Finance Act 2001

(8) (1) Paragraph 1(6) above is interpreted in accordance with paragraphs 9 to 17 and 22 below. (2) In paragraphs 10 to 14 below, “single household dwelling” means a dwelling— (a) that is designed for occupation by a single household, and (b) in relation to which the conditions set out in sub-paragraph (4) below are satisfied. (3) In paragraphs 10 to 14 below “multiple occupancy dwelling” means a dwelling— (a) that is designed for occupation by persons not forming a single household, and (b) in relation to which the conditions set out in sub-paragraph (4) below are satisfied. (4) The conditions are— (a) that the dwelling consists of self-contained living accommodation, (b) that there is no provision for direct internal access from the dwelling to any other dwelling or part of a dwelling, (c) that the separate use of the dwelling is not prohibited by the terms of any covenant, statutory planning consent or similar provision, and (d) that the separate disposal of the dwelling is not prohibited by any such terms. (5) For the purposes of this paragraph, a dwelling “is designed” for occupation of a particular kind if it is so designed— (a) as a result of having been originally constructed for occupation of that kind and not having been subsequently adapted for occupation of any other kind, or (b) as a result of adaptation. (9) (1) A “qualifying conversion” means— (a) a changed number of dwellings conversion (see paragraph 10 below); (b) house in multiple occupation conversion (see paragraph 11 below); or (c) a special residential conversion (see paragraph 12 below). (2) Sub-paragraph (1) above is subject to paragraphs 14 and 15 below. (10) (1) A “changed number of dwellings conversion” is— (a) a conversion of premises consisting of a building where the conditions specified in this paragraph are satisfied, or (b) a conversion of premises consisting of a part of a building where those conditions are satisfied. (2) The first condition is that after the conversion the premises being converted contain a number of single household dwellings that is— (a) different from the number (if any) that the premises contain before the conversion, and (b) greater than, or equal to, one. (3) The second condition is that there is no part of the premises being converted that is a part that after the conversion contains the same number of single household dwellings (whether zero, one or two or more) as before the conversion. (11) (1) A “house in multiple occupation conversion” is— (a) a conversion of premises consisting of a building where the condition specified in sub-paragraph (2) below is satisfied, or (b) a conversion of premises consisting of a part of a building where that condition is satisfied. (2) The condition is that— (a) before the conversion the premises being converted contain only a single household dwelling or two or more such dwellings, (b) after the conversion those premises contain only a multiple occupancy dwelling or two or more such dwellings, and (c) the use to which those premises are intended to be put after the conversion is not to any extent use for a qualifying residential purpose (see paragraph 17 below). (12) (1) A “special residential conversion” is a conversion of premises consisting of— (a) a building or two or more buildings, (b) a part of a building or two or more parts of buildings, or (c) a combination of— (i) a building or two or more buildings, and (ii) a part of a building or two or more parts of buildings, where the conditions specified in this paragraph are satisfied. (2) The first condition is that, before the conversion, the premises being converted contain only— (a) a dwelling or two or more dwellings, or (b) a dwelling, or two or more dwellings, and— (i) an ancillary outbuilding occupied together with the dwelling or one or more of the dwellings, or (ii) two or more ancillary outbuildings each occupied together with the dwelling or one or more of the dwellings. (3) In sub-paragraph (2) above “dwelling” means single household dwelling or multiple occupancy dwelling. (4) The second condition is that where before the conversion the premises being converted contain a multiple occupancy dwelling or two or more such dwellings, the use to which that dwelling, or any of those dwellings, was last put before the conversion was not to any extent use for a qualifying residential purpose (see paragraph 17 below). (5) The third condition is that the premises being converted must be intended to be used after the conversion solely for a qualifying residential purpose. (6) The fourth condition is that, where the qualifying residential purpose is an institutional purpose, the premises being converted must be intended to form after the conversion the entirety of an institution used for that purpose. (7) In sub-paragraph (6) above “institutional purpose” means a purpose within paragraph 17(a) to (c), (f) or (g) below. (13) (1) This paragraph applies where the qualifying conversion concerned is a special residential conversion. (2) Paragraph 1(6)(a) or (b) above does not apply to a supply unless— (a) it is made to a person who intends to use the premises being converted for the qualifying residential purpose, and (b) before it is made, the person to whom it is made has given to the person making it a certificate that satisfies the requirements in sub-paragraph (3) below. (3) Those requirements are that the certificate— (a) is in such form as may be specified in a notice published by the Commissioners, and (b) states that the conversion is a special residential conversion. (4) In sub-paragraph (2)(a) above “the qualifying residential purpose” means the purpose within paragraph 17 below for which the premises being converted are intended to be used after the conversion. (14) (1) A qualifying conversion includes any garage works related to the— (a) changed number of dwellings conversion, (b) house in multiple occupation conversion, or (c) special residential conversion, concerned. (2) In this paragraph “garage works” means— (a) the construction of a garage, or (b) a conversion of a non-residential building, or of a non-residential part of a building, that results in a garage. (3) For the purposes of sub-paragraph (1) above, garage works are “related” to a conversion if— (a) they are carried out at the same time as the conversion, and (b) the resulting garage is intended to be occupied with— (i) where the conversion concerned is a changed number of dwellings conversion, a single household dwelling that will after the conversion be contained in the building, or part of a building, being converted, (ii) where the conversion concerned is a house in multiple occupation conversion, a multiple occupancy dwelling that will after the conversion be contained in the building, or part of a building, being converted, or (iii) where the conversion concerned is a special residential conversion, the institution or other accommodation resulting from the conversion. (4) In sub-paragraph (2) above “non-residential” means neither designed, nor adapted, for use— (a) as a dwelling or two or more dwellings, or (b) for a qualifying residential purpose (see paragraph 17 below). (15) (1) A conversion is not a qualifying conversion if any statutory planning consent needed for the conversion has not been granted. (2) A conversion is not a qualifying conversion if any statutory building control approval needed for the conversion has not been granted. (16) (1) In the case of a conversion of a building, “supply of qualifying services” means a supply of services that consists in— (a) the carrying out of works to the fabric of the building, or (b) the carrying out of works within the immediate site of the building that are in connection with— (i) the means of providing water, power, heat or access to the building, (ii) the means of providing drainage or security for the building, or (iii) the provision of means of waste disposal for the building. (2) In the case of a conversion of part of a building, “supply of qualifying services” means a supply of services that consists in— (a) the carrying out of works to the fabric of the part, or (b) the carrying out of works to the fabric of the building, or within the immediate site of the building, that are in connection with— (i) the means of providing water, power, heat or access to the part, (ii) the means of providing drainage or security for the part, or (iii) the provision of means of waste disposal for the part. (3) In this paragraph— (a) references to the carrying out of works to the fabric of a building do not include the incorporation, or installation as fittings, in the building of any goods that are not building materials (see paragraph 22 below); (b) references to the carrying out of works to the fabric of a part of a building do not include the incorporation, or installation as fittings, in the part of any goods that are not building materials. (17) For the purposes of paragraphs 11 to 14 above, “use for a qualifying residential purpose” means use as— (a) a home or other institution providing residential accommodation for children, (b) a home or other institution providing residential accommodation with personal care for persons in need of personal care by reason of old age, disablement, past or present dependence on alcohol or drugs or past or present mental disorder, (c) a hospice, (d) residential accommodation for students or school pupils, (e) residential accommodation for members of any of the armed forces, (f) a monastery, nunnery or similar establishment, or (g) an institution which is the sole or main residence of at least 90 per cent. of its residents, except use as a hospital, prison or similar institution or an hotel, inn or similar establishment. (18) (1) Paragraph 1(7) above is interpreted in accordance with this paragraph and paragraphs 19 to 22 below. (2) For the purposes of paragraph 1(7) above (and paragraphs 19 to 21 below)— - “alteration” includes extension; - “single household dwelling” has the meaning given by paragraph 8(2), (4) and (5) above. (19) (1) Paragraph 1(7) above does not apply to a supply unless either of the empty home conditions is satisfied. (2) The first “empty home condition” is that the dwelling concerned has not been lived in during the period of 3 years ending with the commencement of the relevant works. (3) The second “empty home condition” is that— (a) the dwelling was not lived in during a period of at least 3 years; (b) the person, or one of the persons, whose beginning to live in the dwelling brought that period to an end was a person who (whether alone or jointly with another or others) acquired the dwelling at a time— (i) no later than the end of that period, and (ii) when the dwelling had been not lived in for at least 3 years; (c) no works by way of renovation or alteration were carried out to the dwelling during the period of 3 years ending with the acquisition; (d) the supply is made to a person who is— (i) the person, or one of the persons, whose beginning to live in the property brought to an end the period mentioned in paragraph (a) above, and (ii) the person, or one of the persons, who acquired the dwelling as mentioned in paragraph (b) above; and (e) the relevant works are carried out during the period of one year beginning with the day of the acquisition. (4) In this paragraph “the relevant works” means— (a) where the supply is of the description set out in paragraph 1(7)(a) above, the works that constitute the services supplied; (b) where the supply is of the description set out in paragraph 1(7)(b) above, the works by which the materials concerned are incorporated in the dwelling concerned or its immediate site. (5) In sub-paragraph (3) above, references to a person acquiring a dwelling are to that person having a major interest in the dwelling granted, or assigned, to him for a consideration. (20) (1) Paragraph 1(7) above does not apply to a supply unless any statutory planning consent needed for the renovation or alteration has been granted. (2) Paragraph 1(7) above does not apply to a supply unless any statutory building control approval needed for the renovation or alteration has been granted. (21) (1) “Supply of qualifying services” means a supply of services that consists in— (a) the carrying out of works to the fabric of the dwelling, or (b) the carrying out of works within the immediate site of the dwelling that are in connection with— (i) the means of providing water, power, heat or access to the dwelling, (ii) the means of providing drainage or security for the dwelling, or (iii) the provision of means of waste disposal for the dwelling. (2) In sub-paragraph (1)(a) above, the reference to the carrying out of works to the fabric of the dwelling does not include the incorporation, or installation as fittings, in the dwelling of any goods that are not building materials (see paragraph 22 below). (22) “Building materials” has the meaning given by Notes (22) and (23) of Group 5 to Schedule 8 (zero-rating of construction and conversion of buildings).

