SCHEDULES

Section 6.

SCHEDULE 1U.K. GENERAL BETTING DUTY

For sections 1 to 5 of the Betting and Gaming Duties Act 1981 (c. 63) (general betting duty: charge, rate and payment) substitute—

“ General betting dutyU.K.

1 The duty

A duty of excise to be known as general betting duty shall be charged in accordance with sections 2 to 5D.

2 Bookmakers: general bets

(1)General betting duty shall be charged on a bet made with a bookmaker who is in the United Kingdom.

(2)Subsection (1) does not apply to—

(a)an on-course bet,

(b)a spread bet,

(c)a bet made by way of pool betting, or

(d)a bet made by way of coupon betting.

(3)The amount of duty charged in respect of bets made with a bookmaker in an accounting period shall be 15 per cent. of the amount of his net stake receipts for that period.

3 Bookmakers: spread bets

(1)General betting duty shall be charged on a spread bet made with a bookmaker who—

(a)is in the United Kingdom, and

(b)holds a bookmaker’s permit.

(2)A bet is a spread bet if it constitutes a contract to which section 63 of the Financial Services Act 1986 applies by virtue of paragraphs 9 and 12 of Schedule 1 to that Act (gaming contracts: investments).

(3)The amount of duty charged under subsection (1) in respect of spread bets made with a bookmaker in an accounting period shall be—

(a)3 per cent. of the amount of his net stake receipts in respect of financial spread bets for that period (if any), plus

(b)10 per cent. of the amount of his net stake receipts in respect of other spread bets for that period (if any).

(4)A “financial spread bet” is a spread bet the subject of which is a financial matter.

(5)The Commissioners may by order provide that a specified matter—

(a)shall be treated as a financial matter for the purpose of subsection (4), or

(b)shall not be treated as a financial matter for that purpose.

4 Other betting

(1)General betting duty shall be charged on sponsored pool betting.

(2)General betting duty shall be charged on a bet made by means of facilities provided by the Horserace Totalisator Board.

(3)General betting duty shall be charged on a bet made on an event on a track falling within subsection (4) if the bet is made—

(a)by means of a totalisator which operates on that track, and

(b)on the day of the event.

(4)A track falls within this subsection if—

(a)a track betting licence is in force for the track under Schedule 3 to the Betting, Gaming and Lotteries Act 1963,

(b)a track betting licence is in force for the track under Article 37 of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985, or

(c)the Commissioners designate the track for the purposes of this subsection.

(5)The amount of duty charged under subsections (1) to (3) in respect of bets made by means of facilities provided by a person in an accounting period shall be 15 per cent. of the amount of his net stake receipts for that period.

(6)Subsections (1) to (3) do not apply to—

(a)on-course bets, or

(b)coupon betting.

5 Net stake receipts

(1)For the purposes of a charge under a provision of sections 2 to 4 in respect of the class of bets to which the provision applies, the amount of a person’s net stake receipts for an accounting period is X minus Y, where—

(a)X is the aggregate of amounts which fall due to that person in the accounting period in respect of bets of that class made with him, and

(b)Y is the aggregate of amounts paid by the person in that period by way of winnings to persons who made bets of that class with him (irrespective of when the bets were made or determined).

(2)Where—

(a)a person makes a bet other than a spread bet, and

(b)the sum which he will lose if unsuccessful is known when the bet is made,

that sum shall be treated for the purposes of subsection (1)(a) as falling due when the bet is made (irrespective of when it is actually paid or required to be paid).

(3)Where the amount of a person’s net stake receipts is zero or a negative amount, it shall be disregarded for the purposes of sections 2 to 4.

(4)In calculating an amount due to a person in respect of a bet, no deduction shall be made in respect of—

(a)any other benefit secured by the person who makes the bet as a result of paying the money,

(b)a person’s expenses, whether in paying duty or otherwise, or

(c)any other matter.

(5)Where a person makes a bet in pursuance of an offer which permits him to pay nothing or less than the amount which he would have been required to pay without the offer, he shall be treated for the purposes of this section as being due to pay that amount—

(a)to the person with whom the bet is made, and

(b)at the time when the bet is made.

(6)For the purpose of subsection (1)(b)—

(a)the reference to paying an amount to a person includes a reference to holding it in an account if the person is notified that the amount is being held for him in the account and that he is entitled to withdraw it on demand,

(b)the return of a stake shall be treated as a payment by way of winnings, and

(c)only payments of money shall be taken into account.

(7)In the application of this section to a charge under section 4(1) to (3), a reference to bets made with a person shall be treated as a reference to bets made by means of facilities provided by him.

5A Multiple bets

(1)Subject to subsection (3), this section applies where—

(a)a person bets on more than one contingency, and

(b)he bets on terms that if his bet in respect of one contingency is successful the stake or winnings will be carried forward as the stake in respect of another contingency.

(2)Where this section applies—

(a)the person mentioned in subsection (1)(a) shall be treated for the purposes of sections 2 to 4 as making a separate bet on each contingency, and

(b)each bet which depends on the result of an earlier bet shall be treated as being made at the time of that result.

(3)This section does not apply where a person bets on more than one contingency if—

(a)the betting takes the form of a single bet or of bets placed at a single time, and

(b)the terms mentioned in subsection (1) do not permit the arrangement for carrying forward to be varied or terminated.

(4)In subsection (1)(b) the reference to “the stake or winnings” includes a reference to—

(a)any part of the stake,

(b)any part of the winnings, and

(c)any combination of stake and winnings.

5B Liability to pay

(1)At the end of each accounting period all general betting duty chargeable in respect of bets made in the period shall become due.

(2)In the case of bets made with a bookmaker in an accounting period the general betting duty shall be paid—

(a)when it becomes due, and

(b)by the bookmaker.

(3)But general betting duty which is due to be paid by a bookmaker in respect of bets may be recovered from the following persons as if they and the bookmaker were jointly and severally liable to pay the duty—

(a)the holder of a bookmaker’s permit for the business in the course of which the bets were made;

(b)a person responsible for the management of that business;

(c)where the bookmaker is a company, a director.

(4)In the case of bets made in an accounting period by means of facilities provided by a person as described in section 4(1) to (3) the general betting duty shall be paid—

(a)when it becomes due, and

(b)by the person who provides the facilities.

(5)This section is without prejudice to paragraph 2 of Schedule 1 to this Act or regulations made under it.

5C Bet-brokers

(1)This section applies where—

(a)one person (the “bettor”) makes a bet with another person (the “bet-taker”) using facilities provided in the course of a business by a third person (the “bet-broker”), or

(b)one person (the “bet-broker”) in the course of a business makes a bet with another person (the “bet-taker”) as the agent of a third person (the “bettor”) (whether the bettor is a disclosed principal or an undisclosed principal).

(2)For the purposes of sections 2 to 5B—

(a)the bet shall be treated as if it were made by the bettor with the bet-broker and not with the bet-taker,

(b)the bet-broker shall be treated as a bookmaker in respect of the bet,

(c)the aggregate of amounts due to be paid by the bettor in respect of the bet shall be treated as being due to the bet-broker, and

(d)a sum paid by the bet-taker by way of winnings in respect of the bet shall be treated as having been paid by the bet-broker at that time and for that purpose.

(3)But subsection (2) does not apply to a bet if—

(a)the bet-taker holds a bookmaker’s permit, and

(b)the bet would not be an on-course bet if the bet-broker were making the bet with the bet-taker as principal.

(4)In the case of a bet which is excluded from subsection (2) by virtue of subsection (3), for the purposes of sections 2 to 5B—

(a)the bet shall be treated as if it were made separately by the bettor with the bet-broker and by the bet-broker with the bet-taker,

(b)the bet-broker shall be treated as a bookmaker in respect of the bet,

(c)the aggregate of amounts due to be paid by the bettor in respect of the bet shall be treated as being due separately to the bet-broker and to the bet-taker (and any amount due to be paid by the bet-broker to the bet-taker shall be disregarded), and

(d)a sum paid by the bet-taker by way of winnings in respect of the bet shall be treated as having been paid separately by the bet-taker and by the bet-broker at that time and for that purpose (and any sum paid by the bet-broker shall be disregarded).

(5)This section does not apply—

(a)to bets made by way of pool betting, or

(b)to bets made using facilities provided by a person holding (and relying on) a betting agency permit (within the meaning of section 9(2)(c)(ii) of the Betting, Gaming and Lotteries Act 1963).

(6)Where there is any doubt as to which of two persons is the bettor and which the bet-taker for the purposes of subsection (1)(a), whichever of the two was the first to use the facilities of the bet-broker to offer the bet shall be treated as the bet-taker.

5D Accounting period

(1)For the purposes of sections 2 to 5C—

(a)each calendar month is an accounting period, but

(b)the Commissioners may provide in regulations under paragraph 2 of Schedule 1 to this Act for some other specified period to be an accounting period.

(2)Regulations made by virtue of subsection (1)(b) may—

(a)make provision which applies generally or only in relation to a specified person or class of person;

(b)make different provision for different purposes;

(c)make transitional provision.”

.

1U.K.F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2U.K.For section 9(3)(a) of that Act (protection of revenue) substitute—

“(a)to any bet which is made by way of pool betting or coupon betting if—

(i)the bet is not made by means of a totalisator,

(ii)the promoter is in the Isle of Man,

(iii)the bet is chargeable with a duty imposed by or under an Act of Tynwald which corresponds to pool betting duty, and

(iv)the duty mentioned in sub-paragraph (iii) is chargeable on the bet at a rate not less than the appropriate rate of pool betting duty; or

(aa)to any bet which is made with a bookmaker if—

(i)it is not made by way of pool betting or coupon betting,

(ii)the bookmaker is in the Isle of Man,

(iii)a duty is imposed by or under an Act of Tynwald in respect of bookmaker’s receipts from bets of that kind, and

(iv)the rates and method of calculation of that duty result in no less duty being charged in respect of bets of that kind than is charged by way of general betting duty in respect of bets of that kind; or”.

3U.K.Paragraph 2(4)(b) and (c) of Schedule 1 to that Act (general betting duty: administration: records) shall cease to have effect.

Section 9.

SCHEDULE 2U.K. RATES OF VEHICLE EXCISE DUTY ON GOODS VEHICLES

1U.K.Part 8 of Schedule 1 to the Vehicle Excise and Registration Act 1994 (c. 22) (annual rates of vehicle excise duty: goods vehicles) is amended as follows.

2U.K.For the Table in paragraph 9(1) (rigid goods vehicles not satisfying reduced pollution requirements and with a revenue weight exceeding 3,500 kilograms but not exceeding 44,000 kilograms) substitute—

3U.K.In paragraph 9(3) (rigid goods vehicles not satisfying reduced pollution requirements and with a revenue weight exceeding 44,000 kilograms), for “£5,170” substitute “ £2,585 ”.

4U.K.In paragraph 9A(3) (rigid goods vehicles satisfying reduced pollution requirements and with a revenue weight exceeding 44,000 kilograms), for “£4,170” substitute “ £2,085 ”.

5U.K.For the Table in paragraph 9B (rigid goods vehicles satisfying reduced pollution requirements and with a revenue weight exceeding 3,500 kilograms but not exceeding 44,000 kilograms) substitute—

F26U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7U.K.For the Table in paragraph 11(1) (tractive units not satisfying reduced pollution requirements and with a revenue weight exceeding 3,500 kilograms but not exceeding 44,000 kilograms) substitute—

8U.K.In paragraph 11(3) (tractive units not satisfying reduced pollution requirements and with a revenue weight exceeding 44,000 kilograms), for “£5,170” substitute “ £2,585 ”.

9U.K.In paragraph 11A(3) (tractive units satisfying reduced pollution requirements and with a revenue weight exceeding 44,000 kilograms), for “£4,170” substitute “ £2,085 ”.

10U.K.For the Table in paragraph 11B (tractive units satisfying reduced pollution requirements and with a revenue weight exceeding 3,500 kilograms but not exceeding 44,000 kilograms) substitute—

11U.K.In paragraph 11C(2)(a) (certain tractive units not satisfying reduced pollution requirements and with a revenue weight exceeding 41,000 kilograms but not exceeding 44,000 kilograms), for “£1,280” substitute “ £650 ”.

Section 15.

SCHEDULE 3U.K. EXCISE DUTY: PAYMENTS BY COMMISSIONERS IN CASE OF ERROR OR DELAY

Part 1U.K. PAYMENTS

Duty paid in errorU.K.

1(1)This paragraph applies if—

(a)the first condition set out below is satisfied, and

(b)either the second or the third condition set out below is satisfied.

(2)The first condition is that, due to an error on the part of the Commissioners, any of the following occurs at any time—

(a)a person is refused authorisation for the purposes of [F3section 78 of the Finance (No. 2) Act 2023 (alcohol duty: authorised use for certain purposes)];

F4(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)a person is refused approval for the purposes of section 9(1) or 14(1) of the Hydrocarbon Oil Duties Act 1979 (c. 5);

(d)a person is refused consent for the purposes of section 10(1) of that Act.

(3)The second condition is that on or after the commencement day a person pays to the Commissioners an amount by way of excise duty which would not have been paid but for the error.

(4)The third condition is that on or after the commencement day the person refused pays for goods an amount which includes an amount which—

(a)represents a payment by way of excise duty, and

(b)would not have been included but for the error.

(5)If the second condition is satisfied the Commissioners may pay to the person refused an amount equal to the duty which would not have been paid.

(6)If the third condition is satisfied the Commissioners may pay to the person refused an amount which appears to them to be equal to the payment by way of excise duty.

(7)The person refused is the person refused an authorisation, direction, approval or consent.

Error relating to rebateU.K.

2(1)This paragraph applies if the following two conditions are satisfied.

(2)The first condition is that a person is entitled to use rebated heavy oil in particular circumstances.

(3)The second condition is that—

(a)due to an error on the part of the Commissioners he is unable to use rebated heavy oil in those circumstances,

(b)he uses unrebated heavy oil instead in those circumstances, and

(c)the use occurs on or after the commencement day.

(4)The Commissioners may pay to the person an amount equal to the rebate which would have been allowable under section 11 of the Hydrocarbon Oil Duties Act 1979 (c. 5) if—

(a)the heavy oil used by him in those circumstances had (at the time of that use) been delivered for home use, and

(b)the other conditions for allowing rebate had been satisfied at that time.

(5)Rebated heavy oil is heavy oil on whose delivery for home use a rebate has been allowed under section 11 of the Hydrocarbon Oil Duties Act 1979, and unrebated heavy oil is other heavy oil.

ClaimsU.K.

3No payment may be made to a person under this Part of this Schedule unless—

(a)he makes a claim in such form and manner, and containing such matters, as the Commissioners may prescribe by regulations, and

(b)he satisfies such other conditions as the Commissioners may impose by regulations.

