Finance Act 1991

Part I — CUSTOMS AND EXCISE, VALUE ADDED TAX AND CAR TAX

CHAPTER I — CUSTOMS AND EXCISE

Rates of duty

Spirits, beer, wine, made-wine and cider

1

• (1) In section 5 of the Alcoholic Liquor Duties Act 1979 (spirits) for “£17.35” there shall be substituted “ £18.96 ”.

• (2) In section 36 of that Act (beer) for “£0.97” there shall be substituted “ £1.06 ”.

• (3) For the Table of rates of duty in Schedule 1 to that Act (wine and made-wine) there shall be substituted the Table in Schedule 1 to this Act.

• (4) In section 62(1) of that Act (cider) for “£18.66” there shall be substituted “ £20.40 ”.

• (5) This section shall be deemed to have come into force at 6 o’clock in the evening of 19th March 1991.

Rate of corporation tax for 1990.

2

• (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 £40.15 per thousand cigarettes.
2. Cigars	£61.72 per kilogram.
3. Hand-rolling tobacco	£65.12 per kilogram.
4. Other smoking tobacco and chewing tobacco	£28.69 per kilogram.

• (2) This section shall be deemed to have come into force at 6 o’clock in the evening of 19th March 1991.

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

3

• (1) In section 6(1) of the Hydrocarbon Oil Duties Act 1979, for “£0.2248” (duty on light oil) and “£0.1902” (duty on heavy oil) there shall be substituted “ £0.2585 ” and “ £0.2187 ” respectively.

• (2) In section 11(1) of that Act, for “£0.0083” (rebate on fuel oil) and “£0.0118” (rebate on gas oil) there shall be substituted “ £0.0091 ” and “ £0.0129 ” respectively.

• (3) In section 13A(1) of that Act (rebate on unleaded petrol) for “£0.0299” there shall be substituted “ £0.0344 ”.

• (4) In section 14(1) of that Act (rebate on light oil for use as furnace fuel) for “£0.0083” there shall be substituted “ £0.0091 ”.

• (5) This section shall be deemed to have come into force at 6 o’clock in the evening of 19th March 1991.

Relief for company trading losses.

4

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

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

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

Definition of “normal commercial loan”.

5

• (1) In section 7(1) of the Betting and Gaming Duties Act 1981 (which specifies 40 per cent. as the rate of pool betting duty) for “40 per cent.” there shall be substituted “ 37.50 per cent. ”

• (2) This section shall apply in relation to bets made at any time by reference to an event taking place on or after 17th August 1991.

Gaming licence duty

6

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duties of excise: other provisions

Beer duty

7

• (1) For section 36 of the Alcoholic Liquor Duties Act 1979 (charge on beer imported into, or brewed in, the United Kingdom of an excise duty at a rate per hectolitre for every degree by which the original gravity of the beer exceeds 1000 degrees) there shall be substituted—

(36) (1) There shall be charged on beer— (a) imported into the United Kingdom, or (b) produced in the United Kingdom, a duty of excise at the rate of £10.60 per hectolitre per cent. of alcohol in the beer. (2) Subject to the provisions of this Act— (a) the duty on beer produced in, or imported into, the United Kingdom shall be charged and paid, and (b) the amount chargeable in respect of any such duty shall be determined and become due, in accordance with regulations under section 49 below.

• (2) After section 41 of that Act (which specifies certain reliefs from duty) there shall be inserted—

