Finance Act 2011

• (2) After subsection (1) insert—

(1A) The reference in subsection (1) to an oil licence or an interest in an oil licence includes all goodwill, and any intangible asset, which relates to, derives from or is connected with an oil licence or an interest in an oil licence.

• (3) In subsection (2), for “subsection (1)” substitute “ this section ”.

• (4) In subsection (4), for “subsection (1)” substitute “ this section ”.

• (5) The amendments made by this section have effect in relation to accounting periods beginning on or after 23 March 2011 (and, in relation to those accounting periods, are to be treated as always having had effect).

• (6) For the purposes of subsection (5), an accounting period beginning before, and ending on or after, 23 March 2011 is to be treated as if so much of the period as falls before that date, and so much of the period as falls on or after that date, were separate accounting periods.

Reduction of supplementary charge for certain new oil fields

63

• (1) In section 337 of CTA 2010 (initial licensee to hold a field allowance), in subsection (1), for “authorisation day” substitute “ accounting period in which the authorisation day falls ”.

• (2) For section 350 of that Act (meaning of “new oil field”) substitute—

(350) (1) In this Chapter “new oil field” means an oil field— (a) which is a qualifying oil field, and (b) whose development (in whole or in part) is authorised for the first time on or after 22 April 2009. (2) If all assets of an oil field which are relevant assets have been decommissioned, there is to be ignored for the purposes of subsection (1)(b) any authorisation in respect of that oil field which occurs before that decommissioning. (3) Sub-paragraphs (2) to (9) of paragraph 7 of Schedule 1 to OTA 1975 apply for the purpose of determining whether relevant assets of an oil field are decommissioned as they apply for the purpose of determining whether qualifying assets of a relevant area are decommissioned. (4) For the purposes of this section, an asset is a relevant asset of an oil field if— (a) it has at any time been a qualifying asset (within the meaning of the Oil Taxation Act 1983) in relation to any participator in the field, and (b) it has at any time been used for the purpose of winning oil from the field.

• (3) In section 357 of that Act (other definitions), in the definition of “authorisation day”, after “authorised” insert “ as mentioned in section 350(1)(b) ”.

• (4) The amendments made by this section have effect in relation to accounting periods ending on or after 1 April 2010.

• (5) Corresponding amendments, having effect in relation to accounting periods ending on or after 22 April 2009, are to be treated as having been made in Schedule 44 to FA 2009.

Chargeable gains: oil activities

64

Schedule 15 contains provisions about chargeable gains in relation to oil activities.

Part 4 — Pensions

Benefits under pension schemes

65

Schedule 16 contains provision about the benefits available under pension schemes and related matters.

Annual allowance charge

66

Schedule 17 contains provision about the annual allowance charge.

Lifetime allowance charge

67

Schedule 18 contains provision about the lifetime allowance charge.

Borrowing by section 67 pension scheme

68

• (1) Section 182 of FA 2004 (unauthorised borrowing) does not cause a section 67 pension scheme to be not authorised to borrow an amount for the purposes of meeting costs of establishing, administering or managing the pension scheme.

• (2) Accordingly, in the case of a section 67 pension scheme, references in sections 182 and 183 of FA 2004 to amounts previously borrowed do not include any amount previously borrowed for those purposes.

• (3) For the purposes of this section neither—

• (a) borrowing an amount for making investments for the purposes of a pension scheme, nor

• (b) borrowing an amount for making deposits with a view to deriving income for the purposes of a pension scheme (otherwise than prior to applying the amount for meeting costs of establishing, administering or managing the pension scheme),

is to be taken to be borrowing the amount for the purposes of meeting costs of establishing, administering or managing the pension scheme.

• (4) In this section “section 67 pension scheme” means a pension scheme which is established under section 67 of the Pensions Act 2008.

• (5) Section 163(2) of FA 2004 (meaning of “borrowing”) applies for the interpretation of this section.

• (6) This section is treated as having come into force on 6 April 2011.

Exemption from tax on interest on unpaid relevant contributions

69

• (1) ITTOIA 2005 is amended as follows.