Part 2U.K. INTEREST

Commissioners’ delayU.K.

4(1)This paragraph applies if—

(a)a person is entitled to obtain an amount by way of repayment or drawback in respect of excise duty paid to the Commissioners,

(b)on or after the commencement day he makes a claim for the repayment or drawback, and

(c)the Commissioners fail to authorise it within the allowable period.

(2)The Commissioners must pay interest to the person on the amount for the applicable period.

(3)The allowable period is the period of 30 days starting with the day on which the Commissioners receive the claim.

(4)The applicable period is the period which—

(a)starts with the day after the allowable period ends, and

(b)ends with the day when the Commissioners authorise the repayment or drawback.

(5)Sub-paragraph (4) is subject to paragraph 6.

5(1)This paragraph applies if—U.K.

(a)a person is entitled to obtain an amount by way of repayment or drawback in respect of excise duty paid to the Commissioners,

(b)on or after the commencement day he makes a claim for the repayment or drawback,

(c)the Commissioners set off the amount against an assessment,

(d)the assessment is withdrawn, and

(e)the Commissioners authorise the repayment or drawback.

(2)The Commissioners must pay interest to the person on the amount for the applicable period.

(3)The applicable period is the period which—

(a)starts with the earlier of the days referred to in sub-paragraph (4), and

(b)ends with the day when the Commissioners authorise the repayment or drawback.

(4)The days are—

(a)the day the amount is set off;

(b)the day after the end of the period of 30 days starting with the day on which the Commissioners receive the claim.

(5)Sub-paragraphs (3) and (4) are subject to paragraph 6.

6(1)In deciding the applicable period for the purposes of paragraphs 4 and 5 any period by which the Commissioners’ authorisation of the repayment or drawback is delayed by circumstances beyond their control must be ignored.U.K.

(2)In applying sub-paragraph (1) account must be taken in particular of any period referable to—

(a)any failure by any person to provide the Commissioners with information requested by them to enable the existence and amount of the claimant’s entitlement to a repayment or drawback to be determined;

(b)the making (in connection with the claim for repayment or drawback) of a claim to anything to which the claimant is not entitled.

(3)In deciding for the purposes of sub-paragraph (2)(a) whether a period of delay is referable to a failure by a person to provide information requested, the period mentioned in sub-paragraph (4) must be taken to be so referable (except so far as may be prescribed by the Commissioners by regulations).

(4)The period is that which—

(a)starts with the day when the Commissioners request the person to provide information they reasonably consider relevant to the matter to be determined, and

(b)ends with the earliest day when it would be reasonable for them to conclude that they have received a complete answer to their request or all they need to answer it, or to conclude that it is unnecessary for them to be provided with information in answer to their request.

Commissioners’ errorU.K.

7(1)This paragraph applies if—

(a)due to an error on the part of the Commissioners a person pays to them an amount by way of excise duty,

(b)the person is entitled to obtain repayment of the amount,

(c)he makes a claim (at any time) for the repayment and the Commissioners authorise it on or after the commencement day, and

(d)he makes a claim for interest under this paragraph before the end of the period of [F54 years] starting with the day when the Commissioners authorise the repayment.

(2)The Commissioners must pay interest to the person on the amount concerned for the applicable period.

(3)The applicable period is the period which—

(a)starts with the day when the payment is received by the Commissioners, and

(b)ends with the day when they authorise repayment.

(4)Sub-paragraph (3) is subject to paragraph 11.

8(1)This paragraph applies if—U.K.

(a)a person pays to the Commissioners an amount by way of excise duty,

(b)he is entitled to obtain an amount by way of repayment, remission, rebate or drawback in respect of the duty,

(c)due to an error on the part of the Commissioners he fails to claim the amount when he would (apart from the error) have done so,

(d)the person makes a claim (at any time) for the repayment, remission, rebate or drawback and the Commissioners authorise it on or after the commencement day, and

(e)he makes a claim for interest under this paragraph before the end of the period of [F64 years] starting with the day when the Commissioners authorise the repayment, remission, rebate or drawback.

(2)The Commissioners must pay interest to the person on the amount concerned for the applicable period.

(3)The applicable period is the period which—

(a)starts with the day when (apart from the error) the Commissioners might reasonably have been expected to authorise repayment, remission, rebate or drawback, and

(b)ends with the day when they authorise it.

(4)Sub-paragraph (3) is subject to paragraph 11.

9(1)This paragraph applies if—U.K.

(a)a person pays to the Commissioners an amount by way of excise duty,

(b)he is entitled to obtain an amount by way of repayment, remission, rebate or drawback in respect of the duty,

(c)he makes a claim (at any time) for the repayment, remission, rebate or drawback and the Commissioners authorise it,

(d)due to an error on the part of the Commissioners their authorisation is delayed,

(e)the Commissioners authorise the repayment, remission, rebate or drawback on or after the commencement day,

(f)neither paragraph 4 nor paragraph 5 applies in relation to the person, and

(g)the person makes a claim for interest under this paragraph before the end of the period of [F74 years] starting with the day when the Commissioners authorise the repayment, remission, rebate or drawback.

(2)The Commissioners must pay interest to the person on the amount concerned for the applicable period.

(3)The applicable period is the period which—

(a)starts with the day when (apart from the error) the Commissioners might reasonably have been expected to authorise repayment, remission, rebate or drawback, and

(b)ends with the day when they authorise it.

(4)Sub-paragraph (3) is subject to paragraph 11.

10(1)This paragraph applies if—U.K.

(a)a person makes a claim for a payment under paragraph 1 or 2 of this Schedule and the Commissioners authorise it, and

(b)he makes a claim for interest under this paragraph before the end of the period of [F84 years] starting with the day when the Commissioners authorise the payment.

(2)The Commissioners must pay interest to the person on the amount concerned for the applicable period.

(3)The applicable period is the period which—

(a)starts with the day when the second or third condition in paragraph 1 or the second condition in paragraph 2 (as the case may be) is satisfied in relation to that person, and

(b)ends with the day when the Commissioners authorise the payment under that paragraph.

(4)Sub-paragraph (3) is subject to paragraph 11.

11(1)In deciding the applicable period for the purposes of paragraphs 7 to 10 any period by which the Commissioners’ authorisation of the repayment, remission, rebate, drawback or payment is delayed by circumstances beyond their control must be ignored.U.K.

(2)In applying sub-paragraph (1) account must be taken in particular of any period referable to—

(a)any unreasonable delay in claiming repayment, remission, rebate, drawback or payment;

(b)any failure by any person to provide the Commissioners with information requested by them to enable the existence and amount of a claimant’s entitlement to repayment, remission, rebate, drawback, payment or interest to be determined;

(c)the making (in connection with the claim for repayment, remission, rebate, drawback or payment) of a claim to anything to which the claimant is not entitled.

(3)In deciding for the purposes of sub-paragraph (2)(b) whether a period of delay is referable to a failure by a person to provide information requested, the period mentioned in sub-paragraph (4) must be taken to be so referable (except so far as may be prescribed by the Commissioners by regulations).

(4)The period is that which—

(a)starts with the day when the Commissioners request the person to provide information they reasonably consider relevant to the matter to be determined, and

(b)ends with the earliest day when it would be reasonable for them to conclude that they have received a complete answer to their request or all they need to answer it, or to conclude that it is unnecessary for them to be provided with information in answer to their request.

ClaimsU.K.

12(1)A claim for interest under a relevant paragraph must be made in such form and manner, and contain such matters, as the Commissioners may prescribe by regulations.

(2)If a person makes a claim under a relevant paragraph for interest on an amount, he may not make a claim under another relevant paragraph for interest on that amount.

(3)The relevant paragraphs are paragraphs 7 to 10.

Rate of interestU.K.

13In the case of interest under this Part of this Schedule, the rate is that applicable under section 197 of the Finance Act 1996 (c. 8) (rates of interest).

Part 3U.K. APPEALS

14(1)This paragraph applies if—U.K.

(a)a person (the appellant) appeals to a tribunal under section 16 of the Finance Act 1994 (c. 9) in relation to an assessment to excise duty,

(b)the appellant pays, or gives cash security for, the whole or any part of that duty, and

(c)the tribunal finds that the whole or any part of the amount paid or secured is not due.

(2)The Commissioners must repay to the appellant an amount equal to—

(a)so much of the duty paid as is found not to be due, or

(b)so much of the cash security as relates to the duty found not to be due.

(3)The Commissioners must pay interest to the appellant on the amount referred to in sub-paragraph (2) for the period which—

(a)starts with the day when the duty is paid or the cash security is given, and

(b)ends with the day when the Commissioners authorise the repayment.

[F9(4)The rate of interest is the rate applicable under section 197 of the Finance Act 1996.]

(5)In this paragraph “cash security” means such adequate security as enables the Commissioners to place the amount in question on deposit.

Part 4U.K. GENERAL

AmendmentsU.K.

15In section 137A of the Customs and Excise Management Act 1979 (c. 2) (recovery of overpaid excise duty) insert after subsection (5)—

“(6)This section does not apply in a case where the Commissioners are—

(a)entitled to pay an amount under Part 1 of Schedule 3 to the Finance Act 2001, or

(b)required to repay an amount under Part 3 of that Schedule.”.

16U.K.In section 16(9) of the Finance Act 1994 (c. 9) (matters which are not ancillary matters) for the words from “paragraph 9(e)” to the end substitute— “the following paragraphs of Schedule 5—

(a)paragraph 3(4);

(b)paragraph 4(3);

(c)paragraph 9(e);

(d)paragraph 9A.”.

17(1)Schedule 5 to the Finance Act 1994 (decisions subject to review and appeal) is amended as follows.U.K.

(2)In paragraph 3 (decisions about alcoholic liquor) insert after sub-paragraph (3)—

“(4)Any decision which—

(a)is made under paragraph 1 of Schedule 3 to the Finance Act 2001, and

(b)relates to the Alcoholic Liquor Duties Act 1979.”.

(3)In paragraph 4 (decisions about hydrocarbon oil) insert after sub-paragraph (2)—

“(3)Any decision which—

(a)is made under paragraph 1 or 2 of Schedule 3 to the Finance Act 2001, and

(b)relates to the Hydrocarbon Oil Duties Act 1979.”.

(4)After paragraph 9 insert—

“9A“The Finance Act 2001

“9AAny decision under or for the purposes of Part 2 of Schedule 3 to the Finance Act 2001 (interest).”.

18(1)Section 197(2) of the Finance Act 1996 (c. 8) (setting rates of interest) is amended as follows.U.K.

(2)For paragraph (a) substitute—

“(a)paragraph 7 of Schedule 6 to the Finance Act 1994 (interest payable to the Commissioners of Customs and Excise in connection with air passenger duty);”.

(3)After paragraph (h) (which is inserted by section 49(2) of this Act) insert—

“(i)Parts 2 and 3 of Schedule 3 to the Finance Act 2001 (interest payable on repayments etc.).”.

19(1)Schedule 5 to the Finance Act 1997 (c. 16) (recovery of excess payments) is amended as follows.U.K.

(2)In paragraph 14 (assessment for excessive repayment) at the end of sub-paragraph (3)(b) omit “or” and after sub-paragraph (3)(c) insert— “or

(d)Part 1 of Schedule 3 to the Finance Act 2001 (payments made and rebates disallowed in error).”.

(3)In paragraph 15 (assessment for overpayments of interest) omit sub-paragraph (2)(a), at the end of sub-paragraph (2)(b) omit “or”, and after sub-paragraph (2)(c) insert— “or

(d)Part 2 of Schedule 3 to the Finance Act 2001 (interest).”.

(4)In paragraph 19 (review of decisions and appeals) in sub-paragraph (1)(c) for “the relevant interest provision is paragraph 9 of Schedule 6 to the Finance Act 1994” substitute “ Part 1 of Schedule 3 to the Finance Act 2001 or the relevant interest provision is Part 2 of that Schedule ”.

(5)In paragraph 20 (interpretation of Part 5) in sub-paragraph (2)(a)(ii) for “paragraph 9 of Schedule 6 to the Finance Act 1994” substitute “ Part 2 of Schedule 3 to the Finance Act 2001 ”.

20U.K.In Schedule 6 to the Finance Act 1994 (c. 9), paragraphs 9 and 10 (interest in relation to air passenger duty) are omitted.

GeneralU.K.

21(1)This Schedule shall come into force in accordance with provision made by the Commissioners by order.

(2)A reference in a provision of this Schedule to the commencement day is to such day as the Commissioners appoint by such order for the purposes of that provision.

22(1)A power to make an order or regulations under this Schedule is exercisable by statutory instrument.U.K.

(2)An order or regulations under this Schedule—

(a)may make different provision for different purposes;

(b)may make incidental, supplemental, saving or transitional provision.

(3)Regulations under this Schedule are subject to annulment in pursuance of a resolution of either House of Parliament.

23U.K.References in this Schedule to the Commissioners are to the Commissioners of Customs and Excise.

Section 24.

SCHEDULE 4U.K. AGGREGATES LEVY: REGISTRATION

Notification of registrability etc.U.K.

1[F10(1)An unregistered person who—

(a)is required to be registered for the purposes of aggregates levy, or

(b)has formed the intention of carrying out taxable activities that are registrable,

shall notify the Commissioners of that fact.

(1A)An unregistered person who—

(a)would be required to be registered for the purposes of aggregates levy but for an exemption by virtue of regulations under section 24(4) of this Act, or

(b)has formed the intention of carrying out taxable activities that would be registrable but for such an exemption,

shall, in such cases or circumstances as may be prescribed in the regulations, notify the Commissioners of that fact.

(1B)For the purposes of sub-paragraphs (1) and (1A) above, taxable activities are registrable if a person carrying them out is, by reason of doing so, required by section 24(2) of this Act to be registered for the purposes of aggregates levy.]

F11(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F11(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F11(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F11(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F11(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Form of registrationU.K.

2(1)The Commissioners shall register a person who is required to be registered for the purposes of aggregates levy with effect from the time when the requirement arose.

(2)Where any two or more bodies corporate are members of the same group they shall be registered together as one person in the name of the representative member.

(3)The registration of a body corporate carrying on a business in several divisions may, if the body corporate so requests and the Commissioners see fit, be in the names of those divisions.

(4)The registration of—

(a)any two or more persons carrying on a business in partnership, or

(b)an unincorporated body,

may be in the name of the firm or body concerned.

Notification of loss or prospective loss of registrabilityU.K.

3(1)A person who, having become liable to give a notification by virtue of paragraph 1 above, ceases (whether before or after being registered) to have the intention of carrying out taxable activities shall notify the Commissioners of that fact.

