(3) Subsections (4) to (6) apply where a company has an accounting period
beginning before 1 January 2015 and ending on or after that date (“the
straddling period”).

(4) For the purpose of calculating the amount of the supplementary charge on the
5company for the straddling period—

(a) so much of that period as falls before 1 January 2015, and so much of
that period as falls on or after that date, are treated as separate
accounting periods, and

(b) the company’s adjusted ring fence profits for the straddling period are
10apportioned to the two separate accounting periods in proportion to
the number of days in those periods.

(5) Sections 330A and 330B of CTA 2010 do not apply in relation to the straddling
period (but do apply in relation to the separate accounting period ending on 31
December 2014).

(6) 15The amount of the supplementary charge on the company for the straddling
period is the sum of the amounts of supplementary charge that would, in
accordance with subsections (4) and (5), be chargeable on the company for
those separate accounting periods.

(7) In this section—

• 20“adjusted ring fence profits” has the same meaning as in section 330 of
  CTA 2010;

• “supplementary charge” means any sum chargeable under section 330(1)
  of CTA 2010 as if it were an amount of corporation tax.

49 Supplementary charge: investment allowance

25Schedule 12 contains provision about the reduction of adjusted ring fence
profits by means of an investment allowance.

50 Supplementary charge: cluster area allowance

Schedule 13 contains provision about the reduction of adjusted ring fence
profits by means of a cluster area allowance.

51 30Amendments relating to investment allowance and cluster area allowance

Schedule 14 contains further amendments related to the amendments made by
Schedules 12 and 13.

Part 2 Excise duties and other taxes

35Petroleum revenue tax

52 Reduction in rate of petroleum revenue tax

(1) OTA 1975 is amended as follows.

(2) In section 1(2) (rate of petroleum revenue tax) for “50” substitute “35”.

(3) In paragraph 17(5)(b) of Schedule 2 (relevant percentage in relation to the
amount of loss which is treated as reducing assessable profit) after “60 per
cent” insert “if that later repayment period ends on or before 31 December
2015, and 45 per cent if it ends after 31 December 2015”.

(4) 5The amendment made by subsection (2) has effect with respect to chargeable
periods ending after 31 December 2015.

Alcohol

53 Rates of alcoholic liquor duties

(1) ALDA 1979 is amended as follows.

(2) 10In section 5 (rate of duty on spirits), for “£28.22” substitute “£27.66”.

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

(a) in paragraph (za) (rate of duty on lower strength beer), for “£8.62”
substitute “£8.10”, and

(b) in paragraph (a) (standard rate of duty on beer), for “£18.74” substitute
15“£18.37”.

(4) In section 37(4) (rate of high strength beer duty), for “£5.29” substitute “£5.48”.

(5) In section 62(1A) (rates of duty on cider)—

(a) in paragraph (b) (cider of strength exceeding 7.5% which is not
sparkling cider) for “£59.52” substitute “£58.75”, and

(b) 20in paragraph (c) (other cider), for “£39.66” substitute “£38.87”.

(6) For Part 2 of the table in Schedule 1 substitute—

“Part 2

Part 2 Wine or made-wine of a strength exceeding 22 per cent

(7) The amendments made by this section are treated as having come into force on
3023 March 2015.

54 Wholesaling of controlled liquor

(1) ALDA 1979 is amended as set out in subsections (2) to (5).

(2) In section 4 (interpretation)—

(a) in subsection (1), in the definition of “wholesale”, after ““wholesale””
35insert “(except in Part 6A)”,

(b) in the Table in subsection (3), at the appropriate place insert—

• ““excise duty point””, and

(c) in subsection (4), after “Act” insert “(except in Part 6A)”.

(3) After Part 6 insert—

5“ Part 6A Wholesaling of controlled liquor

88A Definitions

(1) This section defines certain expressions used in this Part.

(2) A sale is of “controlled liquor” if—

(a) 10it is a sale of dutiable alcoholic liquor on which duty is charged
under this Act at a rate greater than nil, and

(b) the excise duty point for the liquor falls at or before the time of
the sale.

(3) Controlled liquor is sold “wholesale” if—

(a) 15the sale is of any quantity of the liquor,

(b) the seller is carrying on a trade or business and the sale is made
in the course of that trade or business,

(c) the sale is to a buyer carrying on a trade or business, for sale or
supply in the course of that trade or business, and

(d) 20the sale is not an incidental sale, a group sale or an excluded
sale,

and a reference to buying controlled liquor wholesale is to be read
accordingly.

