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Finance Bill
Part 8 — Miscellaneous

86

 

(3)   

For section 19 (rebates on surrender of licences) substitute—

“19     

Rebates

(1)   

If the relevant person makes an application to the Secretary of State

under this subsection for a rebate of the duty paid on a vehicle licence

in force for a vehicle, the person is entitled to receive from the Secretary

5

of State the amount specified in subsection (2).

(2)   

That amount is an amount equal to one-twelfth of the annual rate of

duty chargeable on the licence (at the time when it was taken out) in

respect of each complete month of the period of the currency of the

licence which is unexpired when the application is made.

10

(3)   

An application under subsection (1) may only be made if—

(a)   

the vehicle has been stolen,

(b)   

the vehicle has been destroyed and the Secretary of State is

notified of that,

(c)   

an application for a nil licence for the vehicle is made in

15

accordance with regulations under section 22,

(d)   

the vehicle is neither used nor kept on a public road and the

particulars and declaration required to be furnished and made

by regulations under section 22(1D) are furnished and made in

relation to it in accordance with the regulations,

20

(e)   

the vehicle has been sold or disposed of and the particulars

prescribed by regulations under section 22(1)(d) are furnished

in relation to it in accordance with the regulations, or

(f)   

the vehicle has been removed from the United Kingdom with a

view to its remaining permanently outside the United Kingdom

25

and the Secretary of State is notified of that.

(4)   

In subsection (1) “the relevant person” means the person in whose

name the vehicle is registered at the time when the application is made;

but in a case within subsection (3)(e) also includes the person in whose

name it was registered immediately before being sold or disposed of.

30

(5)   

The Secretary of State may specify conditions which must be complied

with by a person before making an application under subsection (1).

(6)   

The conditions that may be specified include (in particular)—

(a)   

a condition requiring the surrender of the licence,

(b)   

a condition requiring that particulars which are required to be

35

furnished to the Secretary of State are transmitted to the

Secretary of State by such electronic means as may be specified,

and

(c)   

in a case within subsection (3)(a), conditions relating to the

reporting to the police that the vehicle has been stolen.

40

(7)   

Where an application is made under subsection (1) and the licence is

not surrendered on the making of the application, it ceases to be in force

when the application is made.

(8)   

Where a trade licence is surrendered to the Secretary of State under

section 14(2), the holder of the licence is entitled to receive from the

45

Secretary of State (by way of rebate of the duty paid on the licence) an

amount equal to one-twelfth of the annual rate of duty chargeable on

the licence (at the time when it was taken out) in respect of each

 
 

Finance Bill
Part 8 — Miscellaneous

87

 

complete month of the period of the currency of the licence which is

unexpired at the date of the surrender.”

(4)   

In section 22(1D) (requirement to furnish particulars etc in certain

circumstances), omit paragraph (a) (surrender under section 10(2)).

(5)   

In—

5

(a)   

section 31(7)(a),

(b)   

section 31B(9)(a)(i), and

(c)   

section 31C(7)(a),

   

(meaning of “expiry”), after “surrender” insert “or ceasing to be in force under

section 19(7)”.

10

(6)   

In consequence of the amendment made by subsection (3), omit section 14 of

FA 2001.

(7)   

The amendments made by this section come into force on 1 January 2009.

139     

Offence of using or keeping unlicensed vehicle

Schedule 45 contains provision in relation to the offence of using or keeping an

15

unlicensed vehicle.

140     

Rates for new lower-emission vans

(1)   

Part 1B of Schedule 1 to VERA 1994 (annual rates of duty: light goods vehicles)

is amended as follows.

(2)   

In paragraph 1J(a) and (b) (rates), after “a” insert “pre-2007 or post-2008”.

20

(3)   

In paragraph 1K (meaning of “lower-emission van”), for ““lower-emission

van”” substitute ““pre-2007 lower-emission van””.

