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Finance Act 1997 (c. 16)(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 (b) at that time those premises are not specified in the entry on the gaming duty register for a person by whom at that time they are notifiable for the purposes of paragraph 6 of Schedule 1 to this Act. (5) The Commissioners may by regulations-- (a) provide for the cases in which dutiable gaming is to be treated as taking place on any premises for part only of an accounting period; and (b) in relation to such cases, provide for the parts of the gross gaming yield specified in the first column of the Table in subsection (2) above to be reduced in relation to those premises for that accounting period in such manner as may be determined in accordance with the regulations. (6) Where the Commissioners are satisfied-- (a) that dutiable gaming is, has been or may be taking place in the course of any accounting period at different premises situated at the same location or in very close proximity to each other, and (b) that the activities carried on at those premises are connected or form part of the same business or are, or are comprised in, connected businesses, the Commissioners may direct that for the purposes of gaming duty the different premises are to be treated as different parts of the same premises. (7) Sections 14 to 16 of the [1994 c. 9.] Finance Act 1994 (review and appeals) shall have effect in relation to any decision of the Commissioners to make or vary a direction under subsection (6) above as if that decision were a decision of a description specified in Schedule 5 to that Act. (8) For the purposes of this section the gross gaming yield from any premises in any accounting period shall consist of the aggregate of-- (a) the gaming receipts for that period from those premises; and (b) where a provider of the premises (or a person acting on his behalf) is banker in relation to any dutiable gaming taking place on those premises in that period, the banker's profits for that period from that gaming. (9) For the purposes of subsection (8) above the gaming receipts for an accounting period from any premises are the receipts in that period from charges made in connection with any dutiable gaming which has taken place on the premises other than-- (a) so much of any charge as represents value added tax, and (b) any charge the payment of which confers no more than an entitlement to admission to the premises. (10) In subsection (8) above the reference to the banker's profits from any gaming is a reference to the amount (if any) by which the value specified in paragraph (a) below exceeds the value specified in paragraph (b) below, that is to say-- (a) the value, in money or money's worth, of the stakes staked with the banker in any such gaming; and (b) the value, in money or money's worth, of the winnings paid by the banker to those taking part in such gaming otherwise than on behalf of a provider of the premises. (11) The Treasury may by order made by statutory instrument amend subsections (8) to (10) above. 12 Liability to pay gaming duty(1) The liability to pay the gaming duty charged on any premises for any accounting period shall fall jointly and severally on-- (a) every person who is a provider of the premises at a time in that period when dutiable gaming takes place there; (b) every person concerned in the organisation or management of any dutiable gaming taking place on those premises in that period; (c) where any of the persons mentioned in paragraphs (a) and (b) above is a body corporate that is treated as a member of a group for the purposes of Part I of Schedule 1 to this Act, every body corporate that is treated as a member of that group for those purposes; and (d) where any of the persons mentioned in paragraphs (a) to (c) above is a body corporate, every director of that body. (2) A person shall for the purposes of this section be conclusively presumed to be a provider of premises at any time if at that time-- (a) he is registered on the gaming duty register, and (b) those premises are specified in his entry on that register. (3) The Commissioners may by regulations make provision-- (a) for apportioning the liability for any gaming duty charged on any premises for an accounting period between different persons; and (b) for the amount of gaming duty charged on any premises for the different parts of a period for which an apportionment falls to be made to be computed (in accordance with regulations made by virtue of section 11(5)(b) above) as if each part of the period were the only part of the period during which dutiable gaming has taken place on those premises. (4) The Commissioners may by regulations impose obligations on any of the persons mentioned in subsection (1) above requiring them to make payments on account of any gaming duty that is likely to be chargeable on any premises. (5) Any failure by any person to pay any amount of gaming duty due from him-- (a) shall attract a penalty under section 9 of the [1994 c. 9.] Finance Act 1994 (civil penalties) which shall be calculated by reference to the amount that has not been paid; and (b) shall also attract daily penalties. (6) Where, in