Taxation (Post-transition Period) Act 2020

Northern Ireland Protocol

Duty on goods removed to Northern Ireland

1

After section 40 of TCTA 2018 insert—

(40A) (1) A duty of customs is charged on the removal of goods to Northern Ireland from Great Britain if the goods— (a) are not domestic goods, or (b) are at risk of subsequently being moved into the European Union. (2) For the purposes of this section “at risk of subsequently being moved into the European Union” has the meaning given by regulations made by the Treasury. (3) Duty under this section is charged in accordance with Union customs legislation as if the goods subject to the charge were brought into the customs territory of the European Union. (40B) (1) The Treasury may by regulations provide that, in relation to goods of a specified description, the following matters are to be determined in accordance with provision made by or under this Act (instead of in accordance with Union customs legislation)— (a) whether goods in particular circumstances are chargeable to duty under section 40A; (b) the amount of duty charged under that section; (c) such other matters relating to the charging of duty under section 40A as may be specified. (2) The Treasury may by regulations make provision generally for the purposes of duty under section 40A. (3) The following are examples of provision that regulations under subsection (2) may make for the purposes of that duty— (a) that section 40A(1) does not apply to goods of a specified description; (b) provision about reliefs, repayment and remission (including provision for the recovery of amounts where any condition in connection with any relief, repayment or remission is not met); (c) provision about (including provision modifying) the application of provision made by or under the customs and excise Acts (including provision made by or under this Act) to duty under section 40A or to goods removed to Northern Ireland from Great Britain; (d) provision supplementing or modifying provisions of Union customs legislation that apply to that duty or to those goods; (e) provision imposing checks, controls or administrative processes in connection with the removal of goods to Northern Ireland from Great Britain; (f) provision regulating the unloading, landing, movement and removal of goods on their removal to Northern Ireland from Great Britain (including provision restricting the places in which such goods may enter Northern Ireland). (4) Regulations under this section that specify a description of goods may do so by reference to any matter or circumstance (including, for example, any matter or circumstance relating to any person concerned with the removal of such goods). (5) Section 40 (regulations) applies to regulations under this section and section 40A as it applies to regulations under section 39 other than the first regulations under that section. (6) In this section and in section 40A, reference to “Great Britain” is to be treated as including the territorial sea of the United Kingdom. (7) Expressions used in provision made by or under this section or section 40A that are defined for the purposes of Part 1 have the same meaning they have in that Part.

Duty on goods imported into or removed from Northern Ireland

2

• (1) Part 1 of TCTA 2018 is amended as follows.

• (2) In section 1 (charge to import duty)—

• (a) the existing text becomes subsection (1);

• (b) after that subsection insert—

(2) Sections 30A and 30B make provision about the application of this Part to goods imported into the United Kingdom as a result of their entry into Northern Ireland.

• (3) In section 2 (chargeable goods)—

• (a) the existing text becomes subsection (1);

• (b) after that subsection insert—

(2) But subsection (1) is subject to section 30A(4) (importation of goods: Northern Ireland).

