Finance Act 2000 (c. 17)

(The document as of February, 2008)

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Controller not carrying out taxable activity

56 A controller is not to be treated for the purposes of this Act as carrying out a taxable activity by reason only of any liability under this Part of this Schedule.

Joint and several liability

57 (1) In any case where the condition in sub-paragraph (4), (5) or (6) below is satisfied, the controller and the operator shall be jointly and severally liable for the principal liability.

(2) But the amount which may be recovered from the controller in consequence of such liability shall not exceed the amount of the secondary liability.

(3) For the purposes of this paragraph--

(a) the principal liability is the amount referred to in sub-paragraph (4)(a), (5)(a) or (6)(a) below, as the case may be, and

(b) the secondary liability is the amount referred to in sub-paragraph (4)(b), (5)(b) or (6)(b) below, as the case may be.

(4) The condition in this sub-paragraph is satisfied if--

(a) the operator of a landfill site is liable under section 41 of this Act for landfill tax, and

(b) a controller is liable under paragraph 49 above, after taking account of any reduction under paragraph 50 above, to pay an amount of that tax.

(5) The condition in this sub-paragraph is satisfied if--

(a) the operator of a landfill site is notified of the amount of an assessment made under section 50 of this Act, and

(b) in consequence of a determination made under paragraph 52 above by the Commissioners in connection with the assessment, a controller is liable to pay an amount (after taking account of any reduction under paragraph 53 above).

(6) The condition in this sub-paragraph is satisfied if--

(a) the liability of the operator of a landfill site to pay landfill tax is adjusted in such a way that paragraph 54 above applies, and

(b) in consequence of a determination made under paragraph 54(2)(a) above by the Commissioners in connection with the adjustment, a controller is liable to pay an amount.

Interest payable by a controller

58 (1) This paragraph applies where--

(a) the operator of a landfill site and the controller of the whole or a part of that site are by virtue of paragraph 57 above jointly and severally liable for an amount, and

(b) that amount carries interest by virtue of any provision of this Schedule.

(2) The controller and the operator shall be jointly and severally liable to pay the interest.

(3) But the amount which may be recovered from the controller in consequence of such liability shall not exceed the amount calculated in accordance with the following formula--

---

where--

I is the total amount of interest in question;
A is the amount of interest carried for the period which--
(a) begins with the first day of the period for which interest is carried, and
(b) ends with the day on which the controller becomes liable to pay the secondary liability;
B is the amount of interest carried for any day falling after that on which the secondary liability is met in full;
S is the amount of the secondary liability;
P is the amount of the principal liability.

In this paragraph secondary liability and principal liability have the same meaning as in paragraph 57 above.

(4) The controller is liable for an amount of interest only if--

(a) a notice stating the amount is served on him, or

(b) other reasonable steps are taken with a view to bringing the amount of the liability to his attention,

before the end of the period of two years beginning with the day immediately following the final day.

(5) The final day is the last day of the period for which the interest in question is carried.

(6) If the controller is required to pay an amount in accordance with this paragraph, it shall be paid before the end of the period of thirty days beginning with the day immediately following the notification day.

(7) The notification day is--

(a) in a case where notice is served on a controller as mentioned in sub-paragraph (4)(a) above, the day on which the notice is served, or

(b) in a case where other reasonable steps are taken as mentioned in sub-paragraph (4)(b) above, the day on which the last of those steps is taken.

(8) Where by virtue of sub-paragraph (2) above a controller is liable to pay interest which arises under paragraph 27 above, paragraph 28 above shall apply in relation to that interest as it applies to interest which a person is liable under paragraph 27 above to pay.

Reviews

59 Section 54 of this Act shall apply to a decision of the Commissioners under this Part of this Schedule--

(a) that a person is a controller,

(b) that a person is liable under this Part of this Schedule to pay any amount (including a penalty under paragraph 60 below),

(d) as to the amount of any liability or any allowance under this Part of this Schedule,

as it applies to the other decisions of the Commissioners specified in subsection (1) of that section.

