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Finance Act 2003 (c. 14)(The document as of February, 2008) Page 2 Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 | P.14 | P.15 | P.16 | P.17 | P.18 | P.19 | P.20 | P.21 | P.22 | P.23 | P.24 | P.25 | P.26 | P.27 | P.28 | P.29 | P.30 | P.31 | P.32 | P.33 | P.34 | P.35 | P.36 | P.37 | P.38 | P.39 (b) the amount of his expenditure on bingo winnings for the period (calculated in accordance with section 20). (4) Bingo duty charged in respect of a person's bingo promotion profits shall be paid by him. (5) Where the amount that would be charged in respect of a person's bingo promotion profits for an accounting period is less than £1, no duty shall be charged. 18 Accounting period(1) For the purposes of section 17 an accounting period ends, and another begins, at the end of the last Sunday in each calendar month. (2) But regulations under paragraph 9 of Schedule 3 to this Act may make provision in place of subsection (1) for the purposes of the application of section 17 to specified persons or in specified circumstances. (3) Regulations made by virtue of subsection (2) may make transitional provision. 19 Bingo receipts(1) A person has bingo receipts for an accounting period if payments fall due in the period in respect of entitlement to participate in bingo promoted by him. (2) The amount of the person's bingo receipts for the accounting period is the aggregate of those payments. (3) For the purposes of subsections (1) and (2)-- (a) an amount in respect of entitlement to participate in a game of bingo is to be treated as falling due in the accounting period in which the game is played, (b) where a payment relates to a supply of services on which value added tax is chargeable, the amount of value added tax chargeable shall be disregarded (irrespective of whether or not that amount is paid by way of value added tax), (c) it is immaterial whether an amount falls due to be paid to the promoter or to another person, (d) it is immaterial whether an amount is described as a fee for participation, as a stake, or partly as one and partly as the other, and (e) where a sum is paid partly in respect of entitlement to participate in a game of bingo and partly in respect of another matter-- (i) such part of the sum as is applied to, or properly attributable to, entitlement to participate in the game shall be treated as an amount falling due in respect of entitlement to participate in the game, and (ii) the remainder shall be disregarded. 20 Expenditure on bingo winnings(1) A person's expenditure on bingo winnings for an accounting period is the aggregate of the values of prizes provided by him in that period by way of winnings at bingo promoted by him. (2) Where a prize is obtained by the promoter from a person not connected with him, the cost to the promoter shall be treated as the value of the prize for the purpose of subsection (1). (3) Where a prize is a voucher which-- (a) may be used in place of money as whole or partial payment for benefits of a specified kind obtained from a specified person, (b) specifies an amount as the sum or maximum sum in place of which the voucher may be used, and (c) does not fall within subsection (2), the specified amount is the value of the voucher for the purpose of subsection (1). (4) Where a prize is a voucher (whether or not it falls within subsection (2)) it shall be treated as having no value for the purpose of subsection (1) if-- (a) it does not satisfy subsection (3)(a) and (b), or (b) its use as described in subsection (3)(a) is subject to a specified restriction, condition or limitation which may make the value of the voucher to the recipient significantly less than the amount mentioned in subsection (3)(b). (5) In the case of a prize which-- (a) is neither money nor a voucher, and (b) does not fall within subsection (2), the value of the prize for the purpose of subsection (1) is-- (i) the amount which the prize would cost the promoter if obtained from a person not connected with him, or (ii) where no amount can reasonably be determined in accordance with sub-paragraph (i), nil. (6) For the purpose of this section-- (a) a reference to connection between two persons shall be construed in accordance with section 839 of the Income and Corporation Taxes Act 1988 (connected persons), and (b) an amount paid by way of value added tax on the acquisition of a thing shall be treated as part of its cost (irrespective of whether or not the amount is taken into account for the purpose of a credit or refund). 