accordance with any regulations under subsection (4) above, any amount has become payable on account of gaming duty by any person, that amount shall be deemed-- (a) for the purposes of section 12 of the Finance Act 1994 (assessments to excise duty), to be an amount which has become due from that person in respect of gaming duty; (b) for the purposes of section 116 of the [1979 c. 2.] Customs and Excise Management Act 1979 (time and place etc. for payment of excise duty), to be an amount of gaming duty that has become payable; and (c) for the purposes of subsection (5) above, sections 51 and 52 below and section 137(1) of the Customs and Excise Management Act 1979 (recovery of duty), to be an amount of gaming duty due from that person; and an amount paid on account of gaming duty shall be deemed for the purposes of section 137A of the Customs and Excise Management Act 1979 (recovery of overpaid duty) to be an amount paid by way of that duty. 13 Supplemental provisions relating to gaming duty(1) Schedule 1 to this Act (which makes supplemental provision with respect to gaming duty) shall have effect. (2) Schedule 2 to this Act (which amends the Customs and Excise Management Act 1979 and contains other amendments) shall have effect. 14 Subordinate legislation relating to gaming duty(1) Any power conferred on the Commissioners by section 11 or 12 above or Schedule 1 to this Act to make regulations-- (a) shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons; and (b) shall include power to make different provision for different cases. (2) A statutory instrument containing an order under section 10(5) or 11(11) above-- (a) shall be laid before the House of Commons after being made; and (b) shall cease to have effect (without prejudice to anything previously done under the order or to the making of a new order) at the end of the period of 28 days after the day on which it was made unless it has been approved, before the end of that period, by a resolution of that House. (3) In reckoning the period of 28 days mentioned in subsection (2)(b) above, no account shall be taken of any time during which Parliament is dissolved or prorogued or during which the House of Commons is adjourned for more than four days. 15 Interpretation of gaming duty provisions(1) This section shall have effect for the purposes of construing the gaming duty provisions of this Act, that is to say, sections 10 to 14 above, this section and Schedule 1 to this Act. (2) The gaming duty provisions of this Act shall be construed as one with the [1979 c. 2.] Customs and Excise Management Act 1979. (3) In the gaming duty provisions of this Act--
(4) For the avoidance of doubt it is hereby declared that the imposition or payment of gaming duty does not make lawful any gaming which is otherwise unlawful. Vehicle excise duty16 Increase in general rate(1) In Schedule 1 to the [1994 c. 22.] Vehicle Excise and Registration Act 1994 (annual rates of duty), in paragraph 1(2) (the general rate), for "ВЈ140" there shall be substituted "ВЈ145". (2) This section applies in relation to licences taken out after 26th November 1996. 17 Exemption for vehicles for disabled personsIn paragraph 19 of Schedule 2 to the [1994 c. 22.] Vehicle Excise and Registration Act 1994 (exemption for vehicles for disabled persons), after sub-paragraph (2) there shall be inserted the following sub-paragraph-- " (2A) This paragraph shall have effect as if a person were in receipt of a disability living allowance by virtue of entitlement to the mobility component at the higher rate in any case where-- (a) he has ceased to be in receipt of it as a result of having ceased to satisfy a condition of receiving the allowance or of receiving the mobility component at that rate; (b) that condition is either-- (i) a condition relating to circumstances in which he is undergoing medical or other treatment as an in-patient in a hospital or similar institution; or (ii) a condition specified in regulations made by the Secretary of State; and (c) he would continue to be entitled to receive the mobility component of the allowance at the higher rate but for his failure to satisfy that condition. " 18 Provisions applying to exempt vehiclesSchedule 3 to this Act (which contains provisions applying to exempt vehicles) shall have effect. 19 Issue of licences before payment of duty(1) After section 19A of the [1994 c. 22.] Vehicle Excise and Registration Act 1994 there shall be inserted the following section-- " 19B Issue of licences before payment of duty(1) The Secretary of State may, if he thinks fit, issue a vehicle licence or a trade licence to a person who has agreed with the Secretary of State to pay the duty payable on the licence in a manner provided for in the agreement. (2) In a case where-- (a) a vehicle licence or a trade licence is issued to a person in accordance with subsection (1), (b) the duty payable on the licence is not received by the Secretary of State in accordance with the agreement, and (c) the Secretary of State sends a notice by post to the person informing him that the licence is void as from the time when it was granted, the licence shall be void as from the time when it was granted. (3) In a case where-- (a) paragraphs (a) and (b) of subsection (2) apply, (b) the Secretary of State sends a notice by post to the person requiring him to secure that the duty payable on the licence is paid within such reasonable period as is specified in the notice, (c) the requirement in the notice is not complied with, and (d) the Secretary of State sends a further notice by post to the person informing him that the licence is void as from the time when it was granted, the licence shall be void as from the time when it was granted. " (2) In subsection (1)(a) of section 35A of that Act (dishonoured cheques)-- (a) after "19A(2)(b)" there shall be inserted "or 19B(2)(c)"; and (b) after "19A(3)(d)" there shall be inserted "or 19B(3)(d)". 