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• (3) The amendments made by this section have effect in relation to supplies made after the day on which this Act is passed.

VAT: museums and galleries

98

• (1) The Value Added Tax Act 1994 (c. 23) is amended as follows.

• (2) After section 33 insert—

(33A) (1) Subsections (2) to (5) below apply where— (a) VAT is chargeable on— (i) the supply of goods or services to a body to which this section applies, (ii) the acquisition of any goods by such a body from another member State, or (iii) the importation of any goods by such a body from a place outside the member States, (b) the supply, acquisition or importation is attributable to the provision by the body of free rights of admission to a relevant museum or gallery, and (c) the supply is made, or the acquisition or importation takes place, on or after 1st April 2001. (2) The Commissioners shall, on a claim made by the body in such form and manner as the Commissioners may determine, refund to the body the amount of VAT so chargeable. (3) The claim must be made before the end of the claim period. (4) Subject to subsection (5) below, “the claim period” is the period of 3 years beginning with the day on which the supply is made or the acquisition or importation takes place. (5) If the Commissioners so determine, the claim period is such shorter period beginning with that day as the Commissioners may determine. (6) Subsection (7) below applies where goods or services supplied to, or acquired or imported by, a body to which this section applies that are attributable to free admissions cannot conveniently be distinguished from goods or services supplied to, or acquired or imported by, the body that are not attributable to free admissions. (7) The amount to be refunded on a claim by the body under this section shall be such amount as remains after deducting from the VAT related to the claim such proportion of that VAT as appears to the Commissioners to be attributable otherwise than to free admissions. (8) For the purposes of subsections (6) and (7) above— (a) goods or services are, and VAT is, attributable to free admissions if they are, or it is, attributable to the provision by the body of free rights of admission to a relevant museum or gallery; (b) the VAT related to a claim is the whole of the VAT chargeable on— (i) the supplies to the body, and (ii) the acquisitions and importations by the body, to which the claim relates. (9) The Treasury may by order— (a) specify a body as being a body to which this section applies; (b) when specifying a body under paragraph (a), specify any museum or gallery that, for the purposes of this section, is a “relevant” museum or gallery in relation to the body; (c) specify an additional museum or gallery as being, for the purposes of this section, a “relevant” museum or gallery in relation to a body to which this section applies; (d) when specifying a museum or gallery under paragraph (b) or (c), provide that this section shall have effect in the case of the museum or gallery as if in subsection (1)(c) there were substituted for 1st April 2001 a later date specified in the order. (10) References in this section to VAT do not include any VAT which, by virtue of any order under section 25(7), is excluded from credit under that section.

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

• (4) Section 79 (repayment supplements) is amended in accordance with subsections (5) to (7).

• (5) In subsection (1) (entitlement to supplement), after paragraph (b) insert—

, or (c) a body which is registered and to which section 33A applies is entitled to a refund under that section,

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• (6) In subsection (5) (how supplement to be treated), after paragraph (b) insert—

, and (c) a supplement paid to any body under subsection (1)(c) shall be treated as an amount due to it by way of refund under section 33A.

• (7) In subsection (6)(b) (meaning of “requisite return or claim”), after “section 33” insert “ or (as the case may be) the Commissioners’ determination under, and the provisions of, section 33A. ”.

• (8) In section 90(3) (VAT not to be refunded if it is repayable under the Provisional Collection of Taxes Act 1968 (c. 2)), after “section 33,” insert “ 33A, ”.

• (9) In Note (9) of Group 14 of Schedule 9 (no entitlement to both exemption and refund), after “33,” insert “ 33A, ”.

• (10) Subject to subsection (11), this section comes into force on 1st September 2001.

• (11) For the purpose only of the exercise of the power to make orders under the section 33A(9) inserted by this section, this section comes into force on the day on which this Act is passed.

VAT: re-enactment of reduced-rate provisions

99

• (1) For the purpose of re-enacting the provisions of the Value Added Tax Act 1994 (c. 23) that provide for VAT on certain supplies, acquisitions and importations to be charged at a reduced rate of 5 per cent., that Act is amended as follows.

