Alcoholic Liquor Duties Act 1979 (repealed)

• (5) A sale is an “authorised retail sale” if it is made by retail under and in accordance with a licence or other authorisation under an enactment regulating the sale and supply of alcohol.

• (6) A sale is a “group sale” if the seller and the buyer are both bodies corporate which are members of the same group (see section 88J).

• (7) A sale is an “excluded sale” if it is of a description prescribed by or under regulations made by the Commissioners.

• (8) “Controlled activity” means—

• (a) selling controlled liquor wholesale,

• (b) offering or exposing controlled liquor for sale in circumstances in which the sale (if made) would be a wholesale sale, or

• (c) arranging in the course of a trade or business for controlled liquor to be sold wholesale, or offered or exposed for sale in circumstances in which the sale (if made) would be a wholesale sale.

• (9) “UK person” means a person who is UK-established for the purposes of value added tax (see paragraph 1(10) of Schedule 1 to the Value Added Tax Act 1994).

• (10) “Enactment” includes an enactment contained in—

• (a) an Act of the Scottish Parliament;

• (b) an Act or Measure of the National Assembly for Wales;

• (c) Northern Ireland legislation.

88B

• (1) The Commissioners may by regulations make provision as to the cases in which sales are, or are not, to be treated for the purposes of this Part as—

• (a) wholesale sales,

• (b) sales of controlled liquor,

• (c) incidental sales,

• (d) authorised retail sales, or

• (e) group sales.

• (2) The Commissioners may by regulations make provision as to the cases in which a person is, or is not, to be treated for the purposes of this Part as carrying on a controlled activity by virtue of section 88A(8)(b) or (c) (offering and exposing for sale and arranging for sale etc).

88C

• (1) A UK person may not carry on a controlled activity otherwise than in accordance with an approval given by the Commissioners under this section.

• (2) The Commissioners may approve a person under this section to carry on a controlled activity only if they are satisfied that the person is a fit and proper person to carry on the activity.

• (3) The Commissioners may approve a person under this section to carry on a controlled activity for such periods and subject to such conditions or restrictions as they may think fit or as they may by or under regulations made by them prescribe.

• (4) The conditions or restrictions may include conditions or restrictions requiring the controlled activity to be carried on only at or from premises specified or approved by the Commissioners.

• (5) The Commissioners may at any time for reasonable cause revoke or vary the terms of an approval under this section.

• (6) In this Part “approved person” means a person approved under this section to carry on a controlled activity.

88D

• (1) The Commissioners must maintain a register of approved persons.

• (2) The register is to contain such information relating to approved persons as the Commissioners consider appropriate.

• (3) The Commissioners may make publicly available such information contained in the register as they consider necessary to enable those who deal with a person who carries on a controlled activity to determine whether the person in question is an approved person in relation to that activity.

• (4) The information may be made available by such means (including on the internet) as the Commissioners consider appropriate.

88E

• (1) The Commissioners may by regulations make provision—

• (a) regulating the approval and registration of persons under this Part,

• (b) regulating the variation or revocation of any such approval or registration or of any condition or restriction to which such an approval or registration is subject,

• (c) about the register maintained under section 88D,

• (d) regulating the carrying on of controlled activities, and

• (e) imposing obligations on approved persons.

• (2) The regulations may, in particular, make provision—

• (a) requiring applications, and other communications with the Commissioners, to be made electronically,

• (b) as to the procedure for the approval and registration of bodies corporate which are members of the same group and for members of such a group to be jointly and severally liable for any penalties imposed under—

• (i) the regulations, or

• (ii) Schedule 2B,

• (c) requiring approved persons to keep and make available for inspection such records relating to controlled activities as may be prescribed by or under the regulations,

• (d) imposing a penalty of an amount prescribed by the regulations (which must not exceed £1,000) for a contravention of—

• (i) the regulations, or

• (ii) any condition or restriction imposed under this Part,

• (e) for the assessment and recovery of such a penalty, and

• (f) for dutiable alcoholic liquor (whether or not charged with any duty and whether or not that duty has been paid) to be subject to forfeiture for a contravention of—

• (i) this Part or the regulations, or

• (ii) any condition or restriction imposed under this Part.

88F

A person may not buy controlled liquor wholesale from a UK person unless the UK person is an approved person in relation to the sale.

88G

• (1) A person who contravenes section 88C(1) by selling controlled liquor wholesale is guilty of an offence if the person knows or has reasonable grounds to suspect that—

• (a) the buyer is carrying on a trade or business, and

• (b) the liquor is for sale or supply in the course of that trade or business.

• (2) A person who contravenes section 88C(1) by offering or exposing controlled liquor for sale in circumstances in which the sale (if made) would be a wholesale sale is guilty of an offence if the person intends to make a wholesale sale of the liquor.

