Finance Act 2007

Part 1U.K.Charges, rates, thresholds etc

Income taxU.K.

1Charge and rates for 2007-08U.K.

Income tax is charged for the tax year 2007-08; and for that tax year—

(a)the starting rate is 10%,

(b)the basic rate is 22%, and

(c)the higher rate is 40%.

Corporation taxU.K.

2Charge and main rates for financial year 2008U.K.

(1)Corporation tax is charged for the financial year 2008; and for that year the rate of corporation tax is—

(a)28% on profits of companies other than ring fence profits, and

(b)30% on ring fence profits of companies.

(2)In this section “ring fence profits” has the same meaning as in Chapter 5 of Part 12 of ICTA (see section 502(1) and (1A)).

F13Small companies' rates and fractions for financial year 2007U.K.

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Inheritance taxU.K.

F24Rates and rate bands for 2010-11U.K.

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Alcohol and tobaccoU.K.

5Rates of duty on alcoholic liquorU.K.

(1)The Alcoholic Liquor Duties Act 1979 (c. 4) is amended as follows.

(2)In section 36(1AA)(a) (standard rate of duty on beer), for “£13.26” substitute “ £13.71 ”.

(3)In section 62(1A) (rates of duty on cider)—

(a)in paragraph (a) (rate of duty per hectolitre in the case of sparkling cider of a strength exceeding 5.5 per cent), for “£166.70” substitute “ £172.33 ”,

(b)in paragraph (b) (rate of duty per hectolitre in the case of cider of a strength exceeding 7.5 per cent which is not sparkling cider), for “£38.43” substitute “ £39.73 ”, and

(c)in paragraph (c) (rate of duty per hectolitre in any other case), for “£25.61” substitute “ £26.48 ”.

(4)For Part 1 of the Table in Schedule 1 substitute—

“Part 1U.K.Wine and made-wine of a strength not exceeding 22 per cent

(5)The amendments made by this section are deemed to have come into force on 26th March 2007.

6Rates of tobacco products dutyU.K.

(1)For the Table in Schedule 1 to the Tobacco Products Duty Act 1979 (c. 7) substitute—

(2)The amendment made by subsection (1) is deemed to have come into force at 6 p.m. on 21st March 2007.

GamblingU.K.

7Rates of gaming dutyU.K.

(1)For the Table in section 11(2) of FA 1997 substitute—

(2)In section 11(3) of that Act, for “40 per cent” substitute “ 50 per cent ”.

(3)The amendments made by this section have effect in relation to accounting periods beginning on or after 1st April 2007.

8Remote gaming dutyU.K.

(1)Schedule 1 contains amendments of and relating to Part 2 of BGDA 1981 (gaming duties) imposing a remote gaming duty.

(2)The amendments made by Schedule 1 have effect in respect of the provision of facilities on or after a date appointed by the Commissioners for Her Majesty's Revenue and Customs by order made by statutory instrument.

9Amusement machine licence dutyU.K.

(1)Section 23 of BGDA 1981 (amount of duty payable on amusement machine licence) is amended as follows.

F3(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)After subsection (6) insert—

“(7)The Commissioners may by order substitute for a sum for the time being specified in subsection (3) such higher sum as they consider appropriate.”

F4(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

EnvironmentU.K.

10Fuel duty rates and rebatesU.K.

(1)The Hydrocarbon Oil Duties Act 1979 (c. 5) is amended as follows.

(2)In section 6(1A) (hydrocarbon oil: rates of duty)—

(a)in paragraph (a) (ultra low sulphur petrol), for “£0.4835” substitute “ £0.5035 ”,

(b)in paragraph (aa) (sulphur-free petrol), for “£0.4835” substitute “ £0.5035 ”,

(c)in paragraph (b) (light oil other than ultra low sulphur petrol and sulphur-free petrol), for “£0.5768” substitute “ £0.6007 ”,

(d)in paragraph (c) (ultra low sulphur diesel), for “£0.4835” substitute “ £0.5035 ”,

(e)in paragraph (ca) (sulphur-free diesel), for “£0.4835” substitute “ £0.5035 ”, and

(f)in paragraph (d) (heavy oil other than ultra low sulphur diesel and sulphur-free diesel), for “£0.5468” substitute “ £0.5694 ”.

(3)In section 6AA(3) (biodiesel), for “£0.2835” substitute “ £0.3035 ”.

(4)In section 6AD(3) (bioethanol), for “£0.2835” substitute “ £0.3035 ”.

(5)In section 8(3) (road fuel gas)—

(a)in paragraph (a) (natural road fuel gas), for “£0.1081” substitute “ £0.1370 ”, and

(b)in paragraph (b) (other road fuel gas), for “£0.1221” substitute “ £0.1649 ”.

(6)In section 11(1) (rebate on heavy oil)—

(a)in paragraph (a) (fuel oil), for “£0.0729” substitute “ £0.0929 ”,

(b)in paragraph (b) (gas oil which is not ultra low sulphur diesel), for “£0.0769” substitute “ £0.0969 ”, and

(c)in paragraph (ba) (ultra low sulphur diesel), for “£0.0769” substitute “ £0.0969 ”.

(7)In section 13A(1) (rebate on unleaded petrol), for “£0.0617” substitute “ £0.0642 ”.

