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Finance Bill
Part 6 — Other taxes

230

 

(iic)   

in producing bioethanol for chargeable use within the

meaning of section 6AD of that Act (excise duty on

bioethanol),

(iid)   

in producing bioethanol blend for delivery for home

use from any place mentioned in section 6AE(1)(b) of

5

that Act (excise duty on bioethanol blend),”.

(3)   

In paragraph 13(b)(iii), for “liquids that are not hydrocarbon oil” substitute

“liquids (within the meaning of that section) in respect of which a charge is

capable of arising under that section”.

(4)   

In paragraph 13, for the words from “For this purpose” to the end substitute—

10

           

“Expressions which are used in this paragraph and the Hydrocarbon

Oil Duties Act 1979 have the same meaning in this paragraph as they

have in that Act.”

(5)   

After paragraph 13 insert—

“13A  (1)  

The Commissioners may by regulations make provision amending

15

paragraph 13 for the purpose of—

(a)   

extending the circumstances in which a supply of a taxable

commodity is exempt from the levy, or

(b)   

restricting the circumstances in which a supply of a taxable

commodity is exempt from the levy.

20

      (2)  

Regulations under this paragraph that include provision made for

the purpose mentioned in sub-paragraph (1)(a) may provide for the

provision to have retrospective effect.

      (3)  

A statutory instrument that contains (whether alone or with other

provisions) regulations under this paragraph made for the purpose

25

mentioned in sub-paragraph (1)(b) shall not be made unless a draft

of the instrument has been laid before Parliament and approved by

a resolution of the House of Commons.”

(6)   

The amendments made by subsections (2) to (4) have effect—

(a)   

as regards biodiesel and bioblend, in relation to supplies made on or

30

after the day on which this Act is passed;

(b)   

as regards bioethanol and bioethanol blend, in relation to supplies

made on or after 1st January 2005.

Aggregates levy

276     

Transitional tax credit in Northern Ireland: changes to existing scheme

35

(1)   

In section 30A of the Finance Act 2001 (c. 9) (aggregates levy: transitional tax

credit in Northern Ireland) after subsection (3) insert—

“(4)   

The Treasury may by order made by statutory instrument amend

subsection (2) above so as to—

(a)   

change the period in relation to which the amount of a tax credit

40

is to be reduced;

(b)   

change the amount by which a tax credit is to be reduced.

(5)   

An order under subsection (4) above shall not be made unless a draft of

the order has been laid before Parliament and approved by a resolution

of the House of Commons.”

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Finance Bill
Part 6 — Other taxes

231

 

(2)   

This section shall be deemed to have come into force on 1st April 2004.

277     

Transitional tax credit in Northern Ireland: new scheme

(1)   

Part 2 of the Finance Act 2001 (aggregates levy) is amended as set out in

subsections (2) and (3).

(2)   

For section 30A substitute—

5

“30A    

Transitional tax credit in Northern Ireland

(1)   

The Commissioners may by regulations make provision of the kind

described in section 30(2) above (entitlement to tax credit) in relation to

cases within subsection (2) below.

(2)   

The cases are those where a charge to aggregates levy has arisen on a

10

quantity of aggregate which has been subjected to commercial

exploitation in Northern Ireland during a period—

(a)   

starting on the prescribed date, and

(b)   

ending on 31st March 2012.

(3)   

The date prescribed for the purposes of subsection (2)(a) above may be

15

earlier than the date on which this section comes into force.

(4)   

The amount of a tax credit to which a person is entitled under the

regulations must not be more than 80% of any aggregates levy charged

on the aggregate in question.

(5)   

Regulations under this section may in particular make provision—

20

(a)   

for a person operating a site to be entitled to a tax credit under

the regulations in respect of a period for which he holds an

aggregates levy credit certificate which has been issued in

respect of the site and which has not been withdrawn;

(b)   

for an aggregates levy credit certificate to be issued to a person

25

in respect of a site only if an aggregates levy credit agreement is

in force in respect of the site;

(c)   

for the withdrawal of an aggregates levy credit certificate where

the aggregates levy credit agreement in respect of which it was

issued is no longer in force;

30

(d)   

for the form and content of aggregates levy credit certificates

and aggregates levy credit agreements.