(2)A person who fails to comply with sub-paragraph (1) above shall be liable to a penalty of £250.

Cancellation of registrationU.K.

4(1)If the Commissioners are satisfied that a registered person—

(a)has ceased to carry out taxable activities, and

(b)does not have the intention of carrying out taxable activities,

they may cancel his registration with effect from such time after he last carried out such activities as appears to them to be appropriate.

(2)Sub-paragraph (1) above applies whether or not the registered person has notified the Commissioners under paragraph 3 above.

(3)Where a registered person is exempted from the requirement to be registered by virtue of regulations under section 24(4), the Commissioners may cancel his registration with effect from the time when he became so exempted or such later time as appears to them to be appropriate.

(4)The Commissioners shall be under a duty to exercise the power conferred by sub-paragraph (1) or (3) above with effect from any time if, where the power is exercisable, they are satisfied that the conditions specified in sub-paragraph (5) below are satisfied and were or will be satisfied at that time.

(5)Those conditions are—

(a)that the person in question—

(i)has given a notification under paragraph 3 above; or

(ii)is exempted from the requirement to be registered by virtue of regulations under section 24(4) of this Act;

(b)that no aggregates levy due from that person, and no amount recoverable as if it were such levy, remains unpaid;

(c)that no tax credit to which that person is entitled by virtue of any tax credit regulations is outstanding; and

(d)that that person is not subject to any outstanding liability to make a return for the purposes of aggregates levy.

(6)Where—

(a)a registered person notifies the Commissioners under paragraph 3 above, and

(b)they are satisfied that (if he had not been registered) he would not have been required to be registered at any time since the time when he was registered,

they shall cancel his registration with effect from the date of his registration.

(7)Where—

(a)a registered person is exempted from the requirement to be registered by virtue of regulations under section 24(4) of this Act, and

(b)the Commissioners are satisfied that he has been so exempted at all times since being registered,

they shall cancel his registration with effect from the date of his registration.

Correction of the register etc.U.K.

5(1)The Commissioners may by regulations make provision for and with respect to the correction of entries in the register.

(2)Regulations under this paragraph may, to such extent as appears to the Commissioners appropriate for keeping the register up to date, make provision requiring—

(a)registered persons, and

(b)persons who are required to be registered, and

(c)persons who would be so required but for any exemption by virtue of regulations under section 24(4) of this Act,

to notify the Commissioners of changes in circumstances relating to themselves, their businesses or any other matter with respect to which particulars are contained in the register (or would be, were the person registered).

Supplemental regulations about notificationsU.K.

6(1)For the purposes of any provision made by or under section 24 of this Act or this Schedule for any matter to be notified to the Commissioners, regulations made by the Commissioners may make provision—

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

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

(c)as to the information and other particulars to be contained in or provided with any notification.

(2)For those purposes the Commissioners may also by regulations impose obligations requiring a person who has given a notification to notify the Commissioners if any information contained in or provided in connection with that notification is or becomes inaccurate.

(3)The power under this paragraph to make regulations as to the time within which any notification is to be given shall include power to authorise the Commissioners to extend the time for the giving of a notification.

Publication of information on the registerU.K.

7(1)The Commissioners may publish, by such means as they think fit, any information which—

(a)is derived from the register; and

(b)falls within any of the descriptions set out below.

(2)The descriptions are—

(a)the names of registered persons;

(b)particulars of registered sites;

(c)the fact (where it is the case) that the registered person is a body corporate which is a member of a group;

(d)the names of the other bodies corporate which are members of the group.

(3)Information may be published in accordance with this paragraph notwithstanding any obligation not to disclose the information that would otherwise apply.

Interpretation of ScheduleU.K.

8(1)In this Schedule—

(a)references to the register are references to the register maintained under section 24 of this Act;

(b)references to registering a person are references to registering him in that register; and

(c)references to a person’s registration are references to his registration in that register;

and “unregistered” shall be construed accordingly.

(2)For the purposes of this Schedule a person carries out a taxable activity if a quantity of aggregate is subjected to commercial exploitation in [F12England, Wales or Northern Ireland] in circumstances in which he is responsible for its being so subjected.

Section 27.

SCHEDULE 5U.K. AGGREGATES LEVY: RECOVERY AND INTEREST

Recovery of levy as debt dueU.K.

1Aggregates levy shall be recoverable as a debt due to the Crown.

Assessments of amounts of levy dueU.K.

2(1)Where it appears to the Commissioners—

(a)that any period is an accounting period by reference to which a person is liable to account for aggregates levy,

(b)that any aggregates levy for which that person is liable to account by reference to that period has become due, and

(c)that there has been a default by that person that falls within sub-paragraph (2) below,

they may assess the amount of the levy due from that person for that period to the best of their judgement and notify that amount to that person.

(2)The defaults falling within this sub-paragraph are—

(a)any failure to make a return required to be made by any provision made by or under this Part of this Act;

(b)any failure to keep any documents necessary to verify returns required to be made under any such provision;

(c)any failure to afford the facilities necessary to verify returns required to be made under any such provision;

(d)the making, in purported compliance with any requirement of any such provision to make a return, of an incomplete or incorrect return;

(e)any failure to comply with a requirement imposed by or under Schedule 4 to this Act.

(3)Where it appears to the Commissioners that a default falling within sub-paragraph (2) above is a default by a person on whom the requirement to make a return is imposed in his capacity as the representative of another person, sub-paragraph (1) above shall apply as if the reference to the amount of aggregates levy due included a reference to any aggregates levy due from that other person.

(4)In a case where—

(a)the Commissioners have made an assessment for any accounting period as a result of any person’s failure to make a return for that period,

(b)the levy assessed has been paid but no proper return has been made for that period,

(c)as a result of a failure (whether by that person or a representative of his) to make a return for a later accounting period, the Commissioners find it necessary to make another assessment under this paragraph in relation to the later period, and

(d)the Commissioners think it appropriate to do so in the light of the absence of a proper return for the earlier period,

they may, in the assessment in relation to the later period, specify an amount of aggregates levy due that is greater than the amount that they would have considered to be appropriate had they had regard only to the later period.

(5)Where an amount has been assessed and notified to any person under this paragraph, it shall be recoverable on the basis that it is an amount of aggregates levy due from him.

(6)Sub-paragraph (5) above does not have effect if, or to the extent that, the assessment in question has been withdrawn or reduced.

Supplementary assessmentsU.K.

3(1)If, where an assessment has been notified to any person under paragraph 2 above or this paragraph, it appears to the Commissioners that the amount which ought to have been assessed as due for any accounting period exceeds the amount that has already been assessed, the Commissioners may make a supplementary assessment of the amount of the excess and notify that person accordingly.

(2)Where an amount has been assessed and notified to any person under this paragraph it shall be recoverable on the basis that it is an amount of aggregates levy due from him.

(3)Sub-paragraph (2) above does not have effect if, or to the extent that, the assessment in question has been withdrawn or reduced.

Time limits for assessmentsU.K.

4(1)An assessment under paragraph 2 or 3 above of an amount of aggregates levy due for any accounting period—

(a)shall not be made more than two years after the end of the accounting period unless it is made within the period mentioned in sub-paragraph (2) below; and

(b)subject to sub-paragraph (3) below, shall not in any event be made more than [F134 years] after the end of that accounting period.

(2)The period referred to in sub-paragraph (1)(a) above is the period of one year after evidence of facts sufficient in the Commissioners’ opinion to justify the making of the assessment first came to their knowledge.

[F14(3)An assessment of an amount due from a person in a case involving a loss of aggregates levy—

(a)brought about deliberately by the person (or by another person acting on that person's behalf), or

(b)attributable to a failure by the person to comply with an obligation under section 24(2) or paragraph 1 of Schedule 4,

may be made at any time not more than 20 years after the end of the accounting period to which it relates (subject to sub-paragraph (4)).

(3A)In sub-paragraph (3)(a) the reference to a loss brought about deliberately by the person includes a loss brought about as a result of a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by or on behalf of that person.]

(4)Where, after a person’s death, the Commissioners propose to assess an amount of aggregates levy as due by reason of some conduct of the deceased—

(a)the assessment shall not be made more than [F154 years] after the death; F16...

F16(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)Nothing in this paragraph shall prejudice the powers of the Commissioners under paragraph 2(4) above.

Penalty interest on unpaid levyU.K.

5(1)Where—

(a)a person makes a return for the purposes of any regulations made under section 25 of this Act (whether or not at the time required by the regulations), and

(b)the return shows that an amount of aggregates levy is due from him for the accounting period for which the return is made,

that amount shall carry penalty interest for the period specified in sub-paragraph (2) below.

(2)That period is the period which—

(a)begins with the day after that on which the person is required in accordance with regulations under section 25 of this Act to pay aggregates levy due from him for the accounting period in question; and

(b)ends with the day before that on which the amount shown in the return is paid.

Interest on overdue levy paid before assessmentU.K.

6(1)Where—

(a)the circumstances are such that there was a time when an assessment could have been made under paragraph 2 or 3 above of an amount of levy due from any person, but

(b)before the making and notification to that person of any assessment of that amount, the amount was paid,

the whole of the amount paid shall be taken to have carried interest for the period specified in sub-paragraph (2).

(2)That period is the period which—

(a)begins with the day after that on which the person is required in accordance with regulations under section 25 of this Act to pay aggregates levy due from him for the accounting period to which the amount in question relates; and

(b)ends with the day before that on which that amount was paid.

(3)The interest payable by virtue of this paragraph shall be payable at the rate applicable under section 197 of the Finance Act 1996 (c. 8).

Penalty interest on levy where no return madeU.K.

7(1)Where—

(a)the Commissioners make an assessment under paragraph 2 or 3 above of an amount of aggregates levy due from any person for any accounting period and notify it to him, and

(b)the assessment is made at a time after the time by which a return is required by regulations under section 25 of this Act to be made by that person for that accounting period and before any such return has been made,

that amount shall carry penalty interest for the period specified in sub-paragraph (2) below.

(2)That period is the period which—

(a)begins with the day after that on which the person is required in accordance with regulations under section 25 of this Act to pay aggregates levy due from him for the accounting period in question; and

(b)ends with the day before that on which the assessed amount is paid.

Ordinary and penalty interest on under-declared levyU.K.

8(1)Subject to sub-paragraph (4) below, where—

(a)the Commissioners make an assessment under paragraph 2 or 3 above of an amount of aggregates levy due from any person for any accounting period and notify it to him,

(b)the assessment is made after a return for the purposes of any regulations under section 25 has been made by that person for that accounting period, and

(c)the assessment is made on the basis that the amount (“the additional amount”) is due from him in addition to any amount shown in the return, or in a previous assessment made in relation to the accounting period,

the additional amount shall carry interest for the period specified in sub-paragraph (2) below.

(2)That period is the period which—

(a)begins with the day after that on which the person is required in accordance with regulations under section 25 of this Act to pay aggregates levy due from him for the accounting period in question; and

(b)ends with the day before the day on which the additional amount is paid.

(3)Interest under this paragraph—

(a)in respect of so much of the period specified in sub-paragraph (2) above as falls before the day on which the assessment is notified to the person in question, shall be payable at the rate applicable under section 197 of the Finance Act 1996 (c. 8); and

(b)in respect of the remainder (if any) of that period, shall be penalty interest.

(4)Where—

(a)the Commissioners make an assessment under paragraph 2 or 3 above of an amount of aggregates levy due from any person for any accounting period and notify it to him,

(b)they also specify a date for the purposes of this sub-paragraph, and

(c)the amount assessed is paid on or before that date,

the only interest carried by that amount under this paragraph shall be interest, at the rate given by sub-paragraph (3)(a) above, for the period before the day on which the assessment is notified.

Penalty interest on unpaid ordinary interestU.K.

9(1)Subject to sub-paragraph (2) below, where the Commissioners make an assessment under paragraph 12 below of an amount of interest payable at the rate given by paragraph 8(3)(a) above, that amount shall carry penalty interest for the period which—

(a)begins with the day on which the assessment is notified to the person on whom the assessment is made; and

(b)ends with the day before the day on which the assessed interest is paid.

(2)Where—

(a)the Commissioners make an assessment under paragraph 12 below of an amount of interest due from any person,

(b)they also specify a date for the purposes of this sub-paragraph, and

(c)the amount of interest assessed is paid on or before that date,

the amount paid before that date shall not carry penalty interest under this paragraph.

Penalty interestU.K.

10(1)Penalty interest under any of paragraphs 5 to 9 above shall be compound interest calculated—

(a)at the penalty rate; and

(b)with monthly rests.

(2)For this purpose the penalty rate is the rate found by—

(a)taking the rate applicable under section 197 of the Finance Act 1996 (c. 8) for the purposes of paragraph 8(3)(a) above; and

(b)adding 10 percentage points to that rate.

(3)Where a person is liable under any of paragraphs 5 to 9 above to pay any penalty interest, the Commissioners or, on appeal, an appeal tribunal may reduce the amount payable to such amount (including nil) as they think proper.

(4)Subject to sub-paragraph (5) below, where the person concerned satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the conduct giving rise to the liability to pay penalty interest, that is a matter which (among other things) may be taken into account under sub-paragraph (3) above.

(5)In determining whether there is a reasonable excuse for the purposes of sub-paragraph (4) above, no account shall be taken of any of the following matters, that is to say—

(a)the insufficiency of the funds available to any person for paying any aggregates levy due or for paying the amount of the interest;

(b)the fact that there has, in the case in question or in that case taken with any other cases, been no or no significant loss of aggregates levy;

(c)the fact that the person liable to pay the interest or a person acting on his behalf has acted in good faith.

(6)In the case of interest reduced by the Commissioners under sub-paragraph (3) above an appeal tribunal, on an appeal relating to the interest, may cancel the whole or any part of the reduction made by the Commissioners.

Supplemental provisions about interestU.K.

11(1)Interest under any of paragraphs 5 to 9 above shall be paid without any deduction of income tax.

(2)Sub-paragraph (3) below applies where—

(a)an amount carries interest under any of paragraphs 5 to 9 above (or would do so apart from that sub-paragraph); and

(b)all or part of the amount turns out not to be due.

(3)In such a case—

(a)the amount or part that turns out not to be due shall not carry interest under the applicable paragraph and shall be treated as never having done so; and

(b)all such adjustments as are reasonable shall be made, including (subject to section 32 of, and Schedule 8 to, this Act) adjustments by way of repayment.

Assessments to interestU.K.

12(1)Where a person is liable for interest under any of paragraphs 5 to 9 above, the Commissioners may assess the amount due by way of interest and notify it to him accordingly.

