Finance Bill

House of Commons

Session 2008 - 09
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Finance Bill

Finance Bill
Part 7 — Administration
55

108
Miscellaneous amendments
Schedule 57 contains amendments of Schedule 24 to FA 2007 (penalties for
errors), Schedule 41 to FA 2008 (penalties for failure to notify and certain other
wrongdoing) and certain other enactments relating to penalties.
Miscellaneous
5
109
Recovery of debts using PAYE regulations
Schedule 58 contains provision about the recovery of debts by means of
deductions from PAYE income in accordance with PAYE regulations.
110
Managed payment plans
(1)
This section applies where a person (“P”) has entered into a managed payment
10
plan in respect of—
(a)
an amount on account of income tax which is to become payable in
accordance with section 59A(2) of TMA 1970,
(b)
an amount of income tax or capital gains tax which is to become
payable in accordance with section 59B of that Act, or
15
(c)
an amount of corporation tax which is to become payable in accordance
with section 59D of that Act.
(2)
P enters into a managed payment plan in respect of an amount if—
(a)
P agrees to pay, and an officer of Revenue and Customs agrees to accept
payment of, the amount by way of instalments,
20
(b)
the instalments to be paid before the due date are balanced by the
instalments to be paid after it (see subsections (8) to (10)), and
(c)
the agreement meets such other requirements as may be specified in
regulations made by the Commissioners.
(3)
But this section does not apply, in the case of an amount of corporation tax,
25
where an arrangement under section 36 of FA 1998 (payment of tax by
members of a group of companies) has been made in relation to the amount.
(4)
If P pays all the instalments in accordance with the plan, P is to be treated as
having paid, on the due date, the total of those instalments.
(5)
If P—
30
(a)
pays one or more instalments in accordance with the plan, but
(b)
fails to pay one or more later instalments in accordance with it,

P is to be treated as having paid, on the due date, the total of the instalments
paid before the failure (but this is subject to subsection (6)).
(6)
Where—
35
(a)
subsection (5) applies in a case where the first failure to pay an
instalment occurs before the due date, and
(b)
P would (in the absence of a managed payment plan) be entitled to be
paid interest on any amount paid before that date,

then, despite that subsection, P is entitled to be paid that interest.
40
(7)
Where—
(a)
subsection (5) applies,

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(b)
P makes one or more payments after the due date (whether or not in
accordance with the plan), and
(c)
an officer of Revenue and Customs gives P a notice specifying any or
all of those payments,

P is not liable to a penalty or surcharge for failing to pay the amount of the
5
specified payments on or before the due date.
(8)
The instalments to be paid before the due date are balanced by those to be paid
after it if the time value of the instalments to be paid before that date is equal,
or approximately equal, to the time value of the instalments to be paid after it.
(9)
The time value of the instalments to be paid before the due date is the total of
10
the time value of each of the instalments to be paid before that date (and the
time value of the instalments to be paid after that date is to be construed
accordingly).
(10)
The time value of an instalment is—
A x T


where—
15

A is the amount of the instalment, and

T is the number of days before, or after, the due date that the instalment
is to be paid.
(11)
The Commissioners may by regulations make provision for the purpose of
determining when an amount is approximately equal to another amount.
20
(12)
Regulations under this section may make different provision for different
cases.
(13)
In this section—
“the Commissioners” means the Commissioners for Her Majesty’s
Revenue and Customs;
25
“the due date”, in relation to an amount mentioned in subsection (1),
means the date on which it becomes payable.
(14)
This section has effect where the due date falls after the date on which this Act
is passed.
111
Customs and excise enforcement: movements between member States
30
(1)
Section 4 of F(No.2)A 1992 (cases in which customs and excise enforcement
powers can be used in relation to movement of persons or things between
member States) is amended as follows.
(2)
In subsection (1), after “subsection” insert “(1A) or”.
(3)
After that subsection insert—
35
“(1A)
The first case in which a power to which this section applies may be
exercised as mentioned in subsection (1) above is where it is necessary
to exercise the power in order to ascertain whether the movement in
question is or is not in fact between different member States.”
(4)
In subsection (2), for the words from the beginning to “or that” substitute “The
40
second case in which a power to which this section applies may be exercised as
mentioned in subsection (1) above is where”.

