Finance (No. 3) Bill

Session 2010 - 11
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Finance (No. 3) Bill

Finance (No. 3) Bill
Part 6 — Other taxes
42

74
Zero-rating: splitting of supplies
(1)
In Part 2 of Schedule 8 to VATA 1994 (zero-rating: groups), Group 3 (books,
etc) is amended as follows.
(2)
For “Note: Items 1 to 6—” substitute—

“Notes:
5

(1) Items 1 to 6—”.
(3)
At the end insert—

“(2) Items 1 to 6 do not include goods in circumstances where—
(a)
the supply of the goods is connected with a supply of
services, and
10
(b)
those connected supplies are made by different suppliers.

(3) For the purposes of Note (2) a supply of goods is connected with
a supply of services if, had those two supplies been made by a single
supplier—
(a)
they would have been treated as a single supply of services,
15
and
(b)
that single supply would have been a taxable supply (other
than a zero-rated supply) or an exempt supply.”
(4)
The amendments made by this section have effect in relation to supplies made
on or after the day on which this Act is passed.
20
75
Academies
(1)
In Part 2 of VATA 1994 (reliefs, exemptions and repayments), after section 33A
insert —
“33B
Refunds of VAT to Academies
(1)
This section applies where—
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(a)
VAT is chargeable on—
(i)
the supply of goods or services to the proprietor of an
Academy,
(ii)
the acquisition of any goods from another member State
by the proprietor of an Academy, or
30
(iii)
the importation of any goods from a place outside the
member States by the proprietor of an Academy, and
(b)
the supply, acquisition or importation is not for the purposes of
any business carried on by the proprietor of the Academy.
(2)
The Commissioners shall, on a claim made by the proprietor of the
35
Academy at such time and in such form and manner as the
Commissioners may determine, refund to that proprietor the amount
of VAT so chargeable.
(3)
Subject to subsection (4), the claim must be made before the end of the
period of 4 years beginning with the day on which the supply is made
40
or the acquisition or importation takes place.
(4)
If the Commissioners so determine, the claim period is such shorter
period beginning with that day as the Commissioners may determine.

Finance (No. 3) Bill
Part 6 — Other taxes
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(5)
Subsection (6) applies where goods or services supplied to, or acquired
or imported by, the proprietor of the Academy cannot be conveniently
distinguished from goods or services supplied to, or acquired or
imported by, it for the purpose of a business carried on by that
proprietor.
5
(6)
The amount to be refunded under this section is such amount as
remains after deducting from the whole of the VAT chargeable on any
supply to, or acquisition or importation by, the proprietor of the
Academy such proportion of that VAT as appears to the
Commissioners to be attributable to the carrying on of the business.
10
(7)
References in this section to VAT do not include any VAT which, by
virtue of an order under section 25(7), is excluded from credit under
section 25.
(8)
In this section—
(a)
references to the proprietor of an Academy are to the proprietor
15
of the Academy acting in that capacity, and
(b)
“Academy” and “proprietor” have the same meaning as in the
Education Act 1996 (see section 579 of that Act).”
(2)
In section 79 of that Act (repayment supplement in respect of certain delayed
payments or refunds)—
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(a)
in subsection (1), after paragraph (c) insert “, or
(d)
the proprietor of an Academy who is registered is
entitled to a refund under section 33B,”,
(b)
in subsection (5), after paragraph (c) insert “, and
(d)
a supplement paid to the proprietor of an Academy
25
under subsection (1)(d) shall be treated as an amount
due to that proprietor by way of refund under section
33B.”, and
(c)
in subsection (6)(b) after “33A” insert “or 33B”.
(3)
In section 90 of that Act (failure of resolution under the Provisional Collection
30
of Taxes Act 1968), in subsection (3) after “33A,” insert “33B,”.
(4)
In Part 2 of Schedule 9 to that Act (exemptions: groups), in Group 14 (supplies
of goods where input tax cannot be recovered), in Note (9) after “33A,” insert
“33B,”.
(5)
The amendments made by this section have effect in relation to supplies made,
35
and acquisitions and importations taking place, on or after 1 April 2011.
76
Relief from VAT on imported goods of low value
(1)
In Schedule 2 to the Value Added Tax (Imported Goods) Relief Order 1984 (S.I.
1984/746) (reliefs for goods of certain descriptions), in item 8 of Group 8
(consignments of goods not exceeding a certain value), for “£18” substitute
40
“£15”.
(2)
The amendment of that Schedule by this section is without prejudice to any
power to amend that Schedule by subordinate legislation.
(3)
The amendment made by this section has effect in relation to goods imported
on or after 1 November 2011.
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Finance (No. 3) Bill
Part 6 — Other taxes
44