(2)If, where an assessment has been notified to any person under sub-paragraph (1) above or this sub-paragraph, it appears to the Commissioners that the amount which ought to have been assessed exceeds the amount that has already been assessed, the Commissioners may make a supplementary assessment of the amount of the excess and notify that person accordingly.

(3)Where an amount has been assessed and notified to any person under this paragraph, it shall be recoverable as if it were aggregates levy due from him.

(4)Sub-paragraph (3) above—

(a)shall not apply so as to require any interest to be payable on interest except—

(i)in accordance with paragraph 9 above; or

(ii)in so far as it falls to be compounded in accordance with paragraph 10 above;

and

(b)shall not have effect if, or to the extent that, the assessment in question has been withdrawn or reduced.

(5)Paragraph 4 above shall apply in relation to assessments under this paragraph as if any assessment to interest were an assessment under paragraph 2 above to aggregates levy due for the period which is the relevant accounting period in relation to that interest.

(6)Subject to sub-paragraph (7) below, where a person—

(a)is assessed under this paragraph to an amount due by way of any interest, and

(b)is also assessed under paragraph 2 or 3 above for the accounting period which is the relevant accounting period in relation to that interest,

the assessments may be combined and notified to him as one assessment.

(7)A notice of a combined assessment under sub-paragraph (6) above must separately identify the interest being assessed.

(8)The relevant accounting period for the purposes of this paragraph is—

(a)in the case of interest on the levy due for any accounting period, that accounting period; and

(b)in the case of interest on interest (whether under paragraph 9 above or by virtue of any compounding under paragraph 10 above) the period which is the relevant accounting period for the interest on which the interest is payable.

(9)In a case where—

(a)the amount of any interest falls to be calculated by reference to aggregates levy which was not paid at the time when it should have been, and

(b)that levy cannot be readily attributed to any one or more accounting periods,

that levy shall be treated for the purposes of interest on any of that levy as aggregates levy due for such period or periods as the Commissioners may determine to the best of their judgement and notify to the person liable.

Further assessments to penalty interestU.K.

13(1)Where an assessment is made under paragraph 12 above to an amount of penalty interest under any of paragraphs 5 to 9 above—

(a)the notice of assessment shall specify a date, not later than the date of the notice of assessment, to which the amount of interest which is assessed is calculated; and

(b)if the interest continues to accrue after that date, a further assessment or further assessments may be made under paragraph 12 above in respect of the amounts so accruing.

(2)Where—

(a)an assessment to penalty interest is made specifying a date for the purposes of sub-paragraph (1)(a) above, and

(b)within such period as may for the purposes of this sub-paragraph have been notified by the Commissioners to the person liable for the interest, the amount on which the interest is payable is paid,

that amount shall be deemed for the purposes of any further liability to interest to have been paid on the specified date.

Recovery by distressU.K.

14In section 51(5) of the Finance Act 1997 (c. 16) (definition of relevant taxes for the purposes of the power to make provision by regulations for enforcement by distress of the relevant taxes), after paragraph (d) there shall be inserted—

“(da)aggregates levy;”.

Walking possession agreementsE+W+N.I.

15(1)This paragraph applies where—

(a)in accordance with regulations made by virtue of paragraph 14 above a distress is authorised to be levied on the goods and chattels of a person;

(b)that person (“the person in default”) has refused or neglected to pay an amount of aggregates levy due from him or an amount recoverable from him as if it were aggregates levy; and

(c)the person levying the distress and the person in default have entered into a walking possession agreement.

(2)For the purposes of this paragraph a walking possession agreement is an agreement under which, in consideration of the property distrained upon being allowed to remain in the custody of the person in default and of the delaying of its sale, the person in default—

(a)acknowledges that the property specified in the agreement is under distraint and held in walking possession; and

(b)undertakes that, except with the consent of the Commissioners and subject to such conditions as they may impose, he will not remove or allow the removal of any of the specified property from the premises named in the agreement.

(3)Subject to sub-paragraph (4) below, if the person in default is in breach of the undertaking contained in a walking possession agreement, he shall be liable to a penalty equal to one half of the levy or other amount referred to in sub-paragraph (1)(b) above.

(4)The person in default shall not be liable to a penalty under sub-paragraph (3) above if he satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the breach in question.

[F17(5)This paragraph extends only to Northern Ireland.]

Recovery by diligenceU.K.

16In section 52(5) of the Finance Act 1997 (c. 16) (definition of relevant taxes for the purposes of the power to make provision by regulations for enforcement by diligence of the relevant taxes), after paragraph (d) there shall be inserted—

“(da)aggregates levy;”.

Preferential debts in England and Wales and Northern IrelandU.K.

17F18(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F18(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F19(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F19(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Preferred debts in ScotlandU.K.

F2018. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation of Schedule etc.U.K.

19(1)In this Schedule “penalty interest” shall be construed in accordance with paragraph 10 above.

(2)Any notification of an assessment under any provision of this Schedule to a person’s representative shall be treated for the purposes of this Part of this Act as notification to the person in relation to whom the representative acts.

(3)In this Schedule “representative”, in relation to any person, means—

(a)any of that person’s personal representatives;

(b)that person’s trustee in bankruptcy or liquidator;

(c)any person holding office as a receiver in relation to that person or any of his property;

(d)that person’s tax representative or any other person for the time being acting in a representative capacity in relation to that person.

(4)In this paragraph “trustee in bankruptcy” includes, as respects Scotland—

(a)[F21a trustee or interim trustee in the sequestration, under the Bankruptcy (Scotland) Act 2016, of a person’s estate;] and

(b)a trustee acting under a trust deed (within the meaning of that Act).

Section 28.

SCHEDULE 6U.K. AGGREGATES LEVY: EVASION, MISDECLARATION AND NEGLECT

Part 1U.K. CRIMINAL OFFENCES

EvasionU.K.

1(1)A person is guilty of an offence if he is knowingly concerned in, or in the taking of steps with a view to—

(a)the fraudulent evasion by that person of any aggregates levy with which he is charged; or

(b)the fraudulent evasion by any other person of any aggregates levy with which that other person is charged.

(2)The references in sub-paragraph (1) above to the evasion of aggregates levy include references to obtaining, in circumstances where there is no entitlement to it, either a tax credit or a repayment of aggregates levy.

(3)A person guilty of an offence under this paragraph shall be liable (subject to sub-paragraph (4) below)—

(a)on summary conviction, to a penalty of [F22the statutory maximum] [F22£20,000] or to imprisonment for a term not exceeding six months, or to both;

(b)on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years, or to both.

(4)In the case of any offence under this paragraph, where [F23the statutory maximum] [F23the amount of £5,000 mentioned in paragraph 1(3)(a)] is less than three times the sum of the amounts of aggregates levy which are shown to be amounts that were or were intended to be evaded, the penalty on summary conviction shall be the amount equal to three times that sum (instead of [F23the statutory maximum] [F23the amount of £5,000 mentioned in paragraph 1(3)(a)]).

(5)For the purposes of sub-paragraph (4) above the amounts of levy that were or were intended to be evaded shall be taken to include—

(a)the amount of any tax credit, and

(b)the amount of any repayment of aggregates levy,

which was, or was intended to be, obtained in circumstances where there was no entitlement to it.

(6)In determining for the purposes of sub-paragraph (4) above how much aggregates levy (in addition to any amount falling within sub-paragraph (5) above) was or was intended to be evaded, no account shall be taken of the extent (if any) to which any liability to aggregates levy of any person fell, or would have fallen, to be reduced by the amount of any tax credit or repayment of aggregates levy to which he was, or would have been, entitled.

MisstatementsU.K.

2(1)A person is guilty of an offence if, with the requisite intent and for purposes connected with aggregates levy—

(a)he produces or provides, or causes to be produced or provided, any document which is false in a material particular; or

(b)he otherwise makes use of such a document;

and in this sub-paragraph “the requisite intent” means the intent to deceive any person or to secure that a machine will respond to the document as if it were a true document.

(2)A person is guilty of an offence if, in providing any information under any provision made by or under this Part of this Act—

(a)he makes a statement which he knows to be false in a material particular; or

(b)he recklessly makes a statement which is false in a material particular.

(3)A person guilty of an offence under this paragraph shall be liable (subject to sub-paragraph (4) below)—

(a)on summary conviction, to a penalty of [F24the statutory maximum] [F24£20,000] or to imprisonment for a term not exceeding six months, or to both;

(b)on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years, or to both.

(4)In the case of any offence under this paragraph, where—

(a)the document referred to in sub-paragraph (1) above is a return required under any provision made by or under this Part of this Act, or

(b)the information referred to in sub-paragraph (2) above is contained in or otherwise relevant to such a return,

the amount of the penalty on summary conviction shall be whichever is the greater of [F25the statutory maximum] [F25the amount of £20,000 mentioned in sub-paragraph (3)(a)] and the amount equal to three times the sum of the amounts (if any) by which the return understates any person’s liability to aggregates levy.

(5)In sub-paragraph (4) above the reference to the amount by which any person’s liability to aggregates levy is understated shall be taken to be equal to the sum of—

(a)the amount (if any) by which his gross liability was understated; and

(b)the amount (if any) by which any entitlements of his to tax credits and repayments of aggregates levy were overstated.

(6)In sub-paragraph (5) above “gross liability” means liability to aggregates levy before any deduction is made in respect of any entitlement to any tax credit or repayments of aggregates levy.

Conduct involving evasions or misstatementsU.K.

3(1)A person is guilty of an offence under this paragraph if his conduct during any particular period must have involved the commission by him of one or more offences under the preceding provisions of this Schedule.

(2)For the purposes of any proceedings for an offence under this paragraph it shall be immaterial whether the particulars of the offence or offences that must have been committed are known.

(3)A person guilty of an offence under this paragraph shall be liable (subject to sub-paragraph (4) below)—

(a)on summary conviction, to a penalty of [F26the statutory maximum] [F26£20,000] or to imprisonment for a term not exceeding six months, or to both;

(b)on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years, or to both.

(4)In the case of any offence under this paragraph, where [F27the statutory maximum] [F27the amount of £20,000 mentioned in sub-paragraph (3)(a)] is less than three times the sum of the amounts of aggregates levy which are shown to be amounts that were or were intended to be evaded by the conduct in question, the penalty on summary conviction shall be the amount equal to three times that sum (instead of [F27the statutory maximum] [F27the amount of £20,000 mentioned in sub-paragraph (3)(a)]).

(5)For the purposes of sub-paragraph (4) above the amounts of levy that were or were intended to be evaded by any conduct shall be taken to include—

(a)the amount of any tax credit, and

(b)the amount of any repayment of aggregates levy,

which was, or was intended to be, obtained in circumstances where there was no entitlement to it.

(6)In determining for the purposes of sub-paragraph (4) above how much aggregates levy (in addition to any amount falling within sub-paragraph (5) above) was or was intended to be evaded, no account shall be taken of the extent (if any) to which any liability to aggregates levy of any person fell, or would have fallen, to be reduced by the amount of any tax credit or repayments of aggregates levy to which he was, or would have been, entitled.

Preparations for evasionU.K.

4(1)Where a person—

(a)becomes a party to any agreement under or by means of which a quantity of taxable aggregate is or is to be subjected to commercial exploitation in [F28England, Wales or Northern Ireland], or

(b)makes arrangements for any other person to become a party to such an agreement,

he is guilty of an offence if he does so in the belief that aggregates levy chargeable on the aggregate in question will be evaded.

(2)Subject to sub-paragraph (3) below, a person guilty of an offence under this paragraph shall be liable, on summary conviction, to a penalty of [F29level 5 on the standard scale] [F29£20,000].

(3)In the case of any offence under this paragraph, where [F30level 5 on the standard scale] [F30the amount of £20,000 mentioned in sub-paragraph (2)] is less than three times the sum of the amounts of aggregates levy which are shown to be amounts that were or were intended to be evaded in respect of the aggregate in question, the penalty shall be the amount equal to three times that sum (instead of [F30level 5 on the standard scale] [F30the amount of £20,000 mentioned in sub-paragraph (2)] ).

(4)For the purposes of sub-paragraph (3) above the amounts of levy that were or were intended to be evaded shall be taken to include—

(a)the amount of any tax credit, and

(b)the amount of any repayment of aggregates levy,

which was, or was intended to be, obtained in circumstances where there was no entitlement to it.

(5)In determining for the purposes of sub-paragraph (3) above how much aggregates levy (in addition to any amount falling within sub-paragraph (4) above) was or was intended to be evaded, no account shall be taken of the extent (if any) to which any liability to aggregates levy of any person fell, or would have fallen, to be reduced by the amount of any tax credit or repayments of aggregates levy to which he was, or would have been, entitled.

Criminal proceedings etc.U.K.

5Sections 145 to 155 of the Customs and Excise Management Act 1979 (c. 2) (proceedings for offences, mitigation of penalties and certain other matters) shall apply in relation to offences and penalties under this Part of this Schedule as they apply in relation to offences and penalties under the customs and excise Acts.

ArrestU.K.

F316. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 2U.K. CIVIL PENALTIES

EvasionU.K.

F327. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Liability of directors etc. for civil penaltiesU.K.

F328. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Misdeclaration or neglectU.K.

F329. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Incorrect records etc evidencing claim for tax creditU.K.

[F339A(1)This paragraph applies where—

(a)a claim is made for a tax credit in such a case as is mentioned in—

(i)section 30(1)(c) of this Act (aggregate used in a prescribed industrial or agricultural process), F34...

(ii)section 30A of this Act (transitional tax credit in Northern Ireland)[F35, or

(iii)section 30B(3) of this Act (special tax credit in Northern Ireland);]

(b)a record or other document is provided to the Commissioners as evidence for the claim; and

(c)the record or document is incorrect.

(2)The person who provided the document to the Commissioners, and any person who provided it to anyone else with a view to its being used as evidence for a claim for a tax credit, shall be liable to a penalty.

(3)The amount of the penalty shall be equal to 105 per cent of the difference between—

(a)the amount of tax credit that would have been due on the claim if the record or document had been correct, and

(b)the amount (if any) of tax credit actually due on the claim.

(4)The providing of a record or other document shall not give rise to a penalty under this paragraph if the person who provided it satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for his having provided it.

(5)Where by reason of providing a record or other document—

(a)a person is convicted of an offence (whether under this Act or otherwise), F36. . .

F36(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

that person shall not by reason of the providing of the record or document be liable also to a penalty under this paragraph.]

Part 3U.K. INTERPRETATION OF SCHEDULE

10(1)References in this Schedule to obtaining a tax credit are references to bringing an amount into account as a tax credit for the purposes of aggregates levy on the basis that that amount is an amount which may be so brought into account in accordance with tax credit regulations.U.K.

