Finance Act 1994

Part I — Customs and Excise

Chapter I — General

Rates of duty

Wine, made-wine and cider.

1

• (1) For the Table of rates of duty in Schedule 1 to the Alcoholic Liquor Duties Act 1979 (wine and made-wine) there shall be substituted the Table in Schedule 1 to this Act.

• (2) In section 62(1) of that Act (cider) for “£22.39” there shall be substituted “ £22.82 ”.

• (3) This section shall be deemed to have come into force on 1st January 1994.

Tobacco products.

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 20 per cent. of the retail price plus £52.33 per thousand cigarettes.
2. Cigars	£77.58 per kilogram.
3. Hand-rolling tobacco	£81.86 per kilogram.
4. Other smoking tobacco and chewing tobacco	£34.26 per kilogram.

• (2) This section shall be deemed to have come into force at 6 o’clock in the evening of 30th November 1993.

Hydrocarbon oil.

3

• (1) In section 6(1) of the Hydrocarbon Oil Duties Act 1979 for “£0.3058” (duty on light oil) and “£0.2514” (duty on heavy oil) there shall be substituted “ £0.3314 ” and “ £0.2770 ” respectively.

• (2) In section 11(1) of that Act (rebate on heavy oil) for “£0.0105” (fuel oil) and “£0.0149” (gas oil) there shall be substituted “ £0.0116 ” and “ £0.0164 ” respectively.

• (3) In section 14(1) of that Act (rebate on light oil for use as furnace fuel) for “£0.0105” there shall be substituted “ £0.0116 ”.

• (4) This section shall be deemed to have come into force at 6 o’clock in the evening of 30th November 1993.

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Other provisions

Vehicles excise duty: miscellaneous provisions.

5

Schedule 2 to this Act (which contains miscellaneous provisions relating to vehicles excise duty) shall have effect.

Gaming machine licence duty.

6

Schedule 3 to this Act (which makes amendments to the Betting and Gaming Duties Act 1981 about gaming machine licence duty) shall have effect.

Chapter II — Appeals and Penalties

The meaning of tribunal

Meaning of tribunal

7

In the following provisions of this Chapter references to an appeal tribunal are references to the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.

Civil penalties

Penalty for evasion of excise duty.

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Penalties for contraventions of statutory requirements.

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• (1) This section applies, subject to section 10 below, to any conduct in relation to which any enactment (including an enactment contained in this Act or in any Act passed after this Act) provides for the conduct to attract a penalty under this section.

• (2) Any person to whose conduct this section applies shall be liable—

• (a) in the case of conduct in relation to which provision is made by subsection (4) below , or by or under any other enactment, for the penalty attracted to be calculated by reference to an amount of, or an amount payable on account of, any duty of excise, to a penalty of whichever is the greater of 5 per cent. of that amount and £250; and

• (b) in any other case, to a penalty of £250.

• (3) Subject to section 13(3) and (4) below, in the case of any conduct to which this section applies which is conduct in relation to which provision is made by subsection (4) or (5) below or any other enactment for that conduct to attract daily penalties, the person whose conduct it is—

• (a) shall be liable, in addition to an initial penalty under subsection (2) above, to a penalty of £20 for every day, after the first, on which the conduct continues, but

• (b) shall not, in respect of the continuation of that conduct, be liable to further penalties under subsection (2) above.

• (4) Where any conduct to which this section applies consists in a failure, in contravention of any subordinate legislation, to pay any amount of any duty of excise or an amount payable on account of any such duty, then, in so far as that would not otherwise be the case—

• (a) the penalty attracted to that contravention shall be calculated by reference to the amount unpaid; and

• (b) the contravention shall also attract daily penalties.

• (5) Where—

• (a) a contravention of any provision made by or under any enactment consists in or involves a failure, before such time as may be specified in or determined in accordance with that provision, to send a return to the Commissioners showing the amount which any person is or may become required to pay by way of, or on account of, any duty of excise, and

• (b) that contravention attracts a penalty under this section,

that contravention shall also attract daily penalties.

• (6) Where, by reason of any conduct to which this section applies, a person is convicted of an offence, that conduct shall not also give rise to liability to a penalty under this section.

• (7) If it appears to the Treasury that there has been a change in the value of money since the passing of this Act or, as the case may be, the last occasion when the power conferred by this subsection was exercised, they may by order substitute for any sum for the time being specified in subsection (2) or (3) above such other sum as appears to them to be justified by the change.

• (8) The power to make an order under subsection (7) above—

• (a) shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons; but

• (b) shall not be exercisable so as to vary the penalty for any conduct occurring before the coming into force of the order.