• (2) In section 2(1) (VAT to be charged at the rate of 17.5 per cent.), after “Subject to the following provisions of this section” insert “ and to the provisions of section 29A ”.

• (3) Section 2(1A) to (1C) and Schedule A1 (which are superseded by the new section 29A and Schedule 7A) shall cease to have effect.

• (4) In Part 2 (reliefs, exemptions and repayments), after the heading “Reliefs etc. generally available” insert—

(29A) (1) VAT charged on— (a) any supply that is of a description for the time being specified in Schedule 7A, or (b) any equivalent acquisition or importation, shall be charged at the rate of 5 per cent. (2) The reference in subsection (1) above to an equivalent acquisition or importation, in relation to any supply that is of a description for the time being specified in Schedule 7A, is a reference (as the case may be) to— (a) any acquisition from another member State of goods the supply of which would be such a supply; or (b) any importation from a place outside the member States of any such goods. (3) The Treasury may by order vary Schedule 7A by adding to or deleting from it any description of supply or by varying any description of supply for the time being specified in it. (4) The power to vary Schedule 7A conferred by subsection (3) above may be exercised so as to describe a supply of goods or services by reference to matters unrelated to the characteristics of the goods or services themselves. In the case of a supply of goods, those matters include, in particular, the use that has been made of the goods.

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• (5) After Schedule 7 insert the Schedule 7A set out in Part 1 of Schedule 31 to this Act.

• (6) The consequential amendments in Part 2 of Schedule 31 to this Act have effect.

• (7) The following provisions have effect in relation to supplies made, and acquisitions and importations taking place, on or after 1st November 2001—

• (a) subsections (2) and (5),

• (b) subsection (3) so far as providing for section 2(1A) and (1B), and Schedule A1, to cease to have effect, and

• (c) subsection (4) so far as inserting subsections (1) and (2) of the new section 29A.

• (8) Subsection (3), so far as providing for section 2(1C) to cease to have effect, comes into force on 1st November 2001.

• (9) Subsection (6)—

• (a) so far as relating to the amendments made by paragraphs 2 and 6(2) of Schedule 31 to this Act, has effect in relation to orders under section 2(2) of the Value Added Tax Act 1994 (c. 23) that make changes only in the rate of VAT that is in force at times on or after 1st November 2001;

• (b) so far as relating to the amendment made by paragraph 3 of Schedule 31 to this Act, has effect in relation to supplies made, or to be made, on or after 1st November 2001.

VAT representatives

100

• (1) In section 48 of the Value Added Tax Act 1994 (VAT representatives), in subsection (1) (directions requiring appointment of representative), for paragraph (b) substitute—

(b) is not established, and does not have any fixed establishment, in the United Kingdom; (ba) is established in a country or territory in respect of which it appears to the Commissioners that the condition specified in subsection (1A) below is satisfied; and

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

• (3) For subsection (2) of that section (power of taxable person to appoint representative) substitute—

(2) With the agreement of the Commissioners, a person— (a) who has not been required under subsection (1) above to appoint another person to act on his behalf in relation to VAT, and (b) in relation to whom the conditions specified in paragraphs (a), (b) and (c) of that subsection are satisfied, may appoint another person to act on his behalf in relation to VAT. (2A) In this Act “VAT representative” means a person appointed under subsection (1) or (2) above.

• (4) The amendments made by this section come into force on 31st December 2001.

Petroleum revenue tax

PRT: unrelievable field losses

101

• (1) In section 6 of the Oil Taxation Act 1975 (c. 22) (allowance of unrelievable loss from abandoned field), for subsections (1) and (1A) substitute—

(1) In the case of a participator in an oil field, an allowable unrelievable field loss is the unrelievable portion of an allowable loss falling within subsection (1B) below. (1A) Subsection (1) above is subject to subsections (5) to (9) below and Schedule 8 to this Act. (1B) An allowable loss falls within this subsection if— (a) the loss accrued in any chargeable period from another field (“the abandoned field”), (b) the person to whom the loss accrued is— (i) the participator, or (ii) if the participator is a company, a company associated with the participator in respect of the loss (see subsection (3) below), (c) the loss accrued to that person as a participator in the abandoned field, and (d) the winning of oil from the abandoned field has permanently ceased. (1C) The “unrelievable portion” of an allowable loss falling within subsection (1B) above is so much of that loss as cannot under the provisions of section 7 of this Act be relieved against assessable profits accruing from the abandoned field to the person to whom the loss accrued. (1D) Subsection (1C) above is subject to Schedule 32 to the Finance Act 2001 (determination of unrelievable portion where Parts 2 and 3 of Schedule 17 to the Finance Act 1980 did not apply to transfer of interest in abandoned field).

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• (2) In subsection (2) of that section, for “subsection (1) above” substitute “ subsection (1B) above ”.

• (3) In section 113(2) of the Finance Act 1984 (c. 43)—

• (a) for the words from “which, in the case” to “in subsection (1)” substitute “ falling within subsection (1B) ”; and

• (b) for “from that other field” substitute “ from the abandoned field ”.

• (4) Schedule 32 to this Act has effect.

• (5) The provisions of this section shall be deemed to have come into force on 7th March 2001.

PRT: allowable decommissioning expenditure

102

• (1) In section 3 of the Oil Taxation Act 1975 (c. 22) (allowable expenditure), for subsections (1C) and (1D) (apportionment of decommissioning expenditure) substitute—

(1C) In any case where— (a) any expenditure incurred by a participator in a taxable field would, apart from this subsection, be allowable for the field under subsection (1)(i) or (j) above, and (b) the qualifying asset that is relevant to the incurring of that expenditure has at some time been used otherwise than in connection with the field, only the relevant portion of the expenditure is allowable for the field under subsection (1)(i) or (j) above. (1D) In subsection (1C) above “the relevant portion” of the expenditure is the portion of the expenditure that it is just and reasonable to apportion to use of the asset that is use in connection with the field. (1E) Subsections (1C) and (1D) above have effect subject to the transitional provisions in section 102(5) to (11) of the Finance Act 2001.

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• (2) In subsection (6) of that section, for “subsection (1C) or subsection (1D)” substitute “ subsections (1C) and (1D) ”.

• (3) In section 10(2) of that Act (which, in particular, provides that although excluded oil is not oil for the purposes of section 3 of that Act it is oil for the purposes of section 3(1D)), for “subsection (1D)” substitute “ subsections (1C) and (1D) ”.

• (4) The amendments made by subsections (1) to (3) apply to expenditure incurred on or after 7th March 2001.

• (5) Subsections (6) to (8) apply where—

• (a) on or after 7th March 2001 a participator in a taxable field (“the transitional participator”) incurs expenditure that falls to be apportioned under the new provision,

• (b) the transitional participator was a participator in the field both immediately before, and at the beginning of, 7th March 2001,

• (c) the qualifying asset that is relevant to the incurring of the expenditure was, at both of the times mentioned in paragraph (b), a qualifying asset in relation to the transitional participator and the field, and

• (d) at a time before 7th March 2001—

• (i) a person was a participator in two or more oil fields, and

• (ii) the asset was a qualifying asset in relation to that person and each of at least two of those fields.

