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Finance (No. 2) BillPage 60

(c) in subsection (7), the references to the trade are to be read as
references to the E&A activities.

(7) In this section—

25and a reference to a UK licence which relates to an undeveloped area
has the same meaning as in section 194 (see section 196).

198K Provisional application of section 198J

(1) This section applies where a company for a consideration disposes of,
or of an interest in, any assets at a time when it is an E&A company and
30declares, in the company’s return for the chargeable period in which
the disposal takes place—

(a) that the whole or any specified part of the consideration will be
applied, within the permitted reinvestment period—

(i) on E&A expenditure at a time when the company is an
35E&A company, or

(ii) on expenditure on oil assets which are taken into use,
and used only, for the purposes of the company’s ring
fence trade, and

(b) that the company intends to make a claim under section 198J(2)
40or (4) in relation to the disposal.

(2) Until the declaration ceases to have effect, section 198J applies as if the
expenditure had been incurred and the person had made such a claim.

(3) The declaration ceases to have effect as follows—

(a) if and to the extent that it is withdrawn before the relevant day,
45or is superseded before that day by a valid claim under section
198J, on the day on which it is so withdrawn or superseded, and

(b) if and to the extent that it is not so withdrawn or superseded, on
the relevant day.

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(4) On the declaration ceasing to have effect in whole or in part, all
necessary adjustments—

(a) are to be made by making or amending assessments or by
repayment or discharge of tax, and

(b) 5are to be so made despite any limitation on the time within
which assessments or amendments may be made.

(5) In this section “the relevant day” means the fourth anniversary of the
last day of the accounting period in which the disposal took place.

(6) For the purposes of this section—

(a) 10sections (6), (10) and (11) of section 152 apply as they apply for
the purposes of that section, except that in subsection (6) the
reference to a trade is to be read as a reference to E&A activities
or a ring fence trade, and

(b) terms used in this section which are defined in section 198J have
15the meaning given by that section.

198L Expenditure by member of same group

(1) Section 198J applies where—

(a) the disposal is by a company which, at the time of the disposal,
is a member of a group of companies (within the meaning of
20section 170),

(b) the E&A expenditure or expenditure on oil assets is by another
company which, at the time the expenditure is incurred, is a
member of the same group, and

(c) the claim under section 198J is made by both companies,

25as if both companies were the same person.

(2) “E&A company”, “E&A expenditure” and “oil assets” have the
meaning given by section 198J.

(2) The amendment made by this section has effect in relation to disposals made
on or after 1 April 2014.

67 30Substantial shareholder exemption: oil and gas

(1) In Schedule 7AC to TCGA 1992 (exemption for disposals by companies with
substantial shareholding), in paragraph 15A (effect of transfer of trading assets
within a group), after sub-paragraph (2) insert—

(2A) For the purposes of sub-paragraph (2)(b) and (d), “trade” includes oil
35and gas exploration and appraisal.

(2) The amendment made by this section has effect in relation to disposals made
on or after 1 April 2014.

Partnerships

68 Partnerships

40Schedule 13 makes provision in relation to partnerships.

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Transfer pricing

69 Transfer pricing: restriction on claims for compensation adjustments

(1) Chapter 4 of Part 4 of TIOPA 2010 (transfer pricing: position of disadvantaged
person) is amended as follows.

(2) 5In section 174 (claim by the affected person who is potentially advantaged), in
subsection (3), before the entry for section 175 insert—

(3) After that section insert—

174A 10 Claims under section 174 where disadvantaged person within charge
to income tax

A claim under section 174 may not be made if—

(a) the disadvantaged person is a person (other than a company)
within the charge to income tax in respect of profits arising from
15the relevant activities, and

(b) the advantaged person is a company.

(4) After section 187 insert—

Treatment of interest where claim prevented by section 174A
187A Excess interest treated as a qualifying distribution

(1) 20Subsection (2) applies if Conditions A to C in section 187 are met in
circumstances where section 174A prevents a claim under section 174.

(2) The interest paid under the actual provision, so far as it exceeds ALINT,
is treated for the purposes of the Income Tax Acts as a dividend paid by
the company which paid the interest (and, accordingly, as a qualifying
25distribution).

(5) The amendments made by this section have effect in relation to any amount
arising on or after 25 October 2013, except pre-commencement interest.

(6) “Pre-commencement interest” means an amount of interest to the extent that it
is, in accordance with generally accepted accounting practice, referable to a
30period before 25 October 2013.

Part 2 Excise duties and other taxes

Alcohol

70 Rates of alcoholic liquor duties

(1) 35ALDA 1979 is amended as follows.

(2) In section 36(1AA) (rates of general beer duty)—

(a) in paragraph (za) (rate of duty on lower strength beer), for “£9.17”
substitute “£8.62”, and

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(b) in paragraph (a), (standard rate of duty on beer), for “£19.12” substitute
“£18.74”.