• (9) Schedule 4 to this Act (which provides for the conduct to which this section applies, repeals the summary offences superseded by this section and makes related provision with respect to forfeiture) shall have effect.

Exceptions to liability under section 9.

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• (1) Subject to subsection (2) below and to any express provision to the contrary made in relation to any conduct to which section 9 above applies, such conduct shall not give rise to any liability to a penalty under that section if the person whose conduct it is satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the conduct.

• (2) Where it appears to the Commissioners or, on appeal, an appeal tribunal that there is no reasonable excuse for a continuation of conduct for which there was at first a reasonable excuse, liability for a penalty under section 9 above shall be determined as if the conduct began at the time when there ceased to be a reasonable excuse for its continuation.

• (3) For the purposes of this section—

• (a) an insufficiency of funds available for paying any duty or penalty due shall not be a reasonable excuse; and

• (b) where reliance is placed by any person on another to perform any task, then neither the fact of that reliance nor the fact that any conduct to which section 9 above applies was attributable to the conduct of that other person shall be a reasonable excuse.

Breaches of controlled goods agreements

10A

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Breaches of walking possession agreements.

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• (1) This section applies where—

• (a) in accordance with regulations under section 51 of the Finance Act 1997 (enforcement by distress), a person (“the person levying the distress”) is empowered or authorised to distrain any property of another person (“the person in default”) who has refused or neglected to pay any amount of relevant duty or any amount recoverable as if it were an amount of relevant duty due from him; and

• (b) the person levying the distress and the person in default have entered into a walking possession agreement.

• (2) In this section a “walking possession agreement” means an agreement under which, in consideration of the property distrained upon being allowed to remain in the custody of the person in default and of the delaying of its sale, the person in default—

• (a) acknowledges that the property specified in the agreement is under distraint and held in walking possession; and

• (b) undertakes that, except with the consent of the Commissioners and subject to such conditions as they may impose, he will not remove or allow the removal of any of the specified property from the premises named in the agreement.

• (3) Subject to subsection (4) below, if the person in default is in breach of the undertaking contained in a walking possession agreement, he shall be liable to a penalty equal to one-half of the unpaid duty or penalty which gives rise to the distraint.

• (4) The person in default shall not be liable to a penalty under subsection (3) above if he satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the breach in question.

• (5) This section extends only to Northern Ireland.

Assessments to excise duty or to penalties

Assessments to excise duty.

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• (1) Subject to subsection (4) below, where it appears to the Commissioners—

• (a) that any person is a person from whom any amount has become due in respect of any duty of excise; and

• (b) that there has been a default falling within subsection (2) below,

the Commissioners may assess the amount of duty due from that person to the best of their judgement and notify that amount to that person or his representative.

• (1A) Subject to subsection (4) below, where it appears to the Commissioners—

• (a) that any person is a person from whom any amount has become due in respect of any duty of excise; and

• (b) that the amount due can be ascertained by the Commissioners,

the Commissioners may assess the amount of duty due from that person and notify that amount to that person or his representative.

• (2) The defaults falling within this subsection are—

• (a) any failure by any person to make, keep, preserve or produce as required or directed by or under any enactment any returns, accounts, books, records or other documents;

• (b) any omission from or inaccuracy in any returns, accounts, books, records or other documents which any person is required or directed by or under any enactment to make, keep, preserve or produce;

• (c) any failure by any person to take or permit to be taken any step which he is required under Schedule ... 3 to the Betting and Gaming Duties Act 1981 or Schedule 1 to the Finance Act 1997 or Part 1 of Schedule 24 to the Finance Act 2012 or Part 3 of the Finance Act 2014 to take or to permit to be taken;

• (ca) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (d) any unreasonable delay in performing any obligation the failure to perform which would be a default falling within this subsection.

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

• (3) Where an amount has been assessed as due from any person and notified in accordance with this section, it shall, subject to any appeal under section 16 below, be deemed to be an amount of the duty in question due from that person and may be recovered accordingly, unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.

• (4) An assessment of the amount of any duty of excise due from any person shall not be made under this section at any time after whichever is the earlier of the following times, that is to say—

• (a) subject to subsection (5) below, the end of the period of 4 years beginning with the time when his liability to the duty arose; and

• (b) the end of the period of one year beginning with the day on which evidence of facts, sufficient in the opinion of the Commissioners to justify the making of the assessment, comes to their knowledge;

but this subsection shall be without prejudice, where further evidence comes to the knowledge of the Commissioners at any time after the making of an assessment under this section, to the making of a further assessment within the period applicable by virtue of this subsection in relation to that further assessment.

