Finance Act 1980

Part I — Excise Duties

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1

Tobacco products

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• (1) For the Table in Schedule 1 to the Tobacco Products Duty Act 1979 there shall be substituted—

1. Cigarettes	An amount equal to 21 per cent, of the retail price plus £13.42 per thousand cigarettes.
2. Cigars	£25.60 per kilogram.
3. Hand-rolling tobacco	£22.60 per kilogram.
4. Other smoking tobacco and chewing tobacco	£17.40 per kilogram."

• (2) This section shall be deemed to have come into force on 29th March 1980

Hydrocarbon oil etc.

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Vehicles excise duty: Great Britain

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• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Vehicles excise duty: Northern Ireland

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Gaming licence duty

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• (1) Subject to the provisions of this section, the duty charged by section 13 of the Betting and Gaming Duties Act 1972 on a gaming licence in respect of any premises for any period shall consist of—

• (a) £250 payable when applying for the licence; and

• (b) a further amount of duty payable after the end of that period and chargeable at the rates specified in the following Table on the gross gaming yield from the premises in that period.

TABLE

Part of gross gaming yield	Rate
The first £250,000	2½ per cent.
The next £500,000	5 per cent.
The next £1,750,000	10 per cent.
The remainder	20 per cent.

• (2) Subsection (1) above has effect in relation to licences for periods beginning on or after 1st October 1980 but in the case of a licence for a period beginning before 1st October 1981—

• (a) the amount payable when applying for the licence shall, instead of being £250, be determined as provided in section 14 of the said Act of 1972; and

• (b) the further amount referred to in subsection (1)(b) above shall be payable only to the extent, if any, to which it exceeds the amount paid when applying for the licence.

• (3) Subsection (2) above is without prejudice to any liability for additional duty by virtue of the provisions of regulations having effect under paragraph 1 of Schedule 2 to the said Act of 1972 (alteration of rateable value) or of paragraph 5 of that Schedule (amendment of licences); and if—

• (a) any payment of additional duty is made by virtue of those provisions; or

• (b) there is a repayment of duty by virtue of any such regulations or of paragraph 6 of that Schedule (surrender of licences),

the reference in subsection (2)(b) above to the amount paid when applying for the licence shall be construed as a reference to that amount as increased or, as the case may be, reduced by that payment or repayment.

• (4) Schedule 5 to this Act shall have effect for defining “gross gaming yield”, for making new provision as to the duration of gaming licences, for modifying subsections (1) and (2) above in cases where a licence is in force for less than six months and otherwise for supplementing the provisions of this section.

Gaming machine licence duty

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Bingo duty

8

Definition of Scotch whisky and Irish whiskey

9

Regulator powers

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• (1) The Excise Duties (Surcharges or Rebates) Act 1979 shall have effect with the following amendments, being amendments which remove the restrictions on the purposes for which and the period within which orders may be made under that Act and alter the provisions of that Act relating to parliamentary control.

• (2) In section 1(2) for the words preceding paragraph (a) there shall be substituted the words “The Treasury may, by an order applying to one or more of the groups of duties to which this section applies, provide for an adjustment”.

• (3) For section 2(2) there shall be substituted—

(2) An order shall cease to be in force at the expiration of a period of one year from the date on which it takes effect unless continued in force by a further order.

• (4) For section 2(7), (8) and (9) there shall be substituted—

(7) A statutory instrument containing an order which, with respect to all or any of the groups of duties— (a) specifies a percentage by way of addition to duty or increases a percentage so specified; or (b) withdraws or reduces a percentage specified by way of deduction from duty, shall be laid before the House of Commons after being made; and unless the order is approved by that House before the expiration of twenty-eight days beginning with the date on which it was made, it shall cease to have effect on the expiration of that period, but without prejudice to anything previously done under it or to the making of a new order. In reckoning any such period 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. (8) A statutory instrument containing an order to which subsection (7) above does not apply shall be subject to annulment in pursuance of a resolution of the House of Commons.

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Part II — Value Added Tax

Liability to be registered

11–16

Termination of liability to be registered

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• (1) Paragraph 2 of Schedule 1 to the Finance Act 1972 (termination of liability to be registered) shall be amended as follows.

• (2) For sub-paragraph (a) there shall be substituted—

(a) after the end of any quarter or prescribed accounting period if he has been registered for the whole of the two years then ending and the value of his taxable supplies in each of those years has been £13,500 or less; and

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• (3) In sub-paragraph (b) for “£8,500 ” there shall be substituted “£12,500 ”.

• (4) After paragraph (b) there shall be inserted the words " except that a person shall not at any time cease to be liable to be registered by virtue of sub-paragraph (a) above if there are reasonable grounds for believing that the value of his taxable supplies in the period of one year then beginning will exceed £13,500. ".