• (2) In section 369(3)(e) (exemptions from income tax charge on income), after “loans,” insert “ unpaid relevant contributions, ”.

• (3) After section 753 insert—

(753A) (1) No liability to income tax arises in respect of interest paid in compliance with a requirement in a compliance notice or an unpaid contributions notice to pay interest in respect of unpaid relevant contributions. (2) In this section— - “compliance notice” means a notice under section 35 of the Pensions Act; - “the Pensions Act” means the Pensions Act 2008 or the Pensions (No.2) Act (Northern Ireland) 2008; - “unpaid contributions notice” means a notice under section 37 of the Pensions Act; - “unpaid relevant contributions” has the same meaning as in section 38(2)(a) of the Pensions Act.

Power to make further provision about section 67 pension scheme

70

• (1) The Treasury may by regulations make provision for and in connection with—

• (a) the application of the relevant taxes in relation to a pension scheme established under section 67 of the Pensions Act 2008, and

• (b) the application of the relevant taxes in relation to any person in connection with such a pension scheme.

• (2) The provision that may be made by regulations under this section includes provision imposing any of the relevant taxes (as well as provisions for exemptions or reliefs).

• (3) The relevant taxes are—

• (a) income tax,

• (b) capital gains tax,

• (c) corporation tax, and

• (d) inheritance tax.

• (4) Regulations under this section may include provision having effect in relation to any time before they are made if the provision does not increase any person's liability to tax.

• (5) Regulations under this section may include—

• (a) provision amending any enactment or instrument, and

• (b) consequential, supplementary and transitional provision.

• (6) Regulations under this section are to be made by statutory instrument.

• (7) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.

Tax provision consequential on Part 1 of Pensions Act 2008 etc

71

• (1) The Treasury may by regulations make provision in relation to any of the relevant taxes in consequence of Part 1 of the Pensions Act 2008 or Part 1 of the Pensions (No.2) Act (Northern Ireland) 2008.

• (2) The provision that may be made by regulations under this section includes provision imposing any of the relevant taxes (as well as provisions for exemptions or reliefs).

• (3) The relevant taxes are—

• (a) income tax,

• (b) capital gains tax,

• (c) corporation tax,

• (d) inheritance tax,

• (e) value added tax,

• (f) stamp duty land tax,

• (g) stamp duty, and

• (h) stamp duty reserve tax.

• (4) Regulations under this section may include provision having effect in relation to any time before they are made if the provision does not increase any person's liability to tax.

• (5) Regulations under this section may make different provision for different cases.

• (6) Regulations under this section may include—

• (a) provision amending any enactment or instrument, and

• (b) consequential, supplementary and transitional provision.

• (7) Regulations under this section are to be made by statutory instrument.

• (8) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.

Foreign pensions of UK residents

72

• (1) In Part 2 of TIOPA 2010 (double taxation relief), in Chapter 3 (miscellaneous provisions), after section 130 insert—