(41A) (1) A person registered by the Commissioners under this section may hold, on premises so registered in relation to him, any beer of a prescribed class or description— (a) which has been produced in, or imported into, the United Kingdom, and (b) which is chargeable as such with excise duty, without payment of that duty. (2) A person entitled under subsection (1) above to hold beer on premises without payment of duty may also without payment of duty carry out on those premises such operations as may be prescribed on, or in relation to, such of the beer as may be prescribed. (3) No person shall be registered under this section unless— (a) he is a registered brewer or a packager of beer; and (b) he appears to the Commissioners to satisfy such requirements for registration as they may think fit to impose. (4) No premises shall be registered under this section unless— (a) they are used for the production or packaging of beer, or (b) they are adjacent to, and occupied by the same person as, premises falling within paragraph (a) above which are registered under this section, and they appear to the Commissioners to satisfy such requirements for registration as the Commissioners may think fit to impose. (5) The Commissioners may register a person or premises under this section for such periods and subject to such conditions as they think fit. (6) The Commissioners may at any time for reasonable cause— (a) revoke or vary the terms of their registration of any person or premises under this section; or (b) restrict the premises which are so registered. (7) As respects beer chargeable with a duty of excise that has not been paid, regulations under section 49 below may, without prejudice to the generality of that section, make provision— (a) regulating the holding or packaging of, or the carrying out of other operations on or in relation to, any such beer on registered premises without payment of the duty; (b) for securing and collecting the duty on any such beer held on registered premises; (c) permitting the removal of any such beer from registered premises without payment of duty in such circumstances and subject to such conditions as may be prescribed; (d) for such persons as may be prescribed to be liable to pay the duty on any such beer held on, or removed without payment of duty from, registered premises, and for the circumstances in which, and the time at which, they are liable to do so. (8) If any person contravenes or fails to comply with any condition of registration under this section he shall be liable on summary conviction to a penalty not exceeding level 5 on the standard scale; and any beer in respect of which the offence was committed shall be liable to forfeiture. (9) In this section— - “prescribed means specified in, or determined in accordance with, regulations made by the Commissioners under section 49 below; - “registered premises means premises registered under this section.

• (3) For sections 47 and 48 of that Act (licences to brew beer and to use premises for adding solutions to beer) there shall be substituted—

(47) (1) A person who produces beer on any premises in the United Kingdom must be registered with the Commissioners under this section in respect of those premises; and in this Act “registered brewer means a person registered under this section in respect of any premises. (2) A person who produces beer on any premises shall not be required to be registered under this section in respect of those premises if the beer is produced solely for his own domestic use or solely for the purposes of research or experiments in the production of beer. (3) An application for the registration under this section of any person required to be so registered in respect of any premises— (a) shall be made at least fourteen days before the day on which he begins production of beer on those premises; and (b) shall be in such form and manner as the Commissioners may by or under regulations prescribe. (4) If any person fails to apply for registration under this section in circumstances where he is required by subsection (3)(a) above to do so, he shall be liable on summary conviction to a penalty not exceeding level 4 on the standard scale; and any beer or worts produced in contravention of that provision shall be liable to forfeiture. (5) If any person produces beer on any premises in circumstances in which he is required to be, but is not, registered under this section in respect of those premises, he shall be liable on summary conviction to a penalty not exceeding level 5 on the standard scale; and any beer or worts in respect of which the offence was committed shall be liable to forfeiture.

• (4) The enactments and instruments mentioned in Schedule 2 to this Act shall have effect with the amendments specified in that Schedule.

• (5) This section shall come into force on such day as the Commissioners may by order made by statutory instrument appoint, and different days may be so appointed for different provisions or for different purposes.

• (6) An order under subsection (5) above may contain such saving or transitional provision as the Commissioners think fit; and, without prejudice to the generality of the foregoing, any such order may include provision—

• (a) for treating beer—

• (i) produced, or in the process of being produced, before the relevant day, and

• (ii) held on, or in the process of being transported between, registered premises on that day,

as beer produced on or after that day and chargeable accordingly, and

• (b) for the remission or repayment of any duty charged or paid in respect thereof under provisions replaced by this section and Schedule 2 to this Act.

• (7) In this section—

• “the Commissioners means the Commissioners of Customs and Excise;

• “registered premises means—

• (a) premises which, on the relevant day, are registered under section 41A of the Alcoholic Liquor Duties Act 1979, or

• (b) premises in respect of which, on that day, a person is registered under section 47 of that Act;

Vehicles excise duty: exemptions

8

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

Vehicles excise duty: combined transport

9

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extension of Vehicles (Excise) Act 1971 to Northern Ireland

10

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Management

Revenue traders and registered excise dealers and shippers

11

• (1) In section 1 of the Customs and Excise Management Act 1979 (interpretation) in subsection (1), after the definition of “Queen’s warehouse” there shall be inserted—

“registered excise dealer and shipper means a revenue trader approved and registered by the Commissioners under section 100G below; “registered excise dealers and shippers regulations means regulations under section 100G below;

.

• (2) In the definition of “revenue trader” in that subsection, in paragraph (a) (person carrying on a trade or business subject to any of the revenue trade provisions of the customs and excise Acts) after the words “customs and excise Acts” there shall be inserted the words

or which consists of or includes— (i) the buying, selling, importation, exportation, dealing in or handling of any goods of a class or description which is subject to a duty of excise (whether or not duty is chargeable on the goods); or (ii) the financing or facilitation of any such transactions or activities,

.