• (6) If there would be no apportionment of the expenditure under the old provision, for the purpose of applying the new provision to the expenditure “the relevant portion” of the expenditure is the taxable field portion.

• (7) If the expenditure would be apportioned between two or more oil fields under the old provision, for the purpose of applying the new provision to the expenditure “the relevant portion” of the expenditure is the portion of the taxable field portion which it is just and reasonable to apportion to use of the asset in connection with the field.

• (8) In carrying out that apportionment of the taxable field portion, ignore use of the asset in connection with an oil field that is not one of the oil fields between which the expenditure would be apportioned under the old provision.

• (9) In subsections (6) to (8) “the taxable field portion” means the portion of the expenditure that it is just and reasonable to apportion to use of the asset in connection with a taxable field.

• (10) In subsections (5) to (8)—

• “the new provision” means section 3(1C) of the Oil Taxation Act 1975 (c. 22) as substituted by subsection (1);

• “the old provision” means section 3(1C) of that Act as it would have effect apart from the amendments made by subsections (1) to (3);

• “qualifying asset” has the same meaning as it has for the purposes of the Oil Taxation Act 1983 (c. 56) (see section 8 of that Act).

• (11) Subsections (5) to (10) shall be construed as one with Part 1 of the Oil Taxation Act 1975.

PRT: expenditure in certain gas-producing fields

103

• (1) In section 10 of the Oil Taxation Act 1975 (modifications of Part 1 in connection with gas sold to the British Gas Corporation under contracts made before end of June 1975), for subsection (3) (modified apportionment rule for expenditure allowable under section 3(1)(a), (b), (c), (hh), (i) or (j)) substitute—

(3) Subsections (3A) to (3H) below apply where, in the case of any taxable field, the oil— (a) won and saved from the field, or (b) expected to be won and saved from the field, includes oil falling within subsection (1)(a) above. (3A) Any expenditure allowable under section 3 of this Act for the field by virtue of any of paragraphs (a) to (c) of section 3(1) of this Act shall be a proportion of what it would otherwise have been. (3B) The proportion mentioned in subsection (3A) above is that which, according to estimates submitted to the Secretary of State after the end of June 1975 and approved by him as reasonable, the field’s original reserves of oil exclusive of oil falling within subsection (1)(a) above bear to the field’s original reserves of oil inclusive of oil so falling. (3C) Until estimates have been submitted and approved for the purpose of subsection (3B) above, the expenditure allowable for the field under section 3 of this Act by virtue of section 3(1)(a), (b) or (c) of this Act shall be deemed to be nil. (3D) Any expenditure allowable under section 3 of this Act for the field by virtue of section 3(1)(hh) of this Act shall be a portion of what it would otherwise have been. (3E) That portion is determined in accordance with the following rules— (1) Identify the abandonment guarantee (within the meaning given by section 104 of the Finance Act 1991 (c. 31)) on the obtaining of which the expenditure was incurred. (2) Identify the liabilities covered by the guarantee. (3) Identify which of those liabilities relate to qualifying assets. (4) Identify the portion of the expenditure that it is just and reasonable to apportion to the liabilities identified under rule 3. (5) Identify the qualifying assets to which the liabilities identified under rule 3 relate. (6) Identify the use of those qualifying assets that has been (or is expected to be) non-excluded use. (7) Assume that expenditure is incurred on the provision of those qualifying assets and identify the proportion of the hypothetical expenditure that it would be just and reasonable to apportion to the use of those assets identified under rule 6. (8) The portion mentioned in subsection (3D) above is then determined by multiplying— (i) the portion identified under rule 4, by (ii) the proportion (expressed as a fraction) identified under rule 7. (3F) Any expenditure allowable under section 3 of this Act for the field by virtue of section 3(1)(i) or (j) of this Act shall be a portion of what it would otherwise have been. (3G) That portion is determined in accordance with the following rules— (1) Identify the qualifying asset that is relevant to the incurring of the expenditure. (2) Identify the use of that qualifying asset that has been non-excluded use. (3) Assume that expenditure is incurred on the provision of that qualifying asset and identify the proportion of the hypothetical expenditure that it would be just and reasonable to apportion to the use of that asset identified under rule 2. (4) The portion mentioned in subsection (3F) above is then determined by multiplying— (i) the expenditure, by (ii) the proportion (expressed as a fraction) identified under rule 3. (3H) In subsections (3E) and (3G) above— - “non-excluded use” means— 1. use in connection with the winning and saving of oil, other than excluded oil, from the field, or 2. use giving rise to receipts that, for the purposes of the Oil Taxation Act 1983 (c. 56), are tariff receipts attributable to a participator in the field; - “qualifying asset” has the same meaning as it has for the purposes of the Oil Taxation Act 1983 (see section 8 of that Act).

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• (2) The amendments made by this section apply to expenditure incurred on or after 7th March 2001.

Landfill tax

Landfill tax: rate

104

• (1) In section 42 of the Finance Act 1996 (c. 8) (amount of landfill tax), in subsections (1)(a) and (2) for “£11” substitute “ £12 ”.

• (2) This section has effect in relation to taxable disposals made, or treated as made, on or after 1st April 2001.

Climate change levy

Climate change levy

105

• (1) Schedule 6 to the Finance Act 2000 (c. 17) (climate change levy) is amended as follows.

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

• (3) In paragraph 14(2) (exemption for supplies to electricity producers does not apply to supplies to exempt unlicensed electricity suppliers, no matter what the electricity they produce is used for), at the end insert—

, and (c) uses the electricity produced otherwise than in exemption-retaining ways.

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• (4) For paragraph 14(3)(c) (uses of electricity produced by an auto-generator that cause auto-generator to lose benefit of exemption for supplies to electricity producers), substitute—

(c) uses the electricity produced otherwise than in exemption-retaining ways.

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• (5) In paragraph 14, after sub-paragraph (3) insert—

(3A) For the purposes of this paragraph, electricity is used in an “exemption-retaining” way if it is used— (a) in making supplies that are excluded under paragraphs 8 to 10 or exempt under any of paragraphs 11, 12 and 18, or (b) in any of the ways mentioned in sub-paragraphs (i) to (iv) of paragraph 13(b).

.

• (6) In paragraph 15(1)(a) (exemption for supplies to combined heat and power stations), for “the commodity is to be used by that person” there is substituted “ that person intends to cause the commodity to be used ”.

• (7) The amendments made by this section have effect in relation to supplies made on or after 1st April 2001.

Inheritance tax

Transfers within group etc

106

• (1) Section 97 of the Inheritance Tax Act 1984 (c. 51) (transfers within group etc.) is amended as follows.

• (2) In subsection (1) (minority participators in close company to be excluded from apportionment under section 94) for paragraph (a) (disposals to which section 171(1) of the Taxation of Chargeable Gains Act 1992 (c. 12) applies which are also transfers of value) substitute—

(a) there is— (i) a disposal of an asset by the transferor company, which is a disposal to which section 171(1) of the 1992 Act applies, or (ii) by virtue of an election under section 171A(2) of that Act, a deemed transfer by the transferor company to another member of the group, (aa) the disposal is also, or the deemed transfer gives rise to, a transfer of value, and

.

