Finance (No. 2) Bill (HL Bill 156)

(b) in paragraph 45(1)(a) and (c) and (2), omit “landfill”;

(c) in paragraph 46(1)(b), omit “landfill”.

(11) In FA 2008, in Schedule 36 (information and inspection powers), in entry 12 of
the table in paragraph 61A, for “landfill disposal” substitute “disposal of
5material”.

(12) In FA 2011, in Schedule 23 (data-gathering powers), in paragraph 25(c), for
“landfill disposal” substitute “disposal of material”.

(13) The amendments made by this section come into force—

(a) so far as conferring a power to make an order or regulations, on the day
10on which this Act is passed, and

(b) subject to that, in accordance with provision made by the Treasury by
regulations made by statutory instrument.

(14) Regulations under subsection (13) may contain transitional provision and
savings.

15Air passenger duty

61 Air passenger duty: rates of duty from 1 April 2017

(1) In section 30 of FA 1994 (air passenger duty: rates of duty), in subsection (4A)
(long haul rates of duty)—

(a) in paragraph (a), for “£73” substitute “£75”;

(b) 20in paragraph (b), for “£146” substitute “£150”.

(2) The amendments made by this section have effect in relation to the carriage of
passengers beginning on or after 1 April 2017.

62 Air passenger duty: rates of duty from 1 April 2018

(1) In section 30 of FA 1994 (air passenger duty: rates of duty), in subsection (4A)
25(long haul rates of duty)—

(a) in paragraph (a), for “£75” substitute “£78”;

(b) in paragraph (b), for “£150” substitute “£156”.

(2) The amendments made by this section have effect in relation to the carriage of
passengers beginning on or after 1 April 2018.

30Petroleum revenue tax

63 Petroleum revenue tax: elections for oil fields to become non-taxable

(1) In Schedule 20B to FA 1993, for paragraphs 2 to 12 substitute—

““Method of election

2 An election must be made in writing.

3 35An election must be notified to the Commissioners.

4 An election is deemed to have been made on the date on which
notification of the election was sent to the Commissioners.

Effect of election

5 If an election is made, the field ceases to be taxable with effect from
the start of the first chargeable period to begin after the election is
made.

5No unrelievable field losses from field

6 From the start of the first chargeable period to begin after an election
is made, no allowable loss that accrues from the oil field is an
allowable unrelievable field loss for the purposes of petroleum
revenue tax.

10Interpretation

7 (1) In this Schedule—

• “Commissioners” means the Commissioners for Her Majesty‘s
  Revenue and Customs;

• “participator”, in relation to a particular time, means a person
  15who is a participator in the chargeable period which includes
  that time.

(2) Expressions used in this Schedule and in Part 1 of the Oil Taxation
Act 1975 have the same meaning in this Schedule as in Part 1 of that
Act.””

(2) 20In OTA 1975, in section 6(1A), for “paragraph 5” substitute “paragraph 6”.

(3) In FA 1980, in paragraph 15(9A) of Schedule 17, for “paragraph 5” substitute
“paragraph 6”.

(4) The amendment made by this section is to be treated as having come into force
on 23 November 2016.

25Vehicle excise duty

64 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 rate of duty)—

(a) in sub-paragraph (2) (vehicle not covered elsewhere in Schedule with
30engine cylinder capacity exceeding 1,549cc), for “£235” substitute
“£245”, and

(b) in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with
engine cylinder capacity not exceeding 1,549cc), for “£145” substitute
“£150”.

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

(a) in the words before paragraph (a), for “tables” substitute “table”,

(b) in paragraph (a), at the end insert “and”,

(c) in paragraph (b), at the end omit “, and”,

(d) omit paragraph (c),

(e) 40for Tables 1 and 2 substitute—

(f) in the sentence immediately following Table 2—

(i) at the beginning, for “Table 2” substitute “The table”, and

(ii) for paragraphs (a) and (b) substitute—

“(a) 20in column (3), in the last two rows, “295” were
substituted for “510” and “525”, and

(b) in column (4), in the last two rows, “305” were
substituted for “520” and “535”.””

