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| | CO2 emissions figure | Rate | | | | | (1) | (2) | (3) | (4) | (5) | | | | | Exceeding | Not | Reduced | Standard | Premium | | | | | | exceeding | rate | Rate | rate | | | | | g/km | g/km | £ | £ | £ | | 5 | | | — | 100 | 55 | 65 | 75 | | | | | 100 | 120 | 65 | 75 | 85 | | | | | 120 | 150 | 95 | 105 | 115 | | | | | 150 | 165 | 115 | 125 | 135 | | | | | 165 | 185 | 135 | 145 | 155 | | 10 | | | 185 | — | 155 | 160 | 165 | | |
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(3) In paragraph 1J of that Schedule (rates of duty applicable to light goods | |
vehicles first registered on or after 1st March 2001)— | |
(a) in paragraph (a) (vehicle which is not a lower-emission van) for “£160” | |
substitute “£165”; | 15 |
(b) in paragraph (b) (vehicle which is a lower-emission van) for “£105” | |
substitute “£110”. | |
(4) This section applies to any licence taken out on or after 17th April 2003 for a | |
period beginning on or after 1st May 2003. | |
15 Disclosure for exemptions: Northern Ireland | 20 |
In section 22ZA of the Vehicle Excise and Registration Act 1994 (c. 22) (nil | |
licences for vehicles for disabled persons: disclosure of information) in | |
subsection (1)(a) (which provides that the section applies to certain | |
information held by the Secretary of State or a person providing services to | |
him) in sub-paragraphs (i) and (ii), after “the Secretary of State” insert “or a | 25 |
Northern Ireland department”. | |
16 Duty at higher rate: exception for tractive units | |
(1) After section 15 of the Vehicle Excise and Registration Act 1994 insert— | |
“15A Exception for tractive units from charge at higher rate | |
(1) Where— | 30 |
(a) a vehicle licence has been taken out for a tractive unit, and | |
(b) the licence was taken out at a rate of vehicle excise duty | |
applicable to a tractive unit which is to be used with semi- | |
trailers with a minimum number of axles, | |
duty at a higher rate does not become chargeable under section 15 by | 35 |
reason only that while the licence is in force the tractive unit is used | |
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with a semi-trailer with fewer axles than that minimum number, if the | |
condition in subsection (2) is satisfied. | |
(2) The condition is that the rate of duty at which the licence was taken out | |
is equal to or exceeds the rate which would have been applicable if the | |
revenue weight of the tractive unit had been a weight equal to the | 5 |
actual laden weight, at the time of the use, of the articulated vehicle | |
consisting of the tractive unit and the semi-trailer.”. | |
(2) Section 16 of that Act (which makes provision, in the case of tractive units, for | |
exemptions from the charge to vehicle excise duty at a higher rate on a basis | |
different from that set out in new section 15A) shall cease to have effect. | 10 |
(3) This section has effect in relation to the use of a tractive unit on or after 9th | |
April 2003. | |
Part 2 | |
Value added tax | |
17 Requirement of evidence or security | 15 |
(1) The Value Added Tax Act 1994 (c. 23) is amended as follows. | |
(2) In section 24(6)(a) (regulations about input tax etc: requirement of document- | |
ary evidence) after “documents” insert “or other information”. | |
(3) In paragraph 4 of Schedule 11 (power to require security and production of | |
documents) for sub-paragraph (1) substitute— | 20 |
“(1) The Commissioners may, as a condition of allowing or repaying | |
input tax to any person, require the production of such evidence | |
relating to VAT as they may specify. | |
(1A) If they think it necessary for the protection of the revenue, the | |
Commissioners may require, as a condition of making any VAT | 25 |
credit, the giving of such security for the amount of the payment as | |
appears to them appropriate.”. | |
(4) For sub-paragraph (2) of that paragraph substitute— | |
“(2) If they think it necessary for the protection of the revenue, the | |
Commissioners may require a taxable person, as a condition of his | 30 |
supplying or being supplied with goods or services under a taxable | |
supply, to give security, or further security, for the payment of any | |
VAT that is or may become due from— | |
(a) the taxable person, or | |
(b) any person by or to whom relevant goods or services are | 35 |
supplied. | |
(3) In sub-paragraph (2) above “relevant goods or services” means | |
