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

F1138U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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;”.

F127U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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 ”.

F139U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 39.

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

The Taxes Act 1988U.K.

F141U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F152U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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.

F164U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F175U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F186U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F197U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F208U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F219U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2210U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2311U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2412U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2513U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2614U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2715U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2816U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F29F3017U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3118U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3219U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3320U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3421U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3522U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3623U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3724U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3825U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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 ”.

F3927U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4028U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

F4129U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4230U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4331U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4432U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4533U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4634U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4735U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

F4836U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4937U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

F5038U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F51SCHEDULE 7U.K.

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

Section 51.

F52SCHEDULE 8U.K. Life assurance business

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

Section 53.

SCHEDULE 9U.K. Transfer of Life Insurance Business

Consequential amendment of references to sanctioned transfersU.K.

F531U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Modification of the Taxes Act 1988 in relation to overseas life insurance companiesU.K.

F542U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Modification of the Capital Allowances Act 1990U.K.

F553U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Modification of the Taxation of Chargeable Gains Act 1992U.K.

4U.K.In subsection (5) of section 213 of the M28Taxation of Chargeable Gains Act 1992 (spreading of gains and losses under section 212 where there is a transfer of long term business), at the beginning there shall be inserted “Subject to subsections (5A) to (7) below”; and after that subsection there shall be inserted the following subsection—

“(5A)Subsection (5) above shall not apply where the transferee is resident outside the United Kingdom unless the business to which the transfer relates is carried on by the transferee, for a period beginning with the time when the transfer takes effect, through a branch or agency in the United Kingdom.”

F565U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F576U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 54.

SCHEDULE 10U.K. Friendly Societies

Tax exempt life or endowment businessU.K.

F581U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Maximum benefits payable to membersU.K.

F582U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualifying policiesU.K.

3U.K.In paragraph 3 of Schedule 15 to that Act (friendly society policies that are qualifying policies), sub-paragraph (2)(c) (condition limiting consideration for early surrender) shall cease to have effect.

4(1)This paragraph applies to any policy which—U.K.

(a)was issued by a friendly society, or a branch of a friendly society, in the course of tax exempt life or endowment business (as defined in section 466 of the Taxes Act 1988); and

(b)was effected by a contract made after 31st August 1987 and before the day on which this Act is passed.

(2)Where—

(a)the amount payable by way of premium under a policy to which this paragraph applies is increased by virtue of a variation made in the period beginning with the day on which this Act is passed and ending with 31st March 1996, and

(b)the variation is not such as to cause a person to become in breach of the limits in section 464 of the Taxes Act 1988,

Schedule 15 to that Act, in its application to the policy, shall have effect, in relation to that variation, with the omission of paragraph 4(3)(a) and the insertion at the end of paragraph 18(2) of the words set out in sub-paragraph (3) below.

(3)Those words are as follows, that is to say, “ and as if for paragraph 3(2)(b) above there were substituted— ”

“(b)subject to sub-paragraph (4) below, the premiums payable under the policy shall be premiums of equal or rateable amounts payable at yearly or shorter intervals—

(i)over the whole of the term of the policy as from the variation, or

(ii)where premiums are not payable for any period after the person liable to pay them or whose life is insured has attained a specified age, being an age attained at a time not less than ten years after the beginning of the term of the policy, over the whole of the remainder of the period for which premiums are payable.””

Section 58.

F59SCHEDULE 11U.K. Personal pensions: income withdrawals

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Section 65.

F60SCHEDULE 12U.K. Contractual Savings Schemes

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Section 67.

SCHEDULE 13U.K. Enterprise Investment Scheme

IntroductionU.K.

1U.K.The M29Taxation of Chargeable Gains Act 1992 shall be amended as mentioned in this Schedule.

Amendments of section 150AU.K.

2(1)Section 150A (enterprise investment scheme) shall be amended as mentioned in sub-paragraphs (2) to (4) below; and the amendments made by sub-paragraphs (2) and (3) below shall apply in relation to shares issued on or after 1st January 1994.U.K.

(2)The following subsection shall be inserted after subsection (2)—

“(2A)Notwithstanding anything in section 16(2), subsection (2) above shall not apply to a disposal on which a loss accrues.”

(3)In subsection (3) (reduction of relief) the following paragraph shall be inserted after paragraph (a)—

“(aa)the amount of the reduction is not found under section 289A(2)(b) of that Act, and”.

