Finance Act 2000 (c. 17)

(The document as of February, 2008)

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(1) Schedule 1 to the [1979 c. 5.] Hydrocarbon Oil Duties Act 1979 (which sets out the categories of excepted vehicle which may use rebated heavy oil as fuel) is amended as follows.

(2) Omit the following provisions--

(a) paragraph 2(1)(b) (which provides that off-road tractors are excepted vehicles) and the word "or" immediately preceding it, and

(b) paragraph 2(4) (which defines off-road tractors).

(3) This section shall have effect in relation to the use of rebated heavy oil as fuel on or after 1st May 2000.

10 Rebates, marking and reliefs

(1) The [1979 c. 5.] Hydrocarbon Oil Duties Act 1979 is amended in accordance with subsections (2) to (4).

(2) In section 11 (rebate on heavy oil), after subsection (2) insert--

" (3) This subsection applies in any case where--

(a) oil is delivered for home use,

(b) regulations under section 24 below require, as a condition of allowing a rebate on the oil under subsection (1) above, that a marker prescribed by regulations under that section shall have been added to the oil, and

(c) the marker is present at the time of delivery for home use but in such a proportion that its presence falls to be disregarded by virtue of provision made by regulations under that section.

(4) In any case where subsection (3) above applies, a rebate may be allowed on the oil at the time it is delivered for home use if it appears to the Commissioners to be appropriate to allow it.

(5) Where a rebate is allowed under subsection (4) above, the rate at which the rebate is allowed--

(a) shall be such rate as appears to the Commissioners to be appropriate, but

(b) shall not be less than 95 per cent. of, and shall not exceed, the rate of rebate specified in the relevant paragraph of subsection (1) above. " .

(3) In section 20AA(2) (provision in connection with allowing reliefs)--

(a) in paragraph (a) (relief may take form of repayment or remission), after "repayment or remission" insert "or an allowance to be set off against duty payable to the Commissioners by the person claiming relief"; and

(b) after paragraph (g) insert--

" (ga) provide for oil on which relief is allowed to be treated for the purposes of this Act as oil on which a rebate has been allowed; " .

(4) In section 24 (regulations controlling use of duty-free and rebated oil), after subsection (4B) insert--

" (4C) In a case where subsection (4D) below applies, the power of the Commissioners under subsection (4A) above includes power, if it appears to them to be appropriate, to assess (and notify) an amount less than the amount of the rebate concerned.

(4D) This subsection applies in any case where--

(a) the Commissioners have power to assess (and notify) an amount under subsection (4A) above by virtue of a contravention of, or failure to comply with, a requirement such as is mentioned in paragraph 5 of Schedule 4 to this Act, and

(b) the marker whose addition is required by the requirement is present at the time of the contravention or failure but in such a proportion that its presence falls to be disregarded by virtue of provision made by regulations under this section for the purpose mentioned in paragraph 7 of that Schedule. " .

(5) In paragraph 4 of Schedule 5 to the [1994 c. 9.] Finance Act 1994 (decisions under the [1979 c. 5.] Hydrocarbon Oil Duties Act 1979 of which a review may be required), after sub-paragraph (1) insert--

" (1A) Any decision which is made under or for the purposes of any regulations made under section 20AA of the [1979 c. 5.] Hydrocarbon Oil Duties Act 1979 and is a decision as to whether or not relief is to be allowed. " .

11 Emulsions of water in gas oil

(1) In section 6A of the [1979 c. 5.] Hydrocarbon Oil Duties Act 1979 (duty on fuel substitutes), after subsection (2) (definition of chargeable use) insert--

" (2A) But the use of water is not a chargeable use if--

(a) the water is comprised in an emulsion of water in gas oil, and

(b) the emulsion is stabilised by additives. " .

(2) This section shall have effect in relation to duty charged on or after the day on which this Act is passed.

Tobacco products duty

12 Rates of tobacco products duty

(1) For the Table of rates of duty in Schedule 1 to the [1979 c. 7.] Tobacco Products Duty Act 1979 substitute--

" TABLE

1. Cigarettes	An amount equal to 22 per cent. of the retail price plus £90.43 per thousand cigarettes.
2. Cigars	£132.33 per kilogram.
3. Hand-rolling tobacco	£95.12 per kilogram.
4. Other smoking tobacco and chewing tobacco	£58.17 per kilogram. "

(2) This section shall be deemed to have come into force at 6 o'clock in the evening of 21st March 2000.

