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
40
(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”,
5
(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
10
“£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.”
(2)
This section shall have effect in respect of anything done on or after 6th
5
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
10
(1)
For the Table in section 11(2) of FA 1997 (rates of gaming duty) substitute—

Table

Part of gross gaming yield
Rate

The first £546,500
2.5 per cent.

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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.

(2)
This section has effect in relation to accounting periods beginning on or after
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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)
(amusement machine licence duty: definition of “amusement machine”)
25
substitute—
“(1)
A machine is an amusement machine for the purposes of this Act if it
is—
(a)
a gaming machine, and
(b)
a prize machine.
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(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”)
for “an amusement machine is a prize machine” substitute “a machine is a prize
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machine”.
(3)
In Schedule 3 to the Betting and Gaming Duties Act 1981 (bingo duty) omit
paragraph 6 (machine bingo).

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

(1)
(2)
(3)
(4)
(5)
(6)
(7)

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Months
Category
Category
Category
Category
Category
Category

for which
A
B1
B2
B3
B4
C

licence

granted

1
£435
£220
£170
£170
£155
£65

40

2
£875
£435
£345
£345
£310
£130

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

3
£1310
£655
£515
£515
£465
£195

4
£1750
£875
£690
£690
£625
£255

5
£2185
£1095
£860
£860
£780
£320

6
£2625
£1310
£1030
£1030
£935
£385

7
£3060
£1530
£1205
£1205
£1090
£450

10

8
£3500
£1750
£1375
£1375
£1245
£515

9
£3935
£1970
£1545
£1545
£1400
£580

10
£4375
£2185
£1720
£1720
£1555
£645

11
£4810
£2405
£1890
£1890
£1715
£705

12
£5000
£2500
£1965
£1965
£1780
£735

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

Category A - a gaming machine which is not within another
category.

Category B1 - a gaming machine which is not within a lower
category and in respect of which—
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(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.

Category B2 - a gaming machine which is not within a lower
category and in respect of which—
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(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.

Category B3 - a gaming machine which is not within a lower
category and in respect of which—
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(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.

Category B4 - a gaming machine which is not within a lower
category and in respect of which—
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(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.

Category C—
(i)
a gaming machine in respect of which the cost of a single
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game does not exceed 5p, and
(ii)
a gaming machine in respect of which—

Finance (No.2) Bill
Part 1 — Excise duties
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(a)
the cost of a single game does not exceed 50p,
and
(b)
the maximum value of the prize for winning a
single game does not exceed £25.
(4)
Where a machine offers more than one class of game, it falls within a
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category only if it satisfies the requirements of that category in respect
of each class.
(5)
Where a prize is anything other than money its value for the purposes
of this section is—
(a)
in the case of a voucher or token that may be exchanged for, or
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used in place of, an amount of money, that amount,
(b)
in the case of a voucher or token that does not fall within
paragraph (a) and that may be exchanged for something other
than money, the cost that the person providing the machine
would incur in obtaining that thing from a person not
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connected with him (within the meaning of section 839 of the
Income and Corporation Taxes Act 1988), and
(c)
in any other case, the cost that the person providing the
machine would incur in obtaining the prize from a person not
connected with him (within that meaning).
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(6)
For the purposes of subsection (3) Category A is the highest category
and Category C is the lowest.”
(4)
For section 25(4) to (7) of the Betting and Gaming Duties Act 1981 (c. 63)
substitute—
“(4)
A machine which has a number of individual playing positions
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allowing persons to play simultaneously (whether or not participating
in the same game) shall be treated for the purposes of sections 21 to 24
as that number of separate machines.”
(5)
Section 25A of that Act (power to modify definitions) shall cease to have effect.
(6)
In section 26(2) of that Act (supplemental) the following shall cease to have
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effect—
(a)
the definition of “video machine”, and
(b)
in the definition of “two-penny machine”, the words from “and “five-
penny machine”” to the end.
(7)
Paragraphs 2 and 3 of Schedule 4 to that Act (exemptions) shall cease to have
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effect.
(8)
Subsections (1) to (7) shall have effect in relation to the grant of an amusement
machine licence on or after 1st August 2006.
(9)
An amusement machine licence granted before that time shall continue to have
effect (for which purpose the Betting and Gaming Duties Act 1981 shall have
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effect without the amendments effected by this section).
(10)
But subsection (9) shall not apply in relation to machines which become
gaming machines by virtue of section 11 of this Act.
(11)
For the purpose of the application of Schedule 4A to that Act (default licences)
in respect of a period before 1st August 2006 no account shall be taken of an
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amendment effected by subsections (1) to (7) above or by section 11 above.