Finance Act 2002

This Act may be cited as the Finance Act 2002.

SCHEDULE 1

1

• (1) Section 36 of the Alcoholic Liquor Duties Act 1979 (c. 4) (beer: charge of excise duty) is amended as follows.

• (2) In subsection (1), for “at the rate of £11.89 per hectolitre per cent of alcohol in the beer" substitute “ at the rates specified in subsection (1AA) below ”.

• (3) After subsection (1), insert—

(1AA) The rates at which the duty shall be charged are— (a) in the case of beer that is not small brewery beer, £11.89 per hectolitre per cent of alcohol in the beer; (b) in the case of small brewery beer produced in a singleton brewery, the rate per hectolitre per cent of alcohol in the beer that is given by section 36D below; (c) in the case of small brewery beer produced in a co-operated brewery, the rate per hectolitre per cent of alcohol in the beer that is given by section 36F below.

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2

In that Act, after that section (and before the heading“Reliefs from excise duty") insert—

Reduced rates of excise duty (36A) (1) For the purposes of section 36(1AA) above (but subject to subsection (2) below)— (a) whether beer produced in a singleton brewery is “small brewery beer” is determined in accordance with section 36C below, and (b) whether beer produced in a co-operated brewery is “small brewery beer” is determined in accordance with section 36E below. (2) Beer is not small brewery beer if it is produced by a person on any premises in circumstances in which he is required to be, but is not, registered under section 47 below in respect of those premises. (36B) (1) The following provisions of this section have effect for the purposes of section 36(1AA) above, section 36A above, this section and sections 36C to 36F below. (2) A brewery is a “singleton brewery” at any particular time in a calendar year if it is not a co-operated brewery at that time. (3) A brewery is a “co-operated brewery” at any particular time in a calendar year if— (a) a person who produces beer in the brewery at that time or any earlier time in that year, or (b) a person connected with such a person, also produces beer in any other brewery at that time or any earlier time in that year. (4) “Brewery” means premises (whether or not in the United Kingdom) on which beer is produced and that are situated physically apart from any other premises on which beer is produced. (5) “The standard beer duty rate” means the rate of duty specified by section 36(1AA)(a) above. (6) References to “the grossed-up amount” of an estimate of the amount of a brewery’s production in a calendar year are to the amount given by— $$E(365-N)×365$where—E is the amount of the estimate, andN is the number of days (if any) in the calendar year before the brewery begins to be used as beer-production premises.$ (7) References to a brewery being used as beer-production premises are, in the case of a brewery in the United Kingdom, to there being at least one person who is required to be registered under section 47 below in respect of the brewery. (8) Any question whether a person is connected with another shall be determined in accordance with section 839 of the Income and Corporation Taxes Act 1988. (36C) (1) This section applies to beer produced in a brewery at a time in a calendar year (“the current year”) when the brewery is a singleton brewery. (2) The beer is “small brewery beer” if the following conditions are satisfied; but this is subject to subsections (9) and (10) below. (3) The first condition is that either— (a) no beer was produced in the brewery in the previous calendar year (“the previous year”), or (b) the amount of beer produced in the brewery in the previous year was not more than 30,000 hectolitres. (4) For the purposes of subsection (3)(b) above, where the brewery was in use as beer-production premises during part only of the previous year, the amount of beer produced in the previous year in the brewery shall be taken to have been— $$AD×365$where—A is the amount of beer actually produced in the previous year in the brewery, andD is the number of days in that part of the previous year.$ (5) The second condition is that the amount of the estimate under subsection (9) below of the brewery’s production in the current year is not more than 30,000 hectolitres. (6) The third condition is that if the brewery begins to be used as beer-production premises part-way through the current year, the grossed-up amount of that estimate is not more than 30,000 hectolitres. (7) The fourth condition is that less than half of the beer produced in the brewery in the previous year was produced under licence. (8) The fifth condition is that the beer is not produced under licence. (9) Beer produced in the brewery in the current year before the person who first produces beer in the brewery in that year has made a reasonable estimate of the amount of beer that will be produced in the brewery in that year is not small brewery beer. (10) Beer produced in the brewery in the current year after the amount of beer produced in the brewery in the current year has reached 30,000 hectolitres is not small brewery beer. (11) Subsection (10) above is without prejudice to section 167(4) of the Customs and Excise Management Act 1979 (recovery of duty unpaid by reason of untrue document or statement). (36D) (1) This section applies to small brewery beer produced in a brewery at a time in a calendar year (“the current year”) when the brewery is a singleton brewery. (2) The rate of duty in the case of that beer (“the brewery rate”) is determined in accordance with this section. (3) Subsection (4) below applies if— (a) beer was produced in the brewery in the previous calendar year (“the previous year”) and the amount produced in the brewery in that year was not more than 5,000 hectolitres, or (b) no beer was produced in the brewery in the previous year and the grossed-up amount of the estimate under section 36C(9) above of the brewery’s production in the current year is not more than 5,000 hectolitres. (4) If this subsection applies, “the brewery rate” is 50% of the standard beer duty rate at the time concerned; but this is subject to rounding under subsection (7) below. (5) Subsection (6) below applies if— (a) beer was produced in the brewery in the previous year and the amount produced in the brewery in that year was more than 5,000 hectolitres but not more than 30,000 hectolitres, or (b) no beer was produced in the brewery in the previous year and the grossed-up amount of the estimate under section 36C(9) above of the brewery’s production in the current year is more than 5,000 hectolitres but not more than 30,000 hectolitres. (6) If this subsection applies, “the brewery rate” is, subject to rounding under subsection (7) below, given by— $$P-2,500P×the standard beer duty rate at the time concerned$where—if this subsection applies by reason of subsection (5)(a) above, P is the amount, in hectolitres, of beer produced in the brewery in the previous year, andif this subsection applies by reason of subsection (5)(b) above, P is the grossed-up amount (expressed in hectolitres) mentioned in subsection (5)(b).$ (7) Where a rate given by subsection (4) or (6) above would (apart from this subsection) not be a whole number of pennies, the rate given by that subsection shall be taken to be the rate actually given by that subsection rounded up to the nearest penny. (8) Where the brewery was in use as beer-production premises during part only of the previous year, for the purposes of subsections (3)(a), (5)(a) and (6) above the amount of beer produced in the brewery in the previous year shall be taken to have been— $$AD×365$where—A is the amount of beer actually produced in the previous year in the brewery, andD is the number of days in that part of the previous year.$ (36E) (1) This section applies to beer produced in a brewery at a time in a calendar year (“the current year”) when the brewery is a co-operated brewery. (2) The beer is “small brewery beer” if the following conditions are satisfied; but this is subject to subsections (10) and (11) below. (3) In this section— - “the group” means the group of breweries consisting of— 1. the co-operated brewery, and 2. every brewery (other than the co-operated brewery) in which beer is produced at the time mentioned in subsection (1) above, or at any earlier time in the current year, by— 1. a person who produces beer in the co-operated brewery at the time so mentioned or at any earlier time in the current year, or 2. a person connected with such a person; - “group brewery” means a brewery that is in the group; - “the previous year” means the calendar year immediately preceding the current year. (4) The first condition is that either— (a) no beer was produced in the previous year in the group, or (b) the amount given by PY + GE is not more than 30,000 hectolitres, where— - PY is the amount of beer produced in the previous year in the group, and - GE is the aggregate of the grossed-up amount of each estimate that— - (i) is an estimate for the purposes of subsection (10) below of the amount of the production in the current year in a group brewery in which no beer was produced in the previous year, and - (ii) is made no later than the time mentioned in subsection (1) above. (5) For the purposes of subsection (4)(b) above, where a group brewery was in use as beer-production premises during part only of the previous year, the amount of beer produced in the previous year in that brewery shall be taken to have been— $$AD×365$where—A is the amount of beer actually produced in the previous year in that brewery, andD is the number of days in that part of the previous year.