(2)References in this Schedule to obtaining a repayment of aggregates levy are references to obtaining either—

(a)the payment or repayment of any amount, or

(b)the acknowledgement of a right to receive any amount,

on the basis that that amount is the amount of a repayment of aggregates levy to which there is an entitlement.

Section 29.

SCHEDULE 7U.K. AGGREGATES LEVY: INFORMATION AND EVIDENCE ETC

Provision of informationU.K.

F371. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

RecordsU.K.

2(1)The Commissioners may by regulations impose obligations to keep records on persons who are or are required to be registered and on persons who would be so required but for an exemption by virtue of regulations under section 24(4) of this Act.

(2)Regulations under this paragraph may be framed by reference to such records as may be stipulated in any notice published by the Commissioners in pursuance of the regulations and not withdrawn by a further notice.

(3)Regulations under this paragraph may—

(a)require any records kept in pursuance of the regulations to be preserved for such period, not exceeding six years, as may be specified in the regulations;

(b)authorise the Commissioners to direct that any such records need only be preserved for a shorter period than that specified in the regulations;

(c)authorise a direction to be made so as to apply generally or in such cases as the Commissioners may stipulate.

[F38(4)A duty under regulations under this paragraph to preserve records may be discharged—

(a)by preserving them in any form and by any means, or

(b)by preserving the information contained in them in any form and by any means,

subject to any conditions or exceptions specified in writing by the Commissioners.]

(6)Subject to sub-paragraphs (7) and (8) below, a person who fails to preserve any record in compliance with—

(a)any regulations under this paragraph, or

(b)any notice, direction or requirement given or imposed under such regulations,

shall be liable to a penalty of £250.

(7)A failure such as is mentioned in sub-paragraph (6) above shall not give rise to any penalty under that sub-paragraph if the person required to preserve the record satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the failure.

(8)Where, by reason of any such failure by any person as is mentioned in sub-paragraph (6) above—

(a)that person is convicted of an offence (whether under this Act or otherwise), or

(b)that person is assessed to a penalty under paragraph 7 of Schedule 6 to this Act (penalty for evasion) [F39or a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007 (penalties for errors)],

that person shall not by reason of that failure be liable also to a penalty under this paragraph.

(9)The Commissioners may if they think fit at any time modify or withdraw any F40... requirement F40... imposed for the purposes of this paragraph.

Evidence of records that are required to be preservedU.K.

F413. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Production of documentsU.K.

F424. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Powers in relation to documents producedU.K.

F435. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Entry and inspectionU.K.

F446. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Entry and searchU.K.

F457. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

8(1)Where, on an application by an authorised person, a justice of the peace or, in Scotland, a justice (within the meaning of section 307 of the Criminal Procedure (Scotland) Act 1995 (c. 46)) is satisfied that there are reasonable grounds for believing—

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

(b)that any recorded information (including any document of any nature at all) 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 seven days beginning with 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—

(a)in a form in which it is visible and legible; and

(b)if the authorised person wishes to remove it, in a form in which it can be removed.

(5)This paragraph is without prejudice to the preceding paragraphs of this Schedule.

Removal of documents etc.U.K.

9(1)An authorised person who removes anything in the exercise of a power conferred by or under paragraph 7 or 8 above shall, if so requested by a person showing himself—

(a)to be the occupier of premises from which it was removed, or

(b)to have had custody or control of it immediately before the removal,

provide that person with a record of what he removed.

(2)The authorised person shall provide the record within a reasonable time from the making of the request for it.

(3)Subject to sub-paragraph (7) below, if a request for permission to be allowed access to anything which—

(a)has been removed by an authorised person, and

(b)is retained by the Commissioners for the purposes of investigating an offence,

is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed, or by someone acting on behalf of such a person, the officer shall allow the person who made the request access to it under the supervision of an authorised person.

(4)Subject to sub-paragraph (7) below, if a request for a photograph or copy of any such thing is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed, or by someone acting on behalf of such a person, the officer shall—

(a)allow the person who made the request access to it under the supervision of an authorised person for the purpose of photographing it or copying it; or

(b)photograph or copy it, or cause it to be photographed or copied.

(5)Subject to sub-paragraph (7) below, where anything is photographed or copied under sub-paragraph (4)(b) above, the officer shall supply the photograph or copy, or cause it to be supplied, to the person who made the request.

(6)The photograph or copy shall be supplied within a reasonable time from the making of the request.

(7)There is no duty under this paragraph to allow access to anything, or to supply a photograph or copy of anything, if the officer in overall charge of the investigation for the purposes of which it was removed has reasonable grounds for believing that to do so would prejudice—

(a)that investigation;

(b)the investigation of an offence other than the offence for the purposes of the investigation of which the thing was removed; or

(c)any criminal proceedings which may be brought as a result of the investigation of which he is in charge or any such investigation as is mentioned in paragraph (b) above.

(8)Any reference in this paragraph to the officer in overall charge of the investigation is a reference to the person whose name and address are endorsed on the warrant concerned as being the officer so in charge.

Enforcement of paragraph 9U.K.

10(1)Where, on an application made as mentioned in sub-paragraph (2) below, the appropriate judicial authority is satisfied that a person has failed to comply with a requirement imposed by paragraph 9 above, the authority may order that person to comply with the requirement within such time and in such manner as may be specified in the order.

(2)An application under sub-paragraph (1) above shall not be made except—

(a)in the case of a failure to comply with any of the requirements imposed by paragraph 9(1) and (2) above—

(i)by the occupier of the premises from which the thing in question was removed; or

(ii)by the person who had custody or control of it immediately before it was so removed;

(b)in any other case, by the person who had such custody or control.

(3)In this paragraph “the appropriate judicial authority” means—

(a)in England and Wales, a magistrates’ court;

(b)in Scotland, the sheriff;

(c)in Northern Ireland, a court of summary jurisdiction, as defined in Article 2(2)(a) of the Magistrates’ Courts (Northern Ireland) Order 1981 (S.I. 1981/1675 (N.I. 26)) .

(4)In England and Wales and Northern Ireland, an application for an order under this paragraph shall be made by way of complaint; and sections 21 and 42(2) of the InterpretationAct (Northern Ireland) 1954 (c. 33 (N.I.)) shall apply as if any reference in those provisions to any enactment included a reference to this paragraph.

Power to take samplesU.K.

11(1)An authorised person, if it appears to him necessary for the protection of the revenue against mistake or fraud, may at any time take, from material which he has reasonable cause to believe is aggregate which is intended to be, is being, or has been subjected to exploitation in [F46England, Wales or Northern Ireland], such samples as he may require with a view to determining how the material ought to be treated, or to have been treated, for the purposes of aggregates levy.

(2)Any sample taken under this paragraph shall be disposed of in such manner as the Commissioners may direct.

Evidence by certificateU.K.

12(1)In any proceedings a certificate of the Commissioners—

(a)that a person was or was not at any time registered, [F47 or ]

(b)that any return required by regulations made under section 25 of this Act has not been made or had not been made at any time,

F48(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F49(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

shall be evidence or, in Scotland, sufficient evidence of that fact.

(2)A photograph of any document provided to the Commissioners for the purposes of this Part of this Act and certified by them to be such a photograph shall be admissible in any proceedings, whether civil or criminal, to the same extent as the document itself.

(3)In any proceedings any document purporting to be a certificate under sub-paragraph (1) or (2) above shall be taken to be such a certificate unless the contrary is shown.

Inducements to provide informationU.K.

13(1)This paragraph applies—

(a)to any criminal proceedings against a person in respect of an offence in connection with or in relation to aggregates levy; and

(b)to any proceedings against a person for the recovery of any sum due from him in connection with or in relation to that levy.

(2)Statements made or documents produced or provided by or on behalf of a person shall not be inadmissible in any proceedings to which this paragraph applies by reason only that—

(a)a matter falling within sub-paragraph (3) or (4) below has been drawn to that person’s attention; and

(b)he was or may have been induced, as a result, to make the statements or to produce or provide the documents.

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

(a)that, in relation to aggregates levy, the Commissioners may assess an amount due by way of a civil penalty instead of instituting criminal proceedings;

(b)that it is the practice of the Commissioners (without giving any undertaking as to whether they will make such an assessment in any case) to be influenced by whether a person—

(i)has made a full confession of any dishonest conduct to which he has been a party; and

(ii)has otherwise co-operated to the full with any investigation.

(4)The matter falling within this sub-paragraph is the fact that the Commissioners or, on appeal, an appeal tribunal have power under any provision of this Part of this Act to reduce a penalty.

Disclosure of informationU.K.

14(1)Notwithstanding any obligation not to disclose information that would otherwise apply but subject to sub-paragraph (2) below, the Commissioners may disclose any information obtained or held by them in or in connection with the carrying out of their functions in relation to aggregates levy to any of the following—

(a)any Minister of the Crown;

(b)the Scottish Ministers;

(c)any Minister, within the meaning of the Northern Ireland Act 1998 (c. 47), or any Northern Ireland department;

(d)the National Assembly for Wales;

(e)the Environment Agency;

(f)the Scottish Environment Protection Agency;

(g)a mineral planning authority in England and Wales (within the meaning of the Town and Country Planning Act 1990 (c. 8));

(h)a planning authority in Scotland;

(i)a district council in Northern Ireland;

(j)an authorised officer of any person mentioned in paragraphs (a) to (i) above.

(2)Information shall not be disclosed under sub-paragraph (1) above except for the purpose of assisting a person falling within paragraphs (a) to (j) of that sub-paragraph in the performance of his duties.

(3)Notwithstanding any such obligation as is mentioned in sub-paragraph (1) above, any person mentioned in sub-paragraph (1)(a) to (j) above may disclose information—

(a)to the Commissioners, or

(b)to an authorised officer of the Commissioners,

for the purpose of assisting the Commissioners in the performance of duties in relation to aggregates levy.

(4)Information that has been disclosed to a person by virtue of this paragraph shall not be disclosed by him except—

(a)to another person to whom (instead of him) disclosure could by virtue of this paragraph have been made; or

(b)for the purpose of any proceedings connected with the operation of any provision made by or under any enactment relating to the environment or to aggregates levy.

(5)References in the preceding provisions of this paragraph to an authorised officer of any person (“the principal”) are to any person who has been designated by the principal as a person to and by whom information may be disclosed by virtue of this paragraph.

(6)Where the principal is a person falling within any of paragraphs (a) to (c) above, the principal shall notify the Commissioners in writing of the name of any person designated by the principal for the purposes of this paragraph.

(7)No charge may be made for any disclosure made by virtue of this paragraph.

(8)In this paragraph “enactment” includes an enactment contained in an Act of the Scottish Parliament or in any Northern Ireland legislation.

Interpretation of ScheduleU.K.

15In this Schedule—

• “authorised person” means any person acting under the authority of the Commissioners;

• “connected activities”, in relation to the exploitation of aggregate in [F50England, Wales or Northern Ireland], means any activities carried out—

  (a)

  for purposes connected with the carrying out of any such exploitation or with any transaction involving the carrying out of any such exploitation; or

  (b)

  for the purposes of, in connection with or in relation to the carrying on of any business involving any such exploitation.

Section 32.

SCHEDULE 8U.K. AGGREGATES LEVY: REPAYMENTS AND CREDITS

Reimbursement arrangementsU.K.

1(1)The Commissioners may by regulations make provision for reimbursement arrangements made by any person to be disregarded for the purposes of section 32(2) of this Act except where the arrangements—

(a)contain such provision as may be required by the regulations; and

(b)are supported by such undertakings to comply with the provisions of the arrangements as may be required by the regulations to be given to the Commissioners.

(2)In this paragraph “reimbursement arrangements” means any arrangements for the purposes of a claim to a repayment of aggregates levy which—

(a)are made by any person for the purpose of securing that he is not unjustly enriched by the repayment of any amount in pursuance of the claim; and

(b)provide for the reimbursement of persons who have for practical purposes borne the whole or any part of the cost of the original payment of that amount to the Commissioners.

(3)Without prejudice to the generality of sub-paragraph (1) above, the provision that may be required by regulations under this paragraph to be contained in reimbursement arrangements includes—

(a)provision requiring a reimbursement for which the arrangements provide to be made within such period after the repayment to which it relates as may be specified in the regulations;

(b)provision for the repayment of amounts to the Commissioners where those amounts are not reimbursed in accordance with the arrangements;

(c)provision requiring interest paid by the Commissioners on any amount repaid by them to be treated in the same way as that amount for the purposes of any requirement under the arrangements to make reimbursement or to repay the Commissioners;

(d)provision requiring such records relating to the carrying out of the arrangements as may be described in the regulations to be kept and produced to the Commissioners, or to an officer of theirs.

(4)Regulations under this paragraph may impose obligations on such persons as may be specified in the regulations—

(a)to make the repayments to the Commissioners that they are required to make in pursuance of any provisions contained in any reimbursement arrangements by virtue of sub-paragraph (3)(b) or (c) above;

(b)to comply with any requirements contained in any such arrangements by virtue of sub-paragraph (3)(d) above.

(5)Regulations under this paragraph may make provision for the form and manner in which, and the times at which, undertakings are to be given to the Commissioners in accordance with the regulations; and any such provision may allow for those matters to be determined by the Commissioners in accordance with the regulations.

Interest payable by the CommissionersU.K.

2(1)Where, due to an error on the part of the Commissioners, a person—

(a)has paid to them by way of aggregates levy an amount which was not levy due and which they are in consequence liable to repay to him,

(b)has failed to claim a repayment of levy to which he was entitled, under tax credit regulations, in respect of any tax credits, or

(c)has suffered delay in receiving payment of an amount due to him from them in connection with aggregates levy,

then, if and to the extent that they would not be liable to do so apart from this paragraph, they shall (subject to the following provisions of this paragraph) pay interest to him on that amount for the applicable period.

(2)In sub-paragraph (1) above, the reference in paragraph (a) to an amount which the Commissioners are liable to repay in consequence of the making of a payment that was not due is a reference to only so much of that amount as is the subject of a claim that the Commissioners are required to satisfy or have satisfied.

(3)In that sub-paragraph the amounts referred to in paragraph (c)—

(a)do not include any amount payable under this paragraph;

(b)do not include the amount of any interest for which provision is made by virtue of section 30(3)(f) [F51or 30B(6)(d);]

[F52(ba)do not include the amount of any tax credit to which a person is entitled by virtue of section 30B(1); but]

(c)do include any amount due (in respect of an adjustment of overpaid interest) by way of a repayment under—

(i)paragraph 11(3) of Schedule 5 to this Act; or

(ii)paragraph 6(3) of Schedule 10 to this Act.

