Finance Act 1997

(1C) Where— (a) there is an arrangement falling within subsection (1) of section 80C above (stamp duty relief for transfers in accordance with certain arrangements for B to transfer stock to A or his nominee and for A or his nominee to transfer stock of the same kind and amount back to B or his nominee), and (b) under the arrangement stock is transferred to A or his nominee by an instrument on which stamp duty is not chargeable by virtue only of section 80C(2) above, but (c) it becomes apparent that stock of the same kind or amount will not be transferred to B or his nominee by A or his nominee in accordance with the arrangement, the instrument shall be disregarded in construing section 92(1A) and (1B) below. (1D) Where— (a) an instrument transferring stock in accordance with an arrangement is stamped under section 80C(5) above, but (b) the instrument should not have been so stamped because the arrangement fell within section 80C(4)(a) or (b) above, and (c) apart from section 80C above stamp duty would have been chargeable on the instrument, the instrument shall be deemed to be duly stamped under section 80C(5) above, but shall be disregarded in construing section 92(1A) and (1B) below.

• (5) Subsections (1) and (2) above apply to an agreement to transfer securities—

• (a) in the case of an agreement which is not conditional, if the agreement is made on or after the commencement day; and

• (b) in the case of a conditional agreement, if the condition is satisfied on or after the commencement day.

• (6) Subsection (3) above applies in relation to property consisting of chargeable securities if the securities were acquired in pursuance of an agreement to which subsections (1) and (2) above apply (by virtue of subsection (5) above).

• (7) Subsection (4) above applies to instruments executed on or after the commencement day.

• (8) For the purposes of this section the commencement day is such day as the Treasury may by order made by statutory instrument appoint.

Depositary receipts and clearance services

104

• (1) Subsection (5) of section 93 of the Finance Act 1986 (depositary receipts: reduced rate of tax for qualified dealers other than market makers) shall be omitted.

• (2) Accordingly—

• (a) in subsection (4) of that section for “(5) to” there shall be substituted “ (6) and ”;

• (b) in subsection (7)(a) of that section for “subsections (4) to” there shall be substituted “ subsections (4) and ”;

• (c) subsections (5) to (7) of section 94 of that Act (definition of “qualified dealer” and “market maker” for the purposes of section 93(5) and power to substitute different definition) shall be omitted.

• (3) Subsection (3) of section 96 of the Finance Act 1986 (clearance services: reduced rate of tax for qualified dealers other than market makers) shall be omitted.

• (4) Accordingly—

• (a) in subsection (2) of that section, for “(3) to” there shall be substituted “ (4) and ”;

• (b) in subsection (5)(a) of that section for “subsections (2) to” there shall be substituted “ subsections (2) and ”;

• (c) subsection (11) of that section (definition of “qualified dealer” and “market maker” for the purposes of that section) shall be omitted.

• (5) This section applies where securities are transferred on or after the day which is the commencement day for the purposes of section 102 above, unless the securities were acquired by the transferor before that day.

Inland bearer instruments

105

• (1) Paragraph (b) of section 90(3) of the Finance Act 1986 (which provides that section 87 shall not apply as regards an agreement to transfer securities constituted by or transferable by means of an inland bearer instrument which does not fall within exemption 3 in the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891) shall cease to have effect.

• (2) After section 90(3) of that Act there shall be inserted—

(3A) Section 87 above shall not apply as regards an agreement to transfer chargeable securities constituted by or transferable by means of an inland bearer instrument within the meaning of the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891 unless subsection (3B), (3C) or (3E) below applies to the instrument. (3B) This subsection applies to any instrument which falls within exemption 3 in the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891 (renounceable letter of allotment etc. where rights are renounceable not later than six months after issue). (3C) This subsection applies to an instrument if— (a) the instrument was issued by a body corporate incorporated in the United Kingdom; (b) stamp duty under the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891 was not chargeable on the issue of the instrument by virtue only of— (i) section 30 of the Finance Act 1967 (exemption for bearer instruments relating to stock in foreign currencies); or (ii) section 7 of the Finance Act (Northern Ireland) 1967 (which makes similar provision for Northern Ireland); and (c) the instrument is not exempt. (3D) An instrument is exempt for the purposes of subsection (3C) above if— (a) the chargeable securities in question are, or a depositary receipt for them is, listed on a recognised stock exchange; and (b) the agreement to transfer those securities is not made in contemplation of, or as part of an arrangement for, a takeover of the body corporate which issued the instrument. (3E) This subsection applies to an instrument if— (a) the instrument was issued by a body corporate incorporated in the United Kingdom; (b) stamp duty under the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891 was not chargeable on the issue of the instrument— (i) by virtue only of subsection (2) of section 79 above (exemption for bearer instruments relating to loan capital); or (ii) by virtue only of that subsection and one or other of the provisions mentioned in subsection (3C)(b)(i) and (ii) above; (c) by virtue of section 79(5) (convertible loan capital) or 79(6) (loan capital carrying special rights) above, stamp duty would be chargeable on an instrument transferring the loan capital to which the instrument relates; and (d) the instrument is not exempt. (3F) An instrument is exempt for the purposes of subsection (3E) above if— (a) the chargeable securities in question are, or a depositary receipt for them is, listed on a recognised stock exchange; (b) the agreement to transfer those securities is not made in contemplation of, or as part of an arrangement for, a takeover of the body corporate which issued the instrument; and (c) those securities do not carry any right of the kind described in section 79(5) above (right of conversion into, or acquisition of, shares or other securities) by the exercise of which securities which are not listed on a recognised stock exchange may be obtained.

• (3) At the end of that section there shall be added—

(8) For the purposes of subsections (3D) and (3F) above— (a) references to a depositary receipt for chargeable securities shall be construed in accordance with section 94(1) below; (b) “recognised stock exchange” has same meaning as it has in the Tax Acts by virtue of section 841 of the Income and Corporation Taxes Act 1988; (c) there is a takeover of a body corporate if a person, on his own or together with connected persons, loses or acquires control of it. (9) For the purposes of subsection (8) above— (a) any question whether a person is connected with another shall be determined in accordance with section 286 of the Taxation of Chargeable Gains Act 1992; (b) “control” shall be construed in accordance with section 416 of the Income and Corporation Taxes Act 1988.

• (4) This section applies to an agreement if the inland bearer instrument in question was issued on or after 26th November 1996 and—

• (a) in the case of an agreement which is not conditional, the agreement is made on or after 26th November 1996; or

• (b) in the case of a conditional agreement, the condition is satisfied on or after 26th November 1996.

Repayment or cancellation of tax

106

• (1) Section 87 of the Finance Act 1986 (the principal charge) shall be amended in accordance with subsections (2) and (3) below.

• (2) For subsection (7A) (deemed separate agreements where there would be no charge to tax etc had there been such agreements) there shall be substituted—

(7A) Where— (a) there would be no charge to tax under this section, or (b) there would, under section 92 below, be a repayment or cancellation of tax, in relation to some of the chargeable securities to which the agreement between A and B relates if separate agreements had been made between them for the transfer of those securities and for the transfer of the remainder, this section and sections 88(5) and 92 below shall have effect as if such separate agreements had been made.

• (3) Subsection (7B) (which, in consequence of the repeals made by section 188(1) of the Finance Act 1996, is of no further utility in relation to the charge to tax but whose effect is reproduced by subsection (8) below for the purposes of repayment or cancellation of tax) shall cease to have effect.

• (4) Section 88 of the Finance Act 1986 (special cases) shall be amended in accordance with subsections (5) to (7) below.

• (5) In subsection (1B) (certain instruments on which stamp duty is not chargeable to be disregarded in construing the conditions in section 92(1A) and (1B) for repayment or cancellation of tax)—

• (a) in paragraph (a) (the property transferred by the instrument consists of chargeable securities) after “consists of” there shall be inserted “ or includes ”;

• (b) in paragraph (b) (which relates to the acquisition of the chargeable securities so transferred) for “the chargeable securities” there shall be substituted “ any of those chargeable securities ”; and

• (c) the word “or” at the end of sub-paragraph (ii) of that paragraph shall be omitted and after that sub-paragraph there shall be inserted—

(iia) in pursuance of an agreement to transfer securities which was made for the purpose of performing the obligation to transfer chargeable securities described in paragraph (a) of subsection (1) of section 89B below and as regards which section 87 above did not apply by virtue of that subsection; or

.