$ (6) The second condition is that the aggregate of each estimate that— (a) is an estimate for the purposes of subsection (10) below of the amount of a group brewery’s production in the current year, and (b) is made no later than the time mentioned in subsection (1) above, is not more than 30,000 hectolitres. (7) The third condition is that if any group brewery begins to be used as beer-production premises part-way through the current year, the aggregate of the grossed-up amount of each estimate that— (a) is an estimate for the purposes of subsection (10) below of the amount of a group brewery’s production in the current year, and (b) is made no later than the time mentioned in subsection (1) above, is not more than 30,000 hectolitres. (8) The fourth condition is that less than half of the beer produced in the previous year in each group brewery was produced under licence. (9) The fifth condition is that the beer is not produced under licence. (10) Beer produced in the co-operated brewery at an unestimated time is not small brewery beer; and here “unestimated time” means a time in the current year when there is a group brewery for which there does not exist a reasonable estimate, made by the person who first produces beer in that brewery in that year, of the amount of beer that will be produced in that brewery in that year. (11) Beer produced in the co-operated brewery in the current year after the amount of beer produced in the group in the current year has reached 30,000 hectolitres is not small brewery beer. (12) Subsection (11) above is without prejudice to section 167(4) of the Customs and Excise Management Act 1979 (recovery of duty unpaid by reason of untrue document or statement). (36F) (1) This section applies to small brewery beer produced in a brewery at a time in a calendar year (“the current year”) when the brewery is a co-operated brewery. (2) The rate of duty in the case of that beer (“the brewery rate”) is determined in accordance with this section. (3) In this section— - “the group” means the group of breweries consisting of— 1. the co-operated brewery, and 2. every brewery (other than the co-operated brewery) in which beer is produced at the time mentioned in subsection (1) above, or at any earlier time in the current year, by— 1. a person who produces beer in the co-operated brewery at the time so mentioned or at any earlier time in the current year, or 2. a person connected with such a person; - “group brewery” means a brewery that is in the group; - “the previous year” means the calendar year immediately preceding the current year; - “the notional previous year’s production” has the meaning given by subsection (4) below. (4) In this section “the notional previous year’s production” means the amount, in hectolitres, given by PY + GE where— - PY is the amount of beer produced in the group in the previous year, and - GE is the aggregate of the grossed-up amount of each estimate that— - (a) is an estimate for the purposes of section 36E(10) above of the amount of the production in the current year in a group brewery in which no beer was produced in the previous year, and - (b) is made no later than the time mentioned in subsection (1) above. (5) Where a group brewery was in use as beer-production premises during part only of the previous year, in calculating PY for the purposes of subsection (4) above the amount of beer produced in that brewery in the previous year shall be taken to have been— $$AD×365$where—A is the amount of beer actually produced in the previous year in that brewery, andD is the number of days in that part of the previous year.$ (6) Subsection (7) below applies if— (a) beer was produced in at least one group brewery in the previous year and the notional previous year’s production is not more than 5,000 hectolitres, or (b) no beer was produced in the group in the previous year and the aggregate of each estimate that— (i) is an estimate for the purposes of section 36E(10) above of the amount of a group brewery’s production in the current year, and (ii) is made no later than the time mentioned in subsection (1) above, is not more than 5,000 hectolitres. (7) If this subsection applies, “the brewery rate” is 50% of the standard rate at the time mentioned in subsection (1) above; but this is subject to rounding under subsection (10) below. (8) Subsection (9) below applies if— (a) beer was produced in at least one group brewery in the previous year and the notional previous year’s production is more than 5,000 hectolitres but not more than 30,000 hectolitres, or (b) no beer was produced in the group in the previous year and the aggregate mentioned in subsection (6)(b) above is more than 5,000 hectolitres but not more than 30,000 hectolitres. (9) If this subsection applies, “the brewery rate” is, subject to rounding under subsection (10) below, given by— $$P-2,500P×the standard rate$where—if this subsection applies by reason of subsection (8)(a) above, P is the previous year’s notional production,if this subsection applies by reason of subsection (8)(b) above, P is the amount, in hectolitres, of the aggregate mentioned in subsection (6)(b) above, and“the standard rate” means the standard beer duty rate at the time mentioned in subsection (1) above.$ (10) Where a rate given by subsection (7) or (9) above would (apart from this subsection) not be a whole number of pennies, the rate given by that subsection shall be taken to be the rate actually given by that subsection rounded up to the nearest penny. (36G) (1) Subsection (3) below applies if— (a) duty is charged by section 36 above on any beer, and (b) it appears at the excise duty point that the beer is small brewery beer for the purposes of section 36(1AA) above, but (c) it turns out that the beer was not small brewery beer for those purposes (because, for example, circumstances were not as they appeared at that point or they subsequently changed). (2) Subsection (3) below also applies if— (a) duty is charged by section 36 above on any beer that is small brewery beer for the purposes of section 36(1AA) above, and (b) the rate of duty that at the excise duty point appeared to be the correct rate turns out to have been lower than the correct rate (because, for example, circumstances were not as they appeared at that point or they subsequently changed). (3) In any such case the Commissioners— (a) may assess the amount that is the difference between— (i) the actual amount of the duty charged on the beer by section 36 above, and (ii) the lower amount that, at the excise duty point, appeared to be the amount charged, as being excise duty due from the person liable to pay the duty charged on the beer by section 36 above, and (b) may notify him or his representative accordingly. (4) Where two or more persons are liable to pay the duty charged on the beer— (a) the reference in subsection (3)(a) above to the person liable to pay the duty is to any one or more of those persons, and (b) the reference in subsection (3)(b) above to notifying the person liable or his representative is to notifying each person assessed or his representative. (36H) (1) The Treasury may by order made by statutory instrument make provision amending this Act for the purpose of causing excise duty to be charged on a description of beer— (a) at a reduced rate instead of at the standard rate; (b) at the standard rate instead of at a reduced rate; (c) at a different reduced rate. (2) In this section— - “reduced rate” means a rate lower than the standard rate, and - “the standard rate” means the rate specified by section 36(1AA)(a) above. (3) An order under subsection (1) above may— (a) make different provision for different cases; (b) make such consequential amendments in this Act and other enactments as appear to the Treasury to be necessary or expedient; (c) make such other consequential provision, and such incidental and transitional provision, as appears to the Treasury to be necessary or expedient. (4) A statutory instrument by which there is made an order under subsection (1) above shall be laid before the House of Commons after being made. Unless the instrument is approved by the House of Commons before the expiration of 28 days beginning with the date on which the instrument was made, the order shall cease to have effect on the expiration of that period. Where the order so ceases to have effect, that does not prejudice— (a) anything previously done under the order, or (b) the making of a new order. In reckoning any such period of 28 days, no account shall be taken of any time during which Parliament is dissolved or prorogued or during which the House of Commons is adjourned for more than 4 days.