Finance Bill
Part 8 — Miscellaneous
57

Part 8
Miscellaneous
Gambling
112
VAT exemption for gaming participation fees
(1)
Group 4 of Schedule 9 to VATA 1994 (exemptions: betting, gaming and
5
lotteries) is amended as follows.
(2)
In Note (1), omit paragraph (b) (granting of right to play game of chance not
exempted unless within Note (5)).
(3)
Omit Notes (5) to (11).
(4)
The Value Added Tax (Betting, Gaming and Lotteries) Order 2007 (S.I. 2007/
10
2163) is revoked.
(5)
Omit—
(a)
in BGDA 1981, sections 19(3)(b) and 26E(2), and
(b)
in FA 1997, section 11(9)(a).
(6)
The amendments made by this section are treated as having come into force on
15
27 April 2009.
113
Gaming duty
(1)
FA 1997 is amended as follows.
(2)
Section 10 (gaming duty) is amended as follows.
(3)
For subsection (2) substitute—
20
“(2)
Subject as follows, this section applies to—
(a)
casino games, and
(b)
equal chance gaming.”
(4)
In subsection (3)(e), after “Article” insert “77,”.
(5)
After subsection (3A) insert—
25
“(3AA)
This section does not apply to the playing of a game in respect of which
bingo duty or lottery duty is chargeable or would be chargeable but for
an express exception.”
(6)
In subsection (3C)(a), after “in” insert “organising or”.
(7)
For subsection (4) substitute—
30
“(4)
This section does not apply—
(a)
in Great Britain, to the playing of a game where the provision of
facilities for its playing falls within section 269 of the Gambling
Act 2005 (equal chance gaming at members’ or commercial
clubs and miners’ welfare institutes), or
35
(b)
in Northern Ireland, to the playing of a game to which Article
128 of the Betting, Gaming, Lotteries and Amusements
(Northern Ireland) Order 1985 (certain clubs) applies.”

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(8)
In subsection (5), for “add to the games mentioned in subsection (2) above”
substitute “provide that any specified game is or is not to be a casino game or
equal chance gaming for the purposes of this section”.
(9)
In subsection (6), for “this section, or in an order under subsection (5) above,”
substitute “an order under subsection (5) above”.
5
(10)
Section 14 (subordinate legislation) is amended as follows.
(11)
In subsection (2), for “or 11(11)” substitute “providing that any game is to be a
casino game or equal chance gaming or any order under section 11(11)”.
(12)
Insert at the end—
“(4)
A statutory instrument containing an order under section 10(5) that
10
does not provide for any game to be a casino game or equal chance
gaming is subject to annulment in pursuance of a resolution of the
House of Commons.”
(13)
Section 15(3) (interpretation) is amended as follows.
(14)
After the definition of “accounting period” insert—
15
““casino games” means games of chance which are not equal
chance gaming (but subject to any order under section 10(5));”.
(15)
After the definition of “dutiable gaming” insert—
““equal chance gaming”—
(a)
in Great Britain, means gaming which does not involve
20
playing or staking against a bank (however described,
and whether or not controlled or administered by a
player) and in which the chances are equally favourable
to all participants, and
(b)
in Northern Ireland, means gaming in respect of which
25
none of the conditions specified in Article 55 of the
Betting, Gaming, Lotteries and Amusements (Northern
Ireland) Order 1985 is met,
(but subject to any order under section 10(5));”.
(16)
In consequence of the preceding provisions, omit—
30
(a)
in FA 2002, section 11, and
(b)
in FA 2007, in Schedule 25, paragraph 17(4).
(17)
The amendments made by this section are to be treated as having come into
force on 27 April 2009.
(18)
But those amendments do not give rise to a duty under paragraph 6(3)(a) of
35
Schedule 1 to FA 1997 (requirement to notify premises) before 25 May 2009.
114
Remote bingo etc
(1)
BGDA 1981 is amended as follows.
(2)
In section 17 (bingo duty), after subsection (2) insert—
“(2A)
Bingo duty is not charged on the playing of bingo which is not licensed
40
bingo if remote gaming duty is charged on the provision of facilities for
playing it.”

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(3)
In section 26H (remote gaming duty: exemptions), after subsection (2) insert—
“(2A)
Subsection (2) does not prevent remote gaming duty being charged in
respect of the provision of facilities for the playing of bingo which is not
licensed bingo (as to the meaning of which terms see section 20C).”
(4)
The amendments made by this section have effect in relation to games of bingo
5
that begin to be played on or after 1 July 2009.
115
Meaning of “gaming machine” and “gaming”
(1)
BGDA 1981 is amended as follows.
(2)
Section 25 (meaning of “amusement machine”) is amended as follows.
(3)
For subsection (1A) substitute—
10
“(1A)
In this Act “gaming machine” means a machine which is designed or
adapted for use by individuals for gambling (whether or not it can also
be used for other purposes).
(1B)
But a machine is not a gaming machine to the extent that—
(a)
it is designed or adapted for use to bet on future real events,
15
(b)
it is designed or adapted for the playing of bingo and bingo
duty is, or but for paragraphs 1 to 5 of Schedule 3 would be,
charged under section 17 on the playing of the bingo, or
(c)
it is designed or adapted for the playing of a real game of chance
and the playing of the game is dutiable gaming for the purposes
20
of section 10 of the Finance Act 1997, or would be dutiable
gaming but for subsections (3) and (4) of that section.”
(4)
In subsection (1C), for “constructed” substitute “designed”.
(5)
Insert at the end—
“(5)
For the purposes of this section—
25
(a)
a reference to gambling is to—
(i)
gaming, or
(ii)
betting,
(b)
“machine” has the same meaning as in the Gambling Act 2005
(see section 235(3)(a)),
30
(c)
a reference to a machine being designed or adapted for a
purpose includes a reference to a machine to which anything
has been done as a result of which it can reasonably be expected
to be used for that purpose,
(d)
a reference to a machine being adapted includes a reference to
35
computer software being installed on it,
(e)
“real” has the meaning given by section 353(1) of the Gambling
Act 2005,
(f)
“game of chance” has the meaning given by section 6(2) of that
Act, and
40
(g)
“bingo” includes any version of that game, whatever name it is
called.
(6)
The Treasury may by order amend this section.”
(6)
In section 33 (interpretation)—

