Finance Bill

House of Commons

Session 2004 - 05
Internet Publications
Other Bills before Parliament

Finance Bill

Finance Bill
Part 1 — Excise duties
5

Gaming duty
6
Rates of gaming duty
(1)
For the Table in section 11(2) of FA 1997 (rates of gaming duty) substitute—

Table
5

Part of gross gaming yield
Rate

The first £534,500
2.5 per cent.

The next £1,186,500
12.5 per cent.

The next £1,186,500
20 per cent.

The next £2,078,000
30 per cent.

10

The remainder
40 per cent.

(2)
This section has effect in relation to accounting periods beginning on or after
1st April 2005.
Vehicle excise duty
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Rates
15
(1)
VERA 1994 is amended as follows.
(2)
In section 4 (vehicle licences: amount of duty), omit—
(a)
subsection (3) (treatment of fractions of five pence in determining rate
of duty on six month licence which is set at 55% of annual rate), and
(b)
in subsection (7) (power to amend or repeal by order), “or (3)”.
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(3)
In section 13(3)(b) (trade licences: annual rate of duty for licences not to be used
only for motorcycles not exceeding 450 kilogrammes in weight unladen) as
currently in force, for “annual rate currently applicable to a vehicle under
paragraph 1(2) of Schedule 1” substitute “basic goods vehicle rate currently
applicable”.
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(4)
In section 13(4)(b) (trade licences: annual rate of duty for licences not to be used
only for motorcycles not exceeding 450 kilogrammes in weight unladen) as set
out in paragraph 8(1) of Schedule 4 to have effect on and after a day appointed
by order, for “annual rate currently applicable to a vehicle under paragraph
1(2) of Schedule 1” substitute “basic goods vehicle rate currently applicable”.
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(5)
In both versions of section 13, after subsection (6) insert—
“(7)
In this section “the basic goods vehicle rate” means the annual rate
applicable, by virtue of sub-paragraph (1) of paragraph 9 of Schedule 1,
to a rigid goods vehicle which—
(a)
is not a vehicle with respect to which the reduced pollution
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requirements are satisfied, and

Finance Bill
Part 1 — Excise duties
6

(b)
falls within column (3) of the table in that sub-paragraph and
has a revenue weight exceeding 3,500 kilograms and not
exceeding 7,500 kilograms.”
(6)
In sections 35A(5) and 36(3) (dishonoured cheques: appropriate annual rate of
vehicle excise duty), for the words from “to the annual rate” to “(or”
5
substitute—
“(a)
in the case of a vehicle licence, to the annual rate which at the
beginning of the relevant period was applicable to a vehicle of
the description specified in the application, or
(b)
in the case of a trade licence, to the basic goods vehicle rate
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(within the meaning of section 13) which was applicable at that
time (or to the annual rate which at that time was applicable”.
(7)
Schedule 1 (annual rates of duty) is amended as follows.
(8)
In paragraph 1(2) (general rate of duty except in case of vehicle with engine
with cylinder capacity not exceeding 1,549 cubic centimetres), for “£165”
15
substitute “£170”.
(9)
For the Table in paragraph 1B (rates of duty applicable to light passenger
vehicles registered on or after 1st March 2001 on basis of certificate specifying
CO2 emissions figure) substitute—

CO2 emissions figure
Rate

20

(1)
(2)
(3)
(4)
(5)

Exceeding
Not
Reduced
Standard
Premium

exceeding
rate
rate
rate

g/km
g/km
£
£
£

—
100
55
65
75

25

100
120
65
75
85

120
150
95
105
115

150
165
115
125
135

165
185
140
150
160

185
—
160
165
170

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(10)
In paragraph 3(1A) (rate applicable to buses with respect to which reduced
pollution requirements are satisfied), for “the general rate specified in
paragraph 1(2)” substitute “£165”.
(11)
In paragraph 7(3A)(b) (rate applicable to haulage vehicles which are not
showman’s vehicle and with respect to which reduced pollution requirements
35
are satisfied), for “the general rate specified in paragraph 1(2)” substitute
“£165”.
(12)
In paragraph 10 (trailer supplement)—

Finance Bill
Part 1 — Excise duties
7

(a)
in sub-paragraph (2) (rate where plated gross weight of trailer exceeds
4,000 kilograms but does not exceed 12,000 kilograms), for “an amount
equal to the amount of the general rate specified in paragraph 1(2)”
substitute “£165”,
(b)
in sub-paragraph (3) (rate where plated gross weight of trailer exceeds
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12,000 kilograms), for “an amount equal to 140 per cent of the amount
of the general rate specified in paragraph 1(2)” substitute “£230”, and
(c)
omit sub-paragraphs (3A) and (3B) (rounding of rate set under sub-
paragraph (3) as percentage of general rate specified in paragraph 1(2)).
(13)
Subsection (2), and subsection (1) so far as relating to it, have effect on the day
10
on which this Act is passed.
(14)
Subsection (4), and subsections (1) and (5) so far as relating to it, have effect on
and after that day.
(15)
Subsection (6), and subsection (1) so far as relating to it, have effect on and after
17th March 2005.
15
(16)
Subject to that, this section has effect in relation to licences taken out on or after
17th March 2005 for a period beginning on or after 1st April 2005.
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Late renewal supplements
(1)
VERA 1994 is amended as follows.
(2)
Section 7A (supplement payable on late renewal of vehicle licence) is amended
20
as follows.
(3)
In subsection (1) (cases in which regulations may provide for supplement to be
payable), for the words from “in prescribed cases” to the end substitute
“where—
(a)
a vehicle has ceased to be appropriately covered,
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(b)
the vehicle is not, before the end of the relevant prescribed
period, appropriately covered as mentioned in paragraph (a) or
(b) of subsection (1A) below with effect from the time
immediately after it so ceased or appropriately covered as
mentioned in paragraph (d) of that subsection, and
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(c)
the circumstances are not such as may be prescribed.”
(4)
After that subsection insert—
“(1A)
For the purposes of this section and section 7B a vehicle is appropriately
covered if (and only if)—
(a)
a vehicle licence or trade licence is in force for or in respect of
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the vehicle,
(b)
the vehicle is an exempt vehicle in respect of which regulations
under this Act require a nil licence to be in force and a nil licence
is in force in respect of it,
(c)
the vehicle is an exempt vehicle that is not one in respect of
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which regulations under this Act require a nil licence to be in
force, or
(d)
the vehicle is neither kept nor used on a public road and the
declarations and particulars required to be delivered by
regulations under section 22(1D) have been delivered in
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Finance Bill
Part 1 — Excise duties
8