(4)   

After paragraph 1L insert—

“1M        

For the purposes of paragraph 1J, a vehicle to which this Part of this

Schedule applies is a “post-2008 lower-emission van” if—

25

(a)   

the vehicle is first registered on or after 1 January 2009 and

before 1 January 2011,

(b)   

it is a vehicle to which Regulation (EC) No 715/2007 of the

European Parliament and of the Council applies (see Article

2 of that Regulation),

30

(c)   

it is powered by a compression ignition engine, and

(d)   

the emissions from it do not exceed any of the emission limit

values specified in Table 1 of Annex 1 to that Regulation in

relation to vehicles so powered.”

141     

Not exhibiting licence: period of grace

35

In section 33 of VERA 1994 (not exhibiting licence), after subsection (1A)

insert—

“(1B)   

A person is not guilty of an offence under subsection (1) or (1A) by

using or keeping a vehicle on a public road during any of the 5 working

days following the time when a licence or nil licence for the vehicle, or

40

a relevant declaration applying to the vehicle, ceases to be in force, if an

 
 

Finance Bill
Part 8 — Miscellaneous

88

 

application for a licence or nil licence for or in respect of the vehicle to

run from that time has been received before that time.

(1C)   

In subsection (1B) “working day” means any day other than—

(a)   

a Saturday or Sunday, or

(b)   

a day which is Christmas Eve, Christmas Day, Good Friday or

5

a bank holiday under the Banking and Financial Dealings Act

1971 in any part of the United Kingdom.

(1D)   

For the purposes of subsection (1B)—

(a)   

there is a relevant declaration applying to a vehicle if the

particulars and declaration required to be furnished and made

10

by regulations under section 22(1D) have been furnished and

made in relation to the vehicle in accordance with the

regulations, and

(b)   

the relevant declaration ceases to be in force if, after the

particulars and declaration have been furnished and made—

15

(i)   

the vehicle is used or kept on a public road (otherwise

than under a trade licence), or

(ii)   

the period of 12 months beginning with the day on

which the particulars and declaration were furnished

and made expires.”

20

142     

Reduced pollution certificates

(1)   

Section 61B of VERA 1994 (certificates as to reduced pollution) is amended as

follows.

(2)   

In subsection (1), after paragraph (b) insert—

“(ba)   

for the production of information and making of declarations

25

for the purposes of a determination (including provision about

the person to whom, and the time at which and manner in

which, the information is to be produced and the declarations

are to be made);”.

(3)   

In paragraph (c) of that subsection, for “examination of an eligible vehicle, for

30

the purposes of the determination mentioned in paragraph (b),” substitute

“Secretary of State to specify cases in which a determination is to be made only

after an examination of an eligible vehicle”.

(4)   

In paragraph (d) of that subsection, for “for such an examination” substitute “in

respect of a determination”.

35

(5)   

In paragraph (e) of that subsection, for “on a prescribed examination,”

substitute “in accordance with the regulations,”.

(6)   

In subsection (3)—

(a)   

in paragraph (a), for “in accordance with the regulations” substitute

“(or, if not previously examined, examined) in accordance with the

40

regulations (“a post-certification examination”)”,

(b)   

in paragraph (b), for “such a re-examination” substitute “a post-

certification examination”, and

(c)   

in paragraph (c), for “the prescribed re-examination” substitute “a post-

certification examination”.

45

 
 

Finance Bill
Part 8 — Miscellaneous

89

 

Climate change levy and landfill tax

143     

Climate change levy: coal mine methane no longer to be renewable source

(1)   

In paragraph 19 of Schedule 6 to FA 2000 (exemption: electricity from

renewable sources), omit sub-paragraph (4A) (coal mine methane to be

regarded as renewable source).

5

(2)   

Accordingly, omit—

(a)   

section 126 of FA 2002 (which inserted sub-paragraph (4A)), and

(b)   

regulation 47(2A) of the Climate Change Levy (General) Regulations

2001 (S.I. 2001/838).

(3)   

The repeals and revocation made by this section have effect in relation to

10

electricity generated on or after 1 November 2008.