13 Basis of calculation of ad valorem element of duty on cigarettes

(1) Section 5 of the [1979 c. 7.] Tobacco Products Duty Act 1979 (retail price of cigarettes) is amended as follows.

(2) In subsection (1) (meaning of retail price) for the words from "shall be taken to be" to the end substitute " shall be taken to be--

(a) the higher of--

(i) the recommended price for the sale by retail at that time in the United Kingdom of cigarettes of that description, and

(ii) any (or, if more than one, the highest) retail price shown at that time on the packaging of the cigarettes in question,

(b) if there is no such price recommended or shown, the highest price at which cigarettes of that description are normally sold by retail at that time in the United Kingdom. " .

(3) In subsection (3) (determination of price by Commissioners), for "paragraph (a) of subsection (1)" substitute "paragraph (b) of subsection (1)".

(4) In subsection (4) (reference to arbitration of Commissioners' determination), for "subsection (1)(a)" substitute "subsection (1)(b)".

14 Fiscal marks on tobacco products

After section 8 of the [1979 c. 7.] Tobacco Products Duty Act 1979 insert the following sections--

" 8A Fiscal marks: introductory

Fiscal marking applies to tobacco products that are--

(a) cigarettes, or

(b) hand-rolling tobacco.

8B Power to alter range of products to which fiscal marking applies

(1) The Commissioners may by order made by statutory instrument amend section 8A above for the purpose of causing fiscal marking--

(a) to apply to any description of tobacco products to which it does not apply, or

(b) to cease to apply to any description of tobacco products to which it does apply.

(2) Where fiscal marking applies to any description of tobacco products, the Commissioners may by regulations provide that fiscal marking does not apply to such products of that description as are of a description specified in the regulations.

(3) A statutory instrument containing (whether alone or with other provisions) an order under subsection (1)(a) above shall not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.

(4) A statutory instrument that--

(a) contains (whether alone or with other provisions) an order under subsection (1) above, and

(b) is not subject to any requirement that a draft of the instrument be laid before and approved by a resolution of each House of Parliament,

shall be subject to annulment in pursuance of a resolution of either House of Parliament.

8C Fiscal mark regulations

(1) The Commissioners may make provision by regulations--

(a) requiring the carrying of fiscal marks by tobacco products to which fiscal marking applies, and

(b) as to such matters relating to fiscal marks as appear to the Commissioners to be necessary or expedient.

(2) In this Act "fiscal mark" means a mark carried by tobacco products indicating all or any of the following--

(a) that excise duty has been paid on the products;

(b) the rate at which excise duty was paid on the products;

(d) when excise duty was paid on the products;

(e) that sale of the products--

(i) is only permissible on dates ascertainable from the mark;

(ii) is not permissible after (or on or after) a date so ascertainable;

(iii) is not permissible before (or before or on) a date so ascertainable.

(3) Regulations under this section may, in particular, make provision about--

(a) the contents of a fiscal mark;

(b) the appearance of a fiscal mark;

(c) in the case of tobacco products that have more than one layer of packaging, which of the layers is (or are) to carry a fiscal mark;

(d) the positioning of a fiscal mark on the packaging of any tobacco products;

(e) when tobacco products are required to carry a fiscal mark.

(4) Regulations under this section may make different provision for different cases.

8D Fiscal marks: public notices

(1) The Commissioners may by notices published by them regulate any of the matters mentioned in paragraphs (a) to (d) of section 8C(3) above.

(2) A notice under this section may provide for provision made by regulations under section 8C above to have effect subject to provisions of the notice.

(3) A notice under this section may make different provision for different cases.

8E Failure to comply with fiscal mark regulations and public notices

(1) This section applies if a person fails to comply with any requirement imposed by or under--

(a) regulations made under section 8C above, or

(b) a notice published under section 8D above.

(2) Any article in respect of which the person fails to comply with the requirement shall be liable to forfeiture.

(3) The person's failure to comply shall attract a penalty under section 9 of the [1994 c. 9.] Finance Act 1994 (civil penalties).

(4) The Commissioners may by regulations make such provision as is mentioned in subsection (5) below about the calculation of the penalty in a case where the failure involves post-dating of any tobacco products.

For this purpose "post-dating" means that the products carry a fiscal mark ("the later period mark") that--

(a) is not one they are required to carry by virtue of this Act, and

(b) is one they would be required to carry by virtue of this Act if the requirement to pay the duty charged on them under section 2 above took effect at a time later than that at which it in fact takes effect.