(4) A sale is an “incidental sale” if—

(a) 25the seller makes authorised retail sales of alcoholic liquor of any
description, and

(b) the sale is incidental to those sales.

(5) A sale is an “authorised retail sale” if it is made by retail under and in
accordance with a licence or other authorisation under an enactment
30regulating the sale and supply of alcohol.

(6) A sale is a “group sale” if the seller and the buyer are both bodies
corporate which are members of the same group (see section 88J).

(7) A sale is an “excluded sale” if it is of a description prescribed by or
under regulations made by the Commissioners.

(8) 35“Controlled activity” means—

(a) selling controlled liquor wholesale,

(b) offering or exposing controlled liquor for sale in circumstances
in which the sale (if made) would be a wholesale sale, or

(c) arranging in the course of a trade or business for controlled
40liquor to be sold wholesale, or offered or exposed for sale in
circumstances in which the sale (if made) would be a wholesale
sale.

(9) “UK person” means a person who is UK-established for the purposes of
value added tax (see paragraph 1(10) of Schedule 1 to the Value Added
Tax Act 1994).

(10) “Enactment” includes an enactment contained in—

(a) 5an Act of the Scottish Parliament;

(b) an Act or Measure of the National Assembly for Wales;

(c) Northern Ireland legislation.

88B Further provision relating to definitions

(1) The Commissioners may by regulations make provision as to the cases
10in which sales are, or are not, to be treated for the purposes of this Part
as—

(a) wholesale sales,

(b) sales of controlled liquor,

(c) incidental sales,

(d) 15authorised retail sales, or

(e) group sales.

(2) The Commissioners may by regulations make provision as to the cases
in which a person is, or is not, to be treated for the purposes of this Part
as carrying on a controlled activity by virtue of section 88A(8)(b) or (c)
20(offering and exposing for sale and arranging for sale etc).

88C Approval to carry on controlled activity

(1) A UK person may not carry on a controlled activity otherwise than in
accordance with an approval given by the Commissioners under this
section.

(2) 25The Commissioners may approve a person under this section to carry
on a controlled activity only if they are satisfied that the person is a fit
and proper person to carry on the activity.

(3) The Commissioners may approve a person under this section to carry
on a controlled activity for such periods and subject to such conditions
30or restrictions as they may think fit or as they may by or under
regulations made by them prescribe.

(4) The conditions or restrictions may include conditions or restrictions
requiring the controlled activity to be carried on only at or from
premises specified or approved by the Commissioners.

(5) 35The Commissioners may at any time for reasonable cause revoke or
vary the terms of an approval under this section.

(6) In this Part “approved person” means a person approved under this
section to carry on a controlled activity.

88D The register of approved persons

(1) 40The Commissioners must maintain a register of approved persons.

(2) The register is to contain such information relating to approved persons
as the Commissioners consider appropriate.

(3) The Commissioners may make publicly available such information
contained in the register as they consider necessary to enable those who

deal with a person who carries on a controlled activity to determine
whether the person in question is an approved person in relation to that
activity.

(4) The information may be made available by such means (including on
5the internet) as the Commissioners consider appropriate.

88E Regulations relating to approval, registration and controlled activities

(1) The Commissioners may by regulations make provision—

(a) regulating the approval and registration of persons under this
Part,

(b) 10regulating the variation or revocation of any such approval or
registration or of any condition or restriction to which such an
approval or registration is subject,

(c) about the register maintained under section 88D,

(d) regulating the carrying on of controlled activities, and

(e) 15imposing obligations on approved persons.

(2) The regulations may, in particular, make provision—

(a) requiring applications, and other communications with the
Commissioners, to be made electronically,

(b) as to the procedure for the approval and registration of bodies
20corporate which are members of the same group and for
members of such a group to be jointly and severally liable for
any penalties imposed under—

(i) the regulations, or

(ii) Schedule 2B,

(c) 25requiring approved persons to keep and make available for
inspection such records relating to controlled activities as may
be prescribed by or under the regulations,

(d) imposing a penalty of an amount prescribed by the regulations
(which must not exceed £1,000) for a contravention of—

(i) 30the regulations, or

(ii) any condition or restriction imposed under this Part,

(e) for the assessment and recovery of such a penalty, and

(f) for dutiable alcoholic liquor (whether or not charged with any
duty and whether or not that duty has been paid) to be subject
35to forfeiture for a contravention of—

(i) this Part or the regulations, or

(ii) any condition or restriction imposed under this Part.