Notice that person is, or is no longer, a controller

60 (1) This paragraph applies where--

(a) on the date when this paragraph comes into force, a person is a controller of the whole or a part of a landfill site, or

(b) after that date, a person becomes or ceases to be a controller of the whole or a part of a landfill site.

(2) The controller, and the operator of the landfill site in question, shall be under a duty to secure that notice which complies with the requirements of sub-paragraph (3) below appropriate to the case in question is given to the Commissioners.

(3) The requirements of this sub-paragraph are that the notice--

(a) states that a person is, has become or has ceased to be a controller,

(b) identifies that person and the site under his control or formerly under his control,

(d) is given within the period of thirty days beginning with the day immediately following--

(i) the day when this paragraph comes into force, in a case falling within sub-paragraph (1)(a) above, or

(ii) the day when the person in question becomes or ceases to be the controller, in a case falling within sub-paragraph (1)(b) above.

(4) If a person fails to comply with sub-paragraph (2) above, he is liable to a penalty of £250.

(5) Paragraph 25 above applies to a penalty under sub-paragraph (4) above as it applies to a penalty under Part V of this Schedule.

Extension of time limits where notice not served

61 (1) This paragraph applies where--

(a) a person is liable under paragraph 49 above to pay an amount of landfill tax or liable under paragraph 58 above to pay interest, or

(b) the Commissioners are entitled under paragraph 52, 53 or 54 above to determine an amount which a person is liable to pay.

(2) The reference to two years in paragraph 51(2), 52(2), 53(5), 54(3) or 58(4) above (as the case may be) shall be treated as a reference to twenty years if the requirement of paragraph 60(2) above to give notice to the Commissioners in relation to the person mentioned in sub-paragraph (1) above being or becoming a controller has not been complied with. "

Section 143(1).

SCHEDULE 38 Regulations for providing incentives for electronic communications

Introduction

1 (1) Regulations may be made in accordance with this Schedule for providing incentives to use electronic communications--

(a) for the purposes mentioned in section 132(1) of the [1999 c. 16.] Finance Act 1999 (power to provide for use of electronic communications for delivery of information and making of payments), or

(b) for any other communications with the tax authorities or in connection with taxation matters.

(2) The power to make regulations under this Schedule is conferred--

(a) on the Commissioners of Inland Revenue in relation to matters which are under their care and management, and

(b) on the Commissioners of Customs and Excise in relation to matters which are under their care and management.

Kinds of incentive

2 (1) The incentives shall be of such description as may be provided for in the regulations.

(2) They may, in particular, take the form of--

(a) discounts;

(b) the allowing of additional time to comply with any obligations under tax legislation (including obligations relating to the payment of tax or other amounts); or

Conditions of entitlement

3 (1) The regulations may make provision as to the conditions of entitlement to an incentive.

(2) They may, in particular, make entitlement conditional--

(a) on the use of electronic communications for all communications or payments (or all communications and payments of a specified description) with, to or from the tax authority concerned, and

(b) on the use of specified means of electronic communication or payment acceptable to the tax authority concerned.

(3) The regulations may make provision for an appeal against a decision that the conditions of entitlement are not met.

Withdrawal of entitlement

4 (1) The regulations may make provision for the withdrawal of an incentive in specified circumstances.

(2) If they do, they may make provision--

(a) for giving notice of the withdrawal,

(b) for an appeal, and

(3) The regulations may provide that specified enactments relating to assessments, appeals and recovery of tax are to apply, with such adaptations as may be specified, in relation to the withdrawal of an incentive.

Power to authorise provision by directions

5 The regulations may authorise the making of any such provision as is mentioned in paragraph 3 or 4 by means of a specific or general direction given by the Commissioners of Inland Revenue or the Commissioners of Customs and Excise.

Power to provide for penalties

6 (1) The regulations may provide for contravention of, or failure to comply with, a specified provision of any such regulations to attract a penalty of a specified amount not exceeding £1,000.

