In section 31 (relevant period for purposes of section 30), in subsection (7)(a),
omit “surrender or”.

10 In section 31A (offence by registered keeper where vehicle unlicensed)—

(a) in subsection (4) omit the words from “unless” to the end, and

(b) 35omit subsection (5).

11 In section 31B (exceptions to section 31A), in subsection (9)(a)(i), omit
“surrender or”.

12 In section 31C (penalties for offences under section 31A), in subsection (7)(a)
omit “surrender or”.

13 40Omit section 33 (offence of not exhibiting licence).

14 Omit section 33A (not exhibiting licence: period of grace).

15 Omit section 35 (failure to return licence).

16 (1) Section 35A (dishonoured cheques) is amended as follows.

(2) In subsection (1)—

(a) in paragraph (a), for “contains a relevant requirement” substitute
“requires a person to pay the amount specified in subsection (4)
5within such reasonable period as is specified in the notice”, and

(b) in paragraph (b), for “contained in the notice” substitute “within that
period”.

(3) Omit subsection (3).

(4) In subsection (4), for “subsection (3)(b)” substitute “subsection (1)(a)”.

(5) 10For subsection (7) substitute—

“(7) In the case of a requirement in a notice relating to a vehicle licence,
those times are—

(a) the end of the month in which the notice under section
19A(2)(b) or 19B(2)(c) or the further notice under section
1519A(3)(d), 19B(3)(d) or 19B(5)(f) was sent,

(b) the date on which the licence was due to expire, and

(c) the end of the month preceding that in which there first had
effect a new vehicle licence for the vehicle in question;

and, in a case of a requirement in a notice relating to a trade licence,
20those times are the times specified in paragraphs (a) and (b).”

17 (1) Section 36 (dishonoured cheques: additional liability) is amended as follows.

(2) For subsection (4A) substitute—

“(4A) In the case of a vehicle licence, those times are—

(a) the end of the month in which the relevant notice was sent,

(b) 25the date on which the licence was due to expire, and

(c) the end of the month preceding that in which there first had
effect a new licence for the vehicle in question;

and, in the case of a trade licence, those times are the times specified
in paragraphs (a) and (b).

(4B) 30In subsection (4A)(a), the “relevant notice” is the notice under section
19A(2)(b) or 19B(2)(c) or the further notice under section 19A(3)(d),
19B(3)(d) or 19B(5)(f) which contained the requirement which was
not complied with, resulting in the conviction of an offence under
section 35A.”

(3) 35In subsection (6)(b), for “section 35A(3)(b)” substitute “section 35A(1)(a)”.

18 In section 44 (forgery and fraud), in subsection (2), omit paragraphs (a) to (c).

19 In section 58 (fees prescribed by regulations) omit “7(6)(b),”.

20 In section 62 (definitions), in the definition of “nil licence”, for the words
from “document” to “and is” substitute “licence”.

Part 2 Amendments of other enactments

21 In Schedule 3 to the Road Traffic Offenders Act 1988 (fixed penalty offences)
omit the entry relating to section 33 of VERA 1994.

5Part 3 Commencement

22 The amendments made by this Schedule come into force on 1 October 2014.

Section 93

SCHEDULE 16 Climate change levy: exemptions for mineralogical and metallurgical
10processes etc

Part 1 The exemptions

1 Schedule 6 to FA 2000 (climate change levy) is amended as follows.

2 After paragraph 12 insert—

15“Exemption: mineralogical and metallurgical processes

12A (1) A supply of a taxable commodity to a person is exempt from the
levy if the commodity is to be used by the person in a
mineralogical or metallurgical process.

(2) “Mineralogical process” has the same meaning as in Article 2(4)(b)
20of Council Directive 2003/96/EC of 27 October 2003 (which
relates to the taxation of energy products and electricity).

(3) “Metallurgical process” means a process of any of the following
descriptions.

(4) The descriptions are—

(a) 25a process falling within Division 24 of NACE Rev 2,
excluding Class 24.46;

(b) a process falling within Group 25.5 of NACE Rev 2;

(c) a process falling within Class 25.61 of NACE Rev 2 which
is—

(i) 30plating, anodising etc of metals;

(ii) heat treatment of metals;

(iii) deburring, sandblasting, tumbling and cleaning of
metals where carried out in conjunction with a
process mentioned in paragraph (a) or (b).

