SCHEDULES

Section 2.

SCHEDULE 1U.K. Table of rates of duty on wine and made-wine

“Part IU.K. Wine or made-wine of a strength not exceeding 22 per cent.

“Part IIU.K. Wine or made-wine of a strength exceeding 22 per cent.

Section 5.

SCHEDULE 2U.K. Denatured alcohol

The Alcoholic Liquor Duties Act 1979U.K.

1U.K.In section 4(1) of the M1Alcoholic Liquor Duties Act 1979 (interpretation)—

(a)for the definition of “authorised methylator” there shall be substituted the following definition—

““authorised denaturer” means a person authorised under section 75(1) below to denature dutiable alcoholic liquor;”

(b)in the definition of “British compounded spirits”, for “methylated spirits” there shall be substituted “ denatured alcohol ”;

(c)after the definition of “compounder” there shall be inserted the following definition—

““denatured alcohol” means denatured alcohol within the meaning of section 5 of the Finance Act 1995, and references to denaturing a liquor are references to subjecting it to any process by which it becomes denatured alcohol;”

(d)for the definition of “licensed methylator” there shall be substituted the following definition—

““licensed denaturer” means a person holding a licence under section 75(2) below;”.

2U.K.Section 9 of that Act (remission of duty on spirits for methylation) shall cease to have effect.

3U.K.In section 10 of that Act (remission of duty on spirits), for “methylated spirits” there shall be substituted “ denatured alcohol ”.

F14U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5U.K.In sections 75, 77, 79 and 80 of that Act (which contain provisions regulating methylation)—

(a)for the words “methylate”, “methylates”, “methylator” and “methylators”, wherever they occur, and for the word “methylated”, where it occurs outside the expression “methylated spirits”, there shall be substituted, respectively, “ denature ”, “ denatures ”, “ denaturer ”, “ denaturers ” and “ denatured ”;

(b)for the words “methylation” and “methylating”, wherever they occur, there shall be substituted, in each case, “ denaturing ”;

(c)for the word “spirits”, wherever it occurs outside the expression “methylated spirits”, there shall be substituted “ dutiable alcoholic liquor ”;

(d)for the words “methylated spirits”, wherever they occur, there shall be substituted “ denatured alcohol ”.

6U.K.In section 77(2) of that Act (provisions supplemental to powers to make regulations), after paragraph (a) there shall be inserted the following paragraph—

“(aa)frame any provision of the regulations with respect to the supply, receipt or use of denatured alcohol by reference to matters to be contained from time to time in a notice published in accordance with the regulations by the Commissioners and having effect until withdrawn in accordance with the regulations; and”.

7U.K.For section 78 of that Act (additional provisions relating to methylated spirits) there shall be substituted the following section—

“78 Defaults in respect of denatured alcohol.

(1)This subsection applies if, at any time when an account is taken and a balance struck of the quantity of any kind of denatured alcohol in the possession of an authorised or licensed denaturer, there is a difference between—

(a)the quantity (“the actual amount”) of the dutiable alcoholic liquor of any description in the denatured alcohol in his possession; and

(b)the quantity (“the proper amount”) of dutiable alcoholic liquor of that description which, according to any such accounts as are required to be kept by virtue of any regulations under section 77 above, ought to be in the denatured alcohol in his possession.

(2)Subsection (1) above shall not apply if the difference constitutes—

(a)an excess of the actual amount over the proper amount of not more than 1 per cent. of the aggregate of—

(i)the quantity of dutiable alcoholic liquor of the description in question in the balance of dutiable alcoholic liquor struck when an account was last taken; and

(ii)the quantity of dutiable alcoholic liquor of that description which has since been lawfully added to the denaturer’s stock;

or

(b)a deficiency such that the actual amount is less than the proper amount by not more than 2 per cent. of that aggregate.

(3)If, where subsection (1) above applies, the actual amount exceeds the proper amount, the relevant amount of any dutiable alcoholic liquor of the description in question which is in the possession of the denaturer shall be liable to forfeiture; and for this purpose the relevant amount is the amount corresponding to the amount of the excess or such part of that amount as the Commissioners consider appropriate.

(4)If, where subsection (1) above applies, the actual amount is less than the proper amount, the denaturer shall, on demand by the Commissioners, pay on the amount of the deficiency, or on such part of it as the Commissioners may specify in the demand, the duty payable on dutiable alcoholic liquor of the description comprised in the deficiency.

(5)If any person—

(a)supplies to another, in contravention of any regulations under section 77 above, any denatured alcohol containing dutiable alcoholic liquor of any description, or

(b)uses any such denatured alcohol in contravention of any such regulations,

that person shall, on demand by the Commissioners, pay on the amount of dutiable alcoholic liquor of that description comprised, at the time of its supply or use, in the denatured alcohol that is so supplied or used, or on such part of it as the Commissioners may specify, the duty payable on dutiable alcoholic liquor of that description.

(6)Any supply of denatured alcohol to a person who—

(a)by virtue of any regulations under section 77 above is prohibited from receiving it unless authorised to do so by or under the regulations, and

(b)is not so authorised in the case of the denatured alcohol supplied to him,

shall be taken for the purposes of subsection (5) above to be a supply in contravention of those regulations.

(7)A demand made for the purposes of subsection (4) or (5) above shall be combined, as if there had been a default such as is mentioned in that section, with an assessment and notification under section 12 of the M2Finance Act 1994 (assessments to excise duty) of the amount of duty due in consequence of the making of the demand.”

The Finance Act 1994U.K.

8U.K.In paragraph 3(1)(d) of Schedule 5 to the Finance Act 1994 (decisions under or for the purposes of section 9 or 10 of the M3Alcoholic Liquor Duties Act 1979 to be subject to review and appeal), for “section 9 or 10 (remission of duty on spirits for methylation or” there shall be substituted “ section 10 (remission of duty on spirits ”.

Section 14.

SCHEDULE 3U.K. Amusement Machine Licence Duty

IntroductoryU.K.

1U.K.The M4Betting and Gaming Duties Act 1981 shall be amended in accordance with paragraphs 2 to 11 below.

Amusement machine licencesU.K.

2(1)In section 21 (gaming machine licences)—U.K.

(a)in subsection (1), for the words “gaming machine” and “for gaming” there shall be substituted, respectively, “ amusement machine ” and “ for play ”;

(b)in subsection (2), for “a gaming machine licence” there shall be substituted “ an amusement machine licence ”; and

(c)in subsection (3), for “A gaming machine licence” there shall be substituted “ An amusement machine licence ”.

(2)In subsection (3A) of that section (excepted machines), for paragraph (b) there shall be substituted the following paragraphs—

“(b)a five-penny machine which is a prize machine without being a gaming machine or which (if it is a gaming machine) is a small-prize machine, or

(c)a thirty-five-penny machine which is not a prize machine.”

Amusement machine licence dutyU.K.

3(1)In subsection (1) of section 22 (duty on gaming machine licences), for “gaming machine” there shall be substituted “ amusement machine ”.U.K.

(2)In subsection (2) of that section (meaning of “small-prize machine”), for “a gaming machine is a small-prize machine if” there shall be substituted “ an amusement machine is a small-prize machine if it is a prize machine and ”.

Rate of dutyU.K.

4(1)In subsection (1) of section 23 (determination of rate of duty by reference to Table), for “a gaming machine licence” there shall be substituted “ an amusement machine licence ”.U.K.

(2)In subsection (2) of that section—

(a)in paragraph (b), for “or column 3” there shall be substituted “ , column 3 or column 4 ”; and

(b)in the words after that paragraph, for the words “gaming” and “or the rate in column 3” there shall be substituted, respectively, “ amusement ” and “ , the rate in column 3 or the rate in column 4 ”.

(3)For the Table in that subsection (as substituted by section 13 of this Act) there shall be substituted the following Table—

Restrictions on provision of machinesU.K.

5U.K.In section 24 (restrictions on provision of gaming machines)—

(a)for the words “Gaming machines”, “gaming machines” and “gaming machine”, wherever they occur, there shall be substituted, respectively, “ Amusement machines ”, “ amusement machines ” and “ amusement machine ”;

(b)for the word “a”, where it occurs before “gaming machine” in subsection (5)(f), there shall be substituted “ an ”; and

(c)for the words “for gaming”, wherever they occur, there shall be substituted “ for play ”.

Meaning of “amusement machine”U.K.

6(1)For subsections (1) to (3) of section 25 (meaning of “gaming machine”) there shall be substituted the following subsections—U.K.

“(1)A machine is an amusement machine for the purposes of this Act if—

(a)the machine is constructed or adapted for the playing of any game (whether a game of chance, a game of skill or a game of chance and skill combined);

(b)the game is one played by means of the machine (whether automatically or by the operation of the machine by the player or players);

(c)a player pays to play the game (except where he has an opportunity to play without payment as a result of having previously played successfully) either by inserting a coin or token into the machine or in some other way;

(d)the machine automatically—

(i)applies some or all of the rules of the game or displays or records scores in the game; and

(ii)determines when a player who has paid to play a game by means of the machine can no longer play without paying again;

and

(e)the machine is a gaming machine, a video machine or a pinball machine.

(1A)A machine constructed or adapted for the playing of a game is a gaming machine for the purposes of this Act if—

(a)it is a prize machine;

(b)the game which is played by means of the machine is a game of chance, a game of chance and skill combined or a pretended game of chance or of chance and skill combined; and

(c)the outcome of the game is determined by the chances inherent in the action of the machine, whether or not provision is made for manipulation of the machine by a player;

and for the purposes of this subsection a game in which the elements of chance can be overcome by skill shall be treated as a game of chance and skill combined if there is an element of chance in the game that cannot be overcome except by superlative skill.

(1B)A machine constructed or adapted for the playing of a game is a video machine for the purposes of this Act if—

(a)a micro-processor is used to control some or all of the machine’s functions; and

(b)the playing of the game involves information or images being communicated or displayed to the player or players by means of any description of screen, other than one consisting only in a blank surface onto which light is projected.

(1C)For the purposes of this Act an amusement machine is a prize machine unless it is constructed or adapted so that a person playing it once and successfully either receives nothing or receives only—

(a)an opportunity, afforded by the automatic action of the machine, to play again (once or more often) without paying, or

(b)a prize, determined by the automatic action of the machine and consisting in either—

(i)money of an amount not exceeding the sum payable to play the machine once, or

(ii)a token which is, or two or more tokens which in the aggregate are, exchangeable for money of an amount not exceeding that sum.”

(2)In subsection (4) of that section (machines playable by more than one person), for “a gaming machine” there shall be substituted “ a machine of any description ”.

(3)For subsections (5) to (9) of that section there shall be substituted the following subsections—

“(5)For the purposes of sections 21 to 24 above a machine (the actual machine) in relation to which the number determined in accordance with subsection (5A) below is more than one shall be treated (instead of as one machine) as if it were a number of machines (accountable machines) equal to the number so determined.

(5A)That number is—

(a)except where paragraph (b) below applies, the number of individual playing positions provided on the machine for persons to play simultaneously (whether or not while participating in the same game); and

(b)where—

(i)that machine is a video machine but not a gaming machine, and

(ii)the number of such playing positions is more than the number of different screens used for the communication or display of information or images to any person or persons playing a game by means of the machine,

the number of such screens.

(6)Subsection (5) above does not apply in the case of any machine which is an excepted machine for the purposes of section 21 above or in the case of a pinball machine.

(7)Any question whether the accountable machines are, or are not, machines falling within any of the following descriptions, that is to say—

(a)gaming machines,

(b)prize machines,

(c)small-prize machines, or

(d)five-penny machines,

shall be determined according to whether or not the actual machine is a machine of that description, with the accountable machines being taken to be machines of the same description as the actual machine.”

