Finance Bill

House of Commons

Session 2008 - 09
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Other Bills before Parliament

Finance Bill

Finance Bill
Part 8 — Miscellaneous
58

111
Customs and excise enforcement: movements between member States
(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”.
5
(3)
After that subsection insert—
“(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.”
10
(4)
In subsection (2), for the words from the beginning to “or that” substitute “The
second case in which a power to which this section applies may be exercised as
mentioned in subsection (1) above is where”.
Part 8
Miscellaneous
15
Gambling
112
VAT exemption for gaming participation fees
(1)
Group 4 of Schedule 9 to VATA 1994 (exemptions: betting, gaming and
lotteries) is amended as follows.
(2)
In Note (1), omit paragraph (b) (granting of right to play game of chance not
20
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/
2163) is revoked.
(5)
Omit—
25
(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
27 April 2009.
113
Gaming duty
30
(1)
FA 1997 is amended as follows.
(2)
Section 10 (gaming duty) is amended as follows.
(3)
For subsection (2) substitute—
“(2)
Subject as follows, this section applies to—
(a)
casino games, and
35
(b)
equal chance gaming.”
(4)
In subsection (3)(e), after “Article” insert “77,”.

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59

(5)
After subsection (3A) insert—
“(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”.
5
(7)
For subsection (4) substitute—
“(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
10
clubs and miners’ welfare institutes), or
(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.”
(8)
In subsection (5), for “add to the games mentioned in subsection (2) above”
15
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”.
(10)
Section 14 (subordinate legislation) is amended as follows.
20
(11)
In subsection (2), for “or 11(11) above” 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
does not provide for any game to be a casino game or equal chance
25
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—
““casino games” means games of chance which are not equal
30
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
playing or staking against a bank (however described,
35
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
none of the conditions specified in Article 55 of the
40
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—

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(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
5
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
10
bingo if remote gaming duty is charged on the provision of facilities for
playing it.”
(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
15
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
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.
20
(2)
Section 25 (meaning of “amusement machine”) is amended as follows.
(3)
For subsection (1A) substitute—
“(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).
25
(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,
(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
30
(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
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”.
35
(5)
Insert at the end—
“(5)
For the purposes of this section—
(a)
a reference to gambling is to—
(i)
gaming, or
(ii)
betting,
40

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(b)
“machine” has the same meaning as in the Gambling Act 2005
(see section 235(3)(a)),
(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
5
to be used for that purpose,
(d)
a reference to a machine being adapted includes a reference to
computer software being installed on it,
(e)
“real” has the meaning given by section 353(1) of the Gambling
Act 2005,
10
(f)
“game of chance” has the meaning given by section 6(2) of that
Act, and
(g)
“bingo” includes any version of that game, whatever name it is
called.
(6)
The Treasury may by order amend this section.”
15
(6)
In section 33 (interpretation)—
(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—
20
“(1A)
In the definition of “gaming” in subsection (1)—
(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
25
(c)
“prize” does not include the opportunity to play the
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.
30
(2)
In paragraph 44 (reduced rate for supplies covered by climate change
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
35
for reduced-rate supply,
(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
40
some of the provision) specifying one or more descriptions of
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
45

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within a description that is specified (by virtue of sub-paragraph
(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
5
the specification is made, and
(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
10
Articles 87 and 88 of the Treaty establishing the European
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).”
15
(3)
In consequence of subsection (2)—
(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”.
20
117
Removal of reduced rate where targets not met
(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
25
period begins on or after 1 April 2009.
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.
30
119
Requirement to destroy replaced vehicle registration documents
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,”.
35
120
Hydrocarbon oil duties: minor amendments
(1)
HODA 1979 is amended as follows.
(2)
In section 11(1) (rebate on heavy oil), omit “12”.

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(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”.
(4)
The amendment made by subsection (3) has effect in relation to supplies on or
after the day on which this Act is passed.
5
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.
(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
10
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—
“(5)
This Chapter applies to agricultural property only if it is in—
(a)
the United Kingdom, the Channel Islands or the Isle of Man, or
15
(b)
a state, other than the United Kingdom, which is an EEA state
(within the meaning given by Schedule 1 to the Interpretation
Act 1978) at the time of the transfer of value in question.”
(4)
In section 116 (agricultural property relief: the relief), insert at the end—
“(8)
In its application to property outside the United Kingdom, the Channel
20
Islands and the Isle of Man, this section has effect as if any reference to
a right or obligation under the law of any part of the United Kingdom
were a reference to an equivalent right or obligation under the law
governing dispositions of that property.”
(5)
In section 125 (woodlands relief), in paragraph (a) of subsection (1), omit “in
25
the United Kingdom”.
(6)
After that subsection insert—
“(1A)
But this section applies only if the land is in the United Kingdom or
another state which is an EEA state (within the meaning given by
Schedule 1 to the Interpretation Act 1978) at the time of the person’s
30
death.”
(7)
The amendments made by this section have effect in relation to transfers of
value where the tax payable but for this section (or, in the case of tax payable
by instalments, the last instalment of that tax)—
(a)
would have been due on or after 22 April 2009, or
35
(b)
was paid or due on or after 23 April 2003.
(8)
Where tax falling within subsection (7) has been paid, Her Majesty’s Revenue
and Customs must repay the tax (together with interest under section 235(1) of
IHTA 1984) if, but only if, a claim for repayment is made on or before—
(a)
the date determined under section 241(1) of that Act as the last date on
40
which the claim may be made, or
(b)
21 April 2010,

whichever is later.

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(9)
Where, by virtue of the amendments made by subsections (5) and (6), an
election is made under section 125 of IHTA 1984, that election must be made
on or before—
(a)
the date determined under section 125(3) as the last date on which the
election may be made, or
5
(b)
21 April 2010,

whichever is later.
122
Alternative finance investment bonds
Schedule 61 contains provision about the taxation of chargeable gains, stamp
duty land tax and capital allowances for and in connection with arrangements
10
falling within section 48A of FA 2005 (alternative finance investment bonds).
123
Mutual societies: tax consequences of transfers of business etc
(1)
The Treasury may by regulations make provision for and in connection with—
(a)
the tax consequences of a transfer of all or part of the business or
engagements of a mutual society,
15
(b)
the tax consequences of an amalgamation of mutual societies, and
(c)
the tax consequences of the conversion of a mutual society into a
company.
(2)
“Mutual society” means—
(a)
a building society incorporated (or deemed to be incorporated) under
20
the Building Societies Act 1986,
(b)
a friendly society within the meaning of the Friendly Societies Act 1992,
or
(c)
an industrial and provident society registered (or deemed to be
registered) under the Industrial and Provident Societies Act 1965.
25
(3)
Regulations under this section may, in particular, make provision about—
(a)
relief from tax in respect of losses,
(b)
capital allowances,
(c)
the taxation of chargeable gains (including provision conferring relief
for specified transfers and amalgamations),
30
(d)
the treatment of intangible fixed assets and goodwill,
(e)
the treatment of loan relationships (and matters treated as loan
relationships),
(f)
the treatment of derivative contracts (and contracts treated as
derivative contracts),
35
(g)
exemption or other relief from stamp duty, stamp duty reserve tax or
stamp duty land tax, and
(h)
the treatment of arrangements the purpose, or one of the main
purposes, of which is to secure a tax advantage.
(4)
Regulations under this section may, in particular—
40
(a)
modify enactments and instruments relating to tax (whenever passed
or made),
(b)
make different provision for different cases or different purposes, and