(6)   

Regulations under this section which make provision such as is

mentioned in subsection (5)(d) above may be framed by reference to

any provisions of a notice published by the Commissioners in

35

pursuance of the regulations and not withdrawn by a further notice.

(7)   

If regulations under this section make provision such as is mentioned

in subsection (5) above, the Commissioners or the Northern Ireland

Department may—

(a)   

enter into aggregates levy credit agreements;

40

(b)   

issue and withdraw aggregates levy credit certificates;

(c)   

take such other steps as the Commissioners or the Northern

Ireland Department consider appropriate in relation to

aggregates levy credit agreements and aggregates levy credit

certificates.

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Finance Bill
Part 6 — Other taxes

232

 

(8)   

Regulations under this section which make provision such as is

mentioned in subsection (5) above must include provision requiring

the Northern Ireland Department to inform the Commissioners if the

Northern Ireland Department issues or withdraws an aggregates levy

credit certificate.

5

(9)   

Subsections (3) to (5) of section 30 above apply to regulations under this

section as they apply to regulations under that section.

(10)   

The Treasury may by order made by statutory instrument amend

subsection (4) above by substituting for the percentage for the time

being specified in that subsection a percentage lower than 80%.

10

(11)   

An order under subsection (10) above shall not be made unless a draft

of the order has been laid before Parliament and approved by a

resolution of the House of Commons.

(12)   

Any expenses of the Northern Ireland Department under this section

shall be charged on the Consolidated Fund of Northern Ireland.

15

(13)   

In this section—

   

“aggregates levy credit agreement” means an agreement entered

into in respect of a site by the person operating the site and the

Commissioners or the Northern Ireland Department;

   

“aggregates levy credit certificate” means a certificate issued to the

20

person operating a site by the Commissioners or the Northern

Ireland Department as evidence of the fact that an aggregates

levy credit agreement has been entered into in respect of the

site;

   

“the Northern Ireland Department” means the Department of the

25

Environment in Northern Ireland.”

(3)   

In section 48(1) (interpretation), in the definition of “tax credit regulations”

after “section 30” insert “or 30A”.

(4)   

The preceding provisions of this section come into force on such day as the

Treasury may by order made by statutory instrument appoint.

30

(5)   

An order under subsection (4) may—

(a)   

make different provision for different purposes;

(b)   

make incidental, consequential, supplemental or transitional provision

and savings.

Lorry road-user charge

35

278     

Lorry road-user charge

(1)   

Section 137 of the Finance Act 2002 (c. 23) (lorry road-user charge) is amended

as follows.

(2)   

For subsection (4) substitute—

“(4)   

Lorry road-user charge—

40

(a)   

shall be under the care and management of the Commissioners

of Customs and Excise, and

(b)   

shall be administered and enforced in accordance with such

provisions as Parliament may determine.”.

 

 

Finance Bill
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233

 

(3)   

For subsections (5) and (6) substitute—

“(5)   

All money and securities for money collected or received for or on

account of lorry road-user charge shall—

(a)   

if collected or received in Great Britain, be placed to the general

account of the Commissioners of Customs and Excise kept at

5

the Bank of England under section 17 of the Customs and Excise

Management Act 1979;

(b)   

if collected or received in Northern Ireland, be paid into the

Consolidated Fund of the United Kingdom in such manner as

the Treasury may direct.”.

10

Inheritance tax

279     

Delivery of accounts etc

(1)   

Section 256 of the Inheritance Tax Act 1984 (c. 51) (regulations about

information to be furnished to the Board) is amended as follows.

(2)   

In subsection (1)—

15

(a)   

in paragraph (a), after “specified in” insert “or determined under”;

(b)   

after paragraph (a) insert—

“(aa)   

requiring persons who by virtue of regulations under

paragraph (a) above are not required to deliver accounts

under section 216 above to produce to the Board, in such

20

manner as may be specified in or determined under the

regulations, such information or documents as may be

so specified or determined”;

(c)   

in paragraph (b), after “so specified” insert “or determined”;

(d)   

paragraph (c) shall cease to have effect.

