Finance Bill (HC Bill 102)

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(b) contain consequential, supplementary and transitional provision.

(4) Regulations under this section must be made by statutory instrument.

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

(6) 5References in this section to investments made for the purposes of a co-
ownership authorised contractual scheme in an offshore fund include
investments so made through one or more other co-ownership authorised
contractual schemes.

(7) In this section—

  • 10“co-ownership authorised contractual scheme” means a co-ownership
    scheme which is authorised for the purposes of the Financial Services
    and Markets Act 2000 by an authorisation order in force under section
    261D(1) of that Act;

  • “co-ownership scheme” has the same meaning as in Part 17 of that Act
    15(see section 235A(2) of that Act);

  • “offshore fund” has the meaning given by section 355 of TIOPA 2010;

  • “operator”, in relation to a co-ownership authorised contractual scheme,
    has the meaning given by section 237(2) of the Financial Services and
    Markets Act 2000;

  • 20“participant”, in relation to such a scheme, is to be read in accordance with
    section 235 of that Act.

Part 2 Indirect taxes

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

(1) 25In section 30 of FA 1994 (air passenger duty: rates of duty), in subsection (4A)
(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
30passengers beginning on or after 1 April 2018.

44 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.

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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.

45 25Gaming duty: rates

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

Schedule 1 “Table

Part of gross gaming yield Rate
The first £2,423,500 3015%
The next £1,670,500 20%
The next £2,925,500 30%
The next £6,175,500 40%
The remainder 50%”.

(2) 35The amendment made by this section has effect in relation to accounting
periods beginning on or after 1 April 2017.

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46 Remote gaming duty: freeplay

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

(2) In section 159 (remote gaming duty: gaming payments), for subsection (4)
5substitute—

(4) For the purposes of this Chapter—

(a) where the chargeable person participates in the remote gaming
in reliance on an offer which waives all of a gaming payment,
the person is to be treated as having made a gaming payment of
10the 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
15payment of the difference between the gaming payment
actually 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) 20as having been made to the gaming provider at the time when
the chargeable person begins to participate in the remote
gaming to which it relates, and

(b) as not having been—

(i) returned, or

(ii) 25assigned to a gaming prize fund.

(6) The 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) 30After section 159 insert—

159A 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
35relation to which the first and second conditions are met (“excluded
winnings”).

(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
40payment, or

(b) in 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
45the money otherwise than for the purpose of participation in the
gaming.

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(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
5participation 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) 10For 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) 15In this section “money” includes any amount credited and any other
money’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) 20in subsection (3), at the end insert “(but where a gaming payment is
returned 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) 25After section 160 insert—

160A 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
30prize is nil, and

(b) subsections (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
35another benefit, section 160(5)(b) has effect as if after “used” there were
inserted “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)

    40an activity in respect of which a gambling tax listed in
    section 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
    45activity in respect of which a gambling tax listed in
    section 161(4) is charged.”

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(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) 5no 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
10“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
15periods beginning on or after 1 August 2017.

47 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
20machinery 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
25respect 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
30machinery 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) 35Regulations 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
40being 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 assessment and recovery of a penalty, including
provision for two or more contraventions to be treated as a
single contravention for the purposes of assessment;

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(e) 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
a penalty;

(f) 5about reviews by the Commissioners, or by an officer of
Revenue and Customs, of decisions in connection with licensing
and 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
10they were listed in section 13A(2) of, or Schedule 5 to, the
Finance Act 1994);

(g) for 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
15specified in the regulations.

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

(a) regulating the grant of licences, including provision about the
circumstances in which a licence may be granted and the
20requirements 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) 25for 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 renewal, surrender or transfer of a licence;

(f) for communications by or with the Commissioners in
30connection 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) 35In section 9 of TPDA 1979 (regulations), in subsection (1A), for “or 8U”
substitute “, 8U or 8V”.

Part 3 Fulfilment businesses

48 Carrying on a third country goods fulfilment business

(1) 40For the purposes of this Part a person carries on a third country goods
fulfilment business if the person, by way of business—

(a) stores third country goods which are owned by a person who is not
established in a Member State, or

(b) stores third country goods on behalf of a person who is not established
45in a Member State,

at a time when the conditions in subsection (2) are met in relation to the goods.

(2) The conditions are that—

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(a) there has been no supply of the goods in the United Kingdom for the
purposes of VATA 1994, and

(b) the goods are being offered for sale in the United Kingdom or
elsewhere.

(3) 5But a person does not carry on a third country goods fulfilment business if the
person’s activities within subsection (1) are incidental to the carriage of the
goods.

(4) Goods are “third country” goods if they have been imported from a place
outside the Member States within the meaning of section 15 of VATA 1994.

(5) 10Whether a person is established in a Member State is to be determined in
accordance with Article 10 of Council Implementing Regulation (EU) No 282/
2011 of 15 March 2011 laying down implementing measures for Directive
2006/112/EC on the common system of value added tax.

49 Requirement for approval

(1) 15A person may not carry on a third country goods fulfilment business otherwise
than in accordance with an approval given by the Commissioners under this
section.

(2) The Commissioners may approve a person to carry on a third country goods
fulfilment business only if they are satisfied that the person is a fit and proper
20person to carry on the business.

(3) The Commissioners may approve a person to carry on a third country goods
fulfilment business for such periods and subject to such conditions or
restrictions as they may think fit or as they may by regulations made by them
prescribe.

(4) 25The Commissioners may at any time for reasonable cause vary the terms of, or
revoke, an approval under this section.

(5) In this Part “approved person” means a person approved under this section to
carry on a third country goods fulfilment business.

