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Finance Act 1988 (c. 39)

(The document as of February, 2008)

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Finance Act 1988

1988 CHAPTER 39

ARRANGEMENT OF CLAUSES

Content
  1. Part I

    Customs and Excise

    1. Duties of excise: rates

      1. 1. Beer, wine, made-wine and cider.

      2. 2. Tobacco products.

      3. 3. Hydrocarbon oil.

      4. 4. Vehicles excise duty.

    2. Duties of excise: other provisions

      1. 5. Relief from excise duty on goods imported for testing etc.

      2. 6. Remission of duty in respect of spirits used for medical or scientific purposes.

      3. 7. Meaning of "sparkling" in relation to wine and made-wine.

    3. Management

      1. 8. Disclosure of information as to imports.

      2. 9. Approval and regulation of warehouses.

      3. 10. Power to search persons.

      4. 11. Time limits for arrest and proceedings.

      5. 12. Punishment of offences.

  2. Part II

    Value Added Tax

    1. Exemptions

      1. 13. Medical services and goods.

    2. Administration

      1. 14. Registration.

      2. 15. Assessment of tax due.

    3. Civil penalties

      1. 16. Serious misdeclaration or neglect resulting in understatements or overclaims.

      2. 17. Persistent misdeclaration resulting in understatements or overclaims.

      3. 18. Failures to notify and unauthorised issue of invoices.

      4. 19. Breaches of regulatory provisions.

    4. Miscellaneous

      1. 20. Repayment supplement.

      2. 21. Set-off of credits.

      3. 22. Invoices provided by recipients of goods or services.

  3. Part III

    Income Tax, Corporation Tax and Capital Gains Tax

    1. Chapter I

      General

      1. Tax rates and personal reliefs

        1. 23. Charge and basic rate of income tax for 1988-89.

        2. 24. Higher and additional rates of income tax.

        3. 25. Personal reliefs.

        4. 26. Charge and rate of corporation tax for financial year 1988.

        5. 27. Corporation tax: small companies.

        6. 28. Deduction rate for sub-contractors in construction industry.

        7. 29. Life assurance premium relief.

        8. 30. Additional relief in respect of children.

        9. 31. Non-residents' personal reliefs.

      2. Married couples

        1. 32. Abolition of aggregation of income.

        2. 33. Personal allowance and married couple's allowance.

        3. 34. Jointly held property.

        4. 35. Minor and consequential provisions.

      3. Annual payments

        1. 36. Annual payments.

        2. 37. Maintenance payments under existing obligations: 1988-89.

        3. 38. Maintenance payments under existing obligations: 1989-90 onwards.

        4. 39. Maintenance payments under existing obligations: election for new rules.

        5. 40. Provisions supplementary to sections 37 to 39.

      4. Relief for interest

        1. 41. Qualifying maximum for loans.

        2. 42. Home loans: restriction of relief.

        3. 43. Home improvement loans.

        4. 44. Loans for residence of dependent relative etc.

      5. Benefits in kind

        1. 45. Car benefits.

        2. 46. Car parking facilities.

        3. 47. Entertainment: non-cash vouchers.

        4. 48. Entertainment: credit tokens.

        5. 49. Entertainment of directors and higher-paid employees.

      6. Business expansion scheme

        1. 50. Private rented housing.

        2. 51. Restriction of relief.

        3. 52. Valuation of interests in land.

        4. 53. Approved investment funds.

      7. Pensions etc.

        1. 54. Personal pension schemes: commencement.

        2. 55. Personal pension schemes: other amendments.

        3. 64. Interpretation of sections 62 and 63.

      8. Miscellaneous

        1. 65. Commercial woodlands.

        2. 66. Company residence.

        3. 67. Seafarers: foreign earnings.

        4. 68. Priority share allocations for employees etc.

        5. 69. Share options: loans.

        6. 70. Charities: payroll deduction scheme.

        7. 71. Unit trusts: relief on certain payments.

        8. 72. Entertainment of overseas customers.

        9. 73. Consideration for certain restrictive undertakings.

        10. 74. Payments on termination of office or employment etc.

        11. 75. Premiums for leases etc.

        12. 76. Foreign dividends etc., quoted Eurobonds and recognised clearing systems.

    2. Chapter II

      Unapproved Employee Share Schemes

      1. Preliminary

        1. 77. Scope of Chapter.