(3) In section 37(4) (rate of high strength beer duty), for “£5.09” substitute “£5.29”.

(4) In section 62(1A) (rates of duty on cider), in paragraph (a) (rate of duty per
5hectolitre on sparkling cider of a strength exceeding 5.5%), for “£258.23”
substitute “£264.61”.

(5) For Part 1 of the table in Schedule 1 substitute—

Part 1
Part 1 Wine or made-wine of a strength not exceeding 22%
10Description of wine or made-wine Rates of duty
per hectolitre £
Wine or made-wine of a strength not exceeding 4% 84.21
15Wine or made-wine of a strength exceeding 4% but not
exceeding 5.5%
115.80
Wine or made-wine of a strength exceeding 5.5% but not
exceeding 15% and not being sparkling
20273.31
Sparkling wine or sparkling made-wine of a strength
exceeding 5.5% but less than 8.5%
264.61
Sparkling wine or sparkling made-wine of a strength of
25at least 8.5% but not exceeding 15%
350.07
Wine or made-wine of a strength exceeding 15% but not
exceeding 22%
364.37.

(6) 30The amendments made by this section are treated as having come into force on
24 March 2014.

Tobacco

71 Rates of tobacco products duty

(1) For the table in Schedule 1 to TPDA 1979 substitute—

TABLE
35
1. Cigarettes An amount equal to 16.5% of
the retail price plus £184.10 per
thousand cigarettes
402. Cigars £229.65 per kilogram
3. Hand-rolling tobacco £180.46 per kilogram
4. Other smoking tobacco and
45chewing tobacco
£100.96 per kilogram.

(2) The amendment made by this section is treated as having come into force at 6
pm on 19 March 2014.

Air passenger duty

72 50Air passenger duty: rates of duty from 1 April 2014

(1) Section 30 of FA 1994 (air passenger duty: rates of duty) is amended as follows.

(2) In subsection (3)—

(a) in paragraph (a), for “£67” substitute “£69”, and

(b) in paragraph (b), for “£134” substitute “£138”.

(3)
55In subsection (4)—

(a) in paragraph (a), for “£83” substitute “£85”, and

(b) in paragraph (b), for “£166” substitute “£170”.

(4)
In subsection (4A)—

(a) in paragraph (a), for “£94” substitute “£97”, and

(b) 60in paragraph (b), for “£188” substitute “£194”.

(5) The amendments made by this section have effect in relation to the carriage of
passengers beginning on or after 1 April 2014.

73 Air passenger duty: rates of duty from 1 April 2015

(1) Chapter 4 of Part 1 of FA 1994 (air passenger duty) is amended as follows.

(2) 65Section 30 (rates of duty), as amended by section 72 of this Act, is amended as
follows.

(3) Omit subsections (3) and (4).

(4) In subsection (4A)—

(a) in paragraph (a) for “£97” substitute “£71”, and

(b) 70in paragraph (b) for “£194” substitute “£142”.

(5) In subsection (4E)—

(a) in paragraph (a) for “twice the rate in subsection (2)(b)” substitute “six
times the rate in subsection (2)(a)”,

(b) after paragraph (a) insert “and”,

(c) 75omit paragraph (b),

(d) omit paragraph (c) and the “and” after it, and

(e) in paragraph (d) for “twice the rate in subsection (4A)(b)” substitute
“six times the rate in subsection (4A)(a)”.

(6) Section 30A (Northern Ireland long haul rates of duty) is amended as follows.

(7) 80Omit subsections (2) to (4).

(8) In subsection (5) for “If the passenger’s journey ends at any other place”
substitute “Air passenger duty is chargeable on the carriage of the chargeable
passenger at the rate determined as follows”.

(9) In subsection (5A)—

(a) 85omit paragraph (a),

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(b) omit paragraph (b) and the “and” after it, and

(c) in paragraph (c)—

(i) omit the words from the beginning to “(5)(a) or (b),”,

(ii) after “instead” insert “of the rate set for the purposes of
5subsection (5)(a) or (b)”, and

(iii) in sub-paragraph (ii) for “twice the rate set for the purposes of
subsection (5)(b)” substitute “six times the rate set for the
purposes of subsection (5)(a)”.

(10) In Schedule 5A (territories) omit Parts 2 and 3.

(11) 10The amendments made by this section have effect in relation to the carriage of
passengers beginning on or after 1 April 2015.

74 Air passenger duty: adjustments to Part 3 of Schedule 5A to FA 1994

(1) In Part 3 of Schedule 5A to FA 1994 (air passenger duty: territories)—

(a) omit “Ascension Island”, “Netherlands Antilles” and “Saint Helena”,
15and

(b) at the appropriate places insert—

“Bonaire”,

“Curaçao”,

“Saba”,

20“Saint Helena, Ascension and Tristan da Cunha”,

“Sint Eustatius”, and

“Sint Maarten”.