20 Removal and disposal of vehicles(1) In paragraph 3 of Schedule 2A to the [1994 c. 22.] Vehicle Excise and Registration Act 1994 (immobilisation, removal and disposal of vehicles), for sub-paragraph (1) there shall be substituted the following sub-paragraph-- " (1) The regulations may make provision with respect to any case where-- (a) an authorised person has reason to believe that an offence under section 29(1)-- (i) is being committed as regards a vehicle which is stationary on a public road; or (ii) was being committed as regards a vehicle at a time when an immobilisation device which is fixed to the vehicle was fixed to it in accordance with the regulations; and (b) such conditions as may be prescribed are fulfilled. " (2) In sub-paragraph (2) of that paragraph, for "an authorised person, or a person acting under the direction of an authorised person" there shall be substituted "the authorised person, or a person acting under his direction". (3) In sub-paragraph (6) of that paragraph, for "when the immobilisation device was fixed" there shall be substituted "when the vehicle was removed". (4) This section shall come into force on such day as the Secretary of State may by order made by statutory instrument appoint. Part II Insurance Premium TaxNew rates of tax21 Rate of tax(1) For section 51 of the [1994 c. 9.] Finance Act 1994 (rate of tax) there shall be substituted-- " 51 Rate of tax(1) Tax shall be charged-- (a) at the higher rate, in the case of a premium which is liable to tax at that rate; and (b) at the standard rate, in any other case. (2) For the purposes of this Part-- (a) the higher rate is 17.5 per cent.; and (b) the standard rate is 4 per cent. " (2) In section 73(1) of the Finance Act 1994 (general interpretation) there shall be inserted at the appropriate places-- " (a) "the higher rate" shall be construed in accordance with section 51 above; " " (b) "the standard rate" shall be construed in accordance with section 51 above; " . 22 Premiums liable to tax at the higher rate(1) After section 51 of the [1994 c. 9.] Finance Act 1994 (rate of tax) there shall be inserted-- " 51A Premiums liable to tax at the higher rate(1) A premium received under a taxable insurance contract by an insurer is liable to tax at the higher rate if it falls within one or more of the paragraphs of Part II of Schedule 6A to this Act. (2) Part I of Schedule 6A to this Act shall have effect with respect to the interpretation of that Schedule. (3) Provision may be made by order amending Schedule 6A as it has effect for the time being. (4) This section is subject to section 69 below. " (2) In section 74 of the [1994 c. 9.] Finance Act 1994 (regulations and orders)-- (a) in subsection (4) (order under section 71 to be subject to affirmative procedure) after "An order under section" there shall be inserted "51A or"; and (b) in subsection (6) (regulations or orders, other than an order under section 71, to be subject to negative procedure) after "(other than an order under section" there shall be inserted "51A or". (3) After Schedule 6 to the Finance Act 1994 there shall be inserted the Schedule set out in Schedule 4 to this Act. 23 Charge to tax where different rates apply(1) For section 69 of the Finance Act 1994 (reduced chargeable amount) there shall be substituted-- " 69 Charge to tax where different rates of tax apply(1) This section applies for the purpose of determining the chargeable amount in a case where a contract provides cover falling within any one of the following paragraphs, that is to say-- (a) cover for one or more exempt matters, (b) cover for one or more standard rate matters, or (c) cover for one or more higher rate matters, and also provides cover falling within another of those paragraphs. (2) In the following provisions of this section "the non-exempt premium" means the difference between-- (a) the amount of the premium; and (b) such part of the premium as is attributable to any exempt matter or matters or, if no part is so attributable, nil. (3) If the contract provides cover for one or more exempt matters and also provides cover for either-- (a) one or more standard rate matters, or (b) one or more higher rate matters, the chargeable amount is such amount as, with the addition of the tax chargeable at the standard rate or (as the case may be) the higher rate, is equal to the non-exempt premium. (4) If the contract provides cover for both-- (a) one or more standard rate matters, and (b) one or more higher rate