(4)The following subsections shall be inserted after subsection (8) (which disapplies provisions about exchanges, reconstructions or amalgamations in certain circumstances)—

“(8A)Subsection (8) above shall not have effect to disapply section 135 or 136 where—

(a)the new holding consists of new ordinary shares carrying no present or future preferential right to dividends or to a company’s assets on its winding up and no present or future preferential right to be redeemed,

(b)the new shares are issued on or after 29th November 1994 and after the end of the relevant period, and

(c)the condition in subsection (8B) below is satisfied.

(8B)The condition is that at some time before the issue of the new shares—

(a)the company issuing them issued eligible shares, and

(b)a certificate in relation to those eligible shares was issued by the company for the purposes of subsection (2) of section 306 of the Taxes Act and in accordance with that section.

(8C)In subsection (8A) above—

(a)“new holding” shall be construed in accordance with sections 126, 127, 135 and 136;

(b)“relevant period” means the period found by applying section 312(1A)(a) of the Taxes Act by reference to the company issuing the shares referred to in subsection (8) above and by reference to those shares.”

Reduction of reliefU.K.

3U.K.The following section shall be inserted after section 150A—

“150B Enterprise investment scheme: reduction of relief.

(1)This section has effect where section 150A(2) applies on a disposal of eligible shares, and before the disposal but on or after 29th November 1994—

(a)value is received in circumstances where relief attributable to the shares is reduced by an amount under section 300(1A)(a) of the Taxes Act,

(b)there is a repayment, redemption, repurchase or payment in circumstances where relief attributable to the shares is reduced by an amount under section 303(1A)(a) of that Act, or

(c)paragraphs (a) and (b) above apply.

(2)If section 150A(2) applies on the disposal but section 150A(3) does not, section 150A(2) shall apply only to so much of the gain as remains after deducting so much of it as is found by multiplying it by the fraction—

(a)whose numerator is equal to the amount by which the relief attributable to the shares is reduced as mentioned in subsection (1) above, and

(b)whose denominator is equal to the amount of the relief attributable to the shares.

(3)If section 150A(2) and (3) apply on the disposal, section 150A(2) shall apply only to so much of the gain as is found by—

(a)taking the part of the gain found under section 150A(3), and

(b)deducting from that part so much of it as is found by multiplying it by the fraction mentioned in subsection (2) above.

(4)Where the relief attributable to the shares is reduced as mentioned in subsection (1) above by more than one amount, the numerator mentioned in subsection (2) above shall be taken to be equal to the aggregate of the amounts.

(5)The denominator mentioned in subsection (2) above shall be found without regard to any reduction mentioned in subsection (1) above.

(6)Subsections (11) and (12) of section 150A apply for the purposes of this section as they apply for the purposes of that section.”

Re-investmentU.K.

4(1)The following section shall be inserted after section 150B—U.K.

“150C Enterprise investment scheme: re-investment.

Schedule 5B to this Act (which provides relief in respect of re-investment under the enterprise investment scheme) shall have effect.”

F61(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)The following Schedule shall be inserted after Schedule 5A—

“SCHEDULE 5BU.K. Enterprise Investment Scheme: Re-investment

Application of ScheduleU.K.

1(1)This Schedule applies where—

(a)there would (apart from paragraph 2(2)(a) below) be a chargeable gain (“the original gain”) accruing to an individual (“the investor”) at any time (“the accrual time”) on or after 29th November 1994;

(b)the gain is one accruing either on the disposal by the investor of any asset or in accordance with paragraphs 4 and 5 below or paragraphs 4 and 5 of Schedule 5C;

(c)the investor makes a qualifying investment; and

(d)the investor is resident or ordinarily resident in the United Kingdom at the accrual time and the time when he makes the qualifying investment and is not, in relation to the qualifying investment, a person to whom sub-paragraph (4) below applies.

(2)The investor makes a qualifying investment for the purposes of this Schedule if—

(a)he subscribes for any shares to which any relief given to him under Chapter III of Part VII of the Taxes Act is attributable;

(b)those shares are issued at a qualifying time; and

(c)where that time is before the accrual time, those shares are still held by the investor at the accrual time;

and in this Schedule “relevant shares”, in relation to a case to which this Schedule applies, means any of the shares which are acquired by the investor in making the qualifying investment.