(2) The amendments made by this section have effect in relation to the carriage of
passengers beginning on or after the day on which this Act is passed.

25Vehicle excise duty

75 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.

(2) In paragraph 1 (general)—

(a) in sub-paragraph (2) (vehicle not covered elsewhere in Schedule
30otherwise than with engine cylinder capacity not exceeding 1,549cc),
for “£225” substitute “£230”, and

(b) in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with
engine cylinder capacity not exceeding 1,549cc), for “£140” substitute
“£145”.

(3) 35In paragraph 1B (graduated rates of duty for light passenger vehicles)—

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(a) for the tables substitute—

Table 1

Rates payable on first vehicle licence for vehicle
CO2 emissions figure Rate
(1) 5(2) (3) (4)
Exceeding Not exceeding 10Reduced rate Standard rate
g/km g/km

15£

£

130 140 20 120 130
140 150 135 25 145
150 165 170 180
30 165 175 280 290
175 35 185 335 345
185 200 40 475 485
200 225 625 45 635
225 255 850 860
50 255 1080 1090

Table 2

Rates payable on any other vehicle licence for vehicle

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CO2 emissions figure 55Rate
(1) (2) (3) (4)
60 Exceeding Not exceeding Reduced rate Standard rate
g/km 65g/km

£

£

70 100 110 10 20
110 75 120 20 30
120 130 80 100 110
130 140 120 85 130
140 150 135 145
90 150 165 170 180
165 175 195 205
5 175 185 215 225
185 10 200 255 265
200 225 15 275 285
225 255 475 20 485
255 490 500;

(b) 25in the sentence immediately following the tables, for paragraphs (a)
and (b) substitute—

(a) in column (3), in the last two rows, “275” were
substituted for “475” and “490”, and

(b) in column (4), in the last two rows, “285” were
30substituted for “485” and “500”.

(4) In paragraph 1J (VED rates for light goods vehicles), in paragraph (a), for
“£220” substitute “£225”.

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

(a) in paragraph (b), for “£37” substitute “£38”,

(b) 35in paragraph (c), for “£57” substitute “£58”, and

(c) in paragraph (d), for “£78” substitute “£80”.

(6) The amendments made by this section have effect in relation to licences taken
out on or after 1 April 2014.

76 VED rates: rigid goods vehicle with trailers

(1) 40For paragraph 10 of Schedule 1 to VERA 1994 (supplement to annual rate of
duty for rigid goods vehicle with trailer), substitute—

10 (1) This paragraph applies to relevant rigid goods vehicles.

(2) A “relevant rigid goods vehicle” is a rigid goods vehicle which—

(a) has a revenue weight exceeding 11,999 kgs,

(b) 45is not a vehicle falling within paragraph 9(2), and

(c) is used for drawing a trailer which has a plated gross weight
exceeding 4,000 kgs and when so drawn is used for the
conveyance of goods or burden.

(3) The annual rate of vehicle excise duty applicable to a relevant rigid
50goods vehicle is to be determined in accordance with the following
tables by reference to—

(a) whether or not the vehicle has road-friendly suspension,

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(b) the number of axles on the vehicle,

(c) the appropriate HGV road user levy band for the vehicle (see
column (1) in the tables),

(d) the plated gross weight of the trailer (see columns (2) and (3)
5in the tables), and

(e) the total of the revenue weight for the vehicle and the plated
gross weight of the trailer (the “total weight”) (see columns
(4) and (5) in the tables).

(4) For the purposes of this paragraph a vehicle does not have road-
10friendly suspension if any driving axle of the vehicle has neither —

(a) an air suspension (that is, a suspension system in which at
least 75% of the spring effect is caused by an air spring), nor

(b) a suspension which is regarded as being equivalent to an air
suspension for the purposes under Annex II of Council
15Directive 96/53/EC.

(5) The “appropriate HGV road user levy band” in relation to a vehicle
means the band into which the vehicle falls for the purposes of
calculating the rate of HGV road user levy that is charged in respect
of the vehicle (see Schedule 1 to the HGV Road User Levy Act 2013).

(6) 20The tables are arranged as follows—

(a) table 1 applies to relevant rigid goods vehicles with road-
friendly suspension on which there are 2 axles;

(b) table 2 applies to relevant rigid goods vehicles with road-
friendly suspension on which there are 3 axles;

(c) 25table 3 applies to relevant rigid goods vehicles with road-
friendly suspension on which there are 4 or more axles;

(d) table 4 applies to relevant rigid goods vehicles which do not
have road-friendly suspension and on which there are 2
axles;

(e) 30table 5 applies to relevant rigid goods vehicles which do not
have road-friendly suspension and on which there are 3
axles;

(f) table 6 applies to relevant rigid goods vehicles which do not
have road-friendly suspension and on which there are 4 or
35more axles.