matters, the higher rate element and the standard rate element shall be found in accordance with the following provisions of this section. (5) For the purposes of this section-- (a) "the higher rate element" is such portion of the non-exempt premium as is attributable to the higher rate matters (including tax at the higher rate); and (b) "the standard rate element" is the difference between-- (i) the non-exempt premium; and (ii) the higher rate element. (6) In a case falling within subsection (4) above, tax shall be charged separately-- (a) at the standard rate, by reference to the standard rate chargeable amount, and (b) at the higher rate, by reference to the higher rate chargeable amount, and the tax chargeable in respect of the premium is the aggregate of those amounts of tax. (7) For the purposes of this section--
(8) References in this Part to the chargeable amount shall, in a case falling within subsection (4) above, be taken as referring separately to the standard rate chargeable amount and the higher rate chargeable amount. (9) In applying subsection (2)(b) above, any amount that is included in the premium as being referable to tax (whether or not the amount corresponds to the actual amount of tax payable in respect of the premium) shall be taken to be wholly attributable to the non-exempt matter or matters. (10) In applying subsection (5)(a) above, any amount that is included in the premium as being referable to tax at the higher rate (whether or not the amount corresponds to the actual amount of tax payable at that rate in respect of the premium) shall be taken to be wholly attributable to the higher rate element. (11) Subject to subsections (9) and (10) above, any attribution under subsection (2)(b) or (5)(a) above shall be made on such basis as is just and reasonable. (12) For the purposes of this section-- (a) an "exempt matter" is any matter such that, if it were the only matter for which the contract provided cover, the contract would not be a taxable insurance contract; (b) a "non-exempt matter" is a matter which is not an exempt matter; (c) a "standard rate matter" is any matter such that, if it were the only matter for which the contract provided cover, tax at the standard rate would be chargeable on the chargeable amount; (d) a "higher rate matter" is any matter such that, if it were the only matter for which the contract provided cover, tax at the higher rate would be chargeable on the chargeable amount. (13) If the contract relates to a lifeboat and lifeboat equipment, the lifeboat and the equipment shall be taken together in applying this section. (14) For the purposes of this section "lifeboat" and "lifeboat equipment" have the same meaning as in paragraph 6 of Schedule 7A to this Act. " (2) Accordingly, in section 50 of the [1994 c. 9.] Finance Act 1994 (chargeable amount) in subsection (3) (which provides that subsection (2) has effect subject to section 69) for "Subsection (2)" there shall be substituted "Subsections (1) and (2)". 24 Commencement of sections 21 to 23(1) Except as provided by subsection (2) below, sections 21 to 23 above have effect in relation to a premium which falls to be regarded for the purposes of Part III of the Finance Act 1994 as received under a taxable insurance contract by an insurer on or after 1st April 1997. (2) Sections 21 to 23 above do not have effect in relation to a premium if the premium-- (a) is in respect of a contract made before 1st April 1997; and (b) falls, by virtue of regulations under section 68 of the Finance Act 1994 (special accounting scheme), to be regarded for the purposes of Part III of that Act as received under the contract by the insurer on a date before 1st August 1997. (3) Subsection (2) above does not apply in relation to a premium if the premium-- (a) is an additional premium under the contract; (b) falls as mentioned in subsection (2)(b) above to be regarded as received under the contract by the insurer on or after 1st April 1997; and (c) is in respect of a risk which was not covered by the contract before 1st April 1997. (4) Without prejudice to the generality of subsections (1) to (3) above, those subsections shall be construed in accordance with sections 67A to 67C of the [1994 c. 9.] Finance Act 1994 (which are inserted by section 29 below). Taxable intermediaries and their fees25 Certain fees to be treated as premiums under higher rate contracts(1) After section 52 of the Finance Act 1994 there shall be inserted-- " 52A Certain fees to be treated as premiums under higher rate contracts(1) This section applies where-- (a) at or about the time when a higher rate contract is effected, and (b) in connection with that contract, a fee in respect of an insurance-related service is charged by a taxable intermediary to a person who is or becomes the insured (or one of the insured) under the contract or to a person who acts for or on behalf of such a person. (2) Where this section applies-- (a) a payment in respect of the fee shall be treated for the purposes of this Part as a premium received under a taxable insurance contract by an insurer, and (b) that premium-- (i) shall be treated for the purposes of this Part as so received at the time when the