• (4) After section 30 insert—

(30A) (1) Union goods imported into the United Kingdom as a result of their entry into Northern Ireland are to be treated for the purposes of this Part as if they were domestic goods. (2) Accordingly, such goods are not chargeable to import duty (but see section 30C). (3) Other goods imported into the United Kingdom as a result of their entry into Northern Ireland are not chargeable to import duty, but are chargeable to duty under this subsection. (4) Except as may be provided for by regulations made by the Treasury, such goods are not chargeable goods for the purposes of this Part. (5) Duty under subsection (3) is chargeable in accordance with Union customs legislation as if the goods subject to the charge were brought into the customs territory of the European Union. (6) Duty under subsection (3) is a duty of customs, and accordingly the revenues of that duty (as with import duty) are revenues of customs that HMRC Commissioners are responsible for collecting and managing. (30B) (1) The Treasury may by regulations provide that, in relation to goods of a specified description, the following matters are to be determined in accordance with provision made by or under this Act (instead of in accordance with Union customs legislation)— (a) whether goods in particular circumstances are chargeable to duty under section 30A(3); (b) the amount of duty charged under that subsection; (c) such other matters relating to the charging of duty under that subsection as may be specified. (2) Regulations under subsection (1) may specify a description of goods by reference to any matter or circumstance (including, for example, any matter or circumstance relating to any person concerned with the importation of such goods). (3) The Treasury may by regulations make provision generally for the purposes of duty under section 30A(3). (4) The following are examples of provision that regulations under subsection (3) may make for the purposes of that duty— (a) provision about reliefs, repayment and remission in relation to duty under section 30A(3) (including provision for the recovery of amounts where any condition in connection with any relief, repayment or remission is not met); (b) provision about (including provision modifying) the application of provision made by or under the customs and excise Acts (including provision made by or under this Act) to duty under section 30A(3) or to goods imported into the United Kingdom as a result of their entry into the Northern Ireland; (c) provision supplementing or modifying provisions of Union customs legislation that apply to that duty or to those goods. (30C) (1) A duty of customs is charged on the removal of goods to Great Britain from Northern Ireland if the goods are not qualifying Northern Ireland goods. (2) A duty of customs is charged on the removal of other goods to Great Britain from Northern Ireland if the main purpose, or one of the main purposes, of the removal is to— (a) avoid any other duty chargeable as a result of this Act, or (b) avoid any obligation in connection with such a duty. (3) The relevant import duty provisions apply for the purposes of duty charged under this section as if— (a) any reference to chargeable goods were to goods removed to Great Britain from Northern Ireland, (b) any reference to the importation of goods were to their removal to Great Britain from Northern Ireland, (c) in section 6(2), for “the United Kingdom” there were substituted “ Great Britain ”, and (d) in section 16(2), for “export to the United Kingdom” there were substituted “ removal to Great Britain ”. (4) A provision is a “relevant import duty provision” if it is provision made by or under any of sections 3 to 28 and 34 and Schedules 1 to 6. (5) The Treasury may by regulations make provision generally for the purposes of duty under this section. (6) The following are examples of provision that regulations under subsection (5) may make for the purposes of that duty— (a) that subsection (1) does not to apply to goods of a specified description (and if it does not, whether such goods are to be treated as “other goods” for the purposes of subsection (2)); (b) that subsection (3) does not apply, to such extent as may be specified, to goods of a specified description; (c) that any reference in this Part to Great Britain is to be treated as including the territorial sea, or any specified area of the territorial sea, of the United Kingdom; (d) provision about (including provision modifying) the application of provision made by or under the customs and excise Acts (including provision made by or under this Act) to duty under this section or to goods removed from Northern Ireland to Great Britain; (e) provision imposing checks, controls or administrative processes in connection with the removal of goods to Great Britain from Northern Ireland (and such checks, controls and processes may be imposed for any purpose in connection with duty under this section despite any provision of any enactment whenever passed); (f) provision regulating the unloading, landing, movement and removal of goods on their removal to Great Britain from Northern Ireland (including provision restricting the places in which such goods may enter Great Britain). (7) Regulations under this section that specify a description of goods may do so by reference to any matter or circumstance (including, for example, any matter or circumstance relating to any person concerned with the removal of such goods).

• (5) Schedule 1 contains amendments to TCTA 2018 and other Acts in connection with the provisions of the Protocol on Ireland/Northern Ireland in the EU withdrawal agreement that concern tax.

Value added tax in Northern Ireland

3

• (1) In VATA 1994, before section 41 insert—

(40A) (1) Schedule 9ZA— (a) makes provision about a charge to VAT on acquisitions of goods in Northern Ireland from a member State, and (b) contains modifications of the other provisions of this Act in connection with the movement of goods between Northern Ireland and member States. (2) Schedule 9ZB— (a) makes provision about VAT charged on goods imported into the United Kingdom as a result of their entry into Northern Ireland, (b) makes provision about the treatment, for the purposes of VAT, of goods that are removed from Northern Ireland to Great Britain and goods that are removed from Great Britain to Northern Ireland, and (c) contains other provision relevant to the application of this Act in Northern Ireland.

• (2) Part 1 of Schedule 2 inserts the Schedules referred to in the amendment made by subsection (1) into VATA 1994 and contains further amendments of that Act (as amended by TCTA 2018).

• (3) Part 2 of that Schedule makes amendments to other legislation in connection with the amendments made by Part 1.

