Finance (No. 2) Bill (HC Bill 193)

Double jeopardy

9 P is not liable to a penalty under this Schedule in respect of a
contravention in respect of which P has been convicted of an offence.

The maximum amount

10 (1) 5In this Schedule “the maximum amount” means £10,000.

(2) If it appears to the Treasury that there has been a change in the value
of money since the last relevant date, they may by regulations
substitute for the sum for the time being specified in sub-paragraph
(1) such other sum as appears to them to be justified by the change.

(3) 10In sub-paragraph (2), “relevant date” means—

(a) the date on which the Finance Act 2015 is passed, and

(b) each date on which the power conferred by that sub-
paragraph has been exercised.

(4) Regulations under this paragraph do not apply to any contravention
15which occurred before the date on which they come into force.

Appeal tribunal

11 In this Schedule “appeal tribunal” has the same meaning as in
Chapter 2 of Part 1 of the Finance Act 1994.”

(6) In section 13A(2) of FA 1994 (meaning of “relevant decision”), after paragraph
20(e) insert—

“(ea) any decision by HMRC that a person is liable to a penalty, or as
to the amount of the person’s liability, under—

(i) regulations under section 88E of the Alcoholic Liquor
Duties Act 1979; or

(ii) 25Schedule 2B to that Act;”.

(7) In Schedule 5 to that Act (decisions subject to review and appeal), in paragraph
3(1), after paragraph (o) insert—

“(p) any decision for the purposes of Part 6A (wholesaling of
controlled liquor) as to whether or not, and in which respects,
30any person is to be, or to continue to be, approved and
registered or as to the conditions or restrictions subject to which
any person is approved and registered.”.

(8) Subject as follows, the amendments made by this section come into force on the
day on which this Act is passed.

(9) 35So far as relating to section 88C(1) of ALDA 1979, subsection (3) comes into
force on 1 January 2016 (but see subsection (12) for the application of section
88C(1) in cases where an application has been made but not disposed of by that
date).

(10) So far as relating to section 88F of ALDA 1979, subsection (3) comes into force
40on such day as the Treasury may by regulations made by statutory instrument
appoint.

(11) An application for a person to be approved under section 88C of ALDA 1979
may not be made before 1 October 2015.

(12) Where such an application made before 1 January 2016 has not been disposed
of by that date, section 88C(1) of ALDA 1979 does not apply in relation to the
person until the application is disposed of.

(13) An application is “disposed of” when—

(a) 5it is determined by Her Majesty’s Revenue and Customs,

(b) it is withdrawn, or

(c) it is abandoned or otherwise ceases to have effect.

Tobacco

55 Rates of tobacco products duty

(1) 10For the table in Schedule 1 to TPDA 1979 substitute—

(2) The amendment made by this section is treated as having come into force at 6
20pm on 18 March 2015.

56 Excise duty on tobacco: anti-forestalling restrictions

After section 6 of TPDA 1979 (alteration of rates of duty) insert—

“6A Anti-forestalling notices in connection with anticipated alteration of
rate of duty

(1) 25If the Commissioners consider that an alteration to a rate of duty
charged under section 2 on tobacco products may be made (whether
under section 6 or otherwise), they may publish a notice under this
section (an “anti-forestalling notice”).

(2) An anti-forestalling notice—

(a) 30must specify a period of up to 3 months (“the controlled
period”),

(b) may impose such restrictions (“anti-forestalling restrictions”) as
to the quantities of the tobacco products that may, during the
controlled period, be removed for home use, as the
35Commissioners consider to be reasonable for the purpose of
protecting the public revenue,

(c) may make provision for, and in connection with, the controlled
period coming to an end early (including provision modifying
an anti-forestalling restriction in such circumstances),

(d) may make provision for the removal of tobacco products for
home use to be disregarded for the purposes of one or more
anti-forestalling restrictions in certain circumstances, and

(e) may make different provision for different cases.

