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Finance Act 2008

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CONTENTS

Finance Act 2008

2008 CHAPTER 9

PART 1

CHARGES, RATES, ALLOWANCES, RELIEFS ETC

Income tax

1. Charge and main rates for 2008-09

2. Personal allowance for those aged under 65

3. Personal allowances for those aged 65 and over

4. Basic rate limit

5. Abolition of starting and savings rates and creation of starting rate for savings

Corporation tax

6. Charge and main rates for financial year 2009

7. Small companies' rates and fractions for financial year 2008 etc

Capital gains tax

8. Rate etc

9. Entrepreneurs' relief

Inheritance tax

10. Transfer of unused nil-rate band etc

Alcohol and tobacco

11. Rates of alcoholic liquor duty

12. Rates of tobacco products duty

Fuel duties

13. Rates and rebates: simplification

14. Biodiesel and bioblend

15. Rates and rebates: increase from 1 October 2008

16. Fuel for aircraft and boats, heating oil and fuel for certain engines

Environmental taxes and duties

17. Rates of vehicle excise duty

18. Standard rate of landfill tax

19. Rates of climate change levy

20. Rate of aggregates levy

21. Carbon reduction trading scheme: charges for allocations

Gambling duties

22. Rates of gaming duty

23. Amusement machine licence duty

PART 2

INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX_GENERAL

Residence and domicile

24. Periods of residence

25. Remittance basis

Research and development

26. Rates of R&D relief and vaccine research relief

27. Qualifying expenditure: R&D relief and vaccine research relief

28. Companies in difficulty: SME R&D relief and vaccine research relief

29. Cap on R&D aid

30. Vaccine research relief: declaration about effect of relief

Venture capital schemes etc

31. Enterprise investment scheme: increase in amount of relief

32. Venture capital schemes

33. Enterprise management incentives: qualifying companies

Other business and investment measures

34. Tax credits for certain foreign distributions

35. Small companies' relief: associated companies

36. Company gains from investment life insurance contracts etc

37. Trade profits: changes in trading stock

38. Non-residents: investment managers

39. Dormant bank and building society accounts

40. Individual investment plan regulations

Offshore funds

41. Tax treatment of participants in offshore funds

42. Regulations under section 41: supplementary

Insurance companies and friendly societies

43. Insurance companies etc

44. Friendly societies

Employment matters

45. Homes outside UK owned through company etc

46. In-work and return to work credits and payments

47. Company cars: lower threshold for CO2 emissions figure

48. Van fuel benefit

49. Employment-related securities etc: deductible amounts etc

50. Employment-related securities: repeal of obsolete provisions

51. Armed forces: the Council Tax Relief

52. Greater London Authority: severance payments

Charities etc

53. Gift aid: payments to charities

54. Community investment tax relief

Leasing

55. Leases of plant or machinery

56. Sale of lessor companies etc

Double taxation arrangements

57. Double taxation relief

58. UK residents and foreign partnerships

59. UK residents and foreign enterprises

Other anti-avoidance provisions

60. Restrictions on trade loss relief for individuals

61. Non-active partners

62. Financial arrangements avoidance

63. Manufactured payments

64. Controlled foreign companies

65. Intangible fixed assets: related parties

66. Repeal of obsolete anti-avoidance provisions

Miscellaneous

67. Income of beneficiaries under settlor-interested settlements

68. Income charged at dividend upper rate

69. Payments on account of income tax

70. Allowances etc for non-resident nationals of an EEA state

PART 3

CAPITAL ALLOWANCES

Plant and machinery: qualifying expenditure

71. Thermal insulation of buildings

72. Expenditure on required fire precautions

73. Integral features

Plant and machinery: annual investment allowance

74. Annual investment allowance

Plant and machinery: first-year allowances

75. First-year allowance for small and medium-sized enterprises discontinued

76. Repeal of spent first-year allowances

77. Cars with low carbon dioxide emissions

78. Gas refuelling stations

79. First-year tax credits

Plant and machinery: writing-down allowances and pools

80. Main rate of writing down allowance

81. Small pools

82. Special rate expenditure and the special rate pool

83. Existing long-life asset expenditure treated as special rate expenditure

Industrial and agricultural buildings allowances

84. Abolition of allowances from 2011

85. Phasing out of allowances before abolition

86. Qualifying enterprise zone expenditure: transitional provision