      2. Charges to tax

        1. 78. Charge where restrictions removed etc.

        2. 79. Charge for shares in dependent subsidiaries.

        3. 80. Charge on special benefits.

      3. Miscellaneous

        1. 81. Changes in interest.

        2. 82. Company reorganisations etc.

        3. 83. Connected persons etc.

        4. 84. Capital gains tax.

        5. 85. Information.

      4. Supplementary

        1. 86. Meaning of "dependent subsidiary".

        2. 87. Other interpretation provisions.

        3. 88. Transitional provisions.

        4. 89. Consequential amendments.

    3. Chapter III

      Capital Allowances

      1. 90. Buildings or structures sold by exempt bodies.

      2. 91. Sales without change of control.

      3. 92. Successions to trades between connected persons.

      4. 93. Safety at sports grounds.

      5. 94. Quarantine premises.

      6. 95. Dwelling-houses let on assured tenancies.

    4. Chapter IV

      Capital Gains

      1. Re-basing to 1982

        1. 96. Assets held on 31st March 1982.

        2. 97. Deferred charges on gains before 31st March 1982.

      2. Unification of rates of tax on income and capital gains

        1. 98. Rates of capital gains tax.

        2. 99. Husband and wife.

        3. 100. Accumulation and discretionary settlements.

        4. 101. Underwriters.

        5. 102. Other special cases.

        6. 103. Commencement of sections 98 to 102.

      3. Married couples

        1. 104. Married couples.

      4. Company migration

        1. 105. Deemed disposal of assets on company ceasing to be resident in U.K.

        2. 106. Deemed disposal of assets on company ceasing to be liable to U.K. tax.

        3. 107. Postponement of charge on deemed disposal.

      5. Miscellaneous

        1. 108. Annual exempt amount for 1988-89.

        2. 109. Gains arising from certain settled property.

        3. 110. Retirement relief.

        4. 111. Dependent relative's residence.

        5. 112. Roll-over relief.

        6. 113. Indexation: building societies etc.

        7. 114. Indexation: groups and associated companies.

        8. 115. Transfers within a group.

        9. 116. Personal equity plans.

        10. 117. Definition of "investment trust".

        11. 118. Amendments of Finance Act 1985 s. 68.

    5. Chapter V

      Management

      1. Assessment

        1. 119. Current year assessments.

      2. Returns of income and gains

        1. 120. Notice of liability to income tax.

        2. 121. Notice of liability to corporation tax.

        3. 122. Notice of liability to capital gains tax.

      3. Other returns and information

        1. 123. Three year time limit.

        2. 124. Returns of fees, commissions etc.

        3. 125. Other payments and licences etc.

      4. Production of accounts, books etc.

        1. 126. Production of documents relating to a person's tax liability.

        2. 127. Production of computer records etc.

      5. Interest and penalties

        1. 128. Interest on overdue or overpaid PAYE.

        2. 129. Two or more tax-geared penalties in respect of same tax.

      6. Company migration

        1. 130. Provisions for securing payment by company of outstanding tax.

        2. 131. Penalties for failure to comply with section 130.

        3. 132. Liability of other persons for unpaid tax.

      7. Appeals etc.

        1. 133. Jurisdiction of General Commissioners.

        2. 134. General Commissioners for Northern Ireland.

        3. 135. Cases stated in Northern Ireland.

  4. Part IV

    Miscellaneous and General

    1. Inheritance tax

      1. 136. Reduction of rates.

      2. 137. Gifts to political parties.

    2. Petroleum revenue tax

      1. 138. Reduced oil allowance for certain Southern Basin and onshore fields.

      2. 139. Assets generating tariff receipts: extension of allowable expenditure.

    3. Stamp duty and stamp duty reserve tax

      1. 140. Abolition of stamp duty under the heading "Unit Trust Instrument".

      2. 141. Abolition of stamp duty on documents relating to transactions of capital companies.

      3. 142. Stamp duty: housing action trusts.

      4. 143. Stamp duty: paired shares.

      5. 144. Stamp duty reserve tax: paired shares etc.

    4. Miscellaneous

      1. 145. Building societies: change of status.

      2. 146. Post-consolidation amendments.

      3. 147. Interpretation etc.

      4. 148. Repeals.

      5. 149. Short title.

  5. Schedules:

    1. Schedule 1

      Alcoholic liquor duties.

      1. Part I

        Table of rates of duty on wine and made-wine.

