Finance (No. 2) Bill

House of Commons

Session 2010 - 11
Internet Publications
Other Bills before Parliament

Finance (No. 2) Bill

Finance (No. 2) Bill
Part 2 — Other taxes and duties
15

17
Reinvestment of ring fence assets: acquisition by member of group
(1)
After section 198G of TCGA 1992 insert—
“198H
Acquisition by member of same group
Section 198A or 198B is to apply where—
(a)
the disposal is by a company which, at the time of the disposal,
5
is a member of a group of companies (within the meaning given
in section 170),
(b)
the acquisition is by another company which, at the time of the
acquisition, is a member of the same group, and
(c)
the claim under that section is made by both companies,
10
as if both companies were the same person.”
(2)
The amendment made by this section has effect in relation to disposals made
on or after 22 April 2009 (whether the acquisition takes place before, on or after
that date).
Capital allowances
15
18
First-year allowances on zero-emission goods vehicles
Schedule 7 contains provision about first-year allowances on zero-emission
goods vehicles.
Part 2
Other taxes and duties
20
Value added tax
19
Non-business use of business assets etc
Schedule 8 contains—
(a)
provision about input tax, and
(b)
provision about supplies under paragraph 5(4) of Schedule 4 to VATA
25
1994.
20
Supplies of gas, heat or cooling
(1)
In section 9A of VATA 1994 (reverse charge on gas and electricity supplied by
persons outside the United Kingdom)—
(a)
for subsection (5) substitute—
30
“(5)
“Relevant goods” means—
(a)
gas supplied through a natural gas system situated
within the territory of a member State or any network
connected to such a system,
(b)
electricity, and
35
(c)
heat or cooling supplied through a network.”, and
(b)
in the heading, for “and electricity” substitute “, electricity, heat or
cooling”.

Finance (No. 2) Bill
Part 2 — Other taxes and duties
16

(2)
In Schedule 4 to VATA 1994 (matters to be treated as supply of goods or
services), in paragraph 3 after “refrigeration” insert “or other cooling,”.
(3)
The amendments made by this section have effect in relation to supplies made
on or after 1 January 2011.
21
Supplies of aircraft etc
5
(1)
Schedule 8 to VATA 1994 (zero-rating) is amended as follows.
(2)
In Note (A1) of Group 8 (transport: definition of “qualifying aircraft” etc), for
paragraph (b) substitute—
“(b)
a “qualifying aircraft” is any aircraft which —
(i)
is used by an airline operating for reward chiefly on
10
international routes, or
(ii)
is used by a State institution and meets the condition in
Note (B1).”
(3)
After that Note insert—
“(B1)
The condition is that the aircraft—
15
(a)
is of a weight of not less than 8,000 kilograms, and
(b)
is neither designed nor adapted for use for recreation or
pleasure.
(C1)
In Note (A1)(b)—
“airline” means an undertaking which provides services for the
20
carriage by air of passengers or cargo (or both);
“State institution” has the same meaning as in Part B of Annex X
to the Council Directive 2006/112/EC on the common system
of value added tax (transactions which member States may
continue to exempt).”
25
(4)
The amendments made by this section have effect in relation to supplies made,
and acquisitions and importations taking place, on or after 1 January 2011.
22
Postal services etc
(1)
In Schedule 8 to VATA 1994 (zero-rating), in Group 8—
(a)
in item 4 (transport of passengers), for “the Post Office company”
30
substitute “a universal service provider”, and
(b)
after Note (4D) insert—

“(4E) “Universal service provider” means a person who
provides a universal postal service (within the meaning of the
Postal Services Act 2000), or part of such a service, in the
35
United Kingdom.”
(2)
In Schedule 9 to that Act (exemptions), for Group 3 (postal services)
substitute—
“GROUP 3 — POSTAL SERVICES

Item No
40

1 The supply of public postal services by a universal service
provider.

Finance (No. 2) Bill
Part 2 — Other taxes and duties
17


2 The supply of goods by a universal service provider which is
incidental to the supply of public postal services by that provider.

NOTES

(1) “Universal service provider” means a person who provides a
universal postal service, or part of such a service, in the United
5
Kingdom.

(2) Subject to the following Notes, “public postal services”, in relation
to a universal service provider, means any postal services which the
provider is required to provide in the discharge of a licence duty.

(3) Public postal services include postal services which a universal
10
service provider provides to allow a person access to the provider’s
postal facilities, where such services are provided pursuant to a
licence duty.

(4) Services are not “public postal services” if—
(a)
the price is not controlled by or under a licence, or
15
(b)
any of the other terms on which the services are provided are
freely negotiated.