• (3) The amendment made by this section has effect, and shall be taken always to have had effect, in relation to disposals made, or transfers deemed to have been made, on or after 1st April 2000.

Part 5 — MISCELLANEOUS AND SUPPLEMENTARY PROVISIONS

Miscellaneous

Interest on unpaid tax, etc.: foot-and-mouth disease

107

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

Trading funds

108

• (1) Section 2C of the Government Trading Funds Act 1973 (c. 63) (limits on borrowing and public dividend capital) is amended as follows.

• (2) In subsection (3) (upper limit on aggregate of borrowing etc. maxima of trading funds), for “£2,000 million” substitute “ £8,000 million ”.

• (3) In subsection (4) (power to increase limit in subsection (3) but not above £4,000 million), for “£4,000 million” substitute “ £10,000 million ”.

Supplementary

Interpretation

109

In this Act “the Taxes Act 1988” means the Income and Corporation Taxes Act 1988 (c. 1).

Repeals and revocations

110

• (1) The enactments mentioned in Schedule 33 to this Act (which include provisions that are spent or of no practical utility) are repealed or revoked to the extent specified.

• (2) The repeals and revocations 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

111

This Act may be cited as the Finance Act 2001.

SCHEDULE 1

For sections 1 to 5 of the Betting and Gaming Duties Act 1981 (c. 63) (general betting duty: charge, rate and payment) substitute—

1

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

2

For section 9(3)(a) of that Act (protection of revenue) substitute—

(a) to any bet which is made by way of pool betting or coupon betting if— (i) the bet is not made by means of a totalisator, (ii) the promoter is in the Isle of Man, (iii) the bet is chargeable with a duty imposed by or under an Act of Tynwald which corresponds to pool betting duty, and (iv) the duty mentioned in sub-paragraph (iii) is chargeable on the bet at a rate not less than the appropriate rate of pool betting duty; or (aa) to any bet which is made with a bookmaker if— (i) it is not made by way of pool betting or coupon betting, (ii) the bookmaker is in the Isle of Man, (iii) a duty is imposed by or under an Act of Tynwald in respect of bookmaker’s receipts from bets of that kind, and (iv) the rates and method of calculation of that duty result in no less duty being charged in respect of bets of that kind than is charged by way of general betting duty in respect of bets of that kind; or

.

3

Paragraph 2(4)(b) and (c) of Schedule 1 to that Act (general betting duty: administration: records) shall cease to have effect.

SCHEDULE 2

1

Part 8 of Schedule 1 to the Vehicle Excise and Registration Act 1994 (c. 22) (annual rates of vehicle excise duty: goods vehicles) is amended as follows.

2

For the Table in paragraph 9(1) (rigid goods vehicles not satisfying reduced pollution requirements and with a revenue weight exceeding 3,500 kilograms but not exceeding 44,000 kilograms) substitute—

3

In paragraph 9(3) (rigid goods vehicles not satisfying reduced pollution requirements and with a revenue weight exceeding 44,000 kilograms), for “£5,170” substitute “ £2,585 ”.

4

In paragraph 9A(3) (rigid goods vehicles satisfying reduced pollution requirements and with a revenue weight exceeding 44,000 kilograms), for “£4,170” substitute “ £2,085 ”.

5

For the Table in paragraph 9B (rigid goods vehicles satisfying reduced pollution requirements and with a revenue weight exceeding 3,500 kilograms but not exceeding 44,000 kilograms) substitute—

6

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

7

For the Table in paragraph 11(1) (tractive units not satisfying reduced pollution requirements and with a revenue weight exceeding 3,500 kilograms but not exceeding 44,000 kilograms) substitute—

8

In paragraph 11(3) (tractive units not satisfying reduced pollution requirements and with a revenue weight exceeding 44,000 kilograms), for “£5,170” substitute “ £2,585 ”.

9

In paragraph 11A(3) (tractive units satisfying reduced pollution requirements and with a revenue weight exceeding 44,000 kilograms), for “£4,170” substitute “ £2,085 ”.

10

For the Table in paragraph 11B (tractive units satisfying reduced pollution requirements and with a revenue weight exceeding 3,500 kilograms but not exceeding 44,000 kilograms) substitute—

11

In paragraph 11C(2)(a) (certain tractive units not satisfying reduced pollution requirements and with a revenue weight exceeding 41,000 kilograms but not exceeding 44,000 kilograms), for “£1,280” substitute “ £650 ”.

SCHEDULE 3

Part 1 — PAYMENTS

Duty paid in error

1

• (1) This paragraph applies if—

• (a) the first condition set out below is satisfied, and

• (b) either the second or the third condition set out below is satisfied.

• (2) The first condition is that, due to an error on the part of the Commissioners, any of the following occurs at any time—

• (a) a person is refused authorisation for the purposes of section 78 of the Finance (No. 2) Act 2023 (alcohol duty: authorised use for certain purposes);

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

• (c) a person is refused approval for the purposes of section 9(1) or 14(1) of the Hydrocarbon Oil Duties Act 1979 (c. 5);

• (d) a person is refused consent for the purposes of section 10(1) of that Act.

• (3) The second condition is that on or after the commencement day a person pays to the Commissioners an amount by way of excise duty which would not have been paid but for the error.

• (4) The third condition is that on or after the commencement day the person refused pays for goods an amount which includes an amount which—

• (a) represents a payment by way of excise duty, and

• (b) would not have been included but for the error.

• (5) If the second condition is satisfied the Commissioners may pay to the person refused an amount equal to the duty which would not have been paid.

• (6) If the third condition is satisfied the Commissioners may pay to the person refused an amount which appears to them to be equal to the payment by way of excise duty.

• (7) The person refused is the person refused an authorisation, direction, approval or consent.

Error relating to rebate

2

• (1) This paragraph applies if the following two conditions are satisfied.

• (2) The first condition is that a person is entitled to use rebated heavy oil in particular circumstances.

• (3) The second condition is that—

• (a) due to an error on the part of the Commissioners he is unable to use rebated heavy oil in those circumstances,

• (b) he uses unrebated heavy oil instead in those circumstances, and

• (c) the use occurs on or after the commencement day.

• (4) The Commissioners may pay to the person an amount equal to the rebate which would have been allowable under section 11 of the Hydrocarbon Oil Duties Act 1979 (c. 5) if—

• (a) the heavy oil used by him in those circumstances had (at the time of that use) been delivered for home use, and

• (b) the other conditions for allowing rebate had been satisfied at that time.

• (5) Rebated heavy oil is heavy oil on whose delivery for home use a rebate has been allowed under section 11 of the Hydrocarbon Oil Duties Act 1979, and unrebated heavy oil is other heavy oil.

Claims

3

No payment may be made to a person under this Part of this Schedule unless—

• (a) he makes a claim in such form and manner, and containing such matters, as the Commissioners may prescribe by regulations, and

• (b) he satisfies such other conditions as the Commissioners may impose by regulations.