7U.K.After section 25 there shall be inserted the following section—

“25A Power to modify definition of “amusement machine”.

(1)The Treasury may by order modify the provisions of section 25 above—

(a)by adding to the machines for the time being specified in subsection (1)(e) of that section any description of machines which it appears to them, having regard to the use to which the machines are put, to be appropriate for the protection of the revenue so to add to those machines; or

(b)by deleting any description of machines for the time being so specified.

(2)An order under this section may make such incidental, consequential or transitional provision as the Treasury think fit, including provision modifying section 21 or section 25(5A) above for the purpose of—

(a)specifying the circumstances (if any) in which a machine added to section 25(1)(e) above is to be an excepted machine for the purposes of section 21 above; or

(b)determining the number which, in the case of a machine so added, is to be taken into account for the purposes of section 25(5) above.”

Supplementary provisionsU.K.

8(1)In section 26 (supplementary provisions)—U.K.

(a)for the words “gaming machine licence duty” in subsection (1) there shall be substituted “ amusement machine licence duty ”;

(b)for the words “a gaming machine” and “gaming machines”, wherever they occur, there shall be substituted, respectively, “ an amusement machine ” and “ amusement machines ”; and

(c)for the words “for gaming”, wherever they occur, there shall be substituted “ for play ”.

(2)In subsection (2) of that section—

(a)after the definition of “United Kingdom” there shall be inserted the following definitions—

““video machine” has the meaning given by section 25(1B) above;

“prize machine” has the meaning given by section 25(1C) above;” and

(b)F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)After subsection (2) of that section there shall be inserted the following subsection—

“(2A)References in sections 21 to 25 above and in this section and Schedule 4 to this Act to a game, in relation to any machine, include references to a game in the nature of a quiz or puzzle and to a game which is played solely by way of a pastime or against the machine, as well as one played wholly or partly against one or more contemporaneous or previous players.”

9(1)In sections 31 and 33(2) (protection of officers and savings for prohibitions of gaming etc.), for the words “gaming machine licences”, in each case, there shall be substituted “ amusement machine licences ”.U.K.

(2)In section 32(3) (orders subject to affirmative procedure), for “or 14(3)” there shall be substituted “ , 14(3) or 25A ”.

(3)In section 33(1) (interpretation), in the definition of “gaming”, the words “(except where it refers to a machine provided for gaming)” shall be omitted.

10U.K.In Schedule 3 (bingo duty)—

(a)in paragraph 5(1)(b), for “a gaming machine licence” there shall be substituted “ an amusement machine licence ”; and

(b)in paragraph 6, for “a gaming machine” there shall be substituted “ an amusement machine ”.

11(1)In Schedule 4 (supplementary provisions in relation to gaming machine licence duty)—U.K.

(a)for the words “gaming machine” and “gaming machines”, wherever they occur, there shall be substituted, respectively, “ amusement machine ” and “ amusement machines ”; and

(b)for the indefinite article, wherever it occurs before an expression amended by paragraph (a) above, there shall be substituted “ An ” or “ an ”, as the case may require.

(2)In paragraph 1(2) of that Schedule (conditions of exemption for charitable entertainments etc.)—

(a)in paragraph (a), for “of gaming by means of any machine” there shall be substituted “ from any amusement machines ”; and

(b)in paragraph (b), for “and any other provided for gaming” there shall be substituted “ and any other amusement machines provided ”.

(3)In paragraph 2(2)(c) of that Schedule (conditions of exemption for pleasure fairs), for “and any other provided for gaming” there shall be substituted “ and any other amusement machines provided ”.

(4)In paragraph 4 of that Schedule—

(a)for the words “small-prize machines”, wherever they occur, there shall be substituted “ relevant machines ”; and

(b)after sub-paragraph (7) there shall be inserted the following sub-paragraph—

“(7A)An amusement machine is a relevant machine for the purposes of this paragraph unless it is a gaming machine which is not a small-prize machine.”;

and in relation to the winter period beginning with November 1995, sub-paragraph(4) of that paragraph shall have effect as if the references by virtue of this paragraph to an amusement machine licence included references to a gaming machine licence.

(5)After paragraph 7 of that Schedule there shall be inserted the following paragraph—

“ Payment of duty by instalmentsU.K.

7A(1)The Commissioners may make and publish arrangements setting out the circumstances in which, and the conditions subject to which, a person to whom an amusement machine licence is granted for a period of twelve months may, at his request and if the Commissioners think fit, be permitted to pay the duty on that licence by regular instalments during the period of the licence, instead of at the time when it is granted.

(2)Arrangements under this paragraph shall provide for the amount of each instalment to be such that the aggregate amount of all the instalments to be paid in respect of any licence is an amount equal to 105 per cent. of what would have been the duty on that licence apart from this paragraph.

(3)Sub-paragraph (4) below applies if a person who has been permitted, in accordance with arrangements under this paragraph, to pay the duty on any amusement machine licence by instalments—

(a)fails to pay any instalment at the time when it becomes due in accordance with the arrangements; and

(b)does not make good that failure within seven days of being required to do so by notice given by the Commissioners.

(4)Where this sub-paragraph applies—

(a)the licence shall be treated as having ceased to be in force as from the time when the instalment became due;

(b)the person to whom the licence was granted shall become liable to any unpaid duty to which he would have been liable under paragraph 11(1C) below if he had surrendered the licence at that time; and

(c)any amusement machines found on the premises to which the licence related shall be liable to forfeiture.

(5)Sections 14 to 16 of the M5Finance Act 1994 (review and appeals) shall have effect in relation to any decision of the Commissioners refusing an application for permission to pay duty by instalments in accordance with arrangements under this paragraph as if that decision were a decision of a description specified in Schedule 5 to that Act.”

(6)In paragraph 11 of that Schedule (surrender), after sub-paragraph (1B) there shall be inserted the following sub-paragraph—

“(1C)Where, in a case where duty is being paid in accordance with arrangements made under paragraph 7A above, the amount of duty actually paid on a licence that is surrendered is less than the amount which would have been paid on that licence if the period for which it was granted had been reduced by the number of complete months in that period which have not expired when the licence is surrendered, the difference between those amounts shall be treated as unpaid duty.”

(7)Paragraph 13 of that Schedule (labelling and marking of machines) shall cease to have effect.

(8)In paragraph 14 of that Schedule (power to enter premises), for the words “for gaming” there shall be substituted “ for play ”.

(9)In paragraph 16 of that Schedule (enforcement), after sub-paragraph (1) there shall be inserted the following sub-paragraph—

“(1A)This paragraph does not apply to any contravention or failure to comply with arrangements under paragraph 7A above or to any failure or refusal to comply with a requirement made under or for the purposes of any such arrangements.”

F3(10). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Consequential amendment of the Customs and Excise Management Act 1979U.K.

12U.K.In section 102(3)(a) of the M6Customs and Excise Management Act 1979 (penalty for failure to deliver up a licence), for “a gaming machine licence” there shall be substituted “ an amusement machine licence ”.

Section 19.

SCHEDULE 4U.K. Vehicle Excise and Registration

Part IU.K. Introduction

1U.K.In this Schedule “the 1994 Act” means the M7Vehicle Excise and Registration Act 1994.

Part IIU.K. Exemptions

Abolition of certain exemptionsU.K.

2U.K.The following paragraphs of Schedule 2 to the 1994 Act (exempt vehicles) shall be omitted—

(a)paragraph 1 (electrically propelled vehicles);

(b)paragraph 12 (road construction vehicles);

(c)paragraph 13 (road rollers);

(d)paragraph 14 (snow clearing vehicles);

(e)paragraph 15 (gritting vehicles);

(f)paragraph 16 (street cleansing vehicles);

(g)paragraph 17 (tower wagons used solely in connection with street lighting);

(h)paragraph 21 (vehicles used for short journeys between different parts of person’s land).

Exemption for police vehiclesU.K.

3U.K.In Schedule 2 to the 1994 Act the following shall be inserted after paragraph 3—

“ Police vehiclesU.K.

3AA vehicle is an exempt vehicle when it is being used for police purposes.”

Exemption for vehicles used between different parts of landU.K.

4U.K.In Schedule 2 to the 1994 Act the following shall be inserted after paragraph 20—

“ Vehicles used between different parts of landU.K.

20AA vehicle is an exempt vehicle if—

(a)it is used only for purposes relating to agriculture, horticulture or forestry,

(b)it is used on public roads only in passing between different areas of land occupied by the same person, and

(c)the distance it travels on public roads in passing between any two such areas does not exceed 1.5 kilometres.”

CommencementU.K.

5U.K.This Part of this Schedule shall come into force on 1st July 1995.

Part IIIU.K. Rates

GeneralU.K.

6(1)In Schedule 1 to the 1994 Act (annual rates of duty) the following paragraph shall be substituted for paragraph 1 (annual rate of duty where no other rate specified)—U.K.

“1(1)The annual rate of vehicle excise duty applicable to a vehicle in respect of which no other annual rate is specified by this Schedule is—

(a)if it was constructed after 1946, the general rate;

(b)if it was constructed before 1947, the reduced rate.

(2)The general rate is £135.

(3)The reduced rate is 50 per cent. of the general rate.

(4)Where an amount arrived at in accordance with sub-paragraph (3) is an amount—

(a)which is not a multiple of £5, and

(b)which on division by five does not produce a remainder of £2.50,

the rate is the amount arrived at rounded (either up or down) to the nearest amount which is a multiple of £5.

(5)Where an amount arrived at in accordance with sub-paragraph (3) is an amount which on division by five produces a remainder of £2.50, the rate is the amount arrived at increased by £2.50.”

F4(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

MotorcyclesU.K.

7U.K.F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Buses etc.U.K.

8U.K.In Schedule 1 to the 1994 Act the following shall be substituted for Part III (hackney carriages)—

“Part IIIU.K. Buses

3(1)The annual rate of vehicle excise duty applicable to a bus is—

(a)if its seating capacity is nine to sixteen, the same as the basic goods vehicle rate;

(b)if its seating capacity is seventeen to thirty-five, 133 per cent. of the basic goods vehicle rate;

(c)if its seating capacity is thirty-six to sixty, 200 per cent. of the basic goods vehicle rate;

(d)if its seating capacity is over sixty, 300 per cent. of the basic goods vehicle rate.

(2)In this paragraph “bus” means a vehicle which—

(a)is a public service vehicle (within the meaning given by section 1 of the M8Public Passenger Vehicles Act 1981), and

(b)is not an excepted vehicle.

(3)For the purposes of this paragraph an excepted vehicle is—

(a)a vehicle which has a seating capacity under nine,

(b)a vehicle which is a community bus,

(c)a vehicle used under a permit granted under section 19 of the M9Transport Act 1985 (educational and other bodies) and used in circumstances where the requirements mentioned in subsection (2) of that section are met, or

(d)a vehicle used under a permit granted under section 10B of the M10Transport Act (Northern Ireland) 1967 (educational and other bodies) and used in circumstances where the requirements mentioned in subsection (2) of that section are met.

(4)In sub-paragraph (3)(b) “community bus” means a vehicle—

(a)used on public roads solely in accordance with a community bus permit (within the meaning given by section 22 of the M11Transport Act 1985), and

(b)not used for providing a service under an agreement providing for service subsidies (within the meaning given by section 63(10)(b) of that Act).

(5)For the purposes of this paragraph the seating capacity of a vehicle shall be determined in accordance with regulations made by the Secretary of State.

(6)In sub-paragraph (1) references to the basic goods vehicle rate are to the rate applicable, by virtue of sub-paragraph (1) of paragraph 9, to a rigid goods vehicle which falls within column (3) of the table in that sub-paragraph and has a revenue weight exceeding 3,500 kilograms and not exceeding 7,500 kilograms.