(3) 5The anti-forestalling restrictions that may be imposed include, in
particular—

(a) restrictions as to the total quantity of the tobacco products, or of
the tobacco products of a particular description, that may,
during the controlled period, be removed for home use, and

(b) 10restrictions as to the quantity of the tobacco products, or the
tobacco products of a particular description, that may be
removed for home use during any month, or any period of two
weeks, in the controlled period.

This is subject to subsections (4) and (5).

(4) 15An anti-forestalling notice may not restrict a person, during the
controlled period, to removing for home use a total quantity of the
tobacco products, or of the tobacco products of a particular description,
that is less than 80% of—

(5) An anti-forestalling notice may not restrict a person, in any month of
the controlled period, to removing for home use less than 30% of the
total quantity of the tobacco products, or of the tobacco products of a
30particular description, that could, under the anti-forestalling
restrictions imposed by the notice, be removed for home use during the
whole controlled period.

(6) If, before the end of the controlled period, it appears to the
Commissioners that the rate of duty—

(a) 35will not be altered during the controlled period, but

(b) may be altered within a month of the end of the controlled
period,

the Commissioners may publish an extension notice.

(7) An extension notice may—

(a) 40extend the controlled period by up to one month, and

(b) in accordance with subsections (2) to (5), make such other
modifications of the anti-forestalling notice as the
Commissioners think appropriate in consequence of the
extension.

(8) 45The Commissioners may vary or revoke an anti-forestalling notice—

(a) as it applies generally, or

(b) if the Commissioners consider that exceptional circumstances
justify doing so, in relation to a particular person.

(9) This section does not affect the Commissioners’ powers—

(a) under section 128 of the Customs and Excise Management Act
51979 (restriction of delivery of goods), or

(b) to make regulations under section 7 of this Act in relation to
periods specified under that section of that Act.

6B Anti-forestalling notices: sanctions

(1) This section applies if a person fails to comply with an anti-forestalling
10notice published under section 6A by, on one or more occasions,
removing tobacco products for home use during the controlled period
in contravention of an anti-forestalling restriction.

(2) The failure to comply attracts a penalty under section 9 of the Finance
Act 1994 (civil penalties) of an amount determined in accordance with
15subsection (3) (rather than that section).

(3) The person is liable to a penalty of—

(a) if the person has given an admission notice, 150% of the lost
duty, and

(b) otherwise, 200% of the lost duty.

(4) 20An “admission notice” is a notice—

(a) in which the person admits that the person—

(i) has failed to comply with the anti-forestalling notice,
and

(ii) is liable to a penalty determined in accordance with
25subsection (3), and

(b) that is in such form, and that provides such information, as the
Commissioners may specify.

(5) An admission notice cannot be given if, at any time in the period of 3
years ending with day before the controlled period, the person has
30given an admission notice in relation to a failure to comply with
another anti-forestalling notice.

(6) An admission notice cannot be given—

(a) at a time when the person has reason to believe that Her
Majesty’s Revenue and Customs have discovered, or are about
35to discover, that the person has failed to comply with the anti-
forestalling notice, or

(b) after the end of the controlled period.

(7) The “lost duty” is the amount (if any) by which the duty that would
have been charged under section 2 on the excess tobacco products if
40they had, immediately after the end of the controlled period, been
removed for home use exceeds the duty that was charged under that
section on those tobacco products.

(8) The “excess tobacco products” are the tobacco products mentioned in
subsection (1) that the person removed, for home use, in contravention
45of an anti-forestalling restriction.

(9) See section 6A for the meaning of “anti-forestalling notice”, “anti-
forestalling restriction” and “controlled period”.”

Air passenger duty

57 Air passenger duty: exemption for children in standard class

(1) 5In section 31 of FA 1994 (passengers: exceptions), after subsection (4) insert—

“(4ZA) A child who has not attained the age of 16 years is not a chargeable
passenger in relation to a flight if the child’s agreement for carriage—

(a) is evidenced by a ticket, and

(b) provides for standard class travel in relation to every flight on
10the child’s journey.

