Finance Act 1994 (c. 9)

(The document as of February, 2008)

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Finance Act 1994

1994 CHAPTER 9

ARRANGEMENT OF SECTIONS

Content

Part I

Customs and Excise
1. Chapter I
  
  General
  1. Rates of duty
    1. 1. Wine, made-wine and cider.
    2. 2. Tobacco products.
    3. 3. Hydrocarbon oil.
    4. 4. Vehicles excise duty.
  2. Other provisions
    1. 5. Vehicles excise duty: miscellaneous provisions.
    2. 6. Gaming machine licence duty.
2. Chapter II
  
  Appeals and Penalties
  1. VAT and duties tribunals
    1. 7. VAT and duties tribunals.
  2. Civil penalties
    1. 8. Penalty for evasion of excise duty.
    2. 9. Penalties for contraventions of statutory requirements.
    3. 10. Exceptions to liability under section 9.
    4. 11. Breaches of walking possession agreements.
  3. Assessments to excise duty or to penalties
    1. 12. Assessments to excise duty.
    2. 13. Assessments to penalties.
  4. Customs and excise reviews and appeals
    1. 14. Requirement for review of a decision.
    2. 15. Review procedure.
    3. 16. Appeals to a tribunal.
  5. Supplemental provisions
    1. 17. Interpretation.
    2. 18. Consequential modifications of enactments.
    3. 19. Commencement of Chapter.
3. Chapter III
  
  Customs: Enforcement Powers
  1. 20. Interpretation, etc.
  2. 21. Requirements about keeping records.
  3. 22. Records and rules of evidence.
  4. 23. Furnishing of information and production of documents.
  5. 24. Power of entry.
  6. 25. Order for production of documents.
  7. 26. Procedure when documents are removed.
  8. 27. Failure of officer to comply with requirements under section 26.
4. Chapter IV
  
  Air Passenger Duty
  1. The duty
    1. 28. Air passenger duty.
    2. 29. Chargeable aircraft.
    3. 30. The rate of duty.
    4. 31. Passengers: exceptions.
    5. 32. Change of circumstances after ticket issued etc.
  2. Persons liable for the duty
    1. 33. Registration of aircraft operators.
    2. 34. Fiscal representatives.
    3. 35. Fiscal representatives: supplementary.
    4. 36. Security for payment of duty.
    5. 37. Handling agents.
    6. 38. Accounting for and payment of duty.
    7. 39. Schemes for simplifying operation of reliefs etc.
  3. Administration and enforcement
    1. 40. Administration and enforcement.
    2. 41. Offences.
  4. Supplementary
    1. 42. Regulations and orders.
    2. 43. Interpretation.
    3. 44. Commencement.
Part II

Value Added Tax
1. 45. Misdeclaration etc.
2. 46. Repayment supplement.
3. 47. Set-off of credits.
Part III

Insurance Premium Tax
1. The basic provisions
  1. 48. Insurance premium tax.
  2. 49. Charge to tax.
  3. 50. Chargeable amount.
  4. 51. Rate of tax.
  5. 52. Liability to pay tax.
2. Administration
  1. 53. Registration of insurers.
  2. 54. Accounting for tax and time for payment.
  3. 55. Credit.
  4. 56. Power to assess.
3. Tax representatives
  1. 57. Tax representatives.
  2. 58. Rights and duties of tax representatives.
4. Review and appeal
  1. 59. Review of Commissioners' decisions.
  2. 60. Appeals.
  3. 61. Review and appeal: commencement.
5. Miscellaneous
  1. 62. Partnership, bankruptcy, transfer of business, etc.
  2. 63. Groups of companies.
  3. 64. Information, powers, penalties, etc.
  4. 65. Liability of insured in certain cases.
  5. 66. Directions as to amounts of premiums.
  6. 67. Deemed date of receipt of certain premiums.
  7. 68. Special accounting schemes.
  8. 69. Reduced chargeable amount.
6. Supplementary
  1. 70. Interpretation: taxable insurance contracts.
  2. 71. Taxable insurance contracts: power to change definition.
  3. 72. Interpretation: premium.
  4. 73. Interpretation: other provisions.
  5. 74. Orders and regulations.
Part IV