• (6) For subsections (4) and (5) (identification of the securities in question and reduction of the charge in certain cases) there shall be substituted—

(4) If chargeable securities cannot (apart from this subsection) be identified for the purposes of subsection (1B) above, securities shall be taken as follows, that is to say, securities of the same kind acquired later in the period of two years there mentioned (and not taken for the purposes of that subsection in relation to an earlier instrument) shall be taken before securities acquired earlier in that period. (5) If, in the case of an agreement (or of two or more agreements between the same parties) to transfer chargeable securities— (a) the conditions in section 92(1A) and (1B) below are not satisfied by virtue only of the application of subsection (1B) above in relation to the instrument (or any one or more of the two or more instruments) in question, but (b) not all of the chargeable securities falling to be regarded for the purposes of that subsection as transferred by the instrument (or by the two or more instruments between them) were acquired as mentioned in paragraphs (a) and (b) of that subsection, stamp duty reserve tax shall be repaid or cancelled under section 92 below in accordance with subsection (5A) below. (5A) Any repayment or cancellation of tax falling to be made by virtue of subsection (5) above shall be determined as if (without prejudice to section 87(7A) above) there had, instead of the agreement (or the two or more agreements) in question been— (a) a separate agreement (or two or more separate agreements) relating to such of the securities as were acquired as mentioned in paragraphs (a) and (b) of subsection (1B) above, and (b) a single separate agreement relating to such of the securities as do not fall within those paragraphs, and as if the instrument in question (or the two or more instruments in question between them) had related only to such of the securities as do not fall within those paragraphs.

• (7) For the sidenote, there shall be substituted “ Special cases. ”

• (8) In section 92 of the Finance Act 1986 (repayment or cancellation of tax), after subsection (6) there shall be inserted—

(7) This section shall have effect in relation to a person to whom the chargeable securities are transferred by way of security for a loan to B as it has effect in relation to a nominee of B.

• (9) The amendments made by subsections (2), (3) and (8) above have effect in relation to an agreement to transfer securities if—

• (a) the agreement is conditional and the condition is satisfied on or after 4th January 1997; or

• (b) the agreement is not conditional and is made on or after that date.

• (10) The amendments made by subsections (5) and (6) above have effect where the instrument on which stamp duty is not chargeable by virtue of section 42 of the Finance Act 1930 or section 11 of the Finance Act (Northern Ireland) 1954 is executed on or after 4th January 1997 in pursuance of an agreement to transfer securities made on or after that date.

Part VIII — Miscellaneous and Supplemental

Miscellaneous

Petroleum revenue tax: non-field expenditure

107

• (1) Section 113 of the Finance Act 1984 (restrictions on relief by reference to a qualifying date) shall be amended as follows.

• (2) In subsection (4) (meaning of “qualifying date”), after “means” there shall be inserted “ (subject to subsection (6) below) ”.

• (3) In subsection (6) (old participator’s qualifying date to be taken into account, in the case of a transfer, in determining as respects certain expenditure the date that is to be regarded as the new participator’s qualifying date), for the words from “is an applicable date” onwards there shall be substituted “ , rather than the date given by subsection (4) above, shall be taken to be the qualifying date in relation to the new participator. ”

• (4) This section has effect in relation to any expenditure in respect of which a claim is made on or after 23rd July 1996.

Payment of dividends on government stock

108

• (1) For section 2 of the National Debt (Stockholders Relief) Act 1892 (date for striking balance for a dividend on government stock) there shall be substituted the following section—

(2) (1) Any person who, at the time of the balance being struck for a dividend on stock, is inscribed as a stockholder shall, as between himself and any transferee of the stock, be entitled to the then current half-year’s or quarter’s dividend. (2) Subject to subsections (3) and (4) below, the Bank may— (a) strike the balance for a dividend on stock before the day on which the dividend is payable, and (b) strike the balances for dividends on stock at times such that the interval between— (i) the time at which the balance for a dividend is struck, and (ii) the day on which the dividend is payable, is different in different cases. (3) The balance for a dividend on any stock shall not be struck at different times for different holdings of that stock unless— (a) the case is one where the use of different times for different holdings of the same stock is authorised by order made by the Treasury; and (b) such requirements (if any) as may be imposed by an order so made are complied with in relation to the striking of that balance. (4) The time at which the balance for a dividend on any stock is struck shall not fall before— (a) the beginning of the tenth business day before the day on which the dividend is payable; or (b) such later time (if any) as may be determined, in accordance with an order made by the Treasury, to be the earliest time at which that balance may be struck. (5) In this section “business day” means any day other than— (a) a Saturday or Sunday; (b) Good Friday or Christmas Day; (c) a day which, in any part of the United Kingdom, is a bank holiday under the Banking and Financial Dealings Act 1971; (d) a day specified in an order under section 2(1) of that Act (days on which financial dealings are suspended) and declared by that order to be a non-business day for the purposes of this section; or (e) a day appointed by Royal proclamation as a public fast or thanksgiving day. (6) An order made by the Treasury for the purposes of subsection (3) or (4) above— (a) shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament; and (b) may make different provision for different cases and contain such exceptions and exclusions, and such incidental, supplemental, consequential and transitional provision, as the Treasury may think fit.

• (2) This section has effect in relation to dividends other than those for which the balance is struck on or before the day on which this Act is passed.

Nil levy on dwelling-house disposals

109

Section 136 of the Leasehold Reform, Housing and Urban Development Act 1993 (levy on local authorities in respect of dwelling-house disposals) shall have effect, and be deemed always to have had effect, with the following subsection inserted after subsection (4)—

(4A) The power of the Secretary of State to determine a formula for the purposes of item D in subsection (3) shall include power to determine that, in such cases as he may determine, item D is to be taken to be equal to item CR.

Obtaining information from social security authorities

110

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

Report on VAT on energy saving materials

111

Supplemental

Interpretation

112

In this Act “the Taxes Act 1988” means the Income and Corporation Taxes Act 1988.

Repeals

113

• (1) The enactments mentioned in Schedule 18 to this Act (which include spent provisions) are hereby repealed to the extent specified in the third column of that Schedule.

• (2) The repeals specified in that Schedule have effect subject to the commencement provisions and savings contained or referred to in the notes set out in that Schedule.

Short title

114

This Act may be cited as the Finance Act 1997.

SCHEDULE 1

Part I — The gaming duty register

The Register

1

The Commissioners shall establish and maintain a register of persons involved in the provision of dutiable gaming.

Interpretation

2

• (1) In this Part of this Schedule—

• “casino premises licence” has the same meaning as in Part 8 of the Gambling Act 2005 (see section 150(1)(a));

• “club gaming permit” has the same meaning as in that Act (see section 271);

• “the register” means the gaming duty register;

• “registered person” means a person registered on the register; and

• “registrable person” has the meaning given by paragraph 3 below.

• (2) For the purposes of this Part of this Schedule premises in the United Kingdom are “unlicensed premises” unless they are premises in Great Britain—

• (a) in respect of which a casino premises licence is for the time being in force, or

• (b) in respect of which a club gaming permit is for the time being in force.

• (3) References in this Part of this Schedule to being a member of a group and to being the representative member of a group shall be construed in accordance with paragraph 8 below.

Registration

3

• (1) The Commissioners shall, on receipt of a valid application made by—

• (a) a registrable person, or

• (b) a person who expects dutiable gaming to take place and to become a registrable person if it does,

add that person to the register.

• (2) The following provisions of this paragraph have effect for the interpretation of sub-paragraph (1) above.

• (3) A valid application is one which is made in such form and manner, and is accompanied by such information, as the Commissioners may require.

• (4) Subject to sub-paragraph (5) below—

• (a) the holder of a casino premises licence or club gaming permit is a registrable person if and for so long as dutiable gaming takes place on the premises in respect of which the licence or permit is for the time being in force;

• (b) a provider of unlicensed premises is a registrable person if and for so long as dutiable gaming takes place on those premises;

• (c) a person is a registrable person if and for so long as he is concerned in the organisation or management of dutiable gaming that takes place on unlicensed premises.

• (5) A body corporate cannot be a registrable person if it—

• (a) is a member of a group, but

• (b) is not the representative member of that group.

• (6) A body corporate which—

• (a) is the representative member of a group, and

• (b) is not a registrable person in its own right,

is a registrable person if another body corporate which is a member of that group would be a registrable person but for sub-paragraph (5) above.

Cancellation of registration

4

• (1) This paragraph has effect for determining when a registered person is to be removed by the Commissioners from the register.

• (2) Where the Commissioners receive a valid notice from a registered person stating that he has ceased to be a registrable person, he shall be removed from the register.

• (3) Where the Commissioners receive a valid notice from a registered person stating that he will, from a time specified in the notice, cease to be a registrable person, he shall be removed from the register with effect from that time.