87. Phasing out of industrial buildings allowance: anti-avoidance

Supplementary provision

88. Power to make consequential and transitional provision

Anti-avoidance

89. Balancing allowances on transfers of trade

PART 4

PENSIONS

90. Spreading of relief on indirect contributions

91. Inheritance etc of tax-relieved pension savings

92. Pension schemes: further provision

PART 5

STAMP TAXES

Stamp duty land tax

93. Zero-carbon homes

94. Notification and registration of transactions

95. Charge where consideration includes rent: 0% band

96. Withdrawal of group relief

97. Transfers of interests in property-investment partnerships

Stamp duty

98. Exemption from ad valorem stamp duty for low value transactions

99. Abolition of fixed stamp duty on certain instruments

100. Gifts inter vivos

101. Loan capital

PART 6

OIL

Petroleum revenue tax

102. Meaning of “participator”

103. Abandonment expenditure: default by participator met by former participator

104. Abandonment expenditure: deductions from ring fence income

105. Abandonment expenditure: former participator reimbursed by defaulter

106. Returns of relevant sales of oil

107. Elections for oil fields to become non-taxable

Corporation tax

108. Capital allowances: plant and machinery for use in ring fence trade

109. Capital allowances: decommissioning expenditure

110. Capital allowances: abandonment expenditure after ceasing ring fence trade

111. Losses: set off against profits of earlier accounting periods

112. Ring fence trade: no deduction for expenses of investment management

PART 7

ADMINISTRATION

CHAPTER 1

INFORMATION ETC

New information etc powers

113. Information and inspection powers

114. Computer records etc

Other measures

115. Record-keeping

116. Disclosure of tax avoidance schemes

117. Power to open or unpack containers

CHAPTER 2

TIME LIMITS FOR CLIMS AND ASSESSMENTS ETC

General

118. Time limits for assessments, claims etc

Income tax and corporation tax

119. Correction and amendment of tax returns

VAT

120. VAT: time limits for assessments of excess credits etc

121. Old VAT claims: extended time limits

CHAPTER 3

Penalties

122. Penalties for errors

123. Penalties for failure to notify etc

CHAPTER 4

APPEALS ETC

Reviews and appeals etc: general

124. HMRC decisions etc: reviews and appeals

Customs and excise decisions subject to review and appeal

125. Alcoholic liquor duties

126. Security under CEMA 1979

CHAPTER 5

PAYMENT AND ENFORCEMENT

Taking control of goods etc

127. Enforcement by taking control of goods: England and Wales

128. Summary warrant: Scotland

129. Consequential provision and commencement

Set off

130. Set-off: England and Wales and Northern Ireland

131. No set-off where insolvency procedure has been applied

132. VAT: requirement to set-off

133. Set-off etc where right to be paid a sum has been transferred

134. Retained funding bonds: tender by Commissioners

Other measures

135. Interest on unpaid tax in case of disaster etc of national significance

136. Fee for payment

137. County court proceedings

138. Certificates of debt

Supplementary

139. Interpretation of Chapter

PART 8

MISCELLANEOUS

Inheritance tax

140. Charge on termination of interest in possession where new interest acquired

141. Interest in possession settlements: extension of transitional period

Insurance premium tax

142. Tax representatives

143. Overseas insurers

Vehicle excise duty

144. Rebates

145. Offence of using or keeping unlicensed vehicle

146. Rates for new lower-emission vans

147. Not exhibiting licence: period of grace

148. Reduced pollution certificates

Climate change levy and landfill tax

149. Climate change levy: coal mine methane no longer to be renewable source

150. Climate change levy accounting documents: abolition of self-identification

151. Landfill tax credit: withdrawing approval of environmental bodies

Aviation

152. Aviation duty

153. Air passenger duty: class of travel with large seat pitch

Alternative finance arrangements

154. Stamp duty and stamp duty reserve tax: alternative finance investment bonds

155. Alternative property finance: anti-avoidance

156. Alternative finance arrangements: power to vary Chapter 5 of Part 2 of FA 2005

157. Government borrowing: alternative finance arrangements

Payments from Exchequer accounts

158. Power of Treasury to make payments

159. Payments from certain Exchequer accounts: mechanism

Other matters

160. Power to give statutory effect to concessions

161. Fuel duty: definition of “ultra low sulphur diesel”

162. Duties: abolition of disregard of fractions of penny

163. National savings

164. EU emissions trading: criminal offences

PART 9

FINAL PROVISIONS

165. Interpretation

166. Short title

Schedule 1: Abolition of starting and savings rates and creation of starting rate for savings