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Table 1

Vehicles with road-friendly suspension and 2 axles
Appropri
ate HGV
road user
5levy band
Plated gross weight of
trailer
Total weight Rate
10(1) (2) (3) (4) (5) 15(6)
Exceeding
(kgs)
Not
20exceeding
(kgs)
Exceeding
(kgs)
Not
25exceeding
(kgs)
£
B(T) 4,000 3012,000 - 27,000 230
B(T) 3512,000 - - 33,000 295
40B(T) 12,000 - 33,000 36,000 45401
B(T) 12,000 - 36,000 5038,000 319
B(T) 12,000 - 5538,000 - 444
D(T) 4,000 6012,000 - 30,000 365
D(T) 6512,000 - - 38,000 430
70D(T) 12,000 - 38,000 - 75444

Table 2

Vehicles with road-friendly suspension and 3 axles

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Appropri
ate HGV
road user
80levy band
Plated gross weight of
trailer
Total weight Rate
85(1) (2) (3) (4) (5) 90(6)
Exceeding
(kgs)
Not
95exceeding
(kgs)
Exceeding
(kgs)
Not
100exceeding
(kgs)
£
B(T) 4,000 10512,000 - 33,000 230
B(T) 11012,000 - - 38,000 295
115B(T) 12,000 - 38,000 40,000 120392
B(T) 12,000 - 40,000 125- 295
C(T) 4,000 12,000 - 535,000 305
C(T) 12,000 - 10- 38,000 370
C(T) 12,000 15- 38,000 40,000 392
C(T) 2012,000 - 40,000 - 370
25D(T) 4,000 10,000 - 33,000 30365
D(T) 4,000 10,000 33,000 3536,000 401
D(T) 10,000 12,000 40- 38,000 365
D(T) 12,000 45- - - 430

Table 3

Vehicles with road-friendly suspension and 4 or more axles

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50Appropri
ate HGV
road user
levy band
Plated gross weight of
55trailer
Total weight Rate
(1) (2) 60(3) (4) (5) (6)
65Exceeding
(kgs)
Not
exceeding
(kgs)
70Exceeding
(kgs)
Not
exceeding
(kgs)
75£
B(T) 4,000 12,000 - 8035,000 230
B(T) 12,000 - 85- - 295
C(T) 4,000 9012,000 - 37,000 305
C(T) 9512,000 - - - 370
100D(T) 4,000 12,000 - 39,000 105365
D(T) 12,000 - - 110- 430
E(T) 4,000 12,000 115- - 535
E(T) 12,000 - - 5- 600

Table 4

Vehicles without road-friendly suspension with 2 axles
Appropri
ate HGV
10road user
levy band
Plated gross weight of
trailer
Total weight 15Rate
(1) (2) (3) (4) 20(5) (6)
Exceeding
(kgs)
25Not
exceeding
(kgs)
Exceeding
(kgs)
30Not
exceeding
(kgs)
£
B(T) 354,000 12,000 - 27,000 230
40B(T) 12,000 - - 31,000 45295
B(T) 12,000 - 31,000 5033,000 401
B(T) 12,000 - 5533,000 36,000 609
B(T) 12,000 60- 36,000 38,000 444
B(T) 6512,000 - 38,000 - 604
70D(T) 4,000 12,000 - 30,000 75365
D(T) 12,000 - - 8033,000 430
D(T) 12,000 - 8533,000 36,000 609
D(T) 12,000 90- 36,000 38,000 444
D(T) 9512,000 - 38,000 - 604

100Table 5

Vehicles without road-friendly suspension with 3 axles
Appropri
ate HGV
road user
levy band
105Plated gross weight of
trailer
Total weight Rate
(1) 110(2) (3) (4) (5) (6)
115 Exceeding
(kgs)
Not
exceeding
120(kgs)
Exceeding
(kgs)
Not
exceeding
125(kgs)
£
B(T) 4,000 10,000 130- 29,000 230
B(T) 4,000 13510,000 29,000 31,000 289
B(T) 14010,000 12,000 - 33,000 230
145B(T) 12,000 - - 36,000 150295
B(T) 12,000 - 36,000 15538,000 392
B(T) 12,000 - 16038,000 - 542
C(T) 4,000 16510,000 - 31,000 305
C(T) 1704,000 10,000 31,000 33,000 401
175C(T) 10,000 12,000 - 35,000 180305
C(T) 12,000 - - 18536,000 370
C(T) 12,000 - 19036,000 38,000 392
C(T) 12,000 195- 38,000 - 542
D(T) 2004,000 10,000 - 31,000 365
205D(T) 4,000 10,000 31,000 33,000 210401
D(T) 4,000 10,000 33,000 21535,000 609
D(T) 10,000 12,000 220- 36,000 365
D(T) 10,000 22512,000 36,000 37,000 392
D(T) 23012,000 - - 38,000 430
235D(T) 12,000 - 38,000 - 240542