• (4) Where—

• (a) a registered person has been added to the register on an application made under paragraph 3(1)(b) above, and

• (b) the Commissioners receive a valid notice from him stating—

• (i) that the dutiable gaming which he expected to take place has not taken place, and

• (ii) that he no longer expects it to take place,

he shall be removed from the register.

• (5) Where it appears to the Commissioners that a registered person has ceased to be a registrable person, he shall be removed from the register.

• (6) A registered person shall be removed from the register if—

• (a) he has been added to the register on an application made under paragraph 3(1)(b) above, and

• (b) it appears to the Commissioners that the dutiable gaming which he expected to take place has not taken place and can no longer be expected to take place.

• (7) For the purposes of this paragraph, a valid notice is one which is given in such form and manner, and accompanied by such information, as the Commissioners may require.

Penalties in connection with registration

5

• (1) There is a contravention of this sub-paragraph by every person who is a responsible person in relation to any premises if—

• (a) dutiable gaming takes place on those premises on or after 1st October 1997; and

• (b) at the time when the gaming takes place, no person by whom those premises are notifiable is registered on the register.

• (2) For the purposes of this paragraph, a person is a responsible person in relation to any premises if—

• (a) he is a registrable person; and

• (b) those premises are notifiable by him.

• (3) Where a person contravenes sub-paragraph (1) above, that contravention shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) and shall also attract daily penalties.

• (4) References in this paragraph to premises being notifiable are references to them being notifiable for the purposes of paragraph 6 below.

Notification of premises

6

• (1) This paragraph has effect for determining the premises to be specified in a registered person’s entry on the register.

• (2) A person who makes an application under paragraph 3(1) above shall, on making that application, notify the Commissioners of all the premises which—

• (a) are notifiable by him, or

• (b) in a case where his application is made under paragraph 3(1)(b), will become notifiable by him if the expected gaming takes place;

and the Commissioners shall, on registering him on the register, cause those premises to be specified in his entry on the register.

• (3) Where any premises not currently notified by a registered person become notifiable by him—

• (a) he shall notify the Commissioners of those premises, and

• (b) the Commissioners shall cause those premises to be specified in his entry on the register.

• (4) Subject to sub-paragraph (5) below, where any premises currently notified by a registered person cease to be notifiable by him—

• (a) he shall notify the Commissioners of that fact, and

• (b) they shall cause those premises to be no longer specified in his entry on the register.

• (5) A registered person is not required to notify the Commissioners as mentioned in sub-paragraph (4) above in a case where—

• (a) he gives notice to the Commissioners under paragraph 4(2) above; or

• (b) the premises ceasing to be notifiable by him so cease in accordance with a notification previously given by him to the Commissioners under sub-paragraph (6) below.

• (6) Where—

• (a) any premises are currently notified by a registered person, and

• (b) he notifies the Commissioners of the date on which those premises will cease to be notifiable by him,

the Commissioners shall ensure that those premises cease, with effect from that date, to be specified in his entry on the register.

• (7) Subject to sub-paragraph (8) below, where—

• (a) any premises are currently notified by a registered person,

• (b) that person has been added to the register on an application made under paragraph 3(1)(b) above,

• (c) any of the dutiable gaming which he expected to take place has not taken place,

• (d) he no longer expects that gaming to take place, and

• (e) in consequence of events turning out as mentioned in paragraphs (c) and (d) above, those premises have not and will not become notifiable by him,

he shall notify the Commissioners accordingly and they shall cause those premises to be no longer specified in his entry on the register.

• (8) A registered person is not required to notify the Commissioners as mentioned in sub-paragraph (7) above in a case where he gives notice to the Commissioners under paragraph 4(4) above.

• (9) For the purposes of this paragraph premises are currently notified by any person at any time if at that time they are specified in his entry on the register.

• (10) For the purposes of this paragraph, in the case of a person who is not a body corporate, or who is a body corporate that is not a member of any group—

• (a) premises in respect of which a casino premises licence or club gaming permit is for the time being in force are notifiable by him if and for so long as—

• (i) he is the holder of the licence or permit, and

• (ii) dutiable gaming takes place on those premises;

• (b) unlicensed premises of which he is a provider are notifiable by him if and for so long as dutiable gaming takes place on those premises; and

• (c) any unlicensed premises of which he is not a provider are notifiable by him if and for so long as—

• (i) dutiable gaming takes place on those premises, and

• (ii) he is concerned in the organisation or management of that gaming.

• (11) For the purposes of this paragraph, in the case of a body corporate which is the representative member of a group—

• (a) premises in respect of which a casino premises licence or club gaming permit is for the time being in force are notifiable by the representative member if and for so long as—

• (i) it, or another body corporate which is a member of that group, is the holder of the licence or permit, and

• (ii) dutiable gaming takes place on those premises;

• (b) unlicensed premises of which the representative member or any such other body corporate is a provider are notifiable by the representative member if and for so long as dutiable gaming takes place on those premises; and

• (c) unlicensed premises which are not notifiable by the representative member by virtue of paragraph (b) above are notifiable by it if and for so long as—

• (i) dutiable gaming takes place on those premises, and

• (ii) it or any such other body corporate is concerned in the organisation or management of that gaming.

Penalties in connection with notification

7

• (1) Where, in contravention of paragraph 6(2) above, a person fails to notify the Commissioners of any premises, that failure shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

• (2) Where—

• (a) by virtue of paragraph 6(3), (4) or (7) above, a person at any time becomes subject to a requirement to notify the Commissioners of any premises or fact, and

• (b) he fails to comply with that requirement before the end of the period of seven days beginning with the day on which that time falls,

that failure shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) and shall also attract daily penalties for every day after the end of that period on which the failure to notify continues.

Groups

8

• (1) Two or more bodies corporate are eligible to be treated as members of a group for the purposes of this Part of this Schedule if each is resident or has an established place of business in the United Kingdom and—

• (a) one of them controls each of the others;

• (b) one person (whether a body corporate or an individual) controls all of them; or

• (c) two or more individuals carrying on a business in partnership control all of them.

• (2) Subject to sub-paragraph (3) below, where an application for the purpose is made to the Commissioners with respect to two or more bodies corporate eligible to be treated as members of a group, then, from such date as may be specified in the application—

• (a) they shall be so treated for the purposes of this Part of this Schedule; and

• (b) such one of them as may be specified in the application shall be the representative member for those purposes.

• (3) The Commissioners may refuse an application under sub-paragraph (2) above if, and only if, it appears to them necessary to do so for the protection of the revenue from gaming duty.

• (4) Where any bodies corporate are treated as members of a group for the purposes of this Part of this Schedule and an application for the purpose is made to the Commissioners, then, from such time as may be specified in the application—

• (a) a further body eligible to be so treated shall be included among the bodies so treated; or

• (b) a body corporate shall be excluded from the bodies so treated; or

• (c) another member of the group shall be substituted as the representative member; or

• (d) the bodies corporate shall no longer be treated as members of a group.

• (5) If it appears to the Commissioners necessary to do so for the protection of the revenue from gaming duty, they may—

• (a) refuse any application made for the purpose mentioned in paragraph (a) or (c) of sub-paragraph (4) above; or

• (b) refuse any application made for the purpose mentioned in paragraph (b) or (d) of that sub-paragraph in a case that does not appear to them to fall within sub-paragraph (6)(a) and (b) below.

• (6) Where—

• (a) a body corporate is treated as a member of a group for the purposes of this Part of this Schedule by virtue of being controlled by any person, and

• (b) it appears to the Commissioners that it has ceased to be so controlled,

they shall, by notice given to that person, terminate that treatment from such date as may be specified in the notice.

• (7) Where—

• (a) a notice under sub-paragraph (6) above is given to a body corporate which is the representative member of a group,

• (b) there are two or more other bodies corporate who will continue to be treated as members of the group after the time when that notice takes effect, and

• (c) none of those bodies corporate is substituted from that time, or from before that time, as the representative member of the group in pursuance of an application under sub-paragraph (4)(c) above,

the Commissioners shall, by notice given to such one of the bodies corporate mentioned in paragraph (b) above as they think fit, substitute that body corporate as the representative member as from that time.

• (8) Where a notice under sub-paragraph (6) above is given to one member of a group of which there is only one other member, then (subject to any further application under this paragraph) the other member shall also cease, from the time specified in the notice, to be treated for the purposes of this Part of this Schedule as a member of the group.

• (9) An application under this paragraph with respect to any bodies corporate—

• (a) must be made by one of those bodies or by the person controlling them; and

• (b) must be made not less than 90 days before the date from which it is to take effect, or at such later time as the Commissioners may allow.