50 Register of approved persons

(1) 30The 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
35person who carries on a third country goods fulfilment business 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 the internet)
as the Commissioners consider appropriate.

51 40Regulations relating to approval, registration etc.

(1) The Commissioners may by regulations make provision—

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

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(b) regulating 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 50,

(d) 5regulating the carrying on of a third country goods fulfilment business,
and

(e) imposing obligations on approved persons.

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

(a) requiring applications, and other communications with the
10Commissioners, to be made electronically;

(b) as to the procedure for the approval and registration of bodies
corporate which are members of the same group;

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

52 15Disclosure of information by HMRC

(1) The Commissioners may disclose to an approved person information held by
Her Majesty’s Revenue and Customs in connection with a function of Her
Majesty’s Revenue and Customs, but only for the purpose mentioned in
subsection (2).

(2) 20The purpose is to assist the approved person in complying with obligations
imposed on that person by virtue of section 51.

(3) An approved person to whom information is disclosed under subsection (1)

(a) may use the information only for the purpose of complying with
obligations imposed on that person by virtue of section 51, and

(b) 25may not further disclose the information except with the consent of the
Commissioners.

(4) Section 19 of the Commissioners for Revenue and Customs Act 2005 (offence)
applies to a disclosure in contravention of subsection (3)(b) as it applies to a
disclosure, in contravention of section 20(9) of that Act, of revenue and customs
30information relating to a person whose identity is specified in the disclosure or
can be deduced from it.

53 Offence

(1) A person who—

(a) carries on a third country goods fulfilment business, and

(b) 35is not an approved person,

commits an offence.

(2) In proceedings for an offence under subsection (1) it is a defence to show that
the person did not know, and had no reasonable grounds to suspect, that the
person—

(a) 40was carrying on a third country goods fulfilment business, or

(b) was not an approved person.

(3) A person is taken to have shown the fact mentioned in subsection (2) if—

(a) sufficient evidence of that fact is adduced to raise an issue with respect
to it, and

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(b) the contrary is not proved beyond reasonable doubt.

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

(a) in England and Wales, to imprisonment for a term not exceeding 12
5months, or a fine, or both;

(b) in Scotland, to imprisonment for a term not exceeding 12 months, or a
fine not exceeding the statutory maximum, or both;

(c) in Northern Ireland, to imprisonment for a term not exceeding 6
months, or a fine not exceeding the statutory maximum, or both.

(5) 10A person guilty of an offence under this section is liable on conviction on
indictment to—

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

(b) a fine, or

(c) both.

(6) 15In relation to an offence committed before the commencement of section 154(1)
of the Criminal Justice Act 2003 the reference in subsection (4)(a) to 12 months
is to be read as a reference to 6 months.

54 Forfeiture

(1) If a person—

(a) 20carries on a third country goods fulfilment business, and

(b) is not an approved person,

any goods within subsection (2) are liable to forfeiture under CEMA 1979.

(2) Goods are within this subsection if—

(a) they are stored by the person, and

(b) 25their storage by the person constitutes, or has constituted, the carrying
on of a third country goods fulfilment business by the person.

55 Penalties

(1) Schedule 13 provides for a penalty to be payable by a person who carries on a
third country goods fulfilment business and is not an approved person.

(2) 30The Commissioners may make regulations (“penalty regulations”) imposing a
penalty for the contravention of—

(a) any condition or restriction imposed under this Part;

(b) regulations under this Part.

(3) The amount of a penalty imposed by the penalty regulations is to be specified
35in the regulations, but must not exceed £3,000.

(4) The penalty regulations may make provision for the assessment and recovery
of a penalty imposed by the regulations.

(5) The Commissioners may by regulations make provision for corporate bodies
which are members of the same group to be jointly and severally liable for any
40penalties imposed under—

(a) Schedule 13;

(b) penalty regulations.

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56 Appeals

(1) FA 1994 is amended as follows.

(2) In section 13A(2) (customs and excise reviews and appeals: relevant decisions)
after paragraph (gb) insert—

(gc) 5any decision by HMRC that a person is liable to a penalty, or as
to the amount of a person’s liability, under—

(i) regulations under section 55 of the Finance (No. 2) Act
2017, or

(ii) Schedule 13 to that Act;”.

(3) 10In Schedule 5 to that Act (decisions subject to review and appeal) after
paragraph 9A insert—

“The Finance (No. 2) Act 2017

9B Any decision for the purposes of Part 3 of the Finance (No. 2) Act
2017 (third country goods fulfilment businesses) as to—

(a) 15whether or not, and in which respects, any person is to be, or
to continue to be, approved and registered, or

(b) the conditions or restrictions subject to which any person is
approved and registered.”

57 Regulations

(1) 20Regulations under this Part may—

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

(b) make different provision for different cases or purposes;

(c) include incidental, consequential, transitional or transitory provision;

(d) 25confer a discretion on the Commissioners;

(e) make provision by reference to a notice to be published by the
Commissioners.

(2) Regulations under this Part are to be made by statutory instrument.

(3) A statutory instrument containing regulations under this Part is subject to
30annulment in pursuance of a resolution of the House of Commons.

(4) This section does not apply to regulations under section 59 (commencement).

58 Interpretation

(1) In this Part—

  • “approved person” has the meaning given by section 49(5);

  • 35“the Commissioners” means the Commissioners for Her Majesty’s
    Revenue and Customs.

(2) For the purposes of this Part two or more bodies corporate are members of a
group if—

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

(b) 40one person (whether a body corporate or an individual) controls all of
them, or