Finance Act 1995 (c. 4)

(The document as of February, 2008)

-- Back --

Page 13

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 | P.15 | P.16 | P.17 | P.18 | P.19 | P.20 | P.21 | P.22 | P.23 | P.24 | P.25 | P.26 | P.27 | P.28 | P.29

(6) This section shall apply in relation to instruments executed on or after the day on which this Act is passed.

151 Lease or tack: associated bodies

(1) Stamp duty under the heading "Lease or Tack" in Schedule 1 to the [1891 c. 39.] Stamp Act 1891 shall not be chargeable on an instrument which is--

(a) a lease or tack,

(b) an agreement for a lease or tack, or

as respects which the condition in subsection (2) below is satisfied.

(2) The condition is that it is shown to the satisfaction of the Commissioners of Inland Revenue that--

(a) the lessor is a body corporate and the lessee is another body corporate,

(b) those bodies are associated at the time the instrument is executed,

(c) in the case of an agreement, the agreement is for the lease or tack or letting to be granted to the lessee or to a body corporate which is associated with the lessee at the time the instrument is executed, and

(d) the instrument is not executed in pursuance of or in connection with an arrangement falling within subsection (3) below.

(3) An arrangement falls within this subsection if it is one under which--

(a) the consideration, or any part of the consideration, for the lease or tack or agreement was to be provided or received (directly or indirectly) by a person other than a body corporate which at the relevant time was associated with either the lessor or the lessee, or

(b) the lessor and the lessee were to cease to be associated by reason of the lessor or a third body corporate ceasing to be the lessee's parent;

and the relevant time is the time of the execution of the instrument.

(4) Without prejudice to the generality of paragraph (a) of subsection (3) above, an arrangement shall be treated as within that paragraph if it is one under which the lessor or the lessee or a body corporate associated with either at the relevant time was to be enabled to provide any of the consideration, or was to part with any of it, by or in consequence of the carrying out of a transaction which involved (or transactions any of which involved) a payment or other disposition by a person other than a body corporate associated with the lessor or the lessee at the relevant time.

(5) An instrument mentioned in subsection (1) above shall not be treated as duly stamped unless--

(a) it is duly stamped in accordance with the law that would apply but for that subsection, or

(b) it has, in accordance with section 12 of the [1891 c. 39.] Stamp Act 1891, been stamped with a particular stamp denoting either that it is not chargeable with any duty or that it is duly stamped.

(6) In this section--

(a) references to the lessor are to the person granting the lease or tack or (in the case of an agreement) agreeing to grant the lease or tack or letting;

(b) references to the lessee are to the person being granted the lease or tack or (in the case of an agreement) agreeing for the lease or tack or letting to be granted to him or another.

(7) For the purposes of this section bodies corporate are associated at a particular time if at that time one is the parent of the other or another body corporate is the parent of each.

(8) For the purposes of this section one body corporate is the parent of another at a particular time if at that time the first body is beneficial owner of not less than 75 per cent. of the ordinary share capital of the second body.

(9) In subsection (8) above "ordinary share capital", in relation to a body corporate, means all the issued share capital (by whatever name called) of the body corporate, other than capital the holders of which have a right to a dividend at a fixed rate but have no other right to share in the profits of the body corporate.

(10) The ownership referred to in subsection (8) above is ownership either directly or through another body corporate or other bodies corporate, or partly directly and partly through another body corporate or other bodies corporate; and Part I of Schedule 4 to the [1938 c. 46.] Finance Act 1938 (determination of amount of capital held through other bodies corporate) shall apply for the purposes of this section.

(11) This section shall apply in relation to instruments executed on or after the day on which this Act is passed.

Part VI Miscellaneous and General

Miscellaneous

152 Open-ended investment companies

(1) The Treasury may, by regulations, make such provision as they consider appropriate for securing that the enactments specified in subsection (2) below have effect in relation to--

(a) open-ended investment companies of any such description as may be specified in the regulations,

(b) holdings in, and the assets of, such companies, and

in a manner corresponding, subject to such modifications as the Treasury consider appropriate, to the manner in which they have effect in relation to unit trusts, to rights under, and the assets subject to, such trusts and to transactions for purposes connected with such trusts.

(2) The enactments referred to in subsection (1) above are--

(a) the Tax Acts and the [1992 c. 12.] Taxation of Chargeable Gains Act 1992; and

(b) the enactments relating to stamp duty and Part IV of the [1986 c. 41.] Finance Act 1986 (stamp duty reserve tax).

