Taxation (Cross-border Trade) Bill (HC Bill 128)

Taxation (Cross-border Trade) BillPage 160

(a) for paragraph (a) substitute—

(a) that any value added tax charged on any supply
involving the removal of the vehicle into the
United Kingdom has been or will be paid or
5remitted,”,

(b) in paragraph (b), omit “from a place outside the member States”, and

(c) in paragraph (c), omit “acquisition or”.

Finance Act 2003

109 The Finance Act 2003 is amended as follows.

110 10In section 24 (taxes and duties on importation and exportation: penalties), in
subsection (3), in the definition of “import VAT”, for “from places outside
the member States” substitute “into the United Kingdom”.

111 In section 26 (penalty for contravention of relevant rule), in subsection (8),
omit paragraph (d).

15Finance Act 2007

112 (1) Paragraph 1 of Schedule 24 to the Finance Act 2007 (penalties for errors) is
amended as follows.

(2) In the table, omit the third entry relating to VAT (return under a special
scheme).

(3) 20Omit sub-paragraphs (4A) to (4C).

Finance Act 2008

113 The Finance Act 2008 is amended as follows.

114 (1) Schedule 36 (information and inspection powers) is amended as follows.

(2) In paragraph 11—

(a) 25in sub-paragraph (1), omit paragraph (b) (but not the “or” at the end
of that paragraph), and

(b) in sub-paragraph (2), in paragraph (c), omit the words from “, the
acquisition” to “acquisitions”.

(3) In paragraph 34—

(a) 30in sub-paragraph (1)—

(i) omit paragraph (b) (but not the “or” at the end of that
paragraph), and

(ii) in paragraph (c), omit “from a place outside the member
States”, and

(b) 35in sub-paragraph (4), omit “, 11”.

(4) In paragraph 63, in sub-paragraph (3), omit paragraph (b) (but not the “and”
at the end of that paragraph).

115 (1) Schedule 41 (penalties: failure to notify and certain VAT and excise
wrongdoing) is amended as follows.

(2) 40In paragraph 1, in the table—

Taxation (Cross-border Trade) BillPage 161

(a) omit the second entry relating to Value Added Tax (obligation to
notify under Schedule 2 to the Value Added Tax Act 1994),

(b) omit the third entry relating to Value Added Tax (obligations to
notify under Schedule 3 to the Value Added Tax Act 1994), and

(c) 5omit the fifth entry relating to Value Added Tax (obligation to notify
under regulations made under paragraph 2(4) of Schedule 11 to the
Value Added Tax Act 1994).

(3) In paragraph 7—

(a) omit sub-paragraph (5),

(b) 10in sub-paragraph (6)—

(i) for “any other” substitute “a”, and

(ii) omit “, but subject to sub-paragraph (8)”,

(c) in sub-paragraph (7), in paragraph (a), omit “, paragraph 8(2) of
Schedule 3 to that Act”, and

(d) 15omit sub-paragraph (8).

Finance Act 2009

116 The Finance Act 2009 is amended as follows.

117 In section 101 (late payment interest on sums due to HMRC), omit
subsections (10) and (11).

118 20In section 108 (suspension of penalties during currency of agreement for
deferred payment), in the table in subsection (5), in the entry relating to
value added tax, omit “or under paragraph 16F of Schedule 3B, or paragraph
26 of Schedule 3BA, to that Act”.

119 (1) Schedule 55 (penalty for failure to make returns etc) is amended as follows.

(2) 25In paragraph 1—

(a) in sub-paragraph (4), in the definition of “filing date”, omit “(or, in
the case of a return mentioned in item 7AA or 7AB of the Table, to
the tax authorities to whom the return is required to be delivered)”,
and

(b) 30in the table, omit items 7AA and 7AB (returns relating to Schedules
3BA and 3B to the Value Added Tax Act 1994).

(3) In paragraph 13A, in sub-paragraph (1), for “7A to 7B” substitute “7A, 7B”.

120 In paragraph 1 of Schedule 56 (penalty for failure to make payments on
time), in the table—

(a) 35omit items 6BA and 6BB (amounts payable under returns relating to
Schedules 3B and 3BA to the Value Added Tax Act 1994), and

(b) omit items 13AA and 13AB (amounts assessed under section 73(1) of
the Value Added Tax Act 1994 by virtue of Schedules 3B and 3BA of
that Act).