(130A) (1) Subsection (3) applies if double taxation arrangements make the provision, however expressed, mentioned in subsection (2). (2) The provision is that pensions and other similar remuneration which— (a) arise outside the United Kingdom, and (b) are paid to persons who are resident in the United Kingdom, are not to be subject to United Kingdom tax. (3) That provision does not prevent a pension or other similar remuneration of a person resident in the United Kingdom being chargeable to income tax if— (a) the pension or other similar remuneration is paid out of sums or assets that were the subject of a relevant transfer or related sums or assets, and (b) the relevant transfer or any transaction forming part of that transfer was, or formed part of, a tax avoidance scheme. (4) But nothing in subsection (3) prevents credit being allowed under Chapter 2 of this Part (double taxation relief by way of credit) against any tax so charged. (5) In determining whether a pension or other similar remuneration is paid out of sums or assets within subsection (3)(a), it is to be assumed that it is paid out of such sums or assets in priority to any other sums or assets. (6) A “relevant transfer”, in respect of any sums or assets, is a transaction or series of transactions as a result of which— (a) the sums or assets are transferred out of a pension scheme, and (b) the sums or assets or related sums or assets (or both) are transferred into the pension scheme under which the pension or other similar remuneration is paid. (7) A scheme is a “tax avoidance scheme” if the main purpose, or one of the main purposes, of any party to the scheme in entering into the scheme is to secure an income tax advantage for any person under this Part by virtue of provision mentioned in subsection (2) made by double taxation arrangements. (8) For the purposes of subsection (7)— (a) “scheme” includes any scheme, arrangements or understanding of any kind whatever, whether or not legally enforceable, involving a single transaction or two or more transactions, (b) it does not matter whether or not the double taxation arrangements were in existence at the time the tax avoidance scheme was entered into or given effect to, and (c) “income tax advantage” is to be construed in accordance with section 572A(3) to (5) of ITA 2007. (9) In this section— - “pension” and “other similar remuneration” have the same meaning as in the Model Tax Convention on Income and on Capital published (from time to time) by the Organisation for Economic Co-operation and Development; - “pension scheme” has the same meaning as in Part 4 of FA 2004 (see section 150 of that Act); - “related sums or assets”, in relation to other sums or assets (“the original sums or assets”), means sums or assets which arise, or (directly or indirectly) derive, from the original sums or assets or from sums or assets which so arise or derive.

• (2) The amendment made by this section has effect in relation to the tax year 2011-12 and subsequent tax years (and it does not matter whether the tax avoidance scheme was entered into or effected before, or on or after, 6 April 2011).

Part 5 — Bank levy

The bank levy

73

Schedule 19 contains provision for and in connection with the bank levy.

Part 6 — Other taxes

Value added tax

Business samples

74

• (1) In Schedule 4 to VATA 1994 (matters to be treated as supply of goods or services), paragraph 5 (transfer or disposal of goods forming part of the assets of a business) is amended as follows.

• (2) For sub-paragraph (2)(b) substitute—

(b) the provision to a person, otherwise than for a consideration, of a sample of goods.

• (3) Omit sub-paragraph (3).

Zero-rating: splitting of supplies

75

• (1) In Part 2 of Schedule 8 to VATA 1994 (zero-rating: groups), Group 3 (books, etc) is amended as follows.

• (2) For “Note: Items 1 to 6—” substitute—

(1) Items 1 to 6—

.

• (3) At the end insert—

(2) Items 1 to 6 do not include goods in circumstances where— (a) the supply of the goods is connected with a supply of services, and (b) those connected supplies are made by different suppliers. (3) For the purposes of Note (2) a supply of goods is connected with a supply of services if, had those two supplies been made by a single supplier— (a) they would have been treated as a single supply of services, and (b) that single supply would have been a taxable supply (other than a zero-rated supply) or an exempt supply.

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

Academies

76

• (1) In Part 2 of VATA 1994 (reliefs, exemptions and repayments), after section 33A insert —

(33B) (1) This section applies where— (a) VAT is chargeable on— (i) the supply of goods or services to the proprietor of an Academy, (ii) the acquisition of any goods from another member State by the proprietor of an Academy, or (iii) the importation of any goods from a place outside the member States by the proprietor of an Academy, and (b) the supply, acquisition or importation is not for the purposes of any business carried on by the proprietor of the Academy. (2) The Commissioners shall, on a claim made by the proprietor of the Academy at such time and in such form and manner as the Commissioners may determine, refund to that proprietor the amount of VAT so chargeable. (3) Subject to subsection (4), the claim must be made before the end of the period of 4 years beginning with the day on which the supply is made or the acquisition or importation takes place. (4) If the Commissioners so determine, the claim period is such shorter period beginning with that day as the Commissioners may determine. (5) Subsection (6) applies where goods or services supplied to, or acquired or imported by, the proprietor of the Academy cannot be conveniently distinguished from goods or services supplied to, or acquired or imported by, it for the purpose of a business carried on by that proprietor. (6) The amount to be refunded under this section is such amount as remains after deducting from the whole of the VAT chargeable on any supply to, or acquisition or importation by, the proprietor of the Academy such proportion of that VAT as appears to the Commissioners to be attributable to the carrying on of the business. (7) References in this section to VAT do not include any VAT which, by virtue of an order under section 25(7), is excluded from credit under section 25. (8) In this section— (a) references to the proprietor of an Academy are to the proprietor of the Academy acting in that capacity, and (b) “Academy” and “proprietor” have the same meaning as in the Education Act 1996 (see section 579 of that Act).