      2. Part II

        Beverages of an alcoholic strength not exceeding 5.5 per cent.

    2. Schedule 2

      Vehicles excise duty.

      1. Part I

        Tables substituted in Part II of Schedule 4 to the 1971 and 1972 Acts.

      2. Part II

        Vehicles carrying or drawing exceptional loads.

    3. Schedule 3

      Married couples: minor and consequential provisions.

      1. Part I

        Amendments of the Taxes Act 1988.

      2. Part II

        Other provisions.

    4. Schedule 4

      Business expansion scheme: private rented housing.

      1. Part I

        Modifications made by section 50.

      2. Part II

        Dwelling-houses to which section 50 does not apply.

    5. Schedule 5

      Underwriters: assessment and collection of tax.

    6. Schedule 6

      Commercial woodlands.

    7. Schedule 7

      Exceptions to rule in section 66(1).

    8. Schedule 8

      Capital gains: assets held on 31st March 1982.

    9. Schedule 9

      Deferred charges on gains before 31st March 1982.

    10. Schedule 10

      Gains arising from certain settled property.

    11. Schedule 11

      Capital gains indexation: groups and associated companies.

    12. Schedule 12

      Building societies: change of status.

    13. Schedule 13

      Post-consolidation amendments.

      1. Part I

        Amendments of the Taxes Act 1988.

      2. Part II

        Amendments of other enactments.

    14. Schedule 14

      Repeals.

      1. Part I

        Customs and excise.

      2. Part II

        Vehicles excise duty.

      3. Part III

        Value added tax.

      4. Part IV

        Income and corporation tax: general.

      5. Part V

        Commercial woodlands.

      6. Part VI

        Unapproved employee share schemes.

      7. Part VII

        Capital gains: general.

      8. Part VIII

        Married couples.

      9. Part IX

        Tax appeals etc. in Northern Ireland.

      10. Part X

        Inheritance tax.

      11. Part XI

        Stamp duty.

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.

[29th July 1988]

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 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 I Customs and Excise

Duties of excise: rates

1 Beer, wine, made-wine and cider

(1) In section 36 of the [1979 c. 4.] Alcoholic Liquor Duties Act 1979 (excise duty on beer)--

(a) for "£25.80" and "£0.86" there shall be substituted "£27.00" and "£0.90" respectively; and

(b) for the words from "at the rate" onwards there shall be substituted the words "at the rate of £0.90 per hectolitre for every degree by which the original gravity of the beer exceeds 1000 degrees".

(2) In sections 42(6) and 43(4) of that Act (rates of drawback), the words "but as respects" onwards shall cease to have effect.

(3) For the Table of rates of duty in Schedule 1 to that Act (wine and made-wine) there shall be substituted the Table in Part I of Schedule 1 to this Act.

(4) In section 62(1) of that Act (excise duty on cider) for "£15.80" there shall be substituted "£17.33".

(5) That Act shall have effect subject to the amendments set out in Part II of Schedule 1 to this Act (which relate to beverages of an alcoholic strength not exceeding 5.5 per cent.).

(6) In this section--

(a) subsections (1)(a), (3) and (4) (with Part I of Schedule 1 to this Act) shall be deemed to have come into force at 6 o'clock in the evening of 15th March 1988;

(b) subsections (1)(b) and (2) shall come into force on 1st October 1988; and

(c) subsection (5) (with Part II of Schedule 1 to this Act) shall come into force on such day as the Commissioners may by order made by statutory instrument appoint;

and different days may be appointed under paragraph (c) above for different provisions or different purposes.

2 Tobacco products

(1) For the Table in Schedule 1 to the [1979 c. 7.] Tobacco Products Duty Act 1979 there shall be substituted--

" Table
1. CigarettesAn amount equal to 21 per cent. of the retail price plus £31.74 per thousand cigarettes.
2. Cigars£48.79 per kilogram.
3. Hand-rolling tobacco£51.48 per kilogram.
4. Other smoking tobacco and chewing tobacco£24.95 per kilogram. "

(2) This section shall be deemed to have come into force on 18th March 1988.

3 Hydrocarbon oil

(1) In section 6(1) of the [1979 c. 5.] Hydrocarbon Oil Duties Act 1979, for "£0.1938" (light oil) and "£0.1639" (heavy oil) there shall be substituted "£0.2044" and "£0.1729" respectively.