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3

In section 49(1) of the Alcoholic Liquor Duties Act 1979 (c. 4) (beer regulations), after paragraph (j) insert—

(k) requiring the production of certificates as to matters relating to beer imported into the United Kingdom and the beer’s production and producer, whether as alternative conditions for charging the duty on the beer at a rate lower than that specified by section 36(1AA)(a) above or as evidence that conditions for charging the duty at such a rate are satisfied.

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4

• (1) The Finance Act 1994 (c. 9) is amended as follows.

• (2) In section 12A(3)(bb) (recovery of amounts assessed under the Alcoholic Liquor Duties Act 1979), for “or 11" substitute “ , 11 or 36G ”.

• (3) In section 12B(2) (meaning of “relevant time" in section 12A), after paragraph (eb) insert—

(ec) in the case of an assessment under section 36G of that Act, the the time at which the requirement to pay the duty took effect (which time, in a case where there was an excise duty point for the beer fixed under section 1 of the Finance (No. 2) Act 1992, is that excise duty point);

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• (4) In section 14(1)(ba) (review of assessments), for “or 11" substitute “ , 11 or 36G ”.

SCHEDULE 2

Introduction

1

The Hydrocarbon Oil Duties Act 1979 (c. 5) is amended as follows.

Biodiesel and bioblend not to be treated as fuel substitute

2

In section 6A(1) (fuel substitutes: charge of duty) after “which is not hydrocarbon oil" insert “ , biodiesel or bioblend ”.

Exclusion of bioblend from rebates on heavy oil

3

In section 11 (rebate on heavy oil), after subsection (5) insert—

(6) No rebate shall be allowed under this section in respect of bioblend.

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Repayment of duty in case of biodiesel used otherwise than as road fuel

4

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

Mixing biodiesel and rebated heavy oil

5

• (1) In section 20AAA (mixing of rebated oil), after subsection (2A) insert—

(2B) Where a mixture is produced in contravention of Part 2B of Schedule 2A to this Act, a duty of excise shall be charged on the mixture.

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• (2) In section 20AAA(3) (producer of mixture liable to pay duty), for “or (2A)" substitute “ , (2A) or (2B) ”.

• (3) After Part 2A of Schedule 2A (mixing of rebated oil) insert—

(7B) (1) A mixture is produced in contravention of this paragraph if it is produced by mixing— (a) biodiesel or a substance containing biodiesel, and (b) rebated heavy oil. (2) In sub-paragraph (1)(b) above “rebated heavy oil” means heavy oil in respect of which a rebate has been allowed under section 11 of this Act.

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• (4) In paragraph 9(1A) of that Schedule (rates of duty for mixtures of heavy oil), after “subsection (2A)" insert “ or (2B) ”.

• (5) In paragraph 10(1) of that Schedule (credit for duty paid on ingredients of mixture), after “section 6" insert “ , 6AA, 6AB or 6A ”.

• (6) In section 20AAB (mixing of rebated oil: supplementary), in subsection (1)(a) for “or (2A)" substitute “ , (2A) or (2B) ”.

• (7) In section 22 (prohibition on use of petrol substitutes on which duty has not been paid), after subsection (1) insert—

(1AA) Where any person— (a) puts any biodiesel to a chargeable use (within the meaning of section 6AA above), and (b) knows or has reasonable cause to believe that there is duty charged under section 6AA above on that biodiesel which has not been paid and is not lawfully deferred, his putting the biodiesel to that use shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any goods in respect of which any person contravenes this subsection shall be liable to forfeiture.

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• (8) In section 22(1A) (section 10 of the Finance Act 1994 does not apply), after “subsection (1)" insert “ or (1AA) ”.

Interpretation

6

In section 27(1) (interpretation) at the appropriate places insert—

“bioblend” has the meaning given by section 6AB(2) above;

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Provision in relation to bioblend corresponding to that made by section 6 of the Finance Act 1998 in relation to section 6 of the Hydrocarbon Oil Duties Act 1979

7

• (1) In section 6AB (which charges excise duty on bioblend and is inserted by section 5 of this Act), in subsection (1), omit the words from “and delivered" to the end.

• (2) For subsection (6) of that section substitute—

(6) Where— (a) imported bioblend is removed to relevant premises, (b) the bioblend undergoes a production process at those premises or any other relevant premises, and (c) any duty charged on the importation of the bioblend has not become payable at any time before the production time, the duty charged on importation shall not become payable at any time after the production time. (7) In subsection (6) above— - “the production time” means the time at which the bioblend undergoes the production process; and - “relevant premises” means— 1. a refinery, 2. other premises used for the production of hydrocarbon oil, or 3. premises of such description as may be specified in regulations made by the Commissioners. (8) For the purposes of subsection (6) above, bioblend undergoes a production process if— (a) hydrocarbon oil, or bioblend, of any description, or biodiesel, is obtained from it, or (b) it is subjected to any process of purification or blending.