144     

Climate change levy accounting documents: abolition of self-identification

In paragraph 143(2) of Schedule 6 to FA 2000 (requirements to be met by

invoice if it is to be a “climate change levy accounting document”), omit

paragraph (a) (requirement that it must state that it is a climate change levy

15

accounting document).

145     

Landfill tax credit: withdrawing approval of environmental bodies

(1)   

Part 3 of FA 1996 (landfill tax) is amended as follows.

(2)   

In section 53(4)(d) (withdrawal of approval of environmental body or

regulatory body), for “approval of an environmental body or the regulatory

20

body to be withdrawn” substitute “the withdrawal of approval of an

environmental body by the Commissioners or by the regulatory body, and the

withdrawal of approval of the regulatory body by the Commissioners,”.

(3)   

In section 54(1) (review of Commissioners’ decisions), after paragraph (c)

insert—

25

“(ca)   

a decision to withdraw approval of an environmental body

under any provision contained in regulations by virtue of

section 53(4)(d) above;”.

(4)   

The amendments made by this section are treated as having come into force on

19 March 2008.

30

Aviation

146     

Aviation duty

The Commissioners for Her Majesty’s Revenue and Customs may incur

expenditure in preparing for the introduction of a new duty chargeable in

respect of flights by aircraft.

35

147     

Air passenger duty: class of travel with large seat pitch

(1)   

In section 30 of FA 1994 (rate of air passenger duty), after subsection (10)

 
 

Finance Bill
Part 8 — Miscellaneous

90

 

insert—

“(11)   

But a class of travel is not standard class travel if the seats for

passengers whose agreement for carriage provides for that class of

travel have a pitch exceeding 1.016 metres (40 inches).

(12)   

For this purpose “pitch”, in relation to a seat, means the distance

5

between a fixed point on the seat and the same point on the seat

immediately in front of it; but where there is no seat immediately in

front of the seat, the seat is to be treated as having the same pitch as the

seat immediately behind it.”

(2)   

The amendment made by subsection (1) has effect in relation to any carriage of

10

a passenger on an aircraft which begins on or after 1 November 2008.

Alternative finance arrangements

148     

Stamp duty and stamp duty reserve tax: alternative finance investment bonds

(1)   

FA 1986 is amended as follows.

(2)   

In section 78 (stamp duty: loan capital), after subsection (7)(c) insert—

15

“(d)   

any capital raised under arrangements which fall within section

48A of the Finance Act 2005 (alternative finance investment

bonds).”

(3)   

Section 79 (loan capital: instruments not chargeable to stamp duty) is amended

as follows.

20

(4)   

After subsection (8) insert—

“(8A)   

In the application of this section to loan capital that falls within

paragraph (d) of section 78(7) (alternative finance investment bonds)—

(a)   

subsection (6) has effect as if—

(i)   

paragraph (a) were omitted, and

25

(ii)   

for paragraph (c) there were substituted—

“(c)   

a right at the end of the bond term (within the

meaning of section 48A(1) of the Finance Act

2005) to a payment of an amount that exceeds the

aggregate of—

30

   

   (i) the amount paid for the issue of the bond,

   

   and

   

   (ii) the notional payment amount;

   

and for this purpose the “notional payment

amount” means the amount of the payments that

35

would represent a reasonable commercial return

(within the meaning of section 48A(1) of the

Finance Act 2005) on the bond over the bond

term, less the amount of the payments actually

made.”;

40

(b)   

subsections (6)(b), (7), (7A) and (7B) have effect as if references

to a right to interest were references to a right to additional

payments (“additional payments” having the same meaning as

in section 48A of the Finance Act 2005).”

 
 

Finance Bill
Part 8 — Miscellaneous

91

 

(5)   

In section 99 (stamp duty reserve tax: interpretation), after subsection (9)

insert—

“(9A)   

But “unit trust scheme” does not include arrangements falling within

section 48A of the Finance Act 2005 (alternative finance investment

bonds).”

5

(6)   

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

instruments executed on or after the day on which this Act is passed (and for

this purpose it does not matter when the arrangements falling within section

48A of FA 2005 are made).

