Finance Bill (HC Bill 1)

(b) for the table substitute—

“Table 1

Table 2

(7) In paragraph 11(3) (tractive units above 44,000 kgs which do not satisfy
15reduced 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) in paragraph (a), for “£650” substitute “£10”.

(9) Omit paragraph 11D (vehicles without road friendly suspension) and the italic
20heading before it.

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

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

(1) In Schedule 2 to VERA 1994 (exempt vehicles) in paragraph 1A(1) (exemption
25for 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) While a vehicle licence is in force in respect of a vehicle which is an exempt
vehicle by virtue of subsection (1)—

(a) 30nothing 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
as one in respect of which vehicle excise duty is chargeable.

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

(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

(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)”,

(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.

(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—

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

87 HGV road user levy: disclosure of information by HMRC

(1) After 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
55Commissioners for Revenue and Customs Act 2005 (confidentiality)

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,

5for the purpose of enabling or assisting the exercise of any of the
Secretary 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
10accordance with that subsection, or

(b) with 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
15person—

(a) is 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
20disclosure of such information in contravention of section 20(9) of that
Act.

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

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

Aggregates levy

88 30Aggregates levy: removal of certain exemptions

(1) FA 2001 is amended as follows.

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

(3) In subsection (3)—

(a) 35after paragraph (da) insert—

“(db) it 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) 40omit paragraphs (e) and (f).

(4) In subsection (4), omit—

(a) paragraphs (a) and (c), and

(b) in paragraph (f), “clay”.

(5) Section 18 (exempt processes) is amended as follows.

(6) In subsection (1)—

(a) in paragraph (a), for the words from “references” to “but” substitute
“references to—

(i) 5the spoil, waste, off-cuts and other by-products resulting from
the application of any exempt process to any aggregate, and

(ii) any relevant substance extracted or otherwise separated as a
result of the application of any exempt process within
subsection (2)(b) to any aggregate; but”, and

(b) 10in paragraph (b), for “such” substitute “exempt”.

(7) In subsection (2), after paragraph (c) insert—

“(d) the use of clay or shale in the production of ceramic
construction products;

(e) the use of gypsum or anhydrite in the production of plaster,
15plasterboard or related products.”

(8) Section 19 (commercial exploitation) is amended as follows.

(9) In subsection (1), after “aggregate” insert “not falling within subsection (1B)”.

(10) After that subsection insert—

“(1A) For the purposes of this Part a quantity of aggregate falling within
20subsection (1B) is subjected to exploitation if, and only if—

(a) it is removed from a site falling within subsection (2) in a case
where the person removing it intends that it should be used (by
any person) for construction purposes;

(b) it becomes subject to an agreement to supply it to a person who
25intends that it should be used (by any person) for construction
purposes;

(c) it is used for construction purposes; or

(d) it is mixed, otherwise than in permitted circumstances, with any
material other than water for the purpose of its use for
30construction purposes.

(1B) A quantity of aggregate falls within this subsection if—

(a) it consists wholly of a relevant substance listed in section 18(3)
which results from the application to any aggregate of an
exempt process within section 18(2)(b);

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

(i) any industrial combustion process, or

(ii) the smelting or refining of metal; or

(c) it consists wholly or mainly of clay, coal, lignite, slate or shale.”

(11) 40In section 22 (responsibility for exploitation of aggregate), in subsection (1) for
paragraphs (c) and (d) substitute—

“(c) in the case of the exploitation of a quantity of aggregate not
falling within section 19(1B) by its being subjected, at a time
when it is not on its originating site or a connected site, to any
45agreement, the person agreeing to supply it;

(ca) in the case of the exploitation of a quantity of aggregate falling
within section 19(1B) by its being subjected, at a time when it is

not on its originating site or a connected site, to any agreement,
the person agreeing to supply it and the person to whom it is
agreed to be supplied;

(cb) in the case of the exploitation of a quantity of aggregate by its
5being used, at a time when it is not on its originating site or a
connected site, for construction purposes, the person using it for
construction purposes;

(cc) in the case of the exploitation of a quantity of aggregate not
falling within section 19(1B) by its being subjected, at a time
10when it is on its originating site or a connected site, to any
agreement, the person mentioned in paragraph (c) and (if
different) the operator of that site;

(cd) in the case of the exploitation of a quantity of aggregate falling
within section 19(1B) by its being subjected, at a time when it is
15on its originating site or a connected site, to any agreement, the
persons mentioned in paragraph (ca) and (if different) the
operator of that site;

(ce) in the case of the exploitation of a quantity of aggregate by its
being used, at a time when it is on its originating site or a
20connected site, for construction purposes, the person
mentioned in paragraph (cb) and (if different) the operator of
that site;”.

(12) The amendments made by subsections (1) to (11) are treated as having come
into force on 1 April 2014.

89 25Aggregates levy: power to restore exemptions

(1) The Treasury may by order provide that Part 2 of FA 2001 (the aggregates levy)
is to have effect subject to such amendments as the Treasury consider
necessary to secure that any of the exemptions that are removed as a result of
the amendments made by section 88 is to any extent restored.

(2) 30An order under this section—

(a) may provide for the restoration of an exemption to have effect in
relation to commercial exploitation to which a quantity of aggregate is
subjected on or after a day which is earlier than the day on which the
order is made;

(b) 35may make such supplementary, incidental, consequential or
transitional provision as the Treasury think fit.

(3) An order under this section is to be made by statutory instrument.

(4) A statutory instrument containing an order under this section is subject to
annulment in pursuance of a resolution of the House of Commons.

40Climate change levy

90 Climate change levy: main rates for 2015-16

(1) In paragraph 42(1) of Schedule 6 to FA 2000 (climate change levy: amount