Table 6

Vehicles without road-friendly suspension with 4 or more axles
Appropri
ate HGV
road user
245levy band
Plated gross weight of
trailer
Total weight Rate
250(1) (2) (3) (4) (5) 255(6)
Exceeding
(kgs)
Not
260exceeding
(kgs)
Exceeding
(kgs)
Not
265exceeding
(kgs)
£
B(T) 4,000 27012,000 - 35,000 230
B(T) 27512,000 - - - 295
280C(T) 4,000 12,000 - 37,000 285305
C(T) 12,000 - - 290- 370
D(T) 4,000 10,000 295- 36,000 365
D(T) 4,000 30010,000 36,000 37,000 444
D(T) 30510,000 12,000 - 39,000 365
310D(T) 12,000 - - - 315430
E(T) 4,000 10,000 - 32038,000 535
E(T) 4,000 10,000 32538,000 - 604
E(T) 10,000 33012,000 - - 535

(7) The annual rate of vehicle excise duty for a relevant rigid goods
335vehicle which does not fall within any of tables 1 to 6 is £609.

(2) In paragraph 2(2) of Schedule 1 to the HGV Road User Levy Act 2013, for
“within paragraph 10” substitute “which is a relevant rigid goods vehicle
within the meaning of paragraph 10”.

(3) The amendment made by subsection (1) has effect in relation to licences taken
340out on or after 1 April 2014.

(4) The amendment made by subsection (2) is treated as having come into force on
1 April 2014.

77 VED rates: use for exceptional loads, rigid goods vehicles and tractive units

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

(2) 345In paragraph 6(2A)(a) (vehicles used for exceptional loads which do not satisfy
reduced pollution requirements), for “£2,585” substitute “£1,585”.

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(3) In paragraph 9 (rigid goods vehicles which do not satisfy reduced pollution
requirements), for the table in sub-paragraph (1) substitute—

Revenue weight of vehicle Rate
5(1) (2) (3) (4) (5)
10Exceeding Not exceeding Two axle
vehicle
Three axle
15vehicle
Four or more
axle vehicle
kgs kgs 20£ £ £
3,500 7,500 25165 165 165
7,500 11,999 30200 200 200
11,999 14,000 3595 95 95
14,000 15,000 40105 95 95
15,000 19,000 45300 95 95
19,000 21,000 50300 125 95
21,000 23,000 55300 210 95
23,000 25,000 60300 300 210
25,000 27,000 65300 300 300
27,000 44,000 70300 300 560

(4) In paragraph 9(3) (rigid goods vehicles over 44,000 kgs which do not satisfy the
reduced pollution requirements), for “£2,585” substitute “£1,585”.

(5) 75For the italic heading immediately before paragraph 9 substitute “Rigid goods
vehicles exceeding 3,500 kgs revenue weight
”.

(6) In paragraph 11(1) (tractive units which do not satisfy reduced pollution
requirements)—

(a) for “table” substitute “tables”, and

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(b) for the table substitute—

Table 1

Tractive unit with two axles
Revenue weight of vehicle Rate
(1) 5(2) (3) (4) (5)
Exceeding 10Not exceeding Any no of semi-
trailer axles
2 or more semi-
trailer axles
153 or more semi-
trailer axles
kgs kgs £ 20£ £
3,500 11,999 165 25165 165
11,999 22,000 80 3080 80
22,000 23,000 84 3580 80
23,000 25,000 151 4080 80
25,000 26,000 265 45100 80
26,000 28,000 265 50146 80
28,000 31,000 300 55300 80
31,000 33,000 560 60560 210
33,000 34,000 560 65609 210
34,000 38,000 690 70690 560
38,000 44,000 850 75850 850

Table 2

Tractive unit with three or more axles

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Revenue weight of vehicle Rate
(1) 80(2) (3) (4) (5)
Exceeding 85Not exceeding Any no of semi-
trailer axles
2 or more semi-
trailer axles
903 or more semi-
trailer axles
kgs kgs £ 95£ £
3,500 11,999 165 100165 165
11,999 25,000 80 10580 80
25,000 26,000 100 11080 80
26,000 28,000 146 80 580
28,000 29,000 210 80 1080
29,000 31,000 289 80 1580
31,000 33,000 560 210 2080
33,000 34,000 609 300 2580
34,000 36,000 609 300 30210
36,000 38,000 690 560 35300
38,000 44,000 850 850 40560

(7) In paragraph 11(3) (tractive units above 44,000 kgs which do not satisfy
reduced pollution requirements), for “£2,585” substitute “£1,585”.