40Finance Act 2011

121 In paragraph 45 of Schedule 23 to the Finance Act 2011 (power to obtain
data: meaning of “tax”), in sub-paragraph (3), omit paragraph (b) (together
with the “and” before that paragraph).

Taxation (Cross-border Trade) BillPage 162

Finance Act 2016

122 In Schedule 18 to the Finance Act 2016 (serial tax avoidance)—

(a) in paragraph 5(4)—

(i) omit paragraph (b) (but not the “and” at the end of the
5paragraph), and

(ii) in paragraph (c), omit “from a place outside the member
States”,

(b) in paragraph 6(2)—

(i) omit paragraph (b) (but not the “and” at the end of the
10paragraph), and

(ii) in paragraph (c), omit “from a place outside the member
States”, and

(c) in paragraph 36(8)—

(i) omit paragraph (b), and

(ii) 15in paragraph (c), omit “from a place outside the member
States”.

Finance (No. 2) Act 2017

123 The Finance (No. 2) Act 2017 is amended as follows.

124 (1) Section 48 (carrying on a third country goods fulfilment business) is
20amended as follows.

(2) In subsection (1)—

(a) in the opening words, for “a third country goods” substitute “an
imported goods”,

(b) in paragraph (a)—

(i) 25for “third country goods” substitute “imported goods”, and

(ii) for “established in a Member State” substitute “UK-
established”, and

(c) in paragraph (b)—

(i) for “third country goods” substitute “imported goods”, and

(ii) 30for “established in a Member State” substitute “UK-
established”.

(3) In subsection (3), for “a third country goods” substitute “an imported
goods”.

(4) For subsections (4) and (5) substitute—

(4) 35Goods are “imported goods” if they have been imported into the
United Kingdom for the purposes of VATA 1994 (as to which, see
section 15).

(5) A person is “UK-established” if the person’s business establishment
is in the United Kingdom as determined for the purposes of section
409 of VATA 1994.”

(5) In the heading, for “a third country goods” substitute “an imported goods”.

125 In section 49 (requirement for approval), in subsections (1) to (3) and (5), for
“a third country goods” substitute “an imported goods”.

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126 In section 50 (register of approved persons), in subsection (3), for “a third
country goods” substitute “an imported goods”.

127 In section 51 (regulations relating to approval, registration etc), in subsection
(1)(d), for “a third country goods” substitute “an imported goods”.

128 5In section 53 (offence), in subsections (1)(a) and (2)(a), for “a third country
goods” substitute “an imported goods”.

129 In section 54 (forfeiture), in subsections (1)(a) and (2)(b), for “a third country
goods” substitute “an imported goods”.

130 In section 55 (penalties), in subsection (1), for “a third country goods”
10substitute “an imported goods”.

131 (1) Schedule 13 (third country goods fulfilment businesses: penalty) is amended
as follows.

(2) In paragraph 1(1)(a), for “a third country goods” substitute “an imported
goods”.

(3) 15In the heading of the Schedule, for “Third country goods” substitute
“Imported goods”.

132 In Schedule 17 (disclosure of tax avoidance schemes: VAT and other indirect
taxes), in paragraph 6—

(a) in sub-paragraph (3)—

(i) 20omit paragraph (b), and

(ii) in paragraph (c), omit “from a place outside the member
States”, and

(b) in sub-paragraph (5)—

(i) omit paragraph (b), and

(ii) 25in paragraph (c), omit “from a place outside the member
States”.

Consequential repeals

133 In consequence of the amendments made by the other provisions of this
Schedule, the following are repealed or revoked—

(a) 30in the Finance Act 1996, paragraphs 3, 4, 6, 7, 14 and 15 of Schedule 3,

(b) in the Postal Services Act 2000, paragraph 22 of Schedule 8,

(c) in the Finance Act 2001, section 100(2) and paragraph 4(4) and (5) of
Schedule 31,

(d) in the Finance Act 2002, section 25,

(e) 35in the Finance Act 2003, section 23 and Schedule 2,

(f) in the Finance Act 2006, section 19(3) and (4),

(g) in the Finance Act 2009, section 78,

(h) in the Transfer of Tribunal Functions and Revenue and Customs
Appeals Order 2009, paragraph 227 of Schedule 1,