payment is made, and (ii) shall be chargeable to tax at the higher rate. (3) Tax charged by virtue of subsection (2) above shall be payable by the taxable intermediary as if he were the insurer under the contract mentioned in paragraph (a) of that subsection. (4) For the purposes of this section, a contract of insurance is a "higher rate contract" if-- (a) it is a taxable insurance contract; and (b) the whole or any part of a premium received under the contract by the insurer is (apart from this section) liable to tax at the higher rate. (5) For the purposes of this Part a "taxable intermediary" is a person falling within subsection (6) below who-- (a) at or about the time when a higher rate contract is effected, and (b) in connection with that contract, charges a fee in respect of an insurance-related service to a person who is or becomes the insured (or one of the insured) under the contract or to a person who acts for or on behalf of such a person. (6) A person falls within this subsection if-- (a) he is a supplier of goods or services falling within subsection (7) below; or (b) he is connected with a supplier of goods or services falling within that subsection; or (c) he is a person who pays-- (i) the whole or any part of the premium received under that contract, or (ii) a fee connected with the arranging of that contract, to a supplier of goods or services falling within subsection (7) below or to a person who is connected with a supplier of goods or services falling within that subsection. (7) A person is a supplier of goods or services falling within this subsection if-- (a) he is a supplier of motor cars or motor cycles, within the meaning of paragraph 2 of Schedule 6A to this Act; (b) he is a supplier of relevant goods, within the meaning of paragraph 3 of that Schedule; or (c) he is a tour operator or travel agent. (8) For the purposes of this section, any question whether a person is connected with another shall be determined in accordance with section 839 of the Taxes Act 1988. (9) In this section--
(2) The amendment made by subsection (1) above has effect in relation to payments in respect of fees charged on or after the day on which this Act is passed. 26 Registration of taxable intermediariesAfter section 53 of the [1994 c. 9.] Finance Act 1994 (registration of insurers) there shall be inserted-- " 53AA Registration of taxable intermediaries(1) A person who-- (a) is a taxable intermediary, and (b) is not registered, is liable to be registered. (2) The register kept under this section may contain such information as the Commissioners think is required for the purposes of the care and management of the tax. (3) A person who-- (a) at any time forms the intention of charging taxable intermediary's fees, and (b) is not already charging such fees in the course of another business, shall notify the Commissioners of those facts. (4) A person who at any time-- (a) ceases to have the intention of charging taxable intermediary's fees in the course of his business, and (b) has no intention of charging such fees in the course of another business of his, shall notify the Commissioners of those facts. (5) Where a person is liable to be registered by virtue of subsection (1) above, the Commissioners shall register him with effect from the time when he begins to charge taxable intermediary's fees in the course of the business concerned; and it is immaterial whether or not he notifies the Commissioners under subsection (3) above. (6) Where a person-- (a) notifies the Commissioners under subsection (4) above, and (b) satisfies them of the facts there mentioned, the Commissioners shall cancel his registration with effect from the earliest practicable time after he ceases to charge taxable intermediary's fees in the course of any business of his. (7) In a case where-- (a) the Commissioners are satisfied that a person has ceased to charge taxable intermediary's fees in the course of any business of his, but (b) he has not notified them under subsection (4) above, they may cancel his registration with effect from the earliest practicable time after he so ceased. (8) For the purposes of this section regulations may make provision-- (a) as to the time within which a notification is to be made; (b) as to the form and manner in which any notification is to be made and as to the information to be contained in or provided with it; (c) requiring a person who has made a notification to notify the Commissioners if any information contained in or provided in connection with it is or becomes inaccurate; (d) as to the correction of entries in the register. (9) In this Part "taxable intermediary's fees" means fees which, to the extent of any payment in respect of them, are chargeable to tax by virtue of section 52A above. " 27 Supplementary provisions(1) The [1994 c. 9.] Finance Act 1994 shall be amended in accordance with the following provisions of this section. (2) In section 53A (information required to keep register up to date) in subsection (1)(b), after the words "register kept under section 53" there shall be inserted "or 53AA". 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 -- Back --
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