(8) In paragraph 11C(2) (tractive units: special cases)—

(a) omit “Subject to paragraph 11D,”, and

(b) 45in paragraph (a), for “£650” substitute “£10”.

(9) Omit paragraph 11D (vehicles without road friendly suspension) and the italic
heading before it.

(10) The amendments made by this section have effect in relation to licences taken
out on or after 1 April 2014.

78 50VED: extension of old vehicles exemption from 1 April 2014

(1) In Schedule 2 to VERA 1994 (exempt vehicles) in paragraph 1A(1) (exemption
for old vehicles) for “1973” substitute “1974”.

(2) The amendment made by subsection (1) is treated as having come into force on
1 April 2014.

(3) 55While a vehicle licence is in force in respect of a vehicle which is an exempt
vehicle by virtue of subsection (1)—

(a) nothing in that subsection has the effect that a nil licence is required to
be in force in respect of the vehicle, but

(b) for the purposes of section 33 of VERA 1994 the vehicle is to be treated
60as one in respect of which vehicle excise duty is chargeable.

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79 VED: extension of old vehicles exemption from 1 April 2015

(1) In Schedule 2 to VERA 1994 (exempt vehicles) in paragraph 1A(1) (exemption
for old vehicles) for “1974” (as substituted by section 78) substitute “1975”.

(2) The amendment made by subsection (1) comes into force on 1 April 2015; but
5nothing in that subsection has the effect that a nil licence is required to be in
force in respect of a vehicle while a vehicle licence is in force in respect of it.

80 Abolition of reduced VED rates for meeting reduced pollution requirements

Schedule 14 contains provision abolishing the reduced rates of vehicle excise
duty for vehicles satisfying reduced pollution requirements.

81 10Six month licence: tractive units

(1) In section 3 of VERA 1994 (duration of licences), for subsection (2) substitute—

(2) A vehicle licence may be taken out for a vehicle for a period of six
months running from the beginning of the month in which the licence
first has effect if—

(a) 15the annual rate of vehicle excise duty in respect of the vehicle
exceeds £50, or

(b) the vehicle is one to which the annual rate of vehicle excise duty
specified in paragraph 11C(2)(a) of Schedule 1 applies (tractive
units: special cases).

(2) 20The amendment made by this section has effect in relation to licences taken out
on or after 1 April 2014.

82 Vehicles subject to HGV road user levy: amount of 6 month licence

(1) Section 4 of VERA 1994 (amount of duty) is amended as follows.

(2) In subsection (2), for “Where” substitute “Subject to subsection (2A), where”.

(3) 25After subsection (2) insert—

(2A) In the case of a vehicle which is charged to HGV road user levy, the
reference in subsection (2) to fifty-five per cent is to be read as a
reference to fifty per cent.

(4) The amendments made by this section have effect in relation to licences taken
30out on or after 1 April 2014.

83 Payment of vehicle excise duty by direct debit

(1) VERA 1994 is amended as follows.

(2) In section 4 (amount of duty) for subsections (1) to (2A) substitute—

(1) Where a vehicle licence for a vehicle of any description is taken out for
35a period of 12 months, vehicle excise duty is to be paid on the licence—

(a) at the annual rate of duty applicable to vehicles of that
description, or

Finance (No. 2) BillPage 75

(b) if the duty is to be paid by more than one instalment pursuant
to an agreement under section 19B, at a rate equal to 105% of
that annual rate.

(2) Subject to subsection (2A), where a vehicle licence for a vehicle of any
5description is taken out for a period of 6 months, vehicle excise duty is
to be paid on the licence—

(a) at a rate equal to 55% of the annual rate of duty applicable to
vehicles of that description, or

(b) if the duty is to be paid by direct debit pursuant to an agreement
10under section 19B, at a rate equal to 52.5% of that annual rate.

(2A) In the case of a vehicle which is charged to HGV road user levy, the
reference in subsection (2)(a) to 55% is to be read as a reference to 50%.

(3) In section 13 (trade licences: duration and amount of duty)—

(a) in subsection (3), after “calendar year” insert “(“the applicable annual
15rate”)”,

(b) after subsection (3) insert—

(3A) Where a trade licence is taken out for a calendar year and the
duty is to be paid by more than one instalment pursuant to an
agreement under section 19B, the rate of duty is 105% of the
20applicable annual rate.,

(c) for subsection (4) substitute—

(4) The rate of duty applicable to a trade licence taken out for a
period of 6 months is—

(a) 55% of the applicable annual rate for a corresponding
25trade licence taken out for a calendar year, or

(b) if the duty is to be paid by direct debit pursuant to an
agreement under section 19B, 52.5% of that applicable
annual rate.,

(d) in subsection (5)(a), for “rate applicable to the” substitute “applicable
30annual rate for a”, and

(e) in subsection (6), for “subsection (4)” substitute “subsection (3A), (4)”.