(i) 40in the Corporation Tax Act 2010, paragraph 285(c) of Schedule 1,

(j) in the Finance Act 2012—

(i) paragraphs 14, 15 and 17 of Schedule 28, and

(ii) paragraphs 2(2), 9, 10 and 12(3), (6) and (7) of Schedule 29,

(k) in the Value Added Tax (Relief for European Research Infrastructure
45Consortia) Order 2012, article 3,

Taxation (Cross-border Trade) BillPage 164

(l) in the Finance Act 2014, sections 103 and 104(4) and Schedule 22,

(m) in the Bankruptcy (Scotland) Act 2016 (Consequential Provisions
and Modifications) Order 2016, paragraph 12(3) and (8) of Schedule
1,

(n) 5in the Finance Act 2016, section 123(12), and

(o) in the Value Added Tax (Increase of Registration Limits) Order 2017,
article 4.

Section 50

SCHEDULE 9 Excise duty amendments connected with withdrawal from EU

10Customs and Excise Management Act 1979

1 The Customs and Excise Management Act 1979 is amended as follows.

2 In section 101 (excise licences), in subsection (4), after “the Customs and
Excise Acts 1979” insert “or made by regulations under section 45 of the
Taxation (Cross-border Trade) Act 2018”.

3 (1) 15Section 157 (bonds and security) is amended as follows.

(2) Omit subsection (1A).

(3) In subsection (2)—

(a) in paragraph (a), for the words from “either” to “United Kingdom”
substitute “on behalf of Her Majesty”, and

(b) 20omit the sentence after paragraph (c).

(4) In consequence of the amendments made by this paragraph, in section 27 of
the Finance Act 2000, omit subsections (3), (5) and (6).

Hydrocarbon Oil Duties Act 1979

4 The Hydrocarbon Oil Duties Act 1979 is amended as follows.

5 (1) 25Section 13AC (use of rebated kerosene for private pleasure-flying) is
amended as follows.

(2) After subsection (6) insert—

(6A) In this section “private pleasure-flying” means the use of an aircraft
otherwise than for commercial purposes by—

(a) 30the owner of the aircraft, or

(b) any other person entitled to use it.

(6B) For the purposes of subsection (6A), the cases in which an aircraft is
to be regarded as used for commercial purposes include any case
where—

(a) 35consideration is provided by any person for the use of the
aircraft (whether for the carriage of passengers or goods or
for the supply of services or otherwise), or

(b) the aircraft is used for the purposes of any public authority.

Taxation (Cross-border Trade) BillPage 165

(6C) Regulations may provide for other cases in which use of an aircraft
is treated as being, or not being, private pleasure-flying for the
purposes of this section.”

(3) In subsection (7), omit the definition of “private pleasure-flying”.

6 (1) 5Section 14E (rebated heavy oil and bioblend: private pleasure craft) is
amended as follows.

(2) Omit subsection (7A).

(3) After that subsection insert—

(7B) In this section “private pleasure craft” means any aircraft or vessel
10used otherwise than for commercial purposes by—

(a) the owner of the aircraft or vessel, or

(b) any other person entitled to use it.

(7C) For the purposes of subsection (7B), the cases in which an aircraft or
vessel is to be regarded as used for commercial purposes include any
15case where—

(a) consideration is provided by any person for the use of the
aircraft or vessel (whether for the carriage of passengers or
goods or for the supply of services or otherwise), or

(b) the aircraft or vessel is used for the purposes of any public
20authority.

(7D) Regulations may provide for other cases in which any aircraft or
vessel is treated as being, or not being, a private pleasure craft for the
purposes of this section.”

(4) In subsection (8), omit the definition of “private pleasure craft”.

(5) 25In consequence of the amendment made by sub-paragraph (2), omit section
189 of the Finance Act 2012.

Tobacco Products Duty Act 1979

7 In section 5 of the Tobacco Products Duty Act 1979 (retail price of cigarettes),
in subsection (1A)(a), for “a member State” substitute “the United
30Kingdom”.

Finance Act 1994

8 (1) In section 12 of the Finance Act 1994 (assessments to excise duty), omit
subsection (2A).

(2) In consequence of the amendment made by sub-paragraph (1), omit
35regulation 9 of the Excise Duty Points (Duty Suspended Movements of
Excise Goods) Regulations 2001.