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SCHEDULE 3

Part 1 — Regulating traders in rebated heavy oil

1

In the Hydrocarbon Oil Duties Act 1979 (c. 5), after section 23 insert—

(23A) (1) If a revenue trader who is not a registered excise dealer and shipper— (a) buys or sells controlled oil in the course of a trade or business, or (b) in the course of a trade or business deals in controlled oil, his buying or selling, or dealing in, the oil shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). (2) Subsection (1) above does not apply to the buying of oil by a revenue trader if— (a) the oil is for use by the trader, and (b) that use does not involve selling or dealing in hydrocarbon oil. (3) Subsection (1) above does not apply to the selling of oil by a revenue trader if— (a) that oil was for use by the trader, (b) that use did not involve selling or dealing in hydrocarbon oil, (c) that use came to an end before the oil was used, and (d) the oil is sold after the use ends. (4) Where a revenue trader who is not a registered excise dealer and shipper is entitled to the possession of any controlled oil, the oil is liable to forfeiture. (5) Subsection (4) above does not apply to oil if— (a) that oil is for use by the revenue trader, and (b) that use does not involve selling or dealing in hydrocarbon oil. (6) Subsection (4) above does not apply to oil if— (a) the oil was for use by the revenue trader, (b) that use did not involve selling or dealing in hydrocarbon oil, (c) that use has come to an end, (d) that use came to an end before the oil was used, and (e) the oil is being held pending sale or other disposal. (7) Where oil is liable to forfeiture by virtue of subsection (4) above— (a) anything mixed with the oil, (b) any container in which the oil (and anything mixed with it) is kept, and (c) any equipment kept for dispensing the contents of any such container, is liable to forfeiture. (23B) (1) The Commissioners may by regulations make provision for— (a) exceptions to section 23A(1) above in addition to those allowed by section 23A(2) and (3) above; (b) exceptions to section 23A(4) above in addition to those allowed by section 23A(5) and (6) above; (c) exceptions to section 23A(7) above. (2) Regulations under subsection (1) above may provide for exceptions allowed by such regulations to have effect subject to conditions— (a) specified by such regulations; (b) specified by the Commissioners under such regulations.

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2

In section 100H(1) of the Customs and Excise Management Act 1979 (c. 2) (particular provision that may be made by registered excise dealers and shippers regulations), after paragraph (n) insert—

(p) authorised by section 24AA of the Hydrocarbon Oil Duties Act 1979 (regulation of traders in controlled oil).

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3

In the Hydrocarbon Oil Duties Act 1979 (c. 5), after section 24 insert—

(24AA) (1) For the purposes of section 100H(1)(p) of the Management Act (registered excise dealers and shippers regulations may, in particular, make provision authorised by this section), this section authorises provision— (a) requiring traders in controlled oil to notify prescribed information; (b) requiring traders in controlled oil to make prescribed returns; (c) authorising a trader in controlled oil to carry out or arrange for the carrying out of any prescribed activity falling within section 100H(1)(b) of the Management Act in relation to controlled oil, but subject to prescribed conditions or restrictions; (d) requiring a trader in controlled oil to give security by prescribed means for amounts that may become due from him by way of repayment of rebate; (e) for taking into account, in determining whether a trader in controlled oil has— (i) contravened any provision of registered excise dealers and shippers regulations, or (ii) failed to comply with any prescribed condition, restriction or requirement, the extent to which the trader has followed guidance issued by the Commissioners (including guidance issued after the making of provision under this paragraph referring to it). (2) In this section— - “prescribed” has the meaning given by section 100H(3) of the Management Act; - “trader in controlled oil” means a registered excise dealer and shipper carrying on a trade or business that consists of or includes the dealing in, buying or selling of controlled oil.

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4

• (1) Section 27 of the Hydrocarbon Oil Duties Act 1979 (c. 5) (interpretation) is amended as follows.

• (2) In subsection (1) insert (at the appropriate place)—

“controlled oil” means hydrocarbon oil in respect of which a rebate has been allowed under section 11(1)(b), (ba) or (c) or 13AA;

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• (3) In the Table set out in subsection (3) (expressions used in the Act that have a meaning given by another Act included in the Customs and Excise Acts 1979), under the heading “Management Act" insert (at the appropriate places)—

“registered excise dealer and shipper"

,

and

“revenue trader"

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Part 2 — Minor amendments relating to rebates

5

The Hydrocarbon Oil Duties Act 1979 is amended as follows.

6

In section 12(1) (no rebate allowed on heavy oil intended for use in a road vehicle), after “no rebate" insert “ under section 11 above ”.

7

In section 12(2) (oil not to be used in road vehicles if rebate has been allowed under section 11(1) or 13AA(1)), for “section 11(1)" substitute “ section 11 ”.

8

In section 24(2) (regulations made for the purposes of section 12 or 13AA), for “under subsection (2) of that section" substitute “ under subsection (2) of section 12, or subsection (3) of section 13AA, ”.

9

In section 27(1) (interpretation), in the definition of “rebate", after “section 11," insert “ 13AA, ”.

SCHEDULE 4

Part 1 — Amendments of the Betting and Gaming Duties Act 1981

1

The Betting and Gaming Duties Act 1981 (c. 63) is amended as follows.