Income Tax, Corporation Tax and Capital Gains Tax
1. Chapter I
  
  General
  1. Income tax: charge, rates and reliefs
    1. 75. Charge and rates of income tax for 1994-95.
    2. 76. Personal allowance.
    3. 77. Rate of relief to married couples etc.
    4. 78. Amount by reference to which MCA is reduced.
    5. 79. Relief for maintenance payments.
    6. 80. Limit on relief for interest.
    7. 81. Mortgage interest relief etc.
    8. 82. Relief for blind persons.
    9. 83. Medical insurance.
    10. 84. Relief for vocational training.
  2. Corporation tax charge and rate
    1. 85. Charge and rate of corporation tax for 1994.
    2. 86. Small companies.
  3. Benefits in kind
    1. 87. Car fuel.
    2. 88. Beneficial loan arrangements.
    3. 89. Vouchers and credit-tokens.
  4. Chargeable gains
    1. 90. Annual exempt amount for 1994-95.
    2. 91. Relief on re-investment.
    3. 92. Relief on retirement.
    4. 93. Indexation losses.
    5. 94. Set-off of pre-entry losses.
    6. 95. Commodity and financial futures.
    7. 96. Cash-settled options.
    8. 97. Settlements with foreign element: information.
  5. Profit-related pay
    1. 98. The distributable pool.
    2. 99. Parts of undertakings.
  6. Profit sharing schemes
    1. 100. Relevant age for purpose of appropriate percentage.
    2. 101. Acceptance of qualifying corporate bonds for shares.
  7. Employee share ownership trusts
    1. 102. Employee share ownership trusts.
  8. Retirement benefits schemes
    1. 103. The administrator.
    2. 104. Default of administrator etc.
    3. 105. Information.
    4. 106. False statements etc.
    5. 107. Discretionary approval.
    6. 108. Taxation of benefits of non-approved schemes.
  9. Annuities
    1. 109. Annuities derived from personal pension schemes.
    2. 110. Annuities derived from retirement benefits schemes.
  10. Authorised unit trusts
    1. 121. Used buildings etc. in enterprise zones.
  11. Securities
    1. 122. Sale and repurchase of securities: deemed manufactured payments.
    2. 123. Manufactured payments.
    3. 124. Overseas dividend manufacturers: limitation of double taxation relief.
  12. PAYE
    1. 125. Payment by intermediary.
    2. 126. Employees working for persons other than their employers, etc.
    3. 127. Tradeable assets.
    4. 128. Non-cash vouchers.
    5. 129. Credit-tokens.
    6. 130. Cash vouchers.
    7. 131. Supplementary.
    8. 132. Payments etc. received free of tax.
    9. 133. PAYE regulations: past cases.
  13. Miscellaneous provisions about companies
    1. 134. Controlled foreign companies.
    2. 135. Prevention of avoidance of corporation tax.
    3. 136. Parts of trades: computations in different currencies.
  14. Miscellaneous
    1. 137. Enterprise investment scheme.
    2. 138. Foreign income dividends.
    3. 139. Taxation of incapacity benefit.
    4. 140. Restriction on deduction from income.
    5. 141. Expenditure involving crime.
    6. 142. Mortgage interest payable under deduction of tax: qualifying lenders.
    7. 143. Premiums referred to pension business.
    8. 144. Debts released in voluntary arrangement: relief from tax.
    9. 145. Relief for business donations.
    10. 146. Minor corrections.
2. Chapter II
  
