Finance Bill (HL Bill 123)

Part 3 continued    

(4)In the sentence immediately following the Table in that paragraph, for
paragraphs (a) and (b) substitute—

“(a)in column (3), in the last two rows, “320” were substituted for
20“555” and “570”, and

(b)in column (4), in the last two rows, “330” were substituted for
“565” and “580”.”

(5)In paragraph 1GC (graduated rates for first licence for light passenger vehicles
registered on or after 1 April 2017), for Table 1 (vehicles other than higher rate
25diesel vehicles) substitute—

(6)15In that paragraph, for Table 2 (higher rate diesel vehicles) substitute—

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

(a)10in paragraph (a) (reduced rate), for “£135” substitute “£140”, and

(b)in 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)15in paragraph (b), for “£450” substitute “£475”.

(9)In 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
20exceeding 150cc but not exceeding 400cc), for “£43” substitute “£44”,

(b)in 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)25The amendments made by this section have effect in relation to licences taken
out on or after 1 April 2020.

84 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)30omit “and” at the end of paragraph (a),

(b)in paragraph (b)—

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

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

(iii)35after “EU certificate of conformity” insert “or UK approval
certificate”, 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
40April 2020, ignore any values specified in an EU

certificate 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
5out on or after 1 April 2020.

85 Electric 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
10price exceeds £40,000 etc).

(3)As 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)15in sub-paragraph (1) omit “(2) or”, and

(b)omit 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
20£40,000)—

(a)omit 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
25“and (3)(a)”.

(8)The 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.

86 Motor caravans

(1)In VERA 1994, in Part 1AA of Schedule 1 (annual rates of duty: light passenger
30vehicles registered on or after 1 April 2017), paragraph 1GA is amended as
follows.

(2)After 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
35or territory outside the United Kingdom, on or after 12 March 2020.”

(3)After sub-paragraph (2) insert—

“(2A)For 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
40Annex II to Directive 2007/46/EC.”

87 Exemption in respect of medical courier vehicles

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

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

(3)5After paragraph 6 insert—

“6A (1) A vehicle is an exempt vehicle if—

(a)it 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
10both sides, and

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

(2)In this paragraph—

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

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

  (a)

  blood;

  (b)

  20medicines and other medical supplies;

  (c)

  items relating to people who are undergoing medical
  treatment;

• “item” includes any substance.”

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

88 25HGV road user levy

(1)Section 5(2) of the HGV Road User Levy Act 2013 (HGV road user levy charged
for all periods for which a UK heavy goods vehicle is charged to vehicle excise
duty) does not apply where the period for which a UK heavy goods vehicle is
charged to vehicle excise duty is a period that begins in the exempt period.

(2)30Section 6(2) of the 2013 Act (HGV road user levy charged in respect of non-UK
heavy goods vehicle for each day on which the vehicle is used or kept on a road
to which the Act applies) does not apply in respect of any day in the exempt
period.

(3)The exempt period is the period of 12 months beginning with 1 August 2020.

(4)35Section 7 of the 2013 Act (rebate of levy) has effect as if, after subsection (2A),
there were inserted—

“(2B)A rebate entitlement also arises where HGV road user levy has been
paid in respect of a non-UK heavy goods vehicle in accordance with
section 6(2) in respect of any part of the exempt period within the
40meaning of section 88(3) of the Finance Act 2020.”

Hydrocarbon oil duties

89 Rebated fuel: private pleasure craft

Schedule 11 makes provision about the use of rebated fuel in private pleasure
craft.

5Air passenger duty

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

(2)10The amendments made by this section have effect in relation to the carriage of
passengers beginning on or after 1 April 2021.

Gaming duty

91 Amounts of gross gaming yield charged to gaming duty

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

15“Table

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

Environmental taxes

92 25Rates 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—

(3)In sub-paragraph (1)—

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

(b)15after that paragraph insert—

“(bb)if the supply is a reduced-rate of supply of any
petroleum 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
20which paragraph (a) applies;”, and

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

(4)In 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—

• 25“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;
  and 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.

93 30Rates of climate change levy from 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—

(3)10In sub-paragraph (1)(c), as amended by section 92(3)(c), for “19” substitute
“17”.

(4)In consequence of the amendment made by subsection (3), in the definition of
“r” in the Notes to paragraph 2 of Schedule 1 to the Climate Change Levy
(General) Regulations 2001, as amended by section 92(4), for “0.81” substitute
15“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.

94 Rates of landfill tax

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

(2)20In 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)for “£91.35” substitute “£94.15”, and

(b)for “£2.90” substitute “£3”.

(4)25The amendments made by this section have effect in relation to disposals made
(or treated as made) on or after 1 April 2020.

95 Carbon emissions tax

Schedule 12 makes provision about carbon emissions tax.

96 Charge for allocating allowances under emissions reduction trading scheme

(1)30The 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)for persons other than persons to whom a trading scheme applies to be
allocated emissions allowances in return for payment;

(b)35as 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)for 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
due under the regulations;

(g)5for 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
penalties (including specifying the person, court or tribunal to hear and
10determine 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)Schemes under subsection (3) may in particular include provision about—

(a)15who 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)A statutory instrument containing the first regulations under this section may
20not 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
(unless a draft of the instrument has been laid before, and approved by a
25resolution 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;

• “trading scheme” means a trading scheme dealt with under Part 1 of that
  30Schedule (schemes limiting activities relating to emissions of
  greenhouse gas).

Import duty

97 International trade disputes

In section 15(1)(b) of TCTA 2018 (import duty: international disputes etc), for
35“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 Miscellaneous and final

Insolvency

98 HMRC debts: priority on insolvency

(1)5In section 386 of the Insolvency Act 1986 (preferential debts)—

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

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

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

“Category 9: Certain HMRC debts

15D (1) 10Any amount owed at the relevant date by the debtor to the
Commissioners in respect of—

(a)value added tax, or

(b)a relevant deduction.

(2)In sub-paragraph (1), the reference to “any amount” is subject to any
15regulations under section 99(1) of the Finance Act 2020.

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

(a)the debtor is required, by virtue of an enactment, to make the
deduction from a payment made to another person and to
20pay an amount to the Commissioners on account of the
deduction,

(b)the 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
25section 99(3) of the Finance Act 2020.

(4)In this paragraph “the Commissioners” means the Commissioners
for 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
30preferred 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
insert—

“Certain HMRC debts

8A (1) Any amount owed at the relevant date by the debtor to the
35Commissioners in respect of—

(a)value added tax, or

(b)a relevant deduction.

(2)In sub-paragraph (1), the reference to “any amount” is subject to any
regulations under section 99(1) of the Finance Act 2020.