(5) But Note (4) does not apply if a licence duty requires the universal
service provider to make the services available to persons
generally—
20
(a)
where the price is not controlled by or under the licence, at
the same price, or
(b)
where terms are freely negotiated as mentioned in Note
(4)(b), on those terms.

(6) In this Group—
25
“licence” means a licence under Part 2 of the Postal Services Act
2000;
“licence duty” means a duty imposed as a condition of a licence;
“postal facilities”, in relation to a universal service provider,
means the resources and systems deployed by the provider,
30
for the purpose of discharging any licence duty to provide a
universal postal service or part of such a service;
“postal services” and “universal postal service” have the same
meaning as in the Postal Services Act 2000.”
(3)
The following provisions are omitted—
35
(a)
in section 96(1) of VATA 1994, the definition of “the Post Office
company”, and
(b)
paragraph 22(3) and (4) of Schedule 8 to the Postal Services Act 2000.
(4)
The amendments made by this section have effect in relation to supplies made
on or after 31 January 2011.
40
Tobacco products duty
23
Long cigarettes
(1)
In section 4 of TPDA 1979 (calculation of duty on long cigarettes)—
(a)
for “than 9 cm.” substitute “than 8 cm.”, and

Finance (No. 2) Bill
Part 3 — Administration
18

(b)
for “each 9 cm. or part thereof” substitute “the first 8 cm. of it, each 3 cm.
portion of the remainder of it (if any) and the remaining portion of it (if
any)”,

and, in the heading, for “9 cm.” substitute “8 cm.”.
(2)
The amendments made by this section come into force on 1 January 2011.
5
Landfill tax
24
Landfill tax: criteria for determining material to be subject to lower rate
(1)
In section 42 of FA 1996 (amount of landfill tax), for subsection (4) substitute—
“(4)
The Treasury must—
(a)
set criteria to be considered in determining from time to time
10
what material is to be listed,
(b)
keep those criteria under review, and
(c)
revise them whenever they consider they should be revised.
(5)
The Commissioners must publish the criteria (and any revised criteria)
set by the Treasury.
15
(6)
In determining from time to time what material is to be listed, the
Treasury must have regard to—
(a)
the criteria (or revised criteria) published under subsection (5),
and
(b)
any other factors they consider relevant.”
20
(2)
The amendment made by this section has effect in relation to disposals made,
or treated as made, on or after 1 April 2011.
Part 3
Administration
25
Interest: corporation tax and petroleum revenue tax
25
(1)
Schedule 9 contains amendments of FA 2009 relating to late payment interest
and repayment interest on amounts of corporation tax and petroleum revenue
tax.
(2)
That Schedule comes into force on such day as the Treasury may by order
appoint.
30
(3)
An order under subsection (2)—
(a)
may commence a provision generally or only for specified purposes,
and
(b)
may appoint different days for different provisions or for different
purposes.
35
(4)
The Treasury may by order make any incidental, supplemental, consequential,
transitional, transitory or saving provision which appears appropriate in
consequence of, or otherwise in connection with, that Schedule.
(5)
An order under subsection (4) may—
(a)
make different provision for different purposes, and
40

Finance (No. 2) Bill
Part 3 — Administration
19

(b)
make provision amending, repealing or revoking any Act or
subordinate legislation whenever passed or made (including this Act
and any Act amended by it).
(6)
An order under this section is to be made by statutory instrument.
(7)
A statutory instrument containing an order under subsection (4) which
5
includes provision amending or repealing any provision of an Act is subject to
annulment in pursuance of a resolution of the House of Commons.
26
Penalties for failure to make returns etc
(1)
Schedule 10 contains provision amending Schedule 55 to FA 2009 (penalties in
respect of failures to make returns and other documents relating to liabilities
10
for tax).
(2)
Schedule 10 comes into force on such day as the Treasury may by order
appoint.
(3)
An order under subsection (2)—
(a)
may commence a provision generally or only for specified purposes,
15
and
(b)
may appoint different days for different provisions or for different
purposes.
(4)
The Treasury may by order make any incidental, supplemental, consequential,
transitional, transitory or saving provision which appears appropriate in
20
consequence of, or otherwise in connection with, that Schedule.
(5)
An order under subsection (4) may—
(a)
make different provision for different purposes, and
(b)
make provision amending, repealing or revoking any Act or
subordinate legislation whenever passed or made (including this Act
25
and any Act amended by it).
(6)
An order under this section is to be made by statutory instrument.
(7)
A statutory instrument containing an order under subsection (4) which
includes provision amending or repealing any provision of an Act is subject to
annulment in pursuance of a resolution of the House of Commons.
30
27
Penalties for failure to pay tax
(1)
Schedule 11 contains provision amending Schedule 56 to FA 2009 (penalties in
respect of failures to comply with obligations to pay tax).
(2)
Schedule 11 comes into force on such day as the Treasury may by order
appoint.
35
(3)
An order under subsection (2)—
(a)
may commence a provision generally or only for specified purposes,
and
(b)
may appoint different days for different provisions or for different
purposes.
40

