Finance Act 1982

Part I — Customs and Excise

Reduction of duty on conveyances and leases.

1

• (1) In section 5 of the Alcoholic Liquor Duties Act 1979 (excise duty on spirits) for the words from “at the rates” to the end of the section there shall be substituted the words “ at the rate of £14.47 per litre of alcohol in the spirits ”.

• (2) In section 36 of that Act (excise duty on beer) for “£18.00” and “£0.60” there shall be substituted “ £20.40 ” and “ £0.68 ” respectively.

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

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

• (5) In section 62(1) of that Act (excise duty on cider) for “£7.20” there shall be substituted “ £8.16 ”.

• (6) This section shall be deemed to have come into force on 10th March 1982.

Tobacco products

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Hydrocarbon oil, etc.

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Aviation gasoline

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• (1) The Hydrocarbon Oil Duties Act 1979 shall have effect subject to the following modifications.

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

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

• (4) In subsection (1) of section 27 (interpretation) after the words “In this Act” there shall be inserted the words— “ “aviation gasoline” has the meaning given by section 6(4) above ”.

• (5) In Part I of Schedule 3 (regulations under section 21 relating to hydrocarbon oil) after paragraph 10 there shall be inserted the following paragraphs—

(1OA) Amending the definition of “aviation gasoline” in subsection (4) of section 6 of this Act. (1OB) Conferring power to require information relating to the supply or use of aviation gasoline to be given by producers, dealers and users. (1OC) Requiring producers and users of and dealers in aviation gasoline to keep and produce records relating to aviation gasoline.

• (6) In Schedule 4 (regulations under section 24) after paragraph 18 there shall be inserted the following paragraphs—

(18A) Prohibiting the use of aviation gasoline otherwise than as a fuel for aircraft. (18B) Prohibiting the taking of aviation gasoline into fuel tanks for engines other than aircraft engines.

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

Vehicles excise duty: Great Britain

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

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

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

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

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

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

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

Vehicles excise duty: Northern Ireland

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Additional liability in relation to alteration of vehicle or its use

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

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

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

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

Betting and gaming duties

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• (1) Schedule 6 to this Act shall have effect for the purposes of—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) increasing gaming licence duty;

• (c) amending the law relating to bingo duty ; and

• (d) increasing, and otherwise amending the law relating to, gaming machine licence duty.

• (2) Part II of Schedule 6 shall have effect in relation to bets made at any time by reference to an event taking place after 31st March 1982, Part Ill of that Schedule shall have effect in relation to gaming licences for any period beginning after 31st March 1982, Part IV of that Schedule shall have effect in relation to bingo played after 26th September 1982 and Part V of that Schedule shall have effect in relation to gaming machine licences for any period beginning after 30th September 1982.

Immature spirits for home use and loss allowance for imported beer

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

• (3) At the end of section 40 of the Alcoholic Liquor Duties Act 1979 (charge of duty on imported beer) there shall be added the following subsection:—

(3) The duty chargeable on beer to which subsection (1) above applies and which is imported or removed into the United Kingdom in containers having a capacity of more than 10 litres shall be charged on a quantity which is 2 per cent. less than the quantity so imported or removed.

• (4) Subsection (3) above has effect in relation to beer imported or removed into the United Kingdom on or after 1st October 1982.

Regulator powers

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• (1) In subsection (2) of section 1 of the Excise Duties (Surcharges or Rebates) Act 1979 (regulator powers) for the words from “groups of duties” to “every right” there shall be substituted the words

duties to which this section applies, provide for an adjustment— (a) of any liability to such a duty; and (b) of any right

.

• (2) For subsections (3) and (4) of section 2 of that Act there shall be substituted the following subsection—

(3) An order— (a) may specify different percentages for different cases; but (b) may not provide for both an addition to any amount payable and a deduction from any other amount payable.

.

• (3) In subsection (7) of that section (procedure for certain orders) for the words from “with respect to” to the end of paragraph (b) there shall be substituted the words

— (a) specifies a percentage by way of addition to any amount payable or increases a percentage so specified; or (b) withdraws or reduces a percentage specified by way of deduction from any amount payable,

.

Powers of Commissioners with respect to agricultural levies etc.