• (5) Subsection (4) above shall have effect as if the reference in paragraph (a) to 4 years were a reference to twenty years in any case falling within subsection (5A)(a) or (b) of any assessment to any amount of duty the assessment or payment of any of which has been postponed or otherwise affected by—

• (a) conduct in respect of which any person (whether or not the person assessed)—

• (i) has become liable to a penalty under section 8 above, or

• (ii) has been convicted of an offence of fraud or dishonesty; or

• (b) any conduct in respect of which proceedings for an offence of fraud or dishonesty would have been commenced or continued against any person (whether or not the person assessed), but for their having been compounded under section 152(a) of the Management Act.

• (5A) The cases are—

• (a) a case involving a loss of duty of excise brought about deliberately by the person assessed (P) or by another person acting on P's behalf, and

• (b) a case in which P has participated in a transaction knowing that it was part of arrangements of any kind (whether or not legally enforceable) intended to bring about a loss of duty of excise.

• (6) The reference in subsection (4) above to the time when a person’s liability to a duty of excise arose are references—

• (a) in the case of a duty of excise on goods, to the excise duty point; and

• (b) in any other case, to the time when the duty was charged.

• (6A) The reference in subsection (5A) to a loss of duty of excise brought about deliberately by P or another person includes a loss that arises as a result of—

• (a) a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by that person, or

• (b) a deliberate failure by that person to comply with an obligation specified in the Table in paragraph 1 of Schedule 41 to the Finance Act 2008 with respect to that duty of excise.

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

• (8) In this section “representative”, in relation to a person appearing to the Commissioners to be a person from whom any amount has become due in respect of any duty of excise, means his personal representative , trustee in bankruptcy or interim or permanent trustee, any receiver or liquidator appointed in relation to that person or any of his property or any other person acting in a representative capacity in relation to that person.

Other assessments relating to excise duty matters.

12A

• (1) This subsection applies where any relevant excise duty relief other than an excepted relief—

• (a) has been given but ought not to have been given, or

• (b) would not have been given had the facts been known or been as they later turn out to be.

• (2) Where subsection (1) above applies, the Commissioners may assess the amount of the relief given as being excise duty due from the liable person and notify him or his representative accordingly.

• (3) Where an amount has been assessed as due from any person under—

• (a) subsection (2) above,

• (b) section 94 or 96 of the Management Act, ...

• (bb) section 60, 78 or 79 of the Finance (No. 2) Act 2023,

• (c) section 10, 13, 13ZB, 13AB, 13AD, 14, 14F, 23 or 24 of the Hydrocarbon Oil Duties Act 1979,

• (d) section 8 of the Tobacco Products Duty Act 1979, or

• (e) section 2 of the Finance (No. 2) Act 1992,

and notice has been given accordingly, that amount shall, subject to any appeal under section 16 below, be deemed to be an amount of excise duty due from that person and may be recovered accordingly, unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.

• (4) No assessment under any of the provisions referred to in subsection (3) above, or under section 61 or 167 of the Management Act, shall be made at any time after whichever is the earlier of the following times, that is to say—

• (a) subject to subsection (6) below, the end of the period of 4 years beginning with the relevant time; and

• (b) the end of the period of one year beginning with the day on which evidence of facts, sufficient in the opinion of the Commissioners to justify the making of the assessment, comes to their knowledge.

• (5) Subsection (4) above shall be without prejudice, where further evidence comes to the knowledge of the Commissioners at any time after the making the assessment concerned, to the making of a further assessment within the period applicable by virtue of that subsection in relation to that further assessment.

• (6) Subsection (4) above shall have effect as if the reference in paragraph (a) to 4 years were a reference to twenty years in any case falling within section 12(5A)(a) or (b).

• (7) For the purposes of subsection (6), a reference in section 12(5A) to a loss of duty of excise includes a loss caused by giving relief, allowing a rebate, conferring an entitlement to drawback or repaying an amount that ought not to have been given, allowed, conferred or repaid.

Section 12A: supplementary provisions.

12B

• (1) For the purposes of section 12A above and this section, relevant excise duty relief has been given if (and only if)—

• (a) an amount of excise duty which a person is liable to pay has been remitted or payment of an amount of excise duty which a person is liable to pay has been waived;

• (b) an amount of excise duty has been repaid to a person;

• (c) an amount by way of drawback of excise duty has been paid to a person;

• (d) an allowance of excise duty in any amount has been made to a person;

• (e) an amount by way of rebate has been allowed to a person;