(2) In section 13A of that Act (rebate on unleaded petrol), for "£0.0096" there shall be substituted "£0.0202".

(3) This section shall be deemed to have come into force at 6 o'clock in the evening of 15th March 1988.

4 Vehicles excise duty

(1) The [1971 c. 10.] Vehicles (Excise) Act 1971 ("the 1971 Act") and the [1972 c. 10 (N.I.).] Vehicles (Excise) Act (Northern Ireland) 1972 ("the 1972 Act") shall be amended as follows.

(2) In Part I of Schedule 1 to each Act (annual rates of duty on motor bicycles etc.), in paragraph 2 (concession for certain bicycles first licensed before 1933 or, in Northern Ireland, 1935)--

(a) in sub-paragraph (a), for the words "for which a licence was taken out before the beginning of the year" there shall be substituted the words "constructed before"; and

(b) in sub-paragraph (b), for the words "224 pounds" there shall be substituted the words "101.6 kilograms".

(3) In Part I of Schedule 3 to each Act (annual rates of duty on tractors etc.)--

(a) in paragraph 6 (definition of "haulage vehicle"), after the words "foregoing paragraphs" there shall be inserted the words "or paragraph 8 below";

(b) at the end of sub-paragraph (2) of paragraph 8 (recovery vehicles) there shall be added " and

(e) any purpose prescribed for the purposes of this sub-paragraph " ;

(c) in sub-paragraph (3) of that paragraph, in paragraph (c), for the word "paragraph" there shall be substituted the word "sub-paragraph";

(d) after that sub-paragraph there shall be inserted--

" (4) A vehicle which is constructed or permanently adapted as mentioned in sub-paragraph (1) above shall not be a recovery vehicle if at any time the number of vehicles which it is used to recover exceeds a number specified by an order of the Secretary of State made for the purposes of this sub-paragraph.

(5) The power to make an order under sub-paragraph (4) above shall be exercisable by statutory instrument; but no such order shall be made unless a draft of it has been laid before and approved by a resolution of each House of Parliament. "

(4) In Part II of Schedule 4 to the 1971 Act (annual rates of duty on goods vehicles), for Tables A, A(1) and A(2) (rates for rigid goods vehicles having plated gross weight exceeding 12 tonnes) there shall be substituted the Tables set out in Part I of Schedule 2 to this Act.

(5) The Tables set out in Part I of Schedule 2 to this Act shall also be substituted for Tables A, A(1) and A(2) in Part II of Schedule 4 to the 1972 Act, but modified for that purpose by the substitution for any reference to a plated gross weight of a reference to a relevant maximum weight.

(6) In Part II of Schedule 5 to each Act (annual rates of duty on motor cars etc.), in column 1, for paragraph 1 (vehicles first registered before 1947) there shall be substituted--

" 1 Vehicles constructed before 1947. "

(7) The amendments of the 1971 and 1972 Acts set out in Part II of Schedule 2 to this Act shall have effect for the purpose of, and in connection with, establishing vehicles carrying or drawing exceptional loads as a class of vehicles chargeable with a specific duty of excise.

(8) Section 2(1)(c) of the 1971 Act and section 2(1)(c) and (d) of the 1972 Act (seven day licences) shall cease to have effect.

(9) Subsections (2) and (4) to (6) above shall have effect in relation to licences taken out after 15th March 1988; and subsections (7) and (8) above shall be deemed to have come into force on 1st June 1988.



Duties of excise: other provisions

5 Relief from excise duty on goods imported for testing etc

(1) After section 11 of the [1979 c. 3.] Customs and Excise Duties (General Reliefs) Act 1979 there shall be inserted--

" 11A Relief from excise duty on goods imported for testing etc

(1) The Commissioners may by order provide that, in such cases and subject to such exceptions as may be specified in the order, goods imported into the United Kingdom for the sole or main purpose--

(a) of being examined, analysed or tested; or

(b) of being used to test other goods,

shall be relieved from excise duty chargeable on importation; and any such relief may take the form either of an exemption from payment of duty or of a provision whereby the sum payable by way of duty is less than it otherwise would be.

(2) An order under this section--

(a) may make any relief for which it provides subject to conditions specified in or under the order, including conditions to be complied with after the importation of the goods to which the relief applies;

(b) may contain such incidental and supplementary provisions as the Commissioners think necessary or expedient; and

(c) may make different provision for different cases.