• (4) Where a provision inserted into VATA 1994 as a result of Schedule 2 re-enacts (with or without modifications) provision repealed by TCTA 2018 (or by that Schedule), unless the contrary intention appears—

• (a) any reference in any provision made by or under an enactment to the repealed provision is to be construed as a reference to the re-enacted provision;

• (b) any order or regulations that would otherwise cease to have effect as a result of the repeal continues to have effect as if made under the re-enacted provision (subject to any modifications made to that provision, and with such modifications to that order or those regulations as may be necessary).

Excise duty on the removal of goods to Northern Ireland

4

• (1) Where goods to which a relevant excise duty provision applies are removed to Northern Ireland from Great Britain, excise duty is charged on those goods under that provision.

• (2) Each of the following is a “relevant excise duty provision”—

• (a) section 47 of F(No.2) A 2023 (alcohol);

• (g) section 6 of HODA 1979 (hydrocarbon oil);

• (h) section 6AA of that Act (biodiesel);

• (i) section 6AB of that Act (bioblend);

• (j) section 6AD of that Act (bioethanol);

• (k) section 6AE of that Act (bioethanol blend);

• (l) section 6AG of that Act (aqua methanol);

• (m) section 6A of that Act (fuel substitutes);

• (n) section 8 of that Act (road fuel gas);

• (o) section 2 of TPDA 1979 (tobacco products).

• (3) Subsection (1) does not apply to a removal of goods to which a relevant excise duty provision mentioned in paragraph (h), (j), (l) or (m) applies unless, prior to their removal, the goods were set aside for, or put to, a chargeable use (within the meaning of the relevant excise duty provision in question) by any person.

• (4) Subsection (1) does not apply to a removal of road fuel gas (within the meaning given by section 5 of HODA 1979) unless, prior to its removal from Great Britain the gas was—

• (a) sent out from the premises of a person producing or dealing in road fuel gas, or

• (b) set aside for use, or put to use, as fuel for a road vehicle (within the meaning of that Act) by any person.

• (5) Goods are removed to Northern Ireland when their entry in Northern Ireland would amount to an importation of excise goods within the meaning of Article 4 of the Union excise directive if—

• (a) any reference in that Article to “excise goods” included any goods to which a relevant excise duty provision applies,

• (b) the references in point 8 of that Article to “the territory of the Community” and “the Community” were to Northern Ireland, and

• (c) the reference in point 6 of that Article to “special procedures as provided for under Regulation (EEC) No 2913/92” were to the procedures under Union customs legislation that correspond to those procedures.

• (6) In subsection (5)—

• “the Union excise directive” means Council Directive 2008/118/EC of 16 December 2008 concerning the general arrangements for excise duty and repealing Directive 92/12/EEC;

• “Union customs legislation” means provisions contained in “customs legislation” within the meaning of Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (see Article 5(2) of that Regulation), as they have effect as a result of section 7A of the European Union (Withdrawal) Act 2018.

Duty under section 4: supplementary

5

• (1) Any provision made by or under the customs and excise Acts that applies to, or in connection with, duty under a relevant excise duty provision by reference to the importation of goods applies to duty charged as a result of section 4(1) as if—

• (a) any reference to the importation of goods (however framed) were to their removal to Northern Ireland from Great Britain, and

• (b) any reference to the entry of any person or vehicle into the United Kingdom (however framed) were to the arrival of that person or vehicle in Northern Ireland.

• (2) The Treasury may by regulations made by statutory instrument make provision, for the purposes of duty charged as a result of section 4(1), about (including provision modifying) the application of the customs and excise Acts (including this section and section 4) to that duty or to goods that are, or may be, subject to that duty.

• (3) A statutory instrument containing regulations made under subsection (2) is subject to annulment in pursuance of a resolution of the House of Commons.

• (4) In this section—

• “the customs and excise Acts” has the meaning it has in CEMA 1979 (see section 1(1) of that Act);

• “relevant excise duty provision” is to be construed in accordance with section 4(2).

• (5) This section and section 4 have effect in relation to any removal of goods to Northern Ireland from Great Britain that commences on or after IP completion day.