20A Combined bingo(1) A game of bingo is "combined bingo" if-- (a) it is multiple bingo within the meaning of section 1 of the Gaming (Bingo) Act 1985, or (b) it is played in more than one place and promoted by more than one person. (2) Payments made in respect of entitlement to participate in combined bingo shall be treated for the purposes of section 19(1) as bingo receipts only of the first promoter to whom (or at whose direction) they are paid. (3) Where money representing stakes hazarded at combined bingo is paid in an accounting period by one promoter of the bingo ("the first promoter") to another ("the second promoter")-- (a) the money shall not be treated as a bingo receipt of the second promoter for the purposes of section 19(1), (b) the payment shall be treated as expenditure of the first promoter on bingo winnings for the accounting period for the purposes of section 20(1), and (c) no subsequent payment of all or part of the money shall be treated as expenditure on bingo winnings for the purposes of section 20(1) (whether paid by the second promoter to another person, by the first promoter having received it from the second promoter, or otherwise). (4) Subsections (2) and (3) shall apply only where the combined bingo is played entirely in the United Kingdom. 20B Carrying losses forward(1) Where the calculation of a person's bingo promotion profits for an accounting period results in a negative amount ("the loss")-- (a) no bingo duty shall be chargeable in respect of that accounting period, and (b) for the purpose of section 17(3), the amount of the person's expenditure on bingo winnings for the next accounting period shall be increased by the amount of the loss. (2) Subsection (1) applies to an accounting period whether or not the loss results wholly or partly from the previous application of that subsection. 20C Supplementary(1) Part 2 of Schedule 3 to this Act (bingo duty: supplementary) shall have effect. (2) In sections 17 to 20B above, this section and Schedule 3--
(3) For the purposes of those provisions, except in relation to combined bingo, the promoter of a game of bingo is-- (a) in the case of licensed bingo, the holder of the licence, and (b) in the case of non-licensed bingo, the person who provides the facilities for the game. (4) For the purposes of those provisions in relation to combined bingo a person promotes a game of bingo if he is wholly or partly responsible for organising it or for providing facilities for it. (5) In those provisions a reference to entitlement to participate in a game of bingo includes a reference to an opportunity to participate in a game of bingo in respect of which a charge is made (whether by way of a fee for participation, a stake, or both). (6) In proceedings relating to bingo duty under the customs and excise Acts an averment in any process that a particular game is a version of bingo shall, until the contrary is proved, be sufficient evidence that it is. " . (2) In paragraph 1 of Schedule 3 to the Betting and Gaming Duties Act 1981 (c. 63) (bingo duty: exemptions: domestic bingo) for "Bingo duty shall not be charged in respect of" substitute "In calculating liability to bingo duty no account shall be taken of". (3) For paragraph 2 of Schedule 3 to the Betting and Gaming Duties Act 1981 (bingo duty: exemptions: small-scale bingo) substitute-- " Small-scale bingo2 (1) This paragraph applies where entitlement to participate in non-licensed bingo depends on a person's being-- (a) a member of a group or organisation, (b) a guest of a member of a group or organisation, or (c) a guest of a group or organisation. (2) Payments in respect of entitlement to participate in the non-licensed bingo shall not be brought into account in relation to any person for the purpose of section 19. (3) Winnings at the non-licensed bingo shall not be brought into account in relation to any person for the purpose of section 20. 2A (1) In the case of non-licensed bingo to which paragraph 2 does not apply-- (a) payments in respect of entitlement to participate in the non-licensed bingo shall not be brought into account in relation to any person for the purpose of section 19 (subject to sub-paragraphs (2) to (5) below), and (b) winnings at the non-licensed bingo shall not be brought into account in relation to any person for the purpose of section 20 (subject to sub-paragraphs (2) to (5) below). (2) If on a day winnings at non-licensed bingo promoted by a person exceed £500, sub-paragraph (1) shall not apply in relation to the person in respect of the accounting period in which that day falls and the next two accounting periods. (3) If stakes exceeding in aggregate £500 are hazarded on a day at non-licensed bingo promoted by a person, sub-paragraph (1) shall not apply in relation to the person in respect of the accounting period in which that day falls and the next two accounting periods. (4) If in