Isle of Man Act 1979

Common duties

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• (1) Subject to subsection (2) below, in this Act “common duties” means—

• (a) customs duties chargeable on goods imported into the United Kingdom or the Isle of Man;

• (b) excise duties chargeable on goods . . .imported into or produced in the United Kingdom or the Isle of Man;

• (c) pool betting duty chargeable under the law of the United Kingdom or the Isle of Man;

• (ca) lottery duty chargeable under the law of the United Kingdom or the Isle of Man;

• (d) value added tax chargeable under the law of the United Kingdom or the Isle of Man except tax chargeable in accordance with 23 of the Value Added Tax Act 1994 (gaming machines);

• (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (f) soft drinks industry levy chargeable under the law of the United Kingdom or the Isle of Man.

• (g) plastic packaging tax chargeable under the law of the United Kingdom or the Isle of Man.

• (2) The Treasury may by order amend subsection (1) above by adding or deleting any duty or tax which is under the care and management of the Commissioners of Customs and Excise (in this Act referred to as “the Commissioners”) or any corresponding duty or tax chargeable under the law of the Isle of Man; and any such order may apply to a duty or tax generally or in such cases or subject to such restrictions as may be specified in the order.

• (3) The power to make orders under subsection (2) above shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.

Isle of Man share of common duties

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• (1) Of the moneys standing to the credit of the General Account of the Commissioners an amount ascertained for each financial year in accordance with subsection (2) below shall be paid by the Commissioners, at such times and in such manner as they may determine, to the Treasurer of the Isle of Man.

• (2) There shall be calculated in such manner as the Treasury may direct—

• (a) the amount of common duties, whether collected in the United Kingdom or the Isle of Man, which is attributable to goods consumed or used in the Island, to services supplied in the Island or (as respects pool betting duty) to bets placed by persons in the Island;

• (b) the cost incurred by the Commissioners in collecting the amount so attributable together with the amount of any drawback or repayment referable to that amount;

and the amount arrived at by deducting from the amount calculated under paragraph (a) above the amount calculated under paragraph (b) above shall be known as the net Isle of Man share of common duties; and the amount mentioned in subsection (1) above shall be the excess of the net Isle of Man share of common duties over the common duties collected in the Island.

• (3) For the purposes of this section the amount of common duties collected in the Isle of Man and the United Kingdom, or in the Isle of Man, shall be calculated by reference to the amount so collected in respect of such duties after giving effect to any addition or deduction provided for under section 1 of the Excise Duties (Surcharges or Rebates) Act 1979 or any Isle of Man equivalent.

• (4) The Commissioners shall for each financial year prepare, in such form and manner as the Treasury may direct, an account showing the payments made by them under this section and shall send it, not later than the end of November in the following financial year, to the Comptroller and Auditor General, who shall examine and certify the account.

• (5) The Comptroller and Auditor General shall send every account examined and certified by him under this section and his report thereon to the Treasury and a copy of every such account and report to the Treasurer of the Isle of Man; and the Treasury shall lay copies of the account and report before Parliament.

Recovery of common duties chargeable in Isle of Man

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• (1) Any liability to pay an amount on account of a common duty chargeable under the law of the Isle of Man shall, to the extent to which it has not been discharged or enforced there, be enforceable in the United Kingdom as if it were a liability to pay an amount on account of the corresponding common duty chargeable under the law of the United Kingdom.

• (2) Any amount recoverable by the Commissioners from any person under subsection (1) above may be set off against any amount recoverable by him from the Commissioners on account of a common duty chargeable under the law of the United Kingdom.

Enforcement of Isle of Man judgments for common duties

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• (1) Subject to subsection (2) below, the provisions of sections 2 to 5 of the Foreign Judgments (Reciprocal Enforcement) Act 1933 shall have effect in relation to any judgment or order given or made by the High Court of Justice of the Isle of Man under which an amount is payable on account of—

• (a) a common duty chargeable under the law of the Island; or

• (b) a fine or penalty imposed in connection with such a duty,

as if the judgment or order were a judgment to which Part I of that Act applied.

• (2) Subsection (1) above does not apply to a judgment or order given or made on appeal from a lower court but, except when given or made in criminal proceedings, applies notwithstanding that it is subject to appeal or that an appeal against it is pending.

• (3) In their application by virtue of subsection (1) above the provisions there mentioned shall have effect—

• (a) with the omission of so much of section 2(1) as imposes a time-limit for applications for registration;

• (b) with the omission of section 4(1)(a)(v) and (vi); and

• (c) as if the Commissioners were the judgment creditor and any criminal proceedings in which the judgment or order was given or made were an action.

• (4) The reference in subsection (1) above to sections 2 to 5 of the said Act of 1933 includes a reference to so much of sections 11 to 13 of that Act as is relevant to those sections and the definition of “appeal” in section 11 shall apply for the purposes of subsection (2) above.