(4) In paragraph 1J (VED rates for light goods vehicles), in paragraph (a), for
25“£230” substitute “£240”.

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

(a) in paragraph (a), for “£17” substitute “£18”,

(b) in paragraph (b), for “£39” substitute “£41”,

(c) in paragraph (c), for “£60” substitute “£62”, and

(d) 30in paragraph (d), for “£82” substitute “£85”.

(6) The amendments made by this section have effect in relation to licences taken
out on or after 1 April 2017.

Alcohol duties

65 Alcoholic liquor duties: rates

(1) ALDA 1979 is amended as follows.

(2) In section 5 (rate of duty on spirits), for “£27.66” substitute “£28.74”.

(3) 5In section 36(1AA) (rates of general beer duty)—

(a) in paragraph (za) (rate of duty on lower strength beer), for “£8.10”
substitute “£8.42”, and

(b) in paragraph (a) (standard rate of duty on beer), for “£18.37” substitute
“£19.08”.

(4) 10In section 37(4) (rate of high strength beer duty), for “£5.48” substitute “£5.69”.

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

(a) in paragraph (a) (rate of duty per hectolitre on sparkling cider of a
strength exceeding 5.5%), for “£268.99” substitute “£279.46”,

(b) in paragraph (b) (rate of duty per hectolitre on cider of a strength
15exceeding 7.5% which is not sparkling cider), for “£58.75” substitute
“£61.04”, and

(c) in paragraph (c) (rate of duty per hectolitre in any other case), for
“£38.87” substitute “£40.38”.

(6) For the table in Schedule 1 substitute—

20“Schedule 1 “Table of rates of duty on wine and made-wine

Part 1 Wine or made-wine of a strength not exceeding 22%

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

(7) The amendments made by this section are treated as having come into force on
13 March 2017.

10Gaming duties

66 Gaming duty: rates

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

“Schedule 1 “Table

(2) The amendment made by this section has effect in relation to accounting
periods beginning on or after 1 April 2017.

67 Remote gaming duty: freeplay

(1) Part 3 of FA 2014 (general betting duty, pool betting duty and remote gaming
25duty) is amended in accordance with subsections (2) to (8).

(2) In section 159 (remote gaming duty: gaming payments), for subsection (4)
substitute—

“(4) For the purposes of this Chapter—

(a) where the chargeable person participates in the remote gaming
30in reliance on an offer which waives all of a gaming payment,
the person is to be treated as having made a gaming payment of
the amount which would have been required to be paid without
the offer (“the full amount”), and

(b) where the chargeable person participates in the remote gaming
in reliance on an offer which waives part of a gaming payment,
the person is to be treated as having made an additional gaming
payment of the difference between the gaming payment
5actually made and the full amount.

(5) Where a person is treated by subsection (4) as having made a gaming
payment, the payment is to be treated for the purposes of this
Chapter—

(a) as having been made to the gaming provider at the time when
10the chargeable person begins to participate in the remote
gaming to which it relates, and

(b) as not having been—

(i) returned, or

(ii) assigned to a gaming prize fund.

(6) 15The Commissioners may by regulations make further provision about
how a gaming payment which a person is treated as having made
under subsection (4) is to be treated for the purposes of this Chapter.

(7) This section has effect subject to section 159A.””

(3) After section 159 insert—

“159A 20 Play using the results of successful freeplay

(1) Where a chargeable person participates in remote gaming, an amount
is not to be taken into account in determining the “gaming payment” (if
any) under section 159 so far as the amount is paid out of money in
relation to which the first and second conditions are met (“excluded
25winnings”).

(2) The first condition is that the money has been won by participation in
the gaming either—

(a) in reliance on an offer which waives all or part of a gaming
payment, or

(b) 30in a case where the gaming payment was paid out of money in
relation to which this condition and the second condition were
met.