  Interest Rate and Currency Contracts
  1. Qualifying contracts
    1. 147. Qualifying contracts.
    2. 148. Contracts which may become qualifying contracts.
  2. Interest rate and currency contracts and options
    1. 149. Interest rate contracts and options.
    2. 150. Currency contracts and options.
    3. 151. Provisions which may be included.
    4. 152. Provisions which may be disregarded.
  3. Other basic definitions
    1. 153. Qualifying payments.
    2. 154. Qualifying companies.
  4. Accrual of profits and losses
    1. 155. Accrual of profits and losses.
    2. 156. Basis of accounting: general.
    3. 157. Basis of accounting for linked currency options.
    4. 158. Adjustments for changes in basis of accounting.
  5. Treatment of profits and losses
    1. 159. Trading profits and losses.
    2. 160. Non-trading profits and losses.
  6. Special cases
    1. 161. Termination etc. of qualifying contracts.
    2. 162. Exchange gains and losses on currency contracts.
    3. 163. Irrecoverable payments.
    4. 164. Released payments.
  7. Anti-avoidance and related provisions
    1. 165. Transfers of value by qualifying companies.
    2. 166. Transfers of value to associated companies.
    3. 167. Transactions not at arm's length.
    4. 168. Qualifying contracts with non-residents.
  8. Miscellaneous
    1. 169. Insurance and mutual trading companies.
    2. 170. Investment trusts.
    3. 171. Charities.
    4. 172. Partnerships involving qualifying companies.
  9. Supplemental
    1. 173. Prevention of double charging etc.
    2. 174. Prevention of deduction of tax.
    3. 175. Transitional provisions.
    4. 176. Minor and consequential amendments.
    5. 177. Interpretation of Chapter II.
3. Chapter III
  
  Management: Self-Assessment etc.
  1. Income tax and capital gains tax
    1. 178. Personal and trustee's returns.
    2. 179. Returns to include self-assessment.
    3. 180. Power to enquire into returns.
  2. Corporation tax
    1. 181. Return of profits.
    2. 182. Return of profits to include self-assessment.
    3. 183. Power to enquire into return of profits.
  3. Partnerships
    1. 184. Partnership return.
    2. 185. Partnership return to include partnership statement.
    3. 186. Power to enquire into partnership return.
  4. Enquiries: procedure
    1. 187. Power to call for documents.
    2. 188. Amendment of self-assessment.
    3. 189. Amendment of partnership statement.
  5. Determinations and assessments to protect revenue
    1. 190. Determination of tax where no return delivered.
    2. 191. Assessment where loss of tax discovered.
  6. Payment of tax
    1. 192. Payments on account of income tax.
    2. 193. Payment of income tax and capital gains tax.
    3. 194. Surcharges on unpaid income tax and capital gains tax.
    4. 195. Payment of corporation tax.
  7. Miscellaneous and supplemental
    1. 196. Management: other amendments.
    2. 197. Construction of certain references.
    3. 198. Transitional provisions.
    4. 199. Interpretation and commencement of Chapter III.
4. Chapter IV
  
  Changes for Facilitating Self-Assessment
  1. Assessment under Cases I and II of Schedule D
    1. 200. Assessment on current year basis.
    2. 201. Basis of assessment at commencement.
    3. 202. Change of basis period.
    4. 203. Conditions for such a change.
    5. 204. Basis of assessment on discontinuance.
    6. 205. Overlap profits and overlap losses.
  2. Assessment under Cases III to VI of Schedule D
    1. 206. Basis of assessment under Case III.
    2. 207. Basis of assessment under Cases IV and V.
    3. 208. Basis of assessment under Case VI.
  3. Loss relief
    1. 209. Loss relief: general.
    2. 210. Relief for losses on unquoted shares.
  4. Capital allowances
    1. 211. Income tax allowances and charges in taxing a trade etc.
    2. 212. Chargeable periods for income tax purposes.
    3. 213. Other amendments of Capital Allowances Act 1990.
    4. 214. Amendments of other enactments.
  5. Miscellaneous and supplemental
    1. 215. Treatment of partnerships.
    2. 216. Effect of change in ownership of trade, profession or vocation.
    3. 217. Double taxation relief in respect of overlap profits.
    4. 218. Commencement, transitional provisions and savings.
5. Chapter V
  
  Lloyd's Underwriters: Corporations etc.
  1. Main provisions
    1. 219. Taxation of profits.
    2. 220. Accounting period in which certain profits or losses arise.
    3. 221. Assessment and collection of tax.
  2. Trust funds
    1. 222. Premiums trust funds.
    2. 223. Ancillary trust funds.
  3. Other special cases
    1. 224. Reinsurance to close.
    2. 225. Stop-loss and quota share insurance.
  4. Miscellaneous
    1. 226. Provisions which are not to apply.
    2. 227. Cessation: final underwriting year.
    3. 228. Lloyd's underwriters: individuals.
  5. Supplemental
    1. 229. Regulations.
    2. 230. Interpretation and commencement.
Part V