(3)In this Schedule “a qualifying time”, in relation to any shares subscribed for by the investor, means—

(a)any time in the period beginning one year before and ending three years after the accrual time, or

(b)any such time before the beginning of that period or after it ends as the Board may by notice allow.

(4)This sub-paragraph applies to the investor in relation to a qualifying investment if—

(a)though resident or ordinarily resident in the United Kingdom at the time when he makes the investment, he is regarded for the purposes of any double taxation relief arrangements as resident in a territory outside the United Kingdom, and

(b)were section 150A to be disregarded, the arrangements would have the effect that he would not be liable in the United Kingdom to tax on a gain arising on a disposal, immediately after their acquisition, of the shares acquired in making that investment.

Postponement of original gainU.K.

2(1)On the making of a claim by the investor for the purposes of this Schedule, so much of the investor’s unused qualifying expenditure on relevant shares as—

(a)is specified in the claim, and

(b)does not exceed so much of the original gain as is unmatched,

shall be set against a corresponding amount of the original gain.

(2)Where an amount of qualifying expenditure on any relevant shares is set under this Schedule against the whole or part of the original gain—

(a)so much of that gain as is equal to that amount shall be treated as not having accrued at the accrual time; but

(b)paragraphs 4 and 5 below shall apply for determining the gain that is to be treated as accruing on the occurrence of any chargeable event in relation to any of those relevant shares.

(3)For the purposes of this Schedule—

(a)the investor’s qualifying expenditure on any relevant shares is so much of the amount subscribed by him for the shares as represents the amount in respect of which there is given the relief under section 289A of the Taxes Act which is attributable to those shares; and

(b)that expenditure is unused to the extent that it has not already been set under this Schedule against the whole or any part of a chargeable gain.

(4)For the purposes of this paragraph the original gain is unmatched, in relation to any qualifying expenditure on relevant shares, to the extent that it has not had any other expenditure set against it under this Schedule or Schedule 5C.

Chargeable eventsU.K.

3(1)Subject to the following provisions of this paragraph, there is for the purposes of this Schedule a chargeable event in relation to any relevant shares if, after the making of the qualifying investment—

(a)the investor disposes of those shares otherwise than by way of a disposal within marriage;

(b)those shares are disposed of, otherwise than by way of a disposal to the investor, by a person who acquired them on a disposal made by the investor within marriage;

(c)the investor becomes a non-resident while holding those shares and within the first relevant period;

(d)a person who acquired those shares on a disposal within marriage becomes a non-resident while holding those shares and within the first relevant period;

(e)the company that issued those shares ceases to be a qualifying company within the second relevant period; or

(f)the relief given under section 289A of the Taxes Act in respect of the amount subscribed for those shares is withdrawn or reduced in circumstances not falling within any of paragraphs (a) to (e) above.

(2)For the purposes of sub-paragraph (1) above—

(a)the first relevant period in the case of any relevant shares is the period found by applying section 312(1A)(a) of the Taxes Act by reference to the company that issued the shares and by reference to the shares;

(b)the second relevant period in the case of any shares is the period found by applying section 312(1A)(b) of that Act by reference to the company that issued the shares and by reference to the shares; and

(c)whether a company is a qualifying company at any given time shall be determined in accordance with section 293 of that Act.

(3)For the purposes of this Schedule there shall not be a chargeable event by virtue of sub-paragraph (1)(c) or (d) above in relation to any shares if—

(a)the reason why the person in question becomes a non-resident is that he works in an employment or office all the duties of which are performed outside the United Kingdom, and

(b)he again becomes resident or ordinarily resident in the United Kingdom within the period of three years from the time when he became a non-resident, without having meanwhile disposed of any of those shares;

and accordingly no assessment shall be made by virtue of sub-paragraph (1)(c) or (d) above before the end of that period in a case where the condition in paragraph (a) above is satisfied and the condition in paragraph (b) above may be satisfied.

(4)For the purposes of sub-paragraph (3) above a person shall be taken to have disposed of any shares if and only if there has been such a disposal as would have been a chargeable event in relation to those shares if the person making the disposal had been resident in the United Kingdom.

(5)Where in any case—

(a)the investor or a person who has acquired any relevant shares on a disposal within marriage dies, and

(b)an event occurs at or after the time of the death which (apart from this sub-paragraph) would be a chargeable event in relation to any relevant shares held by the deceased immediately before his death,

that event shall not be a chargeable event in relation to the shares so held.

