Finance Bill

Finance Bill - continued	House of Commons
PART I, WINE OR MADE-WINE OF A STRENGTH NOT EXCEEDING 22 PER CENT. - continued

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Air passenger duty

Rates of duty.

18. - (1) Section 30 of the Finance Act 1994 is amended as follows.

(2) In subsection (1) (basis on which duty is charged) for the words from "appropriate" to the end substitute "determined in accordance with subsections (2) to (4) below."

(3) In subsection (2) (rate where destination is in an EEA State etc)-

(a) for "The rate is £10 if that place" substitute "If the place where the passenger's journey ends", and

(b) after paragraph (b) add-

" the rate shall be determined in accordance with subsection (3A) below.".

(4) After subsection (3) insert-

	"(3A) In a case falling within subsection (2) above-
	(a) if the passenger's agreement for carriage provides for standard class travel in relation to every flight on his journey, the rate is £5;
	(b) in any other case, the rate is £10.".

(5) For subsection (4) (rate where destination is not in an EEA State etc) substitute-

	"(4) In a case not falling within subsection (2) above-
	(a) if the passenger's agreement for carriage provides for standard class travel in relation to every flight on his journey, the rate is £20;
	(b) in any other case, the rate is £40.".

(6) At the end of the section add-

	"(10) In this section "standard class travel", in relation to carriage on an aircraft, means-
	(a) in the case of an aircraft on which only one class of travel is available, that class of travel;
	(b) in any other case, the lowest class of travel available on the aircraft.".

(7) In consequence of the provision made by the preceding provisions of this section, in section 39 of the Finance Act 1994 (schemes for simplifying operation of reliefs)-

(a) in subsection (4)(b), for "at the rate mentioned in section 30(2) above" substitute-

	"(i) at the rate mentioned in paragraph (a) of section 30(3A) above, and
	(ii) at the rate mentioned in paragraph (b) of that provision";

(b) in subsection (4B)(c), for "at the rate mentioned in section 30(2) above" substitute-

	"(i) at the rate mentioned in paragraph (a) of section 30(3A) above, and
	(ii) at the rate mentioned in paragraph (b) of that provision";

	"(i) on the carriage of each of those falling within paragraph (a) of section 30(4) above at the rate mentioned in that paragraph, and
	(ii) on the carriage of each of those falling within paragraph (b) of section 30(4) above at the rate mentioned in that paragraph"; and

(d) in subsection (8A)(c), for the words from "on the carriage" to the end substitute-

	"(i) on the carriage of each of those falling within paragraph (a) of section 30(4) above at the rate mentioned in that paragraph, and
	(ii) on the carriage of each of those falling within paragraph (b) of section 30(4) above at the rate mentioned in that paragraph".

(8) This section applies to any carriage of a passenger on an aircraft which begins on or after 1st April 2001.

Changes in exemption from duty.

19. - (1) Section 31 of the Finance Act 1994 is amended as follows.

(2) Omit subsections (1) and (2) (exemption in relation to passengers making return journeys within the United Kingdom).

(3) After subsection (4A) insert-

	"(4B) A passenger is not a chargeable passenger in relation to a flight if under his agreement for carriage (whether or not it is evidenced by a ticket) the flight is to depart from an airport which is in a region of the United Kingdom designated by order.
	(4C) An order may be made for the purposes of subsection (4B) above in respect of any region which has a population density of not more than 12.5 persons per square kilometre.
	(4D) In subsections (4B) and (4C) above, references to a region are references to an area which is determined by the Treasury to constitute a region for the purposes of those subsections.".

(4) Omit subsection (6) (provision by regulations for subsection (1) to have effect in relation to journeys begun in the Isle of Man).

(5) In consequence of the provision made by subsection (2) above, in section 43 of the Finance Act 1994 (interpretation)-

(a) in subsection (2) (meaning of "journey" etc), omit "Subject to subsection (3) below", and

(b) omit subsection (3) (interpretation of references to a return ticket).

(6) This section applies to any carriage of a passenger on an aircraft which begins on or after 1st April 2001.

Vehicle excise duty

Threshold for reduced general rate.

20. - (1) In paragraph 1 of Schedule 1 to the Vehicle Excise and Registration Act 1994 (rate of duty applicable where no other rate specified), in sub-paragraphs (2) and (2A) for "1,100 cubic centimetres" (the reduced rate threshold) substitute "1,200 cubic centimetres".

This amendment applies to licences issued on or after 1st March 2001.

(2) Refunds shall be made by the Secretary of State, in accordance with the following provisions of this section, in respect of any vehicle having an engine with a cylinder capacity exceeding 1,100 cubic centimetres, but not exceeding 1,200 cubic centimetres, in respect of which a vehicle licence is in force on 28th February 2001.

(3) A refund shall be made in respect of-

(a) any licence in force on 28th February 2001;

(b) if there is a 6 month licence in force on that date, any preceding licence that-

(i) was in force in respect of the vehicle for any part of the period beginning with 1st March 2000 and ending with 28th February 2001, and

(ii) did not expire as a result of surrender.

(4) The amount of the refund is-

(a) in the case of a licence in force on 28th February 2001-

(i) £55 for a 12 month licence, and

(ii) £27.50 for a 6 month licence;

(b) in the case of a licence that has ceased to be in force before that date, £27.50.

(5) The person entitled to the refund is-

(a) in the case of a licence in force on 28th February 2001, the person then registered as the keeper of the vehicle;

(b) in the case of a licence that has ceased to be in force before that date, the person who was so registered when the licence was issued.

(6) A refund shall only be made if an application is made for it in such form, and containing such particulars and supported by such documents, as the Secretary of State may require.

(7) The Secretary of State shall give notice in writing to any person appearing to him to be entitled to a refund-

(a) informing him that he appears to be entitled to a refund,

(b) enclosing an application form, and

(8) An application for, or the making of, a refund under this section does not affect the validity of any licence in force on 28th February 2001; but for the purposes of section 19 of the Vehicle Excise and Registration Act 1994 (surrender of licences) as it applies to the surrender of such a licence on or after 1st March 2001, the annual rate of duty chargeable on the licence shall be taken to be that applicable by virtue of subsection (1) above to a licence issued on or after that date.

(9) Section 45 of that Act (offence of false or misleading declaration) applies to a declaration in connection with an application for a refund under this section as it applies to a declaration in connection with an application for a vehicle licence.

Increase in general rate.

21. - (1) In paragraph 1 of Schedule 1 to the Vehicle Excise and Registration Act 1994 (rate of duty applicable where no other rate specified)-

(a) in sub-paragraph (2) (the standard rate), for "£155" substitute "£160"; and

(b) in sub-paragraph (2A) (the reduced rate), for "£100" substitute "£105".

(2) This section applies to licences issued on or after 1st March 2001.

Rates of duty for new cars and vans.

22. Schedule 3 to this Act has effect with respect to vehicle excise duty on light passenger vehicles and light goods vehicles first registered on or after 1st March 2001.

Enforcement provisions for graduated rates.

23. Schedule 4 to this Act has effect with respect to vehicle licences for vehicles in respect of which vehicle excise duty is chargeable at different rates.

Prepared 30 June 2000