Oil Taxation
1. Chapter I
  
  Election by Reference to Pipe-Line Usage
  1. 231. Election by reference to pipe-line with excess capacity.
  2. 232. Restriction on electing participator's allowable expenditure on elected assets.
  3. 233. Tax relief for certain receipts of an electing participator.
  4. 234. Interpretation of Chapter and supplementary provisions.
2. Chapter II
  
  Miscellaneous
  1. 235. Valuation of oil.
  2. 236. Valuation of certain light gases.
  3. 237. Abortive exploration expenditure.
  4. 238. Disposals of assets producing tariff receipts.
Part VI

Stamp Duty
1. 239. Execution of deeds.
2. 240. Time for presenting agreements for leases.
3. 241. Exchange, partition, etc.
4. 242. Where consideration not ascertainable from conveyance or lease.
5. 243. Agreements to surrender leases.
6. 244. Production of documents on transfer of land in Northern Ireland.
7. 245. Production of documents: supplementary.
Part VII

Inheritance Tax
1. 246. Rate bands: no indexation in 1994.
2. 247. Business and agricultural relief.
3. 248. Corporate Lloyd's underwriters.
Part VIII

Miscellaneous and General
1. Companies treated as non-resident
  1. 249. Certain companies treated as non-resident.
  2. 250. Companies treated as non-resident: supplementary.
  3. 251. Companies treated as non-resident: repeals.
2. Privatisations
  1. 252. Railways.
  2. 253. Northern Ireland Airports Limited.
3. Management
  1. 254. Practice and procedure in connection with appeals.
  2. 255. Calling for documents of taxpayers and others.
4. Assigned matters
  1. 256. Minor corrections.
5. General
  1. 257. Interpretation and construction.
  2. 258. Repeals.
  3. 259. Short title.
SCHEDULES:
1. Schedule 1
  
  Table of rates of duty on wine and made-wine.
2. Schedule 2
  
  Vehicles excise duty: miscellaneous provisions.
3. Schedule 3
  
  Amendments about gaming machine licence duty.
4. Schedule 4
  
  Penalties for statutory contraventions.
  1. Part I
    
    Contraventions under the Management Act.
  2. Part II
    
    Contraventions under the Alcoholic Liquor Duties Act 1979.
  3. Part III
    
    Contraventions under the Hydrocarbon Oil Duties Act 1979.
  4. Part IV
    
    Contraventions under the Tobacco Products Duty Act 1979.
  5. Part V
    
    Contraventions under the Betting and Gaming Duties Act 1981.
  6. Part VI
    
    Contraventions relating to lottery duty.
5. Schedule 5
  
  Decisions subject to review and appeal.
6. Schedule 6
  
  Air passenger duty: administration and enforcement.
7. Schedule 7
  
  Insurance premium tax.
  1. Part I
    
    Information.
  2. Part II
    
    Powers.
  3. Part III
    
    Recovery.
  4. Part IV
    
    Penalties.
  5. Part V
    
    Interest.
  6. Part VI
    
    Miscellaneous.
8. Schedule 8
  
  Supplemental provisions relating to personal reliefs.
9. Schedule 9
  
  Mortgage interest relief etc.
10. Schedule 10
  
  Medical insurance.
11. Schedule 11
  
  Extension of roll-over relief on re-investment.
12. Schedule 12
  
  Indexation losses: transitional relief.
13. Schedule 13
  
  Employee share ownership trusts.
14. Schedule 14
  
  Distributions of authorised unit trusts.
15. Schedule 15
  
  Enterprise investment scheme.
16. Schedule 16
  
  Foreign income dividends.
  1. Part I
    
    The new Chapter.
  2. Part II
    
    Liability for and collection of advance corporation tax.
  3. Part III
    
    Insurance companies etc.
  4. Part IV
    
    Other provisions.
17. Schedule 17
  
  Minor corrections.
18. Schedule 18
  
  Interest rate and currency contracts: insurance and mutual trading companies.
19. Schedule 19
  
