Finance Bill (HC Bill 114)

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“CO2 emissions figureRate
(1)(2)(3)
ExceedingNot exceedingRate
g/kmg/km£
5055025
5075110
7590135
90100155
100110175
1011010130215
130150540
150170870
1701901305
1902251850
15225152552175
2552175”.

(7)In paragraph 1GD(1) (rates for any other licence for light passenger vehicles
registered on or after 1 April 2017)—

(a)in paragraph (a) (reduced rate), for “£135” substitute “£140”, and

(b)20in paragraph (b) (standard rate), for “£145” substitute “£150”.

(8)In paragraph 1GE(2) (rates for light passenger vehicles registered on or after 1
April 2017 with a price exceeding £40,000)—

(a)in paragraph (a), for “£440” substitute “£465”, and

(b)in paragraph (b), for “£450” substitute “£475”.

(9)25In paragraph 1J(a) (rates for light goods vehicles that are not pre-2007 or post-
2008 lower emission vans), for “£260” substitute “£265”.

(10)In paragraph 2(1) (rates for motorcycles)—

(a)in paragraph (b) (motorbicycles with engine cylinder capacity
exceeding 150cc but not exceeding 400cc), for “£43” substitute “£44”,

(b)30in paragraph (c) (motorbicycles with engine cylinder capacity
exceeding 400cc but not exceeding 600cc), for “£66” substitute “£67”,
and

(c)in paragraph (d) (other cases), for “£91” substitute “£93”.

(11)The amendments made by this section have effect in relation to licences taken
35out on or after 1 April 2020.

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82 Applicable CO2 emissions figure determined using WLTP values

(1)In Schedule 1 to VERA 1994 (annual rates of duty) in paragraph 1GA(5)
(meaning of “the applicable CO2 emissions figure”)—

(a)omit “and” at the end of paragraph (a),

(b)5in paragraph (b)—

(i)after “figure” insert “of a vehicle first registered before 1 April
2020”,

(ii)for “light-duty” substitute “light”, and

(iii)after “EU certificate of conformity” insert “or UK approval
10certificate”, and

(c)at the end of paragraph (b) insert “, and

(c)for the purpose of determining the applicable CO2
emissions figure of a vehicle first registered on or after 1
April 2020, ignore any values specified in an EU
15certificate of conformity or UK approval certificate that
are not WLTP (worldwide harmonised light vehicle test
procedures) values”.

(2)The amendments made by this section have effect in relation to licences taken
out on or after 1 April 2020.

83 20Electric vehicles: extension of exemption

(1)VERA 1994 is amended as follows.

(2)In paragraph 25 of Schedule 2 (exempt vehicles: light passenger vehicles with
low CO2 emissions) omit sub-paragraphs (5) and (6) (no exemption if vehicle
price exceeds £40,000 etc).

(3)25As a consequence, Part 1AA of Schedule 1 (annual rates of duty: light
passenger vehicles registered on or after 1 April 2017) is amended as follows.

(4)In paragraph 1GB (exemption from paying duty on first vehicle licence for
certain vehicles)—

(a)in sub-paragraph (1) omit “(2) or”, and

(b)30omit sub-paragraph (2).

(5)In paragraph 1GD (rates of duty payable on any other vehicle licence for
vehicle), in sub-paragraph (2) omit “or (4)”.

(6)In paragraph 1GE (higher rates of duty: vehicles with a price exceeding
£40,000)—

(a)35omit sub-paragraphs (3) and (4), and

(b)in sub-paragraph (5) for “sub-paragraphs (2) and (4) do” substitute
“Sub-paragraph (2) does”.

(7)In paragraph 1GF (calculating the price of a vehicle), in sub-paragraph (1) omit
“and (3)(a)”.

(8)40The amendments made by this section come into force on 1 April 2020 but do
not apply in relation to licences in force immediately before that date.

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84 Motor caravans

(1)In VERA 1994, in Part 1AA of Schedule 1 (annual rates of duty: light passenger
vehicles registered on or after 1 April 2017), paragraph 1GA is amended as
follows.

(2)5After sub-paragraph (1) insert—

(1A)But this Part of this Schedule does not apply to a motor caravan
which is first registered, under this Act or under the law of a country
or territory outside the United Kingdom, on or after 12 March 2020.”

(3)After sub-paragraph (2) insert—

(2A)10For the purposes of sub-paragraph (1A) a vehicle is a “motor
caravan” if the certificate mentioned in sub-paragraph (1)(b)
identifies the vehicle as a motor caravan within the meaning of
Annex II to Directive 2007/46/EC.”

85 Exemption in respect of medical courier vehicles

(1)15Schedule 2 to VERA 1994 (exempt vehicles) is amended as follows.

(2)In the heading before paragraph 6, after “Ambulances” insert “, medical
courier vehicles”.

