House of Commons portcullis
House of Commons
Session 2010 - 11
Internet Publications
Other Bills before Parliament

Finance (No. 2) Bill


Finance (No. 2) Bill
Schedule 13 — Excise duties: compliance checks
Part 3 — Information and inspection powers

104

 

(5)   

Paragraphs (b) and (c) of subsection (4) do not apply to the extent

that the tribunal is satisfied that taking the action specified in those

paragraphs might prejudice the protection, security, collection or

management of revenues derived from duties of excise.

(6)   

A decision of the tribunal under this section is final (despite the

5

provisions of sections 11 and 13 of the Tribunals, Courts and

Enforcement Act 2007).

(7)   

The following provisions of Schedule 36 to the Finance Act 2008

apply to a notice under this section as they apply to an information

notice—

10

(a)   

paragraphs 7 and 8 (complying with notices and producing

copies of documents),

(b)   

paragraphs 15 and 16 (powers to copy and remove

documents),

(c)   

Part 4 (restrictions on powers) except paragraphs 21, 21A and

15

28, and

(d)   

Part 9 (miscellaneous provisions and interpretation) so far as

relevant to the provisions listed above.

(8)   

The powers in this section apply to information as they apply to

documents (and “documents” is to be read accordingly).

20

(9)   

Nothing in this section affects or limits section 118B.

118BB   

Inspection powers: goods-based duties

(1)   

This section applies to premises if an officer has reasonable cause to

believe that—

(a)   

the premises are used in connection with the supply,

25

importation or exportation of goods of a class or description

chargeable with a duty of excise, and

(b)   

any such goods, or documents relating to any such goods, are

on the premises.

(2)   

The officer may at any reasonable time enter and inspect the

30

premises and inspect—

(a)   

any goods found on the premises, and

(b)   

any documents found on the premises that appear to the

officer to relate to the supply, importation or exportation of

goods of a class or description chargeable to duty of excise.

35

(3)   

For the purposes of this section—

(a)   

it does not matter if the premises are used partly for a

purpose mentioned in subsection (1)(a) and partly for other

purposes (including as a dwelling), but

(b)   

the officer may not enter or inspect any part of the premises

40

that is used solely as a dwelling.

(4)   

Premises used to hold or store goods in connection with their supply,

importation or exportation are taken to be premises used in

connection with the supply, importation or exportation of goods,

regardless of who owns or occupies the premises.

45

 
 

Finance (No. 2) Bill
Schedule 13 — Excise duties: compliance checks
Part 3 — Information and inspection powers

105

 

118BC   

Inspection powers: gaming duty

(1)   

This section applies to premises if an officer has reasonable cause to

believe that section 10 gaming is taking place, has taken place or is

about to take place on the premises.

(2)   

The officer may at any reasonable time enter and inspect the

5

premises and inspect—

(a)   

accounts, records and other documents in the custody or

control of any person who is engaging, or whom the officer

reasonably suspects of engaging, in section 10 gaming or in

any activity by reason of which the person is or may become

10

liable to gaming duty, and

(b)   

any equipment that is being, or the officer reasonably

suspects of having been or of being intended to be, used on

the premises for or in connection with section 10 gaming.

(3)   

Subsection (1) does not permit an officer to enter or inspect a

15

particular part of premises if—

(a)   

the officer has no reasonable cause to believe that section 10

gaming is taking place, has taken place or is about to take

place in that part, and

(b)   

the part is used solely as a dwelling.

20

(4)   

“Section 10 gaming” means gaming to which section 10 of the

Finance Act 1997 applies.

118BD   

Inspection powers: supplementary provision

(1)   

If an officer, in the course of exercising a power under section 118BB

or 118BC, finds reason to believe that the premises are owned or used

25

by a revenue trader (within the meaning of section 112), the officer

may also exercise any power that the officer could have exercised

under section 112 if the officer had entered the premises under that

section.

(2)   

Subsections (4) to (8) of section 118B apply to documents inspected

30

under section 118BB or 118BC as they apply to documents produced

under section 118B.

(3)   

The powers under sections 118BB and 118BC include power—

(a)   

to mark items that have been inspected, and anything

containing such items, for the purpose of indicating that they

35

have been inspected, and

(b)   

to obtain and record information (whether electronically or

otherwise) relating to the premises, items and documents

that have been inspected.”

13         

In section 118C (entry and search of premises and persons), omit subsections

40

(2), (2A) and (2B).

14         

In section 118D (order for access to recorded information), in subsection (5),

for “118B and 118C” substitute “118B to 118C”.

15    (1)  

Section 118G (offences under Part 9) is amended as follows.

      (2)  

The existing provisions become subsection (1).

45

 
 

Finance (No. 2) Bill
Schedule 14 — Asbestos compensation settlements

106

 

      (3)  

After that subsection insert—

“(2)   

Part 7 of Schedule 36 to the Finance Act 2008 (penalties) applies to a

person who fails to comply with a notice under section 118BA as it

applies to a person who fails to comply with an information notice.

(3)   

Part 8 of that Schedule (offences) applies in relation to documents

5

that are or are likely to be the subject of a notice under section 118BA

as it applies in relation to documents that are or are likely to be the

subject of an information notice (with the reference to approval of the

tribunal in accordance with paragraph 3 or 5 of that Schedule being

read as a reference to approval of the tribunal in accordance with

10

section 118BA of this Act).”