(5) The provision that may be made by regulations under subsection (4) above is for the penalty to be calculated by reference to the duty currently charged on the products.

For this purpose "the duty currently charged" on the products is the amount of the duty charged under section 2 above that would be payable on the products if the requirement to pay the duty took effect at the time of the failure.

8F Sale of marked tobacco when not permitted: penalties

(1) This section applies if provision made by or under--

(a) regulations made under section 8C above, or

(b) a notice published under section 8D above,

provides for any tobacco products to carry a period of sale mark.

(2) In this section--

"a period of sale mark" means a fiscal mark indicating any of the matters mentioned in subsection (2)(e) of section 8C above; and
"prohibited time", in relation to tobacco products that carry a period of sale mark, means a time when, according to the mark, sale of the products is not permissible.

(3) If--

(a) a person sells by way of retail sale, or exposes for retail sale, any tobacco products that carry a period of sale mark, and

(b) he so sells or exposes the products at a prohibited time,

his so selling or exposing the products shall attract a penalty under section 9 of the [1994 c. 9.] Finance Act 1994 (civil penalties) and the products are liable to forfeiture.

8G Offences: possession and sale etc. of unmarked tobacco

(1) In this section "unmarked products" means tobacco products that are subject to fiscal marking but do not carry a compliant duty-paid fiscal mark.

(2) For the purposes of this section "duty-paid fiscal mark" means a fiscal mark carried by tobacco products indicating that excise duty has been paid on the products.

(3) For the purposes of this section a duty-paid fiscal mark carried by tobacco products of any description is "compliant" if it complies with all relevant requirements for any duty-paid fiscal mark that by virtue of this Act is required to be carried by such tobacco products of that description as are by virtue of this Act required to carry such a mark.

For this purpose "relevant requirement" means a requirement, imposed by virtue of this Act, as to any of the matters mentioned in paragraphs (a) to (d) of section 8C(3) above (contents, appearance and positioning etc. of fiscal marks).

(4) If a person--

(a) is in possession of, transports or displays, or

(b) sells, offers for sale or otherwise deals in,

unmarked products then, except in such cases as may be prescribed in regulations made by the Commissioners, that person commits an offence and the products are liable to forfeiture.

(5) It is a defence for a person charged with an offence under subsection (4) above to prove that the unmarked products were not required by virtue of this Act to carry a duty paid fiscal mark.

(6) A person guilty of an offence under subsection (4) above shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale.

8H Offences: use of premises for sale of unmarked tobacco

(1) A manager of premises commits an offence if he suffers the premises to be used for the sale of unmarked products.

In this section "unmarked products" has the same meaning as in section 8G above.

(2) It is a defence for a person charged with an offence under subsection (1) above to prove that the unmarked products were not required by virtue of this Act to carry a duty-paid fiscal mark.

For this purpose "duty-paid fiscal mark" has the same meaning as in section 8G above.

(3) A person guilty of an offence under subsection (1) above shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(4) A court by or before which a person is convicted of an offence under subsection (1) above may make an order prohibiting the use of the premises in question for the sale of tobacco products during a period specified in the order.

(5) The period specified in an order under subsection (4) above shall not exceed six months; and the first day of the period shall be the day specified as such in the order.

(6) A manager of premises commits an offence if he suffers the premises to be used in breach of an order under subsection (4) above.

(7) A person guilty of an offence under subsection (6) above shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(8) For the purposes of this section a person is a manager of premises if he--

(a) is entitled to control their use,

(b) is entrusted with their management, or

8J Interfering with fiscal marks: penalties

(1) This section applies where a person--

(a) alters or overprints any fiscal mark carried by any tobacco products in compliance with any provision made under this Act, or

(b) causes any such mark to be altered or overprinted.

(2) His altering or overprinting of the mark, or his causing it to be altered or overprinted, shall attract a penalty under section 9 of the [1994 c. 9.] Finance Act 1994 (civil penalties).

(3) The products that carried the mark shall be liable to forfeiture.

(4) The penalty under subsection (2) above shall be calculated by reference to the duty currently charged on the products.

15 Management of excise duty on tobacco products

(1) The [1979 c. 7.] Tobacco Products Duty Act 1979 has effect subject to the following amendments.