(3)After paragraph 6 insert—

(1)A vehicle is an exempt vehicle if—

(a)20it is used primarily for the transportation of medical items,

(b)it is readily identifiable as a vehicle used for the
transportation of medical items by being marked “Blood” on
both sides, and

(c)it is registered under this Act in the name of a charity whose
25main purpose is to provide services for the transportation of
medical items.

(2)In this paragraph—

  • “charity” means a charity as defined by paragraph 1 of Schedule
    6 to the Finance Act 2010;

  • 30“medical items” means items intended for use for medical
    purposes, including in particular—

    (a)

    blood;

    (b)

    medicines and other medical supplies;

    (c)

    items relating to people who are undergoing medical
    35treatment;

  • “item” includes any substance.”

(4)The amendments made by this section come into force on 1 April 2020.

Hydrocarbon oil duties

86 Rebated fuel: private pleasure craft

40Schedule 10 makes provision about the use of rebated fuel in private pleasure
craft.

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Air passenger duty

87 Rates of air passenger duty from 1 April 2021

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

(a)in paragraph (a), for “£80” substitute “£82”, and

(b)5in paragraph (b), for “£176” substitute “£180”.

(2)The amendments made by this section have effect in relation to the carriage of
passengers beginning on or after 1 April 2021.

Gaming duty

88 Amounts of gross gaming yield charged to gaming duty

(1)10In section 11(2) of FA 1997 (rates of gaming duty), for the table substitute—

Schedule 1 “Table
Part of gross gaming yieldRate
The first £2,471,00015%
The next £1,703,50020%
The next £2,983,00030%
15The next £6,296,5001540%
The remainder50%”.

(2)The amendment made by this section has effect in relation to accounting
periods beginning on or after 1 April 2020.

Environmental taxes

89 20Rates of climate change levy until 1 April 2021

(1)Paragraph 42 of Schedule 6 to FA 2000 (climate change levy: amount payable
by way of levy) is amended as follows.

(2)In sub-paragraph (1), for the table substitute—

“Table
Taxable commodity suppliedRate at which levy payable if supply
is not a reduced-rate supply
Electricity£0.00811 per kilowatt hour

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Taxable commodity suppliedRate at which levy payable if supply
is not a reduced-rate supply
Gas supplied by a gas utility or any
gas supplied in a gaseous state that
5is of a kind supplied by a gas utility
£0.00406 per kilowatt hour
Any petroleum gas, or other
gaseous hydrocarbon, supplied in a
liquid state
£0.02175 per kilogram
Any other taxable commodity£0.03174 per kilogram”.

(3)10In sub-paragraph (1)—

(a)in paragraph (ba) (reduced-rate supplies of electricity), for “7”
substitute “8”,

(b)after that paragraph insert—

(bb)if the supply is a reduced-rate of supply of any
15petroleum gas, or other gaseous hydrocarbon,
supplied in a liquid state, 23 per cent of the amount
that would be payable if the supply were a supply to
which paragraph (a) applies;”, and

(c)in paragraph (c) (other reduced-rate supplies), for “22” substitute “19”.

(4)20In consequence of the amendment made by subsection (3), in the Notes to
paragraph 2 of Schedule 1 to the Climate Change Levy (General) Regulations
2001, for the definition of “r” substitute—

  • “r= 0.92 in the case of electricity; 0.77 in the case of any petroleum
    gas, or other gaseous hydrocarbon, supplied in a liquid state;
    25and 0.81 in any other case.”

(5)The amendments made by this section have effect in relation to supplies
treated as taking place on or after 1 April 2020.

90 Rates of climate change levy from 1 April 2021

(1)Paragraph 42 of Schedule 6 to FA 2000 (climate change levy: amount payable
30by way of levy) is amended as follows.

(2)In sub-paragraph (1), for the table substitute—

“Table
Taxable commodity suppliedRate at which levy payable if supply
is not a reduced-rate supply
Electricity£0.00775 per kilowatt hour
35Gas supplied by a gas utility or any 35
gas supplied in a gaseous state that
is of a kind supplied by a gas utility
£0.00465 per kilowatt hour

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Taxable commodity suppliedRate at which levy payable if supply
is not a reduced-rate supply
Any petroleum gas, or other
gaseous hydrocarbon, supplied in a
5liquid state
£0.02175 per kilogram
Any other taxable commodity£0.03640 per kilogram”.

(3)In sub-paragraph (1)(c), as amended by section 89(3)(c), for “19” substitute
“17”.

(4)In consequence of the amendment made by subsection (3), in the definition of
10“r” in the Notes to paragraph 2 of Schedule 1 to the Climate Change Levy
(General) Regulations 2001, as amended by section 89(4), for “0.81” substitute
“0.83”.

(5)The amendments made by this section have effect in relation to supplies
treated as taking place on or after 1 April 2021.

