Finance Bill

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Finance Bill

Finance Bill
Part 1 — Charges, rates, allowances, reliefs etc
9

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Rate of aggregates levy
(1)
In section 16(4) of FA 2001 (rate of aggregates levy), for “£1.95” substitute “£2”.
(2)
The amendment made by subsection (1) has effect in relation to aggregate
subjected to commercial exploitation on or after 1 April 2009.
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Carbon reduction trading scheme: charges for allocations
5
(1)
The Treasury may impose charges by providing for carbon reduction trading
scheme allowances to be allocated in return for payment.
(2)
The charges may only be imposed by regulations.
(3)
The regulations may make any other provision about allocations of allowances
which the Treasury consider appropriate, including (in particular)—
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(a)
provision as to the imposition of fees, and as to the making and
forfeiting of deposits, in connection with participation in the
allocations,
(b)
provision as to the persons by whom allocations are to be conducted,
(c)
provision for allocations to be overseen by an independent person
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appointed by the Treasury,
(d)
provision for the imposition and recovery of penalties for failure to
comply with the terms of a scheme made under subsection (4),
(e)
provision for and in connection with the recovery of payments due in
respect of allowances allocated (including provision as to the
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imposition and recovery of interest and penalties), and
(f)
provision conferring rights of appeal against decisions made in
allocations, the forfeiting of deposits and the imposition of penalties
(including provision specifying the person, court or tribunal to hear
and determine appeals).
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(4)
The Treasury may make schemes about the conduct and terms of allocations
(to have effect subject to any regulations under this section); and schemes may
in particular include provision about—
(a)
who may participate in allocations,
(b)
the allowances to be allocated, and
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(c)
where and when allocations are to take place.
(5)
In this section—
“carbon reduction trading scheme allowances” means tradeable
allowances that—
(a)
are provided for in a relevant trading scheme, and
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(b)
represent the right to carry on a specified amount of activities
that consist of the emission of greenhouse gas or that cause or
contribute, directly or indirectly, to such emissions;
“relevant trading scheme” means a trading scheme that—
(a)
is made under Part 3 of the Climate Change Act 2008,
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(b)
applies to persons by reference to their consumption of
electricity (whether or not by reference to other matters as well),
and
(c)
applies only to persons who consume electricity—
(i)
for business or charitable purposes, or
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(ii)
for the performance of functions of a public nature,

Finance Bill
Part 1 — Charges, rates, allowances, reliefs etc
10


(whether or not they also consume electricity for other
purposes);
“specified” means specified in the relevant trading scheme.
(6)
Regulations under this section are to be made by statutory instrument.
(7)
A statutory instrument containing the first regulations under this section may
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not be made unless a draft of the regulations has been laid before, and
approved by a resolution of, the House of Commons.
(8)
Any other statutory instrument containing regulations under this section is
subject to annulment in pursuance of a resolution of the House of Commons
unless a draft of the regulations has been laid before, and approved by a
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resolution of, that House.
Gambling duties
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Rates of gaming duty
(1)
For the table in section 11(2) of FA 1997 substitute—

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“Table

Part of gross gaming yield
Rate

The first £1,911,000
15 per cent

The next £1,317,000
20 per cent

The next £2,307,000
30 per cent

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The next £4,869,500
40 per cent

The remainder
50 per cent”.