(2) In section 2(2) (remission or repayment of duty where tobacco products exported, shipped as stores or used for research or experiment), for the words from "that" to the end of paragraph (b) substitute--

" that--

(a) the products in question have been--

(i) exported or shipped as stores, or

(ii) used solely for the purposes of research or experiment; and

(b) any fiscal marks carried by the products have been obliterated; " .

(3) Section 7 (regulations for management of duty) is amended as follows.

(4) After paragraph (a) of subsection (1) (method of charging duty and securing and collecting duty) insert--

" (aa) for charging the duty, in such circumstances as may be specified in the regulations, by reference to the weight of the tobacco products at a time specified in the regulations or by the Commissioners (whether the time at which the products become chargeable or that at which the duty becomes payable or any other time); " .

(5) In paragraph (b) of subsection (1) (registration of premises for storage of tobacco), after "regulating their" insert "storage and".

(6) After that paragraph insert--

" (ba) for the registration of premises for the manufacture of tobacco products, for restricting or prohibiting the manufacture of tobacco products otherwise than in premises so registered and for regulating their storage and treatment in, and removal from, such premises; " .

(7) In paragraph (c) of subsection (1), omit sub-paragraph (i) (which is superseded by the amendment made by subsection (6) above).

(8) In paragraph (d) of subsection (1), for "and the making of such returns, as may be specified in the regulations" substitute "the notification of such information, and the making of such returns, as may be specified in the regulations or required by the Commissioners".

(9) After subsection (1) insert--

" (1A) Regulations under subsection (1) above may, in particular, include provision--

(a) imposing, or providing for the imposition under the regulations of, conditions and restrictions relating to any of the matters mentioned in that subsection;

(b) enabling the Commissioners to dispense with compliance with any provision contained in the regulations in such circumstances and subject to such conditions (if any) as they may determine. " .

Gaming duty

16 Rates of gaming duty

(1) For the table in section 11(2) of the [1997 c. 16.] Finance Act 1997 (rates of gaming duty) substitute--

" TABLE

Part of gross gaming yield	Rate
The first £470,500	2½ per cent.
The next £1,045,500	12½ per cent.
The next £1,045,500	20 per cent.
The next £1,830,000	30 per cent.
The remainder	40 per cent. "

(2) This section has effect in relation to accounting periods beginning on or after 1st April 2000.

Amusement machine licence duty

17 Amusement machine licence duty

Schedule 2 to this Act (which amends the [1981 c. 63.] Betting and Gaming Duties Act 1981) shall have effect.

Air passenger duty

18 Rates of duty

(1) Section 30 of the [1994 c. 9.] Finance Act 1994 is amended as follows.

(2) In subsection (1) (basis on which duty is charged) for the words from "appropriate" to the end substitute " determined in accordance with subsections (2) to (4) below. "

(3) In subsection (2) (rate where destination is in an EEA State etc)--

(a) for "The rate is £10 if that place" substitute "If the place where the passenger's journey ends", and

(b) after paragraph (b) add-- " the rate shall be determined in accordance with subsection (3A) below. " .

(4) After subsection (3) insert--

" (3A) In a case falling within subsection (2) above--

(a) if the passenger's agreement for carriage provides for standard class travel in relation to every flight on his journey, the rate is £5;

(b) in any other case, the rate is £10. " .

(5) For subsection (4) (rate where destination is not in an EEA State etc) substitute--

" (4) In a case not falling within subsection (2) above--

(a) if the passenger's agreement for carriage provides for standard class travel in relation to every flight on his journey, the rate is £20;

(b) in any other case, the rate is £40. " .

(6) At the end of the section add--

" (10) In this section "standard class travel", in relation to carriage on an aircraft, means--

(a) in the case of an aircraft on which only one class of travel is available, that class of travel;

(b) in any other case, the lowest class of travel available on the aircraft. " .

(7) In consequence of the provision made by the preceding provisions of this section, in section 39 of the [1994 c. 9.] Finance Act 1994 (schemes for simplifying operation of reliefs)--

(a) in subsection (4)(b), for "at the rate mentioned in section 30(2) above" substitute--

" (i) at the rate mentioned in paragraph (a) of section 30(3A) above, and

(ii) at the rate mentioned in paragraph (b) of that provision " ;

(b) in subsection (4B)(c), for "at the rate mentioned in section 30(2) above" substitute--

" (i) at the rate mentioned in paragraph (a) of section 30(3A) above, and

(ii) at the rate mentioned in paragraph (b) of that provision " ;

" (i) on the carriage of each of those falling within paragraph (a) of section 30(4) above at the rate mentioned in that paragraph, and

(ii) on the carriage of each of those falling within paragraph (b) of section 30(4) above at the rate mentioned in that paragraph " ; and

(d) in subsection (8A)(c), for the words from "on the carriage" to the end substitute--

" (i) on the carriage of each of those falling within paragraph (a) of section 30(4) above at the rate mentioned in that paragraph, and

(ii) on the carriage of each of those falling within paragraph (b) of section 30(4) above at the rate mentioned in that paragraph " .