(3) In this section, references to excise duty include any additions to such duty by virtue of section 1 of the [1979 c. 8.] Excise Duties (Surcharges or Rebates) Act 1979. "

(2) In section 17 of that Act (statutory instruments containing orders or regulations: parliamentary procedure)--

(a) after "7" in subsection (3) and after "4" in subsection (4) there shall be inserted ", 11A"; and

(b) for "or 4" in subsection (5) there shall be substituted ", 4 or 11A".

6 Remission of duty in respect of spirits used for medical or scientific purposes

(1) For section 8 of the [1979 c. 4.] Alcoholic Liquor Duties Act 1979 there shall be substituted--

" 8 Remission of duty in respect of spirits used for medical or scientific purposes

(1) Where a person proposes to use spirits--

(a) in the manufacture or preparation of any article recognised by the Commissioners as being an article used for medical purposes; or

(b) for scientific purposes,

the Commissioners may, if they think fit and subject to such conditions as they see fit to impose, authorise that person to receive, and permit the delivery from warehouse to that person of, spirits for that use without payment of the duty chargeable thereon.

(2) If any person contravenes or fails to comply with any condition imposed under this section then, in addition to any other penalty he may have incurred, he shall be liable on summary conviction to a penalty of level 3 on the standard scale. "

(2) In section 22 of that Act (drawback on British compounds and spirits of wine), subsection (7) shall cease to have effect.

(3) In section 31(1) of that Act (restriction on delivery of immature spirits for home use), for paragraph (f) there shall be substituted--

" (f) to spirits delivered for medical or scientific purposes under section 8 above; or " .

(4) In section 33 of that Act (restrictions on use of certain goods relieved from spirits duty)--

(a) in paragraph (c) of subsection (1), for the word "repayment" there shall be substituted the word "remission";

(b) paragraph (d) of that subsection and the word "or" immediately preceding that paragraph shall cease to have effect; and

(c) in paragraph (b) of subsection (2), for the words "repaid or assumed to be repayable" there shall be substituted the word "remitted".

7 Meaning of "sparkling" in relation to wine and made-wine

In Schedule 1 to the Alcoholic Liquor Duties Act 1979 (wine and made-wine), in paragraph 1(1) under the heading "Interpretation" (meaning of "sparkling"), for the words "1 bar in excess of atmospheric pressure" there shall be substituted the words "1.5 bars in excess of atmospheric pressure".



Management

8 Disclosure of information as to imports

(1) The Commissioners may, for the purpose of supplementing the information as to imported goods which may be made available to persons other than the Commissioners, disclose information to which this section applies to such persons as they think fit.

(2) Such information may be so disclosed on such terms and conditions (including terms and conditions as to the payment of fees or charges to the Commissioners and the making of the information available to other persons) as the Commissioners think fit.

(3) This section applies to information consisting of the names and addresses of persons declared as consignees in entries of imported goods, arranged by reference to such classifications of imported goods as the Commissioners think fit.

(4) This section shall be construed as if it were contained in the [1979 c. 2.] Customs and Excise Management Act 1979.

9 Approval and regulation of warehouses

(1) In section 92(2) of the Customs and Excise Management Act 1979 (approval of warehouses), for paragraph (b) there shall be substituted--

" (b) of such other goods as the Commissioners may allow to be warehoused--

(i) for exportation or for use as stores in cases where relief from or repayment of any customs duty or other payment is conditional on their exportation or use as stores; or

(ii) for exportation or for use for a purpose referred to in a Community regulation in cases where payment of an export refund under such a regulation is conditional on their exportation or use for such a purpose, " .

(2) In section 93(2) of that Act (regulation of warehouses and warehoused goods), in paragraph (c) the words "(other than operations consisting of the mixing of spirits with wine or made-wine)" shall cease to have effect.

10 Power to search persons

(1) In subsection (1) of section 164 of the Customs and Excise Management Act 1979 (power to search persons)--

(a) after the words "person to whom this section applies" there shall be inserted the words "(referred to in this section as "the suspect")"; and

(b) for the words from "any officer" onwards there shall be substituted the words "an officer may exercise the powers conferred by subsection (2) below and, if the suspect is not under arrest, may detain him for so long as may be necessary for the exercise of those powers and (where applicable) the exercise of the rights conferred by subsection (3) below".