• (6) For the purposes of subsection (5), a removal of goods commences—

• (a) in the case of goods carried by (which for these purposes includes where the goods constitute, or are within, accompanying baggage of) a person travelling from Great Britain to Northern Ireland on an aircraft or vessel, when the aircraft or vessel is scheduled to depart from the airport or port in Great Britain from which it departs, and

• (b) in any other case, when the goods are dispatched from the place in Great Britain from which they are removed.

Rate of fuel duty on aviation gasoline

6

In section 6(1A)(aa) of HODA 1979 (rate of fuel duty on aviation gasoline), for “£0.3770” substitute “ £0.3820 ”.

Other provision about value added tax

Online sales by overseas persons and low value importations

7

Schedule 3 makes provision for the purposes of value added tax in cases involving—

• (a) supplies of goods by persons established outside the United Kingdom that are facilitated by online marketplaces;

• (b) the importation into the United Kingdom of goods of a low value.

Insurance premium tax

Liability of insured in certain cases

8

In section 65 of FA 1994 (insurance premium tax: liability of insured in certain cases), for subsections (1A) and (1B) substitute—

(1A) The condition mentioned in subsection (1)(b) above is that there are no arrangements in relation to the country or territory relating to insurance premium tax which— (a) have effect by virtue of an Order in Council under section 173 of the Finance Act 2006, and (b) contain provision of a kind mentioned in subsection (2)(a) and (b) of that section.

Controlled foreign companies

Recovery of unlawful state aid

9

Schedule 4 makes provision in connection with the charging of amounts under Part 9A of TIOPA 2010 (the CFC charge in relation to controlled foreign companies) as if one of the exemptions in Chapter 9 of that Part (exemptions for profits from qualifying loan relationships) had not applied, in order to comply with Commission Decision (EU) 2019/1352 of 2 April 2019 on the state aid SA.44896 implemented by the United Kingdom concerning the CFC Group Financing Exemption (referred to in that Schedule as “the Commission Decision”).

Final provisions

Interpretation

10

In this Act the following abbreviations are references to the following Acts—

Commencement

11

• (1) The following provisions come into force on the day on which this Act is passed—

• (a) section 9 and Schedule 4,

• (b) section 10,

• (c) this section,

• (d) section 12, and

• (e) the remaining provisions of this Act so far as making provision for anything to be done by regulations or order.

• (2) Section 6 comes into force on 1 January 2021.

• (3) The remaining provisions of this Act come into force on such day as the Treasury may by regulations made by statutory instrument appoint.

• (4) The power of the Treasury to appoint a day under subsection (3) includes—

• (a) a power to appoint different days for different purposes or areas, and

• (b) a power to appoint a time on a day if the Treasury consider it appropriate to do so (including a time that has effect by reference to the coming into force of any other enactment).

• (5) The Treasury may by regulations made by statutory instrument make such consequential, supplementary, incidental, transitional, transitory or saving provision as the Treasury consider appropriate in connection with the coming into force of any provision of this Act.

• (6) Regulations under subsection (5) may make different provision for different purposes or areas.

Short title

12

This Act may be cited as the Taxation (Post-transition Period) Act 2020.

SCHEDULE 1

Amendments of TCTA 2018

1

TCTA 2018 is amended in accordance with paragraphs 2 to 11.

2

In section 3 (obligation to declare goods for a customs procedure on import), in subsection (3)(a) for “the United Kingdom” substitute “ Great Britain ”.

3

In section 32 (regulations), in subsection (9)(a) after “Part” insert “ or under section 40A or 40B ”.

4

• (1) Section 33 (meaning of “domestic goods”) is amended as follows.

• (2) In subsection (2)—

• (a) omit the “or” after paragraph (a);

• (b) in paragraph (b) for “discharged.” substitute “ discharged, or ”;

• (c) after that paragraph insert—

(c) the goods— (i) are not Union goods and were removed to Northern Ireland (in the course of their importation into the United Kingdom or otherwise), and (ii) were declared, in accordance with Union customs legislation, for a procedure corresponding to the free-circulation procedure or the authorised use procedure and that corresponding procedure has been discharged, while the goods were in Northern Ireland, in accordance with that legislation.