• (2) In section 79 of that Act (repayment supplement in respect of certain delayed payments or refunds)—

• (a) in subsection (1), after paragraph (c) insert

, or (d) the proprietor of an Academy who is registered is entitled to a refund under section 33B,

,

• (b) in subsection (5), after paragraph (c) insert

, and (d) a supplement paid to the proprietor of an Academy under subsection (1)(d) shall be treated as an amount due to that proprietor by way of refund under section 33B.

, and

• (c) in subsection (6)(b) after “33A” insert “ or 33B ”.

• (3) In section 90 of that Act (failure of resolution under the Provisional Collection of Taxes Act 1968), in subsection (3) after “33A,” insert “ 33B, ”.

• (4) In Part 2 of Schedule 9 to that Act (exemptions: groups), in Group 14 (supplies of goods where input tax cannot be recovered), in Note (9) after “33A,” insert “ 33B, ”.

• (5) The amendments made by this section have effect in relation to supplies made, and acquisitions and importations taking place, on or after 1 April 2011.

Relief from VAT on imported goods of low value

77

• (1) In Schedule 2 to the Value Added Tax (Imported Goods) Relief Order 1984 (S.I. 1984/746) (reliefs for goods of certain descriptions), in item 8 of Group 8 (consignments of goods not exceeding a certain value), for “£18” substitute “ £15 ”.

• (2) The amendment of that Schedule by this section is without prejudice to any power to amend that Schedule by subordinate legislation.

• (3) The amendment made by this section has effect in relation to goods imported on or after 1 November 2011.

Climate change levy

Supplies of commodities to be used in producing electricity

78

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

Northern Ireland gas supplies

79

• (1) In Schedule 6 to FA 2000 (climate change levy), omit paragraph 11A (exemption for Northern Ireland gas supplies).

• (2) Subsection (3) applies to a supply of gas if—

• (a) the supply is made by a gas utility (within the meaning of that Schedule (see paragraph 147)),

• (b) the person to whom the supply is made intends to cause the gas to be burned in Northern Ireland, ...

• (ba) the supply is not a supply for use in scrap metal recycling (within the meaning of that Schedule (see paragraph 147)), and

• (c) the supply is treated as taking place on or after 1 April 2011 but before 1 November 2013.

• (3) Paragraph 42 of that Schedule (amount payable by way of levy) has effect as if—

• (a) for sub-paragraphs (1) and (1A) there were substituted—

(1) The amount payable by way of levy on a taxable supply is— (a) if the supply is treated as taking place before 1 April 2012, £0.00059 per kilowatt hour, and (b) if the supply is treated as taking place on or after that date, £0.00064 per kilowatt hour.

, and

• (b) in sub-paragraph (3) the reference to a reduced-rate supply were a reference to a supply in relation to which this subsection applies.

• (4) In FA 2001, omit section 105(2) (which inserted paragraph 11A of that Schedule).

• (5) The amendments made by subsections (1) and (4) have effect in relation to a supply of gas to a person if the gas is actually supplied to the person on or after 1 April 2011.

• (6) Subsections (2) and (3) are treated as having come into force on 1 April 2011.

Power to suspend exemption for supplies used in recycling processes

80

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

Aggregates levy

Transitional tax credit

81

• (1) Section 30A of FA 2001 (transitional tax credit in Northern Ireland) is amended as follows.

• (2) For subsection (2) substitute—

(2) The cases are those where a charge to aggregates levy has arisen on a quantity of aggregate which has been subjected to commercial exploitation during a prescribed period.

• (3) Omit subsection (3).