(4) In section 13 (trade licences: duration and amount of duty) as set out in
paragraph 8(1) of Schedule 4 to VERA 1994 to have effect on and after a day
appointed by order—

(a) 35in subsection (4), after “twelve months” insert “(“the applicable annual
rate”)”,

(b) after subsection (4) insert—

(4A) Where a trade licence is taken out for a period of 12 months and
the duty is to be paid by more than one instalment pursuant to
40an agreement under section 19B, the rate of duty is 105% of the
applicable annual rate.,

(c) for subsection (5) substitute—

(5) The rate of duty applicable to a trade licence taken out for a
period of 6 months is—

(a) 4555% of the applicable annual rate for a corresponding
trade licence taken out for 12 months, or

Finance (No. 2) BillPage 76

(b) if the duty is to be paid by direct debit pursuant to an
agreement under section 19B, 52.5% of that applicable
annual rate., and

(d) in subsection (6), for “subsection (5)” substitute “subsection (4A) or (5)”.

(5) 5In section 19A (payment by cheque)—

(a) in subsection (2)(b) omit “by post”, and

(b) in subsection (3)(b) and (d) omit “by post”.

(6) In section 19B (issue of licences before payment of duty)—

(a) after subsection (1) insert—

(1A) 10An agreement to pay the duty payable on a vehicle licence or a
trade licence may provide—

(a) for the duty to be paid by instalments,

(b) that if any of the rebate conditions in section 19(3) is
satisfied in relation to the vehicle for which the licence
15was issued, the licence is to cease to be in force from the
time specified in the agreement and any instalments
falling due after that time are no longer to be due, and

(c) for any instalments falling due after a request under
section 14(2) is received by the Secretary of State no
20longer to be due.,

(b) in subsection (2)(c) omit “by post”,

(c) in subsection (3)(b) and (d) omit “by post”, and

(d) after subsection (3) insert—

(4) But subsections (2) and (3) do not apply in a case where the
25agreement under subsection (1) provides for the duty payable
to be paid by more than one instalment (and for this case see
subsection (5)).

(5) In a case where—

(a) a vehicle licence or a trade licence is issued to a person
30in accordance with subsection (1),

(b) the duty payable on the licence is not received by the
Secretary of State in accordance with the agreement,

(c) the agreement provides for the duty payable to be paid
by more than one instalment,

(d) 35the Secretary of State sends a notice to the person
requiring the person to secure that the duty payable on
the licence (both in respect of instalments which have
fallen due and in respect of future instalments) is paid
within the period specified in the notice,

(e) 40the requirement in the notice is not complied with, and

(f) the Secretary of State sends a further notice to the person
informing that person that the licence is void from the
time specified in the notice,

the licence is to be void from the time specified.

(7) 45In section 35A (dishonoured cheques)—

(a) in subsection (1)(a), for “or 19B(3)(d)” substitute “, 19B(3)(d) or
19B(5)(f)”,

Finance (No. 2) BillPage 77

(b) after subsection (7) insert—

(8) In a case where a notice is sent as mentioned in section 19B(5)(f)
the amounts specified in subsections (2)(b) and (4) are to be
calculated on the basis of the rate described in section 4(1)(b) or
513(3A) (whichever is relevant)., and

(c) in the heading, for “Dishonoured cheques” substitute “Failed
payments”.

(8) In section 36 (dishonoured cheques: additional liability)—

(a) after subsection (6) insert—

(7) 10In a case where a notice is sent as mentioned in section 19B(5)(f)
the amount specified in subsection (2) is to be calculated on the
basis of the rate described in section 4(1)(b) or 13(3A)
(whichever is relevant)., and

(b) in the heading, for “Dishonoured cheques” substitute “Failed
15payments”.

(9) In Schedule 4 (transitionals etc), after paragraph 8(3) insert—

(4) In cases in which the provisions set out in sub-paragraph (1) have
effect, sections 35A(8) and 36(7) are to be read as referring to section
13(4A) instead of section 13(3A).

(10) 20The amendments made by this section come into force on 1 October 2014.

84 Definition of “revenue weight”

(1) VERA 1994 is amended as follows.

(2) In section 60A (revenue weight), in subsection (9)(b)—

(a) for “at which” substitute “which must not be equalled or exceeded in
25order for”, and

(b) for “may lawfully” substitute “to lawfully”.

(3) In section 61 (vehicle weights)—

(a) in subsection (1)(b), after “not be” insert “equalled or”, and

(b) in subsection (2), after “not be” insert “equalled or”.

(4) 30The amendments made by this section have effect in relation to licences taken
out on or after 1 April 2014.

85 Vehicle excise and registration: other provisions

Schedule 15 contains other provisions relating to vehicle excise and
registration.