  Management: other amendments.
  1. Part I
    
    Amendments of Management Act.
  2. Part II
    
    Amendments of Taxes Act 1988.
  3. Part III
    
    Amendments of other enactments.
20. Schedule 20
  
  Changes for facilitating self-assessment: transitional provisions and savings.
21. Schedule 21
  
  Lloyd's underwriters: individuals.
22. Schedule 22
  
  Supplementary provisions as to elections by reference to pipe-line usage.
  1. Part I
    
    Procedure for and in connection with an election.
  2. Part II
    
    Supplementary provisions.
23. Schedule 23
  
  Amendments of the principal Act relating to valuation of light gases.
24. Schedule 24
  
  Provisions relating to the Railways Act 1993.
25. Schedule 25
  
  Northern Ireland Airports Limited.
26. Schedule 26
  
  Repeals.
  1. Part I
    
    Vehicles excise duty.
  2. Part II
    
    Gaming machine licence duty.
  3. Part III
    
    Excise duties: enforcement and appeals.
  4. Part IV
    
    Value added tax.
  5. Part V
    
    Income tax, corporation tax and capital gains tax.
  6. Part VI
    
    Oil taxation.
  7. Part VII
    
    Stamp duty.
  8. Part VIII
    
    Miscellaneous.

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.

[3rd May 1994]

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

Chapter I General

Rates of duty

1 Wine, made-wine and cider

(1) For the Table of rates of duty in Schedule 1 to the [1979 c. 4.] Alcoholic Liquor Duties Act 1979 (wine and made-wine) there shall be substituted the Table in Schedule 1 to this Act.

(2) In section 62(1) of that Act (cider) for "£22.39" there shall be substituted "£22.82".

(3) This section shall be deemed to have come into force on 1st January 1994.

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. Cigarettes	An amount equal to 20 per cent. of the retail price plus £52.33 per thousand cigarettes.
2. Cigars	£77.58 per kilogram.
3. Hand-rolling tobacco	£81.86 per kilogram.
4. Other smoking tobacco and chewing tobacco	£34.26 per kilogram. "

(2) This section shall be deemed to have come into force at 6 o'clock in the evening of 30th November 1993.

3 Hydrocarbon oil

(1) In section 6(1) of the [1979 c. 5.] Hydrocarbon Oil Duties Act 1979 for "£0.3058" (duty on light oil) and "£0.2514" (duty on heavy oil) there shall be substituted "£0.3314" and "£0.2770" respectively.

(2) In section 11(1) of that Act (rebate on heavy oil) for "£0.0105" (fuel oil) and "£0.0149" (gas oil) there shall be substituted "£0.0116" and "£0.0164" respectively.

(3) In section 14(1) of that Act (rebate on light oil for use as furnace fuel) for "£0.0105" there shall be substituted "£0.0116".

(4) This section shall be deemed to have come into force at 6 o'clock in the evening of 30th November 1993.

4 Vehicles excise duty

(1) The [1971 c. 10.] Vehicles (Excise) Act 1971 shall be amended as follows.

(2) In section 2(1)(b) (six month licences), for "£35" there shall be substituted "£50".

(3) In Schedule 1 (annual rates of duty on motorcycles), in Part I, paragraph 4(a) (special provision about old motorcycles in Northern Ireland) shall be omitted.

(4) In Schedule 2 (annual rates of duty on hackney carriages)--

(a) in Part I, paragraph 3 (special provision about vehicles used partly for private purposes) and paragraph 5 (special provision for Northern Ireland) shall be omitted; and

(b) in the second column of the first entry in the Table set out in Part II (hackney carriages with seating capacity under nine), for "125" there shall be substituted "130".

(5) In Schedule 4 (annual rates of duty on goods vehicles), in the Table set out in paragraph 4(1) (articulated vehicles), there shall be inserted at the end--

" 38,000

44,000

2,730

1,240 "

(6) In Schedule 4, in paragraph 6 (farmers' goods vehicles and showmen's goods vehicles), sub-paragraph (6)(a), (c) and (d) (exceptional cases where rate is not determined according to sub-paragraphs (3) to (5)) shall be omitted.

