Finance Bill

House of Commons

Session 2003 - 04
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Finance Bill

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
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(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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(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.”.

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(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
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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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(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
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(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.