Finance (No.2) Bill

House of Commons

Session 2005 - 06
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Other Bills before Parliament

Finance (No.2) Bill

Finance (No.2) Bill
Part 1 — Excise duties
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(l)
section 69 (miscellaneous provisions as to wholesalers and retailers of
spirits);
(m)
section 71 (penalty for mis-describing liquor as spirits);
(n)
section 74 (liquor to be deemed wine or spirits); and
(o)
section 82 (power to make regulations with respect to stills).
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(2)
In consequence of the repeal of section 55A of ALDA 1979, that Act is amended
as follows.
(3)
In section 54 (wine: charge of excise duty), in subsection (4A), for “wine to
which section 55A below applies” substitute “wine of a strength not exceeding
5.5 per cent”.
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(4)
In section 55 (made-wine: charge of excise duty), in subsections (4A) and (5)(d),
for “made-wine to which section 55A below applies” substitute “made-wine of
a strength not exceeding 5.5 per cent”.
Hydrocarbon oil duties
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Rates until 1st September 2006
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(1)
HODA 1979 is amended as follows.
(2)
In section 6(1A) (hydrocarbon oil: rates of duty)—
(a)
in paragraph (a) (ultra low sulphur petrol) for “£0.4832” substitute
“£0.4710”,
(b)
in paragraph (aa) (sulphur-free petrol) for “£0.4832” substitute
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“£0.4710”,
(c)
in paragraph (b) (light oil other than ultra low sulphur petrol and
sulphur free petrol) for “£0.5766” substitute “£0.5620”,
(d)
in paragraph (c) (ultra low sulphur diesel) for “£0.4832” substitute
“£0.4710”,
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(e)
in paragraph (ca) (sulphur free diesel) for “£0.4832” substitute
“£0.4710”, and
(f)
in paragraph (d) (heavy oil other than ultra low sulphur diesel and
sulphur-free diesel) for “£0.5465” substitute “£0.5327”.
(3)
In section 6AA(3) (biodiesel) for “£0.2832” substitute “£0.2710”.
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(4)
In section 6AD(3) (bioethanol) for “£0.2832” substitute “£0.2710”.
(5)
In section 8(3) (road fuel gas)—
(a)
in paragraph (a) for “£0.1080” substitute “£0.0900”, and
(b)
in paragraph (b) for “£0.1270” substitute “£0.0900”.
(6)
In section 13A(1) (rebate on unleaded petrol) for “£0.0617” substitute “£0.0601”.
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(7)
The following statutory instruments shall cease to have effect—
(a)
the Excise Duties (Surcharges or Rebates) (Hydrocarbon Oils etc.)
Order 2005 (S.I. 2005/1978),
(b)
the Excise Duties (Road Fuel Gases) (Reliefs) Regulations 2005 (S.I.
2005/1979), and
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(c)
the Excise Duties (Surcharges or Rebates) (Hydrocarbon Oils etc.)
(Amendment) Order 2005 (S.I. 2005/3330).

Finance (No.2) Bill
Part 1 — Excise duties
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7
Rates from 1st September 2006
(1)
HODA 1979 is amended as follows.
(2)
In section 6(1A) (hydrocarbon oil: rates of duty)—
(a)
in paragraph (a) (ultra low sulphur petrol) for “£0.4710” substitute
“£0.4835”,
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(b)
in paragraph (aa) (sulphur-free petrol) for “£0.4710” substitute
“£0.4835”,
(c)
in paragraph (b) (light oil other than ultra low sulphur petrol and
sulphur free petrol) for “£0.5620” substitute “£0.5768”,
(d)
in paragraph (c) (ultra low sulphur diesel) for “£0.4710” substitute
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“£0.4835”,
(e)
in paragraph (ca) (sulphur free diesel) for “£0.4710” substitute “£0.4835
and
(f)
in paragraph (d) (heavy oil other than ultra low sulphur diesel and
sulphur-free diesel) for “£0.5327” substitute “£0.5468”.
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(3)
In section 6AA(3) (biodiesel) for “£0.2710”” substitute “£0.2835”.
(4)
In section 6AD(3) (bioethanol) for “£0.2710” substitute “£0.2835”.
(5)
In section 8(3) (road fuel gas)—
(a)
in paragraph (a) for “£0.0900” substitute “£0.1081”, and
(b)
in paragraph (b) for “£0.0900” substitute “£0.1221”.
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(6)
In section 11(1) (rebate on heavy oil)—
(a)
in paragraph (a) for “£0.0604”” substitute“£0.0729”,
(b)
in paragraph (b) for “£0.0644” substitute “£0.0769”, and
(c)
in paragraph (ba) for “£0.0644” substitute “£0.0769”.
(7)
In section 13A(1) (rebate on unleaded petrol) for “£0.0601”substitute “£0.0617”.
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(8)
In section 14(1) (rebate on light oil for use as furnace oil) for “£0.0604”
substitute “£0.0729”.
(9)
This section comes into force on 1st September 2006.
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Road vehicles
After section 27(1A) of HODA 1979 (interpretation) insert—
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“(1B)
The Treasury may by order made by statutory instrument amend
Schedule 1 to this Act so as to—
(a)
add a class of excepted vehicle,
(b)
remove a class of excepted vehicle, or
(c)
redefine a class of excepted vehicle.
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(1C)
Section 2A(2) and (3) above shall apply to an order under subsection
(1B).”
Betting and gaming duties
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General betting duty: gaming machines
(1)
In section 2(2) of the Betting and Gaming Duties Act 1981 (c. 63) (general
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Finance (No.2) Bill
Part 1 — Excise duties
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betting duty: exemptions) after paragraph (c) add—