Part 2 — INTEREST

Commissioners' delay

4

• (1) This paragraph applies if—

• (a) a person is entitled to obtain an amount by way of repayment or drawback in respect of excise duty paid to the Commissioners,

• (b) on or after the commencement day he makes a claim for the repayment or drawback, and

• (c) the Commissioners fail to authorise it within the allowable period.

• (2) The Commissioners must pay interest to the person on the amount for the applicable period.

• (3) The allowable period is the period of 30 days starting with the day on which the Commissioners receive the claim.

• (4) The applicable period is the period which—

• (a) starts with the day after the allowable period ends, and

• (b) ends with the day when the Commissioners authorise the repayment or drawback.

• (5) Sub-paragraph (4) is subject to paragraph 6.

5

• (1) This paragraph applies if—

• (a) a person is entitled to obtain an amount by way of repayment or drawback in respect of excise duty paid to the Commissioners,

• (b) on or after the commencement day he makes a claim for the repayment or drawback,

• (c) the Commissioners set off the amount against an assessment,

• (d) the assessment is withdrawn, and

• (e) the Commissioners authorise the repayment or drawback.

• (2) The Commissioners must pay interest to the person on the amount for the applicable period.

• (3) The applicable period is the period which—

• (a) starts with the earlier of the days referred to in sub-paragraph (4), and

• (b) ends with the day when the Commissioners authorise the repayment or drawback.

• (4) The days are—

• (a) the day the amount is set off;

• (b) the day after the end of the period of 30 days starting with the day on which the Commissioners receive the claim.

• (5) Sub-paragraphs (3) and (4) are subject to paragraph 6.

6

• (1) In deciding the applicable period for the purposes of paragraphs 4 and 5 any period by which the Commissioners’ authorisation of the repayment or drawback is delayed by circumstances beyond their control must be ignored.

• (2) In applying sub-paragraph (1) account must be taken in particular of any period referable to—

• (a) any failure by any person to provide the Commissioners with information requested by them to enable the existence and amount of the claimant’s entitlement to a repayment or drawback to be determined;

• (b) the making (in connection with the claim for repayment or drawback) of a claim to anything to which the claimant is not entitled.

• (3) In deciding for the purposes of sub-paragraph (2)(a) whether a period of delay is referable to a failure by a person to provide information requested, the period mentioned in sub-paragraph (4) must be taken to be so referable (except so far as may be prescribed by the Commissioners by regulations).

• (4) The period is that which—

• (a) starts with the day when the Commissioners request the person to provide information they reasonably consider relevant to the matter to be determined, and

• (b) ends with the earliest day when it would be reasonable for them to conclude that they have received a complete answer to their request or all they need to answer it, or to conclude that it is unnecessary for them to be provided with information in answer to their request.

Commissioners' error

7

• (1) This paragraph applies if—

• (a) due to an error on the part of the Commissioners a person pays to them an amount by way of excise duty,

• (b) the person is entitled to obtain repayment of the amount,

• (c) he makes a claim (at any time) for the repayment and the Commissioners authorise it on or after the commencement day, and

• (d) he makes a claim for interest under this paragraph before the end of the period of 4 years starting with the day when the Commissioners authorise the repayment.

• (2) The Commissioners must pay interest to the person on the amount concerned for the applicable period.

• (3) The applicable period is the period which—

• (a) starts with the day when the payment is received by the Commissioners, and

• (b) ends with the day when they authorise repayment.

• (4) Sub-paragraph (3) is subject to paragraph 11.

8

• (1) This paragraph applies if—

• (a) a person pays to the Commissioners an amount by way of excise duty,

• (b) he is entitled to obtain an amount by way of repayment, remission, rebate or drawback in respect of the duty,

• (c) due to an error on the part of the Commissioners he fails to claim the amount when he would (apart from the error) have done so,

• (d) the person makes a claim (at any time) for the repayment, remission, rebate or drawback and the Commissioners authorise it on or after the commencement day, and

• (e) he makes a claim for interest under this paragraph before the end of the period of 4 years starting with the day when the Commissioners authorise the repayment, remission, rebate or drawback.

• (2) The Commissioners must pay interest to the person on the amount concerned for the applicable period.

• (3) The applicable period is the period which—

• (a) starts with the day when (apart from the error) the Commissioners might reasonably have been expected to authorise repayment, remission, rebate or drawback, and

• (b) ends with the day when they authorise it.

• (4) Sub-paragraph (3) is subject to paragraph 11.

9

• (1) This paragraph applies if—

• (a) a person pays to the Commissioners an amount by way of excise duty,

• (b) he is entitled to obtain an amount by way of repayment, remission, rebate or drawback in respect of the duty,

• (c) he makes a claim (at any time) for the repayment, remission, rebate or drawback and the Commissioners authorise it,

• (d) due to an error on the part of the Commissioners their authorisation is delayed,

• (e) the Commissioners authorise the repayment, remission, rebate or drawback on or after the commencement day,

• (f) neither paragraph 4 nor paragraph 5 applies in relation to the person, and

• (g) the person makes a claim for interest under this paragraph before the end of the period of 4 years starting with the day when the Commissioners authorise the repayment, remission, rebate or drawback.

• (2) The Commissioners must pay interest to the person on the amount concerned for the applicable period.

• (3) The applicable period is the period which—

• (a) starts with the day when (apart from the error) the Commissioners might reasonably have been expected to authorise repayment, remission, rebate or drawback, and

• (b) ends with the day when they authorise it.

• (4) Sub-paragraph (3) is subject to paragraph 11.

10

• (1) This paragraph applies if—

• (a) a person makes a claim for a payment under paragraph 1 or 2 of this Schedule and the Commissioners authorise it, and

• (b) he makes a claim for interest under this paragraph before the end of the period of 4 years starting with the day when the Commissioners authorise the payment.

• (2) The Commissioners must pay interest to the person on the amount concerned for the applicable period.

• (3) The applicable period is the period which—

• (a) starts with the day when the second or third condition in paragraph 1 or the second condition in paragraph 2 (as the case may be) is satisfied in relation to that person, and

• (b) ends with the day when the Commissioners authorise the payment under that paragraph.

• (4) Sub-paragraph (3) is subject to paragraph 11.

11

• (1) In deciding the applicable period for the purposes of paragraphs 7 to 10 any period by which the Commissioners’ authorisation of the repayment, remission, rebate, drawback or payment is delayed by circumstances beyond their control must be ignored.

• (2) In applying sub-paragraph (1) account must be taken in particular of any period referable to—

• (a) any unreasonable delay in claiming repayment, remission, rebate, drawback or payment;

• (b) any failure by any person to provide the Commissioners with information requested by them to enable the existence and amount of a claimant’s entitlement to repayment, remission, rebate, drawback, payment or interest to be determined;

• (c) the making (in connection with the claim for repayment, remission, rebate, drawback or payment) of a claim to anything to which the claimant is not entitled.

• (3) In deciding for the purposes of sub-paragraph (2)(b) whether a period of delay is referable to a failure by a person to provide information requested, the period mentioned in sub-paragraph (4) must be taken to be so referable (except so far as may be prescribed by the Commissioners by regulations).