Part 1: Amendments of ITA 2007

Part 2: Other amendments

Part 3: Commencement

Schedule 2: Capital gains tax reform

Schedule 3: Entrepreneurs' relief

Schedule 4: Inheritance tax: transfer of nil-rate band etc

Schedule 5: Fuel duty: biodiesel and bioblend

Schedule 6: Aircraft and boat fuel, heating oil and fuel used for certain engines

Part 1: Fuel used in aircraft and boats

Part 2: Heavy oil used for heating or as fuel for certain engines

Schedule 7: Remittance basis

Part 1: Main provisions

Part 2: Non-resident companies and trusts etc

Schedule 8: Rates of research and development relief and vaccine research relief

Schedule 9: Companies in difficulty: SME R&D relief and vaccine research relief

Schedule 10: Cap on R&D aid

Part 1: Calculation of total R&D aid

Part 2: Consequential amendments

Schedule 11: Venture capital schemes

Schedule 12: Tax credit for certain foreign distributions

Part 1: The tax credit

Part 2: Consequential provision

Schedule 13: Company gains from investment life insurance contracts

Schedule 14: Company gains from investment life insurance contracts: consequential amendments etc

Schedule 15: Changes in trading stock

Part 1: Income tax

Part 2: Corporation tax

Schedule 16: Non-residents: investment managers

Part 1: Eligibility to be UK representative

Part 2: Eligibility to be agent of independent status

Part 3: Non-residents liable to tax: disregarded investment income or profits

Part 4: Commencement

Schedule 17: Insurance companies etc

Schedule 18: Friendly societies

Schedule 19: Reduction of basic rate of income tax: transitional relief for gift aid charities

Schedule 20: Leases of plant or machinery

Schedule 21: Restriction on loss relief for non-active traders

Schedule 22: Avoidance involving financial arrangements

Schedule 23: Manufactured payments: anti-avoidance

Schedule 24: Annual investment allowance

Part 1: Amendments of CAA 2001

Part 2: Amendments of other enactments

Part 3: Commencement

Schedule 25: First-year tax credits

Part 1: Amendments of CAA 2001

Part 2: Amendments of other enactments

Part 3: Commencement

Schedule 26: Special rate expenditure and the special rate pool

Part 1: Amendments of CAA 2001

Part 2: Commencement etc

Schedule 27: Abolition of allowances: consequential amendments and savings

Part 1: Consequential amendments

Part 2: Savings

Schedule 28: Inheritance of tax-relieved pension savings

Schedule 29: Further provision about pension schemes

Schedule 30: Stamp duty land tax: notification etc: consequential provision

Schedule 31: Stamp duty land tax: special provisions for property-investment partnerships

Part 1: Transfer of interest in partnership: “relevant partnership property”

Part 2: Elections in respect of interest transferred to partnership

Part 3: Transitional provision

Schedule 32: Stamp duty: abolition of fixed duty on certain instruments

Part 1: Abolition of fixed duty

Part 2: Consequential provisions and saving

Schedule 33: PRT: elections for oil fields to become non-taxable

Part 1: New Schedule 20A to FA 1993

Part 2: Other amendments

Schedule 34: Oil decommissioning expenditure: consequential amendments

Schedule 35: Set off against oil profits: minor and consequential amendments

Schedule 36: Information and inspection powers

Part 1: Powers to obtain information and documents

Part 2: Powers to inspect businesses etc

Part 3: Further powers

Part 4: Restrictions on powers

Part 5: Appeals against information notices

Part 6: Special cases

Part 7: Penalties

Part 8: Offence

Part 9: Miscellaneous provisions and interpretation

Part 10: Consequential provisions

Schedule 37: Record-keeping

Schedule 38: Disclosure of tax avoidance schemes

Schedule 39: Time limits for assessments, claims etc.