88F Restriction on buying controlled liquor wholesale

A person may not buy controlled liquor wholesale from a UK person
40unless the UK person is an approved person in relation to the sale.

88G Offences

(1) A person who contravenes section 88C(1) by selling controlled liquor
wholesale is guilty of an offence if the person knows or has reasonable
grounds to suspect that—

(a) 45the buyer is carrying on a trade or business, and

(b) the liquor is for sale or supply in the course of that trade or
business.

(2)

A person who contravenes section 88C(1) by offering or exposing
controlled liquor for sale in circumstances in which the sale (if made)
would be a wholesale sale is guilty of an offence if the person intends
to make a wholesale sale of the liquor.

(3) 5A person who contravenes section 88C(1) by arranging in the course of
a trade or business for controlled liquor to be sold wholesale, or offered
or exposed for sale in circumstances in which the sale (if made) would
be a wholesale sale, is guilty of an offence if the person intends to
arrange for the liquor to be sold wholesale.

(4) 10A person who contravenes section 88F is guilty of an offence if the
person knows or has reasonable grounds to suspect that the UK person
from whom the controlled liquor is bought is not an approved person
in relation to the sale.

(5) A person guilty of an offence under this section is liable on summary
15conviction—

(a) in England and Wales to—

(i) imprisonment for a term not exceeding 12 months,

(ii) a fine, or

(iii) both,

(b) 20in Scotland to—

(i) imprisonment for a term not exceeding 12 months,

(ii) a fine not exceeding the statutory maximum, or

(iii) both, and

(c) in Northern Ireland to—

(i) 25imprisonment for a term not exceeding 6 months,

(ii) a fine not exceeding the statutory maximum, or

(iii) both.

(6) A person guilty of an offence under this section is liable on conviction
on indictment to—

(a) 30imprisonment for a period not exceeding 7 years,

(b) a fine, or

(c) both.

(7) The reference in subsection (5)(a)(i) to 12 months is to be read as a
reference to 6 months in relation to an offence committed before the
35commencement of section 154(1) of the Criminal Justice Act 2003.

88H Penalties

Schedule 2B contains provision about penalties for contraventions of
this Part.

88I Regulations

40Regulations under this Part—

(a) may make provision which applies generally or only for
specified cases or purposes,

(b) may make different provision for different cases or purposes,

(c) may include incidental, consequential, transitional or transitory
45provision, and

(d) may confer a discretion on the Commissioners.

88J Groups

(1) Two or more bodies corporate are members of a group for the purposes
of this Part if each is established or has a fixed establishment in the
United Kingdom and—

(a) 5one of them controls each of the others,

(b) one person (whether a body corporate or an individual)
controls all of them, or

(c) two or more individuals carrying on a business in partnership
control all of them.

(2) 10For the purposes of this section, a body corporate is to be taken to
control another body corporate if—

(a) it is empowered by or under an enactment to control that
body’s activities, or

(b) it is that body’s holding company within the meaning of section
151159 of, and Schedule 6 to, the Companies Act 2006.

(3) For the purposes of this section—

(a) an individual or individuals are to be taken to control a body
corporate if the individual or individuals (were the individual
or individuals a company) would be that body’s holding
20company within the meaning of section 1159 of, and Schedule 6
to, the Companies Act 2006, and

(b) a body corporate is established or has a fixed establishment in
the United Kingdom if it is so established or has such an
establishment for the purposes of value added tax.

88K 25Index

This Table lists the places where some of the expressions used in this
Part are defined or otherwise explained.

(4) In section 90 (procedure for regulations)—

(a) after subsection (1) insert—

“(1A) A statutory instrument containing regulations under Part 6A is
subject to annulment in pursuance of a resolution of the House
of Commons.”, and

(b) 5in subsection (2), after “containing” insert “any other”.

(5) After Schedule 2A insert—

Section 88H

“Schedule 2B Penalties for contraventions of Part 6A

Liability to penalty

1 A penalty is payable by a person (“P”) who contravenes section
1088C(1) or 88F.

Amount of penalty

2 (1) If the contravention is deliberate and concealed, the amount of the
penalty is the maximum amount (see paragraph 10).

(2) If the contravention is deliberate but not concealed, the amount of
15the penalty is 70% of the maximum amount.

(3) In any other case, the amount of the penalty is 30% of the maximum
amount.

(4) The contravention is—

(a) “deliberate and concealed” if the contravention is deliberate
20and P makes arrangements to conceal the contravention, and

(b) “deliberate but not concealed” if the contravention is
deliberate but P does not make arrangements to conceal the
contravention.

