Finance Act 1995

Part I — Duties of Excise

Alcoholic liquor duties

Increased rates on 30th November 1994.

1

• (1) The Alcoholic Liquor Duties Act 1979 shall be amended as follows.

• (2) In section 1 (the alcoholic liquors dutiable under the Act) in subsections (4) and (5) (definitions of “wine” and “made-wine”) after the words “any liquor” there shall in both cases be inserted “ which is of a strength exceeding 1.2 per cent and which is ”.

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

• (4) In section 59(1) (prohibition on rendering wine and made-wine sparkling) for paragraph (b) there shall be substituted the following paragraph—

(b) is wine or made-wine of a strength exceeding 5.5 per cent.

.

• (5) Subsections (2) and (4) above—

• (a) shall apply in relation to liquor imported into, or produced in, the United Kingdom on or after 1st January 1995, and

• (b) as regards any provision about liquor removed to the United Kingdom from the Isle of Man, shall also apply in relation to liquor so removed on or after that date.

• (6) Subsection (3) above shall apply in relation to liquor imported into, or made in, the United Kingdom on or after 1st January 1995.

Records for purposes of returns.

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• (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) This section shall be deemed to have come into force on 1st January 1995.

Part-time workers: miscellaneous provisions.

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• (1) In section 5 of the Alcoholic Liquor Duties Act 1979 (spirits) for “£19.81” there shall be substituted “ £20.60 ”.

• (2) In section 36(1) of that Act (beer) for “£10.45” there shall be substituted “ £10.82 ”.

• (3) In section 62(1) of that Act (cider) for “£22.82” there shall be substituted “ £23.78 ”.

• (4) This section shall be deemed to have come into force on 1st January 1995.

Transfer: associated bodies.

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• (1) Subject to the following provisions of this section, where any person proves to the satisfaction of the Commissioners that any dutiable alcoholic liquor on which duty has been paid has been—

• (a) used as an ingredient in the production or manufacture of a product falling within subsection (2) below, or

• (b) converted into vinegar,

he shall be entitled to obtain from the Commissioners the repayment of the duty paid thereon.

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

• (a) any beverage of an alcoholic strength not exceeding 1.2 per cent.,

• (b) chocolates for human consumption which contain alcohol such that 100 kilograms of the chocolates would not contain more than 8.5 litres of alcohol, or

• (c) any other food for human consumption which contains alcohol such that 100 kilograms of the food would not contain more than 5 litres of alcohol.

• (3) A repayment of duty shall not be made under this section in respect of any liquor except to a person who—

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

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (d) makes a claim for the repayment in accordance with the following provisions of this section; and

• (e) satisfies the Commissioners ...that the repayment claimed does not relate to any duty which has been repaid or drawn back prior to the making of the claim.

• (4) A claim for repayment under this section shall take such form and be made in such manner, and shall contain such particulars, as the Commissioners may direct, either generally or in a particular case.

• (5) Except so far as the Commissioners otherwise allow, a person shall not make a claim for a repayment under this section unless—

• (a) the claim relates to duty paid on liquor used as an ingredient or, as the case may be, converted into vinegar in the course of a period of three months ending not more than three years before the making of the claim; ...

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

• (7) There may be remitted by the Commissioners any duty charged either—

• (a) on any dutiable alcoholic liquor imported into the United Kingdom at a time when it is contained as an ingredient in any chocolates or food falling within subsection (2)(b) or (c) above; or

• (b) on any dutiable alcoholic liquor used as an ingredient in the manufacture or production in an excise warehouse of any such chocolates or food.

• (8) This section shall be construed as one with the Alcoholic Liquor Duties Act 1979, and references in this section to chocolates or food do not include references to any beverages.

Denatured alcohol

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• (1) The liquors on which duty is charged under the Alcoholic Liquor Duties Act 1979 shall not include any denatured alcohol; and any duty so charged on liquor which has become denatured alcohol before the requirement to pay the duty takes effect shall be remitted.

• (2) In this section—

• “denatured alcohol” means any dutiable alcoholic liquor which has been subjected to the process of being mixed in the prescribed manner with a prescribed substance; and

• “prescribed” means prescribed by the Commissioners by regulations made by statutory instrument.

• (3) The power of the Commissioners to make regulations defining denatured alcohol for the purposes of this section shall include—

• (a) power, in prescribing any substance or any manner of mixing a substance with a liquor, to do so by reference to such circumstances or other factors, or to the approval or opinion of such persons (including the authorities of another member State), as they may consider appropriate;

• (b) power to make different provision for different cases; and

• (c) power to make such supplemental, incidental, consequential and transitional provision as the Commissioners think fit;

and a statutory instrument containing any regulations under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.