• (3) In subsection (3)—

• (a) in paragraph (a), after “the United Kingdom” insert “ as a result of the removal of the goods from Great Britain ”;

• (b) in the words after paragraph (b), after “then” insert “ (subject to section 30A) ”.

• (4) In subsection (4), after “goods” insert “ resulting from the removal of the goods from Great Britain ”.

• (5) After that subsection insert—

(4A) Goods also cease to be domestic goods if they— (a) are exported from the United Kingdom as a result of their removal from Northern Ireland, and (b) are not of a description specified in regulations made by the Treasury, and the goods are then (subject to section 30A) chargeable goods until such time (if any) as they are next subject to a chargeable Customs procedure. (4B) Regulations under subsection (4A)(b) may specify a description of goods by reference to any matter or circumstance (including, for example, any matter or circumstance relating to any person concerned with the export of such goods).

• (6) In subsection (5), for “goods exported from the United Kingdom in accordance with the applicable export provisions” substitute “ relevant exported goods ”.

• (7) After that subsection insert—

(5A) For the purposes of subsection (5), exported goods are “relevant” if— (a) they were exported as a result of their removal from Northern Ireland, or (b) they were exported as a result of their removal from Great Britain and were so exported in accordance with the applicable export provisions.

5

In section 36 (outward processing procedure), in subsection (2)—

• (a) in paragraph (a), after “the United Kingdom”, in the first place it occurs, insert “ as a result of the removal of the goods from Great Britain ”;

• (b) in paragraph (b), after “the United Kingdom” insert “ and removed to Great Britain (whether in the course of that importation or otherwise) ”.

6

In section 37 (minor definitions), in subsection (1), at the appropriate places insert—

“the customs and excise Acts” has the meaning it has in CEMA 1979 (see section 1(1) of that Act);

;

“qualifying Northern Ireland goods” has the meaning it has in the European Union (Withdrawal) Act 2018 (see section 8C(6) of that Act);

;

“Union customs legislation” means provisions contained in “customs legislation” within the meaning of Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (see Article 5(2) of that Regulation), as they have effect as a result of section 7A of the European Union (Withdrawal) Act 2018;

;

“Union goods” has the meaning it has in that Regulation;

.

7

In section 38 (table of definitions), in the table, at the appropriate places insert—

the customs and excise Acts	section 37(1)

;

qualifying Northern Ireland goods	section 37(1)

;

Union goods	section 37(1)

;

Union customs legislation	section 37(1)

.

8

• (1) Schedule 1 (customs declarations) is amended as follows.

• (2) In paragraph 1(4)—

• (a) in paragraph (a), after “United Kingdom” insert “ , or removed to Northern Ireland, ”;

• (b) in paragraph (b), before “the export” insert “ in the case of goods exported from the United Kingdom, ”.

• (3) In paragraph 2(2)—

• (a) in paragraph (a), for the words from “in the United Kingdom” to the end substitute “ in, or outside, a specified place ”;

• (b) in paragraph (b)—

• (i) after “have” insert “ , or do not have, ”;

• (ii) for “the United Kingdom or to a specified place outside the United Kingdom” substitute “ a specified place ”.

9

• (1) Schedule 2 (special customs procedures) is amended as follows.

• (2) In paragraph 1(2)(a) for the words from “in the United Kingdom” to the end substitute “ in, or outside, a specified place ”.

• (3) In paragraph 5(1), for “the United Kingdom”, in each place it occurs, substitute “ Great Britain ”.

• (4) In paragraph 9—

• (a) in sub-paragraph (1)(a), for “there” substitute “ in Great Britain ”;

• (b) in sub-paragraph (5)—

• (i) after “provisions” insert “ , or removed to Northern Ireland, ”;

• (ii) for “the United Kingdom” substitute “ Great Britain ”;

• (c) in sub-paragraph (6)(a), for “the United Kingdom” substitute “ Great Britain ”.

• (5) In paragraph 11—

• (a) in paragraph (a), for “the United Kingdom, or” substitute “ Great Britain, ”;

• (b) after that paragraph insert—

(aa) that the goods are to be subject to any operation designed to secure that they comply with requirements that must be met before the goods can lawfully be released in accordance with Union customs legislation to a procedure corresponding to the free-circulation procedure, or

.

• (6) In paragraph 15, in paragraph (b), after “provisions” insert “ or are removed to Northern Ireland ”.