• (4) In subsection (5), for paragraph (a) substitute—

(a) for a person to be entitled to a tax credit under the regulations in respect of aggregate originating from a site in respect of which any person holds an aggregates levy credit certificate which has not been withdrawn;

.

Stamp duty land tax

Prevention of avoidance

82

Schedule 21 contains provision preventing avoidance of stamp duty land tax.

Transfers involving multiple dwellings

83

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

Stamp duty reserve tax

Interests in collective investment schemes

84

• (1) Section 99 of FA 1986 (stamp duty reserve tax: interpretation) is amended as follows.

• (2) In subsection (5B)—

• (a) in paragraph (b), for the words after “exempt investment” substitute “ , unless subsection (5C) applies to the scheme; ”, and

• (b) omit the sentence after paragraph (d).

• (3) After subsection (5B) insert—

(5C) This subsection applies to a collective investment scheme if more than 20% of the market value of the investments in which the property subject to the scheme is invested is attributable to investments which are not exempt investments for the purposes of subsection (5A)(b). (5D) In subsections (5B) and (5C) “collective investment scheme” has the same meaning as in Part 17 of the Financial Services and Markets Act 2000.

• (4) This section comes into force on the first Sunday after the day on which this Act is passed.

Part 7 — Administration etc

Security for payment of PAYE

85

• (1) Section 684 of ITEPA 2003 (PAYE regulations) is amended as follows.

• (2) In subsection (2), after item 4A insert—

(4B) Provision for and in connection with requiring the giving, in specified circumstances, of security (or further security) for the payment of amounts in respect of which a person is or may be accountable to the Commissioners under the regulations.

• (3) After subsection (4) insert—

(4A) A person who fails to comply with a requirement imposed under PAYE regulations to give security, or further security, for the payment of any amount commits an offence if the failure continues for such period as is specified; and a person guilty of an offence under this subsection is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

Data-gathering powers

86

• (1) Schedule 23 contains provision for officers of Revenue and Customs to obtain data from data-holders.

• (2) Schedule 24 contains amendments of Schedule 36 to FA 2008 (information and inspection powers).

Mutual assistance for recovery of taxes etc

87

• (1) Schedule 25 contains provision for the purpose of giving effect to Council Directive 2010/24/EU (which concerns mutual assistance for the recovery of claims relating to taxes, duties and other measures).

• (2) The Treasury may by regulations make provision for the purpose of giving effect to—

• (a) any amendments or extensions of Council Directive 2010/24/EU,

• (b) any EU instrument that—

• (i) wholly or partly replaces that Directive or a replacement of it, or

• (ii) otherwise makes provision for or in connection with mutual assistance between member States in the recovery of claims relating to taxes, duties and other measures, and

• (c) any amendments or extensions of any such EU instrument.

• (3) Regulations under subsection (2) may amend, replace or repeal Schedule 25 and any other enactment (whenever passed).

• (4) Regulations under subsection (2) are to be made by statutory instrument.

• (5) An instrument containing regulations under subsection (2) is subject to annulment in pursuance of a resolution of the House of Commons.

Part 8 — Miscellaneous provisions

Amendments of section 1 of the Provisional Collection of Taxes Act 1968

88

• (1) Section 1 of the Provisional Collection of Taxes Act 1968 (temporary statutory effect of House of Commons resolutions relating to certain taxes) is amended in accordance with subsections (2) to (7).

• (2) In subsection (2) for “(8)” substitute “ (9) ”.

• (3) For subsection (3) substitute—

(3) The period is one expiring at the end of seven months after the date on which the resolution is expressed to take effect or, if no such date is expressed, after the date on which the resolution is passed.

• (4) In subsection (5)—

• (a) in paragraph (c) omit “or prorogued”, and

• (b) after paragraph (c) insert

, or (d) Parliament is prorogued.