• (5) The reference in subsection (1) above to the High Court of Justice of the Isle of Man includes a reference to the Court of General Gaol Delivery.

Offences relating to common duties etc.

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• (1) Any summons or other process requiring a person in the Isle of Man to appear before a court ...—

• (a) to answer a charge that he has committed an offence relating to a common duty chargeable under the law of the United Kingdom or to the importation or exportation of anything into or from the United Kingdom; or

• (b) to give evidence or to produce any document or thing in proceedings for any such offence,

may , if the court is in England and Wales, be served in accordance with Criminal Procedure Rules or, if the court is in Scotland or Northern Ireland, be served by being sent to him by registered post or the recorded delivery service.

• (2) In relation to proceedings for any such offence as is mentioned in subsection (1) above—

• (a) section 77 of the Magistrates’ Courts Act 1952 (summons to witness and warrant for his arrest) shall have effect as if the reference in subsection (1) of that section to a person in England and Wales included a reference to a person in the Isle of Man;

• (b) in Scotland a warrant for the citation of accused persons and witnesses shall include a warrant to cite accused persons and witnesses in the Isle of Man.

• (3) In relation to proceedings for any such offence as is mentioned in subsection (1) above—

• (a) sections 2 and 9 of the Criminal Justice Act 1967 (admission of written statements) shall apply also to written statements made in the Isle of Man but with the omission of subsections (2)(b) and (3A) of section 2 and subsections (2)(b) and (3A) of section 9;

• (b) section 1 of the Criminal Justice (Miscellaneous Provisions) Act (Northern Ireland) 1968 and section 3 of the Criminal Procedure (Committal for Trial) Act (Northern Ireland) 1968 (which contain corresponding provisions) shall apply also to written statements made in the Isle of Man but with the omission of subsection (2)(b) of section 1 and subsection (2)(c) of section 3.

• (4) Subject to subsection (5) below, a warrant issued in the Isle of Man for the arrest of—

• (a) a person charged with an offence relating to a common duty chargeable under the law of the Isle of Man or to the importation or exportation of anything into or from the Island; or

• (b) a person required to give evidence or to produce any document or thing in proceedings for any such offence,

may be executed in England and Wales by any constable acting within his police area, in Scotland by any officer of law as defined in section 307(1) of the Criminal Procedure (Scotland) Act 1995 and in Northern Ireland by any member of the Royal Ulster Constabulary or the Royal Ulster Constabulary Reserve.

• (5) A warrant, other than one for the arrest of a person charged with an offence punishable with at least two years’ imprisonment, shall not be executed under subsection (4) above unless it has been endorsed for execution under that subsection by a justice of the peace in England, Wales, Scotland or Northern Ireland, as the case may be; and any warrant which purports to have been issued as mentioned in that subsection may be so endorsed without further proof.

• (6) A warrant for the arrest of a person charged with an offence may be executed by a constable under subsection (4) above notwithstanding that it is not in his possession at the time; but the warrant shall, on demand of that person, be shown to him as soon as practicable.

• (7) Subsections (1) and (4) above are without prejudice to any other enactment enabling any process to be served or executed otherwise than as provided in those subsections.

• (8) References in this section to a warrant for the arrest of any person include references to any process for that purpose available under the law of the Isle of Man; and references to an offence relating to a common duty or to importation or exportation include references to any offence which relates to any of those matters whether or not it is an offence under a provision dealing specifically with that matter.

Value added tax

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• (1) For the purpose of giving effect to any Agreement between the government of the United Kingdom and the government of the Isle of Man whereby both countries are to be treated as a single area for the purposes of value added tax charged under the Value Added Tax Act 1994 and value added tax charged under the corresponding Act of Tynwald, Her Majesty may by Order in Council make provision for securing that tax is charged under the Act of 1994 as if all or any of the references in it to the United Kingdom included both the United Kingdom and the Isle of Man but so that tax is not charged under both Acts in respect of the same transaction.

• (2) An Order in Council under this section may make provision—

• (a) for determining, or enabling the Commissioners to determine, under which Act a person is to be registered and for transferring a person registered under one Act to the register kept under the other;

• (b) for treating a person who is a taxable person for the purposes of the Act of Tynwald as a taxable person for all or any of the purposes of the Act of 1994;

• (c) for extending any reference in the Act of 1994 to tax under that Act so as to include tax under the Act of Tynwald;

• (d) for treating any requirement imposed by or under either Act as a requirement imposed by or under the other;

• (e) for treating any permission, direction, notice, determination or other thing given, made or done under the Act of Tynwald by the Isle of Man authority corresponding to the Commissioners as given, made or done by the Commissioners under the Act of 1994;

• (f) for enabling the Commissioners to determine for the purposes of section 43 of the Act of 1994 (groups of companies) which member of a group is to be the representative member in cases where supplies are made both in the United Kingdom and the Isle of Man;

• (g) for modifying or excluding, as respects goods removed from the Isle of Man to the United Kingdom or from the United Kingdom to the Isle of Man, any provision relating to importation or exportation contained in the Act of 1994 or in the customs and excise Acts as applied by that Act;

• (h) for any supplementary, incidental or transitional matter.