• (3) A person who contravenes section 88C(1) by arranging in the course of a trade or business for controlled liquor to be sold wholesale, or offered or exposed for sale in circumstances in which the sale (if made) would be a wholesale sale, is guilty of an offence if the person intends to arrange for the liquor to be sold wholesale.

• (4) A person who contravenes section 88F is guilty of an offence if the person knows or has reasonable grounds to suspect that the UK person from whom the controlled liquor is bought is not an approved person in relation to the sale.

• (5) A person guilty of an offence under this section is liable on summary conviction—

• (a) in England and Wales to—

• (i) imprisonment for a term not exceeding the general limit in a magistrates’ court,

• (ii) a fine, or

• (iii) both,

• (b) in Scotland to—

• (i) imprisonment for a term not exceeding 12 months,

• (ii) a fine not exceeding the statutory maximum, or

• (iii) both, and

• (c) in Northern Ireland to—

• (i) imprisonment for a term not exceeding 6 months,

• (ii) a fine not exceeding the statutory maximum, or

• (iii) both.

• (6) A person guilty of an offence under this section is liable on conviction on indictment to—

• (a) imprisonment for a period not exceeding 7 years,

• (b) a fine, or

• (c) both.

• (7) The reference in subsection (5)(a)(i) to the general limit in a magistrates’ court is to be read as a reference to 6 months in relation to an offence committed before 2 May 2022.

88H

Schedule 2B contains provision about penalties for contraventions of this Part.

88I

Regulations under this Part—

• (a) may make provision which applies generally or only for specified cases or purposes,

• (b) may make different provision for different cases or purposes,

• (c) may include incidental, consequential, transitional or transitory provision, and

• (d) may confer a discretion on the Commissioners.

88J

• (1) Two or more bodies corporate are members of a group for the purposes of this Part if each is established or has a fixed establishment in the United Kingdom and—

• (a) one of them controls each of the others,

• (b) one person (whether a body corporate or an individual) controls all of them, or

• (c) two or more individuals carrying on a business in partnership control all of them.

• (2) For the purposes of this section, a body corporate is to be taken to control another body corporate if—

• (a) it is empowered by or under an enactment to control that body's activities, or

• (b) it is that body's holding company within the meaning of section 1159 of, and Schedule 6 to, the Companies Act 2006.

• (3) For the purposes of this section—

• (a) an individual or individuals are to be taken to control a body corporate if the individual or individuals (were the individual or individuals a company) would be that body's holding company within the meaning of section 1159 of, and Schedule 6 to, the Companies Act 2006, and

• (b) a body corporate is established or has a fixed establishment in the United Kingdom if it is so established or has such an establishment for the purposes of value added tax.

88K

This Table lists the places where some of the expressions used in this Part are defined or otherwise explained.

Regulations.

SCHEDULE 2B

Liability to penalty

1

A penalty is payable by a person (“P”) who contravenes section 88C(1) or 88F.

Amount of penalty

2

• (1) If the contravention is deliberate and concealed, the amount of the penalty is the maximum amount (see paragraph 10).

• (2) If the contravention is deliberate but not concealed, the amount of the penalty is 70% of the maximum amount.

• (3) In any other case, the amount of the penalty is 30% of the maximum amount.

• (4) The contravention is—

• (a) “deliberate and concealed” if the contravention is deliberate and P makes arrangements to conceal the contravention, and

• (b) “deliberate but not concealed” if the contravention is deliberate but P does not make arrangements to conceal the contravention.

Reductions for disclosure

3

• (1) Paragraph 4 provides for reductions in penalties under this Schedule where P discloses a contravention.

• (2) P discloses a contravention by—

• (a) telling the Commissioners about it,

• (b) giving the Commissioners reasonable help in identifying any other contraventions of section 88C(1) or 88F of which P is aware, and

• (c) allowing the Commissioners access to records for the purpose of identifying such contraventions.

• (3) Disclosure of a contravention—

• (a) is “unprompted” if made at a time when P has no reason to believe that the Commissioners have discovered or are about to discover the contravention, and

• (b) otherwise, is “prompted”.

• (4) In relation to disclosure “quality” includes timing, nature and extent.

4

• (1) Where P discloses a contravention, the Commissioners must reduce the penalty to one that reflects the quality of the disclosure.

• (2) If the disclosure is prompted, the penalty may not be reduced below—

• (a) in the case of a contravention that is deliberate and concealed, 50% of the maximum amount,

• (b) in the case of a contravention that is deliberate but not concealed, 35% of the maximum amount, and

• (c) in any other case, 20% of the maximum amount.

• (3) If the disclosure is unprompted, the penalty may not be reduced below—

• (a) in the case of a contravention that is deliberate and concealed, 30% of the maximum amount,

• (b) in the case of a contravention that is deliberate but not concealed, 20% of the maximum amount, and

• (c) in any other case, 10% of the maximum amount.