Climate change levy
77
Supplies of commodities to be used in producing electricity
Schedule 20 contains provision for and in connection with the charging of
climate change levy on supplies of commodities to be used in producing
electricity.
5
78
Northern Ireland gas supplies
(1)
In Schedule 6 to FA 2000 (climate change levy), omit paragraph 11A
(exemption for Northern Ireland gas supplies).
(2)
Subsection (3) applies to a supply of gas if—
(a)
the supply is made by a gas utility (within the meaning of that Schedule
10
(see paragraph 147)),
(b)
the person to whom the supply is made intends to cause the gas to be
burned in Northern Ireland, and
(c)
the supply is treated as taking place on or after 1 April 2011 but before
1 November 2013.
15
(3)
Paragraph 42 of that Schedule (amount payable by way of levy) has effect as
if—
(a)
for sub-paragraphs (1) and (1A) there were substituted—
“(1)
The amount payable by way of levy on a taxable supply is—
(a)
if the supply is treated as taking place before 1 April
20
2012, £0.00059 per kilowatt hour, and
(b)
if the supply is treated as taking place on or after that
date, £0.00062 per kilowatt hour.”, and
(b)
in sub-paragraph (3) the reference to a reduced-rate supply were a
reference to a supply in relation to which this subsection applies.
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(4)
In FA 2001, omit section 105(2) (which inserted paragraph 11A of that
Schedule).
(5)
The amendments made by subsections (1) and (4) have effect in relation to a
supply of gas to a person if the gas is actually supplied to the person on or after
1 April 2011.
30
(6)
Subsections (2) and (3) are treated as having come into force on 1 April 2011.
79
Power to suspend exemption for transport supplies
(1)
The Treasury may by order provide that paragraph 12 of Schedule 6 to FA 2000
(climate change levy: exemption for supplies used in transport) does not apply
in relation to any supply of a taxable commodity which—
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(a)
is made on or after 1 April 2011, and
(b)
is of a description specified in the order.
(2)
Any revocation order made under this section may provide for the revocation
to have effect in relation to supplies made on or after a day which is earlier than
the day on which the revocation order is made.
40
(3)
In this section a “revocation order” is an order revoking the whole or any part
of an order containing the provision mentioned in subsection (1).

Finance (No. 3) Bill
Part 6 — Other taxes
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(4)
The power to make an order under this section, other than a revocation order,
may not be exercised after 31 March 2012.
(5)
The power to make an order under this section is exercisable by statutory
instrument.
(6)
A statutory instrument containing an order under this section is subject to
5
annulment in pursuance of a resolution of the House of Commons.
(7)
Any reference in this section to the time at which a supply of a taxable
commodity is made is to be read as a reference to the time at which the taxable
commodity is actually supplied.
80
Power to suspend exemption for supplies used in recycling processes
10
(1)
The Treasury may by order provide that Schedule 6 to FA 2000 (climate change
levy) is to have effect in relation to any supply of a taxable commodity made
on or after 1 April 2011 as if—
(a)
paragraph 18A (exemption: supply for use in recycling processes), and
(b)
any reference to that paragraph,
15

were omitted.
(2)
An order made under this section may apply—
(a)
generally, or
(b)
only in relation to supplies of a description specified in the order.
(3)
Any revocation order made under this section may provide for the revocation
20
to have effect in relation to supplies made on or after a day which is earlier than
the day on which the revocation order is made.
(4)
In this section a “revocation order” is an order revoking the whole or any part
of an order containing the provision mentioned in subsection (1).
(5)
The power to make an order under this section, other than a revocation order,
25
may not be exercised after 31 March 2012.
(6)
The power to make an order under this section is exercisable by statutory
instrument.
(7)
A statutory instrument containing an order under this section is subject to
annulment in pursuance of a resolution of the House of Commons.
30
(8)
Any reference in this section to the time at which a supply of a taxable
commodity is made is to be read as a reference to the time at which the taxable
commodity is actually supplied.
Aggregates levy
81
Transitional tax credit
35
(1)
Section 30A of FA 2001 (transitional tax credit in Northern Ireland) is amended
as follows.

