|
| |
| |
(7) After the definition of “mortgage” insert— | |
““open-ended investment company” means an open-ended investment | |
company within the meaning given by section 236 of the Financial | |
Services and Markets Act 2000 which is incorporated in the United | |
Kingdom;”. | 5 |
(8) This section has effect in relation to transfers of value or other events occurring | |
on or after 16th October 2002. | |
Landfill tax | |
184 Rate of landfill tax | |
In section 42 of the Finance Act 1996 (c. 8) (amount of landfill tax), for the | 10 |
amount specified in subsection (1)(a), and the corresponding amount in | |
subsection (2), substitute— | |
(a) “£14” in relation to taxable disposals made, or treated as made, on or | |
after 1st April 2003 and before 1st April 2004; | |
(b) “£15” in relation to taxable disposals made, or treated as made, on or | 15 |
after 1st April 2004. | |
Climate change levy | |
185 Exemption for fuel used in recycling processes | |
(1) In Schedule 6 to the Finance Act 2000 (c. 17) (climate change levy), after | |
paragraph 18 insert— | 20 |
“Exemption: supply for use in recycling processes | |
18A (1) A supply of a taxable commodity is exempt from the levy if the | |
person to whom the supply is made intends to cause the commodity | |
to be used as fuel in a prescribed recycling process falling within sub- | |
paragraph (2). | 25 |
(2) A recycling process falls within this sub-paragraph if there is another | |
process (“the competing process”) that— | |
(a) is not a recycling process, | |
(b) uses taxable commodities otherwise than as fuel, | |
(c) produces a product of the same kind as one produced by the | 30 |
recycling process, | |
(d) uses a greater amount of energy than the recycling process to | |
produce a given quantity of that product, and | |
(e) involves a lesser charge to levy for a given quantity of that | |
product than would, but for this paragraph, be the case for | 35 |
the recycling process. | |
(3) For the purposes of sub-paragraph (2)(b) taxable commodities are | |
used “otherwise than as fuel” only if the supplies of those | |
commodities to the person using them are exempted from the levy | |
by virtue of paragraph 18. | 40 |
(4) Sub-paragraphs (5) and (6) apply where the recycling process or the | |
competing process, as well as producing a product that is of the same | |
| |
| |
|
| |
| |
kind as one produced by the other process (“the corresponding | |
product”), also produces one or more products that are not | |
(“different products”). | |
(5) If the production of the different products is merely incidental to the | |
production of the corresponding product, the different products | 5 |
shall be treated for the purposes of sub-paragraph (2)(d) and (e) as | |
being of the same kind as the corresponding product. | |
(6) If the production of the different products is not merely incidental to | |
the production of the corresponding product— | |
(a) the amounts of energy referred to in sub-paragraph (2)(d), | 10 |
and the amounts of the charge to levy referred to in sub- | |
paragraph (2)(e), shall be determined on a just and | |
reasonable apportionment; | |
(b) the exemption conferred by sub-paragraph (1) shall be | |
restricted to the proportion of the supply that is the same as | 15 |
the proportion of the energy used by the recycling process to | |
produce the corresponding product (as determined for the | |
purposes of paragraph (a)). | |
(7) In this paragraph “prescribed” means prescribed by regulations | |
made by the Treasury.”. | 20 |
(2) The following amendments to that Schedule are consequential on that made by | |
subsection (1)— | |
(a) in paragraph 14(3A)(a) (use of electricity in an “exemption-retaining” | |
way) for “and 18” substitute “, 18 and 18A”; | |
(b) in paragraph 101(2)(a)(ii) (penalty for incorrect exemption notification) | 25 |
after “18” insert “, 18A”; | |
(c) in paragraph 146(3) (regulations subject to affirmative resolution | |
procedure) after “18(2),” insert “18A,”; | |
(d) in paragraph 147 (interpretation), in the definition of “prescribed”, after | |
“16(3)” insert “, 18A”. | 30 |
186 CHP exemption to be based on current efficiency | |
(1) Schedule 6 to the Finance Act 2000 (c. 17) (climate change levy) is amended as | |
follows. | |
(2) In paragraph 15 (exemption for supplies to combined heat and power | |
stations)— | 35 |
(a) for paragraph (b) of sub-paragraph (4) substitute— | |
“(b) the “efficiency percentage” for a combined heat and | |
power station shall be determined in accordance with | |
regulations under paragraph 149.”; | |
