Finance (No. 3) Bill (HC Bill 282)
PART 2 continued
Contents page 1-9 10-19 20-29 30-37 40-49 50-59 60-69 70-79 80-89 90-99 100-109 110-119 120-129 130-139 Last page
Finance (No. 3) BillPage 30
(a)
“the enactments relating to stamp duty” means the Stamp Act 1891 and
any enactment amending that Act or that is to be construed as one with
that Act, and
(b)
the value of listed securities is to be taken to be the price which they
5might reasonably be expected to fetch on a sale in the open market at
the date the instrument is executed.
(5)
Section 1122 of CTA 2010 (connected persons) has effect for the purposes of this
section.
(6)
The Treasury may by regulations made by statutory instrument provide for
10this section not to apply in relation to particular cases.
(7)
Regulations under subsection (6) may have effect in relation to instruments
executed before the regulations come into force.
(8)
A statutory instrument containing regulations under subsection (6) is subject
to annulment in pursuance of a resolution of the House of Commons.
(9) 15This section is to be construed as one with the Stamp Act 1891.
(10)
This section has effect in relation to instruments executed on or after 29 October
2018.
47 SDRT: listed securities and connected persons
(1) This section applies if a person is connected with a company and—
(a)
20the person or the person’s nominee agrees to transfer listed securities
to the company or the company’s nominee (whether or not for
consideration), or
(b)
the person or the person’s nominee transfers such securities to the
company or the company’s nominee for consideration in money or
25money’s worth.
(2) “Listed securities” are chargeable securities which are regularly traded on—
(a) a regulated market,
(b) a multilateral trading facility, or
(c) a recognised foreign exchange,
30and expressions used in paragraphs (a) to (c) have the same meaning as in
section 88B of FA 1986 (intermediaries: supplementary).
(3)
For the purposes of stamp duty reserve tax chargeable under section 87 of FA
1986 (the principal charge)—
(a)
in a case where the agreement is one to transfer listed securities for
35consideration in money or money’s worth, the amount or value of the
consideration is to be treated as being equal to—
(i) the amount or value of the consideration for the transfer, or
(ii)
if higher, the value of the listed securities at the time the
agreement is made;
(b)
40in any other case, the agrement to transfer listed securities is to be
treated as being one for an amount of consideration in money equal to
the value of the listed securities at the time the agreement is made.
(4)
Subsection (5) has effect for the purposes of stamp duty reserve tax chargeable
under section 93 (depositary receipts) or 96 (clearance services) of FA 1986.
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(5)
If the amount or value of the consideration for any transfer of listed securities
is less than the value of those securities at the time they are transferred, the
transfer is to be treated as being for an amount of consideration in money equal
to that value.
(6)
5For the purposes of this section, the value of listed securities at any time is the
price which they might reasonably be expected to fetch on a sale in the open
market at that time.
(7)
Section 1122 of CTA 2010 (connected persons) has effect for the purposes of this
section.
(8)
10The Treasury may by regulations made by statutory instrument provide for
this section not to apply in relation to particular cases.
(9)
Regulations under subsection (8) may have effect in relation to transactions
entered into before the regulations come into force.
(10)
A statutory instrument containing regulations under subsection (8) is subject
15to annulment in pursuance of a resolution of the House of Commons.
(11) This section is to be construed as one with Part 4 of FA 1986.
(12) This section has effect—
(a) in relation to the charge to tax under section 87 of FA 1986 where—
(i)
the agreement to transfer securities is conditional and the
20condition is satisfied on or after 29 October 2018, or
(ii) in any other case, the agreement is made on or after that date;
(b)
in relation to the charge to tax under section 93 or 96 of that Act, where
the transfer is on or after 29 October 2018 (whenever the arrangement
was made).
48 25Stamp duty: exemption for financial institutions in resolution
(1) In FA 1986, after section 85 insert—
““Resolution of financial institutions
85A Resolution of financial institutions
(1)
Stamp duty is not chargeable on the transfer of stock or marketable
securities by—
(a) 30an instrument listed in subsection (2), or
(b)
an instrument made under an instrument listed in subsection
(2).