“, or
(d)
a bet made using a gaming machine, within the meaning of
section 23 of the Value Added Tax Act 1994, where VAT is
charged in respect of the use.”
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(2)
This section shall have effect in respect of anything done on or after 6th
December 2005 (with the reference to section 23 of the Value Added Tax Act
1994 being a reference to that definition as it is treated as having effect in
relation to things done on or after that date by virtue of section 16(6) and (7)
below).
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Rates of gaming duty
(1)
For the Table in section 11(2) of FA 1997 (rates of gaming duty) substitute—

Table

Part of gross gaming yield
Rate

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The first £546,500
2.5 per cent.

The next £1,212,500
12.5 per cent.

The next £1,212,500
20 per cent.

The next £2,124,000
30 per cent.

The remainder
40 per cent.

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(2)
This section has effect in relation to accounting periods beginning on or after
1st April 2006.
Amusement machine licence duty
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Definition of “gaming machine”
(1)
For section 25(1) to (1B) of the Betting and Gaming Duties Act 1981 (c. 63)
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(amusement machine licence duty: definition of “amusement machine”)
substitute—
“(1)
A machine is an amusement machine for the purposes of this Act if it
is—
(a)
a gaming machine, and
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(b)
a prize machine.
(1A)
In this Act “gaming machine” means a machine that is a gaming
machine for the purposes of section 23 of the Value Added Tax Act 1994
(c. 23).”
(2)
In section 25(1C) of the Betting and Gaming Duties Act 1981 (“prize machine”)
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for “an amusement machine is a prize machine” substitute “a machine is a prize
machine”.

Finance (No.2) Bill
Part 1 — Excise duties
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(3)
In Schedule 3 to the Betting and Gaming Duties Act 1981 (c. 63) (bingo duty)
omit paragraph 6 (machine bingo).
(4)
Subsections (1) and (2) shall have effect in relation to the provision of a machine
on or after 1st August 2006.
(5)
Subsection (3) shall have effect in relation to accounting periods beginning on
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or after 1st August 2006.
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Classes of machine and rates of duty
(1)
For section 21(3AA) to (3E) of the Betting and Gaming Duties Act 1981 (special
licences and excepted machines) substitute—
“(4)
A special amusement machine licence shall be granted only—
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(a)
for a small prize machine,
(b)
if conditions prescribed by the Commissioners by regulations
are satisfied in relation to the application for the licence, the
applicant and the machine, and
(c)
for a period of twelve months.
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(5)
The following are excepted machines—
(a)
machines that are not gaming machines,
(b)
a gaming machine in respect of which—
(i)
the cost of a single game does not exceed 30p,
(ii)
the maximum value of the prize for winning a single
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game does not exceed £8, and
(iii)
the maximum cash component of the prize for winning
a single game does not exceed £5,
(c)
a gaming machine in respect of which—
(i)
the cost of a single game does not exceed 10p, and
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(ii)
the maximum value of the prize for winning a single
game does not exceed £5, and
(d)
two-penny machines.”
(2)
In section 22(2) of that Act (gaming machines) paragraph (b) shall cease to have
effect.
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(3)
For section 23(2) and (3) of that Act (rates) substitute—
“(2)
The appropriate amount for each machine shall be determined in
accordance with the following Table by reference to—
(a)
the period for which the licence is granted, and
(b)
the machine’s category determined in accordance with
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subsection (3).

Finance (No.2) Bill
Part 1 — Excise duties
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(1)
(2)
(3)
(4)
(5)
(6)
(7)

Months
Category
Category
Category
Category
Category
Category

for which
A
B1
B2
B3
B4
C

licence

granted

5

1
£435
£220
£170
£170
£155
£65

2
£875
£435
£345
£345
£310
£130

3
£1310
£655
£515
£515
£465
£195

4
£1750
£875
£690
£690
£625
£255

5
£2185
£1095
£860
£860
£780
£320

10

6
£2625
£1310
£1030
£1030
£935
£385

7
£3060
£1530
£1205
£1205
£1090
£450

8
£3500
£1750
£1375
£1375
£1245
£515

9
£3935
£1970
£1545
£1545
£1400
£580

10
£4375
£2185
£1720
£1720
£1555
£645

15

11
£4810
£2405
£1890
£1890
£1715
£705

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£5000
£2500
£1965
£1965
£1780
£735

(3)
The categories of gaming machine are as follows—

Category A - a gaming machine which is not within another
category.
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Category B1 - a gaming machine which is not within a lower
category and in respect of which—
(i)
the cost of a single game does not exceed £2, and
(ii)
the maximum value of the prize for winning a single
game does not exceed £4,000.
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Category B2 - a gaming machine which is not within a lower
category and in respect of which—
(i)
the cost of a single game does not exceed £100, and
(ii)
the maximum value of the prize for winning a single
game does not exceed £500.
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Category B3 - a gaming machine which is not within a lower
category and in respect of which—
(i)
the cost of a single game does not exceed £1, and
(ii)
the maximum value of the prize for winning a single
game does not exceed £500.
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Category B4 - a gaming machine which is not within a lower
category and in respect of which—
(i)
the cost of a single game does not exceed £1, and
(ii)
the maximum value of the prize for winning a single
game does not exceed £250.
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