• (3) An Order in Council under this section may make such modifications of any provision contained in or having effect under any Act of Parliament relating to value added tax as appears to Her Majesty to be necessary or expedient for the purposes of the Order.

• (4) While an Order in Council under this section is in force and without prejudice to the powers conferred by the foregoing provisions—

• (a) section 30(10) of The Act of 1994 (forfeiture of zero-rated goods) shall have effect as if the reference to goods zero-rated under the regulations there mentioned included a reference to goods zero-rated under any corresponding regulations made under the Act of Tynwald;

• (b) paragraph 10(3) of Schedule 11to of The Act of 1994 (search of premises where offence is suspected) shall have effect as if the references to an offence in connection with the tax included references to an offence in connection with the tax charged under the Act of Tynwald;

• (c) section 72(8) of The Act of 1994 (course of conduct involving offences) shall have effect as if the reference to offences under the provisions there mentioned included a reference to offences under the corresponding provisions of the Act of Tynwald.

• (5) Provision may be made by or under an Act of Tynwald for purposes corresponding to those of this section and of any Order in Council made under it.

Car tax

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Removal of goods from Isle of Man to United Kingdom

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• (1) Except as provided in subsection (2) below, goods removed to the United Kingdom from the Isle of Man shall be deemed for the purposes of the customs and excise Acts not to be imported into the United Kingdom.

• (2) Subsection (1) above does not apply to—

• (za) goods removed to Northern Ireland from the Isle of Man;

• (a) goods imported into or produced in the Isle of Man which are of a class or description chargeable with customs or excise duty under the law of the United Kingdom and which have not borne a corresponding duty under the law of the Isle of Man;

• (b) goods which were imported into the Isle of Man in contravention of any prohibition or restriction and which are of a class or description the importation of which into the United Kingdom is for the time being subject to a corresponding prohibition or restriction; ...or

• (c) any explosives the importation of which into the United Kingdom is prohibited by regulation 29 of the Explosives Regulations 2014.

• (3) The goods referred to in subsection (2)(a) above do not include goods which have been wholly or partly relieved from duty under, or which are not subject to duty by virtue of, any Isle of Man equivalent to—

• (a) provision made under section 19 of the Taxation (Cross-border Trade) Act 2018 relating to any relief conferred on persons entering the United Kingdom or under section 13 of the Customs and Excise Duties (General Reliefs) Act 1979, or

• (b) the temporary admission procedure under Part 1 of the Taxation (Cross-border Trade) Act 2018.

• (3A) Where there are conditions which apply in connection with the goods being relieved from duty or not being subject to duty, the customs and excise Acts shall apply to the goods as if they were imported into the United Kingdom when they were imported into the Isle of Man and as if corresponding conditions apply to the goods under, or by virtue of, those Acts.

• (4) For the purposes of subsection (2)(a) above goods of any class or description shall be treated as having borne a corresponding duty under the law of the Isle of Man if they have borne duty under that law at a rate not less than that at which duty was then chargeable under the law of the United Kingdom in respect of goods of that class or description; and where goods have borne duty under the law of the Isle of Man at a lower rate, the duty charged on their importation into the United Kingdom shall be reduced by an amount equal to the duty borne under that law.

Removal of goods from United Kingdom to Isle of Man

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• (1) Except as provided in ... section 21(2) of the Forgery and Couterfeiting Act 1981, goods removed to the Isle of Man from the United Kingdom shall be deemed for the purposes of the customs and excise Acts not to be exported from the United Kingdom.

• (1A) Subsection (1) does not apply to goods removed from Northern Ireland to the Isle of Man.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) Where goods imported into or produced in the United Kingdom have not borne customs or excise duty and would be chargeable with customs or excise duty if imported into the Isle of Man, the goods shall not be removed from the United Kingdom to the Isle of Man until—

• (a) they have been cleared for that purpose by the proper officer; and

• (b) security has been given to the satisfaction of the Commissioners for the due delivery of the goods at some port, airport or place of security in the Isle of Man approved for customs and excise purposes under the law of the Island;

but paragraph (b) above shall not apply if the goods are reported on arrival in the United Kingdom for removal to the Isle of Man in the same ship or aircraft and in continuance of the same voyage or flight.

• (5) The goods referred to in subsection (4) above do not include passengers’ baggage or goods that have been relieved or exempted from duty under any of the provisions of sections 7 to 11 or 13 of the Customs and Excise Duties (General Reliefs) Act 1979 or section 19 of the Taxation (Cross-border Trade) Act 2018.

• (6) Any goods removed from the United Kingdom contrary to subsection (4) above shall be liable to forfeiture and any person concerned in the removal of the goods shall be liable on summary conviction to a penalty of level 3 on the standard scale.

Exchange of information

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