(2) The instruments are—
(a)
a mandatory reduction instrument made in accordance with
35section 6B of the Banking Act 2009 (mandatory write-down,
conversion etc of capital instruments),
(b)
a share transfer instrument or property transfer instrument
made in accordance with section 12(2) of that Act (transfer to a
bridge bank),
(c)
40a property transfer instrument made in accordance with section
12ZA(3) of that Act (transfer to asset management vehicle),
(d)
a resolution instrument made in accordance with section 12A of
that Act (bail-in),
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(e)
a share transfer order or share transfer instrument made in
accordance with section 13(2) of that Act (share transfer),
(f)
a supplemental share transfer instrument made in accordance
with section 26 of that Act, where the original instrument was
5made in accordance with section 12(2) or 13(2) of that Act,
(g)
a supplemental share transfer order made in accordance with
section 27 of that Act,
(h)
a property transfer instrument made in accordance with section
41A(2) of that Act (transfer of property subsequent to resolution
10instrument),
(i)
a supplemental property transfer instrument made in
accordance with section 42(2) of that Act where the original
instrument was made in accordance with section 12(2), 12ZA(3)
or 41A(2) of that Act,
(j)
15a bridge bank supplemental property transfer instrument made
in accordance with section 44D(2) of that Act,
(k)
a property transfer order made in accordance with section 45(2)
of that Act,
(l)
a supplemental resolution instrument made in accordance with
20section 48U(2) of that Act,
(m)
an onward transfer resolution instrument made in accordance
with section 48V of that Act in the circumstances set out in
subsection (3),
(n)
an order under section 85 of that Act (temporary public
25ownership: building societies), or
(o)
a third-country instrument made in accordance with section
89H(2) or 89I(4) of that Act.
(3)
The circumstances referred to in subsection (2)(m) are that the
transfer—
(a)
30is to a person within section 67(6), (7) or (8) or section 70(6), (7)
or (8) of this Act (depositary receipt issuers, clearance services),
and
(b)
is made by way of compensation to a creditor of the financial
institution in respect of which the original instrument (within
35the meaning of section 48V of the Banking Act 2009) was made.
(4)
References in this section to a provision of the Banking Act 2009 include
references to that provision as applied by or under any other provision
of that Act (including where it is applied with modifications or in a
substituted form).”
(2) 40The amendment made by this section has effect in relation to instruments—
(a) within section 85A(2) of FA 1986, or
(b) made under an instrument within section 85A(2) of FA 1986,
which are executed on or after the day on which this Act is passed.
49 Stamp duty and SDRT: exemptions for share incentive plans
(1)
45In section 95 of FA 2001 (exemptions in relation to approved share incentive
plans)—
(a) in subsections (1) and (2), and in the heading, omit “approved”, and
Finance (No. 3) BillPage 33
(b)
in subsection (3), for “an approved share incentive plan” substitute “a
Schedule 2 SIP”.
(2)
The amendments made by subsection (1) are to be treated as having effect from
6 April 2014.
5Value added tax
50 Duty of customers to account for tax on supplies
In section 55A of VATA 1994 (customers to account for tax on certain supplies
of goods or services), after subsection (9) insert—
“(9A)
An order made under subsection (9) may modify the application of
10subsection (3) in relation to any description of goods or services
specified in the order.”
51 Treatment of vouchers
Schedule 16 makes provision about the VAT treatment of vouchers.
52 Groups: eligibility
(1)
15Schedule 17 contains provision about the eligibility of individuals and
partnerships to be treated as members of a group for the purposes of value
added tax.
(2)
That Schedule comes into force on such day as the Treasury may by regulations
made by statutory instrument appoint.
20Alcohol
53 Rates of duty on cider, wine and made-wine
(1) ALDA 1979 is amended as follows.
(2)
In section 62(1A) (rates of duty on cider) in paragraph (a) (rate of duty on
sparkling cider of a strength exceeding 5.5%), for “£279.46” substitute
25“£288.10”.
(3) For Part 1 of the table in Schedule 1 substitute—
“Wine or Made-wine of a Strength Not Exceeding 22%
Description of wine or made-wine | Rates of duty per hectolitre £ |
---|---|
Wine or made-wine of a strength not exceeding 4% |
91.68 30 |
Wine or made-wine of a strength exceeding 4% but not exceeding 5.5% |
126.08 |
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Description of wine or made-wine | Rates of duty per hectolitre £ |
---|---|
Wine or made-wine of a strength exceeding 5.5% but not exceeding 15% and not being sparkling |
297.57 |
Sparkling wine or sparkling made- wine of a strength exceeding 5.5% but less than 8.5% |
5288.10 |
Sparkling wine or sparkling made- wine of a strength of at least 8.5% but not exceeding 15% |
381.15 10 |
Wine or made-wine of a strength exceeding 15% but not exceeding 22% |
396.72” |
(4)
The amendments made by this section are treated as having come into force on
1 February 2019.
54 15Excise duty on mid-strength cider
(1) ALDA 1979 is amended as follows.