• (10) For the purposes of this paragraph a body corporate shall be taken to control another body corporate if—

• (a) it is empowered by statute to control that body’s activities; or

• (b) it is that body’s holding company within the meaning of section 1159 of and Schedule 6 to the Companies Act 2006;

and an individual or individuals shall be taken to control a body corporate if (were he or they a company) he or they would be that body’s holding company within the meaning of that Act.

• (11) Sections 13A to 16 of the Finance Act 1994 (review and appeals) shall have effect in relation to any refusal by the Commissioners of an application under sub-paragraph (2) or (4) above as if that refusal were a decision of a description falling within section 13(A)(2)(j) of that Act.

Part II — Other provisions

Accounting periods

9

• (1) Where the Commissioners and every relevant person so agree, the gaming duty provisions of this Act shall have effect in relation to any premises as if accounting periods for the purposes of those provisions were the periods specified in the agreement, which may be—

• (a) periods of six months (beginning on any date);

• (b) periods (beginning on any date) which are longer or shorter than six months, but which must be the approximate equivalent of periods of six months in weeks.

• (1A) If the Commissioners have reason to believe that the liability in relation to any premises may not be discharged as it falls due from time to time, the Commissioners may direct that periods shorter than six months are to be treated as accounting periods for the purposes of the gaming duty provisions of this Act.

• (1B) The Commissioners may direct in relation to any premises that periods beginning on dates other than 1st April and 1st October are to be treated as accounting periods for the purposes of the gaming duty provisions of this Act.

• (1C) The Commissioners may by direction or by agreement with every relevant person make transitional arrangements in relation to any premises for periods (whether of six months or otherwise) to be treated as accounting periods for the purposes of the gaming duty provisions of this Act where—

• (a) those premises cease to be specified in an entry on the gaming register for any person, or

• (b) an agreement under sub-paragraph (1) or a direction under sub-paragraph (1A) or (1B) begins or ceases to have effect.

• (1D) The Commissioners must not enter into an agreement under sub-paragraph (1) or give a direction under sub-paragraph (1B) unless they are satisfied that any transitional arrangements which are appropriate for the protection of the revenue have been agreed or directed.

• (1E) Any direction under this paragraph continues to have effect until it is withdrawn by the Commissioners (unless otherwise specified in the direction).

• (1F) Withdrawal of a direction under this paragraph in relation to any premises does not prevent the giving of further directions in relation to those premises.

• (2) For the purposes of this paragraph, a person is a relevant person in relation to any premises if—

• (a) he is registered on the gaming duty register, and

• (b) the entry relating to him on the register specifies those premises.

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

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

• (5) The decisions mentioned in sub-paragraph (6) are to be treated as if they were listed in subsection (2) of section 13A of FA 1994 (customs and excise reviews and appeals: meaning of “relevant decision”) and accordingly are to be treated—

• (a) as if they were relevant decisions for the purposes mentioned in subsection (1) of that section, and

• (b) as if they were ancillary matters for the purposes of section 16 FA 1994 (appeals to a tribunal).

• (6) The decisions are—

• (a) a decision of the Commissioners to refuse a request for an agreement under sub-paragraph (1) or (1C), or to refuse a request for such an agreement on particular terms,

• (b) a decision of the Commissioners to give a direction under sub-paragraph (1A), (1B) or (1C), or to give such a direction in particular terms, or

• (c) a decision of the Commissioners not to give a direction under sub-paragraph (1A), (1B) or (1C).

Directions as to the making of returns

10

• (1) The Commissioners may give directions as to the making of returns in connection with gaming duty by—

• (a) persons registered on the gaming duty register;

• (b) persons liable to pay any gaming duty.

• (2) Directions under this paragraph may, in particular, make provision as to—

• (a) when any returns are to be made;

• (b) the persons by whom any returns are to be made;

• (c) the form in which any returns are to be made;

• (d) the information to be given in any returns;

• (e) the declarations to be contained in returns and the manner in which returns are to be authenticated;

• (f) returns being treated as not made until received by the Commissioners;

• (g) the places to which returns are to be made.

• (3) Where a person fails to comply with any provision of a direction given under this paragraph, that failure shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) and shall also attract daily penalties.

Regulations

11

• (1) The Commissioners may make regulations providing for any matter for which provision appears to them to be necessary or expedient for the administration or enforcement of gaming duty, or for the protection of the revenue from that duty.

• (2) Regulations under this paragraph may, in particular, include provision as to the giving and operation of directions under section 11(6) of this Act or paragraph 9 of this Schedule.

• (3) Where any person contravenes or fails to comply with any of the provisions of any regulations under this paragraph, his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).

Offences

12

• (1) Any person who obstructs any officer in the exercise of his functions in relation to gaming duty shall be guilty of an offence and liable, on summary conviction, to a penalty of level 5 on the standard scale.

• (2) Any person who—

• (a) in connection with gaming duty, makes any statement which he knows to be false in a material particular or recklessly makes any statement which is false in a material particular,

• (b) in that connection, with intent to deceive, produces or makes use of any book, account, record, return or other document which is false in a material particular, or

• (c) is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion (by him or any other person) of any gaming duty or of any obligation to make a payment on account of gaming duty,

shall be guilty of an offence.

• (3) A person guilty of an offence under sub-paragraph (2) above shall be liable—

• (a) on summary conviction, to a penalty of—

• (i) £20,000, or

• (ii) if greater, three times the duty or other amount which is unpaid or the payment of which is sought to be avoided,

or to imprisonment for a term not exceeding six months, or to both;

• (b) on conviction on indictment, to a penalty of any amount, or to imprisonment for a term not exceeding—

• (i) two years in the case of an offence by virtue of sub-paragraph (2)(a) above, and

• (ii) 14 years in any other case,

or to both.

• (4) Section 27 of the Betting and Gaming Duties Act 1981 (offences by bodies corporate) shall have effect for the purposes of any offence under this paragraph as it has effect for the purposes of the offence mentioned in that section.

• (5) Where a person has committed an offence under sub-paragraph (2) above, all designated items related to the relevant gaming shall be liable to forfeiture if—

• (a) at the time the offence was committed that person was not registered on the gaming duty register; and

• (b) the relevant gaming did not take place on premises which, at the time the offence was committed, were specified in any person’s entry on that register.

• (6) In sub-paragraph (5) above, “the relevant gaming” means—

• (a) in relation to an offence under sub-paragraph (2)(a) or (b) above, any gaming to which the false statement or (as the case may be) the false document related; and

• (b) in relation to an offence under sub-paragraph (2)(c) above, any gaming on the premises the gaming duty on which was, or was sought to be, fraudulently evaded.

• (7) For the purposes of sub-paragraph (5) above, the designated items related to any gaming are—

• (a) any furniture, machines and other articles and equipment which—

• (i) are on the premises where the gaming takes place; and

• (ii) have been or are being, or are capable of being, used for or in connection with gaming;

and

• (b) any cash and gaming chips in the custody or under the control of any person who—

• (i) is a provider of the premises on which the gaming takes place, or

• (ii) is in any way concerned with the organisation or management of the gaming.

• (8) For the purposes of sub-paragraph (7)(b) above the cash and gaming chips taken to be under the control of a person who is the provider of any premises or is concerned with the organisation or management of gaming on any premises shall include all cash and gaming chips in play or left on a gaming table on those premises.

Distress and poinding

13

• (1) Sections 28 and 29 of the Betting and Gaming Duties Act 1981 (recovery of duty) shall have effect as follows so as to apply in relation to gaming duty as they applied in relation to the duty on gaming licences—

• (a) in subsection (1) of each section, for “or 14 above or of Schedule 2 to this Act” there shall be substituted “ above or sections 10 to 15 of, and Schedule 1 to, the Finance Act 1997 ”; and

• (b) in subsections (2) and (3) of each section, for the words “the duty on a gaming licence” there shall be substituted—

• (i) in the first place where they occur in subsection (2), the words “ the gaming duty ”; and

• (ii) in the other places where they occur, the words “ gaming duty ”.

• (2) Sub-paragraph (1) above shall cease to have effect on such day as the Commissioners may by order made by statutory instrument appoint, and different days may be appointed under this sub-paragraph for different purposes.

Disclosure of information

14

• (1) No obligation as to secrecy or other restriction on the disclosure of information imposed by statute or otherwise shall prevent—

• (a) the Commissioners or an authorised officer of the Commissioners from disclosing to the Gambling Commission or to an authorised officer of that Commission, or

• (b) that Commission or an authorised officer of that Commission from disclosing to the Commissioners or an authorised officer of the Commissioners,

information for the purpose of assisting the Commissioners in the carrying out of their functions with respect to gaming duty or, as the case may be, that Commission in the carrying out of that Commission's functions under the Gambling Act 2005 .