Finance (No. 2) Bill
Part 3 — Administration
20

(4)
The Treasury may by order make any incidental, supplemental, consequential,
transitional, transitory or saving provision which appears appropriate in
consequence of, or otherwise in connection with, that Schedule.
(5)
An order under subsection (4) may—
(a)
make different provision for different purposes, and
5
(b)
make provision amending, repealing or revoking any Act or
subordinate legislation whenever passed or made (including this Act
and any Act amended by it).
(6)
An order under this section is to be made by statutory instrument.
(7)
A statutory instrument containing an order under subsection (4) which
10
includes provision amending or repealing any provision of an Act is subject to
annulment in pursuance of a resolution of the House of Commons.
28
Recovery of overpaid stamp duty land tax and petroleum revenue tax etc
(1)
Schedule 12 contains—
(a)
provision amending Part 4 of FA 2003 (stamp duty land tax) in respect
15
of the recovery of overpaid tax etc, and
(b)
provision amending Schedule 2 to OTA 1975 (management and
collection of petroleum revenue tax) in respect of the recovery of
overpaid tax etc.
(2)
The amendments made by Schedule 12 have effect in relation to claims made
20
on or after 1 April 2011.
(3)
The Treasury may by order make any incidental, supplemental, consequential,
transitional, transitory or saving provision which appears appropriate in
consequence of, or otherwise in connection with, that Schedule.
(4)
An order under this section may—
25
(a)
make different provision for different purposes, and
(b)
make provision amending, repealing or revoking any Act or
subordinate legislation whenever passed or made (including this Act
and any Act amended by it).
(5)
An order under this section is to be made by statutory instrument.
30
(6)
A statutory instrument containing an order under this section which includes
provision amending or repealing any provision of an Act is subject to
annulment in pursuance of a resolution of the House of Commons.
29
Excise duties: compliance checks
(1)
Schedule 13 contains provision about information and inspection powers,
35
record-keeping and time limits for assessments and claims involving excise
duties.
(2)
The amendments made by that Schedule come into force on such day as the
Treasury may by order made by statutory instrument appoint.
(3)
An order under subsection (2)—
40
(a)
may appoint different days for different provisions or for different
purposes, and
(b)
may include transitional provision and savings.

Finance (No. 2) Bill
Part 5 — Final provisions
21

Part 4
Miscellaneous provisions
30
Pension scheme under section 67 of Pensions Act 2008
(1)
A pension scheme established under section 67 of the Pensions Act 2008 is to
be regarded as an occupational pension scheme for the purposes of Part 4 of FA
5
2004.
(2)
In section 67 of the Pensions Act 2008 (duty to establish pension scheme) —
(a)
omit subsection (3), and
(b)
in subsection (4), for “that Chapter” substitute “Chapter 2 of Part 4 of
the Finance Act 2004”.
10
31
Asbestos compensation settlements
Schedule 14 contains provision about the taxation of settlements the purpose
of which is to make compensation payments to or in respect of individuals
affected by an asbestos-related condition.
Part 5
15
Final provisions
32
Interpretation
(1)
In this Act—
“BGDA 1981” means the Betting and Gaming Duties Act 1981;
“CAA 2001” means the Capital Allowances Act 2001;
20
“CTA 2009” means the Corporation Tax Act 2009;
“CTA 2010” means the Corporation Tax Act 2010;
“HODA 1979” means the Hydrocarbon Oil Duties Act 1979;
“ICTA” means the Income and Corporation Taxes Act 1988;
“IHTA 1984” means the Inheritance Tax Act 1984;
25
“ITA 2007” means the Income Tax Act 2007;
“ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003;
“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act
2005;
“OTA 1975” means the Oil Taxation Act 1975;
30
“TCGA 1992” means the Taxation of Chargeable Gains Act 1992;
“TIOPA 2010” means the Taxation (International and Other Provisions)
Act 2010;
“TMA 1970” means the Taxes Management Act 1970;
“TPDA 1979” means the Tobacco Products Duty Act 1979;
35
“VATA 1994” means the Value Added Tax Act 1994;
“VERA 1994” means the Vehicle Excise and Registration Act 1994.
(2)
In this Act—
“FA”, followed by a year, means the Finance Act of that year;
“F(No.2)A”, followed by a year, means the Finance (No.2) Act of that year.
40