2

For sections 6 to 8 (pool betting duty: charge, rate and payment) substitute—

Pool betting duty (6) A duty of excise to be known as pool betting duty shall be charged in accordance with sections 7 to 8C. (7) (1) If the amount of a person’s net pool betting receipts for an accounting period is greater than zero, pool betting duty is charged on those receipts. (2) The amount of that duty is 15 per cent of the amount of the receipts. (7A) For the purposes of section 7, the amount of a person’s net pool betting receipts for an accounting period is— $$S+E-W$where—S is the aggregate of amounts falling due to the person in the accounting period in respect of dutiable pool bets,E is the aggregate of expenses and profits falling within section 7E(2) that are attributable to the accounting period, andW is the aggregate of amounts paid by the person in the accounting period by way of winnings on dutiable pool bets (irrespective of when the bets were made or determined).$ (7B) (1) For the purposes of a calculation under section 7A of the amount of a person’s net pool betting receipts for any accounting period, a bet (wherever made) is a “dutiable pool bet” if— (a) the bet is made by way of pool betting, and (b) the following conditions are satisfied. (2) The first condition is that— (a) the bet is made by means of a totalisator situated in the United Kingdom and that person is the operator, or (b) the bet is made otherwise than by means of a totalisator and that person is the promoter and is in the United Kingdom. (3) The second condition is that the bet is not— (a) made by way of sponsored pool betting, (b) made as mentioned in section 4(3), or (c) made for community benefit. (4) The third condition is that if the bet was made before 31st March 2002, at least one event to which it relates takes place on or after that date. (7C) (1) This section applies for the purpose of calculating S in a calculation under section 7A. (2) Any payment that entitles a person to make a bet shall, if he makes the bet, be treated as stake money on the bet. (3) All payments made— (a) for or on account of or in connection with bets that are dutiable pool bets for the purposes of the calculation, (b) in addition to the stake money, and (c) by the persons making the bets, shall be treated as amounts due in respect of the bets except in so far as the contrary is proved by the person whose net pool betting receipts are being calculated. (7D) (1) Subsections (2) to (5) apply for the purpose of calculating S in a calculation under section 7A but have effect subject to any regulations under subsection (6). (2) Where— (a) a person makes a bet, and (b) the bet relates to a single event, or to two or more events all taking place on the same day, any sum due to a person in respect of the bet shall be treated as falling due on the day on which the event or events take place. (3) Where— (a) a person makes a bet, and (b) subsection (2) does not apply, any sum due to a person in respect of the bet shall (subject to subsection (5)) be treated as falling due when the bet is made. (4) Subsections (2) and (3) have effect in relation to a sum irrespective of when it is actually paid or required to be paid (even where a sum that those subsections require to be treated as falling due on or after 31st March 2002 was actually paid, or required to be paid, before that date). (5) As respects a bet made before 31st March 2002 that relates to events at least one of which takes place before that date and at least one of which takes place on or after that date, any sum paid on or after that date in respect of the bet shall be treated as falling due when it is paid. (6) The Commissioners may by regulations make provision as to when any sum due to a person in respect of a bet is to be treated as falling due for the purpose of calculating S in a calculation under section 7A. (7) Provision made by regulations under subsection (6) may not provide for a sum due to a person in respect of a bet to be treated as falling due— (a) earlier than when the bet is made, or (b) later than when the bet is determined. (8) Regulations made under subsection (6) may— (a) make provision that applies generally or only in relation to a specified description of bet; (b) make different provision for different purposes; (c) make provision relating to bets made before the regulations are made (including bets made before the passing of the Finance Act 2002); (d) make transitional provision. (7E) (1) Subsections (2) and (3) apply for the purpose of calculating E in a calculation under section 7A. (2) The expenses and profits falling within this subsection are (subject to subsection (3))— (a) those of the person whose net pool betting receipts are being calculated, and (b) those of any other person concerned with or benefiting from the promotion of the betting concerned. (3) Expenses and profits do not fall within subsection (2) so far as they are— (a) provided out of amounts due, in respect of bets that are dutiable pool bets for the purposes of the calculation, to the person whose net pool betting receipts are being calculated, or (b) referable to matters other than— (i) the promotion or management of the betting concerned, or (ii) activities ancillary to, or connected with, such promotion or management. (4) The Commissioners may by regulations make provision as to the accounting period to which expenses and profits falling within subsection (2) are to be treated as attributable for the purpose of calculating E in a calculation under section 7A. (5) Regulations made under subsection (4) may— (a) make provision that applies generally or only in relation to a specified description of bet; (b) make different provision for different purposes; (c) make provision applying in respect of expenses incurred, and profits accruing, before the regulations are made (including any incurred or accruing before the passing of the Finance Act 2002); (d) make transitional provision. (7F) (1) Subsections (2) to (5) apply for the purpose of calculating W in a calculation under section 7A. (2) The reference to paying an amount to a person includes a reference to holding it in an account if the person is notified that the amount is being held for him in the account and that he is entitled to withdraw it on demand. (3) The return of a stake shall be treated as a payment by way of winnings. (4) Only payments of money shall be taken into account. (5) Where a bet made before 31st March 2002 relates to events at least one of which takes place before that date and at least one of which takes place on or after that date, no account shall be taken of any payment by way of winnings on the bet. (6) The Commissioners may by regulations make provision as to when amounts paid by way of winnings are to be treated as being paid for the purposes of calculating W in a calculation under section 7A. (7) Regulations made under subsection (6) may— (a) make provision that applies generally or only in relation to a specified description of bet; (b) make different provision for different purposes; (c) make provision applying in respect of amounts paid before the regulations are made (including amounts paid before the passing of the Finance Act 2002); (d) make transitional provision. (8) (1) Pool betting duty charged on a person’s net pool betting receipts for an accounting period— (a) becomes due at the end of the period, (b) shall be paid by the person, and (c) shall, subject to any regulations under subsection (3) and any directions under paragraph 3 of Schedule 1 to this Act, be paid when it becomes due. (2) Pool betting duty that is due to be paid may be recovered from the following persons as if they were jointly and severally liable to pay the duty— (a) the person on whose net pool betting receipts the duty is charged (“the primary payer”); (b) a person responsible for the management of any business in the course of which any bets have been made that are dutiable pool bets for the purposes of calculations under section 7A of the amount of the primary payer’s net pool betting receipts for any accounting period; (c) a person responsible for the management of any totalisator used for the purposes of any such business; (d) where a person within any of paragraphs (a) to (c) is a company, a director. (3) The Commissioners may by regulations— (a) make provision as to when pool betting duty is to be paid (including provision repealing paragraph 3 of Schedule 1 to this Act and the reference to that paragraph in subsection (1)(c)); (b) make provision as to how pool betting duty is to be paid. (4) Regulations made under subsection (3) may— (a) make provision that applies generally or only in relation to a specified person or class of person; (b) make different provision for different purposes; (c) make transitional provision. (8A) (1) For the purposes of sections 6 to 8 (but subject to any direction under subsection (3)), a bet is made “for community benefit” if— (a) the promoter of the betting concerned is a community society or is bound to pay all benefits accruing from the betting to such a society, and (b) the person making the bet knows, when making it, that the purpose of the betting is to benefit such a society. (2) In the case of a bet made by means of a totalisator, the reference in subsection (1) to the promoter of the betting concerned is a reference to the operator. (3) The Commissioners may direct that any bet specified by the direction, or of a description so specified, is not a bet made for community benefit. (4) The power conferred by subsection (3) may not be exercised unless the Commissioners consider that an unreasonably large part of the amounts paid in respect of the bets concerned will, or may, be applied otherwise than— (a) in the payment of winnings, or (b) for the benefit of a community society. (5) In this section “community society” means— (a) a society established and conducted for charitable purposes only, or (b) a society established and conducted wholly or mainly for the support of athletic sports or athletic games and not established or conducted for purposes of private gain. (6) In this section “society” includes any club, institution, organisation or association of persons, by whatever name called. (8B) (1) For the purposes of sections 6 to 8— (a) each period that ends with the last Saturday in a calendar month, and begins with the Sunday immediately following the previous such Saturday, is an accounting period, but (b) the Commissioners may by regulations make provision for some other specified period to be an accounting period. (2) Regulations made under subsection (1)(b) may— (a) make provision that applies generally or only in relation to a specified person or class of person; (b) make different provision for different purposes; (c) make transitional provision. (8C) (1) For the purposes of sections 6 to 8A, “bet” does not include the taking of a ticket or chance in a lottery. (2) Where payments are made for the chance of winning any money or money’s worth on terms under which the persons making the payments have a power of selection that may (directly or indirectly) determine the winner, those payments shall be treated as bets for the purposes of sections 6 to 8A notwithstanding that the power is not exercised. (3) Subsection (2) has effect subject to section 12(3). (4) Where any payment entitles a person to take part in a transaction that is, on his part only, not a bet made by way of pool betting by reason of his not in fact making any stake as if the transaction were such a bet, the transaction shall be treated as such a bet for the purposes of pool betting duty (and section 7C(3) shall apply to any such payment).