(7)Where an amount arrived at in accordance with sub-paragraph (1)(b), (c) or (d) is an amount—

(a)which is not a multiple of £10, and

(b)which on division by ten does not produce a remainder of £5,

the rate is the amount arrived at rounded (either up or down) to the nearest amount which is a multiple of £10.

(8)Where an amount arrived at in accordance with sub-paragraph (1)(b), (c) or (d) is an amount which on division by ten produces a remainder of £5, the rate is the amount arrived at increased by £5.”

Special vehiclesU.K.

9(1)Part IV of Schedule 1 to the 1994 Act (special machines) shall be amended as follows.U.K.

(2)For the heading “SPECIAL MACHINES” there shall be substituted “ SPECIAL VEHICLES ”.

(3)In paragraph 4(1) (annual rate of £35) for the words “special machine is £35” there shall be substituted “ special vehicle is the same as the basic goods vehicle rate ”.

(4)In paragraph 4(2) (definition of “special machine”)—

(a)for the words “ “special machine” means” there shall be substituted “ “special vehicle” means a vehicle which has a revenue weight exceeding 3,500 kilograms and is ”;

(b)paragraphs (a), (b) and (f) (tractors, agricultural engines and mowing machines) shall be omitted;

(c)after paragraph (e) there shall be inserted—

“(ee)a road roller.”

(5)Paragraph 4(3) (definition of “tractor”) shall be omitted.

(6)The following sub-paragraph shall be inserted after sub-paragraph (6) of paragraph 4—

“(7)In sub-paragraph (1) the reference to the basic goods vehicle rate is to the rate applicable, by virtue of sub-paragraph (1) of paragraph 9, to a rigid goods vehicle which falls within column (3) of the table in that sub-paragraph and has a revenue weight exceeding 3,500 kilograms and not exceeding 7,500 kilograms.”

Special concessionary vehiclesU.K.

F610U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Recovery vehiclesU.K.

11(1)Paragraph 5 of Schedule 1 to the 1994 Act (recovery vehicles) shall be amended as follows.U.K.

(2)In sub-paragraph (1) (annual rate of duty of £85) for the words “is £85” there shall be substituted “is—

(a)if it has a revenue weight exceeding 3,500 kilograms and not exceeding 12,000 kilograms, the same as the basic goods vehicle rate;

(b)if it has a revenue weight exceeding 12,000 kilograms and not exceeding 25,000 kilograms, 300 per cent. of the basic goods vehicle rate;

(c)if it has a revenue weight exceeding 25,000 kilograms, 500 per cent. of the basic goods vehicle rate.”

(3)The following sub-paragraphs shall be inserted after sub-paragraph (5)—

“(6)In sub-paragraph (1) references to the basic goods vehicle rate are to the rate applicable, by virtue of sub-paragraph (1) of paragraph 9, to a rigid goods vehicle which falls within column (3) of the table in that sub-paragraph and has a revenue weight exceeding 3,500 kilograms and not exceeding 7,500 kilograms.

(7)Where an amount arrived at in accordance with sub-paragraph (1)(b) or (c) is an amount—

(a)which is not a multiple of £10, and

(b)which on division by ten does not produce a remainder of £5,

the rate is the amount arrived at rounded (either up or down) to the nearest amount which is a multiple of £10.

(8)Where an amount arrived at in accordance with sub-paragraph (1)(b) or (c) is an amount which on division by ten produces a remainder of £5, the rate is the amount arrived at increased by £5.”

Vehicles used for exceptional loadsU.K.

F712U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Haulage vehiclesU.K.

13(1)Paragraph 7 of Schedule 1 to the 1994 Act (haulage vehicles) shall be amended as follows.U.K.

(2)In sub-paragraph (1) for paragraphs (a) and (b) (rate of £100 for showmen’s vehicles and of £330 for other haulage vehicles) there shall be substituted—

“(a)if it is a showman’s vehicle, the same as the basic goods vehicle rate;

(b)in any other case, the general haulage vehicle rate.”

(3)The following sub-paragraphs shall be inserted after sub-paragraph (2)—

“(3)In sub-paragraph (1) the reference to the basic goods vehicle rate is to the rate applicable, by virtue of sub-paragraph (1) of paragraph 9, to a rigid goods vehicle which falls within column (3) of the table in that sub-paragraph and has a revenue weight exceeding 3,500 kilograms and not exceeding 7,500 kilograms.

(4)In sub-paragraph (1) the reference to the general haulage vehicle rate is to 75 per cent. of the rate applicable, by virtue of sub-paragraph (1) of paragraph 11, to a tractive unit which falls within column (3) of the table in that sub-paragraph and has a revenue weight exceeding 12,000 kilograms and not exceeding 16,000 kilograms.

(5)Where an amount arrived at in accordance with sub-paragraph (4) is an amount—

(a)which is not a multiple of £10, and

(b)which on division by ten does not produce a remainder of £5,

the rate is the amount arrived at rounded (either up or down) to the nearest amount which is a multiple of £10.

(6)Where an amount arrived at in accordance with sub-paragraph (4) is an amount which on division by ten produces a remainder of £5, the rate is the amount arrived at increased by £5.”

Goods vehiclesU.K.

14(1)Part VIII of Schedule 1 to the 1994 Act (goods vehicles) shall be amended as follows.U.K.

(2)Paragraph 8 (basic rate) shall be omitted.

(3)In paragraph 9(1) (rates of duty for rigid goods vehicles)—

(a)at the beginning there shall be inserted “ Subject to sub-paragraphs (2) and (3), ”;

(b)for the words “a plated gross weight (or, in Northern Ireland, a relevant maximum weight) exceeding 7,500 kilograms” there shall be substituted “ a revenue weight exceeding 3,500 kilograms ”;

(c)in paragraph (a) for the words “plated gross weight (or relevant maximum weight)” there shall be substituted “ revenue weight ”.

(4)The following table shall be substituted for the table in paragraph 9(1)—

(5)For sub-paragraph (2) of paragraph 9 there shall be substituted the following sub-paragraphs—

“(2)The annual rate of vehicle excise duty applicable—

(a)to any rigid goods vehicle which is a showman’s goods vehicle with a revenue weight exceeding 3,500 kilograms but not exceeding 44,000 kilograms, and

(b)to any rigid goods vehicle which is an island goods vehicle with a revenue weight exceeding 3,500 kilograms,

shall be the basic goods vehicle rate.

(3)The annual rate of vehicle excise duty applicable to a rigid goods vehicle which has a revenue weight exceeding 44,000 kilograms and is not an island goods vehicle shall be the heavy tractive unit rate.

(4)In sub-paragraph (2) the reference to the basic goods vehicle rate is to the rate applicable, by virtue of sub-paragraph (1), to a rigid goods vehicle which falls within column (3) of the table in that sub-paragraph and has a revenue weight exceeding 3,500 kilograms and not exceeding 7,500 kilograms.

(5)In sub-paragraph (3) the reference to the heavy tractive unit rate is to the rate applicable, by virtue of sub-paragraph (1) of paragraph 11, to a tractive unit which falls within column (3) of the table in that sub-paragraph and has a revenue weight exceeding 38,000 kilograms and not exceeding 44,000 kilograms.”

(6)In paragraph 10(1) (trailer supplement) for the words “plated gross weight (or relevant maximum weight)”—

(a)in the first place where they occur, there shall be substituted “ revenue weight ”; and

(b)in the second and third places where they occur, there shall be substituted “ plated gross weight ”.

(7)In paragraph 10(2) (lower rate of trailer supplement)—

(a)the words “(or relevant maximum weight)” shall be omitted; and

F8(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8)In paragraph 10(3) (higher rate of trailer supplement)—

(a)the words “(or relevant maximum weight)” shall be omitted; and

F9(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10)Paragraph 10(4) (reference to paragraph 12) shall be omitted.

(11)In paragraph 11(1) (rates of duty for tractive units)—

(a)at the beginning there shall be inserted “ Subject to sub-paragraphs (2) and (3), ”;

(b)for the words “a plated train weight (or, in Northern Ireland, a relevant maximum train weight) exceeding 7,500 kilograms” there shall be substituted “ a revenue weight exceeding 3,500 kilograms ”;

(c)in paragraph (a) for the words “plated train weight (or relevant maximum train weight)” there shall be substituted “ revenue weight ”.

(12)The following table shall be substituted for the table in paragraph 11(1)—

(13)For sub-paragraph (2) of paragraph 11 there shall be substituted the following sub-paragraphs—

“(2)The annual rate of vehicle excise duty applicable—

(a)to any tractive unit which is a showman’s goods vehicle with a revenue weight exceeding 3,500 kilograms but not exceeding 44,000 kilograms, and

(b)to any tractive unit which is an island goods vehicle with a revenue weight exceeding 3,500 kilograms,

shall be the basic goods vehicle rate.

(3)The annual rate of vehicle excise duty applicable to a tractive unit which has a revenue weight exceeding 44,000 kilograms and is not an island goods vehicle shall be the heavy tractive unit rate.

(4)In sub-paragraph (2) the reference to the basic goods vehicle rate is to the rate applicable, by virtue of sub-paragraph (1) of paragraph 9, to a rigid goods vehicle which falls within column (3) of the table in that sub-paragraph and has a revenue weight exceeding 3,500 kilograms and not exceeding 7,500 kilograms.

(5)In sub-paragraph (3) the reference to the heavy tractive unit rate is to the rate applicable, by virtue of sub-paragraph (1), to a tractive unit which falls within column (3) of the table in that sub-paragraph and has a revenue weight exceeding 38,000 kilograms and not exceeding 44,000 kilograms.”

(14)Paragraph 12 (farmers’ goods vehicles and showmen’s goods vehicles) shall be omitted.

(15)In paragraph 13(1) (regulations for reducing plated weights) for the words from “its plated gross weight” to “weight specified” there shall be substituted “ its revenue weight were such lower weight as may be specified ”.

(16)In paragraph 14 (vehicles for conveying machines) sub-paragraphs (b) and (c) shall be omitted.

(17)In paragraph 17(1) (meaning of “trailer”)—

(a)at the end of paragraph (a) there shall be inserted “ or ”;

(b)paragraphs (c) to (e) (road construction vehicles, certain farming implements drawn by farmer’s goods vehicle, and certain trailers used to carry gas for propulsion, excluded from meaning of “trailer”) shall be omitted.

(18)Paragraph 17(2) (interpretation of paragraph 17(1)(e)) shall be omitted.

(19)The following shall be inserted after paragraph 17—

“ Meaning of “island goods vehicle”U.K.

18(1)In this Part “island goods vehicle” means any goods vehicle which—

(a)is kept for use wholly or partly on the roads of one or more small islands; and

(b)is not kept or used on any mainland road, except in a manner authorised by sub-paragraph (2) or (3).

(2)The keeping or use of a goods vehicle on a mainland road is authorised by this sub-paragraph if—

(a)the road is one used for travel between a landing place and premises where vehicles disembarked at that place are loaded or unloaded, or both;

(b)the length of the journey, using that road, from that landing place to those premises is not more than five kilometres;

(c)the vehicle in question is one which was disembarked at that landing place after a journey by sea which began on a small island; and

(d)the loading or unloading of that vehicle is to take place, or has taken place, at those premises.

(3)The keeping or use of a goods vehicle on a mainland road is authorised by this sub-paragraph if—

(a)that vehicle has a revenue weight not exceeding 17,000 kilograms;

(b)that vehicle is normally kept at a base or centre on a small island; and

(c)the only journeys for which that vehicle is used are ones that begin or end at that base or centre.

(4)References in this paragraph to a small island are references to any such island falling within sub-paragraph (5) as may be designated as a small island by an order made by the Secretary of State.