(4)The applicable period, in a case falling within sub-paragraph (1)(a) above, is the period—

(a)beginning with the date on which the payment is received by the Commissioners; and

(b)ending with the date on which they authorise payment of the amount on which the interest is payable.

(5)The applicable period, in a case falling within sub-paragraph (1)(b) or (c) above, is the period—

(a)beginning with the date on which, apart from the error, the Commissioners might reasonably have been expected to authorise payment of the amount on which the interest is payable; and

(b)ending with the date on which they in fact authorise payment of that amount.

(6)In determining the applicable period for the purposes of this paragraph there shall be left out of account any period by which the Commissioners’ authorisation of the payment of interest is delayed by circumstances beyond their control.

(7)The reference in sub-paragraph (6) above to a period by which the Commissioners’ authorisation of the payment of interest is delayed by circumstances beyond their control includes, in particular, any period which is referable to—

(a)any unreasonable delay in the making of any claim for the payment or repayment of the amount on which interest is claimed;

(b)any failure by any person to provide the Commissioners—

(i)at or before the time of the making of a claim, or

(ii)subsequently in response to a request for information by the Commissioners,

with all the information required by them to enable the existence and amount of the claimant’s entitlement to a payment or repayment to be determined; and

(c)the making, as part of or in association with any claim for the payment or repayment of the amount on which interest is claimed, of a claim to anything to which the claimant was not entitled.

(8)In determining for the purposes of sub-paragraph (7) above whether any period of delay is referable to a failure by any person to provide information in response to a request by the Commissioners, there shall be taken to be so referable, except so far as may be provided for by regulations, any period which—

(a)begins with the date on which the Commissioners require that person to provide information which they reasonably consider relevant to the matter to be determined; and

(b)ends with the earliest date on which it would be reasonable for the Commissioners to conclude—

(i)that they have received a complete answer to their request for information;

(ii)that they have received all that they need in answer to that request; or

(iii)that it is unnecessary for them to be provided with any information in answer to that request.

(9)The Commissioners shall not be liable to pay interest under this paragraph except on the making of a claim for that purpose.

(10)A claim under this paragraph must be in writing and must be made not more than [F534 years] after the end of the applicable period to which it relates.

(11)References in this paragraph—

(a)to receiving payment of any amount from the Commissioners, or

(b)to the authorisation by the Commissioners of the payment of any amount,

include references to the discharge by way of set-off (whether in accordance with regulations under paragraph 9 or 10 below or otherwise) of the Commissioners’ liability to pay that amount.

(12)Interest under this paragraph shall be payable at the rate applicable under section 197 of the Finance Act 1996 (c. 8).

Assessment for excessive repaymentU.K.

3(1)Where—

(a)any amount has been paid at any time to any person by way of a repayment of aggregates levy, and

(b)the amount paid exceeded the amount which the Commissioners were liable at that time to repay to that person,

the Commissioners may, to the best of their judgement, assess the excess paid to that person and notify it to him.

(2)Where—

(a)any amount has been paid to any person by way of repayment of levy,

(b)the repayment is in respect of a tax credit the entitlement to which arose in a case falling within section 30(1)(e) (bad debts),

(c)the whole or any part of the credit is withdrawn on account of the payment of the whole or any part of the debt taken as bad,

(d)the amount of the repayment exceeded the amount which the Commissioners would have been liable to repay had the withdrawal taken place before the determination of the amount of the repayment,

the Commissioners may, to the best of their judgement, assess the excess repaid to that person and notify it to him.

(3)Where any person is liable to pay any amount to the Commissioners in pursuance of an obligation imposed by virtue of paragraph 1(4)(a) above, the Commissioners may, to the best of their judgement, assess the amount due from that person and notify it to him.

(4)Subject to sub-paragraph (5) below, where—

(a)an assessment is made on any person under this paragraph in respect of a repayment of levy made in relation to any accounting period, and

(b)the Commissioners have power under Schedule 5 to this Act to make an assessment on that person to an amount of aggregates levy due from that person for that period,

the assessments may be combined and notified to him as one assessment.

(5)A notice of a combined assessment under sub-paragraph (4) above must separately identify the amount being assessed in respect of repayments of levy.

Assessment for overpayments of interestU.K.

4Where—

(a)any amount has been paid to any person by way of interest under paragraph 2 above, but

(b)that person was not entitled to that amount under that paragraph,

the Commissioners may, to the best of their judgement, assess the amount so paid to which that person was not entitled and notify it to him.

Assessments under paragraphs 3 and 4U.K.

5(1)An assessment under paragraph 3 or 4 above shall not be made more than two years after the time when evidence of facts sufficient in the opinion of the Commissioners to justify the making of the assessment comes to the knowledge of the Commissioners.

(2)Where an amount has been assessed and notified to any person under paragraph 3 or 4 above, it shall be recoverable as if it were aggregates levy due from him.

(3)Sub-paragraph (2) above does not have effect if, or to the extent that, the assessment in question has been withdrawn or reduced.

Interest on amounts assessedU.K.

6(1)Where an assessment is made under paragraph 3 or 4 above, the whole of the amount assessed shall carry interest, for the period specified in sub-paragraph (2) below, as follows—

(a)so much of that amount as represents the amount of a tax credit claimed by a person who was not entitled to it shall carry penalty interest; and

(b)so much of that amount as does not carry penalty interest under paragraph (a) above shall carry interest at the rate applicable under section 197 of the Finance Act 1996 (c. 8).

(2)That period is the period which—

(a)begins with the day after that on which the person is notified of the assessment; and

(b)ends with the day before that on which payment is made of the amount assessed.

(3)Interest under this paragraph shall be paid without any deduction of income tax.

(4)Penalty interest under this paragraph shall be compound interest calculated—

(a)at the penalty rate; and

(b)with monthly rests.

(5)For this purpose the penalty rate is the rate found by—

(a)taking the rate applicable under section 197 of the Finance Act 1996 for the purposes of sub-paragraph (1)(b) above; and

(b)adding 10 percentage points to that rate.

(6)Where a person is liable under this paragraph to pay any penalty interest, the Commissioners or, on appeal, an appeal tribunal may reduce the amount payable to such amount (including nil) as they think proper.

(7)Subject to sub-paragraph (8) below, where the person concerned satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the conduct giving rise to the liability to pay penalty interest, that is a matter which (among other things) may be taken into account under sub-paragraph (6) above.

(8)In determining whether there is a reasonable excuse for the purposes of sub-paragraph (7) above, no account shall be taken of any of the following matters, that is to say—

(a)the insufficiency of the funds available to any person for paying any aggregates levy due or for paying the amount of the interest;

(b)the fact that there has, in the case in question or in that case taken with any other cases, been no or no significant loss of aggregates levy;

(c)the fact that the person liable to pay the interest or a person acting on his behalf has acted in good faith.

(9)In the case of interest reduced by the Commissioners under sub-paragraph (6) above an appeal tribunal, on an appeal relating to the interest, may cancel the whole or any part of the reduction made by the Commissioners.

Assessments to interest under paragraph 6U.K.

7(1)Where any person is liable to interest under paragraph 6 above the Commissioners may assess the amount due by way of interest and notify it to him accordingly.

(2)Without prejudice to the power to make assessments under this paragraph for later periods, the interest to which an assessment under this paragraph may relate shall be confined to interest for a period of no more than two years ending with the time when the assessment under this paragraph is made.

(3)Where an amount has been assessed and notified to any person under this paragraph it shall be recoverable as if it were aggregates levy due from him.

(4)Sub-paragraph (3) above does not have effect if, or to the extent that, the assessment in question has been withdrawn or reduced.

(5)Where an assessment is made under this paragraph to an amount of interest under paragraph 6 above—

(a)the notice of assessment shall specify a date, not later than the date of the notice of assessment, to which the amount of interest which is assessed is calculated; and

(b)if the interest continues to accrue after that date, a further assessment or further assessments may be made under this paragraph in respect of the amounts so accruing.

(6)Where—

(a)an assessment to interest is made specifying a date for the purposes of sub-paragraph (5)(a) above, and

(b)within such period as may for the purposes of this sub-paragraph have been notified by the Commissioners to the person liable for the interest, the amount on which the interest is payable is paid,

that amount shall be deemed for the purposes of any further liability to interest to have been paid on the specified date.

Supplementary assessmentsU.K.

8If it appears to the Commissioners that the amount which ought to have been assessed in an assessment under paragraph 3, 4 or 7 above exceeds the amount which was so assessed, then—

(a)under the same paragraph as that assessment was made, and

(b)on or before the last day on which that assessment could have been made,

the Commissioners may make a supplementary assessment of the amount of the excess and notify the person concerned accordingly.

Set-off of or against amounts due under this Part of this ActU.K.

9(1)The Commissioners may by regulations make provision in relation to any case where—

(a)a person is under a duty to pay to the Commissioners at any time an amount or amounts in respect of aggregates levy; and

(b)the Commissioners are under a duty to pay to that person at the same time an amount or amounts in respect of that levy or any of the other taxes under their care and management.

(2)Regulations under this paragraph may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(a) above exceeds the total of the amount or amounts mentioned in sub-paragraph (1)(b) above, the latter shall be set off against the former.

(3)Regulations under this paragraph may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(b) above exceeds the total of the amount or amounts mentioned in sub-paragraph (1)(a) above, the Commissioners may set off the latter in paying the former.

(4)Regulations under this paragraph may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(a) above is the same as the total of the amount or amounts mentioned in sub-paragraph (1)(b) above no payment need be made in respect of the former or the latter.

(5)Regulations under this paragraph may provide for any limitation on the time within which the Commissioners are entitled to take steps for recovering any amount due to them in respect of aggregates levy to be disregarded, in such cases as may be described in the regulations, in determining whether any person is under such a duty to pay as is mentioned in sub-paragraph (1)(a) above.

(6)Regulations under this paragraph may include provision treating any duty to pay mentioned in sub-paragraph (1) above as discharged accordingly.

(7)References in sub-paragraph (1) above to an amount in respect of a particular tax include references not only to an amount of tax itself but also to other amounts such as interest and penalties that are or may be recovered as if they were amounts of tax.

(8)In this paragraph “tax” includes levy or duty.

Set-off of or against other taxes and dutiesU.K.

10(1)The Commissioners may by regulations make provision in relation to any case where—

(a)a person is under a duty to pay to the Commissioners at any time an amount or amounts in respect of any tax (or taxes) under their care and management other than aggregates levy; and

(b)the Commissioners are under a duty, at the same time, to make any repayment of aggregates levy to that person or to make any other payment to him of any amount or amounts in respect of aggregates levy.

(2)Regulations under this paragraph may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(a) above exceeds the total of the amount or amounts mentioned in sub-paragraph (1)(b) above, the latter shall be set off against the former.

(3)Regulations under this paragraph may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(b) above exceeds the total of the amount or amounts mentioned in sub-paragraph (1)(a) above, the Commissioners may set off the latter in paying the former.

(4)Regulations under this paragraph may provide that if the total of the amount or amounts mentioned in sub-paragraph (1)(a) above is the same as the total of the amount or amounts mentioned in sub-paragraph (1)(b) above no payment need be made in respect of the former or the latter.

(5)Regulations under this paragraph may provide for any limitation on the time within which the Commissioners are entitled to take steps for recovering any amount due to them in respect of any of the taxes under their care and management to be disregarded, in such cases as may be described in the regulations, in determining whether any person is under such a duty to pay as is mentioned in sub-paragraph (1)(a) above.

(6)Regulations under this paragraph may include provision treating any duty to pay mentioned in sub-paragraph (1) above as discharged accordingly.

(7)References in sub-paragraph (1) above to an amount in respect of a particular tax include references not only to an amount of tax itself but also to other amounts such as interest and penalties that are or may be recovered as if they were amounts of tax.

(8)In this paragraph “tax” includes levy or duty.

Restriction on powers to provide for set-offU.K.

11(1)Regulations made under paragraph 9 or 10 above shall not require any such amount or amounts as are mentioned in sub-paragraph (1)(b) of that paragraph (“the credit”) to be set against any such amount or amounts as are mentioned in sub-paragraph (1)(a) of that paragraph (“the debit”) in any case where—

(a)an insolvency procedure has been applied to the person entitled to the credit;

(b)the credit became due after that procedure was so applied; and

(c)the liability to pay the debit either arose before that procedure was so applied or (having arisen afterwards) relates to, or to matters occurring in the course of, the carrying on of any business at times before the procedure was so applied.

(2)For the purposes of this paragraph, an insolvency procedure is applied to a person if—

(a)a bankruptcy order, winding-up order or administration order is made [F54or an administrator is appointed] in relation to that person or an award of sequestration is made on that person’s estate;

(b)that person is put into administrative receivership;

(c)that person passes a resolution for voluntary winding up;

(d)any voluntary arrangement approved in accordance with—

(i)Part 1 or 8 of the Insolvency Act 1986 (c. 45), or

(ii)Part II or Chapter II of Part VIII of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)),

comes into force in relation to that person;

(e)a deed of arrangement registered in accordance with—

F55(i). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii)Chapter I of Part VIII of that Order,

takes effect in relation to that person;

(f)F56. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(g). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(h). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(i)that person’s estate becomes vested in any other person as that person’s trustee under a trust deed (within the meaning of the Bankruptcy (Scotland) Act [F572016]).

(3)In this paragraph references, in relation to any person, to the application of an insolvency procedure to that person shall not include—

(a)the making of a bankruptcy order, winding-up orderF58... or award of sequestration [F59or the appointment of an administrator] at a time when any such arrangement or deed as is mentioned in paragraph (d), (e) or (i) of sub-paragraph (2) above is in force in relation to that person;

(b)the making of a winding-up order at any of the following times, that is to say—

[F60(i)immediately upon the appointment of an administrator in respect of the person ceasing to have effect;]

(ii)when that person is being wound up voluntarily;

(iii)when that person is in administrative receivership;

or

(c)the making of an administration order in relation to that person at any time when that person is in administrative receivership.

(4)For the purposes of this paragraph a person shall be regarded as being in administrative receivership throughout any continuous period for which (disregarding any temporary vacancy in the office of receiver) there is an administrative receiver of that person.

(5)In this paragraph—

• “administration order” means an administration order under [F61Schedule B1 to] the Insolvency Act 1986 (c. 45) or Article 21 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)) ;

• “administrative receiver” means an administrative receiver within the meaning of section 251 of that Act of 1986 or Article 5(1) of that Order of 1989.

Supplemental provisions of ScheduleU.K.

12(1)Any notification of an assessment under any provision of this Schedule to a person’s representative shall be treated for the purposes of this Part of this Act as notification to the person in relation to whom the representative acts.