35In this sub-paragraph “NACE Rev 2” is as set out in Annex I to
Regulation (EC) No 1893/2006 of the European Parliament and of

the Council of 20 December 2006 (relating to the statistical
classification of economic activities).”

3 (1) Paragraph 42 (amount payable by way of levy) is amended as follows.

(2) In sub-paragraph (1)—

(a) in paragraph (a) omit “or a supply for use in scrap metal recycling”,

(b) 5omit paragraph (d), and

(c) in the Table, in the heading for column 2, omit “or a supply for use in
scrap metal recycling”.

(3) Omit sub-paragraph (1ZA).

4 Omit paragraph 43A (supplies for use in scrap metal recycling) and the
10cross-heading before it.

5 In paragraph 43B (supplies for use in scrap metal recycling etc: deemed
supply) in sub-paragraph (1)(b) omit sub-paragraph (i).

6 In paragraph 62 (tax credits) in sub-paragraph (1) omit paragraphs (ca) and
(cb).

7 15In paragraph 101 (civil penalties: incorrect certificates) in sub-paragraph
(2)(a)—

(a) in sub-paragraph (ii) after “12,” insert “12A,”,

(b) after sub-paragraph (ii) insert “or”, and

(c) omit sub-paragraph (iiia) and the “or” after it.

8 (1) 20The Climate Change Levy (General) Regulations 2001 (S.I. 2001/838) are
amended as follows.

(2) In regulation 2 (general interpretation) in paragraph (1) omit “, recycling
lower-rate part”, “a recycling lower-rate supply or” and the definition of
“recycling lower-rate supply”.

(3) 25In regulation 8 (records which a registrable person is obliged to keep) in
paragraph (c)(ii) omit “recycling lower-rate supply or a”.

(4) In regulation 11 (other tax credits: entitlement) in paragraph (1)—

(a) in sub-paragraph (c) omit “a recycling lower-rate supply or” (in both
places), and

(b) 30omit sub-paragraph (ca).

(5) In regulation 12 (tax credits: general) in paragraph (1) omit “, recycling
lower-rate supplies”.

(6) In regulation 33 (special rules for certain supplies)—

(a) in the heading omit “, recycling lower-rate supplies”, and

(b) 35in the text omit “, recycling lower-rate supplies”.

(7) In the title of Part 3 omit “, recycling lower-rate”.

(8) In regulation 34 (supplier certificates) in paragraph (1)(a) after “12
(transport),” insert “12A (mineralogical and metallurgical processes),”.

(9) In regulation 35 (supplier certificates)—

(a) 40in paragraph (1) omit “a recycling lower-rate or”,

(b) in paragraph (2)(a) omit paragraph (ii) and the “or” before it, and

(c) in paragraph (3) omit “or is for use in scrap metal recycling”.

(10) Schedule 1 (certification etc) is amended as follows.

(11) In the title omit “, recycling lower-rate”.

(12) In paragraph 2—

(a) 5in the formula omit “+0.8L”,

(b) in the definition of “M”, after paragraph (b) insert—

“(ba) paragraph 12A—mineralogical and metallurgical
processes;”, and

(c) omit the definition of “0.8L”.

(13) 10In paragraph 3(1) omit “recycling lower-rate and”.

(14) In paragraph 5(7) omit “Supplies for use in scrap metal recycling and”.

(15) In paragraph 6(1)—

(a) in paragraph (c) omit “a recycling lower-rate supply or” (in both
places), and

(b) 15omit paragraph (ca).

(16) The amendments made by sub-paragraphs (8) and (12)(b) are to be treated
as having been made by the Commissioners for Her Majesty’s Revenue and
Customs in exercise of the power conferred by paragraph 22 of Schedule 6
to FA 2000 (regulations giving effect to exemptions).

9 (1) 20Schedule 1 to the Climate Change Levy (Fuel Use and Recycling Processes)
Regulations 2005 (S.I. 2005/1715) is amended as follows.

(2) In paragraph 1 omit “Aluminium” and “Copper”.

(3) In paragraph 2 for the words from “Gold” to “platinum group metal alloys
and” substitute “The electrolytic dissolution of”.

(4) 25Omit paragraphs 18 to 24, 26, 27, 28, 32, 34, 36 and 37.

(5) The amendments made by this paragraph are to be treated as having been
made by the Treasury in exercise of the power conferred by paragraph 18(2)
of Schedule 6 to FA 2000 (exemption for supply not used as fuel).