(5)An island falls within this sub-paragraph if—

(a)it has an area of 230,000 hectares or less; and

(b)the absence of a bridge, causeway, tunnel, ford or other way makes it at all times impracticable for road vehicles to be driven under their own power from that island as far as the mainland.

(6)The reference in sub-paragraph (5) to driving a road vehicle as far as the mainland is a reference to driving it as far as any public road in the United Kingdom which is not on an island with an area of 230,000 hectares or less and is not a road connecting two such islands.

(7)In this paragraph—

• “island” includes anything that is an island only when the tide reaches a certain height;

• “landing place” means any place at which vehicles are disembarked after sea journeys;

• “mainland road” means any public road in the United Kingdom, other than one which is on a small island or which connects two such islands; and

• “road vehicles” means vehicles which are designed or adapted primarily for being driven on roads and which do not have any special features for facilitating their being driven elsewhere;

and references in this paragraph to the loading or unloading of a vehicle include references to the loading or unloading of its trailer or semi-trailer.”

Charge at higher rateU.K.

15U.K.In section 17 of the 1994 Act (exceptions from charge at higher rate) the following provisions shall be omitted—

(a)subsections (3) to (5) (provisions about farmers’ goods vehicles);

(b)subsections (6) and (7) (agricultural tractors and farmers’ goods vehicles in Northern Ireland).

CommencementU.K.

16(1)This Part of this Schedule shall apply in relation to licences taken out on or after 1st July 1995.U.K.

(2)This Part of this Schedule shall also apply in relation to any use after 30th June 1995 of a vehicle which—

(a)had a plated gross weight or plated train weight (or, in Northern Ireland, a relevant maximum weight or relevant maximum train weight) on that date, and

(b)at the time when it is used has a confirmed maximum weight which, if that had been its plated gross weight or plated train weight (or relevant maximum weight or relevant maximum train weight) on that date, would have brought it within a description of vehicle to which a higher rate of duty was applicable on that date.

Part IVU.K. Rates: Supplementary

IntroductionU.K.

17U.K.This Part of this Schedule (which supplements provisions of Part III of this Schedule) makes—

(a)provision for determining the revenue weight of a vehicle, and

(b)consequential amendments.

Issue of vehicle licencesU.K.

18U.K.In section 7(3) of the 1994 Act (matters that may be contained in declarations and particulars to be made or furnished by applicants for licences) for paragraph (b) there shall be substituted—

“(b)the vehicle’s revenue weight,

(ba)the place where the vehicle has been or is normally kept, and”.

Exchange of licencesU.K.

19U.K.In section 15(4) of the 1994 Act (exchange of licences where higher rate becomes chargeable) at the beginning there shall be inserted “ Subject to section 7(5), ”.

Exceptions from charge at higher rateU.K.

20U.K.In section 16 of the 1994 Act (exceptions from charge at higher rate) in each of subsections (2)(b)(i), (4)(b)(i) and (6)(b)(i) for the words “a plated train weight (or, in Northern Ireland, a relevant maximum train weight)” there shall be substituted “ a revenue weight ”.

Combined road and rail transportU.K.

21U.K.In section 20 of the 1994 Act (combined road and rail transport) for subsection (3) there shall be substituted the following subsection—

“(3)In this section “relevant goods vehicle” means any vehicle the rate of duty applicable to which is provided for in Part VIII of Schedule 1 or which would be such a vehicle if Part VI of that Schedule did not apply to the vehicle.”

Relevant higher rate used in calculating penaltyU.K.

22U.K.In section 39 of the 1994 Act (relevant higher rate used in calculating penalty)—

(a)in subsection (2)(a) for the words “plated gross weight or plated train weight (or, in Northern Ireland, a relevant maximum weight or relevant maximum train weight)” there shall be substituted “ revenue weight ”;

(b)in each of subsections (4)(a) and (5)(a) for the words “plated gross weight or plated train weight (or, in Northern Ireland, relevant maximum weight or relevant maximum train weight)” there shall be substituted “ revenue weight ”;

(c)in the words after paragraph (b) of each of subsections (4) and (5) for the words “plated gross weight or plated train weight (or relevant maximum weight or relevant maximum train weight)” there shall be substituted “ revenue weight ”.

Relevant period used in calculating penaltyU.K.

23U.K.In section 40(2) of the 1994 Act (relevant period used in calculating penalty)—

(a)for the words “plated gross weight or a plated train weight (or, in Northern Ireland, a relevant maximum weight or relevant maximum train weight)” there shall be substituted “ revenue weight ”;

(b)for the words “was plated with (or rated at) the higher weight” there shall be substituted “ became a vehicle with a higher revenue weight ”.

False or misleading information etc.U.K.

24U.K.In section 45 of the 1994 Act (false or misleading information) after subsection (3) there shall be inserted the following subsections—

“(3A)A person who, in supplying information or producing documents for the purposes of any regulations made under section 61A—

(a)makes a statement which to his knowledge is false or in any material respect misleading or recklessly makes a statement which is false or in any material respect misleading, or

(b)produces or otherwise makes use of a document which to his knowledge is false or in any material respect misleading,

is guilty of an offence.

(3B)A person who—

(a)with intent to deceive, forges, alters or uses a certificate issued by virtue of section 61A;

(b)knowing or believing that it will be used for deception lends such a certificate to another or allows another to alter or use it; or

(c)without reasonable excuse makes or has in his possession any document so closely resembling such a certificate as to be calculated to deceive,

is guilty of an offence.”

25U.K.In section 60(2) of the 1994 Act (orders subject to annulment), after “section 3(3)” there shall be inserted “ , paragraph 18(4) of Schedule 1 ”.

Meaning of “revenue weight”U.K.

26U.K.Immediately before section 61 of the 1994 Act there shall be inserted the following section—

“60A Meaning of “revenue weight”.

(1)Any reference in this Act to the revenue weight of a vehicle is a reference—

(a)where it has a confirmed maximum weight, to that weight; and

(b)in any other case, to the weight determined in accordance with the following provisions of this section.

(2)For the purposes of this Act a vehicle which does not have a confirmed maximum weight shall have a revenue weight which, subject to the following provisions of this section, is equal to its design weight.

(3)Subject to subsection (4), the design weight of a vehicle is, for the purposes of this section—

(a)in the case of a tractive unit, the weight which is required, by the design and any subsequent adaptations of that vehicle, not to be exceeded by an articulated vehicle which—

(i)consists of the vehicle and any semi-trailer capable of being drawn by it, and

(ii)is in normal use and travelling on a road laden;

and

(b)in the case of any other vehicle, the weight which the vehicle itself is designed or adapted not to exceed when in normal use and travelling on a road laden.

(4)Where, at any time, a vehicle—

(a)does not have a confirmed maximum weight,

(b)has previously had such a weight, and

(c)has not acquired a different design weight by reason of any adaptation made since the most recent occasion on which it had a confirmed maximum weight,

the vehicle’s design weight at that time shall be equal to its confirmed maximum weight on that occasion.

(5)An adaptation reducing the design weight of a vehicle shall be disregarded for the purposes of this section unless it is a permanent adaptation.

(6)For the purposes of this Act where—

(a)a vehicle which does not have a confirmed maximum weight is used on a public road in the United Kingdom, and

(b)at the time when it is so used—

(i)the weight of the vehicle, or

(ii)in the case of a tractive unit used as part of an articulated vehicle consisting of the vehicle and a semi-trailer, the weight of the articulated vehicle,

exceeds what, apart from this subsection, would be the vehicle’s design weight,

it shall be conclusively presumed, as against the person using the vehicle, that the vehicle has been temporarily adapted so as to have a design weight while being so used equal to the actual weight of the vehicle or articulated vehicle at that time.

(7)For the purposes of this Act limitations on the space available on a vehicle for carrying a load shall be disregarded in determining the weight which the vehicle is designed or adapted not to exceed when in normal use and travelling on a road laden.

(8)A vehicle which does not have a confirmed maximum weight shall not at any time be taken to have a revenue weight which is greater than the maximum laden weight at which that vehicle or, as the case may be, an articulated vehicle consisting of that vehicle and a semi-trailer may lawfully be used in Great Britain.

(9)A vehicle has a confirmed maximum weight at any time if at that time—

(a)it has a plated gross weight or a plated train weight; and

(b)that weight is the maximum laden weight at which that vehicle or, as the case may be, an articulated vehicle consisting of that vehicle and a semi-trailer may lawfully be used in Great Britain;

and the confirmed maximum weight of a vehicle with such a weight shall be taken to be the weight referred to in paragraph (a).

(10)Where any vehicle has a special maximum weight in Northern Ireland which is greater than the maximum laden weight at which that vehicle or, as the case may be, an articulated vehicle consisting of that vehicle and a semi-trailer may lawfully be used in Great Britain, this section shall have effect, in relation to that vehicle, as if the references to Great Britain in subsections (8) and (9) were references to Northern Ireland.

(11)For the purposes of this section a vehicle has a special maximum weight in Northern Ireland if an order under Article 29(3) of the M12Road Traffic (Northern Ireland) Order 1981 (authorisation of use on roads of vehicles and trailers not complying with regulations) has effect in relation to that vehicle for determining the maximum laden weight at which it may lawfully be used in Northern Ireland or, as the case may be, for determining the maximum laden weight at which an articulated vehicle consisting of that vehicle and a semi-trailer may lawfully be used there.”

InterpretationU.K.

27(1)In subsection (3) of section 61 of the 1994 Act (meaning of “appropriate plate”)—U.K.

(a)the word “ and ” shall be inserted at the end of paragraph (a); and

(b)paragraph (c) (plated weight determined by reference to section 41 of the M13Road Traffic Act 1988) and the word “and” immediately preceding it shall be omitted.

(2)After subsection (3) of that section there shall be inserted the following subsection—

“(3A)Where it appears to the Secretary of State that there is a description of document which—

(a)falls to be treated for some or all of the purposes of the M14Road Traffic Act 1988 as if it were a plating certificate, or

(b)is issued under the law of any state in the European Economic Area for purposes which are or include purposes corresponding to those for which such a certificate is issued,

he may by regulations provide for references in this section to a plating certificate to have effect as if they included references to a document of that description.”

(3)Subsections (4), (5) and (7) of that section (relevant weights in Northern Ireland and definition of “design weight”) shall be omitted.

Certificates as to vehicle weightU.K.

28U.K.After section 61 of the 1994 Act there shall be inserted the following section—

“61A Certificates etc. as to vehicle weight.

(1)The Secretary of State may by regulations make provision—

(a)for the making of an application to the Secretary of State for the issue of a certificate stating the design weight of a vehicle;

(b)for the manner in which any determination of the design weight of any vehicle is to be made on such an application and for the issue of a certificate on the making of such a determination;

(c)for the examination, for the purposes of the determination of the design weight of a vehicle, of that vehicle by such persons, and in such manner, as may be prescribed by the regulations;

(d)for a certificate issued on the making of such a determination to be treated as having conclusive effect for the purposes of this Act as to such matters as may be prescribed by the regulations;

(e)for the Secretary of State to be entitled, in cases prescribed by the regulations, to require the production of such a certificate before making a determination for the purposes of section 7(5); and

(f)for appeals against determinations made in accordance with the regulations.

(2)Regulations under this section may provide for an adaptation of a vehicle—

(a)to be taken into account in determining the design weight of a vehicle in a case to which section 60A(6) does not apply, or

(b)to be treated as permanent for the purposes of section 60A(5),

if, and only if, it is an adaptation with respect to which a certificate has been issued under the regulations.

(3)Regulations under this section may provide that such documents purporting to be plating certificates (within the meaning of Part II of the M15Road Traffic Act 1988) as satisfy requirements prescribed by the regulations are to have effect, for some or all of the purposes of this Act, as if they were certificates issued under such regulations.