(b) omit sub-paragraph (5). | 40 |
(3) In paragraph 148 (meaning of “combined heat and power station” etc)— | |
(a) in sub-paragraphs (2)(c) and (3)(c), for “complying with sub-paragraph | |
(6) and (so far as applicable)” substitute “complying (so far as | |
applicable) with”; | |
(b) omit sub-paragraph (6) (efficiency percentage to be stated on certificate | 45 |
of full or partial exemption). | |
| |
| |
|
| |
| |
(4) In paragraph 149(1) (determination of efficiency percentages for combined | |
heat and power stations) omit “the percentage that is to be stated in a certificate | |
under paragraph 148 as”. | |
(5) This section has effect in relation to supplies made on or after such day as the | |
Treasury may by order made by statutory instrument appoint. | 5 |
187 Supplies not known to be taxable when made, etc | |
(1) In Schedule 6 to the Finance Act 2000 (c. 17) (climate change levy), paragraph | |
24 (deemed supply: change of circumstances or intentions) is amended as | |
follows. | |
(2) In the heading, for “change of circumstances or intentions” substitute “change of | 10 |
circumstances etc”. | |
(3) For sub-paragraphs (1) and (2) substitute— | |
“(1) This paragraph applies in the following cases. | |
(1A) The first case is where— | |
(a) a supply of a taxable commodity has been made, | 15 |
(b) the supply was not a taxable supply, and | |
(c) there is such a change in circumstances or any person’s | |
intentions that, if the changed circumstances or intentions | |
had existed at the time the supply was made, the supply | |
would have been a taxable supply. | 20 |
(1B) The second case is where— | |
(a) a supply of a taxable commodity has been made, | |
(b) the supply was made on the basis that it was not a taxable | |
supply, and | |
(c) it is later determined that the supply was (to any extent) a | 25 |
taxable supply. | |
(2) This paragraph does not apply where the reason that— | |
(a) the supply was not a taxable supply, or | |
(b) the supply was made on the basis that it was not a taxable | |
supply, | 30 |
is that it was, or was thought to be, exempt from the levy under | |
paragraph 19 or 20A (exemption for supply of electricity produced | |
from renewable sources or in combined heat and power stations) | |
(but see paragraph 20 or 20B).”. | |
(4) In sub-paragraph (3), at the beginning insert “Where this paragraph applies,”. | 35 |
(5) After that sub-paragraph insert— | |
“(3A) Where— | |
(a) had matters been as mentioned in sub-paragraph (1A)(c), | |
only part of the supply would have been a taxable supply, or | |
(b) the determination referred to in sub-paragraph (1B)(c) is that | 40 |
only part of the supply was a taxable supply, | |
the reference in sub-paragraph (3) to the commodity shall be read as | |
a reference to a corresponding part of it.”. | |
(6) In sub-paragraph (5) for “sub-paragraph (1)(c)” substitute “sub-paragraph | |
(1A)(c)”. | 45 |
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| |
|
| |
| |
(7) In paragraph 34(3) of that Act (time when deemed supply under paragraph 24 | |
treated as made) at the end insert “or, as the case may be, upon the later | |
determination”. | |
(8) This section has effect in relation to supplies made on or after such day as the | |
Treasury may by order made by statutory instrument appoint. | 5 |
188 Deemed supplies | |
(1) Schedule 6 to the Finance Act 2000 (c. 17) (climate change levy) is amended as | |
follows. | |
(2) In paragraph 5(3) (levy chargeable on deemed supply of electricity) for | |
“paragraph 23(3)” substitute “paragraph 20(6)(a), 20B(6)(a), 23(3) or 24”. | 10 |
(3) In paragraph 6 (supplies of gas)— | |
(a) after sub-paragraph (2) insert— | |
“(2A) Levy is chargeable on a supply of gas that is deemed to be | |
made under paragraph 24.”; | |
(b) in sub-paragraph (3) for “sub-paragraphs (1) and (2)” substitute “sub- | 15 |
paragraph (1), (2) or (2A)”. | |
(4) Subsection (2) has effect in relation to supplies deemed to be made on or after | |
31st March 2003, and subsection (3) in relation to supplies deemed to be made | |
on or after the day on which this Act is passed. | |
189 Amendments about registration, payment etc | 20 |
(1) Schedule 6 to the Finance Act 2000 (climate change levy) is amended as follows. | |
(2) In paragraph 41 (returns and payment of levy)— | |
(a) for paragraph (a) of sub-paragraph (1) (liability to account for levy by | |
reference to accounting periods) substitute— | |
“(a) for persons liable to account for levy to do so— | 25 |
(i) by reference to such periods (“accounting | |
periods”) as may be determined by or under | |