.

3

In section 2(2) (bets to which section 2(1) does not apply)—

• (a) in paragraph (b), after “bet," insert “ or ”, and

• (b) omit paragraph (d) and the word “or" preceding it.

4

In section 4(6) (bets to which subsections (1) to (3) do not apply), for the words from “do not apply" to the end substitute “ do not apply to on-course bets. ”.

5

In section 9(2) (bets to which section applies), omit “or coupon betting" (in both places).

6

In section 9(3) (bets to which section does not apply)—

• (a) in paragraph (a), omit “or coupon betting",

• (b) for sub-paragraphs (i) to (iv) of paragraph (a) substitute—

(i) the bet is not made by means of a totalisator, and (ii) the promoter is in the Isle of Man; or

,

and

• (c) in paragraph (aa)(i), omit “or coupon betting".

7

For section 9(6) substitute—

(6) Section 8C(1) to (3) above shall have effect for the purposes of subsections (2)(a) and (5) above as it has effect for the purposes of sections 6 to 8A above.

.

8

Omit section 11 (definition of coupon betting).

9

In section 12(3) (interpretation of sections 1 to 10 etc), omit “(except in sections 6, 7, 8, 9(2)(a) and 9(5) in their application to coupon betting)".

10

• (1) Schedule 1 (administration etc of betting duties) is amended as follows.

• (2) In paragraph 1, in the definition of “pool betting business", at the end insert “ or would or might involve such sums becoming so payable if receipts from bets made for community benefit (as defined by section 8A of this Act) were not excluded from that duty. ”.

• (3) After paragraph 2 insert—

(2A) (1) Pool betting duty shall be under the care and management of the Commissioners. (2) Without prejudice to any other provision of this Schedule, the Commissioners may make regulations providing for any matter for which provision appears to them to be necessary for the administration or enforcement of pool betting duty or for the protection of the revenue from pool betting duty. (3) Regulations under sub-paragraph (2) above may in particular— (a) provide for payments on account of pool betting duty which may become chargeable to be made in advance; (b) provide for the giving of security by means of a deposit or otherwise for duty due or to become due.

.

• (4) In paragraph 3, omit “shall be under the care and management of the Commissioners, and".

• (5) In paragraph 4(2), for “sub-paragraphs (3) and (4)" substitute “ sub-paragraph (3) ”.

• (6) Omit paragraph 4(4) to (6).

• (7) In paragraph 5(1), for “made entry or given notice in accordance with paragraph 4(2) or (4)" substitute “ made entry in accordance with paragraph 4(2) ”.

• (8) Renumber paragraph (b) of paragraph 5(2) as paragraph 5(3).

• (9) In what remains of paragraph 5(2) after that renumbering, for the words from “paragraph 12(3) below, except that" to the end substitute “ sub-paragraph (3) below. ”.

• (10) In paragraph 6(2), omit paragraph (b).

• (11) Omit paragraphs 8 and 12.

• (12) In paragraph 13(1)(b), after “any of paragraphs 2," insert “ 2A, ”.

• (13) In paragraph 14(1), omit the words after paragraph (b).

• (14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 2 — Minor amendments and transitional provisions

Amendment in the Excise Duties (Surcharges or Rebates) Act 1979

11

In section 1(3) of the Excise Duties (Surcharges or Rebates) Act 1979 (c. 8) (liability to duty other than pool betting duty adjusted if order under section in force when duty becomes due), omit the words from “, except that if the duty is pool betting duty" to the end.

Amendments in Schedule 5 to the Finance Act 1994

12

• (1) Paragraph 6 of Schedule 5 to the Finance Act 1994 (c. 9) (decisions under the Betting and Gaming Duties Act 1981 that are subject to review and appeal) is amended as follows.

• (2) In sub-paragraph (2)(a) (decisions in connection with requiring security for duty)—

• (a) after “regulations under paragraph 2" insert “ or 2A ”, and

• (b) after “in relation to general betting duty" insert “ or pool betting duty ”.

• (3) After sub-paragraph (2) insert—

(3) Any decision consisting in the giving of a direction under section 8A(3) of the Betting and Gaming Duties Act 1981 (pool betting duty: direction that bet is not made for community benefit).

.

Duty charged before 31st March 2002

13

• (1) If—

• (a) stake money is paid before 31st March 2002 in respect of a bet to which this paragraph applies, and

• (b) pool betting duty charged on that money before that date is not paid before 24th April 2002,

that duty ceases on 24th April 2002 to be charged on that money.

• (2) If—

• (a) stake money is paid before 31st March 2002 in respect of such a bet, and

• (b) pool betting duty charged on that money before that date is paid before 24th April 2002,

the person who paid that duty becomes entitled on 24th April 2002 to a credit equal to the amount of the duty.

• (3) Effect is given to such a credit by setting it (until fully utilised) against pool betting duty that the person is liable to pay in respect of accounting periods for the purposes of pool betting duty that begin on or after 31st March 2002 (taking earlier such periods before later ones).

• (4) Such a credit does not—

• (a) carry interest,

• (b) affect the payability of the duty mentioned in sub-paragraph (2), or

• (c) entitle any person to any payment in respect of the credit.

• (5) This paragraph applies to a bet if—

• (a) it is a dutiable pool bet for the purposes of a calculation, under the section 7A of the Betting and Gaming Duties Act 1981 inserted by this Schedule, of the amount of a person’s net pool betting receipts for any accounting period, and

• (b) it is made before 31st March 2002 but all the events to which it relates take place on or after that date.

Notifications under paragraph 4(4) of Schedule 1 to that Act of premises used in connection with coupon betting

14

Any notification under paragraph 4(4) of Schedule 1 to the Betting and Gaming Duties Act 1981 (c. 63) (duty to notify premises used for purposes of pool betting business in connection only with coupon betting) that is effective immediately before 24th April 2002 shall on and after that date have effect (until withdrawn) as a notification made on 31st March 2002 under paragraph 4(3) of that Schedule (duty to notify premises used for purposes of betting business in connection only with general betting).

SCHEDULE 5

1

The Vehicle Excise and Registration Act 1994 (c. 22) is amended as follows.

2

For section 1(1) substitute—

(1) A duty of excise (“vehicle excise duty”) shall be charged in respect of every mechanically propelled vehicle that— (a) is registered under this Act (see section 21), or (b) is not so registered but is used, or kept, on a public road in the United Kingdom. (1A) Vehicle excise duty shall also be charged in respect of every thing (whether or not it is a vehicle) that has been, but has ceased to be, a mechanically propelled vehicle and— (a) is registered under this Act, or (b) is not so registered but is used, or kept, on a public road in the United Kingdom. (1B) In the following provisions of this Act “vehicle” means— (a) a mechanically propelled vehicle, or (b) any thing (whether or not it is a vehicle) that has been, but has ceased to be, a mechanically propelled vehicle. (1C) Vehicle excise duty charged in respect of a vehicle by subsection (1)(a) or (1A)(a) shall be paid on a licence to be taken out— (a) by the person in whose name the vehicle is registered under this Act, or (b) if that person is not the person keeping the vehicle, by either of those persons. (1D) Vehicle excise duty charged in respect of a vehicle by subsection (1)(b) or (1A)(b) shall be paid on a licence to be taken out by the person keeping the vehicle.

