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Finance Bill
Schedule 3 — VAT: supplementary charge and orders changing rate
Part 5 — Administration and interpretation

81

 

date earlier than the due date, it is to be treated as only carrying interest from

the due date.

Adjustment of contracts following the VAT change

21    (1)  

This paragraph applies where—

(a)   

a contract for the supply of goods or services is made before the date

5

of the VAT change, and

(b)   

there is a supplementary charge under this Schedule on the supply.

      (2)  

The consideration for the supply is to be increased by an amount equal to the

supplementary charge, unless the contract provides otherwise.

Invoices

10

22         

Regulations under paragraph 2A of Schedule 11 to VATA 1994 (VAT

invoices) may make provision about the provision, replacement or

correction of invoices in connection with a supplementary charge under this

Schedule.

Orders under this Schedule

15

23    (1)  

An order under this Schedule is to be made by statutory instrument.

      (2)  

A statutory instrument containing an order under this Schedule is subject to

annulment in pursuance of a resolution of the House of Commons, unless it

is an instrument to which sub-paragraph (4) applies.

      (3)  

Sub-paragraph (4) applies to a statutory instrument containing an order

20

made under paragraph 10 (or under that paragraph and under other

provisions) which extends the supplies that are subject to a supplementary

charge under this Schedule.

      (4)  

An instrument to which this sub-paragraph applies—

(a)   

must be laid before the House of Commons, and

25

(b)   

ceases to have effect at the end of the period of 28 days beginning

with the day on which it was made unless it is approved during that

period by a resolution of the House of Commons.

      (5)  

In reckoning the period of 28 days no account is to be taken of any time

during which Parliament is dissolved or prorogued or during which the

30

House of Commons is adjourned for more than 4 days.

      (6)  

The order ceasing to have effect does not affect—

(a)   

anything previously done under it, or

(b)   

the making of a new order.

Interpretation: general

35

24    (1)  

Expressions used in this Schedule and in VATA 1994 have the same meaning

in this Schedule as in that Act.

      (2)  

In this Schedule—

(a)   

“treated as taking place” means treated as taking place for the

purposes of the charge to VAT, and

40

 
 

Finance Bill
Schedule 4 — Vehicle excise duty: further provision about rates of duty etc

82

 

(b)   

references to the person by or to whom a supply is made (however

expressed) are to the person by or to whom the supply is treated as

being made for the purposes of VATA 1994.

Part 6

Amendments of VATA 1994

5

25    (1)  

VATA 1994 is amended as follows.

      (2)  

In section 2(2) (orders increasing or decreasing rate of VAT), after “such

order” insert “that has not previously expired or been revoked”.

      (3)  

In section 97 (orders, rules and regulations), after subsection (4) insert—

“(4A)   

Where an order under section 2(2) is in force, the reference in

10

subsection (4)(c)(i) of this section to the rate of VAT in force under

section 2 at the time of the making of an order is a reference to the

rate which would be in force at that time if no such order had been

made.”

Schedule 4

15

Section 14

 

Vehicle excise duty: further provision about rates of duty etc

1          

VERA 1994 is amended as follows.

2     (1)  

Section 3 (duration of licences) is amended as follows.

      (2)  

In subsection (4)(b), for “a licence taken out on the first registration under

this Act of” substitute “the first vehicle licence for”.

20

      (3)  

Insert at the end—

“(7)   

Neither subsection (2) nor any order under subsection (3) permits the

first vehicle licence for a vehicle to be taken out for a period of less

than twelve months if the annual rate of vehicle excise duty

chargeable on the licence would be lower if it were not the first

25

vehicle licence for the vehicle.”

3     (1)  

Section 19 (rebates) is amended as follows.

      (2)  

In subsection (1), for “from the Secretary of State the amount specified in

subsection (2)” substitute “the relevant amount from the Secretary of State”.

      (3)  

Omit subsection (2).

30

      (4)  

After subsection (3) insert—

“(3A)   

Subject to subsection (3B), the relevant 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

35

application is made.

(3B)   

Where—

(a)   

the licence is the first vehicle licence for the vehicle

 
 

Finance Bill
Schedule 4 — Vehicle excise duty: further provision about rates of duty etc

83

 

(b)   

the application is made by virtue of paragraph (d), (e) or (f) of

subsection (3), and

(c)   

the annual rate of duty rate chargeable on the licence (at the

time when it was taken out) would have been lower if it had

not been the first vehicle licence for the vehicle,

5

   

the relevant amount is an amount equal to one-twelfth of that lower

annual rate of duty in respect of each such complete month.”

4     (1)  

Section 62 (definitions) is amended as follows.

      (2)  

In subsection (1), after the definition of “exempt vehicle” insert—

““first vehicle licence”, in relation to a vehicle, means (subject to

10

subsections (1B) and (1C)) the vehicle licence for the vehicle

on the issue of which the vehicle is first registered under this

Act (so that, if the vehicle is first registered on the issue of a

nil licence, there is no first vehicle licence in relation to it),”.