relation to it in accordance with the regulations within the
immediately preceding period of 12 months.
(1B)
Where a vehicle for or in respect of which a vehicle licence is in force is
transferred by the holder of the vehicle licence to another person, the
vehicle licence is to be treated for the purposes of subsection (1A) as no
5
longer in force unless it is delivered to the other person with the vehicle.
(1C)
Where—
(a)
an application is made for a vehicle licence for any period, and
(b)
a temporary licence is issued pursuant to the application,

subsection (1B) does not apply to the licence applied for if, on a transfer
10
of the vehicle during the currency of the temporary licence, the
temporary licence is delivered with the vehicle to the transferee.
(1D)
In subsection (1)(b) “the relevant prescribed period” means such period
beginning with the date on which the vehicle ceased to be
appropriately covered as is prescribed.”
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(5)
In subsection (2)(c) (amount of supplement variable according to length of
period between expiry of licence and payment of supplement or renewal of
licence), for sub-paragraphs (i) and (ii) substitute—
“(i)
the time of a notification (in accordance with regulations
under section 7B(1)) to, or in relation to, a person by
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whom it is payable, and
(ii)
the time at which it is paid.”
(6)
In subsection (3)(b) (supplement not to cease to be payable by reason of taking
out of vehicle licence), for “a vehicle licence being taken out for the vehicle”
substitute “the vehicle being again appropriately covered”.
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(7)
Omit subsection (4)(a) (definition of “expiry of a vehicle licence”).
(8)
In the heading, for “late renewal of vehicle licence” substitute “vehicle ceasing
to be appropriately covered”.
(9)
Section 7B (late-renewal supplements: further provisions) is amended as
follows.
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(10)
In subsection (1) (notification of person in whose name vehicle is registered)—
(a)
for “on non-renewal of a vehicle licence for” substitute “in relation to”,
and
(b)
for “failure to renew a vehicle licence” substitute “the vehicle ceasing to
be appropriately covered”.
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(11)
In the heading, for “Late-renewal” substitute “Section 7A”.
(12)
After section 7B insert—
“7C
Recovery of section 7A supplement: Scotland
(1)
The Secretary of State may by regulations provide for the recovery of
supplement that has become payable under section 7A by diligence
40
authorised by summary warrant.
(2)
Regulations under subsection (1) may, in particular, provide—
(a)
for such summary warrants—

Finance Bill
Part 2 — Value added tax
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(i)
to be granted by the sheriff on the application of the
Secretary of State; and
(ii)
to authorise any of the diligences mentioned in
subsection (3);
(b)
for such applications to be accompanied by a certificate
5
mentioned in subsection (4); and
(c)
for the fees and outlays of sheriff officers incurred in executing
such summary warrants to be chargeable against the debtor.
(3)
The diligences referred to in subsection (2)(a)(ii) are—
(a)
an attachment;
10
(b)
an earnings arrestment;
(c)
an arrestment and action of furthcoming or sale.
(4)
The certificate referred to in subsection (2)(b) is a certificate by the
Secretary of State —
(a)
stating that none of the persons specified in the application has
15
paid the supplement due;
(b)
stating that payment of the amount due from each such person
has been demanded from him; and
(c)
specifying the amount due from and unpaid by each such
person.
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(5)
No fee shall be chargeable by the sheriff officer against the debtor for—
(a)
collecting; or
(b)
accounting to the Secretary of State for,
sums paid to him by the debtor in respect of the amount owing.
(6)
No summary warrant for recovery of supplement payable under
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section 7A may be granted if an action for payment to recover such
supplement has already been raised.
(7)
Such an action may be raised notwithstanding that a summary warrant
has already been granted in respect of that supplement but only if none
of the diligences mentioned in subsection (3) has been executed.
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(8)
Where an action raised as mentioned in subsection (7) is raised, the
summary warrant shall cease to have effect.
(9)
This section extends to Scotland only.”
Part 2
Value added tax
35
9
Goods subject to warehousing regime: place of acquisition or supply
In section 18 of VATA 1994 (goods subject to warehousing regime: place and
time of acquisition or supply), after subsection (1) insert—
“(1A)
The Commissioners may by regulations prescribe circumstances in
which subsection (1) above shall not apply.”
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