(4ZB) Subsections (10) to (12) of section 30 (meaning of “standard class
travel”) apply for the purposes of subsection (4ZA) as they apply for the
purposes of that section.”

(2) The amendment made by this section has effect in relation to any carriage of a
15passenger which begins on or after 1 May 2015.

But, in relation to any carriage of a passenger which begins before 1 March
2016, section 31(4ZA) of FA 1994 has effect as if for “16 years” there were
substituted “12 years”.

Vehicle excise duty

58 20VED rates for light passenger vehicles and motorcycles

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

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

(a) for the tables substitute—

“Table 1

Table 2

(b) in the sentence immediately following the tables, for paragraphs (a)

and (b) substitute—

“(a) in column (3), in the last two rows, “280” were
substituted for “480” and “495”, and

(b) in column (4), in the last two rows, “290” were
5substituted for “490” and “505”.”

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

(a) in paragraph (c), for “£58” substitute “£59”, and

(b) in paragraph (d), for “£80” substitute “£81”.

(4) The amendments made by this section have effect in relation to licences taken
10out on or after 1 April 2015.

59 VED: extension of old vehicles exemption from 1 April 2016

(1) In Schedule 2 to VERA 1994 (exempt vehicles) in paragraph 1A(1) (exemption
for old vehicles) for the words from “constructed” to the end substitute
“constructed before 1 January 1976”.

(2) 15The amendment made by subsection (1) comes into force on 1 April 2016; but
nothing 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.

Gaming duty

60 Rates of gaming duty

(1) 20In section 11(2) of FA 1997 (rates of gaming duty) for the table substitute—

(2) The amendment made by this section has effect in relation to accounting
30periods beginning on or after 1 April 2015.

Aggregates levy

61 Tax credit in Northern Ireland

(1) Part 2 of FA 2001 (aggregates levy) is amended in accordance with subsections
(2) to (6).

(2) After section 30A insert—

“30B Special tax credit in Northern Ireland

(1) The Commissioners may by regulations make provision of the kind
described in section 30(2) (entitlement to tax credit) in relation to cases
5within subsection (3) below.

(2) Tax credit to which a person is entitled under the regulations is referred
to in this section as “special tax credit”.

(3) The cases are where—

(a) a person has been charged with, and has fully accounted for,
10aggregates levy in respect of the commercial exploitation of a
quantity of aggregate, and

(b) the exploitation was of imported aggregate and occurred in
Northern Ireland in the period defined in subsection (5).

(4) For this purpose aggregate is “imported” if it was won from a site in a
15member State other than the United Kingdom.

(5) The period mentioned in subsection (3)(b)—

(a) begins with 1 April 2004, and

(b) ends with 30 November 2010.

(6) Regulations may in particular—

(a) 20provide that a person is not entitled to special tax credit unless
the Department of the Environment in Northern Ireland (“the
Department”) has certified under section 30D(4) that it is
satisfied that specified requirements were met in relation to the
site from which the aggregate originates during a period which
25includes the time when the aggregate was won from the site
(and the certification has not been revoked);

(b) specify further conditions for entitlement to special tax credit;

(c) make provision about the rate at which special tax credit is to be
given (including provision restricting the amount of special tax
30credit in cases where entitlement to a tax credit has already
arisen);

(d) provide for compound interest at the applicable rate (see section
30C) to be treated as added, for such period and for such
purposes as may be prescribed, to the amount of any special tax
35credit;

(e) authorise the Commissioners to adjust a person’s claim for
special tax credit in specified circumstances.

(7) Regulations under subsection (6)(a) may specify the requirements in
question by reference to any provisions of a notice published by the
40Department in pursuance of the regulations and not withdrawn by a
further notice.

(8) Subsection (3) of section 30 (except paragraph (f) of that subsection)
applies to regulations under this section as it applies to regulations
under that section.

(9) 45Section 32(1) (time limit for claims) does not apply to a claim for
repayment of aggregates levy made under regulations under this
section.

