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Finance Bill


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

11

 

Other environmental taxes and duties

17      

Rates of air passenger duty

(1)   

In section 30 of FA 1994 (air passenger duty: rates), for subsections (1) to (4)

substitute—

“(1)   

Air passenger duty is chargeable on the carriage of each chargeable

5

passenger at the rate determined as follows.

(2)   

If the passenger’s journey ends at a place in the United Kingdom or a

territory specified in Part 1 of Schedule 5A—

(a)   

if the passenger’s agreement for carriage provides for standard

class travel in relation to every flight on the passenger’s

10

journey, the rate is £11, and

(b)   

in any other case, the rate is £22.

(3)   

If the passenger’s journey ends at a place in a territory specified in Part

2 of Schedule 5A—

(a)   

if the passenger’s agreement for carriage provides for standard

15

class travel in relation to every flight on the passenger’s

journey, the rate is £45, and

(b)   

in any other case, the rate is £90.

(4)   

If the passenger’s journey ends at a place in a territory specified in Part

3 of Schedule 5A—

20

(a)   

if the passenger’s agreement for carriage provides for standard

class travel in relation to every flight on the passenger’s

journey, the rate is £50, and

(b)   

in any other case, the rate is £100.

(4A)   

If the passenger’s journey ends at any other place—

25

(a)   

if the passenger’s agreement for carriage provides for standard

class travel in relation to every flight on the passenger’s

journey, the rate is £55, and

(b)   

in any other case, the rate is £110.”

(2)   

Schedule 5 contains further provision about air passenger duty.

30

(3)   

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

passengers beginning on or after 1 November 2009.

18      

Standard rate of landfill tax

(1)   

In section 42(1)(a) and (2) of FA 1996 (amount of landfill tax), for “£40”

substitute “£48”.

35

(2)   

The amendments made by subsection (1) have effect in relation to disposals

made (or treated as made) on or after 1 April 2010.

 
 

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

12

 

Gambling duties

19      

Rates of gaming duty

(1)   

In section 11(2) of FA 1997 (rates of gaming duty), for the table substitute—


“Table

5

 

Part of gross gaming yield

Rate

 
 

The first £1,929,000

15 per cent

 
 

The next £1,329,500

20 per cent

 
 

The next £2,329,000

30 per cent

 
 

The next £4,915,500

40 per cent

 

10

 

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 2009.

20      

Bingo duty

(1)   

BGDA 1981 is amended as follows.

15

(2)   

In section 17(1)(b) (bingo duty chargeable at 15 per cent of bingo promotion

profits), for “15” substitute “22”.

(3)   

In paragraph 5(2)(c) of Schedule 3 (maximum prize for small-scale

amusements exemption), for “£50” substitute “£70”.

(4)   

The amendment made by subsection (2) has effect in relation to accounting

20

periods beginning on or after 27 April 2009.

(5)   

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

on or after 1 June 2009.

21      

Amounts of duty on amusement machine licences

(1)   

In section 23(2) of BGDA 1981 (amount of duty payable on amusement

25

machine licence), for the table substitute—

“Table

 

Months for

Category

Category

Category

Category

Category

Category

 
 

which licence

A

B1

B2

B3

B4

C

 
 

granted







 

30

  

£

£

£

£

£

£

 
 

           1

     500

     255

     200

     200

     180

     80

 
 

           2

     985

     490

     385

     385

     350

    145

 
 

           3

    1475

     735

     585

     585

     530

    220

 
 
 

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

13

 
 

Months for

Category

Category

Category

Category

Category

Category

 
 

which licence

A

B1

B2

B3

B4

C

 
 

granted







 
  

£

£

£

£

£

£

 
 

           4

    1965

     985

     775

     775

     705

    290

 

5

 

           5

    2465

    1230

     970

     970

     875

    365

 
 

           6

    2955

    1475

    1160

    1160

    1050

    435

 
 

           7

    3445

    1720

    1355

    1355

    1225

    505

 
 

           8

    3935

    1965

    1550

    1550

    1405

    580

 
 

           9

    4430

    2215

    1745

    1745

    1580

    655

 

10

 

         10

    4920

    2465

    1935

    1935

    1755

    725

 
 

         11

    5410

    2710

    2130

    2130

    1930

    795

 
 

         12

    5625

    2815

    2215

    2215

    2010

    830”.

 
 

(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

15

Commissioners for Her Majesty’s Revenue and Customs after 4 pm on 22 April

2009.

22      

Provisions affecting amount of amusement machine licence duty

(1)   

BGDA 1981 is amended as follows.

(2)   

Section 21 (gaming machine licences) is amended as follows.

20

(3)   

Subsection (5) (excepted machines) is amended as follows.

(4)   

In paragraph (c) (machines in case of which cost of single game does not exceed

10p and maximum value of prize for winning single game does not exceed

£5)—

(a)   

in sub-paragraph (i), omit the “and” at the end,

25

(b)   

in sub-paragraph (ii), for “£5” substitute “£15”, and

(c)   

after that sub-paragraph insert—

“(iii)   

the maximum cash component of the prize for

winning a single game does not exceed £8,”.

(5)   

After that paragraph insert—

30

“(ca)   

a gaming machine in respect of which—

(i)   

the cost of a single game does not exceed £1,

(ii)   

the maximum value of the prize for winning a single

game does not exceed £50, and

(iii)   

any prize that can be won is neither money nor

35

something that can be exchanged for or used in place of

money or that can be exchanged for something other

than money, and”.

 
 

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

14

 

(6)   

After that subsection insert—

“(6)   

To the extent that a prize consists of anything other than money, its

value for the purposes of this section and sections 22 and 23 below is—

(a)   

in the case of a voucher or token that may be exchanged for, or

used in place of, an amount of money, that amount,

5

(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 who is not a

connected person, and

10

(c)   

in any other case, the cost that the person providing the

machine would incur in obtaining the prize from a person who

is not a connected person.