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• (1) Notwithstanding that—

• (a) agricultural levies, within the meaning of section 6 of the European Communities Act 1972, which are charged on goods exported from the United Kingdom are, in accordance with subsection (4) of that section, paid to and recoverable by the relevant Minister (within the meaning given by subsection (9) of that section), and

• (b) payments made by virtue of Community arrangements to which subsection (3) of that section applies are made by that Minister (within the meaning so given),

proceedings for an offence under the Theft Act 1968, the Theft Act 1978, the Theft Act (Northern Ireland) 1969 , the Theft (Northern Ireland) Order 1978 or the Fraud Act 2006 relating to any such levies or payments may be instituted by the Commissioners.

• (2) At the end of Part V of the Customs and Excise Management Act 1979 (control of exportation) there shall be added the following section:—

(68A) (1) Without prejudice to section 11(1) of the Finance Act 1982, if any person is, in relation to any goods, in any way knowingly concerned in any fraudulent evasion or attempt at evasion of any agricultural levy chargeable on the export of the goods, he shall be guilty of an offence and may be detained. (2) Any person guilty of an offence under this section shall be liable, on summary conviction, to a penalty of three times the value of the goods or £200, whichever is the greater. (3) Any goods in respect of which an offence under this section is committed shall be liable to forfeiture. (4) In this section “agricultural levy” has the same meaning as in section 6 of the European Communities Act 1972 and the provisions of this section apply notwithstanding that any such levy may be payable to the Intervention Board for Agricultural Produce.

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

Delegation of Commissioners' functions

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In subsection (1) of section 8 of the Customs and Excise Management Act 1979 (functions of Commissioners may be exercised by secretaries, assistant secretaries, etc.) for paragraphs (b) and (c) there shall be substituted the following paragraph:—

(b) any officer or other person acting under the authority of the Commissioners

;

Part II

Registration

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Input tax

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• (1) In subsection (5) of section 3 of the Finance Act 1972 (payment of excess credit for input tax against output tax by Commissioners) after the words " the amount of the excess shall" there shall be inserted the words " subject to subsection (6A) below " , and after subsection (6) of that section there shall be inserted the following subsection—

(6A) Where at the end of any period an amount is due under subsection (5) above to a taxable person who has failed to submit returns or to pay tax for any earlier period as required by this Part of this Act, the Commissioners may withhold payment of that amount until he has complied with that requirement.

• (2) In subsection (8)(b) of that section (power to enable taxable persons to count tax on the supply or importation of goods as their input tax) for the words " supply to him, or paid by him on the importation, of goods " there shall be substituted the words " supply to him of goods or services or paid by him on the importation of goods ".

Supplies spanning change of rate etc.

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• (1) This section applies where there is a change in the rate of value added tax in force under section 9 of the Finance Act 1972, or in the descriptions of exempt or zero-rated supplies.

• (2) Where

• (a) a supply affected by the change would, apart from subsections (4) to (6A) of section 7 of that Act (time of supply), be treated under subsection (2) or (3) of that section as made wholly or partly at a time when it would not have been affected by the change, or

• (b) a supply not so affected would apart from subsections (4) to (6A) be treated under subsection (2) or (3) of that section as made wholly or partly at a time when it would have been so affected,

the rate at which tax is chargeable on the supply, or any question whether it is zero-rated or exempt, shall if the person making it so elects be determined without regard to subsections (4) to (6A).

• (3) Any power to make regulations under Part I of the Finance Act 1972 with respect to the time when a supply is to be treated as taking place shall include power to provide for this section to apply as if the references in subsection (2) above to section 7(4) to (6A) included references to specified provisions of the regulations.

• (4) Regulations under section 30 of the Finance Act 1972 may make provision for the replacement or correction of any tax invoice which—

• (a) relates to a supply in respect of which an election is made under this section, but

• (b) was issued before the election was made.

• (5) No election may be made under this section in respect of a supply to which paragraph 6 of Schedule 2 to the Finance Act 1972 (sales in satisfaction of debts) or section 19(4) of the Finance (No. 2) Act 1975 (invoice provided by recipient) applies.

Treatment of partnerships

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• (1) In section 22 of the Finance Act 1972 (partnerships) in subsection (1) (registration of partners in the name of the firm and provisions as to changes of members of the partnership)—

• (a) after the words " in determining " there shall be inserted the words " for any purpose of this Part of this Act "; and

• (b) the words from " or of a change " onwards shall be omitted.