(2)In this paragraph “representative”, in relation to any person, means—

(a)any of that person’s personal representatives;

(b)that person’s trustee in bankruptcy or liquidator;

(c)any person holding office as a receiver in relation to that person or any of his property;

(d)that person’s tax representative or any other person for the time being acting in a representative capacity in relation to that person.

(3)In this paragraph “trustee in bankruptcy” includes, as respects Scotland—

(a)[F62a trustee or interim trustee in the sequestration, under the Bankruptcy (Scotland) Act 2016, of a person’s estate;] and

(b)a trustee acting under a trust deed (within the meaning of that Act).

(4)The powers conferred by paragraphs 9 and 10 of this Schedule are without prejudice to any power of the Commissioners to provide by tax credit regulations for any amount to be set against another.

Section 35.

SCHEDULE 9U.K. AGGREGATES LEVY: GROUP TREATMENT

Eligibility for group treatmentU.K.

1Two or more bodies corporate are eligible to be treated as members of a group for the purposes of this Part of this Act if—

(a)each of them has an established place of business in the United Kingdom; and

(b)they are all under the same control.

Application for group treatmentU.K.

2(1)Subject to sub-paragraph (3) below, where an application is made to the Commissioners with respect to two or more bodies corporate and those bodies are all eligible to be treated as members of the same group, then, from the specified time—

(a)they shall be so treated for the purposes of this Part of this Act; and

(b)such one of them as is specified in the application shall be the representative member.

(2)Subject to sub-paragraph (3) below, where—

(a)any bodies corporate are treated as members of a group for the purposes of this Part of this Act, and

(b)an application is made to the Commissioners for the addition to the group of a body corporate that is eligible to be treated as a member of the group,

then, from the specified time, that body shall be included among the bodies so treated.

(3)The Commissioners may refuse an application under sub-paragraph (1) or (2) above if, and only if, it appears to them necessary to do so for the protection of the revenue; and an application that is refused under this sub-paragraph shall be, and be treated as always having been, ineffective.

(4)Where—

(a)it appears to the Commissioners that an application has been made for the purposes of this paragraph for a body corporate to be treated as a member of a group, but

(b)that body is not eligible to be treated as a member of that group,

the Commissioners shall give notice to the applicant that the application is ineffective.

(5)The Commissioners shall not refuse an application under sub-paragraph (3) above after the end of the period of ninety days beginning with the day on which the application is received by the Commissioners.

Modification of group treatmentU.K.

3(1)Subject to sub-paragraph (2) below, where any bodies corporate are treated as members of a group for the purposes of this Part of this Act and an application for the purpose is made to the Commissioners, then, from the specified time—

(a)a body corporate shall be excluded from the bodies so treated;

(b)one of those bodies corporate shall be substituted for another body corporate as the representative member; or

(c)the bodies corporate shall no longer be treated as members of a group.

(2)The Commissioners may refuse an application made for the purpose mentioned in sub-paragraph (1)(a) or (c) above if, and only if—

(a)the case is not one appearing to them to fall within paragraph 4(2)(a) and (b) below; and

(b)it appears to them necessary to refuse the application for the protection of the revenue.

(3)The Commissioners may refuse an application made for the purpose mentioned in sub-paragraph (1)(b) above if, and only if, it appears to them necessary to do so for the protection of the revenue.

(4)An application that is refused under this paragraph shall be, and be treated as always having been, ineffective.

(5)The specified time for the purposes of an application under sub-paragraph (1) above shall not be before the beginning of the accounting period which is current when the application is made.

Termination of group treatmentU.K.

4(1)If it appears to the Commissioners necessary to do so for the protection of the revenue, the Commissioners may, by notice given to any body corporate that is treated as a member of a group and to the representative member, terminate that treatment from such time as may be specified in the notice.

(2)Where—

(a)a body corporate is treated as a member of a group, and

(b)it appears to the Commissioners that it is not eligible to be treated as a member of that group,

they shall, by notice given to the body corporate and the representative member, terminate that treatment from such time as may be specified in the notice.

(3)Where—

(a)a body corporate ceases as from any time to be treated as a member of a group,

(b)immediately before that time that body was the representative member,

(c)there are two or more other bodies corporate which will continue after that time to be treated as members of the group, and

(d)none of those bodies corporate is substituted from that time, or from before that time, as the representative member of the group under paragraph 3(1)(b) above,

the Commissioners shall, by notice given to such one of the bodies corporate mentioned in paragraph (c) above as they think fit, substitute that body corporate as the representative member as from that time.

(4)The time specified in a notice under sub-paragraph (1) above shall not be a time before the day on which the notice is given to the representative member.

(5)Subject to sub-paragraph (6) below, the time specified in a notice under sub-paragraph (2) or (3) above may be a time before the giving of the notice.

(6)In the case of a notice given under sub-paragraph (2) above in respect of a body corporate’s having ceased to be eligible to be treated as a member of a group, the time specified in the notice shall not be before the time when it so ceased.

Applications relating to group treatmentU.K.

5An application under this Schedule with respect to any bodies corporate must be made by one of those bodies or by the person controlling them.

Notifications relating to group treatmentU.K.

6(1)Where—

(a)two or more bodies corporate are treated as members of a group for the purposes of this Part of this Act, and

(b)any of those bodies ceases to be eligible to be so treated,

the body corporate which ceases to be so eligible shall notify the Commissioners of that fact.

(2)A body corporate which is designated as representative member in relation to any other bodies corporate shall not cease to have an established place of business in the United Kingdom without first notifying the Commissioners of that fact.

(3)A body corporate which fails to comply with sub-paragraph (1) or (2) above shall be liable to a penalty of £250.

Supplemental regulations about applications and notificationsU.K.

7(1)For the purposes of any provision made by or under this Schedule for an application to be made to the Commissioners, regulations made by the Commissioners may make provision—

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

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

(c)as to the information and other particulars to be contained in or provided with any application.

(2)For those purposes the Commissioners may also by regulations impose obligations requiring a person who has made an application to notify the Commissioners if any information contained in or provided in connection with that application is or becomes inaccurate.

(3)The power under this paragraph to make regulations as to the time within which any application is to be made shall include power to authorise the Commissioners to extend the time for the making of an application.

(4)Sub-paragraphs (1) to (3) above shall apply for the purposes of any provision made by or under this Schedule for any matter to be notified to the Commissioners as they apply for the purposes of any provision so made for an application to be made to them; and for this purpose references to the making of the application shall be construed as references to the giving of the notification.

Interpretation of ScheduleU.K.

8(1)For the purposes of this Schedule two or more bodies are under the same control if—

(a)one of them controls each of the others;

(b)one person (whether a body corporate or an individual) controls all of them; or

(c)two or more individuals carrying on a business in partnership control all of them.

(2)For the purposes of this Schedule a body corporate shall be taken to control another body corporate if, and only if—

(a)it is empowered by statute to control that body’s activities; or

(b)it is that body’s holding company within the meaning of section [F631159 of and Schedule 6 to] the Companies Act [F632006] ([F64c. 46]).

(3)For the purposes of this Schedule an individual or individuals shall be taken to control a body corporate if, and only if (were he or they a company) he or they would be that body’s holding company within the meaning of [F65those provisions].

(4)In this Schedule “the specified time”, in relation to an application made under paragraph 2(1) or (2) or 3(1) above, means the beginning of such accounting period as may be specified in the application.

Section 46.

SCHEDULE 10U.K. AGGREGATES LEVY: ASSESSMENT OF CIVIL PENALTIES AND INTEREST ON THEM

PreliminaryU.K.

1(1)In this Schedule “civil penalty” means any penalty liability to which—

(a)is imposed by or under this Part of this Act; and

(b)arises otherwise than in consequence of a person’s conviction for a criminal offence.

(2)In this Schedule—

(a)references to a person’s being liable to a civil penalty include references to his being a person from whom the whole or any part of a civil penalty is recoverable by virtue of paragraph 8 of Schedule 6 to this Act; and

(b)references, in relation to a person from whom the whole or any part of a civil penalty is so recoverable, to the penalty to which he is liable are references to so much of the penalty as is recoverable from him.

(3)Any notification of an assessment under any provision of this Schedule to a person’s representative shall be treated for the purposes of this Part of this Act as notification to the person in relation to whom the representative acts.

(4)In this paragraph “representative”, in relation to any person, means—

(a)any of that person’s personal representatives;

(b)that person’s trustee in bankruptcy or liquidator;

(c)any person holding office as a receiver in relation to that person or any of his property;

(d)that person’s tax representative or any other person for the time being acting in a representative capacity in relation to that person.

(5)In this paragraph “trustee in bankruptcy” includes, as respects Scotland—

[F66(a)a trustee or interim trustee in the sequestration, under the Bankruptcy (Scotland) Act 2016, of a person’s estate;] and

(b)a trustee acting under a trust deed (within the meaning of that Act).

Assessments to penalties etc.U.K.

2(1)Where a person is liable to a civil penalty, the Commissioners may assess the amount due by way of penalty and notify it to him accordingly.

(2)If, where an assessment has been notified to any person under sub-paragraph (1) above or this sub-paragraph, it appears to the Commissioners that the amount which ought to have been assessed exceeds the amount that has already been assessed, the Commissioners may make a supplementary assessment of the amount of the excess and notify that person accordingly.

(3)The fact that any conduct giving rise to a civil penalty may have ceased before an assessment is made under this paragraph shall not affect the power of the Commissioners to make such an assessment.

(4)Where an amount has been assessed and notified to any person under this paragraph, it shall be recoverable as if it were aggregates levy due from him.

(5)Sub-paragraph (4) above—

(a)shall not apply so as to require any interest to be payable on a penalty otherwise than in accordance with this Schedule; and

(b)shall not have effect if, or to the extent that, the assessment in question has been withdrawn or reduced.

(6)Subject to sub-paragraph (7) below, where a person—

(a)is assessed under this paragraph to an amount due by way of a penalty, and

(b)is also assessed under any one or more provisions of Schedule 5 to this Act for an accounting period to which the conduct attracting the penalty is referable,

the assessments may be combined and notified to him as one assessment.

(7)A notice of a combined assessment under sub-paragraph (6) above must separately identify the penalty being assessed.

(8)The power to make an assessment under this paragraph is subject to paragraph 8(4) of Schedule 6 to this Act.

Further assessments to daily penaltiesU.K.

3(1)This paragraph applies where an assessment is made under paragraph 2 above to an amount of a civil penalty to which any person is liable—

(a)under paragraph 1(3) of Schedule 7 to this Act (failure to provide information); or

(b)under paragraph 4(4) of that Schedule (failure to produce a document).

(2)The notice of assessment shall specify a time, not later than the end of the day of the giving of the notice of assessment, to which the amount of any daily penalty is calculated.

(3)For the purposes of sub-paragraph (2) above “daily penalty” means—

(a)in a case within sub-paragraph (1)(a) above, a penalty imposed by virtue of paragraph 1(3)(b) of Schedule 7 to this Act; and

(b)in a case within sub-paragraph (1)(b) above, a penalty imposed by virtue of paragraph 4(4)(b) of that Schedule.

(4)If further penalties accrue in respect of a continuing failure after that date to provide the information or, as the case may be, produce the document, a further assessment or further assessments may be made under paragraph 2 above in respect of the amounts so accruing.

(5)Where—

(a)an assessment to a civil penalty is made specifying a date for the purposes of sub-paragraph (2) above, and

(b)the failure in question is remedied within such period as may for the purposes of this sub-paragraph have been notified by the Commissioners to the person liable for the penalty,

the failure shall be deemed for the purposes of any further liability to civil penalties to have been remedied on the specified date.

Time limits on penalty assessmentsU.K.

4(1)Subject to sub-paragraphs (2) and (3) below, an assessment under paragraph 2 above to a civil penalty shall not be made more than [F674 years] after the conduct to which the penalty relates.

[F68(2)An assessment of a person to a civil penalty in a case involving a loss of aggregates levy—

(a)brought about deliberately by the person (or by another person acting on that person's behalf), or

(b)attributable to a failure by the person to comply with an obligation under section 24(2) or paragraph 1 of Schedule 4,

may be made at any time not more than 20 years after the conduct to which the penalty relates (subject to sub-paragraph (3)).

(2A)In sub-paragraph (2)(a) the reference to a loss brought about deliberately by the person includes a loss brought about as a result of a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by or on behalf of that person.]

(3)Where, after a person’s death, the Commissioners propose to assess an amount of a civil penalty due by reason of some conduct of the deceased—

(a)the assessment shall not be made more than [F694 years] after the death; F70...

F70(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Penalty interest on unpaid penaltiesU.K.

5(1)Subject to sub-paragraph (2) below, where the Commissioners make an assessment under paragraph 2 above of any civil penalty to which a person is liable the amount of that penalty shall carry penalty interest for the period which—

(a)begins with the day on which the assessment is notified to the person on whom the assessment is made; and

(b)ends with the day before the day on which the assessed penalty is paid.

(2)Where—

(a)the Commissioners make an assessment under paragraph 2 above of an amount of any civil penalty to which any person is liable,

(b)they also specify a date for the purposes of this sub-paragraph, and

(c)the amount of the penalty assessed is paid on or before that date,

the amount paid before that date shall not carry penalty interest under this paragraph.

(3)Penalty interest under this paragraph shall be compound interest calculated—

(a)at the penalty rate; and

(b)with monthly rests.

(4)For this purpose the penalty rate is the rate found by—

(a)taking the rate applicable under section 197 of the Finance Act 1996 (c. 8) for the purposes of paragraph 8(3)(a) of Schedule 5 to this Act; and

(b)adding 10 percentage points to that rate.

(5)Where a person is liable under this paragraph to pay any penalty interest, the Commissioners or, on appeal, an appeal tribunal may reduce the amount payable to such amount (including nil) as they think proper.

(6)Subject to sub-paragraph (7) below, where the person concerned satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the conduct giving rise to the liability to pay penalty interest, that is a matter which (among other things) may be taken into account under sub-paragraph (5) above.

(7)In determining whether there is a reasonable excuse for the purposes of sub-paragraph (6) above, no account shall be taken of any of the following matters, that is to say—

(a)the insufficiency of the funds available to any person for paying any aggregates levy or penalty due or for paying the amount of the interest;

(b)the fact that there has, in the case in question or in that case taken with any other cases, been no or no significant loss of aggregates levy;

(c)the fact that the person liable to pay the interest or a person acting on his behalf has acted in good faith.

(8)In the case of interest reduced by the Commissioners under sub-paragraph (5) above, an appeal tribunal, on an appeal relating to the interest, may cancel the whole or any part of the reduction made by the Commissioners.

Supplemental provisions about interestU.K.

6(1)Interest under paragraph 5 above shall be paid without any deduction of income tax.