goods or services supplied by or to the taxable person. | |
(4) Security under sub-paragraph (2) above shall be of such amount, and | |
shall be given in such manner, as the Commissioners may determine. | 40 |
(5) The powers conferred on the Commissioners by sub-paragraph (2) | |
above are without prejudice to their powers under section 48(7).”. | |
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(5) In section 72(11) (penalty for supplying goods in contravention of paragraph | |
4(2) of Schedule 11) after “supplies” insert “or is supplied with”. | |
(6) In section 83(l) (right of appeal against requirement of security under | |
paragraph 4(2) of Schedule 11 etc) for “paragraph 4(2)” substitute “paragraph | |
4(1A) or (2)”. | 5 |
(7) In section 84 (further provisions relating to appeals) after subsection (4D) | |
insert— | |
“(4E) Where an appeal is brought against a requirement imposed under | |
paragraph 4(2)(b) of Schedule 11 that a person give security, the | |
tribunal shall allow the appeal unless the Commissioners satisfy the | 10 |
tribunal that— | |
(a) there has been an evasion of, or an attempt to evade, VAT in | |
relation to goods or services supplied to or by that person, or | |
(b) it is likely, or without the requirement for security it is likely, | |
that VAT in relation to such goods or services will be evaded. | 15 |
(4F) A reference in subsection (4E) above to evading VAT includes a | |
reference to obtaining a VAT credit that is not due or a VAT credit in | |
excess of what is due.”. | |
(8) This section shall be deemed to have come into force on 10th April 2003. | |
18 Joint and several liability for unpaid VAT of another trader | 20 |
(1) In Part 4 of the Value Added Tax Act 1994 (c. 23) (administration, collection | |
and enforcement), after section 77 insert— | |
“Liability for unpaid VAT of another | |
77A Joint and several liability of traders in supply chain where tax unpaid | |
(1) This section applies to goods of any of the following descriptions— | 25 |
(a) telephones and any other equipment, including parts and | |
accessories, made or adapted for use in connection with | |
telephones or telecommunication; | |
(b) computers and any other equipment, including parts, | |
accessories and software, made or adapted for use in connection | 30 |
with computers or computer systems. | |
(2) Where— | |
(a) a taxable supply of goods to which this section applies has been | |
made to a taxable person, and | |
(b) at the time of the supply the person knew or had reasonable | 35 |
grounds to suspect that some or all of the VAT payable in | |
respect of that supply, or on any previous or subsequent supply | |
of those goods, would go unpaid, | |
the Commissioners may serve on him a notice specifying the amount of | |
the VAT so payable that is unpaid, and stating the effect of the notice. | 40 |
(3) The effect of a notice under this section is that— | |
(a) the person served with the notice, and | |
(b) the person liable, apart from this section, for the amount | |
specified in the notice, | |
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are jointly and severally liable to the Commissioners for that amount. | |
(4) For the purposes of subsection (2) above the amount of VAT that is | |
payable in respect of a supply is the lesser of— | |
(a) the amount chargeable on the supply, and | |
(b) the amount shown as due on the supplier’s return for the | 5 |
prescribed accounting period in question (if he has made one) | |
together with any amount assessed as due from him for that | |
period (subject to any appeal by him). | |
(5) The reference in subsection (4)(b) above to assessing an amount as due | |
from a person includes a reference to the case where, because it is | 10 |
impracticable to do so, the amount is not notified to him. | |
(6) For the purposes of subsection (2) above, a person shall be presumed to | |
have reasonable grounds for suspecting matters to be as mentioned in | |
paragraph (b) of that subsection if the price payable by him for the | |
goods in question— | 15 |
(a) was less than the lowest price that might reasonably be | |
expected to be payable for them on the open market, or | |
(b) was less than the price payable on any previous supply of those | |
goods. | |
(7) The presumption provided for by subsection (6) above is rebuttable on | 20 |
proof that the low price payable for the goods was due to circumstances | |
unconnected with failure to pay VAT. | |