• (2) After that subsection there shall be inserted the following subsections: —

(1A) Without prejudice to section 36 of the Partnership Act 1890 (rights of persons dealing with firm against apparent members of firm) until the date on which a change in the partnership is notified to the Commissioners, a person who has ceased to be a member of a partnership shall be regarded as continuing to be a partner for the purposes of this Part of this Act and, in particular, for the purpose of any liability for tax on the supply of goods or services by the partnership. (1B) Where a person ceases to be a member of a partnership during a prescribed accounting period (or is treated as so doing by virtue of subsection (1A) above) any notice, whether of assessment or otherwise, which is served on the partnership and relates to, or to any matter arising in, that period or any earlier period during the whole or part of which he was a member of the partnership shall be treated as served also on him. (1C) Without prejudice to section 16 of the Partnership Act 1890 (notice to acting partner to be notice to the firm) any notice, whether of assessment or otherwise, which is addressed to a partnership by the name in which it is registered by virtue of subsection (1) above and is served in accordance with this Part of this Act shall be treated for the purposes of this Part of this Act as served on the partnership and, accordingly, where subsection (1B) above applies, as served also on the former partner.

• (3) In subsection (2) of that section for " Subsection (1)" there shall be substituted " Subsections (1) and (1B) ".

Recovery of over-payment of value added tax etc.

17

• (1) In section 31 of the Finance Act 1972 (assessment to tax) after subsection (1) there shall be inserted the following subsections: —

(1A) In any case where— (a) an amount has been repaid to any person as being a repayment of tax, which ought not to have been repaid, or (b) an amount has been paid to any person as being due to him in accordance with section 3(5) of this Act, which ought not to have been paid to him, the Commissioners may assess that amount as being tax due from him in the prescribed accounting period in which the amount was repaid or, as the case may be, paid and notify it to him accordingly. (1B) Where a person is assessed under subsections (1) and (1A) above in respect of the same prescribed accounting period the assessments may be combined and notified to him as one assessment.

• (2) In subsections (2), (4) and (6) of that section after the words " subsection (1)" there shall be inserted the words " or subsection (1A) ".

• (3) In section 40(1)(b)(i) of the Finance Act 1972 (appeals against assessments) after the words " subsection (1) " there shall be inserted the words " or (1A) ".

• (4) The preceding provisions of this section shall not have effect in relation to any amounts repaid or paid to any person before the passing of this Act.

Car tax: reduction for motor caravans

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Car tax: transfer of liability on transfer of stocks

19

In paragraph 26 of Schedule 7 to the Finance Act 1972 (regulations relating to car tax) after paragraph (e) there shall be inserted the following paragraph—

(ee) for transferring liability for the tax in respect of any chargeable vehicles to a person to whom the property in the vehicles is transferred where the circumstances of the transfer are of a description specified in the regulations and are such that tax does not become due on or before the transfer, and for applying to the transferee, with or without modifications, provisions of this Schedule applicable to a person who is liable for tax as a person registered under this Schedule.

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

Chapter I — General

Charge of income tax for 1982-83

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Charge of corporation tax for financial year 1981

21

Corporation tax shall be charged for the financial year 1981 at the rate of 52 per cent.

Rate of advance corporation tax for financial year 1982

22

The rate of advance corporation tax for the financial year 1982 shall be three-sevenths.

Corporation tax: small companies

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• (1) The small companies rate for the financial year 1981 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 two twenty-fifths.

• (2) For the financial year 1981 and subsequent financial years subsection (3) of the said section 95 shall have effect with the substitution for any reference to £80,000 of a reference to £90,000 and with the substitution for any reference to £200,000 of a reference to £225,000.

• (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.

Personal reliefs

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• (1) Section 24(5) of the Finance Act 1980 (increase of personal reliefs) shall not apply for the year 1982-83.

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

• (a) in subsection (1)(a) (married) for "£2,145 " there shall be substituted " £2,445 ";

• (b) in subsections (1)(b) (single) and (2) (wife's earned in come relief) for "£1,375" there shall be substituted " £1,565 ";

• (c) in subsection (1A) (age allowance) for "£2,895" and "£1,820" there shall be substituted " £3,295 " and " £2,070 " respectively ; and

• (d) in subsection (1B) (income limit for age allowance) for " £5,900 " there shall be substituted " £6,700 ".

Relief for interest

25

• (1) In sub-paragraph (1) of paragraph 5 of Schedule 1 to the Finance Act 1974 (limit on relief for interest on certain loans for the purchase or improvement of land) the references to £25,000 shall have effect for the year 1982-83 as well as for previous years of assessment.

• (2) At the end of that paragraph there shall be added the following sub-paragraph—

(6) In determining whether the amount on which interest is payable under a loan exceeds the limit in sub-paragraph (1) above, no account shall be taken of so much (if any) of that amount as consists of interest which has been added to capital and does not exceed £1,000.

Deduction of tax from certain loan interest

26