Schedule 40: Penalties: amendments of Schedule 24 to FA 2007

Schedule 41: Penalties: failure to notify and certain VAT and excise wrongdoing

Schedule 42: Alcoholic liquor duties: decisions subject to review and appeal

Schedule 43: Taking control of goods etc: consequential provision

Part 1: Consequential provision: taking control of goods

Part 2: Consequential provision: summary warrant

Schedule 44: Certificates of debt: consequential provision

Schedule 45: Vehicle excise duty: offence of using or keeping unlicensed vehicle

Schedule 46: Government borrowing: alternative finance arrangements

 

An Act to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with finance. 9

[21st July 2008]

Most Gracious Sovereign

We, Your Majesty’s most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary supplies to defray Your Majesty’s public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and to grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Part 1

Charges, rates, allowances, reliefs etc

Income tax

1 Charge and main rates for 2008-09

(1) Income tax is charged for the tax year 2008-09.

(2) For that tax year—

(a) the basic rate is 20%, and

(b) the higher rate is 40%.

2 Personal allowance for those aged under 65

(1) For the tax year 2008-09 the amount specified in—

(a) section 35 of ITA 2007, and

(b) section 257(1) of ICTA,

(personal allowance for those aged under 65) is replaced with “£6,035”.

(2) Accordingly—

(a) section 57 of ITA 2007, so far as relating to the amount specified in section 35 of that Act, and

(b) section 257C of ICTA, so far as relating to the amount specified in section 257(1) of that Act,

(indexation) do not apply for the tax year 2008-09.

(3) This section does not require a change to be made in the amounts deductible or repayable under PAYE regulations before 7 September 2008.

3 Personal allowances for those aged 65 and over

(1) For the tax year 2008-09—

(a) the amount specified in section 36(1) of ITA 2007 and section 257(2) of ICTA (personal allowance for those aged 65 to 74) is replaced with “£9,030”, and

(b) the amount specified in section 37(1) of ITA 2007 and section 257(3) of ICTA (personal allowance for those aged 75 and over) is replaced with “£9,180”.

(2) Accordingly—

(a) section 57 of ITA 2007, so far as relating to the amounts specified in sections 36(1) and 37(1) of that Act, and

(b) section 257C of ICTA, so far as relating to the amounts specified in section 257(2) and (3) of that Act,

(indexation) do not apply for the tax year 2008-09.

4 Basic rate limit

(1) In section 10 of ITA 2007 (income charged at main rates: individuals), for subsection (5) substitute—

“(5) The basic rate limit is £34,800.”

(2) The amendment made by subsection (1) has effect for the tax year 2008-09 and subsequent tax years.

(3) But until 7 September 2008 for the purpose of ascertaining the amounts deductible or repayable under PAYE regulations it may be assumed that the figure specified in section 10(5) of ITA 2007 for the tax year 2008-09 is £36,000.

5 Abolition of starting and savings rates and creation of starting rate for savings

(1) Section 6 of ITA 2007 (rates at which income tax is charged) is amended as follows.

(2) In subsection (1), omit paragraph (a).

(3) In subsection (2), omit “starting rate,”.

(4) In subsection (3), for paragraph (a) substitute—

“(a) section 7 (starting rate for savings),”.

(5) Accordingly, in the heading omit “starting rate,”.

(6) The amendments made by this section have effect for the tax year 2008-09 and subsequent tax years.

(7) Schedule 1 contains provision in connection with—

(a) the abolition of the starting rate and the savings rate, and

(b) the creation of the starting rate for savings.

Corporation tax

6 Charge and main rates for financial year 2009

(1) Corporation tax is charged for the financial year 2009.

(2) 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.

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

7 Small companies' rates and fractions for financial year 2008 etc

(1) For the financial year 2008 the small companies' rate is—

(a) 21% on profits of companies other than ring fence profits, and

(b) 19% on ring fence profits of companies.

(2) For the financial year 2008 the fraction mentioned in section 13(2) of ICTA is—

(a) 7/400ths in relation to profits of companies other than ring fence profits (“the standard fraction”), and

(b) 11/400ths in relation to ring fence profits of companies (“the ring fence fraction”).

(3) Subsections (3) to (7) of section 3 of FA 2007 (operation of section 13(2) of ICTA in relation to company profits consisting of both ring fence profits and other profits) apply in relation to profits of a company for an accounting period any part of which falls in the financial year 2008, or any subsequent financial year, as in relation to those for an accounting period any part of which falls in the financial year 2007.