10 (1) The amendments made by this Part are treated as having come into force on
301 April 2014 and have effect as follows.

(2) In relation to supplies of gas or electricity, they have effect in relation to gas
or electricity actually supplied on or after 1 April 2014.

(3) In relation to any other supplies, they have effect in relation to supplies
treated as taking place on or after 1 April 2014.

35Part 2 Other provision

11 Schedule 6 to FA 2000 (climate change levy) is amended as follows.

12 In paragraph 12A (as inserted by paragraph 2 above) after sub-paragraph (4)

insert—

“(5) The Treasury may by regulations amend this paragraph so as to
amend the definition of “mineralogical process”.

(6) The Treasury may by regulations amend sub-paragraph (4) so as
to add, remove or modify a description.”

13 5In paragraph 13A (power to make provision amending paragraph 13) in
sub-paragraph (3) omit “Parliament”.

14 (1) Paragraph 146 (regulations and orders) is amended as follows.

(2) In sub-paragraphs (2)(b) and (3) omit “Parliament”.

(3) After sub-paragraph (3) insert—

“(3A) 10A statutory instrument that contains (whether alone or with other
provision) regulations under paragraph 12A(5) that remove a
process (in whole or in part) from the scope of the definition of
“mineralogical process” shall not be made unless a draft of the
statutory instrument containing the regulations has been laid
15before and approved by a resolution of the House of Commons.

(3B) A statutory instrument that contains (whether alone or with other
provision) regulations under paragraph 12A(6) that—

(a) remove a description, or

(b) modify a description so as to narrow its scope,

20shall not be made unless a draft of the statutory instrument
containing the regulations has been laid before and approved by a
resolution of the House of Commons.”

Section 95

SCHEDULE 17 Goods shipped or carried as stores on ships or aircraft

25Meaning of “stores”

1 (1) Section 1 of CEMA 1979 (interpretation) is amended as follows.

(2) In subsection (4)(a)(i), for “relevant journey” substitute “journey made by
the ship or aircraft”.

(3) Omit subsection (4A).

30Surplus stores

2 In section 39 of CEMA 1979 (entry of surplus stores), for subsection (1)
substitute—

“(1) Surplus stores of any ship or aircraft—

(a) may remain on board the ship or aircraft without payment of
35duty; or

(b) may be entered for warehousing, notwithstanding that they
could not lawfully be imported as merchandise.

This is subject to subsection (2) below.”

Power to make regulations about stores

3 In CEMA 1979, after section 60 insert—

“60A Power to make regulations about stores

(1) The Commissioners may by regulations make provision in relation
5to goods for use on a ship or aircraft as stores.

(2) The provision that may be made by regulations under subsection (1)
includes—

(a) provision permitting, in specified circumstances, goods to be
shipped or carried as stores without payment of duty or on
10drawback;

(b) provision requiring authorisation to be obtained, in specified
circumstances, for goods to be shipped or carried as stores as
mentioned in paragraph (a) above;

(c) provision about obtaining such authorisation;

(d) 15provision enabling such authorisation to be withdrawn in
specified circumstances;

(e) provision for the supply, shipping or carriage of goods as
stores as mentioned in paragraph (a) above to be subject to
specified conditions or restrictions;

(f) 20provision as to any procedure to be followed in supplying
goods to be shipped or carried as stores as mentioned in
paragraph (a) above.

(3) Regulations made by virtue of subsection (2)(a) may include—

(a) provision requiring duty to be paid on goods shipped or
25carried as stores without payment of duty or on drawback
where those goods are—

(i) consumed on a journey of a specified description; or

(ii) consumed in specified circumstances in port;

(b) provision as to the persons by whom such duty is payable;

(c) 30provision about the way in which, and the time at which,
such duty is to be paid; and

(d) provision for goods, in specified circumstances, to be treated
as having been consumed on a journey or in port.

(4) The provision that may be made by regulations under this section
35includes—

(a) different provision for different cases; and

(b) incidental, supplemental, consequential or transitional
provision or savings.

(5) In this section “specified” means—

(a) 40specified in regulations made under this section; or

(b) specified by the Commissioners under such regulations.”

4 (1) Section 61 of CEMA 1979 (provisions as to stores) is amended as follows.

(2) Omit subsections (1) to (4).

(3) In subsection (5), for the words from “for use on a voyage” to “duty”
45substitute “without payment of duty”.