the regulations, or | |
(ii) in such other way as may be so determined;”; | |
(b) in sub-paragraph (1)(c) (liability to pay) omit “for any period”; | 30 |
(c) after sub-paragraph (2) insert— | |
“(2A) Paragraph 91(5) provides for the application of Part 7 of this | |
Schedule (recovery and interest) in relation to cases where, | |
by virtue of regulations under sub-paragraph (1)(a)(ii) above, | |
a person is liable to account for levy otherwise than by | 35 |
reference to accounting periods. | |
(2B) Regulations under this paragraph may provide for the | |
application of any provision of this Schedule in relation to | |
such cases.”. | |
(3) In paragraph 53 (requirement to be registered), after sub-paragraph (3) insert— | 40 |
“(4) Regulations made by the Commissioners may provide that, in such | |
cases or circumstances and subject to such conditions or | |
requirements as may be prescribed in the regulations, the | |
| |
| |
|
| |
| |
Commissioners may exempt a person from the requirement to be | |
registered.”. | |
(4) In paragraph 62(2)(b) (provision in regulations about bringing tax credit into | |
account) for “levy due from him for such accounting period or periods” | |
substitute “such levy due from him”. | 5 |
(5) In paragraph 78 (assessments of amounts of levy due), after sub-paragraph (1) | |
insert— | |
“(1A) Where it appears to the Commissioners— | |
(a) that any levy for which a person is liable to account otherwise | |
than by reference to an accounting period has become due, | 10 |
and | |
(b) that there has been a default by that person that falls within | |
sub-paragraph (2), | |
they may assess the amount of that levy to the best of their | |
judgement and notify it to him.”. | 15 |
(6) In paragraph 91 (interpretation etc of Part 7) at the end insert— | |
“(5) In relation to cases where, by virtue of regulations under paragraph | |
41(1)(a)(ii), a person is liable to account for levy otherwise than by | |
reference to accounting periods, this Part of this Schedule shall have | |
effect as if— | 20 |
(a) references to levy due for “an” or “any” accounting period | |
were references simply to levy due; | |
(b) references to levy due for a specified accounting period were | |
references to the levy in question; | |
(c) references to an assessment for a specified accounting period | 25 |
were references to an assessment in respect of the levy in | |
question; | |
(d) any time limit framed by reference to the end of the | |
accounting period for which levy is due were framed by | |
reference to the date on which payment of the levy is due; | 30 |
(e) references to the making of a return for an accounting period | |
were references to the payment of the levy in question; | |
(f) references to the amount shown in such a return were | |
references to the amount of levy paid; | |
(g) paragraph 88(8) and (9) were omitted.”. | 35 |
(7) In paragraph 93(4) (criminal penalty for false return)— | |
(a) in paragraph (a) after “return” insert “or other notification”; | |
(b) in paragraph (b), and in the words after that paragraph, after “return” | |
insert “or notification”. | |
(8) In paragraph 100(1) (civil penalty for misdeclaration)— | 40 |
(a) omit “for an accounting period”; | |
(b) in paragraph (a) after “return” insert “or other notification”. | |
(9) In paragraph 125(1) (obligation to keep records) for “persons who are, or are | |
required to be, registered” substitute “persons who— | |
(a) are registered, | 45 |
(b) are required to be registered, or | |
| |
| |
|
| |
| |
(c) are exempted from the requirement to be registered by | |
regulations under paragraph 53(4)”. | |
(10) In paragraph 135(1)(c) (Commissioners’ certificate as evidence of non-payment | |
of levy shown as due in a return) after “return” insert “or other notification”. | |
190 Electricity from renewable sources etc | 5 |
(1) Schedule 6 to the Finance Act 2000 (c. 17) (climate change levy) is amended as | |
follows. | |
(2) In paragraph 20 (exemption under paragraph 19: averaging periods) for sub- | |
paragraphs (6) to (8) substitute— | |
“(6) If the total mentioned in sub-paragraph (3)(b) exceeds that | 10 |
mentioned in sub-paragraph (3)(a), then— | |
(a) in a case where, at the time when the balancing period ends, | |
an averaging period also ends because of sub-paragraph | |
(2)(f) or (g), the supplier is for the purposes of this Schedule | |
deemed to make at that time a taxable supply of a quantity of | 15 |
electricity equal to the excess; | |
(b) in any other case, a balancing debit equal to the excess is | |