• (7) In paragraph 19, in sub-paragraph (3)(a) after “provisions” insert “ or are removed to Northern Ireland ”.

10

• (1) Schedule 7 (import duty: consequential amendments) is amended as follows.

• (2) In paragraph 114, after “Part 1” insert “ or section 40A or 40B ”.

• (3) In paragraph 146—

• (a) the existing text becomes sub-paragraph (1);

• (b) after that sub-paragraph insert—

(2) Where the provisions of CEMA 1979 relating to transit sheds continue to have effect for any purpose (see paragraph 158), the provision amended by sub-paragraph (1) continues to have effect, for that purpose, as if the amendments made by that sub-paragraph were not made.

• (4) In paragraph 150(3)(a)—

• (a) after “Part 1” insert “ and sections 40A and 40B ”;

• (b) for “it applies” substitute “ they apply ”.

• (5) In paragraph 156—

• (a) for sub-paragraph (2) substitute—

(2) In subsection (2)— (a) in paragraph (b), for “of Council Regulation (EC) No 384/96, as amended from time to time” substitute “ it has in Union customs legislation ”; (b) in paragraph (c) for “of Council Regulation (EC) No 2026/97, as amended from time to time” substitute “ it has in Union customs legislation ”.

;

• (b) in sub-paragraph (3)(b), after “Part 1” insert “ and sections 40A and 40B ”;

• (c) for sub-paragraph (4) substitute—

(4) In subsection (9), in paragraph (c), for “EU law” substitute “ retained EU law, or Union customs legislation, ”. (5) After that subsection insert— (10) In this section “Union customs legislation” has the meaning it has in Part 1 of the Taxation (Cross-border Trade) Act 2018.