(2) For subsections (2) and (3) of that section there shall be substituted--

" (2) The officer may require the suspect--

(a) to permit such a search of any article which he has with him; and

(b) subject to subsection (3) below, to submit to such searches of his person, whether rub-down, strip or intimate,

as the officer may consider necessary or expedient; but no such requirement may be imposed under paragraph (b) above without the officer informing the suspect of the effect of subsection (3) below.

(3) If the suspect is required to submit to a search of his person, he may require to be taken--

(a) except in the case of a rub-down search, before a justice of the peace or a superior of the officer concerned; and

(b) in the excepted case, before such a superior;

and the justice or superior shall consider the grounds for suspicion and direct accordingly whether the suspect is to submit to the search.

(3A) A rub-down or strip search shall not be carried out except by a person of the same sex as the suspect; and an intimate search shall not be carried out except by a suitably qualified person. "

(3) After subsection (4) of that section there shall be inserted--

" (5) In this section--

  • "intimate search" means any search which involves a physical examination (that is, an examination which is more than simply a visual examination) of a person's body orifices;

  • "rub-down search" means any search which is neither an intimate search nor a strip search;

  • "strip search" means any search which is not an intimate search but which involves the removal of an article of clothing which--

    (a)

    is being worn (wholly or partly) on the trunk; and

    (b)

    is being so worn either next to the skin or next to an article of underwear;

  • "suitably qualified person" means a registered medical practitioner or a registered nurse.

(6) Notwithstanding anything in subsection (4) of section 48 of the [1987 c. 41.] Criminal Justice (Scotland) Act 1987 (detention and questioning by customs officers), detention of the suspect under subsection (1) above shall not prevent his subsequent detention under subsection (1) of that section. "

11 Time limits for arrest and proceedings

(1) In section 138(1) of the [1979 c. 2.] Customs and Excise Management Act 1979 (power to arrest within 3 years of commission of offence) for the words "3 years" there shall be substituted the words "20 years".

(2) For subsection (1) of section 147 of that Act (proceedings to be commenced within 3 years of commission of offence) there shall be substituted--

" (1) Save as expressly provided in the customs and excise Acts and notwithstanding anything in any other enactment, the following shall apply in relation to proceedings for an offence under those Acts--

(a) proceedings on indictment shall not be commenced later than 20 years from the date of the commission of the offence and may be commenced at any time within 20 years from that date; and

(b) summary proceedings shall not be commenced later than 3 years from that date and, subject to that, may be commenced at any time within 6 months from the date on which sufficient evidence to warrant the proceedings came to the knowledge of the prosecuting authority;

and in this subsection "the prosecuting authority" means the Commissioners in relation to England and Wales or Northern Ireland and the Lord Advocate in relation to Scotland. "

(3) This section has effect in relation to offences committed after the passing of this Act.

12 Punishment of offences

(1) In the following enactments (which provide for the punishment on conviction on indictment of certain offences), namely--

(a) sections 50(4)(b), 53(9)(b), 63(6)(b), 68(3)(b), 100(4)(b), 159(7)(b) and 170(3)(b) of the [1979 c. 2.] Customs and Excise Management Act 1979;

(b) sections 10(7)(b), 13(5)(b) and 14(8)(b) of the [1979 c. 5.] Hydrocarbon Oil Duties Act 1979;

(c) paragraph 16(1)(b) of Schedule 3 to the [1981 c. 63.] Betting and Gaming Duties Act 1981; and

(d) paragraph 8(1)(b) of Schedule 1 to the [1983 c. 53.] Car Tax Act 1983,

for the words "2 years" or "two years" there shall be substituted the words "7 years" or "seven years", as appropriate.

(2) For subsection (2) of section 68A of the Customs and Excise Management Act 1979 there shall be substituted--

" (2) A person guilty of an offence under this section shall be liable--

(a) on summary conviction, to a penalty of the prescribed sum or of three times the value of the goods, whichever is the greater, or to imprisonment for a term not exceeding 6 months, or to both; or

(b) on conviction on indictment, to a penalty of any amount, or to imprisonment for a term not exceeding 7 years, or to both. "

(3) For subsections (1) and (2) of section 136 of that Act there shall be substituted--

" (1) If any person, with intent to defraud Her Majesty, obtains or attempts to obtain, or does anything whereby there might be obtained by any person, any amount by way of drawback, allowance, remission or repayment of, or any rebate from, any duty in respect of any goods which--

(a) is not lawfully payable or allowable in respect thereof; or

(b) is greater than the amount so payable or allowable,

he shall be guilty of an offence under this subsection.