(4) 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)).

Capital gains tax

8 Rate etc

(1) In TCGA 1992, for section 4 substitute—

“4 Rate of capital gains tax

The rate of capital gains tax is 18%.”

(2) Schedule 2 contains further provision for and in connection with the reform of capital gains tax.

(3) The amendment made by subsection (1) has effect for the tax year 2008-09 and subsequent tax years.

9 Entrepreneurs' relief

Schedule 3 contains provision for and in connection with entrepreneurs' relief.

Inheritance tax

10 Transfer of unused nil-rate band etc

Schedule 4 contains provisions about the transfer of unused nil-rate band between spouses and civil partners for the purposes of the charge to inheritance tax etc.

Alcohol and tobacco

11 Rates of alcoholic liquor duty

(1) ALDA 1979 is amended as follows.

(2) In section 5 (rate of duty on spirits), for “£19.56” substitute “£21.35”.

(3) In section 36(1AA)(a) (standard rate of duty on beer), for “£13.71” substitute “£14.96”.

(4) 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 “£172.33” substitute “£188.10”,

(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 “£39.73” substitute “£43.37”, and

(c) in paragraph (c) (rate of duty per hectolitre in any other case), for “£26.48” substitute “£28.90”.

(5) For the table in Schedule 1 substitute—

“TABLE OF RATES OF DUTY ON WINE AND MADE-WINE

Part 1

WINE OR MADE-WINE OF A STENGTH NOT EXCEEDING 22 PER CENT

Description of wine or made-wine Rates of duty per hectolitre

£

Wine or made-wine of a strength not exceeding 4 per cent 59.87
Wine or made-wine of a strength exceeding 4 per cent but not exceeding 5.5 per cent 82.32
Wine or made-wine of a strength exceeding 5.5 per cent but not exceeding 15 per cent and not being sparkling 194.28
Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent but less than 8.5 per cent 188.10
Sparkling wine or sparkling made-wine of a strength of 8.5 per cent or of a strength exceeding 8.5 per cent but not exceeding 15 per cent 248.85
Wine or made-wine of a strength exceeding 15 per cent but not exceeding 22 per cent 259.02

Part 2
WINE OR MADE-WINE OF A STRENGTH EXCEEDING 22 PER CENT
 
Description of wine or made-wine Rates of duty per litre of alcohol in the wine or made-wine
 £
Wine or made-wine of a strength exceeding 22 per cent 21.35”.

(6) The amendments made by this section are treated as having come into force on 17 March 2008.

12 Rates of tobacco products duty

(1) For the table in Schedule 1 to TPDA 1979 substitute—

“Table

1. Cigarettes An amount equal to 22 per cent of the retail price plus £112.07 per thousand cigarettes
2. Cigars £163.22 per kilogram
3. Hand-rolling tobacco £117.32 per kilogram
4. Other smoking tobacco and chewing tobacco £71.76 per kilogram”.

(2) The amendment made by subsection (1) is treated as having come into force at 6pm on 12 March 2008.

Fuel duties

13 Rates and rebates: simplification

(1) HODA 1979 is amended as follows.

(2) In section 1 (hydrocarbon oil), omit—

(a) subsections (3A) and (3B),

(b) in subsection (3C), “; and petrol is “leaded petrol” if it is not unleaded petrol”, and

(c) subsections (6) and (7).

(3) In section 6 (hydrocarbon oil: rates of duty), for subsection (1A) substitute—

“(1A) The rates are—

(a) £0.5035 a litre in the case of unleaded petrol,

(b) £0.6007 a litre in the case of light oil other than unleaded petrol, and

(c) £0.5035 a litre in the case of heavy oil.”

(4) In section 6AB(5) (duty on bioblend), omit the words from “of the description” to the end.

(5) In section 11(1) (rebate on heavy oil), omit—

(a) in paragraph (b), “which is not ultra low sulphur diesel”, and

(b) paragraph (ba).

(6) In section 13AA(6) (restrictions on use of rebated kerosene), omit “which is not ultra low sulphur diesel or sulphur-free diesel”.

(7) Omit section 13A (rebate on unleaded petrol).