• (2) Information obtained by virtue of a disclosure authorised by this paragraph shall not be disclosed except—

• (a) to the Commissioners or the Gambling Commission or to an authorised officer of the Commissioners or that Commission; or

• (b) for the purposes of any proceedings connected with a matter in relation to which the Commissioners or that Commission carry out the functions mentioned in sub-paragraph (1) above.

Evidence by certificate

15

Section 29A of the Betting and Gaming Duties Act 1981 (evidence by certificate) shall apply for the purposes of sections 10 to 15 of this Act and this Schedule as it applies for the purposes of that Act.

Protection of officers

16

Section 31 of the Betting and Gaming Duties Act 1981 (protection of officers) shall apply for the purposes of gaming duty as it applies for the purposes of bingo duty .

SCHEDULE 2

Part I — Amendments of the Customs and Excise Management Act 1979

Introductory

1

The Customs and Excise Management Act 1979 shall be amended in accordance with the provisions of this Part of this Schedule.

Meaning of “revenue trade provisions” and “revenue trader”

2

• (1) This paragraph amends section 1(1) (interpretation).

• (2) In the definition of “the revenue trade provisions of the customs and excise Acts”, after paragraph (d) there shall be inserted the following paragraph—

1. the provisions of sections 10 to 15 of, and Schedule 1 to, the Finance Act 1997;

.

• (3) In paragraph (a) of the definition of “revenue trader”, after sub-paragraph (ia) there shall be inserted the following sub-paragraphs—

1. being (within the meaning of sections 10 to 15 of the Finance Act 1997) the provider of any premises for gaming;
2. the organisation, management or promotion of any gaming (within the meaning of the Gaming Act 1968 or the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985); or

.

• (4) In sub-paragraph (ii) of that paragraph, for “or (ia)” there shall be substituted “ , (ia), (ib) or (ic) ”.

Amendments of Part IXA

3

In section 118B (furnishing of information etc. by revenue traders)—

• (a) in subsection (1)(a), after sub-paragraph (ii) there shall be inserted

or (iii) any transaction or activity effected or taking place in the course or furtherance of a business,

;

• (b) in subsection (1)(b), at the end there shall be inserted “ or to the transaction or activity ”; and

• (c) in subsection (3), after “any business” there shall be inserted “ , or to any transaction or activity effected or taking place in the course or furtherance of any business, ”.

4

• (1) This paragraph amends section 118C (powers of entry and search).

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

(2A) Where an officer has reasonable cause to believe that any premises are premises where gaming to which section 10 of the Finance Act 1997 (gaming duty) applies is taking place, has taken place or is about to take place, he may at any reasonable time enter and inspect those premises and inspect any relevant materials found on them. (2B) In subsection (2A) above “relevant materials” means— (a) any accounts, records or other documents found on the premises in the custody or control of any person who is engaging, or whom the officer reasonably suspects of engaging— (i) in any such gaming, or (ii) in any activity by reason of which he is or may become liable to gaming duty, and (b) any equipment which is being, or which the officer reasonably suspects of having been or of being intended to be, used on the premises for or in connection with any such gaming.

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

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

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

Part II — Other amendments

Licences under the Gaming Act 1968

5

• (1) Schedule 2 to the Gaming Act 1968 (grant etc. of licences) shall be amended in accordance with the provisions of this paragraph.

• (2) In paragraph 20(1) (grounds for refusing to grant or renew a licence), after paragraph (f) there shall be inserted the following paragraph—

(g) that any gaming duty charged on the premises remains unpaid.

• (3) In paragraph 48(1) (cancellation of licence on conviction for second or subsequent offence), after “the enactments consolidated by that Act)” there shall be inserted “ or of an offence under paragraph 12 of Schedule 1 to the Finance Act 1997 ”.

• (4) In paragraph 60(c) (transfer of licence may be refused if duty unpaid), after “bingo duty” there shall be inserted “ or gaming duty ”.

Preferential debts on insolvency

6

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

Assessments to duty

7

In section 12(2)(c) of the Finance Act 1994 (duty may be assessed upon the occurrence of certain defaults in connection with betting duties and bingo duty), after “under Schedule 1 or 3 to the Betting and Gaming Duties Act 1981” there shall be inserted “ or Schedule 1 to the Finance Act 1997 ”.

SCHEDULE 3

Interpretation

1

In this Schedule “the 1994 Act” means the Vehicle Excise and Registration Act 1994.

Registration of vehicle on issue of nil licence

2

In section 21 of the 1994 Act (registration of vehicles), for subsection (1) there shall be substituted the following subsection—

(1) Subject to subsection (3), on the issue by the Secretary of State for a vehicle which is not registered under this section of either— (a) a vehicle licence, or (b) a nil licence, the Secretary of State shall register the vehicle in such manner as he thinks fit without any further application by the person to whom the licence is issued.

Return of nil licence

3

In section 22 of the 1994 Act (registration regulations), after subsection (3) there shall be inserted the following subsection—

(4) Regulations made by the Secretary of State may make provision for the return of any nil licence to the Secretary of State in such circumstances as may be prescribed by the regulations.

Offence of not exhibiting nil licence

4

• (1) In section 33 of the 1994 Act (not exhibiting licence), after subsection (1) there shall be inserted the following subsection—

(1A) A person is guilty of an offence if— (a) he uses, or keeps, on a public road an exempt vehicle, (b) that vehicle is one in respect of which regulations under this Act require a nil licence to be in force, and (c) there is not fixed to and exhibited on the vehicle in the manner prescribed by regulations made by the Secretary of State a nil licence for that vehicle which is for the time being in force.

• (2) In subsection (2) of that section, after “(1)” there shall be inserted “ or (1A) ”.

• (3) For subsection (3) of that section there shall be substituted the following subsection—

(3) Subsections (1) and (1A)— (a) have effect subject to the provisions of regulations made by the Secretary of State, and (b) are without prejudice to sections 29 and 43A.

• (4) In subsection (4) of that section, for “in respect of which excise duty is chargeable” there shall be substituted “ which is kept or used on a public road ”.

• (5) After that subsection there shall be inserted the following subsection—

(5) The reference to a licence in subsection (4) includes a reference to a nil licence.

Offence of failing to have nil licence for exempt vehicle

5

Immediately before section 44 of the 1994 Act there shall be inserted the following section—

(43A) (1) A person is guilty of an offence if— (a) he uses, or keeps, on a public road an exempt vehicle, (b) that vehicle is one in respect of which regulations under this Act require a nil licence to be in force, and (c) a nil licence is not for the time being in force in respect of the vehicle. (2) A person guilty of an offence under subsection (1) is liable on summary conviction to a fine not exceeding level 2 on the standard scale. (3) Subsection (1) has effect subject to the provisions of regulations made by the Secretary of State. (4) The Secretary of State may, if he thinks fit, compound any proceedings for an offence under this section.

Offence of forging or fraudulently using etc. nil licence

6

In subsection (2) of section 44 of the 1994 Act (forgery and fraud), for paragraph (c) there shall be substituted the following paragraph—

(c) a nil licence,

.

Supplemental provisions

7

• (1) In section 46 of the 1994 Act (duty to give information)—

• (a) in subsection (1), for “or 37” there shall be substituted “ , 37 or 43A ”;

• (b) in subsections (2) and (3), after “section 29” there shall be inserted “ or 43A ”.

• (2) In subsection (1) of section 51 of that Act (admissions), for “or 34” there shall be substituted “ , 34 or 43A ”.

• (3) In subsection (1) of section 62 of that Act (other definitions), after the definition of “motor trader” there shall be inserted the following definition—

• “nil licence” means a document which is in the form of a vehicle licence and is issued by the Secretary of State in pursuance of regulations under this Act in respect of a vehicle which is an exempt vehicle,

.

• (4) In paragraph 20 of Schedule 2 to that Act (exempt vehicles), sub-paragraph (4) shall cease to have effect.

Further amendments

8

• (1) In Schedule 3 to the Road Traffic Offenders Act 1988 (fixed penalty offences), in column 2 of the entry relating to section 33 of the 1994 Act, for “licence” there shall be substituted “ vehicle licence, trade licence or nil licence ”.

• (2) In Article 198 of the Road Traffic (Northern Ireland) Order 1981 (offences punishable without prosecution), in paragraph (1)(f) for “licence” there shall be substituted “ vehicle licence, trade licence or nil licence ”.