91 15Rates of landfill tax

(1)Section 42 of FA 1996 (amount of landfill tax) is amended as follows.

(2)In subsection (1)(a) (standard rate), for “£91.35” substitute “£94.15”.

(3)In subsection (2) (reduced rate for certain disposals), in the words after
paragraph (b)—

(a)20for “£91.35” substitute “£94.15”, and

(b)for “£2.90” substitute “£3”.

(4)The amendments made by this section have effect in relation to disposals made
(or treated as made) on or after 1 April 2020.

92 Carbon emissions tax

25Schedule 11 makes provision about carbon emissions tax.

93 Charge for allocating allowances under emissions reduction trading scheme

(1)The Treasury may impose charges by providing in regulations for emissions
allowances to be allocated in return for payment.

(2)Regulations under subsection (1) may in particular include provision—

(a)30for persons other than persons to whom a trading scheme applies to be
allocated emissions allowances in return for payment;

(b)as to the imposition of fees and the making and forfeiting of deposits;

(c)as to the person by whom allocations in return for payment are to be
conducted;

(d)35for allocations in return for payment to be overseen by an independent
person appointed by the Treasury;

(e)for the imposition of penalties for failure to comply with the terms of
the regulations or of a scheme under subsection (3);

(f)for the imposition of interest in respect of any charges, fees or penalties
40due under the regulations;

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(g)for and in connection with the recovery of any charges, fees, penalties
or interest due under the regulations;

(h)conferring rights of appeal against decisions made in allocations in
return for payment, the forfeiting of deposits and the imposition of
5penalties (including specifying the person, court or tribunal to hear and
determine appeals).

The Treasury may make schemes about the conduct and terms of allocations of
emissions allowances in return for payment (the schemes having effect subject
to any regulations under this section).

(4)10Schemes under subsection (3) may in particular include provision about—

(a)who may participate in allocations in return for payment,

(b)the allowances to be allocated in return for payment, and

(c)where and when allocations in return for payment are to take place.

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

(6)15A statutory instrument containing the first regulations under this section may
not be made unless a draft of the instrument has been laid before, and
approved by a resolution of, the House of Commons.

(7)Any other statutory instrument containing regulations under this section is
subject to annulment in pursuance of a resolution of the House of Commons
20(unless a draft of the instrument has been laid before, and approved by a
resolution of, that House).

(8)In this section—

  • “emissions allowance” means an allowance under paragraph 5 of
    Schedule 2 to the Climate Change Act 2008 relating to a trading scheme;

  • 25 “trading scheme” means a trading scheme dealt with under Part 1 of that
    Schedule (schemes limiting activities relating to emissions of
    greenhouse gas).

Import duty

94 International trade disputes

30In section 15(1)(b) of TCTA 2018 (import duty: international disputes etc), for
“is authorised under international law” substitute “considers that (having
regard to the matters set out in section 28 and any other relevant matters) it is
appropriate”.

Part 4 35Miscellaneous and final

Insolvency

95 HMRC debts: priority on insolvency

(1)In section 386 of the Insolvency Act 1986 (preferential debts)—

(a)in subsection (1) after “other deposits” insert “; certain HMRC debts”;

(b)40in subsection (1B) for “or 15BB” substitute “, 15BB or 15D”.

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(2)In Schedule 6 to that Act (preferential debts) after paragraph 15C insert—

“Category 9: Certain HMRC debts

(1)Any amount owed at the relevant date by the debtor to the
Commissioners in respect of—

(a)5value added tax, or

(b)a relevant deduction.

(2)In sub-paragraph (1), the reference to “any amount” is subject to any
regulations under section 96(1) of the Finance Act 2020.

(3)For the purposes of sub-paragraph (1)(b) a deduction is “relevant”
10if—

(a)the debtor is required, by virtue of an enactment, to make the
deduction from a payment made to another person and to
pay an amount to the Commissioners on account of the
deduction,

(b)15the payment to the Commissioners is credited against any
liabilities of the other person, and

(c)the deduction is of a kind specified in regulations under
section 96(3) of the Finance Act 2020.

(4)In this paragraph “the Commissioners” means the Commissioners
20for Her Majesty’s Revenue and Customs.”

(3)In section 129(2) of the Bankruptcy (Scotland) Act 2016 (asp 21) (priority in
distribution: meaning of certain expressions) in the definition of “secondary
preferred debt” for “paragraph 7 or 8” substitute “any of paragraphs 7 to 8A”.

(4)In Part 1 of Schedule 3 to that Act (list of preferred debts) after paragraph 8
25insert—

“Certain HMRC debts

(1)Any amount owed at the relevant date by the debtor to the
Commissioners in respect of—

(a)value added tax, or

(b)30a relevant deduction.

(2)In sub-paragraph (1), the reference to “any amount” is subject to any
regulations under section 96(1) of the Finance Act 2020.