25

(3)   

After subsection (1) insert—

“(1A)   

Regulations under subsection (1)(aa) may in particular—

(a)   

provide that information or documents must be produced to the

Board by producing it or them to—

(i)   

a probate registry in England and Wales;

30

(ii)   

the sheriff in Scotland;

(iii)   

the Probate and Matrimonial Office in Northern Ireland;

(b)   

provide that information or documents produced as specified

in paragraph (a) is or are to be treated for any or all purposes of

this Act as produced to the Board;

35

(c)   

provide for the further transmission to the Board of information

or documents produced as specified in paragraph (a).”

(4)   

Subsection (2) shall cease to have effect.

(5)   

In subsection (3), at the end insert “and may make different provision for

different cases”.

40

(6)   

After subsection (3) insert—

“(3A)   

Regulations under this section may only be made—

(a)   

in relation to England and Wales or Northern Ireland, after

consulting the Lord Chancellor;

 

 

Finance Bill
Part 6 — Other taxes

234

 

(b)   

in relation to Scotland, after consulting the Scottish Ministers.”

280     

Grant of probate

(1)   

In section 109 of the Supreme Court Act 1981 (c. 54) (refusal of grant of probate

where inheritance tax unpaid)—

(a)   

for subsection (1) substitute—

5

“(1)   

No grant shall be made, and no grant made outside the United

Kingdom shall be resealed, except—

(a)   

on the production of information or documents under

regulations under section 256(1)(aa) of the Inheritance

Tax Act 1984 (excepted estates); or

10

(b)   

on the production of an account prepared in pursuance

of that Act showing by means of such receipt or

certification as may be prescribed by the Commissioners

either—

(i)   

that the inheritance tax payable on the delivery

15

of the account has been paid; or

(ii)   

that no such tax is so payable.”;

(b)   

in subsection (2), for “this section” substitute “subsection (1)(b)”;

(c)   

after subsection (2) insert—

“(2A)   

In this section and the following section, “the Commissioners”

20

means the Commissioners of Inland Revenue”;

(d)   

subsection (3) shall cease to have effect.

(2)   

In section 42 of the Probate and Legacy Duties Act 1808 (c. 149) (grant of

confirmation)—

(a)   

the existing text shall become subsection (1) of that section;

25

(b)   

at the beginning of that subsection, for “And” substitute “Subject to

subsection (2) below,”; and

(c)   

after that subsection insert—

“(2)   

In a case to which regulations under section 256(1)(aa) of the

Inheritance Tax Act 1984 (c. 51) apply (excepted estates), it shall not be

30

lawful to grant confirmation such as is mentioned in subsection (1)

above except on the production of information or documents in

accordance with those regulations.”

(3)   

In Article 20 of the Administration of Estates (Northern Ireland) Order 1979

(S.I.1979/1575 (N.I.14)) (inheritance tax accounts)—

35

(a)   

for paragraph (1) substitute—

“(1)   

The High Court shall not make any grant, or reseal any grant

made outside the United Kingdom, except—

(a)   

on the production of information or documents under

regulations under section 256(1)(aa) of the Inheritance

40

Tax Act 1984 (excepted estates); or

(b)   

on the production of an account prepared in pursuance

of that Act showing by means of such receipt or

certification as may be prescribed by the Commissioners

of Inland Revenue either—

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Finance Bill
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235

 

(i)   

that the inheritance tax payable on the delivery

of the account has been paid; or

(ii)   

that no such tax is so payable.”;

(b)   

in paragraph (2) of that Article, for “this Article” substitute “paragraph

(1)(b)”.

5

(4)   

Subsection (1) shall come into force on such day as the Treasury may after

consulting the Lord Chancellor by order made by statutory instrument

appoint.

(5)   

Subsection (2) shall come into force on such day as the Treasury may after

consulting the Scottish Ministers by order made by statutory instrument

10

appoint.

(6)   

Subsection (3) shall come into force on such day as the Treasury may after

consulting the Lord Chancellor by order made by statutory instrument

appoint.