an accounting period winnings at non-licensed bingo promoted by a person exceed £7,500, sub-paragraph (1) shall not apply in relation to the person in respect of that accounting period and the next two accounting periods. (5) If stakes exceeding in aggregate £7,500 are hazarded in an accounting period at non-licensed bingo promoted by a person, sub-paragraph (1) shall not apply in relation to the person in respect of that accounting period and the next two accounting periods. (6) For the purposes of this paragraph winnings at bingo shall be valued in accordance with section 20(2) to (6). " . (4) After paragraph 2A of Schedule 3 to the Betting and Gaming Duties Act 1981 (c. 63) insert-- " Non-profit-making bingo2B In calculating liability to bingo duty no account shall be taken of bingo to which there apply (without any exception or modification by virtue of regulations) both-- (a) section 3 of the Gaming Act 1968 or Article 56 of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985 (prohibition on charging for participation), and (b) section 4 of that Act or Article 57 of that Order (prohibition of levy on stakes or winnings). " . (5) In paragraph 5(1) of Schedule 3 to the Betting and Gaming Duties Act 1981 (c. 63) (bingo duty: exemptions: commercial amusements) for "Bingo duty shall not be charged in respect of" substitute "In calculating liability to bingo duty no account shall be taken of". (6) In paragraph 6 of Schedule 3 to that Act (bingo duty: exemptions: machine bingo) for "Bingo duty shall not be charged in respect of" substitute "In calculating liability to bingo duty no account shall be taken of". (7) In paragraph 10(1) of Schedule 3 to that Act (notification and registration of bingo-promoters) for "which will, or may, be chargeable with bingo duty" substitute "in connection with which bingo duty may be chargeable". (8) The following paragraphs of Schedule 3 to that Act shall cease to have effect-- (a) paragraph 11 (announcement of prizes), (b) paragraph 12 (records), and (c) paragraph 15 (disputes). (9) In paragraph 16(2) of Schedule 3 to that Act (enforcement)-- (a) for "(being bingo which is or may be chargeable with bingo duty)" substitute "(being bingo in connection with which bingo duty may be chargeable)", and (b) paragraph (b) (and the word "or" immediately before it) shall cease to have effect. (10) This section shall have effect in relation to bingo played on or after 27th October 2003 (with which day the first accounting period for the purposes of section 17 of the Betting and Gaming Duties Act 1981 shall begin). 10 Amusement machines not operated by coins or tokens(1) In section 21 of the Betting and Gaming Duties Act 1981 (amusement machine licences), for subsections (3B) to (3D) (meaning of "fifty-penny machine") substitute-- " (3B) For the purposes of this section an amusement machine is a "fifty-penny machine" if, and only if-- (a) where it is a machine on which a game can be played solo, the cost for each time the game is played on it solo-- (i) does not exceed 50p, or (ii) where the machine provides differing numbers of games in different circumstances, cannot exceed 50p; and (b) where it is a machine on which a game can be played by more than one person at a time, the cost per player for each time the game is played on it simultaneously by more than one player-- (i) does not exceed 50p, or (ii) where the machine provides differing numbers of games in different circumstances, cannot exceed 50p. " . (2) In section 25(1) of that Act (definition of "amusement machine"), in paragraph (c) for "coin or token" substitute "coin, token or other thing". (3) In section 26(2) of that Act (interpretation), for the definitions of "two-penny machine", "five-penny machine" and "ten-penny machine" substitute-- " "two-penny machine" means an amusement machine in relation to which the cost for each time a game is played on it-- (a) does not exceed 2p, or (b) where the machine provides differing numbers of games in different circumstances, cannot exceed 2p, and "five-penny machine" and "ten-penny machine" have a corresponding meaning; " . (4) In the following provisions of the Value Added Tax Act 1994 (c. 23)-- (a) the definition of "gaming machine" in section 23(4), and (b) Note (3) (definition of "gaming machine") to Group 4 of Schedule 9, for "coin or token" substitute "coin, token or other thing". 