(1A) If any person, without such intent as is mentioned in subsection (1) above, does any of the things there mentioned, he shall be guilty of an offence under this subsection.

(2) A person guilty of an offence under subsection (1) above shall be liable--

(a) on summary conviction, to a penalty of the prescribed sum or of three times the value of the goods, whichever is the greater, or to imprisonment for a term not exceeding 6 months, or to both; or

(b) on conviction on indictment, to a penalty of any amount, or to imprisonment for a term not exceeding 7 years, or to both;

and a person guilty of an offence under subsection (1A) above shall be liable on summary conviction to a penalty of level 3 on the standard scale or three times the amount which was or might have been improperly obtained or allowed, whichever is the greater. " ;

and in subsection (3) of that section, after the words "subsection (1)" there shall be inserted the words "or (1A)".

(4) Paragraph 13 of Schedule 1 and paragraph 7 of Schedule 2 to the [1981 c. 63.] Betting and Gaming Duties Act 1981 shall each be amended as follows--

(a) in sub-paragraph (3), in paragraph (a), the words from "or, with intent" to "material particular" shall cease to have effect;

(b) after that paragraph there shall be inserted--

" (aa) in that connection, with intent to deceive, produces or makes use of any book, account, record, return or other document which is false in a material particular, or " ;

(c) in paragraph (ii) of that sub-paragraph, for the words "two years" there shall be substituted the words "the maximum term"; and

(d) after that sub-paragraph there shall be inserted--

" (4) In sub-paragraph (3) above, "the maximum term" means two years in the case of an offence under paragraph (a) and seven years in the case of an offence under paragraph (aa) or (b) of that sub-paragraph. "

(5) Paragraph 8 of Schedule 1 to the [1983 c. 53.] Car Tax Act 1983 shall be amended as follows--

(a) in paragraph (ii) of sub-paragraph (2), for the words "two years" there shall be substituted the words "the maximum term"; and

(b) after that sub-paragraph there shall be inserted--

" (2A) In sub-paragraph (2) above, "the maximum term" means seven years in the case of an offence under paragraph (a) or (c) and two years in the case of an offence under paragraph (b) of that sub-paragraph. "

(6) This section has effect in relation to offences committed after the passing of this Act.



Part II Value Added Tax

Exemptions

13 Medical services and goods

(1) In Schedule 6 to the [1983 c. 55.] Value Added Tax Act 1983 (exemptions), Group 7 (health and welfare) shall be amended as follows.

(2) For items 1, 1A and 2 there shall be substituted--

" 1 The supply of services by a person registered or enrolled in any of the following--

(a) the register of medical practitioners or the register of medical practitioners with limited registration;

(b) either of the registers of ophthalmic opticians or the register of dispensing opticians kept under the [1958 c. 32.] Opticians Act 1958 or either of the lists kept under section 4 of that Act of bodies corporate carrying on business as ophthalmic opticians or as dispensing opticians;

(c) any register kept under the [1960 c. 66.] Professions Supplementary to Medicine Act 1960;

(d) the register of qualified nurses, midwives and health visitors kept under section 10 of the [1979 c. 36.] Nurses, Midwives and Health Visitors Act 1979;

(e) the register of dispensers of hearing aids or the register of persons employing such dispensers maintained under section 2 of the [1968 c. 50.] Hearing Aid Council Act 1968.

2 The supply of any services or dental prostheses by--

(a) a person registered in the dentists' register;

(b) a person enrolled in any roll of dental auxiliaries having effect under section 45 of the [1984 c. 24.] Dentists Act 1984; or

(c) a dental technician. "

(3) In note (2), for the words "Paragraphs (a) to (f) of item 1 includes supplies" there shall be substituted the words "Paragraphs (a) to (d) of item 1 and paragraphs (a) and (b) of item 2 include supplies of services".

(4) This section shall have effect in relation to supplies made on or after 1st September 1988.



Administration

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14 Registration

(1) Schedule 1 to the [1983 c. 55.] Value Added Tax Act 1983 (registration) shall be amended in accordance with subsections (2) to (7) below.

(2) In paragraphs 1(5) and 2(3) (capital assets of business to be disregarded), after the word "goods" there shall be inserted the words "or services".

Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 | P.14

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