(7)   

The amendment made by subsection (5) has effect in relation to—

10

(a)   

agreements to transfer chargeable securities made on or after the day

on which this Act is passed, and

(b)   

the transfer, issue or appropriation of chargeable securities after that

day in pursuance of an agreement made after that day;

   

(and for this purpose it does not matter when the arrangements falling within

15

section 48A of FA 2005 are made).

149     

Alternative property finance: anti-avoidance

(1)   

FA 2003 is amended as follows.

(2)   

For the heading of section 73A substitute “Sections 71A to 73: relationship

with Schedule 7”.

20

(3)   

After section 73A insert—

“73AB   

  Sections 71A to 72A: arrangements to transfer control of financial

institution

(1)   

Section 71A, 72 or 72A does not apply to alternative finance

arrangements if those arrangements, or any connected arrangements,

25

include arrangements for a person to acquire control of the relevant

financial institution.

(2)   

That includes arrangements for a person to acquire control of the

relevant financial institution only if one or more conditions are met

(such as the happening of an event or doing of an act).

30

(3)   

In this section—

“alternative finance arrangements” means the arrangements

referred to in section 71A(1), 72(1) or 72A(1);

“arrangements” includes any agreement, understanding, scheme,

transaction or series of transactions (whether or not legally

35

enforceable);

“connected arrangements” means any arrangements entered into

in connection with the making of the alternative finance

arrangements (including arrangements involving one or more

persons who are not parties to the alternative finance

40

arrangements);

“relevant financial institution” means the financial institution

which enters into the alternative finance arrangements.

(4)   

Section 840 of the Taxes Act 1988 applies for the purposes of

determining who has control of the relevant financial institution.”

45

 
 

Finance Bill
Part 8 — Miscellaneous

92

 

(4)   

The amendment made by subsection (3) has effect in relation to alternative

finance arrangements entered into on or after 12 March 2008.

150     

Alternative finance arrangements: power to vary Chapter 5 of Part 2 of FA

2005

(1)   

Section 98 of FA 2006 (alternative finance arrangements: variation of Chapter 5

5

of Part 2 of FA 2005 by order) is amended as follows.

(2)   

For the heading substitute “Orders amending Chapter 5 of Part 2 of FA 2005”.

(3)   

For subsection (1) substitute—

“(1)   

The Treasury may by order amend Chapter 5 of Part 2 of FA 2005

(alternative finance arrangements).

10

(1A)   

The amendments that may be made by an order under subsection (1)

include—

(a)   

the variation of provision already included in Chapter 5, and

(b)   

the introduction into Chapter 5 of new provision relating to

alternative finance arrangements.”

15

(4)   

For subsection (3) substitute—

“(3)   

An order under this section shall be made by statutory instrument.

(4)   

If a statutory instrument containing an order under this section—

(a)   

introduces into Chapter 5 of Part 2 of FA 2005 new provision

relating to alternative finance arrangements, or

20

(b)   

amends an enactment which is not contained in that Chapter,

but is contained in an Act,

   

it shall not be made unless a draft has been laid before and approved by

resolution of the House of Commons.

(5)   

In any other case, a statutory instrument containing an order under this

25

section shall be subject to annulment in pursuance of a resolution of the

House of Commons.

(6)   

In this section “alternative finance arrangements” means arrangements

which in the Treasury’s opinion—

(a)   

equate in substance to a loan, deposit or other transaction of a

30

kind that generally involves the payment of interest, and

(b)   

achieve a similar effect without including provision for the

payment of interest.”

151     

Government borrowing: alternative finance arrangements

(1)   

The Treasury may by regulations make provision for raising money through

35

alternative finance arrangements.

(2)   

Regulations under subsection (1) must specify the purpose or purposes for

which money may be raised through each kind of alternative finance

arrangements that, under regulations under subsection (1), is available for

raising money.

40

(3)   

The Treasury may not raise money through a particular kind of alternative

finance arrangements unless, in the Treasury’s opinion, raising the money

 
 

 
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