• (3) Schedule 4 to this Act shall have effect.

Protection of the revenues derived from excise duties

12

Schedule 5 to this Act (which makes provision for the purpose of protecting the revenues derived from duties of excise) shall have effect.

CHAPTER II — VALUE ADDED TAX

Rate

13

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Person supplied for input tax purposes

14

Bad debts

15

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Groups of companies

16

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interest on overpayments etc

17

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Reduction of penalty for serious misdeclaration etc

18

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER III — CAR TAX

Vehicles leased to the handicapped

19

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

Research vehicles

20

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

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

Chapter I — General

Income tax rates and allowances

Charge and rates of income tax for 1991-92

21

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

Married couple’s allowance

22

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

Corporation tax rates

Rate of corporation tax for 1990

23

• (1) The rate at which corporation tax is charged for the financial year 1990 shall be 34 per cent. (and not 35 per cent. as provided by section 19 of the Finance Act 1990).

• (2) For the financial year 1990 the fraction mentioned in section 13(2) of the Taxes Act 1988 (marginal relief for small companies) shall be nine four-hundredths (and not one fortieth as provided by section 20 of the Finance Act 1990).

• (3) All such adjustments shall be made, whether by way of discharge or repayment of tax or otherwise, as may be required in consequence of the provisions of this section.

Charge and rate of corporation tax for 1991

24

Corporation tax shall be charged for the financial year 1991 at the rate of 33 per cent.

Small companies

25

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

Interest

Relief for interest

26

For the year 1991-92 the qualifying maximum defined in section 367(5) of the Taxes Act 1988 (limit on relief for interest on certain loans) shall be £30,000.

Abolition of higher rate relief on certain mortgage interest etc

27

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

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

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

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

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

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

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

Mortgage interest relief: caravans

28

• (1) Section 354(3) of the Taxes Act 1988 (interest eligible for relief in the case of a caravan only if the caravan is large or certain conditions presupposing domestic rating are met) shall cease to have effect.

• (2) This section shall have effect for the year 1991-92 and subsequent years of assessment.

Benefits in kind

Car benefits

29

• (1) In Schedule 6 to the Taxes Act 1988 (taxation of directors and others in respect of cars) for Part I (tables of flat rate cash equivalents) there shall be substituted—

Cylinder capacity of car in cubic centimetres	Age of car at end of relevant year of assessment	Age of car at end of relevant year of assessment
	Under 4 years	4 years or more
1400 or less	£2,050	£1,400
More than 1400 but not more than 2000	£2,650	£1,800
More than 2000	£4,250	£2,850
Original market vaue of car	Age of car at end of relevant year of assessment	Age of car at end of relevant year of assessment
---	---	---
	Under 4 years	4 years or more
Less than £6,000	£2,050	£1,400
£6,000 or more but less than £8,500	£2,650	£1,800
£8,500 or more but not more than £19,250	£4,250	£2,850
Original market value of car	Age of car at end of relevant year of assessment	Age of car at end of relevant year of assessment
---	---	---
	Under 4 years	4 years or more
More than £19,250 but not more than £29,000	£5,500	£3,700
More than £29,000	£8,900	£5,900

• (2) This section shall have effect for the year 1991-92 and subsequent years of assessment.

Mobile telephones

30

Beneficial loans: increase of de minimis limit

31

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Vocational training

Relief

32

• (1) This section applies where—

• (a) on or after 6th April 1992 an individual resident in the United Kingdom makes a payment in respect of a qualifying course of vocational training,

• (b) the payment is made in respect of an allowable expense,

• (c) the payment is made in connection with the individual’s own training,

• (ca) at the time the payment is made, the individual—

• (i) in a case where the qualifying course of vocational training is such a course by virtue only of paragraph (b) of subsection (10) below, has attained the age of thirty, or

• (ii) in any other case, has attained school-leaving age and, if under the age of nineteen, is not a person who is being provided with full-time education at a school,

• (cb) the individual undertakes the course neither wholly nor mainly for recreational purposes or as a leisure activity,

• (d) at the time the payment is made, the individual has not received in relation to the course, and is not entitled to receive in relation to it, any public financial assistance of a description specified in regulations made by the Treasury for the purposes of this paragraph, and

• (e) the individual is not entitled to claim any relief or deduction in respect of the payment under any other provision of the Income Tax Acts.