(4)Without prejudice to the generality of the preceding provisions of this section, regulations under this section may, in relation to—

(a)the examination of a vehicle on an application under the regulations, or

(b)any appeals against determinations made for the purposes of the issue of a certificate in accordance with the regulations,

make provision corresponding to, or applying (with or without modifications), any of the provisions having effect by virtue of so much of sections 49 to 51 of the M16Road Traffic Act 1988 as relates to examinations authorised by virtue of, or appeals under, any of those sections.

(5)In this section “design weight” has the same meaning as in section 60A.”

CommencementU.K.

29U.K.Paragraph 16 above shall apply for the purposes of this Part of this Schedule as it applies for the purposes of Part III of this Schedule.

Part VU.K. Licences

Applications for licencesU.K.

30(1)In section 7 of the 1994 Act (issue of vehicle licences)—U.K.

(a)in subsection (1) (regulations about applications) for “prescribed by regulations made” there shall be substituted “ specified ”;

(b)in subsection (2) for “prescribed” there shall be substituted “ specified ”.

(2)In section 11 of the 1994 Act (issue of trade licences) in subsection (1) (regulations about applications)—

(a)for “prescribed by regulations made” there shall be substituted “ specified ”;

(b)for “so prescribed” there shall be substituted “ prescribed by regulations made by the Secretary of State ”.

(3)This paragraph shall apply in relation to applications made after the day on which this Act is passed.

Duration of trade licencesU.K.

31(1)In section 13 of the 1994 Act (duration of trade licences) in subsection (1) at the end of paragraph (c) there shall be inserted “ and ending no later than the relevant date. ”U.K.

(2)After subsection (1) of that section there shall be inserted—

“(1A)In subsection (1)(c) “the relevant date” means—

(a)in relation to a licence taken out for a period beginning with the first day of any of the months February to June in any year, 31st December of that year;

(b)in relation to a licence taken out for a period beginning with the first day of any of the months August to December in any year, 30th June of the following year.”

(3)This paragraph shall apply in relation to licences taken out after the day on which this Act is passed.

Payment for licences by chequeU.K.

32(1)The following section shall be inserted after section 19 of the 1994 Act—U.K.

“19A Payment for licences by cheque.

(1)The Secretary of State may, if he thinks fit, issue a vehicle licence or a trade licence on receipt of a cheque for the amount of the duty payable on it.

(2)In a case where—

(a)a vehicle licence or a trade licence is issued to a person on receipt of a cheque which is subsequently dishonoured, and

(b)the Secretary of State sends a notice by post to the person informing him that the licence is void as from the time when it was granted,

the licence shall be void as from the time when it was granted.

(3)In a case where—

(a)a vehicle licence or a trade licence is issued to a person on receipt of a cheque which is subsequently dishonoured,

(b)the Secretary of State sends a notice by post to the person requiring him to secure that the duty payable on the licence is paid within such reasonable period as is specified in the notice,

(c)the requirement in the notice is not complied with, and

(d)the Secretary of State sends a further notice by post to the person informing him that the licence is void as from the time when it was granted,

the licence shall be void as from the time when it was granted.

(4)Section 102 of the M17Customs and Excise Management Act 1979 (payment for excise licences by cheque) shall not apply in relation to a vehicle licence or a trade licence.”

(2)The following section shall be inserted after section 35 of the 1994 Act—

“35A Dishonoured cheques.

(1)In a case where—

(a)a notice sent as mentioned in section 19A(2)(b) or a further notice sent as mentioned in section 19A(3)(d) requires the person to deliver up the licence within such reasonable period as is specified in the notice, and

(b)the person fails to comply with the requirement within that period,

he shall be liable on summary conviction to a penalty of an amount found under subsection (2).

(2)The amount is whichever is the greater of—

(a)level 3 on the standard scale;

(b)an amount equal to five times the annual rate of duty that was payable on the grant of the licence or would have been so payable if it had been taken out for a period of twelve months.”

(3)In section 36 of the 1994 Act (dishonoured cheques: additional liability) in subsection (1) for the words from “102” to “cheque)” there shall be substituted “ 35A ”.

(4)This paragraph shall apply in relation to licences taken out after the day on which this Act is passed.

Part VIU.K. Registration

33U.K.In section 21 of the 1994 Act (registration of vehicles) at the beginning of subsections (1) and (2) there shall be inserted “ Subject to subsection (3) ” and after subsection (2) there shall be inserted—

“(3)The Secretary of State may by regulations provide that in such circumstances as may be prescribed by the regulations a vehicle shall not be registered under this section until a fee of such amount as may be so prescribed is paid.

(4)The Secretary of State may by regulations make provision about repayment of any sum paid by way of a fee mentioned in subsection (3), and the regulations may in particular include provision—

(a)that repayment shall be made only if a specified person is satisfied that specified conditions are met or in other specified circumstances;

(b)that repayment shall be made in part only;

(c)that, in the case of partial repayment, the amount repaid shall be a specified sum or determined in a specified manner;

(d)for repayment of different amounts in different circumstances;

and “specified” here means specified in the regulations.”

34(1)Section 22 of the 1994 Act (registration regulations) shall be amended as follows.U.K.

(2)In subsection (1) the following paragraph shall be inserted after paragraph (d)—

“(dd)require a person by whom any vehicle is sold or disposed of to furnish the person to whom it is sold or disposed of with such document relating to the vehicle’s registration as may be prescribed by the regulations, and to do so at such time as may be so prescribed.”

(3)The following subsections shall be inserted after subsection (1)—

“(1A)The Secretary of State may make regulations providing for the sale of information derived from particulars contained in the register—

(a)to such persons as the Secretary of State thinks fit, and

(b)for such price and on such other terms, and subject to such restrictions, as he thinks fit,

if the information does not identify any person or contain anything enabling any person to be identified.

(1B)Without prejudice to the generality of paragraph (d) of subsection (1) above, regulations under that paragraph may require—

(a)any person there mentioned to furnish particulars to the other person there mentioned or to the Secretary of State or to both;

(b)any person there mentioned who is furnished with particulars in pursuance of the regulations to furnish them to the Secretary of State.”

Part VIIU.K. Offences

35(1)In section 31 of the 1994 Act (relevant period for purposes of additional liability) in subsection (5)(b) (case where duty or amount equal to duty has been paid) the words “(or an amount equal to the duty due)” shall be omitted.U.K.

(2)This paragraph shall apply in relation to offences committed after the day on which this Act is passed.

36(1)The following section shall be inserted after section 32 of the 1994 Act—U.K.

“32A Immobilisation, removal and disposal of vehicles.

Schedule 2A (which relates to the immobilisation of vehicles as regards which it appears that an offence under section 29(1) is being committed and to their removal and disposal) shall have effect.”

(2)The following Schedule shall be inserted after Schedule 2 to the 1994 Act—

“SCHEDULE 2AU.K. Immobilisation, removal and disposal of vehicles

ImmobilisationU.K.

1(1)The Secretary of State may make regulations under this Schedule with respect to any case where an authorised person has reason to believe that, on or after such date as may be prescribed, an offence under section 29(1) is being committed as regards a vehicle which is stationary on a public road.

(2)The regulations may provide that the authorised person or a person acting under his direction may—

(a)fix an immobilisation device to the vehicle while it remains in the place where it is stationary, or

(b)move it from that place to another place on the same or another public road and fix an immobilisation device to it in that other place.

(3)The regulations may provide that on any occasion when an immobilisation device is fixed to a vehicle in accordance with the regulations the person fixing the device shall also fix to the vehicle a notice—

(a)indicating that the device has been fixed to the vehicle and warning that no attempt should be made to drive it or otherwise put it in motion until it has been released from the device;

(b)specifying the steps to be taken to secure its release;

(c)giving such other information as may be prescribed.

(4)The regulations may provide that—

(a)a vehicle to which an immobilisation device has been fixed in accordance with the regulations may only be released from the device by or under the direction of an authorised person;

(b)subject to that, such a vehicle shall be released from the device if the first and second requirements specified below are met.

(5)The first requirement is that such charge in respect of the release as may be prescribed is paid in any manner specified in the immobilisation notice.

(6)The second requirement is that—

(a)a vehicle licence is produced in accordance with instructions specified in the immobilisation notice, and the licence is one which is in force for the vehicle concerned at the time the licence is produced, or

(b)where such a licence is not produced, such sum as may be prescribed is paid in any manner specified in the immobilisation notice.

(7)The regulations may provide that they shall not apply in relation to a vehicle if—

(a)a current disabled person’s badge is displayed on the vehicle, or

(b)such other conditions as may be prescribed are fulfilled;

and “disabled person’s badge” here means a badge issued, or having effect as if issued, under any regulations for the time being in force under section 21 of the Chronically Sick and Disabled Persons Act 1970 or any regulations for the M18time being in force under section 14 of the M19Chronically Sick and Disabled Persons (Northern Ireland) Act 1978.

(8)The regulations may provide that an immobilisation notice shall not be removed or interfered with except by or on the authority of a person falling within a prescribed description.

Offences connected with immobilisationU.K.

2(1)The regulations may provide that a person contravening provision made under paragraph 1(8) is guilty of an offence and liable on summary conviction to a fine not exceeding level 2 on the standard scale.

(2)The regulations may provide that a person who, without being authorised to do so in accordance with provision made under paragraph 1, removes or attempts to remove an immobilisation device fixed to a vehicle in accordance with the regulations is guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(3)The regulations may provide that where they would apply in relation to a vehicle but for provision made under paragraph 1(7)(a) and the vehicle was not, at the time it was stationary, being used—

(a)in accordance with regulations under section 21 of the M20Chronically Sick and Disabled Persons Act 1970 or regulations under section 14 of the M21Chronically Sick and Disabled Persons (Northern Ireland) Act 1978, and

(b)in circumstances falling within section 117(1)(b) of the M22Road Traffic Regulation Act 1984 or Article 174A(2)(b) of the M23Road Traffic (Northern Ireland) Order 1981 (use where a disabled person’s concession would be available),

the person in charge of the vehicle at that time is guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(4)The regulations may provide that where—

(a)a person makes a declaration with a view to securing the release of a vehicle from an immobilisation device purported to have been fixed in accordance with the regulations,

(b)the declaration is that the vehicle is or was an exempt vehicle, and

(c)the declaration is to the person’s knowledge either false or in any material respect misleading,

he is guilty of an offence.

(5)The regulations may provide that a person guilty of an offence by virtue of provision made under sub-paragraph (4) is liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum, and

(b)on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or (except in Scotland) to both.

Removal and disposal of vehiclesU.K.

3(1)The regulations may make provision as regards a case where—

(a)an immobilisation device is fixed to a vehicle in accordance with the regulations, and

(b)such conditions as may be prescribed are fulfilled.

(2)The regulations may provide that an authorised person, or a person acting under the direction of an authorised person, may remove the vehicle and deliver it into the custody of a person—

(a)who is identified in accordance with prescribed rules, and

(b)who agrees to accept delivery in accordance with arrangements agreed between that person and the Secretary of State;

and the arrangements may include provision as to the payment of a sum to the person into whose custody the vehicle is delivered.

(3)The regulations may provide that the person into whose custody the vehicle is delivered may dispose of it, and in particular provision may be made as to—

(a)the time at which the vehicle may be disposed of;

(b)the manner in which it may be disposed of.

(4)The regulations may make provision allowing a person to take possession of the vehicle if—

(a)he claims it before it is disposed of, and

(b)any prescribed conditions are fulfilled.

(5)The regulations may provide for a sum of an amount arrived at under prescribed rules to be paid to a person if—

(a)he claims after the vehicle’s disposal to be or to have been its owner,

(b)the claim is made within a prescribed time of the disposal, and

(c)any other prescribed conditions are fulfilled.