Gain accruing on chargeable eventU.K.

4(1)On the occurrence of a chargeable event in relation to any relevant shares in relation to which there has not been a previous chargeable event—

(a)a chargeable gain shall be treated as accruing at the time of the event; and

(b)the amount of the gain shall be equal to so much of the original gain as is an amount against which there has under this Schedule been set any expenditure on those shares.

(2)Any question for the purposes of this Schedule as to whether any relevant shares to which a chargeable event relates are shares the expenditure on which has under this Schedule been set against the whole or any part of any gain shall be determined in accordance with the assumptions for which sub-paragraph (3) below provides.

(3)For the purposes of sub-paragraph (2) above it shall be assumed, in relation to any disposal of shares (including a disposal within marriage) that—

(a)as between qualifying shares acquired by the same person on different days, those acquired on an earlier day are disposed of by that person before those acquired on a later day; and

(b)as between qualifying shares acquired by the same person on the same day, those the expenditure on which has been set under this Schedule against the whole or any part of any gain are disposed of by that person only after he has disposed of any other qualifying shares acquired by him on that day.

(4)In sub-paragraph (3) above “qualifying shares” means any shares which—

(a)were subscribed for by a person eligible for relief in respect of those shares under Chapter III of Part VII of the Taxes Act (the enterprise investment scheme), and

(b)are shares in respect of which relief is given under section 289A of that Act in respect of the whole or any part of the amount subscribed.

(5)Where at the time of a chargeable event any relevant shares are treated for the purposes of this Act as represented by assets which consist of or include assets other than those shares—

(a)the expenditure on those shares which was set against the gain in question shall be treated, in determining for the purposes of this paragraph the amount of expenditure on each of those assets which is to be treated as having been set against that gain, as apportioned in such manner as may be just and reasonable between those assets; and

(b)as between different assets treated as representing the same relevant shares, the assumptions for which sub-paragraph (3) above provides shall apply with the necessary modifications in relation to those assets as they would apply in relation to the shares.

Person to whom gain accruesU.K.

5(1)The chargeable gain which accrues, in accordance with paragraph 4 above, on the occurrence in relation to any relevant shares of a chargeable event shall be treated as accruing, as the case may be—

(a)to the person who makes the disposal,

(b)to the person who becomes a non-resident,

(c)to the person who holds the shares in question when the company ceases to be a qualifying company, or

(d)to the person who holds the shares in question when the circumstances arise in respect of which the relief is withdrawn or reduced.

(2)Where—

(a)sub-paragraph (1) above provides for the holding of shares at a particular time to be what identifies the person to whom any chargeable gain accrues, and

(b)at that time, some of those shares are held by the investor and others are held by a person to whom the investor has transferred them by a disposal within marriage,

the amount of the chargeable gain accruing by virtue of paragraph 4 above shall be computed separately in relation to the investor and that person without reference to the shares held by the other.

InterpretationU.K.

6(1)In this Schedule “non-resident” means a person who is neither resident nor ordinarily resident in the United Kingdom.

(2)In this Schedule references to a disposal within marriage are references to any disposal to which section 58 applies.

(3)Notwithstanding anything in section 288(5), shares shall not for the purposes of this Schedule be treated as issued by reason only of being comprised in a letter of allotment or similar instrument.

(4)Chapter III of Part VII of the Taxes Act shall apply for the purposes of this Schedule to determine whether and to what extent any relief under that Chapter is attributable to any shares.

(5)References in this Schedule to Chapter III of Part VII of the Taxes Act or any provision of that Chapter are to that Chapter or provision as it applies in relation to shares issued on or after 1st January 1994.”

(4)This paragraph has effect in relation to gains accruing and events occurring on or after 29th November 1994.

Section 70.

F62SCHEDULE 14U.K. Venture Capital Trusts: Meaning of “qualifying holdings”

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Section 71.

F63SCHEDULE 15U.K. Venture Capital Trusts: Relief from Income Tax

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F64SCHEDULE 16U.K.

Section 74.

SCHEDULE 17U.K. Settlements: liability of settlor

Part IU.K. The new provisions

1U.K.In Part XV of the Taxes Act 1988 (settlements) the following provisions are inserted (in place of sections 660 to 676 and 683 to 685) as Chapter IA—

“Chapter IAU.K. Liability of settlor

Main provisionsU.K.