(3) The second condition is that the chargeable person is not entitled to use
the money otherwise than for the purpose of participation in the
35gaming.

(4) Subsection (5) applies where—

(a) a chargeable person participates in remote gaming in reliance
on an offer which waives all or part of a gaming payment, and

(b) that offer has been won in the course of the person’s
40participation in the gaming (and the person was not given the
choice of receiving a different benefit instead of the offer).

(5) The amount which would, apart from this subsection, be treated by
section 159(4)(a) or (b) as a gaming payment (or additional gaming
payment) is not to be so treated.

(6) 45For the purposes of this section, where a payment is made out of
moneys which include both excluded winnings and money which is

not excluded winnings (the “other funds”), the payment is not taken to
be made out of excluded winnings except so far as the amount of the
payment exceeds the amount of those other funds.

(7) In this section “money” includes any amount credited and any other
5money’s worth.””

(4) In section 160 (remote gaming duty: prizes)—

(a) in subsection (1), in the opening words, after “account” insert “only”,

(b) omit subsection (2),

(c) in subsection (3), at the end insert “(but where a gaming payment is
10returned by being credited to an account this subsection has effect
subject to subsection (1))”, and

(d) at the end insert—

“(9) This section has effect subject to section 160A.””

(5) After section 160 insert—

“160A 15 Prizes: freeplay

(1) Where a prize is a freeplay offer (whether or not in the form of a
voucher) which does not fall within section 160(4)—

(a) for the purposes of sections 156 and 157, the expenditure on the
prize is nil, and

(b) 20subsections (5) to (7) of section 160 do not apply in relation to
the prize.

(2) Where a prize is a voucher which gives the recipient a choice of using
it in place of money for freeplay or as whole or partial payment for
another benefit, section 160(5)(b) has effect as if after “used” there were
25inserted “if it is used as payment for a benefit other than freeplay”.

(3) In this section—

• “freeplay” means participation, in reliance on a freeplay offer, in—

  (a)

  remote gaming, or

  (b)

  an activity in respect of which a gambling tax listed in
  30section 161(4) is charged;

• “freeplay offer” means an offer which waives all or part of—

  (a)

  a gaming payment, or

  (b)

  a payment in connection with participation in an
  activity in respect of which a gambling tax listed in
  35section 161(4) is charged.””

(6) In section 188 (gaming), after subsection (2) insert—

“(3) But a game is not a “game of chance” for the purposes of this Part if—

(a) it can only be played with the participation of two or more
persons, and

(b) 40no amounts are paid or required to be paid—

(i) in respect of entitlement to participate in the game, or

(ii) otherwise for, on account of or in connection with
participation in the game.””

(7) In section 190 (index), in the Table, in the entry for “game of chance”, for
45“188(1)(b)” substitute “188(1)(b) and (3)”.

(8) In section 194(4) (regulations under Part 3 to which the procedure in section
194(5) is to apply), before paragraph (a), insert—

“(za) regulations under section 159(6);”.”

(9) The amendments made by this section have effect with respect to accounting
5periods beginning on or after 1 August 2017.

Tobacco products

68 Tobacco products duty: rates

(1) TPDA 1979 is amended as follows.

(2) For the table in Schedule 1 substitute—

10“Schedule 1 “TABLE

(3) The amendment made by this section is treated as having come into force at
206pm on 8 March 2017.

69 Tobacco products duty: minimum excise duty

(1) TPDA 1979 is amended as follows.

(2) In section 6(5)(a) (alteration of rates of duty), for “the amount” substitute “each
amount”.

(3) 25For the first row in the table in Schedule 1 (as substituted by section 68)
substitute—

“Schedule 1

(4) The amendments made by this section are treated as having come into force on
20 May 2017.

70 Tobacco products manufacturing machinery: licensing scheme

(1) After section 8U of TPDA 1979 insert—

“8V Tobacco products manufacturing machinery: licensing scheme

(1) In this section “tobacco products manufacturing machinery” means
5machinery that is designed primarily for use for the purpose of (or for
purposes including) manufacturing tobacco products.