(8) Subsection (6) above is without prejudice to any other way of | |
establishing reasonable grounds for suspicion. | |
(9) The Treasury may by order amend subsection (1) above; and any such | 25 |
order may make such incidental, supplemental, consequential or | |
transitional provision as the Treasury think fit. | |
(10) For the purposes of this section— | |
(a) “goods” includes services; | |
(b) an amount of VAT counts as unpaid only to the extent that it | 30 |
exceeds the amount of any refund due.”. | |
(2) In section 83 of that Act (appeals) after paragraph (r) insert— | |
“(ra) any liability arising by virtue of section 77A;”. | |
(3) This section shall be deemed to have come into force on 10th April 2003. | |
19 Face-value vouchers | 35 |
Schedule 1 to this Act (VAT: face-value vouchers) has effect. | |
20 Supplies arising from prior grant of fee simple | |
(1) In section 96 of the Value Added Tax Act 1994 (c. 23) (interpretative | |
provisions), after subsection (10A) (time for determining status of supplies | |
arising from prior grant of interest etc) insert— | 40 |
“(10B) Notwithstanding subsection (10A) above— | |
(a) item 1 of Group 1 of Schedule 9 does not make exempt any | |
supply that arises for the purposes of this Act from the prior | |
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grant of a fee simple falling within paragraph (a) of that item; | |
and | |
(b) that paragraph does not prevent the exemption of a supply that | |
arises for the purposes of this Act from the prior grant of a fee | |
simple not falling within that paragraph.”. | 5 |
(2) This section applies in relation to any supply that arises for the purposes of the | |
Value Added Tax Act 1994 (c. 23) from the prior grant of a fee simple made on | |
or after 9th April 2003. | |
21 Business gifts | |
(1) In Schedule 4 to the Value Added Tax Act 1994 (matters to be treated as supply | 10 |
of goods or services), paragraph 5 (business gifts etc) is amended as follows. | |
(2) In sub-paragraph (2) (cases where sub-paragraph (1) does not apply), for | |
paragraph (a) substitute— | |
“(a) a business gift the cost of which, together with the cost of any | |
other business gifts made to the same person in the same | 15 |
year, was not more than £50.”. | |
(3) After that sub-paragraph insert— | |
“(2ZA) In sub-paragraph (2) above— | |
“business gift” means a gift of goods that is made in the course | |
or furtherance of the business in question; | 20 |
“cost”, in relation to a gift of goods, means the cost to the donor | |
of acquiring or, as the case may be, producing the goods; | |
“the same year”, in relation to a gift, means any period of | |
twelve months that includes the day on which the gift is | |
made.”. | 25 |
(4) This section applies in relation to gifts made on or after 1st October 2003. | |
22 Non-business use of business property | |
(1) In paragraph 5 of Schedule 4 to the Value Added Tax Act 1994 (matters to be | |
treated as supply of goods or services), after sub-paragraph (4) (non-business | |
use of business asset treated as supply of services) insert— | 30 |
“(4A) Notwithstanding paragraph 9(1) below, sub-paragraph (4) above | |
does not apply to— | |
(a) any interest in land, | |
(b) any building or part of a building, | |
(c) any civil engineering work or part of such a work, or | 35 |
(d) any goods incorporated or to be incorporated in a building or | |
civil engineering work (whether by being installed as fixtures | |
or fittings or otherwise).”. | |
(2) This section shall be deemed to have come into force on 9th April 2003. | |
(3) This section does not apply in relation to any asset in respect of which the | 40 |
person in question or any of his predecessors became entitled before that date | |
to a credit or repayment as mentioned in paragraph 5(5)(a) or 5(5)(b) of | |
Schedule 4 to the Value Added Tax Act 1994. | |
(4) In subsection (3)— | |
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(a) “the person in question” means the person carrying on the business | |
referred to in sub-paragraph (4) of paragraph 5 of that Schedule; | |
(b) “predecessor” has the same meaning as in that paragraph; | |
(c) the reference to an “asset” is to anything falling within any of | |
paragraphs (a) to (d) of the sub-paragraph (4A) inserted into that | 5 |
paragraph by subsection (1). | |
23 Supply of electronic services in member States: special accounting scheme | |
(1) Schedule 2 to this Act (scheme enabling persons who supply certain electronic | |