(2)Sub-paragraph (3) below applies where—

(a)an amount carries interest under paragraph 5 above (or would do so apart from that sub-paragraph); and

(b)all or part of the amount turns out not to be due.

(3)In such a case—

(a)the amount or part that turns out not to be due shall not carry interest under paragraph 5 above and shall be treated as never having done so; and

(b)all such adjustments as are reasonable shall be made, including (subject to section 32 of, and Schedule 8 to, this Act) adjustments by way of repayment.

Assessments to penalty interest on unpaid penaltiesU.K.

7(1)Where a person is liable for interest under paragraph 5 above, the Commissioners may assess the amount due by way of interest and notify it to him accordingly.

(2)If, where an assessment has been notified to any person under sub-paragraph (1) above or this sub-paragraph, it appears to the Commissioners that the amount which ought to have been assessed exceeds the amount that has already been assessed, the Commissioners may make a supplementary assessment of the amount of the excess and notify that person accordingly.

(3)Where an amount has been assessed and notified to any person under this paragraph, it shall be recoverable as if it were aggregates levy due from him.

(4)Sub-paragraph (3) above—

(a)shall not apply so as to require any interest to be payable on interest (except in so far as it falls to be compounded in accordance with paragraph 5(3) above); and

(b)shall not have effect if, or to the extent that, the assessment in question has been withdrawn or reduced.

(5)Paragraph 4 above shall apply in relation to assessments under this paragraph as if any assessment to interest on a penalty were an assessment under paragraph 2 above to the penalty in question.

(6)Subject to sub-paragraph (7) below, where a person—

(a)is assessed under this paragraph to an amount due by way of any interest on a penalty, and

(b)is also assessed under any one or more provisions of Schedule 5 to this Act for the accounting period to which the conduct attracting the penalty is referable,

the assessments may be combined and notified to him as one assessment.

(7)A notice of a combined assessment under sub-paragraph (6) above must separately identify the interest being assessed.

Further assessments to interest on penaltiesU.K.

8(1)Where an assessment is made under paragraph 7 above to an amount of penalty interest under paragraph 5 above—

(a)the notice of assessment shall specify a date, not later than the date of the notice of assessment, to which the amount of interest which is assessed is calculated; and

(b)if the interest continues to accrue after that date, a further assessment or further assessments may be made under paragraph 7 above in respect of the amounts so accruing.

(2)Where—

(a)an assessment to penalty interest is made specifying a date for the purposes of sub-paragraph (1)(a) above, and

(b)within such period as may for the purposes of this sub-paragraph have been notified by the Commissioners to the person liable for the interest, the amount on which the interest is payable is paid,

that amount shall be deemed for the purposes of any further liability to interest to have been paid on the specified date.

Section 53.

F71SCHEDULE 11U.K. CHILDREN’S TAX CREDIT: BABY RATE: SUPPLEMENTARY

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

Section 57.

SCHEDULE 12U.K. MILEAGE ALLOWANCES

F72Part 1U.K. NEW SCHEDULE 12AA TO THE TAXES ACT 1988

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Part 2U.K. CONSEQUENTIAL AMENDMENTS

The Taxes Act 1988U.K.

F731. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F732U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F733U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F734U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F735U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F736U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F737U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F738U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F739U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7310U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11U.K.In section 578A(1) of that Act (deductions for expenditure on car hire)—

(a)after paragraph (a) insert “ or ”; and

(b)omit paragraph (c) and the word “or” immediately preceding it.

F7412U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7413U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7414U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7415U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Finance Act 2000 (c. 17)U.K.

F7416. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 61.

F75SCHEDULE 13U.K. EMPLOYEE SHARE OWNERSHIP PLANS: AMENDMENTS

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Section 62.

F76SCHEDULE 14U.K. ENTERPRISE MANAGEMENT INCENTIVES: AMENDMENTS

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Section 63.

SCHEDULE 15U.K. ENTERPRISE INVESTMENT SCHEME: AMENDMENTS

F77Part 1U.K. INCOME TAX RELIEF

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Part 2U.K. POSTPONEMENT OF CHARGEABLE GAIN ON REINVESTMENT

IntroductoryU.K.

25Schedule 5B to the Taxation of Chargeable Gains Act 1992 (c. 12) is amended in accordance with this Part.

Requirement as to the money raisedU.K.

F7826. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7827U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7828U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Designated periodU.K.

29In paragraph 3(1) (chargeable events) in both paragraph (c) and paragraph (d) for “within the designated period” substitute “ before the termination date relating to those shares ”.

Value received by investorU.K.

30(1)In paragraph 13 (value received by investor) in sub-paragraph (1) after “any value” insert “ (other than insignificant value) ”.

(2)In that sub-paragraph for “designated period” substitute “ period of restriction ”.

(3)After that sub-paragraph insert—

“(1A)This paragraph is subject to paragraph 13B below.

(1B)Where—

(a)the individual who subscribes for the shares receives value (“the relevant receipt”) from the company during the period of restriction,

(b)the individual has received from the company one or more receipts of insignificant value at a time or times—

(i)during that period, but

(ii)not later than the time of the relevant receipt, and

(c)the aggregate amount of the value of the receipts within paragraphs (a) and (b) above is not an amount of insignificant value,

the individual shall be treated for the purposes of this Schedule as if the relevant receipt had been a receipt of an amount of value equal to the aggregate amount.

For this purpose a receipt does not fall within paragraph (b) above if it has previously been aggregated under this sub-paragraph.”.

(4)Omit sub-paragraph (4) of that paragraph (certain payments etc. received on a winding up or dissolution treated as receipts of value).

(5)In sub-paragraph (10) of that paragraph (interpretation of provisions applying to paragraph 13) after “this paragraph” insert “ and paragraph 13A(1) below ”.

(6)After sub-paragraph (11) of that paragraph insert—

“(12)In paragraphs 13A to 13C below (except paragraph 13C(4))—

(a)references to “the shares” shall be construed in accordance with sub-paragraph (1) above, and

(b)references to “the period of restriction” shall be construed as references to the period of restriction relating to the shares.”.

31U.K.After paragraph 13 insert—

“13A“Provision supplemental to paragraph 13

(1)For the purposes of paragraph 13 above, the value received by the individual in question is—

(a)in a case within sub-paragraph (2)(a), (b) or (c) of that paragraph, the amount received by the individual or, if greater, the market value of the share capital, securities or debt in question;

(b)in a case within sub-paragraph (2)(d) of that paragraph, the amount of the liability;

(c)in a case within sub-paragraph (2)(e) of that paragraph, the amount of the loan or advance reduced by the amount of any repayment made before the issue of the shares;

(d)in a case within sub-paragraph (2)(f) of that paragraph, the cost to the company of providing the benefit or facility less any consideration given for it by the individual;

(e)in a case within sub-paragraph (2)(g) or (h) of that paragraph, the difference between the market value of the asset and the consideration (if any) given for it;

(f)in a case within sub-paragraph (2)(i) of that paragraph, the amount of the payment;

(g)in a case within sub-paragraph (5) of that paragraph, the amount received by the individual or, if greater, the market value of the share capital or securities in question.

(2)In this paragraph and paragraph 13 above references to a receipt of insignificant value (however expressed) are references to a receipt of an amount of insignificant value.

This is subject to sub-paragraph (4) below.

(3)For the purposes of this paragraph and paragraph 13 above “an amount of insignificant value” means an amount of value which—

(a)does not exceed £1,000, or

(b)if it exceeds that amount, is insignificant in relation to the total amount of expenditure on the shares which is set under this Schedule against a corresponding total amount of the whole or any part of any chargeable gains.

(4)For the purposes of paragraph 13 above, if, at any time in the period—

(a)beginning one year before the shares are issued, and

(b)expiring at the end of the issue date,

arrangements are in existence which provide for the individual who subscribes for the shares to receive or to be entitled to receive, at any time in the period of restriction, any value from the company that issued the shares, no amount of value received by the individual shall be treated as a receipt of insignificant value.

(5)In sub-paragraph (4) above—

(a)any reference to the individual includes a reference to any person who, at any time in the period of restriction, is an associate of his (whether or not he is such an associate at the material time), and

(b)the reference to the company includes a reference to any person who, at any time in the period of restriction, is connected with the company (whether or not that person is so connected at the material time).

13BReceipt of replacement value

(1)Where—

(a)by reason of a receipt of value within sub-paragraph (2) (other than paragraph (b)) or sub-paragraph (5) of paragraph 13 above (“the original value”), the shares would, in the absence of this paragraph, be treated as never having been eligible shares or as ceasing to be eligible shares on the date when the value is received,

(b)the original supplier receives value (“the replacement value”) from the original recipient by reason of a qualifying receipt, and

(c)the amount of the replacement value is not less than the amount of the original value,

the receipt of the original value shall be disregarded for the purposes of paragraph 13 above.

(2)This paragraph is subject to paragraph 13C below.

(3)For the purposes of this paragraph and paragraph 13C below—

• “the original recipient” means the person who receives the original value, and

• “the original supplier” means the person from whom that value was received.

(4)A receipt of the replacement value is a qualifying receipt for the purposes of sub-paragraph (1) above if it arises—

(a)by reason of the original recipient doing one or more of the following—

(i)making a payment to the original supplier, other than a payment which falls within paragraph (c) below or to which sub-paragraph (5) below applies;

(ii)acquiring any asset from the original supplier for a consideration the amount or value of which is more than the market value of the asset;

(iii)disposing of any asset to the original supplier for no consideration or for a consideration the amount or value of which is less than the market value of the asset;

(b)where the receipt of the original value was within paragraph 13(2)(d) above, by reason of an event the effect of which is to reverse the event which constituted the receipt of the original value; or

(c)where the receipt of the original value was within paragraph 13(5) above, by reason of the original recipient repurchasing the share capital or securities in question, or (as the case may be) reacquiring the right in question, for a consideration the amount or value of which is not less than the amount of the original value.

(5)This sub-paragraph applies to—

(a)any payment for any goods, services or facilities, provided (whether in the course of a trade or otherwise) by—

(i)the original supplier, or

(ii)any other person who, at any time in the period of restriction, is an associate of, or connected with, that supplier (whether or not that person is such an associate, or so connected, at the material time),

which is reasonable in relation to the market value of those goods, services or facilities;

(b)any payment of any interest which represents no more than a reasonable commercial return on money lent to—

(i)the original recipient, or

(ii)any person who, at any time in the period of restriction, is an associate of his (whether or not he is such an associate at the material time);

(c)any payment for the acquisition of an asset which does not exceed its market value;

(d)any payment, as rent for any property occupied by—

(i)the original recipient, or

(ii)any person who, at any time in the period of restriction, is an associate of his (whether or not he is such an associate at the material time),

of an amount not exceeding a reasonable and commercial rent for the property;

(e)any payment in discharge of an ordinary trade debt (within the meaning of paragraph 13(11) above); and

(f)any payment for shares in or securities of any company in circumstances that do not fall within sub-paragraph (4)(a)(ii) above.

(6)For the purposes of this paragraph, the amount of the replacement value is—

(a)in a case within paragraph (a) of sub-paragraph (4) above, the aggregate of—

(i)the amount of any payment within sub-paragraph (i) of that paragraph, and

(ii)the difference between the market value of any asset within sub-paragraph (ii) or (iii) of that paragraph and the amount or value of the consideration (if any) received for it,

(b)in a case within sub-paragraph (4)(b) above, the same as the amount of the original value, and

(c)in a case within sub-paragraph (4)(c) above, the amount or value of the consideration received by the original supplier,

and paragraph 13A(1) above applies for the purposes of determining the amount of the original value.

(7)In this paragraph any reference to a payment to a person (however expressed) includes a reference to a payment made to him indirectly or to his order or for his benefit.

13CProvision supplemental to paragraph 13B

(1)The receipt of the replacement value by the original supplier shall be disregarded for the purposes of paragraph 13B above, as it applies in relation to the shares, to the extent to which that receipt has previously been set (under that paragraph) against any receipts of value which are, in consequence, disregarded for the purposes of paragraph 13 above as that paragraph applies in relation to those shares or any other shares subscribed for by the individual in question (“the individual”).

(2)The receipt of the replacement value by the original supplier (“the event”) shall also be disregarded for the purposes of paragraph 13B above if—

(a)the event occurs before the start of the period of restriction, or

(b)in a case where the event occurs after the time the original recipient receives the original value, it does not occur as soon after that time as is reasonably practicable in the circumstances, or

(c)where an appeal has been brought by the individual against an assessment made by virtue of paragraph 3(1)(e) above by reason of that receipt, the event occurs more than 60 days after the appeal has been finally determined.

But nothing in paragraph 13B above or this paragraph requires the replacement value to be received after the original value.

(3)Sub-paragraph (4) below applies where—

(a)the receipt of the replacement value by the original supplier is a qualifying receipt for the purposes of paragraph 13B(1) above, and

(b)the event which gives rise to the receipt is (or includes) a subscription for shares by—

(i)the individual, or

(ii)any person who, at any time in the period of restriction, is an associate of the individual, whether or not he is such an associate at the material time.

(4)Where this sub-paragraph applies, the person who subscribes for the shares shall not—

(a)be eligible for any relief under Chapter 3 of Part 7 of the Taxes Act (enterprise investment scheme: income tax relief) in relation to those shares or any other shares in the same issue, or

(b)by virtue of his subscription for those shares or any other shares in the same issue, be treated as making a qualifying investment for the purposes of this Schedule.

(5)In this paragraph “the original value” and “the replacement value” shall be construed in accordance with paragraph 13B above.”.

Value received by persons other than the investorU.K.

32(1)In paragraph 14 (value received by persons other than the investor), in sub-paragraph (1)—

(a)for “designated period” substitute “ period of restriction ”, and

(b)for “paragraph 14A” substitute “ paragraphs 14AA and 14A ”.

(2)In sub-paragraph (3) of that paragraph (repayments etc. excluded from the effects of paragraph 13(1))—

(a)in paragraph (c) after “relief” insert “ attributable to shares held by that person ”, and

(b)after paragraph (c) insert—

“or it would have the effect mentioned in paragraph (a), (b) or (c) above were it not a receipt of insignificant value for the purposes of paragraph 13 above, section 300 of the Taxes Act or paragraph 47 of Schedule 15 to the Finance Act 2000, as the case may be”.

(3)In sub-paragraph (7) of that paragraph (meaning of “subsidiary” in paragraph 14) after “this paragraph” insert “ and paragraph 14AA below ”.

Certain receipts to be disregardedU.K.

33After paragraph 14 insert—

“14AA“Insignificant repayments disregarded for purposes of paragraph 14

(1)Any repayment shall be disregarded for the purposes of paragraph 14 above if whichever is the greater of—