(2) If they do, they may provide that specified enactments relating to penalties imposed in relation to any taxation matter (including enactments relating to assessments, review and appeals) are to apply, with or without modifications, in relation to penalties under the regulations.

General supplementary provisions

7 (1) Power to make provision by regulations under this Schedule includes power--

(a) to make different provision for different cases; and

(b) to make such incidental, supplemental, consequential and transitional provision in connection with any provision contained in any such regulations as the persons exercising the power think fit.

(2) The power to make regulations under this Schedule is exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.

Interpretation

8 (1) In this Schedule--

"discount" includes payment;
"electronic communications" includes any communications by means of a telecommunication system (within the meaning of the [1984 c. 12.] Telecommunications Act 1984);
"legislation" means any enactment, Community legislation or subordinate legislation;
"payment" includes a repayment;
"subordinate legislation" has the same meaning as in the [1978 c. 30.] Interpretation Act 1978;
"taxation matter" means any of the matters under the care and management of the Commissioners of Inland Revenue or the Commissioners of Customs and Excise;
"tax authorities" means--
(a)
the Commissioners of Inland Revenue or the Commissioners of Customs and Excise,
(b)
any officer of either body of Commissioners; or
(c)
any other person who for the purposes of electronic communications is acting under the authority of either body of Commissioners;
"tax legislation" means legislation relating to any taxation matter.

(2) References in this Schedule to the delivery of information have the same meaning as in section 132 of the [1999 c. 16.] Finance Act 1999.

Section 149(2).

SCHEDULE 39 New Schedule 1AA to the Taxes Management Act 1970

The Schedule inserted after Schedule 1 to the [1970 c. 9.] Taxes Management Act 1970 is as follows:

" Schedule 1AA Orders for production of documents

Introduction

1 The provisions of this Schedule supplement section 20BA.

Authorised officer of the Board

2 (1) In section 20BA(1) an "authorised officer of the Board" means an officer of the Board authorised by the Board for the purposes of that section.

(2) The Board may make provision by regulations as to--

(a) the procedures for approving in any particular case the decision to apply for an order under that section, and

(b) the descriptions of officer by whom such approval may be given.

Notice of application for order

3 (1) A person is entitled--

(a) to notice of the intention to apply for an order against him under section 20BA, and

(b) to appear and be heard at the hearing of the application,

unless the appropriate judicial authority is satisfied that this would seriously prejudice the investigation of the offence.

(2) The Board may make provision by regulations as to the notice to be given, the contents of the notice and the manner of giving it.

Obligations of person given notice of application

4 (1) A person who has been given notice of intention to apply for an order under section 20BA(4) shall not--

(a) conceal, destroy, alter or dispose of any document to which the application relates, or

(b) disclose to any other person information or any other matter likely to prejudice the investigation of the offence to which the application relates.

This is subject to the following qualifications.

(2) Sub-paragraph (1)(a) does not prevent anything being done--

(a) with the leave of the appropriate judicial authority,

(b) with the written permission of an officer of the Board,

(d) after any order made on the application has been complied with.

(3) Sub-paragraph (1)(b) does not prevent a professional legal adviser from disclosing any information or other matter--

(a) to, or to a representative of, a client of his in connection with the giving by the adviser of legal advice to the client; or

(b) to any person--

(i) in contemplation of, or in connection with, legal proceedings; and

(ii) for the purpose of those proceedings.

This sub-paragraph does not apply in relation to any information or other matter which is disclosed with a view to furthering a criminal purpose.

(4) A person who fails to comply with the obligation in sub-paragraph (1)(a) or (b) above may be dealt with as if he had failed to comply with an order under section 20BA.

Exception of items subject to legal privilege

5 (1) Section 20BA does not apply to items subject to legal privilege.