• (5) After subsection (5) insert—

(5A) Subsection (5B) applies in relation to a resolution instead of subsection (5)(d) where Parliament is prorogued at the end of a session if— (a) one of the following happens during the session— (i) a Bill renewing, varying or, as the case may be, abolishing the tax is read a first time by the House, or (ii) a Bill is amended by the House in Committee or on Report or by any Public Bill Committee of the House so as to include provision for the renewal, variation or, as the case may be, abolition of the tax, (b) the Standing Orders or Sessional Orders of the House provide, or during the session the House orders, that proceedings on the Bill not completed before the end of the session shall be resumed in the next session, and (c) proceedings on the Bill are not completed during the session. (5B) The resolution shall cease to have statutory effect under this section if, during the period of thirty sitting days beginning with the first sitting day of the next session, no Bill renewing, varying or, as the case may be, abolishing the tax is presented to the House. (5C) In subsection (5B) “sitting day” means a day on which the House sits. (5D) Where a Bill is amended as mentioned in subsection (5A)(a)(ii), it does not matter for the purposes of subsection (5A)(b) if the House orders as mentioned in subsection (5A)(b) before the amendment to the Bill is made.

• (6) In subsection (6) for “(4) or (5)” substitute “ (4), (5) or (5B) ”.

• (7) After subsection (8) insert—

(9) Subsection (8) does not apply where the later resolution is passed in a different calendar year from that in which the earlier resolution is passed.

• (8) Accordingly, the following provisions are repealed—

• (a) section 205(4) of FA 1993;

• (b) section 50(1) and (3) of F(No.2)A 1997.

• (9) The amendments made by this section come into force on such day as the Treasury may by order made by statutory instrument appoint.

• (10) Subject to subsection (11), the amendments do not apply in relation to any resolution passed before the day appointed under subsection (9).

• (11) The cases covered by section 1(9) of the Provisional Collection of Taxes Act 1968 (as inserted by subsection (7)) include cases where the earlier resolution (but not the later resolution) is passed before the day appointed under subsection (9).

Specified investments

89

• (1) The amendments made by the second order are to be treated, for all tax purposes, as having come into force on 24 February 2010 immediately after the coming into force of the first order.

• (2) A person may elect that subsection (1) is not to have effect in relation to that person.

• (3) An election under subsection (2)—

• (a) is to be made by notice in writing to an officer of Revenue and Customs,

• (b) may not be made after the end of the period of 30 days beginning with the day on which this Act is passed, and

• (c) is irrevocable.

• (4) In this section—

• “the first order” means the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2010 (S.I. 2010/86);

• “the second order” means the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2011 (S.I. 2011/133);

• “tax” means any tax or duty.

• (5) Nothing in this section affects the commencement of the second order otherwise than as provided for by this section.

Machine games duty

90

The Commissioners for Her Majesty's Revenue and Customs may incur expenditure in preparing for the introduction of a new duty to be charged in respect of games played on machines.

Redundant reliefs

91

Schedule 26 contains provision repealing redundant reliefs.

Part 9 — Final provisions

Interpretation

92

• (1) In this Act—

• “ALDA 1979” means the Alcoholic Liquor Duties Act 1979,

• “BGDA 1981” means the Betting and Gaming Duties Act 1981,

• “CAA 2001” means the Capital Allowances Act 2001,

• “CRCA 2005” means the Commissioners for Revenue and Customs Act 2005,

• “CTA 2009” means the Corporation Tax Act 2009,

• “CTA 2010” means the Corporation Tax Act 2010,

• “FISMA 2000” means the Financial Services and Markets Act 2000,

• “HODA 1979” means the Hydrocarbon Oil Duties Act 1979,

• “ICTA” means the Income and Corporation Taxes Act 1988,

• “IHTA 1984” means the Inheritance Tax Act 1984,

• “ITA 2007” means the Income Tax Act 2007,

• “ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003,

• “ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005,

• “OTA 1975” means the Oil Taxation Act 1975,

• “PRTA 1980” means the Petroleum Revenue Tax Act 1980,

• “TCGA 1992” means the Taxation of Chargeable Gains Act 1992,

• “TIOPA 2010” means the Taxation (International and Other Provisions) Act 2010,

• “TMA 1970” means the Taxes Management Act 1970,

• “TPDA 1979” means the Tobacco Products Duty Act 1979,

• “VATA 1994” means the Value Added Tax Act 1994, and

• “VERA 1994” means the Vehicle Excise and Registration Act 1994.