• (5) This section shall be deemed to have come into force on 1st June 1980.

Deemed supply on de-registration

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• (1) Paragraph 7 of Schedule 2 to the Finance Act 1972 (deemed supply of business assets where person ceases to be taxable) shall be amended as follows.

• (2) For paragraph 7(c) and (d) there shall be substituted—

(c) the tax on the deemed supply would not be more than £250.

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• (3) The existing provisions of paragraph 7 as amended by subsection (2) above shall become sub-paragraph (1) and after those provisions there shall be inserted—

(2) This paragraph does not apply to any goods in the case of which the taxable person can show to the satisfaction of the Commissioners— (a) that no credit for input tax in respect of the supply or importation of the goods has been allowed to him; (b) that the goods were not acquired by him as part of the assets of a business which was transferred to him as a going concern by another taxable person; and (c) that he has not obtained relief in respect of the goods under section 4 of the Finance Act 1973 (tax- or duty-paid stock held at commencement of VAT). (3) The Treasury may by order increase or further increase the sum specified in sub-paragraph (1)(c) above.

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• (4) This section shall be deemed to have come into force on 1st June 1980.

Penalties and assessments

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• (1) After section 38(7) of the Finance Act 1972 (daily penalty of £10 for failure to comply with certain requirements) there shall be inserted—

(7A) Where the failure referred to in subsection (7) of this section consists— (a) in not paying the tax due in respect of any period within the time required by regulations under section 3(1) of this Act; or (b) in not furnishing a return in respect of any period within the time required by regulations under section 30(2) of this Act, that subsection shall have effect as if for £10 there were substituted (if it is greater) an amount equal to \ per cent, of the tax due in respect of that period; and for that purpose the tax due shall, if the person concerned has furnished a return, be taken to be the tax shown in the return as that for which he is accountable for that period and, in any other case, be taken to be such tax as has been assessed and notified to him under section 31(1) of this Act.

• (2) In section 40(1) of the said Act of 1972 (matters in respect of which there is a right of appeal) for paragraph (b) there shall be substituted—

(b) an assessment— (i) under subsection (1) of section 31 of this Act in respect of a period for which the appellant has made a return under this Part of this Act; or (ii) under subsection (3) of that section, or the amount of such an assessment;

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Registration of clubs etc. and transfers of going concerns

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• (1) In section 23 of the Finance Act 1972 (business carried on by unincorporated bodies etc.) after subsection (2) there shall be inserted—

(2A) The registration under this Part of this Act of any such club, association or organisation may be in the name of the club, association or organisation; and in determining whether goods or services are supplied to or by such a club, association or organisation, no account shall be taken of any change in its members.

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• (2) The provisions of section 25 of the said Act of 1972 (transfers of going concerns) shall become subsection (1) and after those provisions there shall be inserted—

(2) Without prejudice to subsection (1) of this section, the Commissioners may by regulations make provision for securing continuity in the application of this Part of this Act in cases where a business carried on by a taxable person is transferred to another person as a going concern and the transferee is registered under this Part of this Act in substitution for the transferor. (3) Regulations under subsection (2) of this section may, in particular, provide— (a) for liabilities and duties under this Part of this Act of the transferor to become, to such extent as may be provided by the regulations, liabilities and duties of the transferee ; and (b) for any right of either of them to a repayment or credit in respect of tax to be satisfied by making a repayment or allowing a credit to the other; but no such provision as is mentioned in paragraph (a) or (b) of this subsection shall have effect in relation to any transferor and transferee unless an application in that behalf has been made by them under the regulations.

• (3) This section shall come into force on 1st September 1980.

Use of computers

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• (1) Subject to subsection (2) below, in any provision contained in or having effect under the enactments relating to value added tax “document ” , “copy ” and “computer ” shall have the same meanings—

• (a) in relation to England and Wales, as by virtue of section 10 of the Civil Evidence Act 1968 they have in Part I of that Act;

• (b) in relation to Scotland, as by virtue of section 17 of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1968 they have in Part III of that Act; and

• (c) in relation to Northern Ireland, as by virtue of section 6 of the Civil Evidence Act (Northern Ireland) 1971 they have in Part I of that Act;

and for the purposes of any such provision relating to tax invoices a person shall be treated as issuing, or as providing another person with, a tax invoice if the requisite particulars are recorded in a computer and transmitted by electronic means and without the delivery of any document.