(2) For this purpose "items subject to legal privilege" means--

(a) communications between a professional legal adviser and his client or any person representing his client made in connection with the giving of legal advice to the client;

(b) communications between a professional legal adviser and his client or any person representing his client or between such an adviser or his client or any such representative and any other person made in connection with or in contemplation of legal proceedings and for the purposes of such proceedings; and

(i) in connection with the giving of legal advice; or

(ii) in connection with or in contemplation of legal proceedings and for the purposes of such proceedings,

when they are in the possession of a person who is entitled to possession of them.

(3) Items held with the intention of furthering a criminal purpose are not subject to legal privilege.

Resolution of disputes as to legal privilege

6 (1) The Board may make provision by regulations for the resolution of disputes as to whether a document, or part of a document, is an item subject to legal privilege.

(2) The regulations may, in particular, make provision as to--

(a) the custody of the document whilst its status is being decided;

(b) the appointment of an independent, legally qualified person to decide the matter;

(d) who is to meet the costs of the proceedings.

Complying with an order

7 (1) The Board may make provision by regulations as to how a person is to comply with an order under section 20BA.

(2) The regulations may, in particular, make provision as to--

(a) the officer of the Board to whom the documents are to be produced,

(b) the address to which the documents are to be taken or sent, and

(3) Where an order under section 20BA applies to a document in electronic or magnetic form, the order shall be taken to require the person to deliver the information recorded in the document in a form in which it is visible and legible.

Procedure where documents are delivered

8 (1) The provisions of section 20CC(3) to (9) apply in relation to a document delivered to an officer of the Board in accordance with an order under section 20BA as they apply to a thing removed by an officer of the Board as mentioned in subsection (1) of section 20CC.

(2) In section 20CC(9) as applied by sub-paragraph (1) above the reference to the warrant concerned shall be read as a reference to the order concerned.

Sanction for failure to comply with order

9 (1) If a person fails to comply with an order made under section 20BA, he may be dealt with as if he had committed a contempt of the court.

(2) For this purpose "the court" means--

(a) in relation to an order made by a Circuit judge, the Crown Court;

(b) in relation to an order made by a sheriff, a sheriff court;

Notice of order etc.

10 The Board may make provision by regulations as to the circumstances in which notice of an order under section 20BA, or of an application for such an order, is to be treated as having been given.

General provisions about regulations

11 Regulations under this Schedule--

(a) may contain such incidental, supplementary and transitional provision as appears to the Board to be appropriate, and

(b) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament. " .

Section 156.

SCHEDULE 40 Repeals

Part I Excise duties

(1) Hydrocarbon oils

Chapter	Short title	Extent of repeal
1979 c. 5.	The Hydrocarbon Oil Duties Act 1979.	In section 13(1) the words from "; and the Commissioners" to the end.
		Section 13A(1B), (1C) and (2).
		In Schedule 1, paragraph 2(1)(b) and the word "or" immediately preceding it, and paragraph 2(4).
		In Schedule 2A--
		(a) paragraph 8(4);
		(b) in paragraph 11(1), the definitions of "leaded" and "unleaded" petrol.
1997 c. 16.	The Finance Act 1997.	Section 7(3) and (9)(e).
		In Schedule 6, paragraph 6(2).

1 The repeals in section 13A of and Schedule 2A to the Hydrocarbon Oil Duties Act 1979 and section 7 of the Finance Act 1997 come into force on the day appointed under section 5(6) of this Act.

2 The repeals in section 13 of the Hydrocarbon Oil Duties Act 1979 and Schedule 6 to the Finance Act 1997 have effect in accordance with section 8 of this Act.

3 The repeals in Schedule 1 to the Hydrocarbon Oil Duties Act 1979 have effect in relation to the use of rebated heavy oil as fuel on or after 1st May 2000.

(2) Tobacco

Chapter	Short title	Extent of repeal
1979 c. 7.	The Tobacco Products Duty Act 1979.	Section 7(1)(c)(i).

(3) Amusement machine licence duty

Chapter	Short title	Extent of repeal
1981 c. 63.	The Betting and Gaming Duties Act 1981.	In section 25(1B)(b), the words ", other than one consisting only in a blank surface onto which light is projected".
		In section 25(7), the word "or" at the end of paragraph (c).