• (4) The period is that which—

• (a) starts with the day when the Commissioners request the person to provide information they reasonably consider relevant to the matter to be determined, and

• (b) ends with the earliest day when it would be reasonable for them to conclude that they have received a complete answer to their request or all they need to answer it, or to conclude that it is unnecessary for them to be provided with information in answer to their request.

Claims

12

• (1) A claim for interest under a relevant paragraph must be made in such form and manner, and contain such matters, as the Commissioners may prescribe by regulations.

• (2) If a person makes a claim under a relevant paragraph for interest on an amount, he may not make a claim under another relevant paragraph for interest on that amount.

• (3) The relevant paragraphs are paragraphs 7 to 10.

Rate of interest

13

In the case of interest under this Part of this Schedule, the rate is that applicable under section 197 of the Finance Act 1996 (c. 8) (rates of interest).

Part 3 — APPEALS

14

• (1) This paragraph applies if—

• (a) a person (the appellant) appeals to a tribunal under section 16 of the Finance Act 1994 (c. 9) in relation to an assessment to excise duty,

• (b) the appellant pays, or gives cash security for, the whole or any part of that duty, and

• (c) the tribunal finds that the whole or any part of the amount paid or secured is not due.

• (2) The Commissioners must repay to the appellant an amount equal to—

• (a) so much of the duty paid as is found not to be due, or

• (b) so much of the cash security as relates to the duty found not to be due.

• (3) The Commissioners must pay interest to the appellant on the amount referred to in sub-paragraph (2) for the period which—

• (a) starts with the day when the duty is paid or the cash security is given, and

• (b) ends with the day when the Commissioners authorise the repayment.

• (4) The rate of interest is the rate applicable under section 197 of the Finance Act 1996.

• (5) In this paragraph “cash security” means such adequate security as enables the Commissioners to place the amount in question on deposit.

Part 4 — GENERAL

Amendments

15

In section 137A of the Customs and Excise Management Act 1979 (c. 2) (recovery of overpaid excise duty) insert after subsection (5)—

(6) This section does not apply in a case where the Commissioners are— (a) entitled to pay an amount under Part 1 of Schedule 3 to the Finance Act 2001, or (b) required to repay an amount under Part 3 of that Schedule.

.

16

In section 16(9) of the Finance Act 1994 (c. 9) (matters which are not ancillary matters) for the words from “paragraph 9(e)” to the end substitute—

the following paragraphs of Schedule 5— (a) paragraph 3(4); (b) paragraph 4(3); (c) paragraph 9(e); (d) paragraph 9A.

.

17

• (1) Schedule 5 to the Finance Act 1994 (decisions subject to review and appeal) is amended as follows.

• (2) In paragraph 3 (decisions about alcoholic liquor) insert after sub-paragraph (3)—

(4) Any decision which— (a) is made under paragraph 1 of Schedule 3 to the Finance Act 2001, and (b) relates to the Alcoholic Liquor Duties Act 1979.

.

• (3) In paragraph 4 (decisions about hydrocarbon oil) insert after sub-paragraph (2)—

(3) Any decision which— (a) is made under paragraph 1 or 2 of Schedule 3 to the Finance Act 2001, and (b) relates to the Hydrocarbon Oil Duties Act 1979.

.

• (4) After paragraph 9 insert—

(9A) Any decision under or for the purposes of Part 2 of Schedule 3 to the Finance Act 2001 (interest).

.

18

• (1) Section 197(2) of the Finance Act 1996 (c. 8) (setting rates of interest) is amended as follows.

• (2) For paragraph (a) substitute—

(a) paragraph 7 of Schedule 6 to the Finance Act 1994 (interest payable to the Commissioners of Customs and Excise in connection with air passenger duty);

.

• (3) After paragraph (h) (which is inserted by section 49(2) of this Act) insert—

(i) Parts 2 and 3 of Schedule 3 to the Finance Act 2001 (interest payable on repayments etc.).

.

19

• (1) Schedule 5 to the Finance Act 1997 (c. 16) (recovery of excess payments) is amended as follows.

• (2) In paragraph 14 (assessment for excessive repayment) at the end of sub-paragraph (3)(b) omit “or” and after sub-paragraph (3)(c) insert—

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

.

• (3) In paragraph 15 (assessment for overpayments of interest) omit sub-paragraph (2)(a), at the end of sub-paragraph (2)(b) omit “or”, and after sub-paragraph (2)(c) insert—

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

.

• (4) In paragraph 19 (review of decisions and appeals) in sub-paragraph (1)(c) for “the relevant interest provision is paragraph 9 of Schedule 6 to the Finance Act 1994” substitute “ Part 1 of Schedule 3 to the Finance Act 2001 or the relevant interest provision is Part 2 of that Schedule ”.

• (5) In paragraph 20 (interpretation of Part 5) in sub-paragraph (2)(a)(ii) for “paragraph 9 of Schedule 6 to the Finance Act 1994” substitute “ Part 2 of Schedule 3 to the Finance Act 2001 ”.

20

In Schedule 6 to the Finance Act 1994 (c. 9), paragraphs 9 and 10 (interest in relation to air passenger duty) are omitted.

General

21

• (1) This Schedule shall come into force in accordance with provision made by the Commissioners by order.

• (2) A reference in a provision of this Schedule to the commencement day is to such day as the Commissioners appoint by such order for the purposes of that provision.

22

• (1) A power to make an order or regulations under this Schedule is exercisable by statutory instrument.

• (2) An order or regulations under this Schedule—

• (a) may make different provision for different purposes;

• (b) may make incidental, supplemental, saving or transitional provision.

• (3) Regulations under this Schedule are subject to annulment in pursuance of a resolution of either House of Parliament.

23

References in this Schedule to the Commissioners are to the Commissioners of Customs and Excise.

SCHEDULE 4

Notification of registrability etc.

1

• (1) An unregistered person who—

• (a) is required to be registered for the purposes of aggregates levy, or

• (b) has formed the intention of carrying out taxable activities that are registrable,

shall notify the Commissioners of that fact.

• (1A) An unregistered person who—

• (a) would be required to be registered for the purposes of aggregates levy but for an exemption by virtue of regulations under section 24(4) of this Act, or

• (b) has formed the intention of carrying out taxable activities that would be registrable but for such an exemption,

shall, in such cases or circumstances as may be prescribed in the regulations, notify the Commissioners of that fact.

• (1B) For the purposes of sub-paragraphs (1) and (1A) above, taxable activities are registrable if a person carrying them out is, by reason of doing so, required by section 24(2) of this Act to be registered for the purposes of aggregates levy.

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

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

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

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

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

Form of registration

2

• (1) The Commissioners shall register a person who is required to be registered for the purposes of aggregates levy with effect from the time when the requirement arose.

• (2) Where any two or more bodies corporate are members of the same group they shall be registered together as one person in the name of the representative member.

• (3) The registration of a body corporate carrying on a business in several divisions may, if the body corporate so requests and the Commissioners see fit, be in the names of those divisions.

• (4) The registration of—

• (a) any two or more persons carrying on a business in partnership, or

• (b) an unincorporated body,

may be in the name of the firm or body concerned.