11 Amusement machines: use of currencies other than sterling(1) In section 26 of the Betting and Gaming Duties Act 1981 (c. 63) (interpretation etc), omit the definition of "coin" in subsection (2). (2) After that section insert-- " 26A Amounts in currencies other than sterling(1) Any reference in this Part of this Act to a amount in sterling, in the context of-- (a) the cost of playing a game, or (b) the amount of the prize for a game, includes a reference to the equivalent amount in another currency. (2) The equivalent amount in another currency, in relation to any day, shall be determined by reference to the London closing exchange rate for the previous day. (3) For the purposes of determining what duty is payable on an amusement machine licence in a case where this section applies, the equivalent in another currency of an amount in sterling shall be taken to be its equivalent on the day on which the application for the licence is received by the Commissioners, or the due date in the case of a default licence. (4) In subsection (3) above--
(3) This section does not apply in relation to any amusement machine licence granted before the day on which this Act is passed or to anything done under such a licence. 12 Responsibility for unlicensed amusement machines(1) In section 24(5) of the Betting and Gaming Duties Act 1981 (c. 63) (penalty for unlicensed amusement machines), for paragraph (c) (liability of person responsible for, inter alia, issuing or exchanging coins etc for amusement machine) substitute-- " (c) is a person responsible for controlling the use of any amusement machine on the premises, or " . (2) In Schedule 4A to that Act (unlicensed amusement machines), for paragraph (c) of paragraph 7(3) (which makes similar provision) substitute-- " (c) responsible for controlling the use of any amusement machine on the premises, or " . 13 Rates of gaming duty(1) For the Table in section 11(2) of the Finance Act 1997 (c. 16) (rates of gaming duty) substitute-- " Table
(2) This section has effect in relation to accounting periods beginning on or after 1st April 2003. Vehicle excise duty14 Vehicle excise duty: rates(1) In paragraph 1 of Schedule 1 to the Vehicle Excise and Registration Act 1994 (c. 22) (the general rate)-- (a) in sub-paragraph (2) (general rate of duty except in case of vehicle with engine with cylinder capacity not exceeding 1,549 cubic centimetres) for "ВЈ160" substitute "ВЈ165"; (b) in sub-paragraph (2A) (general rate of duty in case of vehicle with engine with cylinder capacity not exceeding 1,549 cubic centimetres) for "ВЈ105" substitute "ВЈ110". (2) For the Table in paragraph 1B of that Schedule (rates of duty applicable to light passenger vehicles registered on or after 1st March 2001 on basis of certificate specifying CO2 emissions figure) substitute--
(3) In paragraph 1J of that Schedule (rates of duty applicable to light goods vehicles first registered on or after 1st March 2001)-- (a) in paragraph (a) (vehicle which is not a lower-emission van) for "ВЈ160" substitute "ВЈ165"; (b) in paragraph (b) (vehicle which is a lower-emission van) for "ВЈ105" substitute "ВЈ110". (4) This section applies to any licence taken out on or after 17th April 2003 for a period beginning on or after 1st May 2003. 15 Disclosure for exemptions: Northern IrelandIn section 22ZA of the Vehicle Excise and Registration Act 1994 (c. 22) (nil licences for vehicles for disabled persons: disclosure of information) in subsection (1)(a) (which provides that the section applies to certain information held by the Secretary of State or a person providing services to him) in sub-paragraphs (i) and (ii), after "the Secretary of State" insert "or a Northern Ireland department". 16 Duty at higher rate: exception for tractive units(1) After section 15 of the Vehicle Excise and Registration Act 1994 insert-- " 15A Exception for tractive units from charge at higher rate(1) Where-- (a) a vehicle licence has been taken out for a tractive unit, and (b) the licence was taken out at a rate of vehicle excise duty applicable to a tractive unit which is to be used with semi-trailers with a minimum number of axles, duty at a higher rate does not become chargeable under section 15 by reason only that while the licence is in force the tractive unit is used with a semi-trailer with fewer axles than that minimum number, if the condition in subsection (2) is satisfied. (2) The condition is that the rate of duty at which the licence was taken out is equal to or exceeds the rate which would have been applicable if the revenue weight of the tractive unit had been a weight equal to the actual laden weight, at the time of the use, of the articulated vehicle consisting of the tractive unit and the semi-trailer. " . (2) Section 16 of that Act (which makes provision, in the case of tractive units, for exemptions from the charge to vehicle excise duty at a higher rate on a basis different from that set out in new section 15A) shall cease to have effect. (3) This section has effect in relation to the use of a tractive unit on or after 