These repeals have effect in accordance with paragraph 7 of Schedule 2 to this Act.

(4) Air passenger duty

Chapter	Short title	Extent of repeal
1994 c. 9.	The Finance Act 1994.	In section 31, subsections (1), (2) and (6).
		In section 43, in subsection (2), the words "Subject to subsection (3) below" and subsection (3).
1997 c. 16.	The Finance Act 1997.	Section 9.

1 The repeals in the Finance Act 1994 have effect in accordance with section 19(6) of this Act.

2 The repeal in the Finance Act 1997 has effect in accordance with section 18(8) of this Act.

Part II Income tax, corporation tax and capital gains tax

(1) Giving to charity

Chapter	Short title	Extent of repeal
1988 c. 1.	The Income and Corporation Taxes Act 1988.	In section 202, in subsection (6), the words "must not be paid by the employee under a covenant", and subsection (7).
		In section 339, subsections (2), (3), (3A), (3F), (6), (7) and (8) and, in subsection (9), the words "in subsections (1) to (4) above includes".
		In section 347A, subsections (2)(b), (7) and (8).
		In section 505(6), the words "and, for this purpose, all covenanted payments to charity (within the meaning of section 347A(7)) shall be treated as a single item".
1989 c. 26.	The Finance Act 1989.	Section 59.
1990 c. 29.	The Finance Act 1990.	In section 25, in subsection (2), paragraphs (c) and (g) and, in subsection (12), paragraphs (b) and (e) and the word "and" immediately preceding paragraph (e).
1998 c. 36.	The Finance Act 1998.	In section 48, subsections (3), (6) and (7).

1 The repeals in section 202 of the Taxes Act 1988 have effect in accordance with section 38(7) of this Act.

2 The repeals in section 339 of the Taxes Act 1988 have effect in accordance with section 40(11) of this Act.

3 The repeals in sections 347A and 505 of the Taxes Act 1988 and the repeal of section 59 of the Finance Act 1989 have effect in accordance with section 41(9) of this Act.

4 The repeals in section 25 of the Finance Act 1990 have effect in accordance with section 39(10) of this Act.

(2) Benefits in kinds: deregulatory amendments

Chapter	Short title	Extent of repeal
1988 c. 1.	The Income and Corporation Taxes Act 1988.	Section 155(2).
		Section 160(1C).
		Section 161(1A) and (1B).
1994 c. 9.	The Finance Act 1994.	Section 88(5).

These repeals have effect in accordance with section 57(2) of this Act.

(3) Cars available for private use

Chapter	Short title	Extent of repeal
1996 c. 8.	The Finance Act 1996.	In Schedule 20, paragraph 40.
1999 c. 16.	The Finance Act 1999.	Section 47.

These repeals have effect in accordance with section 59 of this Act.

(4) Occupational and personal pension schemes

Chapter	Short title	Extent of repeal
1988 c. 1.	The Income and Corporation Taxes Act 1988.	In section 611(3), the words "retirement benefits" in both places where they occur.
		Section 630(3).
		Section 633(2).
		In section 638(4), the words "the aggregate of", paragraph (b) and the word "and" immediately preceding it.
		Section 641.
		Section 642.
		In section 645(3), the word "and" immediately preceding paragraph (c).
		Section 646(7).
		Section 660A(7).
1996 c. 8.	The Finance Act 1996.	In Schedule 21, paragraph 18.

1 The repeal of section 633(2) of the Taxes Act 1988 has effect in accordance with paragraph 9 of Schedule 13 to this Act.

2 The repeals in section 638(4) of that Act have effect in relation to contributions paid in the year 2001-02 and subsequent years of assessment.

3 The repeals of section 641 of that Act and paragraph 18 of Schedule 21 to the Finance Act 1996 have effect in accordance with paragraph 17 of Schedule 13 to this Act.

4 The repeal of section 642 of the Taxes Act 1988 has effect in accordance with paragraph 19 of Schedule 13 to this Act.

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