Notification of loss or prospective loss of registrability

3

• (1) A person who, having become liable to give a notification by virtue of paragraph 1 above, ceases (whether before or after being registered) to have the intention of carrying out taxable activities shall notify the Commissioners of that fact.

• (2) A person who fails to comply with sub-paragraph (1) above shall be liable to a penalty of £250.

Cancellation of registration

4

• (1) If the Commissioners are satisfied that a registered person—

• (a) has ceased to carry out taxable activities, and

• (b) does not have the intention of carrying out taxable activities,

they may cancel his registration with effect from such time after he last carried out such activities as appears to them to be appropriate.

• (2) Sub-paragraph (1) above applies whether or not the registered person has notified the Commissioners under paragraph 3 above.

• (3) Where a registered person is exempted from the requirement to be registered by virtue of regulations under section 24(4), the Commissioners may cancel his registration with effect from the time when he became so exempted or such later time as appears to them to be appropriate.

• (4) The Commissioners shall be under a duty to exercise the power conferred by sub-paragraph (1) or (3) above with effect from any time if, where the power is exercisable, they are satisfied that the conditions specified in sub-paragraph (5) below are satisfied and were or will be satisfied at that time.

• (5) Those conditions are—

• (a) that the person in question—

• (i) has given a notification under paragraph 3 above; or

• (ii) is exempted from the requirement to be registered by virtue of regulations under section 24(4) of this Act;

• (b) that no aggregates levy due from that person, and no amount recoverable as if it were such levy, remains unpaid;

• (c) that no tax credit to which that person is entitled by virtue of any tax credit regulations is outstanding; and

• (d) that that person is not subject to any outstanding liability to make a return for the purposes of aggregates levy.

• (6) Where—

• (a) a registered person notifies the Commissioners under paragraph 3 above, and

• (b) they are satisfied that (if he had not been registered) he would not have been required to be registered at any time since the time when he was registered,

they shall cancel his registration with effect from the date of his registration.

• (7) Where—

• (a) a registered person is exempted from the requirement to be registered by virtue of regulations under section 24(4) of this Act, and

• (b) the Commissioners are satisfied that he has been so exempted at all times since being registered,

they shall cancel his registration with effect from the date of his registration.

Correction of the register etc.

5

• (1) The Commissioners may by regulations make provision for and with respect to the correction of entries in the register.

• (2) Regulations under this paragraph may, to such extent as appears to the Commissioners appropriate for keeping the register up to date, make provision requiring—

• (a) registered persons, and

• (b) persons who are required to be registered, and

• (c) persons who would be so required but for any exemption by virtue of regulations under section 24(4) of this Act,

to notify the Commissioners of changes in circumstances relating to themselves, their businesses or any other matter with respect to which particulars are contained in the register (or would be, were the person registered).

Supplemental regulations about notifications

6

• (1) For the purposes of any provision made by or under section 24 of this Act or this Schedule for any matter to be notified to the Commissioners, regulations made by the Commissioners may make provision—

• (a) as to the time within which the notification is to be given;

• (b) as to the form and manner in which the notification is to be given; and

• (c) as to the information and other particulars to be contained in or provided with any notification.

• (2) For those purposes the Commissioners may also by regulations impose obligations requiring a person who has given a notification to notify the Commissioners if any information contained in or provided in connection with that notification is or becomes inaccurate.

• (3) The power under this paragraph to make regulations as to the time within which any notification is to be given shall include power to authorise the Commissioners to extend the time for the giving of a notification.

Publication of information on the register

7

• (1) The Commissioners may publish, by such means as they think fit, any information which—

• (a) is derived from the register; and

• (b) falls within any of the descriptions set out below.

• (2) The descriptions are—

• (a) the names of registered persons;

• (b) particulars of registered sites;

• (c) the fact (where it is the case) that the registered person is a body corporate which is a member of a group;

• (d) the names of the other bodies corporate which are members of the group.

• (3) Information may be published in accordance with this paragraph notwithstanding any obligation not to disclose the information that would otherwise apply.

Interpretation of Schedule

8

• (1) In this Schedule—

• (a) references to the register are references to the register maintained under section 24 of this Act;

• (b) references to registering a person are references to registering him in that register; and

• (c) references to a person’s registration are references to his registration in that register;

and “unregistered” shall be construed accordingly.

• (2) For the purposes of this Schedule a person carries out a taxable activity if a quantity of aggregate is subjected to commercial exploitation in England, Wales or Northern Ireland in circumstances in which he is responsible for its being so subjected.

SCHEDULE 5

Recovery of levy as debt due

1

Aggregates levy shall be recoverable as a debt due to the Crown.

Assessments of amounts of levy due

2

• (1) Where it appears to the Commissioners—

• (a) that any period is an accounting period by reference to which a person is liable to account for aggregates levy,

• (b) that any aggregates levy for which that person is liable to account by reference to that period has become due, and

• (c) that there has been a default by that person that falls within sub-paragraph (2) below,

they may assess the amount of the levy due from that person for that period to the best of their judgement and notify that amount to that person.

• (2) The defaults falling within this sub-paragraph are—

• (a) any failure to make a return required to be made by any provision made by or under this Part of this Act;

• (b) any failure to keep any documents necessary to verify returns required to be made under any such provision;

• (c) any failure to afford the facilities necessary to verify returns required to be made under any such provision;

• (d) the making, in purported compliance with any requirement of any such provision to make a return, of an incomplete or incorrect return;

• (e) any failure to comply with a requirement imposed by or under Schedule 4 to this Act.

• (3) Where it appears to the Commissioners that a default falling within sub-paragraph (2) above is a default by a person on whom the requirement to make a return is imposed in his capacity as the representative of another person, sub-paragraph (1) above shall apply as if the reference to the amount of aggregates levy due included a reference to any aggregates levy due from that other person.

• (4) In a case where—

• (a) the Commissioners have made an assessment for any accounting period as a result of any person’s failure to make a return for that period,

• (b) the levy assessed has been paid but no proper return has been made for that period,

• (c) as a result of a failure (whether by that person or a representative of his) to make a return for a later accounting period, the Commissioners find it necessary to make another assessment under this paragraph in relation to the later period, and

• (d) the Commissioners think it appropriate to do so in the light of the absence of a proper return for the earlier period,

they may, in the assessment in relation to the later period, specify an amount of aggregates levy due that is greater than the amount that they would have considered to be appropriate had they had regard only to the later period.

• (5) Where an amount has been assessed and notified to any person under this paragraph, it shall be recoverable on the basis that it is an amount of aggregates levy due from him.

• (6) Sub-paragraph (5) above does not have effect if, or to the extent that, the assessment in question has been withdrawn or reduced.

Supplementary assessments

3

• (1) If, where an assessment has been notified to any person under paragraph 2 above or this paragraph, it appears to the Commissioners that the amount which ought to have been assessed as due for any accounting period exceeds the amount that has already been assessed, the Commissioners may make a supplementary assessment of the amount of the excess and notify that person accordingly.

• (2) Where an amount has been assessed and notified to any person under this paragraph it shall be recoverable on the basis that it is an amount of aggregates levy 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.

Time limits for assessments

4

• (1) An assessment under paragraph 2 or 3 above of an amount of aggregates levy due for any accounting period—