• (2) In this Act—

• “FA”, followed by a year, means the Finance Act of that year;

• “F(No.2)A”, followed by a year, means the Finance (No. 2) Act of that year.

Short title

93

This Act may be cited as the Finance Act 2011.

SCHEDULE 1

High strength beer duty

1

In Part 3 of ALDA 1979 (beer), after section 36H insert—

(37) (1) A duty of excise is charged on high strength beer— (a) imported into the United Kingdom, or (b) produced in the United Kingdom, on or after 1 October 2011. (2) “High strength beer” means beer which is of a strength exceeding 7.5 per cent. (3) The duty charged by subsection (1) is referred to in this Act as “high strength beer duty”. (4) High strength beer duty is charged at £4.64 per hectolitre per cent of alcohol in the beer. (5) Subject to the provisions of this Act— (a) the high strength beer duty on beer produced in, or imported into, the United Kingdom is to be charged and paid, and (b) the amount chargeable in respect of any such duty is to be determined and becomes due, in accordance with regulations under section 49 and with any regulations under section 1 of the Finance (No. 2) Act 1992.

Consequential amendments in ALDA 1979

2

ALDA 1979 is amended as follows.

3

In section 4 (interpretation), in subsection (1) insert at the appropriate places—

“general beer duty” has the meaning given by section 36(1ZAA);

, and

“high strength beer duty” has the meaning given by section 37(3);

.

4

• (1) Section 36 (beer: charge of excise duty) is amended as follows.

• (2) After subsection (1) insert—

(1ZAA) The duty charged by subsection (1) is referred to in this Act as “general beer duty”.

• (3) In subsection (1AA), for “the duty” substitute “ general beer duty ”.

• (4) In subsection (1A), after “No” insert “ general beer ”.

• (5) In subsection (2)(a), for “the duty” substitute “ general beer duty ”.

• (6) For the heading substitute “ General beer duty ”.

5

In section 36B (interpretation of provisions relating to small brewery beer), in subsection (5), after “rate of” insert “ general beer ”.

6

• (1) Section 36D (rate of duty for small brewery beer from singleton breweries) is amended as follows.

• (2) In subsection (2), after “rate of” insert “ general beer ”.

• (3) In the heading, after “Rate of” insert “ general beer ”.

7

• (1) Section 36F (rate of duty for small brewery beer from co-operated breweries) is amended as follows.

• (2) In subsection (2), after “rate of” insert “ general beer ”.

• (3) In the heading, after “Rate of” insert “ general beer ”.

8

• (1) Section 36G (assessments where incorrectly low rate of duty applied) is amended as follows.

• (2) In subsection (1)(a), for “duty is charged by section 36 above” substitute “ general beer duty is charged ”.

• (3) In subsection (2)(a), for “duty is charged by section 36 above” substitute “ general beer duty is charged ”.

• (4) In subsection (3)(a), for “duty charged on the beer by section 36 above” (in both places) substitute “ general beer duty charged on the beer ”.

• (5) In subsection (4)—

• (a) for “duty charged” substitute “ general beer duty charged ”, and

• (b) in paragraph (a), for “the duty” substitute “ that duty ”.

9

In section 36H (power to vary reduced rate provisions), in subsection (1) for “excise duty” substitute “ general beer duty ”.

10

In section 41 (exemption from duty of beer produced for private consumption), for “The duty on beer produced in the United Kingdom shall not be” substitute “ Neither general beer duty on beer produced in the United Kingdom, nor high strength beer duty on beer so produced, is ”.

11

In section 49 (beer regulations), in subsection (1)—

• (a) for “the duty” (in the first place it occurs) substitute “ general beer duty or high strength beer duty ”, and

• (b) for “the duty” (in the second place it occurs) substitute “ any duty ”.

12

In section 49A (drawback allowable to registered brewer), in subsection (2) for “the excise” substitute “ any excise ”.

SCHEDULE 2

Main provision

1

After Part 7 of ITEPA 2003 insert—