(2) In section 62(1A) (rates of excise duty on cider)—
(a) omit the “and” at the end of paragraph (b), and
(b) after paragraph (b) insert—
“(ba)
20£50.71 per hectolitre in the case of cider of a strength of
not less than 6.9 per cent but not exceeding 7.5 per cent
which is not sparkling cider; and”.
(3) In section 62B (cider labelled as strong cider)—
(a) in the heading, after “strong cider” insert “or mid-strength cider”,
(b) 25in subsection (1)—
(i)
in the opening words, after “standard cider” insert “or mid-
strength cider”,
(ii) for paragraph (a) substitute—
“(a)
is in a container which is up-labelled as a
30container of strong cider, or”,”
(iii)
in paragraph (b), for “an up-labelled container” substitute “a
container which is up-labelled as a container of strong cider,”,
and
(iv)
in the words after paragraph (b), after “standard cider” insert
35“or mid-strength cider”,
(c) after subsection (1), insert—
“(1A)
For the purposes of this Act, any liquor which would apart from
this section be standard cider and which—
(a)
is in a container which is up-labelled as a container of
40mid-strength cider, or
(b)
has, at any time after 31 January 2019 when it was in the
United Kingdom, been in a container which is up-
labelled as a container of mid-strength cider,
Finance (No. 3) BillPage 35
shall be deemed to be mid-strength cider, and not standard
cider.”,”
(d) for subsection (2) substitute—
“(2)
Accordingly, references in this Act to making cider include
5references to—
(a)
putting standard or mid-strength cider in a container
which is up-labelled as a container of strong cider;
(b)
causing a container in which there is standard or mid-
strength cider to be up-labelled as a container of strong
10cider;
(c)
putting standard cider in a container which is up-
labelled as a container of mid-strength cider; or
(d)
causing a container in which there is standard cider to be
up-labelled as a container of mid-strength cider.”,”
(e) 15in subsection (4)—
(i)
in paragraph (a), for “not exceeding 7.5 per cent” substitute “of
less than 6.9 per cent”,
(ii) omit the “and” at the end of that paragraph, and
(iii) after paragraph (a), insert—
“(aa)
20“mid-strength cider” means cider which is not
sparkling and is of a strength of not less than 6.9
per cent but not exceeding 7.5 per cent; and”,”
(f)
in subsection (5), in the opening words, after “up-labelled” insert “as a
container of strong cider”, and
(g) 25after subsection (6), insert—
“(7)
For the purposes of this section a container is up-labelled as a
container of mid-strength cider if there is anything on—
(a) the container itself,
(b)
a label or leaflet attached to or used with the container,
30or
(c)
any packaging used for or in association with the
container,
which states or tends to suggest that the strength of any liquor
in that container falls within the mid-strength cider strength
35range.
(8)
For the purposes of subsection (7), a strength falls within the
mid-strength cider strength range if it is not less than 6.9 per
cent but does not exceed 7.5 per cent.
(9)
Where liquor is no longer in a container which is an up-labelled
40container, and it falls within subsection (1)(b) and within
subsection (1A)(b), then it is deemed to be cider of the strength
range stated or suggested by the labelling for the up-labelled
container in which it was first contained.
(10) For the purposes of subsection (9)—
(a) 45an “up-labelled container” means—
(i)
a container which is up-labelled as a container of
strong cider as mentioned in subsection (1)(b), or
Finance (No. 3) BillPage 36
(ii)
a container which is up-labelled as a container of
mid-strength cider as mentioned in subsection
(1A)(b), and
(b)
references to the labelling for any container are
5references to anything on—
(i) the container itself,
(ii)
a label or leaflet attached to or used with the
container, or
(iii)
any packaging used for or in association with the
10container.”
(4)
The amendments made by this section are to be treated as having come into
force on 1 February 2019.
Tobacco
55 Rates
(1) 15TPDA 1979 is amended as follows.
(2) For the table in Schedule 1 substitute—
1 Cigarettes | An amount equal to the higher (a)
16.5% of the retail price (b)
£293.95 per thousand |
2 Cigars | £284.76 per kilogram |
3 Hand-rolling tobacco | £234.65 per kilogram |
4 Other smoking tobacco and chewing tobacco |
£125.20 per kilogram” 30 |
(3)
The amendment made by this section is treated as having come into force at
6pm on 29 October 2018.
56 Tobacco for heating
(1) TPDA 1979 is amended as follows.
(2) 35In section 1 (tobacco products), in subsection (1)—
(a) in paragraph (d), omit the final “and”;
(b) after paragraph (e) insert “and
(f) tobacco for heating,”.