(8) In section 20AAA(4)(a) (mixing of rebated oil), for “section 6(1A)(d)” substitute “section 6A(1A)(c)”.

(9) In section 27(1) (interpretation)—

(a) in the definition of “rebate”, omit “13A,”,

(b) omit the definitions of “sulphur-free diesel”, “sulphur-free petrol”, “ultra low sulphur diesel” and “ultra low sulphur petrol”, and

(c) for “and “leaded petrol” have” substitute “has”.

(10) In Article 21(7) of the Renewable Transport Fuel Obligations Order 2007 (S.I.2007/3072), for “sulphur-free petrol” substitute “unleaded petrol”.

(11) In consequence of this section, omit—

(a) in FA 1987, section 1(2) and (3),

(b) in FA 1997, section 7(5)(a) and (b) and (8)(b),

(c) in FA 2000, section 5(3),

(d) in FA 2001, section 2(1), and

(e) in FA 2004, section 7(2), (5) to (7) and (8)(a).

(12) The amendments made by this section are treated as having come into force on 1 April 2008.

14 Biodiesel and bioblend

Schedule 5 contains provision about biodiesel and bioblend.

15 Rates and rebates: increase from 1 October 2008

(1) HODA 1979 is amended as follows.

(2) In section 6(1A) (main rates)—

(a) in paragraph (a) (unleaded petrol), for “£0.5035” substitute “£0.5235”,

(b) in paragraph (b) (light oil other than unleaded petrol), for “£0.6007” substitute “£0.6207”, and

(c) in paragraph (c), (heavy oil), for “£0.5035” substitute “£0.5235”.

(3) In section 6AA(3) (rate of duty on biodiesel), for “£0.3035” substitute “£0.3235”.

(4) In section 6AD(3) (rate of duty on bioethanol), for “£0.3035” substitute “£0.3235”.

(5) In section 8(3) (road fuel gas)—

(a) in paragraph (a) (natural road fuel gas), for “£0.1370” substitute “£0.1660”, and

(b) in paragraph (b) (other road fuel gas), for “£0.1649” substitute “£0.2077”.

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

(a) in paragraph (a) (fuel oil), for “£0.0929” substitute “£0.0966”, and

(b) in paragraph (b) (gas oil), for “£0.0969” substitute “£0.1007”.

(7) In section 14(1) (rebate on light oil for use as furnace fuel), for “£0.0929” substitute “£0.0966”.

(8) In section 14A(2) (rebate on certain biodiesel), for “£0.0969” substitute “£0.1007”.

(9) The amendments made by this section come into force on 1 October 2008.

16 Fuel for aircraft and boats, heating oil and fuel for certain engines

(1) In section 6(1A) of HODA 1979 (main rates)—

(a) after paragraph (a) insert—

“(aa) £0.3103 a litre in the case of aviation gasoline,”, and

(b) in paragraph (b), after “petrol” insert “or aviation gasoline”.

(2) The amendments made by subsection (1) come into force on 1 November 2008.

(3) Schedule 6 contains—

(a) in Part 1, provision consequential on subsection (1) and provision about fuel used for private pleasure-flying or private pleasure craft, and

(b) in Part 2, provision about certain heavy oil used for heating or as fuel for certain engines.

Environmental taxes and duties

17 Rates of vehicle excise duty

(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 “£180” substitute “£185”, and

(b) in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£115” substitute “£120”.

(3) In paragraph 1B (graduated rates for light passenger vehicles), for the table substitute—

“Table

CO2 emissions figure Rate
(1) (2)
(3) (4)
Exceeding Not exceeding Reduced rate Standard rate
g/km g/km £ £
100 120 15 35
120 150 100 120
150 165 125 45
165 185 150 170
185 225 195 210
225 - 385 400

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

(a)in column (3), in the last row, “195” were substituted for “385”, and

(b)in column (4), in the last row, “210” were substituted for “400”.”

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

(a) in sub-paragraph (a) (vehicle which is not lower-emission van), for “£175” substitute “£180”, and

(b) in sub-paragraph (b) (lower-emission van), for “£115” substitute “£120”.