.

3

For section 2(2) to (4) (rates where duty charged in respect of keeping but not use) substitute—

(2) Subsection (1) applies subject to the following provisions of this section. (3) Where vehicle excise duty is charged by section 1(1)(b) or (1A)(b) in respect of the keeping of a vehicle on a road (and not in respect of its use), duty in respect of such keeping is chargeable by reference to the general rate currently specified in paragraph 1(2) of Schedule 1. (4) Subsections (5) and (6) apply where— (a) vehicle excise duty is charged by section 1(1)(a) or (1A)(a) in respect of a vehicle, and (b) were the vehicle not registered under this Act, duty would not be charged by section 1(1)(b) or (1A)(b) in respect of the use of the vehicle on a road. (5) Where one or more use licences have previously been issued for the vehicle, the duty charged by section 1(1)(a) or (1A)(a) is chargeable by reference to the annual rate currently applicable to a vehicle of the same description as that of the vehicle on the occasion of the issue of that licence (or the last of those licences). (6) In any other case, the duty charged by section 1(1)(a) or (1A)(a) is chargeable by reference to the general rate currently specified in paragraph 1(2) of Schedule 1. (7) In subsection (5) “use licence” means— (a) a vehicle licence issued for the use of a vehicle, or (b) a vehicle licence that is issued by reason of a vehicle being registered under this Act but which would have been issued for the use of the vehicle if the vehicle had not been registered under this Act.

.

4

For section 7(4) (vehicle licence valid only for vehicle for which it is issued) substitute—

(4) A vehicle licence is issued for the vehicle specified in the application for the licence (and for no other).

.

5

After section 7 insert—

(7A) (1) Regulations may make provision for a supplement of a prescribed amount to be payable in prescribed cases where— (a) a vehicle licence taken out for a vehicle expires, and (b) no vehicle licence is issued for the vehicle— (i) before the end of such period beginning with the expiry of the expired licence as may be prescribed, and (ii) for a period beginning with that expiry. (2) A supplement under this section— (a) shall be payable by such person, or jointly and severally by such persons, as may be prescribed; (b) shall become payable at such time as may be prescribed; (c) may be of an amount that varies according to the length of the period between— (i) the expiry of the licence by reason of whose non-renewal the supplement becomes payable, and (ii) the time at which the supplement is paid or that licence is renewed. (3) A supplement under this section that has become payable— (a) is in addition to any vehicle excise duty charged in respect of the vehicle concerned; (b) does not cease to be payable by reason of a vehicle licence being taken out for the vehicle after the supplement has become payable; (c) may, without prejudice to section 6 or 7B(2) and (3) or any other provision of this Act, be recovered as a debt due to the Crown. (4) In this section— (a) references to the expiry of a vehicle licence include a reference to— (i) its surrender, and (ii) its being treated as no longer in force for the purposes of subsection (2) of section 31A by subsection (4) of that section; (b) “prescribed” means prescribed by, or determined in accordance with, regulations; (c) “regulations” means regulations made by the Secretary of State with the consent of the Treasury. (5) No regulations to which subsection (6) applies shall be made under this section unless a draft of the regulations has been laid before, and approved by a resolution of, each House of Parliament. (6) This subsection applies to regulations under this section that— (a) provide for a supplement to be payable in a case where one would not otherwise be payable, (b) increase the amount of a supplement, (c) provide for a supplement to become payable earlier than it would otherwise be payable, or (d) provide for a supplement to be payable by a person by whom the supplement would not otherwise be payable. (7B) (1) The Secretary of State may by regulations make provision for notifying the person in whose name a vehicle is registered under this Act about— (a) any supplement under section 7A that may or has become payable on non-renewal of a vehicle licence for the vehicle; (b) when failure to renew a vehicle licence may result in the person being guilty of an offence under section 31A. (2) The Secretary of State may by regulations make provision— (a) for assessing an amount of supplement due under section 7A from any person and for notifying that amount to that person or any person acting in a representative capacity in relation to that person; (b) for an amount assessed and notified under such regulations to be deemed to be an amount of vehicle excise duty due from the person assessed and recoverable accordingly; (c) for review of decisions under such regulations and for appeals with respect to such decisions or decisions on such reviews. (3) Regulations under subsection (2) may, in particular, make provision that, subject to any modifications that the Secretary of State considers appropriate, corresponds or is similar to— (a) any provision made by sections 12A and 12B of the Finance Act 1994 (assessments related to excise duty matters), or (b) any provision made by sections 14 to 16 of that Act (customs and excise reviews and appeals). (4) Sums received by way of supplements under section 7A shall be paid into the Consolidated Fund.

.

6

• (1) In section 22 (registration regulations), in subsection (1D) (power to require details about unlicensed vehicles), after paragraph (a) insert—

(aa) who does not renew a vehicle licence for a vehicle registered under this Act in his name,

.

• (2) After that subsection insert—

(1DA) For the purposes of subsection (1D)(aa) a person shall be regarded as not renewing a vehicle licence for a vehicle registered in his name if— (a) a vehicle for which a vehicle licence is in force is registered in his name, and (b) he does not, at such time as may be prescribed by the regulations or within such period as may be so prescribed, take out a vehicle licence to have effect from the expiry of the vehicle licence mentioned in paragraph (a).

.

7

In section 29(7) (rate of duty by reference to which penalty is calculated), for “section 2(2) to (4)" substitute “ section 2(3) to (6) ”.