9th April 2003. Part 2 Value added tax17 Requirement of evidence or security(1) The Value Added Tax Act 1994 (c. 23) is amended as follows. (2) In section 24(6)(a) (regulations about input tax etc: requirement of documentary evidence) after "documents" insert "or other information". (3) In paragraph 4 of Schedule 11 (power to require security and production of documents) for sub-paragraph (1) substitute-- " (1) The Commissioners may, as a condition of allowing or repaying input tax to any person, require the production of such evidence relating to VAT as they may specify. (1A) If they think it necessary for the protection of the revenue, the Commissioners may require, as a condition of making any VAT credit, the giving of such security for the amount of the payment as appears to them appropriate. " . (4) For sub-paragraph (2) of that paragraph substitute-- " (2) If they think it necessary for the protection of the revenue, the Commissioners may require a taxable person, as a condition of his supplying or being supplied with goods or services under a taxable supply, to give security, or further security, for the payment of any VAT that is or may become due from-- (a) the taxable person, or (b) any person by or to whom relevant goods or services are supplied. (3) In sub-paragraph (2) above "relevant goods or services" means goods or services supplied by or to the taxable person. (4) Security under sub-paragraph (2) above shall be of such amount, and shall be given in such manner, as the Commissioners may determine. (5) The powers conferred on the Commissioners by sub-paragraph (2) above are without prejudice to their powers under section 48(7). " . (5) In section 72(11) (penalty for supplying goods in contravention of paragraph 4(2) of Schedule 11) after "supplies" insert "or is supplied with". (6) In section 83(l) (right of appeal against requirement of security under paragraph 4(2) of Schedule 11 etc) for "paragraph 4(2)" substitute "paragraph 4(1A) or (2)". (7) In section 84 (further provisions relating to appeals) after subsection (4D) insert-- " (4E) Where an appeal is brought against a requirement imposed under paragraph 4(2)(b) of Schedule 11 that a person give security, the tribunal shall allow the appeal unless the Commissioners satisfy the tribunal that-- (a) there has been an evasion of, or an attempt to evade, VAT in relation to goods or services supplied to or by that person, or (b) it is likely, or without the requirement for security it is likely, that VAT in relation to such goods or services will be evaded. (4F) A reference in subsection (4E) above to evading VAT includes a reference to obtaining a VAT credit that is not due or a VAT credit in excess of what is due. " . (8) This section shall be deemed to have come into force on 10th April 2003. 18 Joint and several liability for unpaid VAT of another trader(1) In Part 4 of the Value Added Tax Act 1994 (c. 23) (administration, collection and enforcement), after section 77 insert-- " Liability for unpaid VAT of another77A Joint and several liability of traders in supply chain where tax unpaid(1) This section applies to goods of any of the following descriptions-- (a) telephones and any other equipment, including parts and accessories, made or adapted for use in connection with telephones or telecommunication; (b) computers and any other equipment, including parts, accessories and software, made or adapted for use in connection with computers or computer systems. (2) Where-- (a) a taxable supply of goods to which this section applies has been made to a taxable person, and (b) at the time of the supply the person knew or had reasonable grounds to suspect that some or all of the VAT payable in respect of that supply, or on any previous or subsequent supply of those goods, would go unpaid, the Commissioners may serve on him a notice specifying the amount of the VAT so payable that is unpaid, and stating the effect of the notice. (3) The effect of a notice under this section is that-- (a) the person served with the notice, and (b) the person liable, apart from this section, for the amount specified in the notice, are jointly and severally liable to the Commissioners for that amount. (4) For the purposes of subsection (2) above the amount of VAT that is payable in respect of a supply is the lesser of-- (a) the amount chargeable on the supply, and (b) the amount shown as due on the supplier's return for the prescribed accounting period in question (if he has made one) together with any amount assessed as due from him for that period (subject to any appeal by him). (5) The reference in subsection (4)(b) above to assessing an amount as due from a person includes a reference to the case where, because