30C Special tax credit: applicable rate of interest

(1) The reference in section 30B(6)(d) to the applicable rate is to a rate
provided for in regulations made by the Treasury.

(2) Regulations under this section may—

(a) 5provide for the rate to be determined, and to change from time
to time, by reference to a rate referred to in the regulations,

(b) include provision for different rates to apply at different times
in a period for which interest is due to a person.

(3) Regulations under this section are to be made by statutory instrument.

(4) 10A statutory instrument containing regulations under this section is
subject to annulment in pursuance of a resolution of the House of
Commons.

30D Special tax credit: certification by Department

(1) A person may, for the purpose of making a claim for special tax credit,
15apply to the Department for a certification under subsection (4)(a).

(2) The application must specify—

(a) a site, and

(b) a time (“the relevant time”).

(3) Where a certification relating to a site has been wholly or partly
20revoked by virtue of subsection (7)(b), an application specifying that
site may not specify a time falling within the period with respect to
which the revocation has effect.

(4) Where an application is made and the Department has not previously
made a certification under paragraph (a) relating to both the specified
25site and a period that includes the relevant time, the Department must
either—

(a) certify that it is satisfied that any requirements specified by
virtue of section 30B(6)(a) were met in relation to the site during
a period (specified in the certification) that includes the relevant
30time, or

(b) refuse the application.

(5) If the Department makes a certification under subsection (4)(a) (a
“special tax credit certification”) it must give a written notice of the
certification to—

(a) 35the applicant, and

(b) HMRC.

(6) Where an application is made and the Department has previously
made a special tax credit certification relating to both the specified site
and a period that includes the relevant time, the Department must give
40the applicant a written notice of that certification.

(7) The Commissioners may by regulations—

(a) make provision about the time within which an application
under subsection (1) must be made and the form and content of
such an application;

(b) authorise the Department to revoke a special tax credit
certification with respect to the whole or part of the period to
which the certification relates if the Department is satisfied that
its decision as regards the meeting of the relevant requirements
5(or that decision, so far as relating to the relevant part of that
period) was not correct;

(c) make any other provision that is necessary in connection with
paragraph (b) and subsection (8);

(d) provide that a revocation by virtue of paragraph (b) may not be
10made after a specified date.

(8) A special tax credit certification is to be treated as never having had
effect in relation to any period with respect to which it is revoked by
virtue of subsection (7)(b).

(9) Regulations under this section which make provision such as is
15mentioned in subsection (7)(b) must require the Department to inform
the Commissioners, and any other person to whom the Department has
given a written notice of the certification, if the Department revokes a
special tax credit certification.

(10) Any expenses of the Department under or by virtue of this section or
20section 30B are to be appropriated from the Consolidated Fund of
Northern Ireland by Act of the Northern Ireland Assembly.

(11) In this section “the Department” and “special tax credit” have the same
meaning as in section 30B.”

(3) In section 17 (meaning of “aggregate” and “taxable aggregate”), in subsection
25(6)(a), for “or 30A” substitute “, 30A or 30B”.

(4) In section 48(1) (interpretation of Part), in the definition of “tax credit
regulations”, for “or 30A” substitute “, 30A or 30B”.

(5) In paragraph 9A of Schedule 6 (incorrect records etc evidencing claim for tax
credit), in sub-paragraph (1)(a)—

(a) 30omit the “or” at the end of sub-paragraph (i), and

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

(iii) section 30B(3) of this Act (special tax credit in
Northern Ireland);”.

(6) In paragraph 2 of Schedule 8 (interest payable by the Commissioners), in sub-
35paragraph (3)—

(a) in paragraph (b), for “of this Act; but” substitute “or 30B(6)(d);”, and

(b) after paragraph (b) insert—

“(ba) do not include the amount of any tax credit to which
a person is entitled by virtue of section 30B(1); but”.

40Climate change levy

62 Climate change levy: main rates from 1 April 2016

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