(2)
The amendment made by subsection (1) has effect in relation to accounting
periods beginning on or after 1 April 2008.
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Amusement machine licence duty
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(1)
In section 23(2) of BGDA 1981 (amount of duty payable on amusement
machine licence), for the table substitute—
“Table

Months for
Category
Category
Category
Category
Category
Category

which licence
A
B1
B2
B3
B4
C

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granted

£
£
£
£
£
£

          1
     455
     230
     180
     180
     165
      70

          2
     905
     450
     355
     355
     320
     135

          3
   1355
     675
     535
     535
     485
     200

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Finance Bill
Part 2 — Income tax, corporation tax and capital gains tax - general
11

Months for
Category
Category
Category
Category
Category
Category

which licence
A
B1
B2
B3
B4
C

granted

£
£
£
£
£
£

          4
   1805
     905
     710
     710
     645
     265

5

          5
   2260
   1130
     890
     890
     805
     335

          6
   2710
   1355
   1065
   1065
     965
     400

          7
   3160
   1580
   1245
   1245
   1125
     465

          8
   3610
   1805
   1420
   1420
   1290
     530

          9
   4065
   2030
   1600
   1600
   1450
     600

10

         10
   4515
   2260
   1775
   1775
   1610
     665

         11
   4965
   2485
   1955
   1955
   1770
     730

         12
   5160
   2580
   2030
   2030
   1840
     760”.

(2)
The amendment made by subsection (1) has effect in relation to cases where the
application for the amusement machine licence is received by the
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Commissioners for Her Majesty’s Revenue and Customs after 4pm on 14
March 2008.
Part 2
Income tax, corporation tax and capital gains tax - general
Residence and domicile
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Periods of residence
(1)
Section 831 of ITA 2007 (foreign income of individuals in United Kingdom for
temporary purpose) is amended as follows.
(2)
In subsection (1), for paragraph (b) substitute—
“(b)
during the tax year in question the individual spends (in total)
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less than 183 days in the United Kingdom.”
(3)
After that subsection insert—
“(1A)
In determining whether an individual is within subsection (1)(b) treat a
day as a day spent by the individual in the United Kingdom if (and only
if) the individual is present in the United Kingdom at the end of the
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day.
(1B)
But in determining that issue do not treat as a day spent by the
individual in the United Kingdom any day on which the individual
arrives in the United Kingdom as a passenger if—
(a)
the individual departs from the United Kingdom on the next
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day, and

Finance Bill
Part 2 — Income tax, corporation tax and capital gains tax - general
12

(b)
during the time between arrival and departure the individual
does not engage in activities that are to a substantial extent
unrelated to the individual’s passage through the United
Kingdom.”
(4)
In section 832 of that Act (employment income of individuals in United
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Kingdom for temporary purpose), after subsection (1) insert—
“(1A)
In determining whether an individual is within subsection (1)(b) treat a
day as a day spent by the individual in the United Kingdom if (and only
if) the individual is present in the United Kingdom at the end of the
day.
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(1B)
But in determining that issue do not treat as a day spent by the
individual in the United Kingdom any day on which the individual
arrives in the United Kingdom as a passenger if—
(a)
the individual departs from the United Kingdom on the next
day, and
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(b)
during the time between arrival and departure the individual
does not engage in activities that are to a substantial extent
unrelated to the individual’s passage through the United
Kingdom.”
(5)
Section 9 of TCGA 1992 (residence, including temporary residence) is amended
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as follows.
(6)
In subsection (3), for the words after “if and only if” substitute “the individual
spends (in total) at least 183 days in the United Kingdom.”
(7)
Insert at the end—
“(5)
In determining for the purposes of subsection (3) above whether an
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individual spends (in total) at least 183 days in the United Kingdom
treat a day as a day spent by the individual in the United Kingdom if
(and only if) the individual is present in the United Kingdom at the end
of the day.
(6)
But in determining that issue for those purposes do not treat as a day
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spent by the individual in the United Kingdom any day on which the
individual arrives in the United Kingdom as a passenger if—
(a)
the individual departs from the United Kingdom on the next
day, and
(b)
during the time between arrival and departure the individual
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does not engage in activities that are to a substantial extent
unrelated to the individual’s passage through the United
Kingdom.”
(8)
The amendments made by this section have effect for the tax year 2008-09 and
subsequent tax years.
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23
Remittance basis
Schedule 7 contains provision for and in connection with the revision of the
remittance basis.