• (2) No provision relating to tax invoices shall be treated as complied with by the production by means of a computer of any material other than a document in writing, by delivering any such material so produced or by making any such transmission as is mentioned in subsection (1) above unless the person producing or delivering the material or making the transmission and, in the case of delivered material or a transmission, the person receiving it—

• (a) has given the Commisioners at least one month's notice in writing that he proposes to produce or deliver such material or make such transmissions or, as the case may be, receive such material or transmissions ; and

• (b) complies with such requirements as may be specified in regulations or as the Commissioners may from time to time impose in his case.

• (3) In section 40(1) of the Finance Act 1972 (appeals to value added tax tribunals) after paragraph (1) there shall be inserted—

(m) any requirements imposed by the Commissioners in a particular case under section 16(2)(b) of the Finance Act 1980.

• (4) An authorised person—

• (a) shall be entitled at any reasonable time to have access to, and to inspect and check the operation of, any computer and any associated apparatus or material which is or has been in use by a taxable person in connection with the production, delivery or receipt of material which is or purports to be a tax invoice or with the transmission as mentioned in subsection (1) above of particulars which are or purport to be particulars of such an invoice ; and

• (b) may require the taxable person or any other person having charge of any such computer, apparatus or material to afford him such assistance as he may require for the purposes of paragraph (a) above.

• (5) Any person who obstructs an authorised person in the exercise of his powers under paragraph (a) of subsection (4) above or without reasonable excuse fails to comply with a requirement under paragraph (b) of that subsection shall be liable to a penalty of £500.

• (6) This section shall be construed as one with Part I of the said Act of 1972.

Mutual recovery and disclosure of information between member States

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Part III — Income Tax, Corporation Tax and Capital Gains Tax

Chapter I — General

Charge of income tax for 1980-81 and abolition of lower rate

18–56

Charge of corporation tax for financial year 1979

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Corporation tax shall be charged for the financial year 1979. at the rate of 52 per cent.

Rate of advance corporation tax for financial year 1980

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The rate of advance corporation tax for the financial year 1980. shall be three-sevenths.

Corporation tax: small companies

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• (1) The small companies rate for the financial year 1979 shall be 40 per cent., and for that year the fraction mentioned in subsection (2) of section 95 of the Finance Act 1972 (marginal relief for small companies) shall be seven-fiftieths.

• (2) For the financial year 1979 and subsequent financial years subsection (3) of the said section 95 shall have effect with the substitution for any reference to £60,000 of a reference to £70,000 and with the substitution for any reference to £100,000 of a reference to £130,000.

• (3) Where by virtue of subsection (2) above the said section 95 has effect with different relevant amounts in relation to different parts of the same accounting period, those parts shall be treated for the purposes of that section as if they were separate accounting periods and the profits and income of the company for that period (as defined in that section) shall be apportioned between those parts.

Alteration of personal reliefs

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• (1) In section 8 of the Taxes Act (personal reliefs)—

• (a) in subsection (1)(a) (married) for “£1,815” there shall be substituted “£2,145 ”;

• (b) in subsection (1)(b) (single) and (2) (wife's earned income relief) for “£1,165 ” there shall be substituted “£1,375 ”;

• (c) in subsection (1A) (age allowance) for “£2,455 ” and “£1,540 ” there shall be substituted “£2,895 ” and “£1,820 ” respectively ;

• (d) in subsection (1B) (income limit for age allowance) for “£5,000 ” there shall be substituted “£5,900 ”.

• (2) In section 14(2) of that Act (additional relief for widows and others in respect of children) for “£650 ” there shall be substituted “£770 ”.

Widow's bereavement allowance

23

• (1) In Chapter II of Part I of the Taxes Act (personal reliefs) there shall be inserted after section 15—

(15A) Where a man dies in a year of assessment for which he is entitled to the higher (married persons) relief under section 8(1) above, or would be so entitled but for an election under section 15 above or section 23 of the Finance Act 1971 (separate taxation of wife's earnings), his widow shall be entitled for that year to a deduction from her total income of an amount equal to that specified in section 14(2) above.

• (2) This section has effect for the year 1980-81 and subsequent years of assessment.

Indexation of income tax thresholds and allowances

24

• (1) Subsection (2) below shall have effect for the year 1980-81 and subsequent years of assessment but subject, in the case of any year of assessment after that year, to subsections (3) and (4) below; and subsections (5), (6) and (7) below shall have effect for the year 1981-82 and subsequent years of assessment.

• (2) In subsection (1) of section 32 of the Finance Act 1971 (income tax charged at basic and other rates)—

• (a) for paragraph (b) (higher rate or rates) there shall be substituted—

(b) in respect of so much of an individual's total income as exceeds £11,250, at such rates respectively as Parliament may determine in relation to the first £2,000, the next £3,500, the next £5,500, the next £5,500 and the remainder ; “(b) in the words following paragraph (b) (investment income surcharge) for the words ” such amount as Parliament may determine “there shall be substituted ” £5,500 ".