Finance (No. 3) Bill

Session 2010 - 11
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Other Bills before Parliament

Finance (No. 3) Bill

Finance (No. 3) Bill
Part 1 — Charges, rates, allowances etc
8

(b)
in any other case, the eighth anniversary of the end of
the relevant chargeable period.
(3A)
In subsection (3)—
“the designated day” means—
(a)
for corporation tax purposes, 1 April 2011, and
5
(b)
for income tax purposes, 6 April 2011;
“the relevant chargeable period” means—
(a)
the chargeable period in which the qualifying
expenditure was incurred on the provision of the
short-life asset, or
10
(b)
if the qualifying expenditure was incurred in
different chargeable periods, the first chargeable
period in which any of the qualifying
expenditure was incurred.”, and
(c)
in subsection (4), for “four-year” substitute “relevant”.
15
(3)
In section 65 (the final chargeable period), in subsection (3), for “four-year”
substitute “relevant”.
(4)
In section 87 (short-life assets provided for leasing), in subsection (1)—
(a)
in paragraph (b), for “four-year” substitute “relevant”, and
(b)
in paragraph (c), for “4 years” substitute “8 years”.
20
(5)
In section 89 (disposal to connected person), in subsections (1) and (5), for
“four-year” (in each place) substitute “relevant”.
(6)
In Schedule 1 (defined expressions)—
(a)
at the appropriate place insert—

“relevant cut-off (in Chapter 9 of Part 2)
section 86(3)”,

25

and
(b)
omit the entry for “four-year cut-off (in Chapter 9 of Part 2)”.
Alcohol duties
13
Rates of alcoholic liquor duties
(1)
ALDA 1979 is amended as follows.
30
(2)
In section 5 (rate of duty on spirits), for “£23.80” substitute “£25.52”.
(3)
In section 36(1AA)(a) (standard rate of duty on beer), for “£17.32” substitute
“£18.57”.
(4)
In section 62(1A) (rates of duty on cider)—
(a)
in paragraph (a) (rate of duty per hectolitre in the case of sparkling
35
cider of a strength exceeding 5.5 per cent), for “£217.83” substitute
“£233.55”,
(b)
in paragraph (b) (rate of duty per hectolitre in the case of cider of a
strength exceeding 7.5 per cent which is not sparkling cider), for
“£50.22” substitute “£53.84”, and
40

Finance (No. 3) Bill
Part 1 — Charges, rates, allowances etc
9

(c)
in paragraph (c) (rate of duty per hectolitre in any other case), for
“£33.46” substitute “£35.87”.
(5)
For the table in Schedule 1 substitute—
                  “Table of rates of duty on wine and made-wine
             Part 1
5
                     Wine or made-wine of a strength not exceeding 22 per cent


Rates of duty per

Description of wine or made-wine
hectolitre

£

Wine or made-wine of a strength not
74.32

10

exceeding 4 per cent

Wine or made-wine of a strength exceeding
102.21

4 per cent but not exceeding 5.5 per cent

Wine or made-wine of a strength exceeding
241.23

5.5 per cent but not exceeding 15 per cent

15

and not being sparkling

Sparkling wine or sparkling made-wine of a
233.55

strength exceeding 5.5 per cent but less than

8.5 per cent

Sparkling wine or sparkling made-wine of a
308.99

20

strength of 8.5 per cent or of a strength

exceeding 8.5 per cent but not exceeding 15

per cent

Wine or made-wine of a strength exceeding
321.61

15 per cent but not exceeding 22 per cent

25

     Part 2
                          Wine or made-wine of a strength exceeding 22 per cent


Rates of duty per litre

Description of wine or made-wine
of alcohol in wine or

30

made-wine

£

Wine or made-wine of a strength exceeding
              25.52”.