16    (1)  

Section 161A (power to search premises: search warrant) is amended as

follows.

      (2)  

After subsection (2) insert—

“(2A)   

The power in subsection (2)(a) includes power to search for and

15

remove documents relating to any such thing (including documents

about title, storage and movement).”

      (3)  

In subsection (3), for “subsections (1) and (2)” substitute “subsections (1), (2)

and (2A)”.

Schedule 14

20

Section 31

 

Asbestos compensation settlements

Inheritance tax

1     (1)  

Section 58 of IHTA 1984 (relevant property) is amended as follows.

      (2)  

For the word “and” at the end of subsection (1)(e) substitute—

“(ea)   

property comprised in an asbestos compensation settlement,

25

and”.

      (3)  

After subsection (3) insert—

“(4)   

In subsection (1)(ea) above “asbestos compensation settlement”

means a settlement—

(a)   

the sole or main purpose of which is making compensation

30

payments to or in respect of individuals who have, or had

before their death, an asbestos-related condition, and

(b)   

which is made before 24 March 2010 in pursuance of an

arrangement within subsection (5) below.

(5)   

An arrangement is within this subsection if it is—

35

(a)   

a voluntary arrangement that has taken effect under Part 1 of

the Insolvency Act 1986 or Part 2 of the Insolvency (Northern

Ireland) Order 1989,

(b)   

a compromise or arrangement that has taken effect under

section 425 of the Companies Act 1985, Article 418 of the

40

Companies (Northern Ireland) Order 1986 or Part 26 of the

Companies Act 2006, or

 
 

Finance (No. 2) Bill
Schedule 14 — Asbestos compensation settlements

107

 

(c)   

an arrangement or compromise of a kind corresponding to

any of those mentioned in paragraph (a) or (b) above that has

taken effect under, or as a result of, the law of a country or

territory outside the United Kingdom.”

      (4)  

The amendments made by this paragraph are treated as having come into

5

force on 6 April 2006.

Capital gains tax

2     (1)  

Section 271 of TCGA 1992 (other miscellaneous exemptions) is amended as

follows.

      (2)  

After subsection (1)(e) insert—

10

“(ea)   

any gain accruing on the disposal by the trustees of an

asbestos compensation settlement of any property comprised

in the settlement;”.

      (3)  

After subsection (1) insert—

“(1ZA)   

In subsection (1)(ea) above “asbestos compensation settlement”

15

means a settlement—

(a)   

the sole or main purpose of which is making compensation

payments to or in respect of individuals who have, or had

before their death, an asbestos-related condition, and

(b)   

which is made before 24 March 2010 in pursuance of an

20

arrangement within subsection (1ZB) below.

(1ZB)   

An arrangement is within this subsection if it is—

(a)   

a voluntary arrangement that has taken effect under Part 1 of

the Insolvency Act 1986 or Part 2 of the Insolvency (Northern

Ireland) Order 1989,

25

(b)   

a compromise or arrangement that has taken effect under

section 425 of the Companies Act 1985, Article 418 of the

Companies (Northern Ireland) Order 1986 or Part 26 of the

Companies Act 2006, or

(c)   

an arrangement or compromise of a kind corresponding to

30

any of those mentioned in paragraph (a) or (b) above that has

taken effect under, or as a result of, the law of a country or

territory outside the United Kingdom.”

      (4)  

The amendments made by this paragraph are treated as having come into

force on 6 April 2006.

35

Income tax

3     (1)  

ITA 2007 is amended as follows.

      (2)  

In section 462(11) (overview of Part), after “charitable trusts” insert “and

section 838A for special provision about asbestos compensation

settlements”.

40

      (3)  

After section 838 (exemption from income tax for local authorities and local

 
 

Finance (No. 2) Bill
Schedule 14 — Asbestos compensation settlements

108

 

authority associations) insert—

“838A   

Asbestos compensation settlements

(1)   

The trustees of an asbestos compensation settlement are not liable to

income tax in respect of the income of the trustees.

(2)   

In this section “asbestos compensation settlement” means a

5

settlement—

(a)   

the sole or main purpose of which is making compensation

payments to or in respect of individuals who have, or had

before their death, an asbestos-related condition, and

(b)   

which is made before 24 March 2010 in pursuance of an

10

arrangement within subsection (3).

(3)   

An arrangement is within this subsection if it is—

(a)   

a voluntary arrangement that has taken effect under Part 1 of

the Insolvency Act 1986 or Part 2 of the Insolvency (Northern

Ireland) Order 1989,

15

(b)   

a compromise or arrangement that has taken effect under

section 425 of the Companies Act 1985, Article 418 of the

Companies (Northern Ireland) Order 1986 or Part 26 of the

Companies Act 2006, or

(c)   

an arrangement or compromise of a kind corresponding to

20

any of those mentioned in paragraph (a) or (b) that has taken

effect under, or as a result of, the law of a country or territory

outside the United Kingdom.”

      (4)  

The amendments made by sub-paragraphs (2) and (3) are treated as having

had effect for the tax year 2007-08 and subsequent tax years.

25

      (5)  

ICTA is treated as having had effect for the tax year 2006-07 with an

amendment, after section 518 of that Act, which corresponds to that made by

sub-paragraph (3).

 
 

 
previous section contents
 
House of Commons home page Houses of Parliament home page House of Lords home page search page enquiries

© Parliamentary copyright 2010
Revised 29 October 2010