Special reduction

5

• (1) If the Commissioners think it right because of special circumstances, they may reduce a penalty under this Schedule.

• (2) In sub-paragraph (1) “special circumstances” does not include ability to pay.

• (3) In sub-paragraph (1) the reference to reducing a penalty includes a reference to—

• (a) staying a penalty, and

• (b) agreeing a compromise in relation to proceedings for a penalty.

Assessment

6

• (1) Where P becomes liable for a penalty under this Schedule, the Commissioners must—

• (a) assess the penalty,

• (b) notify P, and

• (c) state in the notice the contravention in respect of which the penalty is assessed.

• (2) A penalty under this Schedule must be paid before the end of the period of 30 days beginning with the day on which notification of the penalty is issued.

• (3) An assessment is to be treated as an amount of duty due from P under this Act and may be recovered accordingly.

• (4) An assessment of a penalty under this Schedule may not be made later than one year after evidence of facts sufficient in the opinion of the Commissioners to indicate the contravention comes to their knowledge.

• (5) Two or more contraventions may be treated by the Commissioners as a single contravention for the purposes of assessing a penalty under this Schedule.

Reasonable excuse

7

• (1) Liability to a penalty does not arise under this Schedule in respect of a contravention which is not deliberate if P satisfies the Commissioners or (on an appeal made to the appeal tribunal) the tribunal that there is a reasonable excuse for the contravention.

• (2) For the purposes of sub-paragraph (1), where P relies on any other person to do anything, that is not a reasonable excuse unless P took reasonable care to avoid the contravention.

Companies: officer's liability

8

• (1) Where a penalty under this Schedule is payable by a company in respect of a contravention which was attributable to an officer of the company, the officer is liable to pay such portion of the penalty (which may be 100%) as the Commissioners may specify by written notice to the officer.

• (2) Sub-paragraph (1) does not allow the Commissioners to recover more than 100% of a penalty.

• (3) In the application of sub-paragraph (1) to a body corporate other than a limited liability partnership, “officer” means—

• (a) a director (including a shadow director within the meaning of section 251 of the Companies Act 2006),

• (b) a manager, and

• (c) a secretary.

• (4) In the application of sub-paragraph (1) to a limited liability partnership, “officer” means a member.

• (5) In the application of sub-paragraph (1) in any other case, “officer” means—

• (a) a director,

• (b) a manager,

• (c) a secretary, and

• (d) any other person managing or purporting to manage any of the company's affairs.

• (6) Where the Commissioners have specified a portion of a penalty in a notice given to an officer under sub-paragraph (1)—

• (a) paragraph 5 applies to the specified portion as to a penalty,

• (b) the officer must pay the specified portion before the end of the period of 30 days beginning with the day on which the notice is given,

• (c) sub-paragraphs (3) to (5) of paragraph 6 apply as if the notice were an assessment of a penalty, and

• (d) paragraph 9 applies as if the officer were liable to a penalty.

• (7) In this paragraph “company” means any body corporate or unincorporated association, but does not include a partnership.

Double jeopardy

9

P is not liable to a penalty under this Schedule in respect of a contravention in respect of which P has been convicted of an offence.

The maximum amount

10

• (1) In this Schedule “the maximum amount” means £10,000.

• (2) If it appears to the Treasury that there has been a change in the value of money since the last relevant date, they may by regulations substitute for the sum for the time being specified in sub-paragraph (1) such other sum as appears to them to be justified by the change.

• (3) In sub-paragraph (2), “relevant date” means—

• (a) the date on which the Finance Act 2015 is passed, and

• (b) each date on which the power conferred by that sub-paragraph has been exercised.

• (4) Regulations under this paragraph do not apply to any contravention which occurred before the date on which they come into force.

Appeal tribunal

11

In this Schedule “appeal tribunal” has the same meaning as in Chapter 2 of Part 1 of the Finance Act 1994.

55ZA

• (1) This section applies if—

• (a) wine or made-wine is imported into the United Kingdom or produced in the United Kingdom for sale,

• (b) excise duty is chargeable on the wine or made-wine as a result of section 54 or 55,

• (c) after the excise duty point in relation to that charge, a person mixes or otherwise adds, at any place in the United Kingdom, water or any other substance to the wine or made-wine in a case where what results (“the new product”) is intended for sale, and

• (d) if the addition had taken place immediately before that duty point, the amount of the excise duty would have been greater than the amount actually payable.

• (2) The addition attracts a penalty under section 9 of the Finance Act 1994 (civil penalties), and the new product is liable to forfeiture.

• (3) This section has effect, despite section 8 of the Isle of Man Act 1979, as if a removal of wine or made-wine to the United Kingdom from the Isle of Man constituted its importation into the United Kingdom (and references to the charge to excise duty as a result of section 54 or 55 and to the excise duty point are to be read accordingly).