35HGV road user levy

86 HGV road user levy: rates tables

(1) Schedule 1 to the HGV Road User Levy Act 2013 (rates of HGV road user levy)
is amended as follows.

Finance (No. 2) BillPage 78

(2) In paragraph 4, for “is Band G” substitute “is—

(a) Band E(T), in the case of a rigid goods vehicle which is a
relevant rigid goods vehicle within the meaning of paragraph
10 of Schedule 1 to the 1994 Act (rigid goods vehicles used for
5drawing trailers of more than 4,000 kilograms), and

(b) Band G, in all other cases.

(3) For Tables 2 to 5 substitute—

Table 2: rigid goods vehicle
Revenue weight of vehicle 2 axle vehicle 103 axle vehicle 4 or more axle
vehicle
More than Not more than 15
kgs kgs 20Band Band Band
11,999 15,000 25B B B
15,000 21,000 30D B B
21,000 23,000 35D C B
23,000 25,000 40D D C
25,000 27,000 45D D D
27,000 44,000 50D D E
Table 3: rigid goods vehicle with trailer over 4,000 kgs
Revenue weight of vehicle 2 axle vehicle 553 axle vehicle 4 or more axle
vehicle
More than Not more than 60
kgs kgs 65Band Band Band
11,999 15,000 70B(T) B(T) B(T)
15,000 21,000 75D(T) B(T) B(T)
21,000 23,000 80E(T) C(T) B(T)
23,000 25,000 85E(T) D(T) C(T)
25,000 27,000 90E(T) D(T) D(T)
27,000 44,000 95E(T) E(T) E(T)
Table 4: tractive units with two axles
Revenue weight of tractive vehicle Any no of semi-
100trailer axles
2 or more semi-
trailer axles
3 or more semi-
trailer axles
105More than Not more than
110kgs kgs Band Band Band
11511,999 25,000 A A A
12025,000 28,000 C A A
12528,000 31,000 D D A
13031,000 34,000 E E C
13534,000 38,000 F F E
14038,000 44,000 G G G
Table 5: tractive unit with three or more axles
145Revenue weight of tractive vehicle Any no of semi-
trailer axles
2 or more semi-
trailer axles
1503 or more semi-
trailer axles
More than Not more than 155
kgs kgs Band 160Band Band
11,999 28,000 A 165A A
28,000 31,000 C 170A A
31,000 33,000 E 175C A
33,000 34,000 E 180D A
34,000 36,000 E 185D C
36,000 38,000 F 190E D
38,000 44,000 G 195G E

(4) The amendments made by this section are treated as having come into force on
1 April 2014.

87 HGV road user levy: disclosure of information by HMRC

(1) 200After section 14 of the HGV Road User Levy Act 2013 insert—

14A Disclosure of information by Revenue and Customs

(1) Information which is held as mentioned in section 18(1) of the
Commissioners for Revenue and Customs Act 2005 (confidentiality)

Finance (No. 2) BillPage 79

may be disclosed by or with the authority of the Commissioners for Her
Majesty’s Revenue and Customs to—

(a) the Secretary of State, or

(b) a person providing services to the Secretary of State,

for the purpose of enabling or assisting the exercise of any of the
5Secretary of State’s functions under or by virtue of this Act.

(2) Information disclosed in accordance with subsection (1) may not be
further disclosed except—

(a) to any other person to whom it could have been disclosed in
accordance with that subsection, or

(b) 10with the consent of the Commissioners for Her Majesty’s
Revenue and Customs (which may be general or specific).

(3) If, in contravention of subsection (2), any revenue and customs
information relating to a person is disclosed and the identity of the
person—

(a) 15is specified in the disclosure, or

(b) can be deduced from it,

section 19 of the Commissioners for Revenue and Customs Act 2005
(offence of wrongful disclosure) applies as it applies in relation to a
disclosure of such information in contravention of section 20(9) of that
20Act.

(4) In subsection (3) “revenue and customs information relating to a
person” has the meaning given by section 19(2) of the Commissioners
for Revenue and Customs Act 2005.

(5) Nothing in this section authorises the making of a disclosure which
25contravenes the Data Protection Act 1998.

(2) In regulation 2 of the HGV Road User Levy (HMRC Information Gateway)
Regulations 2013 (S.I. 2013/3186), omit paragraphs (1) and (2).

Aggregates levy

88 Aggregates levy: removal of certain exemptions

(1) 30FA 2001 is amended as follows.

(2) Section 17 (meaning of “aggregate” and “taxable aggregate”) is amended as
follows.

(3) In subsection (3)—

(a) after paragraph (da) insert—

(db) 35it consists wholly of the spoil or waste from, or other by-
products of—

(i) any industrial combustion process, or

(ii) the smelting or refining of metal;, and

(b) omit paragraphs (e) and (f).

(4) 40In subsection (4), omit—

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