Reductions for disclosure

3 (1) 25Paragraph 4 provides for reductions in penalties under this Schedule
where P discloses a contravention.

(2) P discloses a contravention by—

(a) telling the Commissioners about it,

(b) giving the Commissioners reasonable help in identifying any
30other contraventions of section 88C(1) or 88F of which P is
aware, and

(c) allowing the Commissioners access to records for the
purpose of identifying such contraventions.

(3) Disclosure of a contravention—

(a) 35is “unprompted” if made at a time when P has no reason to
believe that the Commissioners have discovered or are about
to discover the contravention, and

(b) otherwise, is “prompted”.

(4) In relation to disclosure “quality” includes timing, nature and extent.

4 (1) Where P discloses a contravention, the Commissioners must reduce
the penalty to one that reflects the quality of the disclosure.

(2) If the disclosure is prompted, the penalty may not be reduced
below—

(a) 5in the case of a contravention that is deliberate and concealed,
50% of the maximum amount,

(b) in the case of a contravention that is deliberate but not
concealed, 35% of the maximum amount, and

(c) in any other case, 20% of the maximum amount.

(3) 10If the disclosure is unprompted, the penalty may not be reduced
below—

(a) in the case of a contravention that is deliberate and concealed,
30% of the maximum amount,

(b) in the case of a contravention that is deliberate but not
15concealed, 20% of the maximum amount, and

(c) in any other case, 10% of the maximum amount.

Special reduction

5 (1) If the Commissioners think it right because of special circumstances,
they may reduce a penalty under this Schedule.

(2) 20In sub-paragraph (1) “special circumstances” does not include ability
to pay.

(3) In sub-paragraph (1) the reference to reducing a penalty includes a
reference to—

(a) staying a penalty, and

(b) 25agreeing a compromise in relation to proceedings for a
penalty.

Assessment

6 (1) Where P becomes liable for a penalty under this Schedule, the
Commissioners must—

(a) 30assess the penalty,

(b) notify P, and

(c) state in the notice the contravention in respect of which the
penalty is assessed.

(2) A penalty under this Schedule must be paid before the end of the
35period of 30 days beginning with the day on which notification of the
penalty is issued.

(3) An assessment is to be treated as an amount of duty due from P
under this Act and may be recovered accordingly.

(4) An assessment of a penalty under this Schedule may not be made
40later than one year after evidence of facts sufficient in the opinion of
the Commissioners to indicate the contravention comes to their
knowledge.

(5) Two or more contraventions may be treated by the Commissioners
as a single contravention for the purposes of assessing a penalty
under this Schedule.

Reasonable excuse

7 (1) 5Liability to a penalty does not arise under this Schedule in respect of
a contravention which is not deliberate if P satisfies the
Commissioners or (on an appeal made to the appeal tribunal) the
tribunal that there is a reasonable excuse for the contravention.

(2) For the purposes of sub-paragraph (1), where P relies on any other
10person to do anything, that is not a reasonable excuse unless P took
reasonable care to avoid the contravention.

Companies: officer’s liability

8 (1) Where a penalty under this Schedule is payable by a company in
respect of a contravention which was attributable to an officer of the
15company, the officer is liable to pay such portion of the penalty
(which may be 100%) as the Commissioners may specify by written
notice to the officer.

(2) Sub-paragraph (1) does not allow the Commissioners to recover
more than 100% of a penalty.

(3) 20In the application of sub-paragraph (1) to a body corporate other
than a limited liability partnership, “officer” means—

(a) a director (including a shadow director within the meaning
of section 251 of the Companies Act 2006),

(b) a manager, and

(c) 25a secretary.

(4) In the application of sub-paragraph (1) to a limited liability
partnership, “officer” means a member.

(5) In the application of sub-paragraph (1) in any other case, “officer”
means—

(a) 30a director,

(b) a manager,

(c) a secretary, and

(d) any other person managing or purporting to manage any of
the company’s affairs.

(6) 35Where the Commissioners have specified a portion of a penalty in a
notice given to an officer under sub-paragraph (1)—

(a) paragraph 5 applies to the specified portion as to a penalty,

(b) the officer must pay the specified portion before the end of
the period of 30 days beginning with the day on which the
40notice is given,

(c) sub-paragraphs (3) to (5) of paragraph 6 apply as if the notice
were an assessment of a penalty, and

(d) paragraph 9 applies as if the officer were liable to a penalty.

(7) In this paragraph “company” means any body corporate or
45unincorporated association, but does not include a partnership.