8

After section 31 insert—

Offence of being registered keeper of unlicensed vehicle (31A) (1) If a vehicle registered under this Act is unlicensed, the person in whose name the vehicle is registered is guilty of an offence. (2) For the purposes of this section a vehicle is unlicensed if no vehicle licence or trade licence is in force for or in respect of the vehicle. (3) Subsection (1) does not apply to a vehicle if— (a) it is an exempt vehicle in respect of which regulations under this Act require a nil licence to be in force and a nil licence is in force in respect of the vehicle, or (b) it is an exempt vehicle that is not one in respect of which regulations under this Act require a nil licence to be in force. (4) Where a vehicle for which a vehicle licence is in force is transferred by the holder of the licence to another person, the licence is to be treated for the purposes of subsection (2) as no longer in force unless it is delivered to the other person with the vehicle. (5) Where— (a) an application is made for a vehicle licence for any period, and (b) a temporary licence is issued pursuant to the application, subsection (4) does not apply to the licence applied for if, on a transfer of the vehicle during the currency of the temporary licence, the temporary licence is delivered with the vehicle to the transferee. (31B) (1) A person (“the registered keeper”) in whose name an unlicensed vehicle is registered at any particular time (“the relevant time”) does not commit an offence under section 31A at that time if any of the following conditions are satisfied. (2) The first condition is that the registered keeper— (a) is not at the relevant time the person keeping the vehicle, and (b) if previously he was the person keeping the vehicle, he has by the relevant time complied with any requirements under section 22(1)(d)— (i) that are prescribed for the purposes of this condition, and (ii) that he is required to have complied with by the relevant or any earlier time. (3) The second condition is that— (a) the registered keeper is at the relevant time the person keeping the vehicle, (b) at the relevant time the vehicle is neither kept nor used on a public road, and (c) the registered keeper has by the relevant time complied with any requirements under section 22(1D)— (i) that are prescribed for the purposes of this condition, and (ii) that he is required to have complied with by the relevant or any earlier time. (4) The third condition is that— (a) the vehicle has been stolen before the relevant time, (b) the vehicle has not been recovered by the relevant time, and (c) any requirements under subsection (6) that, in connection with the theft, are required to have been complied with by the relevant or any earlier time have been complied with by the relevant time. (5) The fourth condition is that the relevant time falls within a period (“the grace days”)— (a) beginning with the expiry of the last vehicle licence to be in force for the vehicle, and (b) of a prescribed length, and a vehicle licence for the vehicle is taken out within the grace days for a period beginning with the grace days. (6) The Secretary of State may by regulations make provision for the purposes of subsection (4)(c) as to the persons to whom, the times at which and the manner in which the theft of a vehicle is to be notified. (7) The Secretary of State may by regulations make provision amending this section for the purpose of providing for further exceptions to section 31A(1) (or varying or revoking any such further exceptions). (8) A person accused of an offence under section 31A(1) is not entitled to the benefit of an exception conferred by or under this section unless evidence is adduced that is sufficient to raise an issue with respect to that exception, but where evidence is so adduced it is for the prosecution to prove beyond reasonable doubt that the exception does not apply. (9) In this section— (a) references to the expiry of a vehicle licence include a reference to— (i) its surrender, and (ii) its being treated as no longer in force for the purposes of subsection (2) of section 31A by subsection (4) of that section; (b) “prescribed” means prescribed by regulations made by the Secretary of State. (31C) (1) A person guilty of an offence under section 31A(1) is liable on summary conviction to— (a) an excise penalty of— (i) level 3 on the standard scale, or (ii) five times the amount of vehicle excise duty chargeable in respect of the vehicle concerned, whichever is the greater; and (b) if subsection (3) applies to him, an excise penalty (in addition to any under paragraph (a)) of an amount that complies with subsection (2). (2) An amount complies with this subsection if it— (a) is not less than the greater of— (i) the maximum of the penalty to which the person is liable under subsection (1)(a), and (ii) the amount of the supplement (if any) that became payable by him by reason of non-renewal of the vehicle licence for the vehicle that last expired before the commission of the offence; and (b) is not more than the greatest of— (i) the maximum of the penalty to which the person is liable under subsection (1)(a), (ii) the amount mentioned in paragraph (a)(ii), and (iii) ten times the amount of vehicle excise duty chargeable in respect of the vehicle. (3) This subsection applies to the person if— (a) he was, at the time proceedings for the offence were commenced, the person in whose name the vehicle concerned was registered under this Act, and (b) that vehicle was unlicensed throughout the period beginning with the commission of the offence and ending with the commencement of those proceedings. (4) The amount of vehicle excise duty chargeable in respect of a vehicle is to be taken for the purposes of subsections (1) and (2) to be an amount equal to the annual rate of duty applicable to the vehicle at the date on which the offence was committed. (5) Where in the case of a vehicle kept (but not used) on a public road that annual rate differs from the annual rate by reference to which the vehicle was at that date chargeable under section 2(3) to (6), the amount of the vehicle excise duty chargeable in respect of the vehicle is to be taken for those purposes to be an amount equal to the latter rate. (6) In the case of a conviction for a continuing offence, the offence is to be taken for the purposes of subsections (4) and (5) to have been committed on the date or latest date to which the conviction relates. (7) In this section, references to the expiry of a vehicle licence include a reference to— (a) its surrender, and (b) its being treated as no longer in force for the purposes of subsection (2) of section 31A by subsection (4) of that section. Offences under sections 29 and 31A: supplementary

.

9

• (1) In section 32 (sections 29 to 31: supplementary), in subsection (1) (discharges to be treated as convictions)—

• (a) in the words before paragraph (a), after “section 29" insert “ or 31A ”, and

• (b) in the words after paragraph (c), after “sections 29 to 31" insert “ or (as the case may be) sections 31A to 31C ”.

• (2) In the heading of that section, for “31" substitute “ 31C ”.

10

In section 33(3)(b) (offences of not exhibiting licence are without prejudice to offences of not having a licence), after “sections 29" insert “ , 31A ”.

11

In section 34(4) (rate of duty by reference to which penalty is calculated), for “section 2(2) to (4)" substitute “ section 2(3) to (6) ”.

12

In section 47 (proceedings in England and Wales or Northern Ireland), in each of subsections (1) and (2)(a) (who may prosecute and time limit), after “section 29," insert “ 31A, ”.

13

In section 48(3)(a) (proceedings in Scotland: time limit), after “section 29," insert “ 31A, ”.

14

In section 53 (burden of proof of certain matters in proceedings for certain offences), after “section 29," insert “ 31A, ”.

15

In section 54 (single witness sufficient in Scottish proceedings), after “section 29" insert “ , 31A ”.

16

In section 57 (regulations), after subsection (7) insert—

(7A) Subsection (7) does not apply to a statutory instrument containing regulations under section 7A to which subsection (6) of that section applies.

.

17

In section 62(1) (definitions), for the definition of “vehicle" substitute—

“vehicle” shall be construed in accordance with section 1(1B);

.

SCHEDULE 6

Share options

1

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

Credit-tokens and non-cash vouchers

2

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3

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

Taxation of benefit where income received free of tax

4

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

Benefits in connection with termination of employment or change in duties or emoluments

5

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

Priority between charges under sections 148 and 595 of the Taxes Act 1988

6

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

SCHEDULE 7

The following Schedule is inserted after Schedule 7AA to the Taxation of Chargeable Gains Act 1992 (c. 12)—

SCHEDULE 8

Part 1 — New Schedule 7AC to the Taxation of Chargeable Gains Act 1992

1

The following Schedule is inserted after Schedule 7AB to the Taxation of Chargeable Gains Act 1992 (c. 12)—