(7)   

Section 839 of the Income and Corporation Taxes Act 1988 (connected

persons) applies for the purposes of subsection (6).”

15

(7)   

In section 22(2) (machine in respect of which benefits for winning single game

do not exceed £8 to be “small-prize machine”), for “£8” substitute “£10”.

(8)   

Section 23 (amount of duty) is amended as follows.

(9)   

In subsection (3) (categories of machines), in the definition of Category C

gaming machine, in paragraph (ii)—

20

(a)   

for “50p” substitute “£1”, and

(b)   

for “£35” substitute “£70”.

(10)   

Omit subsection (5) (which is superseded by the amendment made by

subsection (6)).

(11)   

In consequence of the amendments made by the preceding provisions of this

25

section, omit—

(a)   

in FA 2000, in Schedule 2, paragraph 3(1)(b), and

(b)   

in FA 2007, section 9(2) and (4).

(12)   

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

1 June 2009.

30

Part 2

Income tax, corporation tax and capital gains tax

Support for business

23      

Temporary extension of loss carry back provisions

Schedule 6 contains provision for a temporary extension of provisions

35

allowing the carrying back of losses.

24      

First-year capital allowances for expenditure in 2009-2010

(1)   

Part 2 of CAA 2001 (plant and machinery allowances) has effect as if—

(a)   

in section 39 (first-year qualifying expenditure), a reference to this

section were included in the list of provisions describing first-year

40

qualifying expenditure, and

 
 

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

15

 

(b)   

in the Table in section 52(3) (amount of first-year allowances) there

were inserted at the end—

 

“Expenditure qualifying under section 24 of FA 2009

40%”.

 
 

(expenditure in 2009-2010)

  

(2)   

Expenditure is first-year qualifying expenditure under this section if—

5

(a)   

it is incurred in 2009-2010,

(b)   

it is not within any of the general exclusions in section 46(2) of CAA

2001 (subject to subsection (4)),

(c)   

it is not special rate expenditure (as defined by section 104A of CAA

2001), and

10

(d)   

it is not first-year qualifying expenditure under a provision of Chapter

4 of Part 2 of CAA 2001.

(3)   

For the purposes of this section, expenditure is incurred in 2009-2010—

(a)   

in the case of expenditure incurred by a person within the charge to

corporation tax, if it is incurred on or after 1 April 2009 but before 1

15

April 2010, and

(b)   

in the case of expenditure incurred by a person within the charge to

income tax, if it is incurred on or after 6 April 2009 but before 6 April

2010.

(4)   

General exclusion 6 in section 46(2) of CAA 2001 (expenditure on provision of

20

plant or machinery for leasing) does not prevent expenditure being first-year

qualifying expenditure under this section if the plant or machinery is provided

for leasing under an excluded lease of background plant or machinery for a

building (as defined by section 70R of that Act).

(5)   

Expressions used in this section and in Part 2 of CAA 2001 have the same

25

meaning here as in that Part of that Act, subject to subsection (6).

(6)   

In determining whether expenditure is incurred in 2009-2010, any effect of

section 12 of CAA 2001 (expenditure incurred before qualifying activity carried

on) on the time at which it is to be treated as incurred is to be disregarded.

25      

Agreements to forgo tax reliefs

30

(1)   

If—

(a)   

a person (“P”) makes arrangements under which P agrees (in whatever

terms) to forgo (to any extent) tax relief or a right to tax relief (whenever

arising), and

(b)   

the Treasury designates the arrangements for the purposes of this

35

section,

   

all relevant enactments are to have effect with such modifications as are

necessary or expedient to give effect to the agreement.

(2)   

The Treasury may not designate arrangements for the purposes of this section

unless—

40

(a)   

the arrangements have been made with the Treasury, another

government department or another public body, and

(b)   

under the arrangements, or under other arrangements, the Treasury,

another government department or another public body—

 
 

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

16

 

(i)   

guarantees or assumes a loss or other liability of P or another

person,

(ii)   

insures or indemnifies P or another person against a loss or

other liability,

(iii)   

agrees to make a payment to P or another person in respect of a

5

loss or other liability of any person (whether or not the person

to whom the payment is to be made), or

(iv)   

gives other financial support or assistance to P or another

person (whether in money or otherwise).

(3)   

If P forgoes (to any extent) tax relief or a right to tax relief under subsection

10

(1)—

(a)   

no tax relief is to be given to P or any other person by virtue of what is

forgone or anything resulting from or representing what is forgone,

and

(b)   

all relevant enactments are to have effect with such modifications as are

15

necessary or expedient to give effect to paragraph (a).

(4)   

In this section—

“relevant enactments” means—

(a)   

the Corporation Tax Acts, and

(b)   

the enactments relating to petroleum revenue tax;

20

“tax relief” means—

(a)   

a reduction (by any means) of P’s liability to any tax, or

(b)   

a payable tax credit.

(5)   

This section has effect in relation to arrangements made on or after 22 April

2009; but that does not prevent subsections (1) and (3) from having effect in

25

relation to times before 22 April 2009.

26      

Contaminated and derelict land

Schedule 7 contains provision extending Part 14 of CTA 2009 (remediation of

contaminated land) to derelict land and other provision amending that Part of

that Act.

30

27      

Venture capital schemes

Schedule 8 contains provision about venture capital schemes.

28      

Group relief: preference shares

Schedule 9 contains provision about the treatment of certain preference shares

for the purposes of group relief.

35

29      

Sale of lessor companies etc: reforms

(1)   

Schedule 10 contains provision amending Schedule 10 to FA 2006 (sale of lessor

companies etc).

 
 

 
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