• (4) Sections 13A to 16 of the Finance Act 1994 (review and appeals) shall have effect in relation to any decision which—

• (a) is made under or for the purposes of any regulations under this section, and

• (b) is a decision given to any person as to whether a manner of mixing any substance with any liquor is to be, or to continue to be, approved in his case, or as to the conditions subject to which it is so approved,

as if that decision were a decision falling within section 13A(2)(j) of that Act.

• (5) Schedule 2 to this Act (which contains amendments for or in connection with the application to all denatured alcohol of provisions of the Alcoholic Liquor Duties Act 1979 relating to methylated spirits and also makes a consequential amendment of the Finance Act 1994) shall have effect.

• (6) This section and Schedule 2 to this Act shall come into force on such day as the Commissioners may by order made by statutory instrument appoint, and different days may be appointed under this subsection for different purposes.

• (7) An order under subsection (6) above may make such transitional provisions and savings as appear to the Commissioners to be appropriate in connection with the bringing into force by such an order of any provision for any purposes.

• (8) This section shall be construed as one with the Alcoholic Liquor Duties Act 1979.

Hydrocarbon oil duties

Rates of duty

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• (1) In section 6(1) of the Hydrocarbon Oil Duties Act 1979 for “£0.3314” (duty on light oil) and “£0.2770” (duty on heavy oil) there shall be substituted “ £0.3526 ” and “ £0.3044 ” respectively.

• (2) In section 8 of that Act (duty on road fuel gas) the following subsection shall be substituted for subsections (3) to (5)—

(3) The rate of the duty under this section shall be £0.3314 a kilogram.

• (3) In section 11(1) of that Act (rebate on heavy oil) for “£0.0116” (fuel oil) and “£0.0164” (gas oil) there shall be substituted “ £0.0166 ” and “ £0.0214 ” respectively.

• (4) In section 14(1) of that Act (rebate on light oil for use as furnace fuel) for “£0.0116” there shall be substituted “ £0.0166 ”.

• (5) This section shall be deemed to have come into force at 6 o’clock in the evening of 29th November 1994.

Rates of duty: further provisions

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• (1) In section 6(1) of the Hydrocarbon Oil Duties Act 1979, as amended by section 6 above, for “£0.3526” (duty on light oil) and “£0.3044” (duty on heavy oil) there shall be substituted “ £0.3614 ” and “ £0.3132 ” respectively.

• (2) This section shall be deemed to have come into force on 1st January 1995.

Hydrocarbon oil: “road vehicle”

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• (1) In the definition of “road vehicle” in section 27(1) of the Hydrocarbon Oil Duties Act 1979 (road vehicle not to include vehicle of a kind specified in Schedule 1) for the words “of a kind specified in Schedule 1 to this Act” there shall be substituted “ which is an excepted vehicle within the meaning given by Schedule 1 to this Act. ”