(5) In paragraph 2(1) (motorcycles)—

(a) in paragraph (b) (motorbicycle and engine’s cylinder capacity more than 150cc but not more than 400cc), for “£32” substitute “£33”,

(b) in paragraph (c) (motorbicycle and engine’s cylinder capacity more than 400cc but not more than 600cc), for “£47” substitute “£48”, and

(c) in paragraph (d) (any other case), for “£64” substitute “£66”.

(6) The amendments made by this section have effect in relation to licences taken out on or after 13 March 2008.

18 Standard rate of landfill tax

(1) In section 42(1)(a) and (2) of FA 1996 (amount of landfill tax), for “£32” substitute “£40”.

(2) The amendments made by subsection (1) come into force on 1 April 2009 and have effect in relation to disposals made (or treated as made) on or after that date.

19 Rates of climate change levy

(1) In Schedule 6 to FA 2000 (climate change levy), for the table in paragraph 42(1) substitute—

“Table

Taxable commodity supplied Rate at which levy payable if supply is not a reduced-rate supply
Electricity £0.00470 per kilowatt hour
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility £0.00164 per kilowatt hour
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state £0.01050 per kilogram
Any other taxable commodity £0.01281 per kilogram”.

(2) The amendment made by subsection (1) has effect in relation to supplies treated as taking place on or after 1 April 2009.

20 Rate of aggregates levy

(1) In section 16(4) of FA 2001 (rate of aggregates levy), for “£1.95” substitute “£2”.

(2) The amendment made by subsection (1) has effect in relation to aggregate subjected to commercial exploitation on or after 1 April 2009.

21 Carbon reduction trading scheme: charges for allocations

(1) The Treasury may impose charges by providing for carbon reduction trading scheme allowances to be allocated in return for payment.

(2) The charges may only be imposed by regulations.

(3) The regulations may make any other provision about allocations of allowances 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 the allocations,

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

(c) provision for allocations to be overseen by an independent person appointed by the Treasury,

(d) provision for the imposition and recovery of penalties for failure to comply with the terms of a scheme made under subsection (4),

(e) 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

(f) 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).

(4) 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.

(5) In this section—

“carbon reduction trading scheme allowances” means tradeable allowances that—

(a)are provided for in a relevant trading scheme, and

(b)represent the right to carry on a specified amount of activities that consist of the emission of greenhouse gas or that cause or contribute, directly or indirectly, to such emissions;

“relevant trading scheme” means a trading scheme that—

(a)is made under Part 3 of the Climate Change Act 2008,

(b)applies to persons by reference to their consumption of electricity (whether or not by reference to other matters as well), and

(c)applies only to persons who consume electricity—

(i) for business or charitable purposes, or

(ii) for the performance of functions of a public nature,

(whether or not they also consume electricity for other purposes);

“specified” means specified in the relevant trading scheme.

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

(7) A statutory instrument containing the first regulations under this section may not be made unless a draft of the regulations has been laid before, and approved by a resolution of, the House of Commons.

(8) Any other 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.

Gambling duties

22 Rates of gaming duty

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

“Table

Part of gross gaming yield Rate
The first £1,911,000 15 per cent
The next £1,317,000 20 per cent
The next £2,307,000 30 30 per cent
The next £4,869,500 40 per cent
The remainder 50 per cent”.

(2) The amendment made by subsection (1) has effect in relation to accounting periods beginning on or after 1 April 2008.

23 Amusement machine licence duty

(1) In section 23(2) of BGDA 1981 (amount of duty payable on amusement machine licence), for the table substitute—

“Table

Months for which licence granted Category A Category B1 Category B2 Category B3 Category B4 Category C
  £ £ £ £ £ £
1 455 230 180 180 165 70
2 905 450 355 355 320 135
3 1355 675 535 535 485 200
4 1805 905 710 710 645 265
5  2260  1130  890   890  805 335
6  2710  1355  1065  1065  965 400
7  3160  1580  1245  1245  1125 465
8  3610  1805  1420  1420  1290 530
9  4065  2030  1600  1600  1450 600
10  4515  2260  1775   1775 1610 665
11  4965  2485  1955  1955 1770 730
12  5160 2580  2030  2030 1840 760”.

(2) The amendment made by subsection (1) has effect in relation to cases where the application for the amusement machine licence is received by the Commissioners for Her Majesty’s Revenue and Customs after 4pm on 14 March 2008.

 
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