Commencement

9

This Schedule shall come into force on such day as the Secretary of State may by order made by statutory instrument appoint; and different days may be appointed under this paragraph for different purposes.

SCHEDULE 4

Schedule to be inserted into the Finance Act 1994

SCHEDULE 5

Part I — Unjust enrichment

Application of Part I

1

• (1) This Part of this Schedule has effect for the purposes of the following provisions (which make it a defence to a claim for repayment that the repayment would unjustly enrich the claimant), namely—

• (a) section 137A(3) of the Customs and Excise Management Act 1979 (excise duties);

• (b) paragraph 8(3) of Schedule 7 to the Finance Act 1994 (insurance premium tax); and

• (c) paragraph 14(3) of Schedule 5 to the Finance Act 1996 (landfill tax).

• (2) Those provisions are referred to in this Part of this Schedule as unjust enrichment provisions.

• (3) In this Part of this Schedule—

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

• “relevant repayment provision” means—section 137A of the Customs and Excise Management Act 1979 (recovery of overpaid excise duty);paragraph 8 of Schedule 7 to the Finance Act 1994 (recovery of overpaid insurance premium tax); orparagraph 14 of Schedule 5 to the Finance Act 1996 (recovery of overpaid landfill tax);

• “relevant tax” means any duty of excise, insurance premium tax or landfill tax; and

• “subordinate legislation” has the same meaning as in the Interpretation Act 1978.

Disregard of business losses

2

• (1) This paragraph applies where—

• (a) there is an amount paid by way of relevant tax which (apart from an unjust enrichment provision) would fall to be repaid under a relevant repayment provision to any person (“the taxpayer”), and

• (b) the whole or a part of the cost of the payment of that amount to the Commissioners has, for practical purposes, been borne by a person other than the taxpayer.

• (2) Where, in a case to which this paragraph applies, loss or damage has been or may be incurred by the taxpayer as a result of mistaken assumptions made in his case about the operation of any provisions relating to a relevant tax, that loss or damage shall be disregarded, except to the extent of the quantified amount, in the making of any determination—

• (a) of whether or to what extent the repayment of an amount to the taxpayer would enrich him; or

• (b) of whether or to what extent any enrichment of the taxpayer would be unjust.

• (3) In sub-paragraph (2) above “the quantified amount” means the amount (if any) which is shown by the taxpayer to constitute the amount that would appropriately compensate him for loss or damage shown by him to have resulted, for any business carried on by him, from the making of the mistaken assumptions.

• (4) The reference in sub-paragraph (2) above to provisions relating to a relevant tax is a reference to any provisions of—

• (a) any enactment or subordinate legislation (whether or not still in force) which relates to that tax or to any matter connected with it; or

• (b) any notice published by the Commissioners under or for the purposes of any such enactment or subordinate legislation.

• (5) This paragraph has effect for the purposes of making any repayment on or after the day on which this Act is passed, even if the claim for that repayment was made before that day.

Reimbursement arrangements

3

• (1) The Commissioners may by regulations make provision for reimbursement arrangements made by any person to be disregarded for the purposes of any or all of the unjust enrichment provisions except where the arrangements—

• (a) contain such provision as may be required by the regulations; and

• (b) are supported by such undertakings to comply with the provisions of the arrangements as may be required by the regulations to be given to the Commissioners.

• (2) In this paragraph “reimbursement arrangements” means any arrangements for the purposes of a claim under a relevant repayment provision which—

• (a) are made by any person for the purpose of securing that he is not unjustly enriched by the repayment of any amount in pursuance of the claim; and

• (b) provide for the reimbursement of persons who have for practical purposes borne the whole or any part of the cost of the original payment of that amount to the Commissioners.

• (3) Without prejudice to the generality of sub-paragraph (1) above, the provision that may be required by regulations under this paragraph to be contained in reimbursement arrangements includes—

• (a) provision requiring a reimbursement for which the arrangements provide to be made within such period after the repayment to which it relates as may be specified in the regulations;

• (b) provision for the repayment of amounts to the Commissioners where those amounts are not reimbursed in accordance with the arrangements;

• (c) provision requiring interest paid by the Commissioners on any amount repaid by them to be treated in the same way as that amount for the purposes of any requirement under the arrangements to make reimbursement or to repay the Commissioners;

• (d) provision requiring such records relating to the carrying out of the arrangements as may be described in the regulations to be kept and produced to the Commissioners, or to an officer of theirs.

• (4) Regulations under this paragraph may impose obligations on such persons as may be specified in the regulations—

• (a) to make the repayments to the Commissioners that they are required to make in pursuance of any provisions contained in any reimbursement arrangements by virtue of sub-paragraph (3)(b) or (c) above;

• (b) to comply with any requirements contained in any such arrangements by virtue of sub-paragraph (3)(d) above.

• (5) Regulations under this paragraph may make provision for the form and manner in which, and the times at which, undertakings are to be given to the Commissioners in accordance with the regulations; and any such provision may allow for those matters to be determined by the Commissioners in accordance with the regulations.

• (6) Regulations under this paragraph may—

• (a) contain any such incidental, supplementary, consequential or transitional provision as appears to the Commissioners to be necessary or expedient; and

• (b) make different provision for different circumstances.

• (7) Regulations under this paragraph may have effect (irrespective of when the claim for repayment was made) for the purposes of the making of any repayment by the Commissioners after the time when the regulations are made; and, accordingly, such regulations may apply to arrangements made before that time.

• (8) Regulations under this paragraph shall be made by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.

Contravention of requirement to repay Commissioners

4

• (1) Where any obligation is imposed by regulations made by virtue of paragraph 3(4) above, a contravention or failure to comply with that obligation shall, to the extent that it relates to amounts repaid under section 137A of the Customs and Excise Management Act 1979, attract a penalty under section 9 of the Finance Act 1994 (penalties in connection with excise duties).

• (2) For the purposes of Schedule 7 to the Finance Act 1994 (insurance premium tax), a contravention or failure to comply with an obligation imposed by regulations made by virtue of paragraph 3(4) above shall be deemed, to the extent that it relates to amounts repaid under paragraph 8 of that Schedule (recovery of overpaid insurance premium tax), to be a failure to comply with a requirement falling within paragraph 17(1)(c) of that Schedule (breach of regulations).

• (3) Paragraph 23 of Schedule 5 to the Finance Act 1996 (power to provide for penalty) shall have effect as if an obligation imposed by regulations made by virtue of paragraph 3(4) above were, to the extent that it relates to amounts repaid under paragraph 14 of that Schedule (recovery of overpaid landfill tax), a requirement imposed by regulations under Part III of that Act; and the provisions of that Schedule in relation to penalties under Part V of that Schedule shall have effect accordingly.

Part II — Time limits

Repayments

5

• (1) For subsection (4) of section 137A of the Customs and Excise Management Act 1979 (time limit on recovery of overpaid excise duty) there shall be substituted the following subsection—

(4) The Commissioners shall not be liable, on a claim made under this section, to repay any amount paid to them more than three years before the making of the claim.

• (2) For sub-paragraphs (4) and (5) of paragraph 8 of Schedule 7 to the Finance Act 1994 (time limit on recovery of overpaid insurance premium tax) there shall be substituted the following sub-paragraph—

(4) The Commissioners shall not be liable, on a claim made under this paragraph, to repay any amount paid to them more than three years before the making of the claim.

• (3) For sub-paragraph (4) of paragraph 14 of Schedule 5 to the Finance Act 1996 (time limit on recovery of overpaid landfill tax) there shall be substituted the following sub-paragraph—

(4) The Commissioners shall not be liable, on a claim made under this paragraph, to repay any amount paid to them more than three years before the making of the claim.

Assessments

6

• (1) In each of the enactments specified in sub-paragraph (2) below (which provide for the time limits applying to the making of assessments), for the words “six years”, wherever they occur, there shall be substituted the words “ three years ”.

• (2) Those enactments are—

• (a) section 12(4)(a) and (5) of the Finance Act 1994 (excise duties);

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

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

Part III — Interest

Interest on overpaid air passenger duty

7

• (1) Paragraph 9 of Schedule 6 to the Finance Act 1994 (interest payable by the Commissioners in connection with air passenger duty) shall have effect, and be deemed always to have had effect, with the amendments for which this paragraph provides.

• (2) After sub-paragraph (1) there shall be inserted the following sub-paragraph—

(1A) In sub-paragraph (1) above the reference to an amount which the Commissioners are liable to repay in consequence of the making of a payment that was not due is a reference to only so much of that amount as is the subject of a claim that the Commissioners are required to satisfy or have satisfied.