• (6) After paragraph 157 insert—

(158) (1) CEMA 1979— (a) continues to have effect, for any purpose in connection with duty under section 30A(3), as if the amendments made by Part 2 of this Schedule, other than the amendments made by paragraphs 4(4), 93 and 114, were not made, and (b) applies for any such purpose as if— (i) references to an exportation of goods (however framed) included the exit of goods from Northern Ireland that are being removed to Great Britain, (ii) references to the departure (however framed) of any goods, person or vehicle from the United Kingdom included a departure of those goods or that person or vehicle from Northern Ireland that is not also a departure from the United Kingdom, (iii) references to “the customs territory of the European Union”, other than the reference in section 21(2), were to “Northern Ireland or the customs territory of the European Union”, (iv) references to “EU customs duties” were to “duty under section 30A(3) of the Taxation (Cross-border Trade) Act 2018”, (v) in section 63(1) and (2), after “place outside” there were inserted “ Northern Ireland and ” (and the reference to “those States” in section 63(1) included Northern Ireland), (vi) in section 78(1B)— (a) in the words before paragraph (a), for “another” there were substituted “ a ”, and (b) in paragraphs (a) and (b)(ii) after “place outside” there were inserted “ Northern Ireland and ”, (vii) in section 92(4)(a) and (b), before “member States” there were inserted “Northern Ireland or the”, (viii) in section 125(1), for “an EU customs duty” there were substituted “ a duty of customs ”, (ix) in subsection (1A) and (2)(a) of section 157, the words “other than the United Kingdom” were omitted, (x) the following references to the United Kingdom were to Northern Ireland— (a) the references in the definitions of “Community transit goods” and “transit or transhipment” in section 1(1); (b) the references in sections 36(1), 55(4)(a), 63(2) to (4), 74, 78(1)(a) and (b), 96(4) and 134(2); (c) the reference in the words after paragraph (b) of section 58C(3); (d) the second reference in sections 67(1) and 78(2A); (e) the first reference in sections 69(1) and 70(3), and (xi) the following were omitted— (a) sections 21(8), 35(9), 61(9), 63(7), 70(5), 74(5) and 78(1A); (b) the words after paragraph (b) of the definition of “Community transit goods” in section 1; (c) the words “and the Isle of Man” in sections 34(1), 36(1), 53(1), 64(1) and 66(1)(a) and (d); (d) the words “or the Isle of Man” in section 43(5); (e) the words “or between a place in the United Kingdom and a place in the Isle of Man” in section 69(1) and (3); (f) the words “subject to subsection (1A) above,” in section 78(2A). (2) CEMA 1979 applies, for any purpose in connection with duty under section 30C, as if— (a) references to an importation of goods (however framed) included the entry of goods in Great Britain in the course of a removal of those goods to Great Britain from Northern Ireland, (b) references to an exportation of goods (however framed) included the exit of goods from Great Britain that are being removed to Northern Ireland, (c) references to the departure (however framed) of any goods, person or vehicle from the United Kingdom included a departure of those goods or that person or vehicle from Great Britain that is not also a departure from the United Kingdom, and (d) references to the arrival of any goods, person or vehicle from a place outside the United Kingdom (however framed) included the arrival of those goods or that person or vehicle in Great Britain. (3) CEMA 1979— (a) continues to have effect, for any purpose in connection with duty under section 40A, as if the amendments made by Part 2 of this Schedule, other than the amendments made by paragraphs 4(4), 93 and 114, were not made, and (b) applies for any such purpose as if— (i) references to an importation of goods (however framed) included the entry of goods in Northern Ireland in the course of a removal of those goods to Northern Ireland from Great Britain, (ii) references to an exportation of goods (however framed) included the exit of goods from Northern Ireland that are being removed to Great Britain, (iii) references to the departure (however framed) of any goods, person or vehicle from the United Kingdom included a departure of those goods or that person or vehicle from Northern Ireland that is not also a departure from the United Kingdom, (iv) references to the arrival of any goods, person or vehicle from a place outside the United Kingdom (however framed), except in section 78(2A), were to the arrival of those goods or that person or vehicle in Northern Ireland, (v) references to “the customs territory of the European Union”, other than the reference in section 21(2), were to “Northern Ireland or the Customs territory of the European Union”, (vi) references to “EU customs duties” were to “duty under section 40A of the Taxation (Cross-border Trade) Act 2018”, (vii) in section 63(1) and (2), after “place outside” there were inserted “ Northern Ireland and ” (and the reference to “those States” in section 63(1) included Northern Ireland), (viii) in section 78(1B)— (a) in the words before paragraph (a), for “another” there were substituted “ a ”, and (b) in paragraphs (a) and (b)(ii) after “place outside” there were inserted “ Northern Ireland and ”, (ix) in section 92(4)(a) and (b), before “member States” there were inserted “Northern Ireland or the”, (x) in section 125(1), for “an EU customs duty” there were substituted “ a duty of customs ”, (xi) in subsection (1A) and (2)(a) of section 157, the words “other than the United Kingdom” were omitted, (xii) the following references to “the United Kingdom” were to “Northern Ireland”— (a) the references in the definitions of “Community transit goods” and “transit or transhipment” in section 1(1); (b) the references in sections 36(1), 55(4)(a), 63(2) to (4), 74, 78(1)(a) and (b), 96(4) and 134(2); (c) the reference in the words after paragraph (b) of section 58C(3); (d) the second reference in sections 67(1) and 78(2A); (e) the first reference in sections 69(1) and 70(3), and (xiii) the following were omitted— (a) sections 21(8), 35(9), 61(9), 63(7), 70(5), 74(5) and 78(1A); (b) the words after paragraph (b) of the definition of “Community transit goods” in section 1; (c) the words “and the Isle of Man” in sections 34(1), 36(1), 53(1), 64(1) and 66(1)(a) and (d); (d) the words “or the Isle of Man” in section 43(5); (e) the words “or between a place in the United Kingdom and a place in the Isle of Man” in section 69(1) and (3); (f) the words “subject to subsection (1A) above,” in section 78(2A). (4) The Customs and Excise Duties (General Reliefs) Act 1979— (a) continues to have effect, for any purpose in connection with duty under section 30A(3) or 40A, as if the amendments made by Part 3 of this Schedule, other than the amendments made by paragraphs 123, 135 and 138(3)(b), were not made, and (b) applies for any such purpose as if— (i) references to an EU instrument or an EU obligation were to the provisions of Union customs legislation, (ii) references to an importation of goods (however framed) included the entry of those goods in Northern Ireland in the course of a removal of those goods to Northern Ireland from Great Britain, (iii) references to an exportation of goods (however framed) included the exit of goods from Northern Ireland that are being removed to Great Britain, (iv) references to the entry of any person or vehicle into the United Kingdom (however framed) included the arrival of that person or vehicle in Northern Ireland, and (v) in section 2 (reliefs from customs duty referable to Community practices), for “other” there were substituted “ the ”. (5) Part 1 of the Finance Act 1994— (a) continues to have effect, for any purpose in connection with duty under section 30A(3) or 40A, as if the amendments made by Part 3 of this Schedule, other than the amendments made by paragraphs 144(b) and 145(3)(d), (f) and (i), were not made, (b) applies for any such purpose as if— (i) references to an importation of goods (however framed) included the entry of goods in Northern Ireland in the course of a removal of those goods to Northern Ireland from Great Britain, (ii) references to an exportation of goods (however framed) included the exit of goods from Northern Ireland that are being removed to Great Britain, (iii) any reference to the Community Customs Code were to Union customs legislation, and (iv) in section 12B(2)(a) (relevant time in case of assessment under section 61 of CEMA 1979) the reference to the United Kingdom were to Northern Ireland, and (c) applies for any purpose in connection with duty under section 30C as if— (i) references to an importation of goods (however framed) included the entry of goods in Great Britain in the course of a removal of those goods to Great Britain from Northern Ireland, and (ii) references to an exportation of goods (however framed) included the exit of goods from Great Britain that are being removed to Northern Ireland. (6) Item 6 of Group 8 of Schedule 8 to the Value Added Tax Act 1994 has effect as if the reference to a temporary storage facility included a transit shed (within the meaning of CEMA 1979 as it has effect as a result of sub-paragraphs (1) and (3)). (7) Part 3 of the Finance Act 2003 continues to have effect, for any purpose in connection with duty under section 30A(3) or 40A, as if— (a) the amendments made by Part 3 of this Schedule, other than the amendments made by paragraphs 148(2) and (3), 149, 150(3)(a) and 152, were not made, and (b) in section 26(8)(c), the words “Union export duty or Union import duty,” were omitted. (8) This paragraph is subject to any provision made by regulations under section 30B(3), 30C(5) or 40B(2) about the application of the customs and excise Acts (which may, for example, include provision for the application of provisions of the customs and excise Acts either as amended or unamended by Parts 2 and 3 of this Schedule).