Finance (No. 3) Bill
Part 6 — Other taxes
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(2)
For subsection (2) substitute—
“(2)
The cases are those where a charge to aggregates levy has arisen on a
quantity of aggregate which has been subjected to commercial
exploitation during a prescribed period.”
(3)
Omit subsection (3).
5
(4)
In subsection (5), for paragraph (a) substitute—
“(a)
for a person to be entitled to a tax credit under the regulations
in respect of aggregate originating from a site in respect of
which any person holds an aggregates levy credit certificate
which has not been withdrawn;”.
10
Stamp duty land tax
82
Prevention of avoidance
Schedule 21 contains provision preventing avoidance of stamp duty land tax.
83
Transfers involving multiple dwellings
Schedule 22 contains provision about the amount of stamp duty land tax
15
chargeable in respect of a transaction or set of transactions involving the
acquisition of an interest in more than one dwelling.
Stamp duty reserve tax
84
Interests in collective investment schemes
(1)
Section 99 of FA 1986 (stamp duty reserve tax: interpretation) is amended as
20
follows.
(2)
In subsection (5B)—
(a)
in paragraph (b), for the words after “exempt investment” substitute “,
unless subsection (5C) applies to the scheme;”, and
(b)
omit the sentence after paragraph (d).
25
(3)
After subsection (5B) insert—
“(5C)
This subsection applies to a collective investment scheme if more than
20% of the market value of the investments in which the property
subject to the scheme is invested is attributable to investments which
are not exempt investments for the purposes of subsection (5A)(b).
30
(5D)
In subsections (5B) and (5C) “collective investment scheme” has the
same meaning as in Part 17 of the Financial Services and Markets Act
2000.”
(4)
This section comes into force on the first Sunday after the day on which this Act
is passed.
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Finance (No. 3) Bill
Part 7 — Administration etc
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Part 7
Administration etc
85
Security for payment of PAYE
(1)
Section 684 of ITEPA 2003 (PAYE regulations) is amended as follows.
(2)
In subsection (2), after item 4A insert—
5
“4B
Provision for and in connection with requiring the giving, in
specified circumstances, of security (or further security) for the
payment of amounts in respect of which a person is or may be
accountable to the Commissioners under the regulations.”
(3)
After subsection (4) insert—
10
“(4A)
A person who fails to comply with a requirement imposed under PAYE
regulations to give security, or further security, for the payment of any
amount commits an offence if the failure continues for such period as is
specified; and a person guilty of an offence under this subsection is
liable on summary conviction to a fine not exceeding level 5 on the
15
standard scale.”
86
Data-gathering powers
(1)
Schedule 23 contains provision for officers of Revenue and Customs to obtain
data from data-holders.
(2)
Schedule 24 contains amendments of Schedule 36 to FA 2008 (information and
20
inspection powers).
87
Mutual assistance for recovery of taxes etc
(1)
Schedule 25 contains provision for the purpose of giving effect to Council
Directive 2010/24/EU (which concerns mutual assistance for the recovery of
claims relating to taxes, duties and other measures).
25
(2)
The Treasury may by regulations make provision for the purpose of giving
effect to—
(a)
any amendments or extensions of Council Directive 2010/24/EU,
(b)
any EU instrument that—
(i)
wholly or partly replaces that Directive or a replacement of it, or
30
(ii)
otherwise makes provision for or in connection with mutual
assistance between member States in the recovery of claims
relating to taxes, duties and other measures, and
(c)
any amendments or extensions of any such EU instrument.
(3)
Regulations under subsection (2) may amend, replace or repeal Schedule 25
35
and any other enactment (whenever passed).
(4)
But regulations under subsection (2) may not include—
(a)
provision that would, if it were a provision of an Act of the Scottish
Parliament, be within the legislative competence of the Scottish
Parliament, or
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Finance (No. 3) Bill
Part 8 — Miscellaneous provisions
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(b)
provision that, in its application to Northern Ireland, deals with a
transferred matter within the meaning of the Northern Ireland Act
1998.
(5)
Regulations under subsection (2) are to be made by statutory instrument.
(6)
An instrument containing regulations under subsection (2) is subject to
5
annulment in pursuance of a resolution of the House of Commons.
Part 8
Miscellaneous provisions
88
Amendments of section 1 of the Provisional Collection of Taxes Act 1968
(1)
Section 1 of the Provisional Collection of Taxes Act 1968 (temporary statutory
10
effect of House of Commons resolutions relating to certain taxes) is amended
in accordance with subsections (2) to (7).
(2)
In subsection (2) for “(8)” substitute “(9)”.
(3)
For subsection (3) substitute—
“(3)
The period is one expiring at the end of seven months after the date on
15
which the resolution is expressed to take effect or, if no such date is
expressed, after the date on which the resolution is passed.”
(4)
In subsection (5)—
(a)
in paragraph (c) omit “or prorogued”, and
(b)
after paragraph (c) insert “, or
20
(d)
Parliament is prorogued.”
(5)
After subsection (5) insert—
“(5A)
Subsection (5B) applies in relation to a resolution instead of subsection
(5)(d) where Parliament is prorogued at the end of a session if—
(a)
one of the following happens during the session—
25
(i)
a Bill renewing, varying or, as the case may be,
abolishing the tax is read a first time by the House, or
(ii)
a Bill is amended by the House in Committee or on
Report or by any Public Bill Committee of the House so
as to include provision for the renewal, variation or, as
30
the case may be, abolition of the tax,
(b)
the Standing Orders or Sessional Orders of the House provide,
or during the session the House orders, that proceedings on the
Bill not completed before the end of the session shall be
resumed in the next session, and
35
(c)
proceedings on the Bill are not completed during the session.
(5B)
The resolution shall cease to have statutory effect under this section if,
during the period of thirty sitting days beginning with the first sitting
day of the next session, no Bill renewing, varying or, as the case may be,
abolishing the tax is presented to the House.
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(5C)
In subsection (5B) “sitting day” means a day on which the House sits.