(6)The regulations may provide that—

(a)the Secretary of State, or

(b)a person into whose custody the vehicle is delivered under the regulations,

may recover from the vehicle’s owner (whether or not a claim is made under provision made under sub-paragraph (4) or (5)) such charges as may be prescribed in respect of all or any of the following, namely, its release, removal, custody and disposal; and “owner” here means the person who was the owner when the immobilisation device was fixed.

(7)The conditions prescribed under sub-paragraph (4) may include conditions as to—

(a)satisfying the person with custody that the claimant is the vehicle’s owner;

(b)the payment of prescribed charges in respect of the vehicle’s release, removal and custody;

(c)the production of a vehicle licence;

(d)payment of a prescribed sum where a vehicle licence is not produced.

(8)Without prejudice to anything in the preceding provisions of this paragraph, the regulations may include provision for purposes corresponding to those of sections 101 and 102 of the M24Road Traffic Regulation Act 1984 (disposal and charges) subject to such additions, omissions or other modifications as the Secretary of State thinks fit.

Offences as to securing possession of vehiclesU.K.

4(1)The regulations may provide that where—

(a)a person makes a declaration with a view to securing possession of a vehicle purported to have been delivered into the custody of a person in accordance with provision made under paragraph 3,

(b)the declaration is that the vehicle is or was an exempt vehicle, and

(c)the declaration is to the person’s knowledge either false or in any material respect misleading,

he is guilty of an offence.

(2)The regulations may provide that a person guilty of such an offence is liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum, and

(b)on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or (except in Scotland) to both.

Payment of sum where licence not producedU.K.

5(1)The regulations may make provision as regards a case where a person pays a prescribed sum in pursuance of provision made under—

(a)paragraph 1(6)(b), or

(b)paragraph 3(7)(d).

(2)The regulations may—

(a)provide for a voucher to be issued in respect of the sum;

(b)provide for setting the sum against the amount of any vehicle excise duty payable in respect of the vehicle concerned;

(c)provide for the refund of any sum;

(d)provide that where a voucher has been issued section 29(1) and any other prescribed provision of this Act shall not apply, as regards the vehicle concerned, in relation to events occurring in a prescribed period.

(3)The regulations may make provision—

(a)as to the information to be provided before a voucher is issued;

(b)as to the contents of vouchers;

(c)specifying conditions subject to which any provision under sub-paragraph (2)(b) to (d) is to have effect.

(4)The regulations may make provision as to any case where a voucher is issued on receipt of a cheque which is subsequently dishonoured, and in particular the regulations may—

(a)provide for a voucher to be void;

(b)provide that, where the sum concerned is set against the amount of any vehicle excise duty, the licence concerned shall be void;

(c)make provision under which a person is required to deliver up a void voucher or void licence.

Offences relating to vouchersU.K.

6(1)The regulations may provide that—

(a)a person is guilty of an offence if within such reasonable period as is found in accordance with prescribed rules he fails to deliver up a voucher that is void by virtue of provision made under paragraph 5(4);

(b)a person guilty of such an offence shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(2)The regulations may provide that a person is guilty of an offence if within such reasonable period as is found in accordance with prescribed rules he fails to deliver up a licence that is void by virtue of provision made under paragraph 5(4), and that a person guilty of such an offence shall be liable on summary conviction to a penalty of whichever is the greater of—

(a)level 3 on the standard scale;

(b)an amount equal to five times the annual rate of duty that was payable on the grant of the licence or would have been so payable if it had been taken out for a period of twelve months.

(3)The regulations may provide that where a person is convicted of an offence under provision made by virtue of sub-paragraph (2) he must pay, in addition to any penalty, an amount found in accordance with prescribed rules.

(4)The regulations may provide that if—

(a)a voucher is void by virtue of provision made under paragraph 5(4),

(b)a person seeks to set the sum concerned against the amount of any vehicle excise duty, and

(c)he knows the voucher is void,

he is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(5)The regulations may provide that a person who in connection with—

(a)obtaining a voucher for which provision is made under paragraph 5, or

(b)obtaining a refund of any sum in respect of which such a voucher is issued,

makes a declaration which to his knowledge is either false or in any material respect misleading is guilty of an offence.

(6)The regulations may provide that a person is guilty of an offence if he forges, fraudulently alters, fraudulently uses, fraudulently lends or fraudulently allows to be used by another person a voucher for which provision is made under paragraph 5.

(7)The regulations may provide that a person guilty of an offence under provision made under sub-paragraph (5) or (6) is liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum, and

(b)on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or (except in Scotland) to both.

Vouchers: generalU.K.

7Without prejudice to anything in paragraphs 5(4) and 6 the regulations may include provision for purposes corresponding to those of sections 19A and 36 subject to such additions, omissions or other modifications as the Secretary of State thinks fit.

DisputesU.K.

8The regulations may make provision about the proceedings to be followed where a dispute occurs as a result of the regulations, and in particular provision may be made—

(a)for an application to be made to a magistrates’ court or (in Northern Ireland) a court of summary jurisdiction;

(b)for a court to order a sum to be paid by the Secretary of State.

Authorised personsU.K.

9As regards anything falling to be done under the regulations (such as receiving payment of a charge or other sum or issuing a voucher) the regulations may provide that it may be done—

(a)by an authorised person, or

(b)by an authorised person or a person acting under his direction.

Application of provisionsU.K.

10(1)The regulations may provide that they shall only apply where the authorised person has reason to believe that the offence mentioned in paragraph 1(1) is being committed before such date as may be prescribed.

(2)The regulations may provide that they shall only apply where the vehicle mentioned in paragraph 1(1) is in a prescribed area.

(3)Different dates may be prescribed under paragraph 1(1) or sub-paragraph (1) above in relation to different areas prescribed under sub-paragraph (2) above.

InterpretationU.K.

11(1)The regulations may make provision as to the meaning for the purposes of the regulations of “owner” as regards a vehicle.

(2)In particular, the regulations may provide that for the purposes of the regulations—

(a)the owner of a vehicle at a particular time shall be taken to be the person by whom it is then kept;

(b)the person by whom a vehicle is kept at a particular time shall be taken to be the person in whose name it is then registered by virtue of this Act.

12(1)The regulations may make provision as to the meaning in the regulations of “authorised person”.

(2)In particular, the regulations may provide that—

(a)references to an authorised person are to a person authorised by the Secretary of State for the purposes of the regulations;

(b)an authorised person may be a local authority or an employee of a local authority or a member of a police force or some other person;

(c)different persons may be authorised for the purposes of different provisions of the regulations.

13In this Schedule—

(a)references to an immobilisation device are to a device or appliance which is an immobilisation device for the purposes of section 104 of the M25Road Traffic Regulation Act 1984 (immobilisation of vehicles illegally parked);

(b)references to an immobilisation notice are to a notice fixed to a vehicle in accordance with the regulations;

(c)“prescribed” means prescribed by regulations made under this Schedule.”

37(1)In section 37(2) of the 1994 Act (penalty where duty at higher rate is not paid) the following shall be omitted—U.K.

(a)the words “(or, in Scotland, on indictment or on summary conviction)”, and

(b)the words “(or, in Scotland, the statutory maximum)”.

(2)In section 41(1)(b) of the 1994 Act (order in Scotland in case of offence under section 37) the words “182 or” and “183 or” shall be omitted.

(3)This paragraph shall apply in relation to proceedings begun after the day on which this Act is passed.

Part VIIIU.K. Proceedings

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Part IXU.K. Transitionals

Higher rate not to applyU.K.

39(1)This paragraph applies where a vehicle licence is taken out—U.K.

(a)before 1st July 1995, and

(b)at the rate applicable (at the time it is taken out) under Schedule 1 to the 1994 Act or any provision re-enacted in that Schedule.

(2)While the licence is in force duty shall not, by virtue of any provision contained in Part III or IV of this Schedule other than paragraph 16(2) above, become chargeable under section 15 of the 1994 Act (vehicle used in manner attracting higher rate).

RegulationsU.K.

40(1)This paragraph applies where regulations to determine the seating capacity of a hackney carriage are made, or have effect as if made, under sub-paragraph (2) of paragraph 3 of Schedule 1 to the 1994 Act (as that paragraph has effect apart from the substitution made by paragraph 8 above).U.K.

(2)The regulations shall have effect as if made under sub-paragraph (5) of paragraph 3 of that Schedule (as substituted by paragraph 8 above) to determine the seating capacity of a vehicle.

(3)This paragraph shall apply in relation to licences taken out on or after 1st July 1995.

Part XU.K. Special Reliefs

Relief where exemption abolishedU.K.

41(1)This paragraph applies where—U.K.

(a)a vehicle licence is taken out for a vehicle on or after 1st July 1995 and before 1st July 1996,

(b)the licence is the first vehicle licence to be taken out for the vehicle on or after 1st July 1995,

(c)the vehicle would be an exempt vehicle apart from paragraph 2 above, and

(d)the amount of vehicle excise duty to be paid on the licence would (apart from this paragraph) exceed £1,000.

(2)In such a case the amount of vehicle excise duty to be paid on the licence shall be £1,000.

(3)This paragraph shall be construed in accordance with the 1994 Act.

Relief where vehicle changes categoryU.K.

42(1)This paragraph applies where paragraph 41 above does not apply and—U.K.

(a)a vehicle licence is taken out for a vehicle on or after 1st July 1995 and before 1st July 1996,

(b)the licence is the first vehicle licence to be taken out for the vehicle on or after 1st July 1995,

(c)apart from Part III of this Schedule, the annual rate of vehicle excise duty applicable to the vehicle would be found under any of the provisions falling within sub-paragraph (3) below, and

(d)the new amount of duty exceeds the old amount of duty by more than £1,000.

(2)In such a case the amount of vehicle excise duty to be paid on the licence shall be an amount equal to £1,000 plus the old amount of duty.

(3)The provisions falling within this sub-paragraph are—

(a)paragraph 8(1) and (2)(b) of Schedule 1 to the 1994 Act;

(b)paragraph 8(1) and (2)(c) of that Schedule;

(c)paragraph 8(1) and (2)(d) of that Schedule;

(d)paragraph 12(2) of that Schedule;

(e)paragraph 12(3) to (5) of that Schedule.

(4)For the purposes of this paragraph—

(a)the new amount of duty is the amount of vehicle excise duty payable on the licence apart from this paragraph;

(b)the old amount of duty is the amount of vehicle excise duty that would be payable on the licence if Part III of this Schedule had not been enacted.

(5)This paragraph shall be construed in accordance with the 1994 Act.

Section 34.

SCHEDULE 5U.K. Insurance Premium Tax

1U.K.Part III of the M26Finance Act 1994 (insurance premium tax) shall be amended as provided by this Schedule.

2(1)Section 53 (registration of insurers) shall be amended as follows.U.K.

(2)In subsection (5) (Commissioners to cancel registration of person who ceases to receive premiums)—

(a)the word “ and ” shall be inserted after paragraph (a);

(b)paragraph (c) (person to satisfy Commissioners that no tax is unpaid) and the word “and” immediately preceding it shall be omitted.

(3)The following subsection shall be inserted after subsection (5)—

“(5A)In a case where—

(a)the Commissioners are satisfied that a person has ceased to receive, as insurer, premiums in the course of any taxable business, but

(b)he has not notified them under subsection (3) above,

they may cancel his registration with effect from the earliest practicable time after he so ceased.”

(4)Sub-paragraph (2) above shall apply in relation to notifications made under section 53(3) on or after the day on which this Act is passed.

3U.K.Section 53 shall be further amended by inserting the following subsection after subsection (1)—

“(1A)The register kept under this section may contain such information as the Commissioners think is required for the purposes of the care and management of the tax.”

4U.K.The following section shall be inserted after section 53—

“53A Information required to keep register up to date.