services in any member State, but who are not established in a member State, | |
to account for and pay VAT in the United Kingdom on those supplies) has | 10 |
effect. | |
(2) The amendments made by that Schedule have effect in relation to qualifying | |
supplies made on or after 1st July 2003. | |
| |
Part 3 | 15 |
Taxes and duties on importation and exportation: penalties | |
Preliminary | |
24 Introductory | |
(1) This Part makes provision for and in connection with the imposition of liability | |
to a penalty where a person— | 20 |
(a) engages in any conduct for the purpose of evading any relevant tax or | |
duty, or | |
(b) engages in any conduct by which he contravenes a duty, obligation, | |
requirement or condition imposed by or under legislation relating to | |
any relevant tax or duty. | 25 |
(2) For the purposes of this Part “relevant tax or duty” means any of the | |
following— | |
(a) customs duty; | |
(b) Community export duty; | |
(c) Community import duty; | 30 |
(d) import VAT; | |
(e) customs duty of a preferential tariff country. | |
(3) In this Part— | |
“appeal tribunal” means a VAT and duties tribunal; | |
“the Commissioners” means the Commissioners of Customs and Excise; | 35 |
“the Community Customs Code” means Council Regulation 2913/92/ | |
EEC establishing the Community Customs Code; | |
“Community export duty” means any of the duties, charges or levies | |
which are export duties within the meaning of the Community | |
Customs Code (as at 9th April 2003, see the definition of “export duties” | 40 |
in Article 4(11) of that Code); | |
“Community import duty” means any of the duties, charges or levies | |
which are import duties within the meaning of the Community | |
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Customs Code (as at 9th April 2003, see the definition of “import | |
duties” in Article 4(10) of that Code); | |
“contravene” includes fail to comply with; | |
“customs duty of a preferential tariff country” includes a reference to any | |
charge imposed by a preferential tariff country and having an | 5 |
equivalent effect to customs duty payable on the importation of goods | |
into the territory of that country; | |
“demand notice” means a demand notice within the meaning of section | |
30; | |
“import VAT” means value added tax chargeable by virtue of section | 10 |
1(1)(c) of the Value Added Tax Act 1994 (c. 23) (importation of goods | |
from places outside the member States); | |
“notice” means notice in writing; | |
“preferential tariff country” means a country outside the European | |
Community which is, or is a member of a group of countries which is, | 15 |
party to an agreement falling within Article 20(3)(d) of the Community | |
Customs Code (preferential tariff agreements with the Community); | |
“prescribed” means specified in, or determined in accordance with, | |
regulations made by the Treasury; | |
“relevant rule”, in relation to any relevant tax or duty, has the meaning | 20 |
given by subsection (8) of section 26 (as read with subsection (9) of that | |
section); | |
“representative”, in relation to any person, means— | |
(a) his personal representative, | |
(b) his trustee in bankruptcy or interim or permanent trustee, | 25 |
(c) any receiver or liquidator appointed in relation to that person or | |
any of his property, | |
or any other person acting in a representative capacity in relation to that | |
person. | |
(4) References in this Part to the Community Customs Code are references to that | 30 |
Code as from time to time amended, whether before or after the coming into | |
force of this Part. | |
(5) The Treasury may by order amend this Part for the purpose of replacing any | |
reference to, or to a provision of,— | |
(a) the Community Customs Code, or | 35 |
(b) any instrument referred to in this Part by virtue of an order under this | |
subsection, | |
with a reference to, or (as the case may be) to a provision of, a different | |
instrument. | |
(6) A statutory instrument containing an order under subsection (5) may not be | 40 |
made unless a draft of the instrument has been laid before, and approved by a | |
resolution of, the House of Commons. | |
(7) Except for this subsection and section 41 (which accordingly come into force on | |
the passing of this Act), this Part comes into force on such day as the Treasury | |
may by order appoint. | 45 |
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