(7) In Schedule 5 (annual rates of duty on vehicles not falling within Schedules 1 to 4A), in the second column of paragraph 2 in the Table set out in Part II (vehicles other than those constructed before 1947), for "125.00" there shall be substituted "130.00".

(8) This section shall apply in relation to licences taken out after 30th November 1993.

Other provisions

5 Vehicles excise duty: miscellaneous provisions

Schedule 2 to this Act (which contains miscellaneous provisions relating to vehicles excise duty) shall have effect.

6 Gaming machine licence duty

Schedule 3 to this Act (which makes amendments to the [1981 c. 63.] Betting and Gaming Duties Act 1981 about gaming machine licence duty) shall have effect.

Chapter II Appeals and Penalties

VAT and duties tribunals

7 VAT and duties tribunals

(1) As from the coming into force of this section the tribunals for which provision is made by Schedule 8 to the [1983 c. 55.] Value Added Tax Act 1983 (value added tax tribunals)--

(a) shall be known as the VAT and duties tribunals; and

(b) shall (in addition to their jurisdiction in relation to matters relating to value added tax) have the jurisdiction in relation to matters relating to customs and excise which is conferred by this Chapter.

(2) Accordingly--

(a) the President of Value Added Tax Tribunals and any Vice-President of Value Added Tax Tribunals shall be known after the coming into force of this section as, respectively, the President of the VAT and Duties Tribunals and a Vice-President of the VAT and Duties Tribunals; and

(b) references in the Value Added Tax Act 1983 or in any other enactment, or in any subordinate legislation, to a value added tax tribunal, to the President of Value Added Tax Tribunals or to a Vice-President of Value Added Tax Tribunals, and any cognate expressions, shall be construed in accordance with subsection (1) and paragraph (a) above.

(3) In the following provisions of this Chapter references to an appeal tribunal are references to a VAT and duties tribunal.

(4) Sections 25 and 29 of the [1985 c. 54.] Finance Act 1985 (settling of appeals by agreement and enforcement of decisions of tribunal) shall have effect as if--

(a) the references to section 40 of the [1983 c. 55.] Value Added Tax Act 1983 included references to this Chapter; and

(b) references to value added tax included references to any relevant duty.

(5) Without prejudice to the generality of the power conferred by paragraph 9 of Schedule 8 to the [1983 c. 55.] Value Added Tax Act 1983 (rules of procedure for tribunals), rules under that paragraph may provide for costs awarded against an appellant on an appeal by virtue of this Chapter to be recoverable, and for any directly applicable Community legislation relating to any relevant duty or any enactment so relating to apply, as if the amount awarded were an amount of duty which the appellant is required to pay.

(6) In Part I of Schedule 1 to the [1992 c. 53.] Tribunals and Inquiries Act 1992 (tribunals under direct supervision of Council on Tribunals), for the entry beginning "Value added tax" there shall be substituted the following entry--

" VAT and duties

44. VAT and duties tribunals for England and Wales and for Northern Ireland, constituted in accordance with Schedule 8 to the Value Added Tax Act 1983 (c. 55). "

(7) In Part II of Schedule 1 to that Act of 1992 (tribunals under supervision of Scottish Committee of the Council), for the entry beginning "Value added tax" there shall be substituted the following entry--

" VAT and duties

63. VAT and duties tribunals for Scotland constituted in accordance with Schedule 8 to the Value Added Tax Act 1983 (c. 55). "

Civil penalties

8 Penalty for evasion of excise duty

(1) Subject to the following provisions of this section, in any case where--

(a) any person engages in any conduct for the purpose of evading any duty of excise, and

(b) his conduct involves dishonesty (whether or not such as to give rise to any criminal liability),

that person shall be liable to a penalty of an amount equal to the amount of duty evaded or, as the case may be, sought to be evaded.

(2) References in this section to a person's evading a duty of excise shall include references to his obtaining or securing, without his being entitled to it--

(a) any repayment, rebate or drawback of duty;

(b) any relief or exemption from or any allowance against duty; or

(c) any deferral or other postponement of his liability to pay any duty or of the discharge by payment of any such liability,

and shall also include references to his evading the cancellation of any entitlement to, or the withdrawal of, any such repayment, rebate, drawback, relief, exemption or allowance.