(3)For the purposes of sub-paragraph (1)(b) a deduction is “relevant”
if—

(a)35the debtor is required, by virtue of an enactment, to make the
deduction from a payment made to another person and to
pay an amount to the Commissioners on account of the
deduction,

(b)the payment to the Commissioners is credited against any
40liabilities of the other person, and

(c)the deduction is of a kind specified in regulations under
section 96(3) of the Finance Act 2020.

(4)In this paragraph “the Commissioners” means the Commissioners
for Her Majesty’s Revenue and Customs.”

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(5)In Article 346 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405
(N.I. 19)) (preferential debts)—

(a)in paragraph (1) after “other deposits” insert “; certain HMRC debts”;

(b)in paragraph (1B) for “or 20” substitute “, 20 or 22”.

(6)5In Schedule 4 to that Order (preferential debts) after paragraph 21 insert—

“Category 9: Certain HMRC debts

(1)Any amount owed at the relevant date by the debtor to the
Commissioners in respect of—

(a)value added tax, or

(b)10a relevant deduction.

(2)In sub-paragraph (1), the reference to “any amount” is subject to any
regulations under section 96(1) of the Finance Act 2020.

(3)For the purposes of sub-paragraph (1)(b) a deduction is “relevant”
if—

(a)15the debtor is required, by virtue of an enactment, to make the
deduction from a payment made to another person and to
pay an amount to the Commissioners on account of the
deduction,

(b)the payment to the Commissioners is credited against any
20liabilities of the other person, and

(c)the deduction is of a kind specified in regulations under
section 96(3) of the Finance Act 2020.

(4)In this paragraph “the Commissioners” means the Commissioners
for Her Majesty’s Revenue and Customs.”

(7)25The amendments made by this section do not apply in relation to any case
where the relevant date is before 1 December 2020.

96 HMRC debts: regulations

(1)The Treasury may by regulations provide that only the following amounts are
secondary preferential debts (or, in relation to Scotland, secondary preferred
30debts) for the purpose of a relevant provision—

(a)in the case of amounts owed in respect of value added tax, amounts
referable to such period as is specified in the regulations;

(b)in the case of amounts owed in respect of a relevant deduction,
amounts owed in respect of a deduction from a payment made during
35such period as is specified in the regulations.

(2)In subsection (1) “relevant provision” means—

(a)paragraph 15D(1) of Schedule 6 to the Insolvency Act 1986 (preferential
debts: certain HMRC debts);

(b)paragraph 8A(1) of Schedule 3 to the Bankruptcy (Scotland) Act 2016
40(asp 21) (list of preferred debts: certain HMRC debts);

(c)paragraph 22(1) of Schedule 4 to the Insolvency (Northern Ireland)
Order 1989 (S.I. 1989/2405 (N.I. 19)) (preferential debts: certain HMRC
debts).

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(3)The Treasury may by regulations specify kinds of deductions for the purposes
of—

(a)paragraph 15D(3)(c) of Schedule 6 to the Insolvency Act 1986;

(b)paragraph 8A(3)(c) of Schedule 3 to the Bankruptcy (Scotland) Act 2016
5(asp 21);

(c)paragraph 22(3)(c) of Schedule 4 to the Insolvency (Northern Ireland)
Order 1989 (S.I. 1989/2405 (N.I. 19)).

(4)Regulations under this section may contain transitional or supplementary
provision.

(5)10Regulations under this section—

(a)are to be made by statutory instrument;

(b)are subject to annulment in pursuance of a resolution of the House of
Commons.

Joint and several liability

97 15Joint and several liability of company directors etc

(1)Schedule 12 makes provision for individuals to be jointly and severally liable,
in certain circumstances involving insolvency or potential insolvency, for
amounts payable to the Commissioners for Her Majesty’s Revenue and
Customs by bodies corporate or unincorporate.

(2)20A reference in Schedule 12 to a tax liability of a company does not include—

(a)any tax liability that relates to a period ending before the day on which
this Act is passed;

(b)any tax liability (other than one that relates to a period) arising from an
event or default occurring before that day.

(3)25For the purposes of subsection (2), a tax liability relates to a period if—

(a)the liability arises in respect of a particular tax year, accounting period
or other period, or

(b)the amount of the liability is calculated by reference to a particular
period.

(4)30A reference in paragraph 5 of Schedule 12 to a penalty does not include any
penalty in respect of which the determination to impose the penalty, or (as the
case may be) the commencement of proceedings before the tribunal for the
penalty to be imposed, occurs before the day on which this Act is passed.

General anti-abuse rule

98 35Amendments relating to the operation of the GAAR

Schedule 13 makes—

(a)provision about the procedural requirements and time limits for the
making of adjustments by virtue of section 209 of FA 2013, and

(b)provision amending paragraph 5 of Schedule 43C to that Act.