11

In Schedule 9 (excise duty amendments connected with withdrawal from EU), after paragraph 9 insert—

(10) The provisions amended by this Schedule continue to have effect— (a) for any purpose in connection with duty charged as a result of section 4(1) of the Taxation (Post-transition Period) Act 2020, and (b) in relation to goods in Northern Ireland, as if those provisions were not so amended.

Isle of Man Act 1979

12

• (1) The Isle of Man Act 1979 is amended as follows.

• (2) In section 8 (removal of goods from Isle of Man to United Kingdom), in subsection (2), before paragraph (a) insert—

(za) goods removed to Northern Ireland from the Isle of Man;

.

• (3) In section 9 (removal of goods from United Kingdom to Isle of Man), after subsection (1) insert—

(1A) Subsection (1) does not apply to goods removed from Northern Ireland to the Isle of Man.

Finance (No.2) Act 1992

13

• (1) Section 4 of F(No.2)A 1992 is amended as follows.

• (2) In subsection (1)—

• (a) for “the United Kingdom” substitute “ Northern Ireland ”;

• (b) for “different” substitute “ Northern Ireland and a member State or between ”.

• (3) In subsection (1A), for “different” substitute “ Northern Ireland and a member State or between ”.

• (4) In subsection (2)—

• (a) in paragraph (a)—

• (i) omit “EU” in the first place it occurs;

• (ii) for “EU legislation” substitute “Union customs legislation (within the meaning of Part 1 of the Taxation (Cross-border Trade) Act 2018);

• (b) in paragraph (b), for “EU legislation” substitute “ provision of Union customs legislation ”.

• (5) In subsection (5), omit the definition of “EU customs duty”.

SCHEDULE 2

PART 1 — Amendments of VATA 1994

1

VATA 1994 is amended as follows.

New Schedules: VAT in Northern Ireland

2

After Schedule 9 insert—