(1)Regulations may make provision requiring a registrable person to notify the Commissioners of particulars which—

(a)are of changes in circumstances relating to the registrable person or any business carried on by him,

(b)appear to the Commissioners to be required for the purpose of keeping the register kept under section 53 above up to date, and

(c)are of a prescribed description.

(2)Regulations may make provision—

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

(b)as to the form and manner in which a notification is to be made;

(c)requiring a person who has made a notification to notify the Commissioners if any information contained in it is inaccurate.”

5(1)Section 59 (review of Commissioners’ decisions) shall be amended as follows.U.K.

(2)In subsection (1)(d) (review of decision with respect to assessment) for the words “under section 56 above” there shall be substituted “ falling within subsection (1A) below ”.

(3)The following subsection shall be inserted after subsection (1)—

“(1A)An assessment falls within this subsection if it is an assessment under section 56 above in respect of an accounting period in relation to which a return required to be made by virtue of regulations under section 54 above has been made.”

(4)This paragraph shall apply in relation to assessments made on or after the day on which this Act is passed.

6U.K.In section 73(1) (interpretation) after the entry relating to “conduct” there shall be inserted—

““insurance business” means a business which consists of or includes the provision of insurance;”.

7(1)In Schedule 7 (information, powers, etc.) paragraphs 2(1) to (3) and 3(1) to (3) (duty to furnish information and produce documents) shall be amended as follows—U.K.

(a)for the words “a taxable business” (in each place where they occur) there shall be substituted “ an insurance business ”;

(b)for the words “taxable insurance contracts” (in each place where they occur) there shall be substituted “ contracts of insurance ”;

(c)for the words “taxable insurance contract” (in each place where they occur) there shall be substituted “ contract of insurance. ”.

(2)This paragraph shall apply in relation to contracts whether entered into before or after the passing of this Act.

8(1)In Schedule 7 the following shall be inserted after paragraph 4—U.K.

“ Order for access to recorded information etc.U.K.

4A(1)Where, on an application by an authorised person, a justice of the peace or, in Scotland, a justice (within the meaning of section 462 of the M27Criminal Procedure (Scotland) Act 1975) is satisfied that there are reasonable grounds for believing—

(a)that an offence in connection with tax is being, has been or is about to be committed, and

(b)that any recorded information (including any document of any nature whatsoever) which may be required as evidence for the purpose of any proceedings in respect of such an offence is in the possession of any person,

he may make an order under this paragraph.

(2)An order under this paragraph is an order that the person who appears to the justice to be in possession of the recorded information to which the application relates shall—

(a)give an authorised person access to it, and

(b)permit an authorised person to remove and take away any of it which he reasonably considers necessary,

not later than the end of the period of 7 days beginning on the date of the order or the end of such longer period as the order may specify.

(3)The reference in sub-paragraph (2)(a) above to giving an authorised person access to the recorded information to which the application relates includes a reference to permitting the authorised person to take copies of it or to make extracts from it.

(4)Where the recorded information consists of information contained in a computer, an order under this paragraph shall have effect as an order to produce the information in a form in which it is visible and legible and, if the authorised person wishes to remove it, in a form in which it can be removed.

(5)This paragraph is without prejudice to paragraphs 3 and 4 above.”

(2)In paragraph 5(1) of Schedule 7 (duty to provide record of anything removed in exercise of power) after the words “paragraph 4” there shall be inserted “ or 4A ”.

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Section 39.

SCHEDULE 6U.K. Amendments in connection with charge under Schedule A

The Taxes Act 1988U.K.

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2U.K.In section 18(3) of that Act (Cases under Schedule D), in Case I, at the end there shall be inserted “ but not contained in Schedule A ”.

3U.K.Sections 22 and 23 of that Act (assessments to income tax under Schedule A and collection from lessees and agents) shall cease to have effect.

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26U.K.In section 692(1) of that Act (reimbursement of settlor), for the words from “the profits” onwards there shall be substituted “ either the profits of a trade carried on by the settlor or the profits of a Schedule A business so carried on ”.

27U.K.In section 779(13)(a) of that Act (definition of relevant tax relief for the purposes of anti-avoidance provisions), the words “allowable by virtue of sections 25, 26 and 28 to 31 and Schedule 1” shall be omitted.

28U.K.In section 832(1) of that Act (interpretation of the Tax Acts), after the definition of “recognised clearing system” there shall be inserted the following definition—

““Schedule A business” means any business the profits or gains of which are chargeable to income tax under Schedule A, including the business in the course of which any transaction is by virtue of paragraph 1(2) of that Schedule to be treated as entered into;”.

The Capital Allowances Act 1990 (c. 1)U.K.

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The Taxation of Chargeable Gains Act 1992 (c. 12)U.K.

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The Finance (No. 2) Act 1992 (c. 48)U.K.

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F47SCHEDULE 7U.K.

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Section 51.

SCHEDULE 8U.K. Life assurance business

Part IU.K. General amendments

Classes of life assurance businessU.K.

1U.K.In section 431(2) of the Taxes Act 1988 (interpretative provisions relating to insurance companies), insert the following at the appropriate places in alphabetical order—

• “pension business” has the meaning given by section 431B;

• “life reinsurance business” has the meaning given by section 431C;

• “overseas life assurance business” has the meaning given by section 431D;

• “basic life assurance and general annuity business” has the meaning given by section 431F;

• F48...

2U.K.After section 431A of the Taxes Act 1988 insert—

“ Classes of life assurance businessU.K.

431B Meaning of “pension business”.

(1)In this Chapter “pension business” means so much of a company’s life assurance business as is referable to contracts of the following descriptions or to the reinsurance of liabilities under such contracts.

(2)The descriptions of contracts are—

(a)any contract with an individual who is, or would but for an insufficiency of profits or gains be, chargeable to income tax in respect of relevant earnings (as defined in section 623(1) and (2)) from a trade, profession, vocation, office or employment carried on or held by him, being a contract approved by the Board under section 620 or a substituted contract within the meaning of section 622(3);

(b)any contract (including a contract of insurance) entered into for the purposes of, and made with the persons having the management of, an exempt approved scheme as defined in Chapter I of Part XIV, being a contract so framed that the liabilities undertaken by the insurance company under the contract correspond with liabilities against which the contract is intended to secure the scheme;

(c)any contract made under approved personal pension arrangements within the meaning of Chapter IV of Part XIV;

(d)any annuity contract entered into for the purposes of—

(i)a scheme which is approved or is being considered for approval under Chapter I of Part XIV;

(ii)a scheme which is a relevant statutory scheme for the purposes of Chapter I of Part XIV; or

(iii)a fund to which section 608 applies,

being a contract which is made with the persons having the management of the scheme or fund, or those persons and a member of or contributor to the scheme or fund, and by means of which relevant benefits (see subsections (3) and (4) below), and no other benefits, are secured;

(e)any annuity contract which is entered into in substitution for a contract within paragraph (d) above and by means of which relevant benefits (see subsections (3) and (4) below), and no other benefits, are secured;

(f)any contract with the trustees or other persons having the management of a scheme approved under section 620 or, subject to subsection (5) below, of a superannuation fund which was approved under section 208 of the 1970 Act, being a contract which—

(i)was entered into for the purposes only of that scheme or fund or, in the case of a fund part only of which was approved under section 208, for the purposes only of that part of that fund, and

(ii)(in the case of a contract entered into or varied after 1st August 1956) is so framed that the liabilities undertaken by the insurance company under the contract correspond with liabilities against which the contract is intended to secure the scheme or fund (or the relevant part of the fund).

(3)For the purposes of subsection (2)(d) and (e) above “relevant benefits” means relevant benefits as defined by section 612(1) which correspond—

(a)where subsection (2)(d)(i) above applies, or subsection (2)(e) above applies and the contract within subsection (2)(d) was entered into for the purposes of a scheme falling within subsection (2)(d)(i), with benefits that could be provided by a scheme approved under Chapter I of Part XIV;

(b)where subsection (2)(d)(ii) above applies, or subsection (2)(e) above applies and the contract within subsection (2)(d) was entered into for the purposes of a scheme falling within subsection (2)(d)(ii), with benefits that could be provided by a scheme which is a relevant statutory scheme for the purposes of Chapter I of Part XIV;

(c)where subsection (2)(d)(iii) above applies, or subsection (2)(e) above applies and the contract within subsection (2)(d) was entered into for the purposes of a fund falling within subsection (2)(d)(iii), with benefits that could be provided by a fund to which section 608 applies.

(4)For the purposes of subsection (3)(a), (b) or (c) above a hypothetical scheme or fund (rather than any particular scheme or fund), and benefits provided by a scheme or fund directly (rather than by means of an annuity contract), shall be taken.

(5)Subsection (2)(f) above shall not apply to a contract where the fund in question was approved under section 208 of the 1970 Act unless—

(a)immediately before 6th April 1980 premiums paid under the contract with the trustees or other persons having the management of the fund fell within section 323(4) of that Act (premiums referable to pension business); and

(b)the terms on which benefits are payable from the fund have not been altered since that time; and

(c)section 608 applies to the fund.

(6)In subsection (5) above “premium” includes any consideration for an annuity.

431C Meaning of “life reinsurance business”.

(1)In this Chapter “life reinsurance business” means reinsurance of life assurance business other than pension business or business of any description excluded from this section by regulations made by the Board.

(2)Regulations under subsection (1) above may describe the excluded business by reference to any circumstances appearing to the Board to be relevant.

431D Meaning of “overseas life assurance business”.

(1)In this Chapter “overseas life assurance business” means life assurance business, other than pension business or life reinsurance business, which—

(a)in the case of life assurance business other than reinsurance business, is business with a policy holder or annuitant not residing in the United Kingdom, and

(b)in the case of reinsurance business, is—

(i)reinsurance of life assurance business with a policy holder or annuitant not residing in the United Kingdom, or

(ii)reinsurance of business within sub-paragraph (i) above or this sub-paragraph.

(2)Subject to subsections (5) and (7) below, in subsection (1) above the references to life assurance business with a policy holder or annuitant do not include life assurance business with a person who is an individual if—

(a)the policy holder or annuitant is not beneficially entitled to the rights conferred by the policy or contract for the business, or

(b)any benefits under the policy or contract for the business are or will be payable to a person other than the policy holder or annuitant (or his personal representatives) or to a number of persons not including him (or them).

(3)For the purposes of subsection (2) above any nomination by a policy holder or annuitant of an individual or individuals as the recipient or recipients of benefits payable on death shall be disregarded.

(4)Subject to subsections (5) and (7) below, in subsection (1) above the references to life assurance business with a policy holder or annuitant do not include life assurance business with a person who is not an individual.

(5)Subsections (2) and (4) above do not apply if—

(a)the rights conferred by the policy or contract for the business are held subject to a trust,

(b)the settlor does not reside in the United Kingdom, and

(c)each beneficiary is either an individual not residing in the United Kingdom or a charity.

(6)In subsection (5) above—

(a)“settlor” means the person, or (where more than one) each of the persons, by whom the trust was directly or indirectly created (and for this purpose a person shall, in particular, be regarded as having created the trust if he provided or undertook to provide funds directly or indirectly for the purposes of the trust or made with any other person a reciprocal arrangement for that other person to create the trust),

(b)“beneficiary” means any person who is, or will or may become, entitled to any benefit under the trust (including any person who may become so entitled on the exercise of a discretion by the trustees of the trust), and

(c)“charity” means a person or body of persons established for charitable purposes only;

and for the purpose of that subsection an individual who is a trustee (of any trust) shall not be regarded as an individual.

(7)Subsections (2) and (4) above do not apply if the policy or contract for the business was effected solely to provide benefits for or in respect of—

(a)persons all, or all but an insignificant number, of whom are relevant overseas employees, or

(b)spouses, widows, widowers, children or dependants of such persons.