22 per cent

(6)
The amendments made by this section are treated as having come into force on
35
28 March 2011.
14
General beer duty: reduced rate for lower strength beer
(1)
Part 3 of ALDA 1979 (beer) is amended as follows.
(2)
In section 36 (general beer duty), in subsection (1AA) (rates of duty)—

Finance (No. 3) Bill
Part 1 — Charges, rates, allowances etc
10

(a)
before paragraph (a) insert—
“(za)
in the case of beer that is of a strength which exceeds 1.2
per cent but does not exceed 2.8 per cent, £9.29 per
hectolitre per cent of alcohol in the beer;”,
(b)
in paragraph (a), after “that” insert “is of a strength which exceeds 2.8
5
per cent and”,
(c)
in paragraph (b), after “small brewery beer” insert “that is of a strength
which exceeds 2.8 per cent and is”, and
(d)
in paragraph (c), after “small brewery beer” insert “that is of a strength
which exceeds 2.8 per cent and is”.
10
(3)
For the italic heading immediately preceding section 36A substitute “Beer from
small breweries”.
(4)
In section 36D (rate of general beer duty for small brewery beer from singleton
breweries)—
(a)
in subsection (2), after “section” insert “, unless the beer is within
15
section 36(1AA)(za) (rate for lower strength beer)”, and
(b)
in the heading after “beer” insert “(other than lower strength beer)”.
(5)
In section 36F (rate of general beer duty for small brewery beer from co-
operated breweries)—
(a)
in subsection (2), after “section” insert “, unless the beer is within
20
section 36(1AA)(za) (rate for lower strength beer)”, and
(b)
in the heading after “beer” insert “(other than lower strength beer)”.
(6)
Immediately above section 36H (power to vary reduced rate provisions) insert
as an italic heading “Power to vary rates”.
(7)
The amendments made by this section come into force on 1 October 2011.
25
15
New high strength beer duty
(1)
Schedule 1 contains provision for and in connection with a duty of excise on
high strength beer.
(2)
The Commissioners for Her Majesty’s Revenue and Customs are responsible
for the collection and management of that duty.
30
Tobacco duties
16
Rates of tobacco products duty
(1)
For the table in Schedule 1 to TPDA 1979 substitute—

“Table
35

1.  Cigarettes
An amount equal to 16.5 per cent

of the retail price plus £154.95 per

thousand cigarettes

2.  Cigars
£193.29 per kilogram

3.  Hand-rolling tobacco
£151.90 per kilogram

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Finance (No. 3) Bill
Part 1 — Charges, rates, allowances etc
11

4.  Other smoking tobacco
£84.98 per kilogram”.

and chewing tobacco

(2)
The amendment made by this section is treated as having come into force at 6
pm on 23 March 2011.
Gambling duties
5
17
Rates of gaming duty
(1)
In section 11(2) of FA 1997 (rates of gaming duty), for the table substitute—

“Table

Part of gross gaming yield
Rate

10

The first £2,067,000
15 per cent

The next £1,425,000
20 per cent

The next £2,496,000
30 per cent

The next £5,268,000
40 per cent

The remainder
50 per cent”.

15
(2)
The amendment made by this section has effect in relation to accounting
periods beginning on or after 1 April 2011.
18
Amusement machine licence duty
(1)
In section 23(2) of BGDA 1981 (amount of duty payable on amusement
machine licence), for the table substitute—
20
“Table

Months for
Category
Category
Category
Category
Category
Category

which licence
A
B1
B2
B3
B4
C

granted

£
£
£
£
£
£

25

           1
535
270
215
215
195
85

           2
1070
535
425
425
385
160

           3
1605
805
635
635
575
240

           4
2140
1070
845
845
765
320

           5
2675
1340
1055
1055
960
400

30

           6
3210
1605
1265
1265
1150
480

           7
3745
1875
1475
1475
1340
555

Finance (No. 3) Bill
Part 1 — Charges, rates, allowances etc
12

Months for
Category
Category
Category
Category
Category
Category

which licence
A
B1
B2
B3
B4
C

granted

£
£
£
£
£
£

           8
4280
2140
1685
1685
1530
635

5

           9
4815
2410
1895
1895
1725
715

         10
5350
2675
2105
2105
1915
795

         11
5885
2945
2315
2315
2105
875

         12
6110
3055
2405
2405
2185
905”.