281     

Amendments to penalty regime

15

(1)   

The Inheritance Tax Act 1984 is amended as specified in subsections (2) to (4).

(2)   

In section 245 (failure to deliver accounts)—

(a)   

in subsections (2)(a) and (3), for “not exceeding” substitute “of”;

(b)   

after subsection (4) insert—

“(4A)   

Without prejudice to any penalties under subsections (2) and (3)

20

above, if—

(a)   

the failure by the taxpayer to deliver the account

continues after the anniversary of the end of the period

given by section 216(6) or (7) (whichever is applicable),

and

25

(b)   

there would have been a liability to tax shown in the

account,

   

the taxpayer shall be liable to a penalty of an amount not

exceeding £3,000.”

(3)   

In section 245A (failure to provide information etc)—

30

(a)   

after subsection (1A) insert—

“(1B)    

Without prejudice to any penalties under subsection (1A)

above, if a person continues to fail to comply with the

requirements of section 218A after the anniversary of the end of

the period of six months referred to in section 218A(1), he shall

35

be liable to a penalty of an amount not exceeding £3,000.”;

(b)   

in subsection (5)—

(i)   

after “failing to make a return” insert “, to comply with the

requirements of section 218A”;

(ii)   

after “fails to make the return” insert “, to comply with the

40

requirements of section 218A”.

(4)   

In section 247 (provision of incorrect information)—

(a)   

in subsection (1), for the words from “, in the case of fraud” to the end

substitute “to a penalty not exceeding the difference mentioned in

subsection (2) below”;

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Finance Bill
Part 6 — Other taxes

236

 

(b)   

in subsection (3), for the words from “, in the case of fraud” to the end

substitute “to a penalty not exceeding £3,000”.

(5)   

Subsection (2)(a) above has effect in relation to a failure by any person to

deliver an account under section 216 or 217 of the Inheritance Tax Act 1984

(c. 51) where the period under section 216(6) or (7) or 217 of that Act

5

(whichever is applicable) within which the person is required to deliver the

account expires after six months from the day on which this Act is passed.

(6)   

Subsection (2)(b) above has effect—

(a)   

in relation to a failure by any person to deliver an account under section

216 of the Inheritance Tax Act 1984 where the period under section

10

216(6) or (7) of that Act (whichever is applicable) within which the

person is required to deliver the account expires after the day on which

this Act is passed; and

(b)   

in relation to such a failure to deliver such an account where that period

expires on or before the day on which this Act is passed, as if, in the

15

subsection (4A) inserted in section 245 of that Act by subsection (2)(b)

above, for the words “anniversary of the end of the period given by

section 216(6) or (7) (whichever is applicable)” there were substituted

“end of the period of twelve months beginning with the day on which

the Finance Act 2004 is passed”.

20

(7)   

Subsection (3)(a) above has effect—

(a)   

in relation to a failure to comply with the requirements of section 218A

of the Inheritance Tax Act 1984 where the period of six months referred

to in subsection (1) of that section expires after the day on which this

Act is passed; and

25

(b)   

in relation to such a failure to comply with those requirements where

that period expires on or before the day on which this Act is passed, as

if, in the subsection(1B) inserted in section 245A of that Act by

subsection (3)(a) above, for the words “anniversary of the end of the

period of six months referred to in section 218A(1)” there were

30

substituted “end of the period of twelve months beginning with the day

on which the Finance Act 2004 is passed”.

(8)   

Subsection (3)(b) above has effect in relation to a failure to comply with the

requirements of section 218A of the Inheritance Tax Act 1984 (c. 51) where the

period of six months referred to in subsection (1) of that section expires after

35

the day on which this Act is passed.

(9)   

Subsection (4) above has effect in relation to incorrect accounts, information or

documents delivered, furnished or produced after the day on which this Act is

passed.

Stamp duty land tax and stamp duty

40

282     

Miscellaneous amendments

Schedule 37 to this Act, which makes amendments to Part 4 (stamp duty land

tax) and Part 5 (stamp duty) of the Finance Act 2003 , has effect.

 

 

 
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