660A Income arising under settlement where settlor retains an interest.

(1)Income arising under a settlement during the life of the settlor shall be treated for all purposes of the Income Tax Acts as the income of the settlor and not as the income of any other person unless the income arises from property in which the settlor has no interest.

(2)Subject to the following provisions of this section, a settlor shall be regarded as having an interest in property if that property or any derived property is, or will or may become, payable to or applicable for the benefit of the settlor or his spouse in any circumstances whatsoever.

(3)The reference in subsection (2) above to the spouse of the settlor does not include—

(a)a person to whom the settlor is not for the time being married but may later marry, or

(b)a spouse from whom the settlor is separated under an order of a court, or under a separation agreement or in such circumstances that the separation is likely to be permanent, or

(c)the widow or widower of the settlor.

(4)A settlor shall not be regarded as having an interest in property by virtue of subsection (2) above if and so long as none of that property, and no derived property, can become payable or applicable as mentioned in that subsection except in the event of—

(a)the bankruptcy of some person who is or may become beneficially entitled to the property or any derived property, or

(b)an assignment of or charge on the property or any derived property being made or given by some such person, or

(c)in the case of a marriage settlement, the death of both parties to the marriage and of all or any of the children of the marriage, or

(d)the death of a child of the settlor who had become beneficially entitled to the property or any derived property at an age not exceeding 25.

(5)A settlor shall not be regarded as having an interest in property by virtue of subsection (2) above if and so long as some person is alive and under the age of 25 during whose life that property, or any derived property, cannot become payable or applicable as mentioned in that subsection except in the event of that person becoming bankrupt or assigning or charging his interest in the property or any derived property.

(6)The reference in subsection (1) above to a settlement does not include an outright gift by one spouse to the other of property from which income arises, unless—

(a)the gift does not carry a right to the whole of that income, or

(b)the property given is wholly or substantially a right to income.

(7)The reference in subsection (1) above to a settlement does not include an irrevocable allocation of pension rights by one spouse to the other in accordance with the terms of a relevant statutory scheme (within the meaning of Chapter I of Part XIV).

(8)Subsection (1) above does not apply to income arising under a settlement made by one party to a marriage by way of provision for the other—

(a)after the dissolution or annulment of the marriage, or

(b)while they are separated under an order of a court, or under a separation agreement or in such circumstances that the separation is likely to be permanent,

being income payable to or applicable for the benefit of that other party.

(9)Subsection (1) above does not apply to income consisting of—

(a)annual payments made by an individual for bona fide commercial reasons in connection with his trade, profession or vocation; or

(b)covenanted payments to charity (as defined by section 347A(7)).

(10)In this section “derived property”, in relation to any property, means income from that property or any other property directly or indirectly representing proceeds of, or of income from, that property or income therefrom.

660B Payments to unmarried minor children of settlor.

(1)Income arising under a settlement which does not fall to be treated as income of the settlor under section 660A but which during the life of the settlor is paid to or for the benefit of an unmarried minor child of the settlor in any year of assessment shall be treated for all the purposes of the Income Tax Acts as the income of the settlor for that year and not as the income of any other person.

(2)Where income arising under a settlement is retained or accumulated by the trustees, any payment whatsoever made thereafter by virtue or in consequence of the settlement, or any enactment relating thereto, to or for the benefit of an unmarried minor child of the settlor shall be deemed for the purposes of subsection (1) above to be a payment of income if or to the extent that there is available retained or accumulated income.

(3)There shall be taken to be available retained or accumulated income at any time when the aggregate amount of the income which has arisen under the settlement since it was made or entered into exceeds the aggregate amount of income so arising which has been—

(a)treated as income of the settlor or a beneficiary, or

(b)paid (whether as income or capital) to or for the benefit of a beneficiary other than an unmarried minor child of the settlor, or

(c)applied in defraying expenses of the trustees which were properly chargeable to income (or would have been so chargeable but for any express provisions of the trust).

(4)Where an offshore income gain (within the meaning of Chapter V of Part XVII) accrues in respect of a disposal of assets made by a trustee holding them for a person who would be absolutely entitled as against the trustee but for being a minor, the income which by virtue of section 761(1) is treated as arising by reference to that gain shall for the purposes of this section be deemed to be paid to that person.