carried forward to the next balancing period.”. | |
(3) In paragraph 20B (exemption under paragraph 20A: averaging periods) for | |
sub-paragraphs (6) to (8) substitute— | 20 |
“(6) If the total mentioned in sub-paragraph (3)(b) exceeds that | |
mentioned in sub-paragraph (3)(a), then— | |
(a) in a case where, at the time when the balancing period ends, | |
an averaging period also ends because of sub-paragraph | |
(2)(f) or (g), the supplier is for the purposes of this Schedule | 25 |
deemed to make at that time a taxable supply of a quantity of | |
electricity equal to the excess; | |
(b) in any other case, a balancing debit equal to the excess is | |
carried forward to the next balancing period.”. | |
(4) The amendment made by subsection (2) has effect where the end of the | 30 |
balancing period referred to in paragraph (a) of the sub-paragraph (6) | |
substituted by that subsection falls on or after 31st March 2003. | |
(5) The amendment made by subsection (3) has effect where the end of the | |
balancing period referred to in paragraph (a) of the sub-paragraph (6) | |
substituted by that subsection falls on or after 1st April 2003. | 35 |
Insurance premium tax | |
191 Higher rate of tax: divided companies | |
(1) In Schedule 6A to the Finance Act 1994 (c. 9) (insurance premium tax: | |
premiums liable to tax at higher rate), insert after paragraph 3— | |
“Insurance provided by divided company | 40 |
3A (1) A premium under a taxable insurance contract relating to a motor car | |
or motor cycle also falls within paragraph 2 above if— | |
| |
| |
|
| |
| |
(a) the insurance to be provided under the contract is provided | |
by a divided company, and | |
(b) any division of that company would, if it were a separate | |
company, be a person connected with a supplier of motor | |
cars or motor cycles. | 5 |
(2) A premium under a taxable insurance contract relating to relevant | |
goods also falls within paragraph 3 above if— | |
(a) the insurance to be provided under the contract is provided | |
by a divided company, and | |
(b) any division of that company would, if it were a separate | 10 |
company, be a person connected with a supplier of relevant | |
goods. | |
(3) Sub-paragraph (1) or (2) above does not apply if the insurance is | |
provided to the insured free of charge. | |
(4) A premium falls within paragraph 2 above by virtue of this | 15 |
paragraph only to the extent that it is attributable to cover for a risk | |
which relates to a motor car or motor cycle supplied by a supplier of | |
motor cars or motor cycles with whom the division in question | |
would, if it were a separate company, be connected. | |
(5) A premium falls within paragraph 3 above by virtue of this | 20 |
paragraph only to the extent that it is attributable to cover for a risk | |
which relates to relevant goods supplied by a supplier of relevant | |
goods with whom the division would, if it were a separate company, | |
be connected. | |
(6) For the purposes of this paragraph— | 25 |
(a) a company is a “divided company” if under the law under | |
which the company is formed, under the company’s | |
constitution or under arrangements entered into by or in | |
relation to the company— | |
(i) some or all of the assets of the company are available | 30 |
primarily, or only, to meet particular liabilities of the | |
company, | |
(ii) some or all of the members of the company, and some | |
or all of its creditors, have rights primarily, or only, in | |
relation to particular assets of the company; | 35 |
(b) a “division” of such a company means an identifiable part of | |
it (by whatever name known) that carries on distinct business | |
activities and to which particular assets and liabilities of the | |
company are primarily or wholly attributable. | |
(7) In this paragraph “provided to the insured free of charge” has the | 40 |
meaning given by sub-paragraph (5) of paragraph 2 or 3 above. | |
In determining for this purpose whether a divided company by | |
whom insurance is provided is a person falling within sub- | |
paragraph (2) of paragraph 2 or 3 above, the company shall be | |
treated as connected with any person with whom a division of that | 45 |
company would be connected if it were a separate company. | |
(8) Other expressions defined for the purposes of paragraph 2 or 3 above | |
have the same meaning in this paragraph.”. | |
(2) Subsection (1) applies in relation to a premium that falls to be regarded for the | |
purposes of Part 3 of the Finance Act 1994 (c. 9) (insurance premium tax) as | 50 |
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