• (3) For sub-paragraph (6) (claims for interest to be made within six years of discovery of error) there shall be substituted the following sub-paragraph—

(6) A claim under this paragraph shall not be made more than three years after the end of the applicable period to which it relates.

• (4) For sub-paragraph (7) there shall be substituted the following sub-paragraph—

(7) Any reference in this paragraph to the authorisation by the Commissioners of the payment of any amount includes a reference to the discharge by way of set-off of the Commissioners’ liability to pay that amount.

8

• (1) In sub-paragraph (2) of that paragraph (applicable period), the words after paragraph (b) shall be omitted; and the following sub-paragraphs shall be substituted for sub-paragraphs (3) and (4)—

(2A) In determining the applicable period for the purposes of this paragraph there shall be left out of account any period by which the Commissioners’ authorisation of the payment of interest is delayed by the conduct of the person who claims the interest. (2B) The reference in sub-paragraph (2A) above to a period by which the Commissioners’ authorisation of the payment of interest is delayed by the conduct of the person who claims it includes, in particular, any period which is referable to— (a) any unreasonable delay in the making of the claim for interest or in the making of any claim for the repayment of the amount on which interest is claimed; (b) any failure by that person or a person acting on his behalf or under his influence to provide the Commissioners— (i) at or before the time of the making of a claim, or (ii) subsequently in response to a request for information by the Commissioners, with all the information required by them to enable the existence and amount of the claimant’s entitlement to a repayment, and to interest on the amount of that repayment, to be determined; and (c) the making, as part of or in association with either— (i) the claim for interest, or (ii) any claim for the payment or repayment of the amount on which interest is claimed, of a claim to anything to which the claimant was not entitled. (3) In determining for the purposes of sub-paragraph (2B) above whether any period of delay is referable to a failure by any person to provide information in response to a request by the Commissioners, there shall be taken to be so referable, except so far as may be prescribed, any period which— (a) begins with the date on which the Commissioners require that person to provide information which they reasonably consider relevant to the matter to be determined; and (b) ends with the earliest date on which it would be reasonable for the Commissioners to conclude— (i) that they have received a complete answer to their request for information; (ii) that they have received all that they need in answer to that request; or (iii) that it is unnecessary for them to be provided with any information in answer to that request.

• (2) Sub-paragraph (1) above shall have effect for the purposes of determining whether any period beginning on or after the day on which this Act is passed is left out of account.

Interest on overpaid insurance premium tax

9

• (1) Paragraph 22 of Schedule 7 to the Finance Act 1994 (interest payable by the Commissioners in connection with insurance premium tax) shall have effect, and be deemed always to have had effect, with the amendments for which this paragraph provides.

• (2) After sub-paragraph (1) there shall be inserted the following sub-paragraph—

(1A) In sub-paragraph (1) above— (a) the reference in paragraph (a) to an amount which the Commissioners are liable to repay in consequence of the making of a payment that was not due is a reference to only so much of that amount as is the subject of a claim that the Commissioners are required to satisfy or have satisfied; and (b) the amounts referred to in paragraph (c) do not include any amount payable under this paragraph.

• (3) For sub-paragraph (9) of that paragraph (claims for interest to be made within six years of discovery of error) there shall be substituted the following sub-paragraph—

(9) A claim under this paragraph shall not be made more than three years after the end of the applicable period to which it relates.

• (4) For sub-paragraph (10) there shall be substituted the following sub-paragraph—

(10) References in this paragraph to the authorisation by the Commissioners of the payment of any amount include references to the discharge by way of set-off of the Commissioners’ liability to pay that amount.

10

• (1) For sub-paragraphs (5) to (7) of that paragraph (periods left out of account in computing periods for which the Commissioners are liable to interest) there shall be substituted the following sub-paragraphs—

(5) In determining the applicable period for the purposes of this paragraph there shall be left out of account any period by which the Commissioners’ authorisation of the payment of interest is delayed by the conduct of the person who claims the interest. (5A) The reference in sub-paragraph (5) above to a period by which the Commissioners’ authorisation of the payment of interest is delayed by the conduct of the person who claims it includes, in particular, any period which is referable to— (a) any unreasonable delay in the making of the claim for interest or in the making of any claim for the payment or repayment of the amount on which interest is claimed; (b) any failure by that person or a person acting on his behalf or under his influence to provide the Commissioners— (i) at or before the time of the making of a claim, or (ii) subsequently in response to a request for information by the Commissioners, with all the information required by them to enable the existence and amount of the claimant’s entitlement to a payment or repayment, and to interest on that payment or repayment, to be determined; and (c) the making, as part of or in association with either— (i) the claim for interest, or (ii) any claim for the payment or repayment of the amount on which interest is claimed, of a claim to anything to which the claimant was not entitled. (6) In determining for the purposes of sub-paragraph (5A) above whether any period of delay is referable to a failure by any person to provide information in response to a request by the Commissioners, there shall be taken to be so referable, except so far as may be provided for by regulations, any period which— (a) begins with the date on which the Commissioners require that person to provide information which they reasonably consider relevant to the matter to be determined; and (b) ends with the earliest date on which it would be reasonable for the Commissioners to conclude— (i) that they have received a complete answer to their request for information; (ii) that they have received all that they need in answer to that request; or (iii) that it is unnecessary for them to be provided with any information in answer to that request.

• (2) Sub-paragraph (1) above shall have effect for the purposes of determining whether any period beginning on or after the day on which this Act is passed is left out of account.

Interest on overpaid landfill tax

11

• (1) Paragraph 29 of Schedule 5 to the Finance Act 1996 (interest payable by the Commissioners in connection with landfill tax) shall have effect, and be deemed always to have had effect, with the amendments for which this paragraph provides.

• (2) After sub-paragraph (1) there shall be inserted the following sub-paragraph—

(1A) In sub-paragraph (1) above— (a) the reference in paragraph (a) to an amount which the Commissioners are liable to repay in consequence of the making of a payment that was not due is a reference to only so much of that amount as is the subject of a claim that the Commissioners are required to satisfy or have satisfied; and (b) the amounts referred to in paragraph (c) do not include any amount payable under this paragraph.

• (3) For sub-paragraph (8) (claims for interest to be made within six years of discovery of error) there shall be substituted the following sub-paragraph—

(8) A claim under this paragraph shall not be made more than three years after the end of the applicable period to which it relates.

• (4) For sub-paragraph (9) there shall be substituted the following sub-paragraph—

(9) References in this paragraph— (a) to receiving payment of any amount from the Commissioners, or (b) to the authorisation by the Commissioners of the payment of any amount, include references to the discharge by way of set-off (whether in accordance with regulations under paragraph 42 or 43 below or otherwise) of the Commissioners’ liability to pay that amount.

12

• (1) For sub-paragraphs (4) to (6) of that paragraph (periods left out of account in computing periods for which the Commissioners are liable to interest) there shall be substituted the following sub-paragraphs—

(4) In determining the applicable period for the purposes of this paragraph there shall be left out of account any period by which the Commissioners’ authorisation of the payment of interest is delayed by the conduct of the person who claims the interest. (4A) The reference in sub-paragraph (4) above to a period by which the Commissioners’ authorisation of the payment of interest is delayed by the conduct of the person who claims it includes, in particular, any period which is referable to— (a) any unreasonable delay in the making of the claim for interest or in the making of any claim for the payment or repayment of the amount on which interest is claimed; (b) any failure by that person or a person acting on his behalf or under his influence to provide the Commissioners— (i) at or before the time of the making of a claim, or (ii) subsequently in response to a request for information by the Commissioners, with all the information required by them to enable the existence and amount of the claimant’s entitlement to a payment or repayment, and to interest on that payment or repayment, to be determined; and (c) the making, as part of or in association with either— (i) the claim for interest, or (ii) any claim for the payment or repayment of the amount on which interest is claimed, of a claim to anything to which the claimant was not entitled. (5) In determining for the purposes of sub-paragraph (4A) above whether any period of delay is referable to a failure by any person to provide information in response to a request by the Commissioners, there shall be taken to be so referable, except so far as may be provided for by regulations, any period which— (a) begins with the date on which the Commissioners require that person to provide information which they reasonably consider relevant to the matter to be determined; and (b) ends with the earliest date on which it would be reasonable for the Commissioners to conclude— (i) that they have received a complete answer to their request for information; (ii) that they have received all that they need in answer to that request; or (iii) that it is unnecessary for them to be provided with any information in answer to that request.

• (2) Sub-paragraph (1) above shall have effect for the purposes of determining whether any period beginning on or after the day on which this Act is passed is left out of account.