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(a)
in subsection (1), in the definition of “gaming”, omit “within the
meaning of Group 4 of Schedule 9 to the Value Added Tax Act 1994”,
and
(b)
after that subsection insert—
“(1A)
In the definition of “gaming” in subsection (1)—
5
(a)
“game of chance” has the meaning given by section 6(2)
of the Gambling Act 2005,
(b)
“playing a game of chance” is to be read in accordance
with section 6(3) of that Act, and
(c)
“prize” does not include the opportunity to play the
10
game again.”
Climate change levy
116
Taxable commodities ineligible for reduced-rate supply
(1)
Schedule 6 to FA 2000 (climate change levy) is amended as follows.
(2)
In paragraph 44 (reduced rate for supplies covered by climate change
15
agreement), after sub-paragraph (2) insert—
   “(2A)
The Secretary of State may—
(a)
give a certificate that includes provision specifying one or
more descriptions of taxable commodity as being ineligible
for reduced-rate supply,
20
(b)
vary a certificate so that it includes provision (or further
provision) specifying one or more descriptions of taxable
commodity as being ineligible for reduced-rate supply, or
(c)
vary a certificate so that it ceases to include the provision (or
some of the provision) specifying one or more descriptions of
25
taxable commodity as being ineligible for reduced-rate
supply.
     (2B)
A taxable supply of a taxable commodity to a facility is not a
reduced-rate supply if, at the time of the supply, the commodity falls
within a description that is specified (by virtue of sub-paragraph
30
(2A)(a) or (b)) in the certificate relating to the facility.
     (2C)
The Secretary of State may only include provision in a certificate by
virtue of sub-paragraph (2A)(a) or (b)—
(a)
if the Treasury consents in writing to the specification before
the specification is made, and
35
(b)
if, and for as long as, the result is compatible with the
common market by virtue of Commission Regulation (EC)
No. 800/2008 of 6 August 2008 declaring certain categories of
aid compatible with the common market in application of
Articles 87 and 88 of the Treaty establishing the European
40
Community (General block exemption Regulation) (O.J. 2008
No. L214/3).
     (2D)
In sub-paragraphs (2A) to (2C) “certificate” means such a certificate
as is mentioned in sub-paragraph (1)(a).”
(3)
In consequence of subsection (2)—
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(a)
in paragraph 44(2), after “subject to” insert “sub-paragraphs (2A) to
(2D) and”, and
(b)
in paragraph 147 (general interpretation), in the definition of “reduced-
rate supply”, after “subject to” insert “paragraph 44(2A) to (2D) and”.
117
Removal of reduced rate where targets not met
5
(1)
Schedule 59 contains provision for removing the reduced rate of climate
change levy where the targets set by a climate change agreement have not been
met.
(2)
The amendments made by that Schedule have effect where the certification
period begins on or after 1 April 2009.
10
Other environmental taxes and duties
118
Landfill tax: prescribed landfill site activities
Schedule 60 contains provision about charging landfill tax on prescribed
activities at landfill sites.
119
Requirement to destroy replaced vehicle registration documents
15
In section 22(1) of VERA 1994 (registration regulations), after paragraph (h)
insert—
“(ha)
require the destruction of a registration document where a new
registration document is issued in place of it,”.
120
Hydrocarbon oil duties: minor amendments
20
(1)
HODA 1979 is amended as follows.
(2)
In section 11(1) (rebate on heavy oil), omit “12”.
(3)
In section 14D(2) (civil penalty for supplying biodiesel or bioblend intending
that it will be put to prohibited use), for “intending” substitute “having reason
to believe”.
25
(4)
The amendment made by subsection (3) has effect in relation to supplies on or
after the day on which this Act is passed.
Other matters
121
Inheritance tax: agricultural property and woodlands relief for EEA land
(1)
Part 5 of IHTA 1984 (miscellaneous reliefs) is amended as follows.
30
(2)
In section 115 (agricultural property relief: preliminary), in subsection (3),
insert at the end “(or, in the case of property outside the United Kingdom, the
Channel Islands and the Isle of Man, if it were subject to provisions equivalent
in effect to such a covenant).”
(3)
For subsection (5) of that section substitute—
35
“(5)
This Chapter applies to agricultural property only if it is in—