(2)
The amendment made by this section has effect in relation to cases where the
10
application for the amusement machine licence is received by the
Commissioners for Her Majesty’s Revenue and Customs after 4 pm on 25
March 2011.
Fuel duties
19
Fuel duties: rates of duty and rebates from 23 March 2011
15
(1)
HODA 1979 is amended as follows.
(2)
In section 6(1A) (main rates)—
(a)
in paragraph (a) (unleaded petrol), for “£0.5895” substitute “£0.5795”,
(b)
in paragraph (aa) (aviation gasoline), for “£0.3835” substitute “£0.3770”,
(c)
in paragraph (b) (light oil other than unleaded petrol or aviation
20
gasoline), for “£0.6867” substitute “£0.6767”, and
(d)
in paragraph (c) (heavy oil) for “£0.5895” substitute “£0.5795”.
(3)
In section 8(3) (road fuel gas)—
(a)
in paragraph (a) (natural road fuel gas), for “£0.2615” substitute
“£0.2470”, and
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(b)
in paragraph (b) (other road fuel gas), for “£0.3304” substitute
“£0.3161”.
(4)
In section 11(1) (rebate on heavy oil)—
(a)
in paragraph (a) (fuel oil), for “£0.1088” substitute “£0.1070”, and
(b)
in paragraph (b) (gas oil) for “£0.1133” substitute “£0.1114”.
30
(5)
In section 14(1) (rebate on light oil for use as furnace fuel), for “£0.1088”
substitute “£0.1070”.
(6)
In section 14A(2) (rebate on certain biodiesel) for “£0.1133” substitute
“£0.1114”.
(7)
The amendments made by this section are treated as having come into force at
35
6 pm on 23 March 2011.
20
Fuel duties: rates of duty and rebates from 1 January 2012
(1)
HODA 1979 is amended as follows.

Finance (No. 3) Bill
Part 1 — Charges, rates, allowances etc
13

(2)
In section 6(1A) (main rates)—
(a)
in paragraph (a) (unleaded petrol), for “£0.5795” substitute “£0.6097”,
(b)
in paragraph (aa) (aviation gasoline), for “£0.3770” substitute “£0.3966”,
(c)
in paragraph (b) (light oil other than unleaded petrol or aviation
gasoline), for “£0.6767” substitute “£0.7069”, and
5
(d)
in paragraph (c) (heavy oil) for “£0.5795” substitute “£0.6097”.
(3)
In section 8(3) (road fuel gas)—
(a)
in paragraph (a) (natural road fuel gas), for “£0.2470” substitute
“£0.2907”, and
(b)
in paragraph (b) (other road fuel gas), for “£0.3161” substitute
10
“£0.3734”.
(4)
In section 11(1) (rebate on heavy oil)—
(a)
in paragraph (a) (fuel oil), for “£0.1070” substitute “£0.1126”, and
(b)
in paragraph (b) (gas oil) for “£0.1114” substitute “£0.1172”.
(5)
In section 14(1) (rebate on light oil for use as furnace fuel), for “£0.1070”
15
substitute “£0.1126”.
(6)
In section 14A(2) (rebate on certain biodiesel) for “£0.1114” substitute
“£0.1172”.
(7)
The amendments made by this section come into force on 1 January 2012.
Vehicle excise duty
20
21
VED rates for light passenger vehicles, light goods vehicles, motorcycles etc
(1)
Schedule 1 to VERA 1994 (annual rates of duty) is amended as follows.
(2)
In paragraph 1 (general)—
(a)
in sub-paragraph (2) (vehicle not covered elsewhere in Schedule
otherwise than with engine cylinder not exceeding 1,549cc), for “£205”
25
substitute “£215”, and
(b)
in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with
engine cylinder capacity not exceeding 1,549cc), for “£125” substitute
“£130”.
(3)
In paragraph 1B (graduated rates of duty for light passenger vehicles)—
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Finance (No. 3) Bill
Part 1 — Charges, rates, allowances etc
14

(a)
for the tables substitute—
“Table 1
Rates payable on first vehicle licence for vehicle

CO2 emissions figure
Rate

(1)
(2)
(3)
(4)

5

   Exceeding
Not exceeding
Reduced rate
Standard rate

g/km
g/km
£
£

         130
         140
         105
          115

         140
         150
         120
          130

         150
         165
         155
          165

10

         165
         175
         255
          265

         175
         185
         305
          315

         185
         200
         435
          445

         200
         225
         570
          580

         225
         255
         780
          790

15

         255
           —
         990
          1000

Table 2
Rates payable on any other vehicle licence for vehicle

CO2 emissions figure
Rate

(1)
(2)
(3)
(4)

20

   Exceeding
Not exceeding
Reduced rate
Standard rate

g/km
g/km
£
£

         100
         110
          10
           20

         110
         120
          20
           30

         120
         130
          85
           95

25

         130
         140
         105
          115

         140
         150
         120
          130

         150
         165
         155
          165