(8)In section 14(1) (rebate on light oil for use as furnace oil), for “£0.0729” substitute “ £0.0929 ”.

(9)The amendments made by this section come into force on 1st October 2007.

11Rates of vehicle excise dutyU.K.

(1)Schedule 1 to VERA 1994 (annual rates of duty) is amended as follows.

(2)In paragraph 1 (general)—

(a)in sub-paragraph (2) (vehicle not covered elsewhere in Schedule otherwise than with engine cylinder capacity not exceeding 1,549cc), for “£175” substitute “ £180 ”, and

(b)in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£110” substitute “ £115 ”.

(3)Paragraph 1B (graduated rates for light passenger vehicles) is amended as follows.

(4)For the words from “Table A” to “date,” substitute “ the following table ”.

(5)For “, or is liable to the standard rate or the premium” substitute

“The table has effect in relation to vehicles first registered before 23rd March 2006 as if—

(a)in column (3), in the last row, “190” were substituted for “ 285 ”, and

(b)in column (4), in the last row, “205” were substituted for “ 300 or is liable to the standard ”.”.

(6)For Tables A and B substitute—

(7)For paragraphs 1D and 1E substitute—

“1D“The standard rate

“1DA vehicle is liable to the standard rate of duty if it does not qualify for the reduced rate of duty.”

(8)In paragraph 1J (light goods vehicles)—

(a)in sub-paragraph (a) (vehicle which is not lower-emission van), for “£170” substitute “ £175 ”, and

(b)in sub-paragraph (b) (lower-emission van), for “£110” substitute “ £115 ”.

(9)In paragraph 2(1) (motorcycles)—

(a)in paragraph (b) (motorbicycle and engine's cylinder capacity more than 150cc but not more than 400cc), for “£31” substitute “ £32 ”,

(b)in paragraph (c) (motorbicycle and engine's cylinder capacity more than 400cc but not more than 600cc), for “£46” substitute “ £47 ”, and

(c)in paragraph (d) (any other case), for “£62” substitute “ £64 ”.

(10)The amendments made by this section have effect in relation to licences taken out on or after 22nd March 2007.

F512Rates of air passenger dutyU.K.

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13Rates of climate change levyU.K.

(1)For the Table in paragraph 42(1) of Schedule 6 to FA 2000 substitute—

(2)The amendment made by subsection (1) has effect in relation to supplies treated as taking place on or after 1st April 2008.

14Rate of aggregates levyU.K.

(1)In section 16(4) of FA 2001 (rate of aggregates levy), for “£1.60” substitute “ £1.95 ”.

(2)The amendment made by subsection (1) has effect in relation to aggregate subjected to commercial exploitation on or after 1st April 2008.

15Rates of landfill taxU.K.

(1)Section 42 of FA 1996 (amount of landfill tax) is amended as follows.

(2)In—

(a)subsection (1)(a) (the standard rate), and

(b)subsection (2) (reference to the standard rate taken to be £2 in cases of disposals of qualifying material),

for “£21” substitute “ £24 ”.

(3)The amendments made by subsection (2) have effect in relation to disposals made (or treated as made) on or after 1st April 2007 (but before 1st April 2008).

(4)In subsection (1)(a), for “£24” substitute “ £32 ” and, in subsection (2), for “£24 were to £2” substitute “ £32 were to £2.50 ”.

(5)The amendments made by subsection (4) come into force on 1st April 2008 and have effect in relation to disposals made (or treated as made) on or after that date.

16Emissions trading: charges for allocationsU.K.

(1)The Treasury may impose charges by providing for Community tradeable emissions allowances to be allocated in return for payment.

(2)The Treasury must by regulations make provision for and in connection with allocations of allowances in return for payment.

F6(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)The regulations may make any other provision about allocations which the Treasury consider appropriate, including (in particular)—

(a)provision as to the imposition of fees, and as to the making and forfeiting of deposits, in connection with participation in allocations,

(b)provision as to the persons by whom allocations are to be conducted,

(c)provision for the [F7creation of criminal offences, or for the imposition and recovery of civil penalties,] for failure to comply with the terms of a scheme made under subsection (5),

(d)provision for and in connection with the recovery of payments due in respect of allowances allocated (including provision as to the imposition and recovery of interest and penalties), and

(e)provision conferring rights of appeal against decisions made in allocations, the forfeiting of deposits and the imposition of penalties (including provision specifying the person, court or tribunal to hear and determine appeals).

(5)The Treasury may make schemes about the conduct and terms of allocations (to have effect subject to any regulations under this section); and schemes may in particular include provision about—

(a)who may participate in allocations,

(b)the allowances to be allocated, and

(c)where and when allocations are to take place.

(6)“Community tradeable emissions allowances” are transferable allowances which—

(a)relate to the making of emissions of greenhouse gases, and

(b)are allocated as part of a system made for the purpose of implementing any [F8EU] obligation of the United Kingdom relating to such emissions;

and “greenhouse gases” means carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride.

[F9(6A)Subsection (4)(c) does not permit the creation of a criminal offence with maximum penalties in excess of the maximum penalties which an instrument under section 2(2) of the European Communities Act 1972 may provide in respect of an offence created by such an instrument.]

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

(8)A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons unless a draft of the regulations has been laid before, and approved by a resolution of, that House.