(3)
In that section, in subsection (3), for “and chewing tobacco” substitute “,
40chewing tobacco and tobacco for heating”.
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(4) In the table in Schedule 1 (as substituted by section 55), at the end insert—
““5. Tobacco for heating | £234.65 per kilogram”. |
(5)
The Commissioners for Her Majesty’s Revenue and Customs may by
regulations made by statutory instrument make consequential,
5supplementary, incidental or transitional provision in relation to the provision
made by subsections (2) to (4) (including provision amending any enactment).
(6)
A statutory instrument containing regulations under subsection (5) is subject
to annulment in pursuance of a resolution of the House of Commons.
(7)
The amendments made by subsections (2) and (4) come into force on such day
10as the Treasury may by regulations made by statutory instrument appoint.
Vehicle duties
57 VED: rates for light passenger vehicles, light goods vehicles, motorcycles etc
(1)
Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as
follows.
(2) 15In paragraph 1 (general rate)—
(a)
in sub-paragraph (2) (vehicle not covered elsewhere in Schedule with
engine cylinder capacity exceeding 1,549cc), for “£255” substitute
“£265”, and
(b)
in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with
20engine cylinder capacity not exceeding 1,549cc), for “£155” substitute
“£160”.
(3)
In paragraph 1B (graduated rates for light passenger vehicles registered before
1 April 2017)—
(a) for the Table substitute—
“CO2 emissions figure | 25Rate | ||
---|---|---|---|
(1) | (2) | (3) | (4) |
Exceeding | Not exceeding | Reduced rate | Standard rate |
g/km | g/km | £ | £ |
100 | 110 | 10 | 20 |
110 | 120 | 20 | 3030 |
120 | 130 | 115 | 125 |
130 | 140 | 135 | 145 |
140 | 150 | 150 | 160 |
150 | 165 | 190 | 200 |
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“CO2 emissions figure | Rate | ||
---|---|---|---|
(1) | (2) | (3) | (4) |
Exceeding | Not exceeding | Reduced rate | Standard rate |
g/km | g/km | £ | £ |
165 | 175 | 225 | 5235 |
175 | 185 | 250 | 260 |
185 | 200 | 290 | 300 |
200 | 225 | 315 | 325 |
225 | 255 | 545 | 555 |
255 | — | 560 | 10570”; |
(b)
in the sentence immediately following the Table, for paragraphs (a) and
(b) substitute—
“(a)
in column (3), in the last two rows, “315” were
substituted for “545” and “560”, and
(b)
15in column (4), in the last two rows, “325” were
substituted for “555” and “570”.”
(4)
In paragraph 1GC (graduated rates for first licence for light passenger vehicles
registered on or after 1 April 2017)—
(a) for Table 1 (vehicles other than higher rate diesel vehicles) substitute—
“CO2 emissions figure | 20Rate | ||
---|---|---|---|
(1) | (2) | (3) | (4) |
Exceeding | Not exceeding | Reduced rate | Standard rate |
g/km | g/km | £ | £ |
0 | 50 | 0 | 10 |
50 | 75 | 15 | 2525 |
75 | 90 | 100 | 110 |
90 | 100 | 120 | 130 |
100 | 110 | 140 | 150 |
110 | 130 | 160 | 170 |
130 | 150 | 200 | 30210 |
150 | 170 | 520 | 530 |
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“CO2 emissions figure | Rate | ||
---|---|---|---|
(1) | (2) | (3) | (4) |
Exceeding | Not exceeding | Reduced rate | Standard rate |
g/km | g/km | £ | £ |
170 | 190 | 845 | 5855 |
190 | 225 | 1270 | 1280 |
225 | 255 | 1805 | 1815 |
255 | — | 2125 | 2135”, and |
(b) for Table 2 (higher rate diesel vehicles) substitute—
CO2 emissions figure | 10Rate | |
---|---|---|
(1) | (2) | (3) |
Exceeding | Not exceeding | Rate |
g/km | g/km | £ |
0 | 50 | 25 |
50 | 75 | 15110 |
75 | 90 | 130 |
90 | 100 | 150 |
100 | 110 | 170 |
110 | 130 | 210 |
130 | 150 | 20530 |
150 | 170 | 855 |
170 | 190 | 1280 |
190 | 225 | 1815 |
225 | 255 | 2135 |
255 | — | 252135”. |
(5)
In paragraph 1GD (rates for any other licence for light passenger vehicles
registered on or after 1 April 2017), in sub-paragraph (1)—
(a) in paragraph (a) (the reduced rate) for “£130” substitute “£135”, and
(b) in paragraph (b) (the standard rate) for “£140” substitute “£145”.