it is impracticable to do so, the amount is not notified to him. (6) For the purposes of subsection (2) above, a person shall be presumed to have reasonable grounds for suspecting matters to be as mentioned in paragraph (b) of that subsection if the price payable by him for the goods in question-- (a) was less than the lowest price that might reasonably be expected to be payable for them on the open market, or (b) was less than the price payable on any previous supply of those goods. (7) The presumption provided for by subsection (6) above is rebuttable on proof that the low price payable for the goods was due to circumstances unconnected with failure to pay VAT. (8) Subsection (6) above is without prejudice to any other way of establishing reasonable grounds for suspicion. (9) The Treasury may by order amend subsection (1) above; and any such order may make such incidental, supplemental, consequential or transitional provision as the Treasury think fit. (10) For the purposes of this section-- (a) "goods" includes services; (b) an amount of VAT counts as unpaid only to the extent that it exceeds the amount of any refund due. " . (2) In section 83 of that Act (appeals) after paragraph (r) insert-- " (ra) any liability arising by virtue of section 77A; " . (3) In section 84(3) of that Act (appeals not to be entertained unless the VAT has been paid or deposited, except where that would cause hardship) for "or (q)" substitute ", (q) or (ra)". (4) This section shall be deemed to have come into force on 10th April 2003 except subsection (3) which applies in relation to any appeal notice of which is given on or after the day on which this Act is passed. 19 Face-value vouchersSchedule 1 to this Act (VAT: face-value vouchers) has effect. 20 Supplies arising from prior grant of fee simple(1) In section 96 of the Value Added Tax Act 1994 (c. 23) (interpretative provisions), after subsection (10A) (time for determining status of supplies arising from prior grant of interest etc) insert-- " (10B) Notwithstanding subsection (10A) above-- (a) item 1 of Group 1 of Schedule 9 does not make exempt any supply that arises for the purposes of this Act from the prior grant of a fee simple falling within paragraph (a) of that item; and (b) that paragraph does not prevent the exemption of a supply that arises for the purposes of this Act from the prior grant of a fee simple not falling within that paragraph. " . (2) This section applies in relation to any supply that arises for the purposes of the Value Added Tax Act 1994 (c. 23) from the prior grant of a fee simple made on or after 9th April 2003. 21 Business gifts(1) In Schedule 4 to the Value Added Tax Act 1994 (matters to be treated as supply of goods or services), paragraph 5 (business gifts etc) is amended as follows. (2) In sub-paragraph (2) (cases where sub-paragraph (1) does not apply), for paragraph (a) substitute-- " (a) a business gift the cost of which, together with the cost of any other business gifts made to the same person in the same year, was not more than £50. " . (3) After that sub-paragraph insert-- " (2ZA) In sub-paragraph (2) above--
(4) This section applies in relation to gifts made on or after 1st October 2003. 22 Non-business use of business property(1) In paragraph 5 of Schedule 4 to the Value Added Tax Act 1994 (matters to be treated as supply of goods or services), after sub-paragraph (4) (non-business use of business asset treated as supply of services) insert-- " (4A) Notwithstanding paragraph 9(1) below, sub-paragraph (4) above does not apply to-- (a) any interest in land, (b) any building or part of a building, (c) any civil engineering work or part of such a work, or (d) any goods incorporated or to be incorporated in a building or civil engineering work (whether by being installed as fixtures or fittings or otherwise). " . (2) This section shall be deemed to have come into force on 9th April 2003. (3) This section does not apply in relation to any asset in respect of which the person in question or any of his predecessors became entitled before that date to a credit or repayment as mentioned in paragraph 5(5)(a) or 5(5)(b) of Schedule 4 to the Value Added Tax Act 1994 (c. 23). (4) In subsection (3)-- (a) "the person in question" means the person carrying on the business referred to in sub-paragraph (4) of paragraph 5 of that Schedule; (b) "predecessor" has the same meaning as in that paragraph; Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 | P.14 | P.15 | P.16 | P.17 | P.18 | P.19 | P.20 | P.21 | P.22 | P.23 | P.24 | P.25 | P.26 | P.27 | P.28 | P.29 | P.30 | P.31 | P.32 | P.33 | P.34 | P.35 | P.36 | P.37 | P.38 | P.39 -- Back --
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