(3) In relation to any such evasion of duty as is mentioned in subsection (2) above, the reference in subsection (1) above to the amount of duty evaded or sought to be evaded shall be construed as a reference to the amount of the repayment, rebate, drawback, relief, exemption or allowance or, as the case may be, the amount of the payment which, or the liability to make which, is deferred or otherwise postponed.

(4) Where a person is liable to a penalty under this section--

(a) the Commissioners or, on appeal, an appeal tribunal may reduce the penalty to such amount (including nil) as they think proper; and

(b) an appeal tribunal, on an appeal relating to a penalty reduced by the Commissioners under this subsection, may cancel the whole or any part of the reduction made by the Commissioners.

(5) Neither of the following matters shall be a matter which the Commissioners or any appeal tribunal shall be entitled to take into account in exercising their powers under subsection (4) above, that is to say--

(a) the insufficiency of the funds available to any person for paying any duty of excise or for paying the amount of the penalty;

(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 duty.

(6) Statements made or documents produced by or on behalf of a person shall not be inadmissible in--

(a) any criminal proceedings against that person in respect of any offence in connection with or in relation to any duty of excise, or

(b) any proceedings against that person for the recovery of any sum due from him in connection with or in relation to any duty of excise,

by reason only that any of the matters specified in subsection (7) below has been drawn to his attention and that he was, or may have been, induced by that matter having been brought to his attention to make the statements or produce the documents.

(7) The matters mentioned in subsection (6) above are--

(a) that the Commissioners have power, in relation to any duty of excise, to assess an amount due by way of a civil penalty, instead of instituting criminal proceedings;

(b) that it is the Commissioners' practice, without being able to give an undertaking as to whether they will make such an assessment in any case, to be influenced in determining whether to make such an assessment by the fact (where it is the case) that a person has made a full confession of any dishonest conduct to which he has been a party and has given full facilities for an investigation;

(c) that the Commissioners or, on appeal, an appeal tribunal have power to reduce a penalty under this section, as provided in subsection (4) above; and

(d) that, in determining the extent of such a reduction in the case of any person, the Commissioners or tribunal will have regard to the extent of the co-operation which he has given to the Commissioners in their investigation.

(8) Where, by reason of conduct falling within subsection (1) above, a person is convicted of an offence, that conduct shall not also give rise to liability to a penalty under this section.

9 Penalties for contraventions of statutory requirements

(1) This section applies, subject to section 10 below, to any conduct in relation to which any enactment (including an enactment contained in this Act or in any Act passed after this Act) provides for the conduct to attract a penalty under this section.

(2) Any person to whose conduct this section applies shall be liable--

(a) in the case of conduct in relation to which provision is made by subsection (4) below or any other enactment for the penalty attracted to be calculated by reference to an amount of, or an amount payable on account of, any duty of excise, to a penalty of whichever is the greater of 5 per cent. of that amount and £250; and

(b) in any other case, to a penalty of £250.

(3) Subject to section 13(3) and (4) below, in the case of any conduct to which this section applies which is conduct in relation to which provision is made by subsection (4) or (5) below or any other enactment for that conduct to attract daily penalties, the person whose conduct it is--

(a) shall be liable, in addition to an initial penalty under subsection (2) above, to a penalty of £20 for every day, after the first, on which the conduct continues, but

(b) shall not, in respect of the continuation of that conduct, be liable to further penalties under subsection (2) above.

(4) Where any conduct to which this section applies consists in a failure, in contravention of any subordinate legislation, to pay any amount of any duty of excise or an amount payable on account of any such duty, then, in so far as that would not otherwise be the case--

(a) the penalty attracted to that contravention shall be calculated by reference to the amount unpaid; and

(b) the contravention shall also attract daily penalties.

(5) Where--

(a) a contravention of any provision made by or under any enactment consists in or involves a failure, before such time as may be specified in or determined in accordance with that provision, to send a return to the Commissioners showing the amount which any person is or may become required to pay by way of, or on account of, any duty of excise, and

(b) that contravention attracts a penalty under this section,

that contravention shall also attract daily penalties.