(8)In subsection (7) above “relevant overseas employees” means persons who are not residing in the United Kingdom and are—

(a)employees of the policy holder or annuitant,

(b)employees of a person connected with the policy holder or annuitant, or

(c)employees in respect of whose employment there is established a superannuation fund to which section 615(3) applies;

and section 839 applies for the purposes of this subsection.

431E Overseas life assurance business: regulations.

(1)The Board may by regulations make provision for giving effect to section 431D.

(2)Such regulations may, in particular—

(a)provide that, in such circumstances as may be prescribed, any prescribed issue as to whether business is or is not overseas life assurance business (or overseas life assurance business of a particular kind) shall be determined by reference to such matters (including the giving of certificates or undertakings, the giving or possession of information or the making of declarations) as may be prescribed,

(b)require companies to obtain certificates, undertakings, information or declarations from policy holders or annuitants, or from trustees or other companies, for the purposes of the regulations,

(c)make provision for dealing with cases where any issue such as is mentioned in paragraph (a) above is (for any reason) wrongly determined, including provision allowing for the imposition of charges to tax (with or without limits on time) on the insurance company concerned or on the policy holders or annuitants concerned,

(d)require companies to supply information and make available books, documents and other records for inspection on behalf of the Board, and

(e)make provision (including provision imposing penalties) for contravention of, or non-compliance with, the regulations.

(3)The regulations may—

(a)make different provision for different cases, and

(b)contain such supplementary, incidental, consequential or transitional provision as appears to the Board to be appropriate.

431F Meaning of “basic life assurance and general annuity business”.

In this Chapter “basic life assurance and general annuity business” means life assurance business (including reinsurance business) other than pension business, life reinsurance business or overseas life assurance business.”.

F493U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4(1)Section 438 of the Taxes Act 1988 is amended as follows.U.K.

(2)In subsection (1) for “life assurance fund and separate annuity fund, if any” substitute “ long term business fund ”.

F50(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5(1)Section 440 of the Taxes Act 1988 is amended as follows.U.K.

F51(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)For subsection (4) substitute—

“(4)The categories referred to in subsections (1) to (3) above are—

(a)assets linked solely to pension business;

(b)assets linked solely to life reinsurance business;

(c)assets of the overseas life assurance fund;

(d)assets linked solely to basic life assurance and general annuity business;

(e)assets of the long term business fund not within any of the preceding paragraphs;

(f)other assets.”.

6U.K.In section 440A of the Taxes Act 1988, in subsection (2) for paragraphs (a) and (b) substitute—

“(a)so many of the securities as are identified in the company’s records as securities by reference to the value of which there are to be determined benefits provided for under policies or contracts the effecting of all (or all but an insignificant proportion) of which constitutes the carrying on of—

(i)pension business, or

(ii)life reinsurance business, or

(iii)basic life assurance and general annuity business,

shall be treated for the purposes of corporation tax as a separate holding linked solely to that business,”.

F527U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F538U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9(1)The M28Taxation of Chargeable Gains Act 1992 is amended as follows.U.K.

F54(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F55(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5610U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Linked assetsU.K.

11(1)In section 431(2) of the Taxes Act 1988, for the definition of “linked assets” substitute—U.K.

““linked assets”, and related expressions, shall be construed in accordance with section 432ZA;”.

(2)After section 432 of the Taxes Act 1988 insert—

“432ZA Linked assets.

(1)In this Chapter “linked assets” means assets of an insurance company which are identified in its records as assets by reference to the value of which benefits provided for under a policy or contract are to be determined.

(2)Linked assets shall be taken—

(a)to be linked to long term business of a particular category if the policies or contracts providing for the benefits concerned are policies or contracts the effecting of which constitutes the carrying on of business of that category; and

(b)to be linked solely to long term business of a particular category if all (or all but an insignificant proportion) of the policies or contracts providing for the benefits concerned are policies or contracts the effecting of which constitutes the carrying on of business of that category.

(3)Where an asset is linked to more than one category of long term business, a part of the asset shall be taken to be linked to each category; and references in this Chapter to assets linked (but not solely linked) to any category of business shall be construed accordingly.

(4)Where subsection (3) above applies, the part of the asset linked to any category of business shall be a proportion determined as follows—

(a)where in the records of the company values are shown for the asset in funds referable to particular categories of business, the proportion shall be determined by reference to those values;

(b)in any other case the proportion shall be equal to the proportion which the total of the linked liabilities of the company referable to that category of business bears to the total of the linked liabilities of the company referable to all the categories of business to which the asset is linked.

(5)For the purposes of sections 432A to 432F—

(a)income arising in any period from assets linked but not solely linked to a category of business,

(b)gains arising in any period from the disposal of such assets, and

(c)increases and decreases in the value of such assets,

shall be treated as arising to that category of business in the proportion which is the mean of the proportions determined under subsection (4) above at the beginning and end of the period.

(6)In this section “linked liabilities” means liabilities in respect of benefits to be determined by reference to the value of linked assets.

(7)In the case of a policy or contract the effecting of which constitutes a class of life assurance business the fact that it also constitutes long term business other than life assurance business shall be disregarded for the purposes of this section unless the benefits to be provided which constitute long term business other than life assurance business are to be determined by reference to the value of assets.”.

12(1)In the following provisions for “linked solely” substitute “ linked ”U.K.

(a)F57... section 432E(3)(a) and (b) F57... of the Taxes Act 1988;

F58(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F59(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)The amendments made by paragraph 11 above do not affect the meaning of “linked assets”, and related expressions, in sections 214 and 214A of the M29Taxation of Chargeable Gains Act 1992 (transitional provisions relating to changes made in 1990 and 1991).

F60(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13(1)Section 432A of the Taxes Act 1988 is amended as follows.U.K.

(2)For subsections (1) to (3) substitute—

“(1)This section has effect where in any period an insurance company carries on more than one category of business and it is necessary for the purposes of the Corporation Tax Acts to determine in relation to the period what parts of—

(a)income arising from the assets of the company’s long term business fund, or

(b)gains or losses accruing on the disposal of such assets,

are referable to any category of business.

(2)The categories of business referred to in subsection (1) above are—

(a)pension business;

(b)life reinsurance business;

(c)overseas life assurance business;

(d)basic life assurance and general annuity business which is ordinary life assurance business;

(e)basic life assurance and general annuity business which is industrial assurance business; and

(f)long term business other than life assurance business.

(3)Income arising from, and gains or losses accruing on the disposal of, assets linked to any category of business (apart from overseas life assurance business) shall be referable to that category of business.”.

(3)In subsections (5) and (6)(b)(i) for “any of the appropriate categories” substitute “ any category ”.

(4)For subsection (7) substitute—

“(7)For the purposes of subsections (5) and (6) above—

(a)income, gains or losses are directly referable to a category of business if referable to that category by virtue of subsection (3) or (4) above, and

(b)assets are directly referable to a category of business if income arising from the assets is, and gains or losses accruing on the disposal of the assets are, so referable by virtue of subsection (3) above.”.

F61(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6214U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6315U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Receipts to be brought into accountU.K.

16(1)For section 83 of the M30Finance Act 1989 substitute—U.K.

“83 Receipts to be brought into account.

(1)The following provisions of this section have effect where the profits of an insurance company in respect of its life assurance business are, for the purposes of the Taxes Act 1988, computed in accordance with the provisions of that Act applicable to Case I of Schedule D.

(2)So far as referable to that business, the following items, as brought into account for a period of account (and not otherwise), shall be taken into account as receipts of the period—

(a)the company’s investment income from the assets of its long term business fund, and

(b)any increase in value (whether realised or not) of those assets.

(3)In ascertaining whether or to what extent a company has incurred a loss in respect of that business any amount transferred into the company’s long term business fund from other assets of the company, or otherwise added to that fund, shall be taken into account, in the period in which it is brought into account, as an increase in value of the assets of that fund within subsection (2)(b) above.

83A Meaning of “brought into account”.

(1)In section 83 “brought into account” means brought into account in an account which is recognised for the purposes of that section.

(2)Subject to the following provisions of this section and to any regulations made by the Treasury, the accounts recognised for the purposes of that section are—

(a)a revenue account prepared for the purposes of the Insurance Companies Act 1982 in respect of the whole of the company’s long term business;

(b)any separate revenue account required to be prepared under that Act in respect of a part of that business.

(3)Where there are prepared any such separate accounts as are mentioned in subsection (2)(b) above, reference shall be made to those accounts rather than to the account for the whole of the business.

(4)If in any such case the total of the items brought into account in the separate accounts is not equal to the total amount brought into account in the account prepared for the whole business, there shall be treated as having been required and prepared a further separate revenue account covering the balance.

(5)Where a company carries on both ordinary long term business and industrial assurance business, the references above to the company’s long term business shall be construed as references to either or both of those businesses, as the case may require.”.

(2)In section 432B of the Taxes Act 1988—

(a)in subsection (1) for the words from “brought into account” to “1982” substitute “ brought into account, within the meaning of that section, ”; and

(b)for subsection (2) substitute—

“(2)Where for that purpose reference falls to be made to more than one account recognised for the purposes of that section, the provisions of sections 432C to 432F apply separately in relation to each account.”.

F64(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F65(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F65(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F66(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplementary provisions as to apportionmentU.K.

17(1)In section 432B of the Taxes Act 1988 (apportionment of receipts brought into account)—U.K.

(a)in subsections (1) and (2) for “sections 432C to 432E” substitute “ sections 432C to 432F ”, and

(b)in subsection (3) for “section 432E applies” substitute “ sections 432E and 432F apply ”.

F67(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)After section 432E of the Taxes Act 1988 insert—

“432F Section 432B apportionment: supplementary provisions.

(1)The provisions of this section provide for the reduction of the amount determined in accordance with section 432E(3) (“the subsection (3) figure”) for an accounting period in which that amount exceeds, or would otherwise exceed, the amount determined in accordance with section 432E(2) (“the subsection (2) figure”).

(2)For each category of business in relation to which section 432E falls to be applied there shall be determined for each accounting period the amount (if any) by which the subsection (2) figure, after making any reduction required by section 432E(5), exceeds the subsection (3) figure (“the subsection (2) excess”).

(3)Where there is a subsection (2) excess, the amount shall be carried forward and if in any subsequent accounting period the subsection (3) figure exceeds, or would otherwise exceed, the subsection (2) figure, it shall be reduced by the amount or cumulative amount of subsection (2) excesses so far as not previously used under this subsection.

(4)Where in an accounting period that amount is greater than is required to bring the subsection (3) figure down to the subsection (2) figure, the balance shall be carried forward and aggregated with any subsequent subsection (2) excess for use in subsequent accounting periods.”.

(4)In section 444A of the Taxes Act 1988 (transfers of business) after subsection (3) insert—

“(3A)Any subsection (2) excess (within the meaning of section 432F(2)) which (assuming the transferor had continued to carry on the business transferred after the transfer) would have been available under section 432F(3) or (4) to reduce a subsection (3) figure (within the meaning of section 432F(1)) of the transferor in an accounting period following that which ends with the day on which transfer takes place—

(a)shall, instead, be treated as a subsection (2) excess of the transferee, and

(b)shall be taken into account in the first accounting period of the transferee ending after the date of the transfer (to reduce the subsection (3) figure or, as the case may be, to produce or increase a subsection (2) excess for that period),

in relation to the revenue account of the transferee dealing with or including the business transferred.”.

(5)In section 444A(5) of the Taxes Act 1988 for “subsection (2) or (3)” substitute “ subsection (2), (3) or (3A) ”.

Franked investment income: supplementary provisionsU.K.

F6818U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19(1)Section 434 of the Taxes Act 1988 is amended as follows.U.K.