(8) This section applies to any carriage of a passenger on an aircraft which begins on or after 1st April 2001.

19 Changes in exemption from duty

(1) Section 31 of the [1994 c. 9.] Finance Act 1994 is amended as follows.

(2) Omit subsections (1) and (2) (exemption in relation to passengers making return journeys within the United Kingdom).

(3) After subsection (4A) insert--

" (4B) A passenger is not a chargeable passenger in relation to a flight if under his agreement for carriage (whether or not it is evidenced by a ticket) the flight is to depart from an airport which is in a region of the United Kingdom designated by order.

(4C) An order may be made for the purposes of subsection (4B) above in respect of any region which has a population density of not more than 12.5 persons per square kilometre.

(4D) In subsections (4B) and (4C) above, references to a region are references to an area which is determined by the Treasury to constitute a region for the purposes of those subsections. " .

(4) Omit subsection (6) (provision by regulations for subsection (1) to have effect in relation to journeys begun in the Isle of Man).

(5) In consequence of the provision made by subsection (2) above, in section 43 of the [1994 c. 9.] Finance Act 1994 (interpretation)--

(a) in subsection (2) (meaning of "journey" etc), omit "Subject to subsection (3) below", and

(b) omit subsection (3) (interpretation of references to a return ticket).

(6) This section applies to any carriage of a passenger on an aircraft which begins on or after 1st April 2001.

Vehicle excise duty

20 Threshold for reduced general rate

(1) In paragraph 1 of Schedule 1 to the [1994 c. 22.] Vehicle Excise and Registration Act 1994 (rate of duty applicable where no other rate specified), in sub-paragraphs (2) and (2A) for "1,100 cubic centimetres" (the reduced rate threshold) substitute "1,200 cubic centimetres".

This amendment applies to licences issued on or after 1st March 2001.

(2) Refunds shall be made by the Secretary of State, in accordance with the following provisions of this section, in respect of licences--

(a) issued in the period beginning with 1st March 2000 and ending with 28th February 2001, and

(b) not surrendered before the end of that period,

where the amount of vehicle excise duty chargeable on the licence would have been less if the amendment in subsection (1) had applied.

(3) The amount of the refund is--

(a) £55 for a 12 month licence, and

(b) £27.50 for a 6 month licence.

(4) The person entitled to the refund is--

(a) in the case of a licence in force on 28th February 2001, the keeper of the vehicle on that date;

(b) in the case of a licence that has ceased to be in force before that date, the keeper of the vehicle when the licence expired.

(5) For the purposes of subsection (4) the keeper of the vehicle shall be taken to be--

(a) the person registered as keeper of the vehicle on the date in question, or

(b) if the Secretary of State has received notification of a change of ownership of the vehicle as a result of which another person is on that date entitled to be registered as the new keeper of the vehicle, that person.

(6) A refund shall only be made if an application is made for it in such form, and containing such particulars and supported by such documents, as the Secretary of State may require.

(7) The Secretary of State shall give notice in writing to any person appearing to him to be entitled to a refund--

(a) informing him that he appears to be entitled to a refund,

(b) enclosing an application form, and

(8) An application for, or the making of, a refund under this section in respect of a licence does not affect the validity of the licence.

(9) For the purposes of section 19 of the [1994 c. 22.] Vehicle Excise and Registration Act 1994 (surrender of licences) as it applies to the surrender on or after 1st March 2001 of a licence in respect of which a refund under this section has been made, or applied for, the annual rate of duty chargeable on the licence shall be taken to be that which would have been chargeable if the amendment in subsection (1) above had applied.

(10) Section 45 of that Act (offence of false or misleading declaration) applies to a declaration in connection with an application for a refund under this section as it applies to a declaration in connection with an application for a vehicle licence.

(11) In the application of this section to Northern Ireland, references to registration as the keeper of a vehicle shall be read as references to registration as the owner of the vehicle.

21 Increase in general rate

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