Part IV — Set-off involving landfill tax

13

• (1) In paragraph 42 of Schedule 5 to the Finance Act 1996 (set-off of amounts), after sub-paragraph (4) there shall be inserted the following sub-paragraph—

(4A) The regulations may provide for any limitation on the time within which the Commissioners are entitled to take steps for recovering any amount due to them in respect of landfill tax to be disregarded, in such cases as may be described in the regulations, in determining whether any person is under such a duty to pay as is mentioned in sub-paragraph (1)(a) above.

• (2) In paragraph 43 of that Schedule (set-off of amounts), after sub-paragraph (4) there shall be inserted the following sub-paragraph—

(4A) The regulations may provide for any limitation on the time within which the Commissioners are entitled to take steps for recovering any amount due to them in respect of any of the taxes under their care and management to be disregarded, in such cases as may be described in the regulations, in determining whether any person is under such a duty to pay as is mentioned in sub-paragraph (1)(a) above.

Part V — Recovery of excess payments by the Commissioners

Assessment for excessive repayment

14

• (1) Where—

• (a) any amount has been paid at any time to any person by way of a repayment under a relevant repayment provision, and

• (b) the amount paid exceeded the amount which the Commissioners were liable at that time to repay to that person,

the Commissioners may, to the best of their judgement, assess the excess paid to that person and notify it to him.

• (2) Where any person is liable to pay any amount to the Commissioners in pursuance of an obligation imposed by virtue of paragraph 3(4)(a) above, the Commissioners may, to the best of their judgement, assess the amount due from that person and notify it to him.

• (3) In this paragraph “relevant repayment provision” means—

• (a) section 137A of the Customs and Excise Management Act 1979 (recovery of overpaid excise duty);

• (b) paragraph 8 of Schedule 7 to the Finance Act 1994 (recovery of overpaid insurance premium tax); . . .

• (c) paragraph 14 of Schedule 5 to the Finance Act 1996 (recovery of overpaid landfill tax) or

• (d) Part 1 of Schedule 3 to the Finance Act 2001 (payments made and rebates disallowed in error).

Assessment for overpayments of interest

15

• (1) Where—

• (a) any amount has been paid to any person by way of interest under a relevant interest provision, but

• (b) that person was not entitled to that amount under that provision,

the Commissioners may, to the best of their judgement, assess the amount so paid to which that person was not entitled and notify it to him.

• (2) In this paragraph “relevant interest provision” means—

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

• (b) paragraph 22 of Schedule 7 to that Act (interest payable by the Commissioners on overpayments etc. of insurance premium tax); . . .

• (c) paragraph 29 of Schedule 5 to the Finance Act 1996 (interest payable by the Commissioners on overpayments etc. of landfill tax) or.

• (d) Part 2 of Schedule 3 to the Finance Act 2001 (interest).

Assessments under paragraphs 14 and 15

16

• (1) An assessment under paragraph 14 or 15 above shall not be made more than two years after the time when evidence of facts sufficient in the opinion of the Commissioners to justify the making of the assessment comes to the knowledge of the Commissioners.

• (2) Where an amount has been assessed and notified to any person under paragraph 14 or 15 above, it shall be recoverable (subject to any provision having effect in accordance with paragraph 19 below) as if it were relevant tax due from him.

• (3) Sub-paragraph (2) above does not have effect if, or to the extent that, the assessment in question has been withdrawn or reduced.

Interest on amounts assessed

17

• (1) Where an assessment is made under paragraph 14 or 15 above, the whole of the amount assessed shall carry interest at the rate applicable under section 197 of the Finance Act 1996 from the date on which the assessment is notified until payment.

• (2) Where any person is liable to interest under sub-paragraph (1) above the Commissioners may assess the amount due by way of interest and notify it to him.

• (3) Without prejudice to the power to make assessments under this paragraph for later periods, the interest to which an assessment under this paragraph may relate shall be confined to interest for a period of no more than two years ending with the time when the assessment under this paragraph is made.

• (4) Interest under this paragraph shall be paid without any deduction of income tax.

• (5) A notice of assessment under this paragraph shall specify a date, being not later than the date of the notice, to which the amount of interest is calculated; and, if the interest continues to accrue after that date, a further assessment or assessments may be made under this paragraph in respect of amounts which so accrue.

• (6) If, within such period as may be notified by the Commissioners to the person liable for interest under sub-paragraph (1) above, the amount referred to in that sub-paragraph is paid, it shall be treated for the purposes of that sub-paragraph as paid on the date specified as mentioned in sub-paragraph (5) above.

• (7) Where an amount has been assessed and notified to any person under this paragraph it shall be recoverable as if it were relevant tax due from him.

• (8) Sub-paragraph (7) above does not have effect if, or to the extent that, the assessment in question has been withdrawn or reduced.

Supplementary assessments

18

If it appears to the Commissioners that the amount which ought to have been assessed in an assessment under paragraph 14, 15 or 17 above exceeds the amount which was so assessed, then—

• (a) under the same paragraph as that assessment was made, and

• (b) on or before the last day on which that assessment could have been made,

the Commissioners may make a supplementary assessment of the amount of the excess and shall notify the person concerned accordingly.

Review of decisions and appeals

19

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

• (a) is contained in an assessment under paragraph 14, 15 or 17 above,

• (b) is a decision about whether any amount is due to the Commissioners or about how much is due, and

• (c) is made in a case in which the relevant repayment provision is section 137A of the Customs and Excise Management Act 1979 or Part 1 of Schedule 3 to the Finance Act 2001 or the relevant interest provision is Part 2 of that Schedule,

as if that decision were such a decision as is mentioned in section 13A(2)(b) of that Act of 1994.

• (2) Sections 59 to 60 of that Act of 1994 (review and appeal in the case of insurance premium tax) shall have effect in relation to any decision which—

• (a) is contained in an assessment under paragraph 14, 15 or 17 above,

• (b) is a decision about whether any amount is due to the Commissioners or about how much is due, and

• (c) is made in a case in which the relevant repayment provision is paragraph 8 of Schedule 7 to that Act or the relevant interest provision is paragraph 22 of that Schedule,

as if that decision were a decision to which section 59 of that Act applies.

• (3) Sections 54 to 56 of the Finance Act 1996 (review and appeal in the case of landfill tax) shall have effect in relation to any decision which—

• (a) is contained in an assessment under paragraph 14, 15 or 17 above,

• (b) is a decision about whether any amount is due to the Commissioners or about how much is due, and

• (c) is made in a case in which the relevant repayment provision is paragraph 14 of Schedule 5 to that Act or the relevant interest provision is paragraph 29 of that Schedule,

as if that decision were a decision to which section 54 of that Act applies.

Interpretation of Part V

20

• (1) In this Part of this Schedule “the Commissioners” means the Commissioners of Customs and Excise.

• (2) In this Part of this Schedule “relevant tax”, in relation to any assessment, means—

• (a) a duty of excise if the assessment relates to—

• (i) a repayment of an amount paid by way of such a duty,

• (ii) an overpayment of interest under Part 2 of Schedule 3 to the Finance Act 2001, or

• (iii) interest on an amount specified in an assessment in relation to which the relevant tax is a duty of excise;

• (b) insurance premium tax if the assessment relates to—

• (i) a repayment of an amount paid by way of such tax,

• (ii) an overpayment of interest under paragraph 22 of Schedule 7 to the Finance Act 1994, or

• (iii) interest on an amount specified in an assessment in relation to which the relevant tax is insurance premium tax;

and

• (c) landfill tax if the assessment relates to—

• (i) a repayment of an amount paid by way of such tax,

• (ii) an overpayment of interest under paragraph 29 of Schedule 5 to the Finance Act 1996, or

• (iii) interest on an amount specified in an assessment in relation to which the relevant tax is landfill tax.

• (3) For the purposes of this Part of this Schedule notification to a personal representative, trustee in bankruptcy, trustee or interim trustee in a sequestration, receiver, liquidator or person otherwise acting in a representative capacity in relation to another shall be treated as notification to the person in relation to whom he so acts.

Consequential amendment

21

In section 197(2) of the Finance Act 1996 (enactments for which interest rates are set under section 197), after paragraph (d) there shall be inserted

and (e) paragraph 17 of Schedule 5 to the Finance Act 1997 (interest on amounts repayable in respect of overpayments by the Commissioners in connection with excise duties, insurance premium tax and landfill tax).

SCHEDULE 6

Assessment of amounts payable to the Commissioners

1

• (1) After section 12 of the Finance Act 1994 there shall be inserted the following sections—