      (3)  

After subsection (1A) insert—

15

(1B)   

Where a vehicle is first registered under this Act on the issue of a

temporary licence, the “first vehicle licence” in relation to the vehicle

is the first vehicle licence subsequently issued for it.

(1C)   

Where a vehicle—

(a)   

has been registered under the law of a country or territory

20

outside the United Kingdom,

(b)   

is first registered under this Act more than 6 months after the

time when it was first registered as mentioned in paragraph

(a), and

(c)   

has travelled more than 6,000 kilometres under its own

25

power before it is first registered under this Act,

   

there is no first vehicle licence in relation to the vehicle.”

5     (1)  

Schedule 1 (annual rates of duty) is amended as follows.

      (2)  

In paragraph 1A (vehicles to which Part 1A applies)—

(a)   

in sub-paragraph (1)(a), after “registered”, and

30

(b)   

in sub-paragraph (5), after “registration”,

           

insert “, under this Act or under the law of a country or territory outside the

United Kingdom,”.

      (3)  

In paragraph 1C (the reduced rate)—

(a)   

in sub-paragraph (3)(a), after “registration” insert “, under this Act or

35

under the law of a country or territory outside the United

Kingdom,”,

(b)   

in sub-paragraph (3)(b), for “its” substitute “that”, and

(c)   

in sub-paragraph (4), after “registration” insert “under this Act”.

      (4)  

In paragraph 1H (vehicles to which Part 1B applies)—

40

(a)   

in sub-paragraph (1)(a), after “registered”, and

(b)   

in sub-paragraph (3), after “registration”,

           

insert “, under this Act or under the law of a country or territory outside the

United Kingdom,”.

 
 

Finance Bill
Schedule 5 — Air passenger duty

84

 

      (5)  

In paragraph 1K(a) (pre-2007 lower-emission vans), after “registered” insert

“, under this Act or under the law of a country or territory outside the United

Kingdom,”.

      (6)  

In paragraph 1M(a) (post-2008 lower-emission vans), after “registered”

insert “, under this Act or under the law of a country or territory outside the

5

United Kingdom,”.

6     (1)  

Paragraph 25 of Schedule 2 (exempt vehicles: light passenger vehicles with

low CO2 emissions) is re-numbered as sub-paragraph (1) of that paragraph.

      (2)  

After that sub-paragraph insert—

    “(2)  

A vehicle is an exempt vehicle for the appropriate period if—

10

(a)   

it is a vehicle to which Part 1A of Schedule 1 applies, and

(b)   

the applicable CO2 emissions figure (as defined in

paragraph 1A(3) and (4) of that Schedule) exceeds 100g/

km but does not exceed 130g/km.

      (3)  

“The appropriate period” is the period for which (if the vehicle

15

were not an exempt vehicle by virtue of sub-paragraph (2)) the

first vehicle licence for the vehicle would (if taken out) have

effect.”

7     (1)  

The amendments made by this Schedule have effect in relation to licences

taken out on or after 1 April 2010.

20

      (2)  

But the amendments made by paragraph 5 do not have effect in relation to

vehicles first registered under this Act before that date.

Schedule 5

Section 17

 

Air passenger duty

Amendments

25

1          

Chapter 4 of Part 1 of FA 1994 (air passenger duty) is amended as follows.

2     (1)  

Section 30 (rates of duty) is amended as follows.

      (2)  

After subsection (8) insert—

“(8A)   

The Treasury may by order amend Schedule 5A.”

      (3)  

Omit subsections (9) to (9B).

30

3          

For section 39 substitute—

“39     

Schemes for simplified operation of Chapter

(1)   

This section applies if the Commissioners consider that, having

regard to difficulties encountered or expected to be encountered by

any registered operator in obtaining and recording information

35

about passengers and their journeys, it is appropriate for this

Chapter to have effect in relation to the registered operator in

accordance with a special accounting scheme.

 
 

Finance Bill
Schedule 5 — Air passenger duty

85

 

(2)   

The Commissioners may agree with the registered operator that this

Chapter is to have effect in relation to the registered operator in

accordance with a special accounting scheme agreed between the

Commissioners and the registered operator (but subject to

subsection (4)).

5

(3)   

A special accounting scheme is a scheme which makes provision for

methods of calculating—

(a)   

how many persons are to be regarded for the purposes of this

Chapter as chargeable passengers carried by chargeable

aircraft operated by a registered operator, and

10

(b)   

how many of those are to be so regarded as having been so

carried on journeys in respect of which duty is chargeable at

any particular rate.

(4)   

The Commissioners may publish a notice specifying terms and

conditions subject to which special accounting schemes are to have

15

effect.

(5)   

Where the Commissioners and a registered operator have agreed

that this Chapter is to have effect in relation to the registered

operator in accordance with a special accounting scheme, this

Chapter has effect in relation to the registered operator in accordance

20

with the scheme (and with any notice under subsection (4) which has

been published by the Commissioners and not withdrawn) for the

period agreed by the Commissioners and the registered operator.

(6)   

The Commissioners and the registered operator may at any time

agree to vary the special accounting scheme for the future.

