CO2 emissions figure
| || |
(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”
(b) in paragraph (b) (vehicle which is a lower-emission van) for “£105”
(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
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
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
(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
reason only that while the licence is in force the tractive unit is used
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
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.
(3) This section has effect in relation to the use of a tractive unit on or after 9th
Value added tax
17 Requirement of evidence or security
(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—
“(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
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
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
(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.
(5) The powers conferred on the Commissioners by sub-paragraph (2)
above are without prejudice to their powers under section 48(7).”.
(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)”.
(7) In section 84 (further provisions relating to appeals) after subsection (4D)
“(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
(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.
(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
(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—
(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
with computers or computer systems.
(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
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.
(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,
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
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
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—
(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
(7) The presumption provided for by subsection (6) above is rebuttable on
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
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
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
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—
“(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
grant of a fee simple falling within paragraph (a) of that item;
(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.”.
(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
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
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;
“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
(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—
“(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
(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
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)—
(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
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
(2) The amendments made by that Schedule have effect in relation to qualifying
supplies made on or after 1st July 2003.
Taxes and duties on importation and exportation: penalties
(1) This Part makes provision for and in connection with the imposition of liability
to a penalty where a person—
(a) engages in any conduct for the purpose of evading any relevant tax 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.
(2) For the purposes of this Part “relevant tax or duty” means any of the
(a) customs duty;
(b) Community export duty;
(c) Community import duty;
(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;
“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”
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
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
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
“import VAT” means value added tax chargeable by virtue of section
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,
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
given by subsection (8) of section 26 (as read with subsection (9) of that
“representative”, in relation to any person, means—
(a) his personal representative,
(b) his trustee in bankruptcy or interim or permanent trustee,
(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
(4) References in this Part to the Community Customs Code are references to that
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
(b) any instrument referred to in this Part by virtue of an order under this
with a reference to, or (as the case may be) to a provision of, a different
(6) A statutory instrument containing an order under subsection (5) 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) 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.