(2) The Commissioners may by regulations—

(a) prohibit a person from purchasing, acquiring, owning or being
in possession of, or carrying out other specified activities in
10respect of, an item of tobacco products manufacturing
machinery, except in accordance with a licence granted under
the regulations;

(b) provide that if a person contravenes the prohibition in relation
to an item of tobacco products manufacturing machinery, the
15machinery is liable to forfeiture.

(3) The regulations may provide that the prohibition does not apply—

(a) in relation to persons, or items of tobacco products
manufacturing machinery, of a specified description;

(b) in specified circumstances.

(4) 20Regulations under this section may include provision—

(a) imposing obligations on licensed persons;

(b) for a licensed person who fails to comply with a condition or
restriction of a licence, or with an obligation imposed by the
regulations, to be liable to a penalty of the amount for the time
25being specified in section 9(2)(b) of the Finance Act 1994;

(c) for exceptions from liability to a penalty under the regulations;

(d) for the Commissioners, if they think it right because of special
circumstances, to remit, reduce (including reduce to nil) or stay
a penalty, or agree a compromise in relation to proceedings for
30a penalty;

(e) for two or more contraventions to be treated as a single
contravention for the purposes of assessing a penalty;

(f) about reviews by the Commissioners, or by an officer of
Revenue and Customs, of decisions in connection with licensing
35and the imposition of penalties under the regulations and about
appeals against those decisions (which may include provision
for specified decisions of the Commissioners to be treated as if
they were listed in section 13A(2) of, or Schedule 5 to, the
Finance Act 1994);

(g) 40for the Customs and Excise Management Act 1979 to have effect
in relation to licensed persons as it has effect in relation to
revenue traders, subject to such modifications as may be
specified in the regulations.

(5) The Commissioners may, by or under regulations under this section,
45make provision—

(a) regulating the grant of licences, including provision about the
circumstances in which a licence may be granted and the
requirements to be met by or in relation to the applicant (which

may include a requirement that the applicant is a fit and proper
person to hold a licence);

(b) about the form, manner and content of an application for or in
respect of a licence;

(c) 5for licences to be subject to specified conditions or restrictions;

(d) regulating the variation or revocation of a licence, or of any
condition or restriction to which a licence is subject;

(e) about the surrender or transfer of a licence;

(f) for communications by or with the Commissioners in
10connection with a licence to be made electronically;

(g) as to the arrangements for licensing bodies corporate which are
members of the same group (as defined in the regulations);

(h) for members of a group to be jointly and severally liable for any
penalties imposed under the regulations.””

(2) 15In section 9 of TPDA 1979 (regulations), in subsection (1A), for “or 8U”
substitute “, 8U or 8V”.

Part 3 Soft drinks industry levy

Introductory

71 20Soft drinks industry levy

(1) A tax called “soft drinks industry levy” is to be charged in accordance with this
Part.

(2) The Commissioners are responsible for the collection and management of soft
drinks industry levy.

72 25“Soft drink” and “package”

(1) “Soft drink” means—

(a) a beverage of an alcoholic strength not exceeding 1.2%;

(b) a liquid which, when prepared in a specified manner, constitutes a
beverage within paragraph (a).

(2) 30A liquid is prepared in a specified manner if it is—

(a) diluted with water,

(b) combined with crushed ice, or processed so as to create crushed ice,

(c) combined with carbon dioxide, or

(d) prepared by way of a process that involves any combination of the
35processes mentioned in paragraphs (a) to (c).

(3) A person “packages” a soft drink if the person cans, bottles or otherwise
packages the soft drink in a form in which—

(a) in the case of a soft drink within subsection (1)(a), it is suitable to be
consumed without further preparation, and

(b) 40in the case of a soft drink within subsection (1)(b), it is suitable to be
consumed when prepared in a specified manner (and without any
other preparation),