• (2) The following Schedule shall be substituted for Schedule 1 to that Act—

SCHEDULE 1 (1) (1) A vehicle is an excepted vehicle while— (a) it is not used on a public road, and (b) no licence under the Vehicle Excise and Registration Act 1994 is in force in respect of it. (2) A vehicle in respect of which there is current a certificate or document in the form of a licence issued under regulations under section 22(2) of the Vehicle Excise and Registration Act 1994 shall be treated for the purposes of sub-paragraph (1) above as a vehicle in respect of which a licence under that Act is in force. (2) (1) A vehicle is an excepted vehicle if it is— (a) an agricultural tractor, or (b) an off-road tractor. (2) In sub-paragraph (1) above “agricultural tractor” means a tractor used on public roads solely for purposes relating to agriculture, horticulture, forestry or activities falling within sub-paragraph (3) below. (3) The activities falling within this sub-paragraph are— (a) cutting verges bordering public roads; (b) cutting hedges or trees bordering public roads or bordering verges which border public roads. (4) In sub-paragraph (1) above “off-road tractor” means a tractor which is not an agricultural tractor (within the meaning given by sub-paragraph (2) above) and which is— (a) designed and constructed primarily for use otherwise than on roads, and (b) incapable by reason of its construction of exceeding a speed of twenty-five miles per hour on the level under its own power. (3) (1) A vehicle is an excepted vehicle if it is a light agricultural vehicle. (2) In sub-paragraph (1) above “light agricultural vehicle” means a vehicle which— (a) has a revenue weight not exceeding 1,000 kilograms, (b) is designed and constructed so as to seat only the driver, (c) is designed and constructed primarily for use otherwise than on roads, and (d) is used solely for purposes relating to agriculture, horticulture or forestry. (3) In sub-paragraph (2)(a) above “revenue weight” has the meaning given by section 60A of the Vehicle Excise and Registration Act 1994. (4) An agricultural engine is an excepted vehicle. (5) A vehicle is an excepted vehicle if— (a) it is used only for purposes relating to agriculture, horticulture or forestry, (b) it is used on public roads only in passing between different areas of land occupied by the same person, and (c) the distance it travels on public roads in passing between any two such areas does not exceed 1.5 kilometres. (6) A mowing machine is an excepted vehicle. (7) A vehicle is an excepted vehicle when it is— (a) being used, or (b) going to or from the place where it is to be or has been used, for the purpose of clearing snow from public roads by means of a snow plough or similar device (whether or not forming part of the vehicle). (8) A vehicle is an excepted vehicle if it is constructed or adapted, and used, solely for the conveyance of machinery for spreading material on roads to deal with frost, ice or snow (with or without articles or material used for the purposes of the machinery). (9) (1) A mobile crane is an excepted vehicle. (2) In sub-paragraph (1) above “mobile crane” means a vehicle which is designed and constructed as a mobile crane and which— (a) is used on public roads only as a crane in connection with work carried on at a site in the immediate vicinity or for the purpose of proceeding to and from a place where it is to be or has been used as a crane, and (b) when so proceeding does not carry any load except such as is necessary for its propulsion or equipment. (10) (1) A digging machine is an excepted vehicle. (2) In sub-paragraph (1) above “digging machine” means a vehicle which is designed, constructed and used for the purpose of trench digging, or any kind of excavating or shovelling work, and which— (a) is used on public roads only for that purpose or for the purpose of proceeding to and from the place where it is to be or has been used for that purpose, and (b) when so proceeding does not carry any load except such as is necessary for its propulsion or equipment. (11) (1) A works truck is an excepted vehicle. (2) In sub-paragraph (1) above “works truck” means a goods vehicle which is designed for use in private premises and is used on public roads only— (a) for carrying goods between private premises and a vehicle on a road within one kilometre of those premises, (b) in passing from one part of private premises to another, (c) in passing between private premises and other private premises in a case where the premises are within one kilometre of each other, or (d) in connection with road works at the site of the works or within one kilometre of the site of the works. (3) In sub-paragraph (2) above “goods vehicle” means a vehicle constructed or adapted for use and used for the conveyance of goods or burden of any description, whether in the course of trade or not. (12) (1) A vehicle is an excepted vehicle if it is— (a) a road construction vehicle, and (b) used or kept solely for the conveyance of built-in road construction machinery (with or without articles or material used for the purposes of the machinery). (2) In sub-paragraph (1) above “road construction vehicle” means a vehicle— (a) which is constructed or adapted for use for the conveyance of built-in road construction machinery, and (b) which is not constructed or adapted for the conveyance of any other load except articles and material used for the purposes of such machinery. (3) In sub-paragraphs (1) and (2) above “built-in road construction machinery”, in relation to a vehicle, means road construction machinery built in as part of, or permanently attached to, the vehicle. (4) In sub-paragraph (3) above “road construction machinery” means a machine or device suitable for use for the construction or repair of roads and used for no purpose other than the construction or repair of roads. (13) A road roller is an excepted vehicle. (14) In this Schedule “public road” means a road which is repairable at the public expense.

• (3) This section shall come into force on 1st July 1995.

Road fuel gas: old stock

9

In section 8 of the Hydrocarbon Oil Duties Act 1979 (road fuel gas) subsection (7) (no charge on use of gas if delivered or stocked before 3rd July 1972) shall be omitted.

Tobacco products duty

Rates of duty

10

• (1) For the Table of rates of duty 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 £55.58 per thousand cigarettes.
2. Cigars	£82.56 per kilogram.
3. Hand-rolling tobacco	£85.94 per kilogram.
4. Other smoking tobacco and chewing tobacco	£36.30 per kilogram.

• (2) This section shall be deemed to have come into force at 6 o’clock in the evening of 29th November 1994.

Rates of duty: further provisions

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• (1) For the Table of rates of duty in Schedule 1 to the Tobacco Products Duty Act 1979, as substituted by section 10 above, there shall be substituted—

1. Cigarettes	An amount equal to 20 per cent. of the retail price plus £57.64 per thousand cigarettes.
2. Cigars	£85.61 per kilogram.
3. Hand-rolling tobacco	£85.94 per kilogram.
4. Other smoking tobacco and chewing tobacco	£37.64 per kilogram.

• (2) This section shall be deemed to have come into force on 1st January 1995.

Pool betting duty

Pool betting duty

12

• (1) In section 7(1) of the Betting and Gaming Duties Act 1981 (which specifies 37.50 per cent. as the rate of pool betting duty) for “37.50 per cent.” there shall be substituted “ 32.50 per cent. ”

• (2) This section shall apply in relation to any pool betting duty the requirement to pay which takes effect on or after 6th May 1995.

Gaming machine licence duty

Rates of duty

13

• (1) In the Betting and Gaming Duties Act 1981 for the Table set out at the end of section 23 (amount of duty) there shall be substituted—