(6) Where, by reason of any conduct to which this section applies, a person is convicted of an offence, that conduct shall not also give rise to liability to a penalty under this section.

(7) If it appears to the Treasury that there has been a change in the value of money since the passing of this Act or, as the case may be, the last occasion when the power conferred by this subsection was exercised, they may by order substitute for any sum for the time being specified in subsection (2) or (3) above such other sum as appears to them to be justified by the change.

(8) The power to make an order under subsection (7) above--

(a) shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons; but

(b) shall not be exercisable so as to vary the penalty for any conduct occurring before the coming into force of the order.

(9) Schedule 4 to this Act (which provides for the conduct to which this section applies, repeals the summary offences superseded by this section and makes related provision with respect to forfeiture) shall have effect.

10 Exceptions to liability under section 9

(1) Subject to subsection (2) below and to any express provision to the contrary made in relation to any conduct to which section 9 above applies, such conduct shall not give rise to any liability to a penalty under that section if the person whose conduct it is satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the conduct.

(2) Where it appears to the Commissioners or, on appeal, an appeal tribunal that there is no reasonable excuse for a continuation of conduct for which there was at first a reasonable excuse, liability for a penalty under section 9 above shall be determined as if the conduct began at the time when there ceased to be a reasonable excuse for its continuation.

(3) For the purposes of this section--

(a) an insufficiency of funds available for paying any duty or penalty due shall not be a reasonable excuse; and

(b) where reliance is placed by any person on another to perform any task, then neither the fact of that reliance nor the fact that any conduct to which section 9 above applies was attributable to the conduct of that other person shall be a reasonable excuse.

11 Breaches of walking possession agreements

(1) This section applies where--

(a) by virtue of section 117 of the Management Act or section 28 of the [1981 c. 63.] Betting and Gaming Duties Act 1981, a person ("the person levying the distress") is empowered or authorised to distrain any property of another person ("the person in default"); and

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

(2) In this section a "walking possession agreement" means 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 subsection (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 unpaid duty or penalty which gives rise to the distraint.

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

(5) This section does not extend to Scotland.

Assessments to excise duty or to penalties

12 Assessments to excise duty

(1) Subject to subsection (4) below, where it appears to the Commissioners--

(a) that any person is a person from whom any amount has become due in respect of any duty of excise; and

(b) that there has been a default falling within subsection (2) below,

the Commissioners may assess the amount of duty due from that person to the best of their judgement and notify that amount to that person or his representative.

(2) The defaults falling within this subsection are--

(a) any failure by any person to make, keep, preserve or produce as required or directed by or under any enactment any returns, accounts, books, records or other documents;

(b) any omission from or inaccuracy in any returns, accounts, books, records or other documents which any person is required or directed by or under any enactment to make, keep, preserve or produce;

(c) any failure by any person to take or permit to be taken any step which he is required under Schedule 1 or 3 to the [1981 c. 63.] Betting and Gaming Duties Act 1981 to take or to permit to be taken;

(d) any unreasonable delay in performing any obligation the failure to perform which would be a default falling within this subsection.

(3) Where an amount has been assessed as due from any person and notified in accordance with this section, it shall, subject to any appeal under section 16 below, be deemed to be an amount of the duty in question due from that person and may be recovered accordingly, unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.

(4) An assessment of the amount of any duty of excise due from any person shall not be made under this section at any time after whichever is the earlier of the following times, that is to say--

(a) subject to subsection (5) below, the end of the period of six years beginning with the time when his liability to the duty arose; and

(b) the end of the period of one year beginning with the day on which evidence of facts, sufficient in the opinion of the Commissioners to justify the making of the assessment, comes to their knowledge;

but this subsection shall be without prejudice, where further evidence comes to the knowledge of the Commissioners at any time after the making of an assessment under this section, to the making of a further assessment within the period applicable by virtue of this subsection in relation to that further assessment.

(5) Subsection (4) above shall have effect as if the reference in paragraph (a) to six years were a reference to twenty years in the case of any assessment to any amount of duty the assessment or payment of any of which has been postponed or otherwise affected by--

(a) conduct in respect of which any person (whether or not the person assessed)--

(i) has become liable to a penalty under section 8 above, or

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