25

(7)   

The Commissioners may at any time terminate the operation of the

special accounting scheme—

(a)   

on the application of the registered operator, or

(b)   

where they have reasonable grounds for doing so,

   

by giving notice to the registered operator.”

30

4          

In section 42(4) (orders), after “passengers” insert “, or to increase the rate of

air passenger duty to be charged on the carriage of any chargeable

passengers whose journeys end in any place,”.

5          

After Schedule 5 insert—

“Schedule 5A

35

       Air passenger duty: territories etc

Part 1

Part 1 territories 

 

Albania

Finland

Latvia

Portugal

 
    

(including

 

40

    

Madeira)

 
 

Algeria

France (including

Libya

Romania

 
  

Corsica)

   
 
 

Finance Bill
Schedule 5 — Air passenger duty

86

 
 

Andorra

Germany

Liechtenstein

Russian

 
    

Federation, west of

 
    

the Urals

 
 

Austria

Gibraltar

Lithuania

San Marino

 
 

Azores

Greece

Luxembourg

Serbia

 

5

 

Belarus

Greenland

Former Yugoslav

Slovak Republic

 
   

Republic of

  
   

Macedonia

  
 

Belgium

Guernsey

Malta

Slovenia

 
 

Bosnia and

Hungary

Moldova

Spain (including

 

10

 

Herzegovina

  

the Balearic Islands

 
    

and the Canary

 
    

Islands)

 
 

Bulgaria

Iceland

Monaco

Sweden

 
 

Croatia

Republic of Ireland

Montenegro

Switzerland

 

15

 

Cyprus

Isle of Man

Morocco

Tunisia

 
 

Czech Republic

Italy (including

Netherlands

Turkey

 
  

Sicily  and

   
  

Sardinia)

   
 

Denmark

Jersey

Norway (including

Ukraine

 

20

 

(including the

 

Svalbard)

  
 

Faroe Islands)

    
 

Estonia

Republic of

Poland

Western Sahara

 
  

Kosovo

   
 

Part 2

25

Part 2 territories

 

Afghanistan

Egypt

Kazakhstan

Saudi Arabia

 
 

Armenia

Equatorial Guinea

Kuwait

Senegal

 
 

Azerbaijan

Eritrea

Kyrgyzstan

Sierra Leone

 
 

Bahrain

Ethiopia

Lebanon

Sudan

 

30

 

Benin

Gabon

Liberia

Syria

 
 

Bermuda

Gambia

Mali

Tajikistan

 
 

Burkina Faso

Georgia

Mauritania

Togo

 
 

Cameroon

Ghana

Niger

Turkmenistan

 
 

Canada

Guinea

Nigeria

Uganda

 

35

 

Cape Verde

Guinea-Bissau

Oman

United Arab

 
    

Emirates

 
 

Central African

Iran

Pakistan

United States of

 
 

Republic

  

America

 
 

Chad

Iraq

Qatar

Uzbekistan

 

40

 
 

Finance Bill
Schedule 5 — Air passenger duty

87

 
 

Democratic

Israel and the

Russian

Yemen

 
 

Republic of Congo

Occupied

Federation, east of

  
  

Palestinian

the Urals

  
  

Territories

   
 

Republic of Congo

Ivory Coast

Saint Pierre and

  

5

   

Miquelon

  
 

Djibouti

Jordan

Sao Tome and

  
   

Principe

  
 

Part 3

Part 3 territories

10

 

Angola

Cuba

Macao SAR

Saint Helena

 
 

Anguilla

Dominica

Madagascar

Saint Lucia

 
 

Antigua and

Dominican

Malawi

Saint Martin

 
 

Barbuda

Republic

   
 

Aruba

Ecuador

Maldives

Saint Vincent

 

15

    

and the Grenadines

 
 

Ascension Island

El Salvador

Martinique

Seychelles

 
 

Bahamas

French Guiana

Mauritius

Somalia

 
 

Bangladesh

Grenada

Mayotte

South Africa

 
 

Barbados

Guadeloupe

Mexico

Sri Lanka

 

20

 

Belize

Guatemala

Mongolia

Suriname

 
 

Bhutan

Guyana

Montserrat

Swaziland

 
 

Botswana

Haiti

Mozambique

Tanzania

 
 

Brazil

Honduras

Namibia

Thailand

 
 

British Indian

Hong Kong SAR

Nepal

Trinidad and

 

25

 

Ocean Territory

  

Tobago

 
 

British Virgin

India

Netherlands

Turks and Caicos

 
 

Islands

 

Antilles

Islands

 
 

Burma

Jamaica

Nicaragua

Venezuela

 
 

Burundi

Japan

Panama

Vietnam

 

30

 

Cayman Islands

Kenya

Puerto Rico

Virgin Islands

 
 

China

North Korea

Reunion

Zambia

 
 

Colombia

South Korea

Rwanda

Zimbabwe”.

 
 

Comoros

Laos

Saint Barthelemy

  
 

Costa Rica

Lesotho

Saint Christopher

  

35

   

and Nevis (St

  
   

Kitts and Nevis)

  
 
 

 
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