(3) The power of the Treasury to make regulations under this section in relation to any such enactments shall include power to make provision which does any one or more of the following, that is to say--

(a) identifies the payments which are or are not to be treated, for the purposes of any prescribed enactment, as the distributions of open-ended investment companies;

(b) modifies the operation of Chapters II, III and VA of Part VI of the Taxes Act 1988 in relation to open-ended investment companies or in relation to payments falling to be treated as the distributions of such companies;

(c) applies and adapts any of the provisions of Part IV of the [1986 c. 41.] Finance Act 1986 for the purpose of making in relation to transactions involving open-ended investment companies any provision corresponding (with or without modifications) to that which applies under the enactments relating to stamp duty in the case of equivalent transactions involving unit trusts;

(d) provides for any or all of the provisions of sections 75 to 77 of the [1986 c. 41.] Finance Act 1986 to have effect or not to have effect in relation to open-ended investment companies or the undertakings of, or any shares in, such companies;

(e) so modifies the operation of any prescribed enactment in relation to any such companies as to secure that arrangements for treating the assets of an open-ended investment company as assets comprised in separate pools are given an effect corresponding, in prescribed respects, to that of equivalent arrangements constituting the separate parts of an umbrella scheme;

(f) requires prescribed enactments to have effect in relation to an open-ended investment company as if it were, or were not, a member of the same group of companies as one or more other companies;

(g) identifies the holdings in open-ended investment companies which are, or are not, to be treated for the purposes of any prescribed enactment as comprised in the same class of holdings;

(h) preserves a continuity of tax treatment where, in connection with any scheme of re-organisation, assets of one or more unit trusts become assets of one or more open-ended investment companies, or vice versa;

(i) treats the separate parts of the undertaking of an open-ended investment company in relation to which provision is made by virtue of paragraph (e) above as distinct companies for the purposes of any regulations under this section;

(j) amends, adapts or applies the provisions of any subordinate legislation made under or by reference to any enactment modified by the regulations.

(4) The power to make regulations under this section shall be exercisable by statutory instrument and shall include power--

(a) to make different provision for different cases; and

(b) to make such incidental, supplemental, consequential and transitional provision as the Treasury may think fit.

(5) A statutory instrument containing regulations under this section shall be subject to annulment in pursuance of a resolution of the House of Commons.

(6) In this section--

"the enactments relating to stamp duty" means the [1891 c. 39.] Stamp Act 1891, and any enactment (including any Northern Ireland legislation) which amends or is required to be construed together with that Act;
"Northern Ireland legislation" shall have the meaning given by section 24(5) of the [1978 c. 30.] Interpretation Act 1978;
"open-ended investment company" has the same meaning as in the [1986 c. 60.] Financial Services Act 1986;
"prescribed" means prescribed by regulations under this section;
"subordinate legislation" means any subordinate legislation within the meaning of the [1978 c. 30.] Interpretation Act 1978 or any order or regulations made by statutory instrument under Northern Ireland legislation; and
"umbrella scheme" shall have the meaning given by section 468 of the Taxes Act 1988;

and references in this section to the enactments relating to stamp duty, or to any of them, or to Part IV of the Finance Act 1986 shall have effect as including references to enactments repealed by sections 107 to 110 of the [1986 c. 41.] Finance Act 1990.

(7) Any reference in this section to unit trusts has effect--

(a) for the purposes of so much of this section as confers power in relation to the enactments specified in paragraph (a) of subsection (2) above, as a reference to authorised unit trusts (within the meaning of section 468 of the Taxes Act 1988), and

(b) for the purposes of so much of this section as confers power in relation to the enactments specified in paragraph (b) of that subsection, as a reference to any unit trust scheme (within the meaning given by section 57 of the [1946 c. 64.] Finance Act 1946).

(8) For the purposes of this section the enactments which shall be taken to make provision in relation to companies that are members of the same group of companies shall include any enactments which make provision in relation to a case--

(a) where one company has, or in relation to another company is, a subsidiary, or a subsidiary of a particular description, or

(b) where one company controls another or two or more companies are under the same control. [1990 c. 29.]

153 Electronic lodgement of tax returns, etc

Schedule 28 to this Act (which makes provision with respect to the electronic lodgement of certain tax returns and documents required in connection with tax returns) shall have effect.

154 Short rotation coppice

(1) The cultivation of short rotation coppice shall be regarded for the purposes of the Tax Acts and the [1992 c. 12.] Taxation of Chargeable Gains Act 1992 as farming (and, where relevant, as husbandry or agriculture) and not as forestry; and land in the United Kingdom on which the activity is carried on shall accordingly be regarded for those purposes as farm land or agricultural land, as the case may be, and not as woodlands.

(2) For the purposes of the Inheritance Tax Act 1984 the cultivation of short rotation coppice shall be regarded as agriculture; and accordingly for those purposes--

(a) land on which short rotation coppice is cultivated shall be regarded as agricultural land, and

(b) buildings used in connection with the cultivation of short rotation coppice shall be regarded as farm buildings.

(3) In subsections (1) and (2) "short rotation coppice" means a perennial crop of tree species planted at high density, the stems of which are harvested above ground level at intervals of less than ten years.

(4) Subsection (1) and subsection (3) so far as relating to subsection (1) shall be deemed to have come into force on 29th November 1994.

(5) Subsection (2) and subsection (3) so far as relating to subsection (2) shall have effect in relation to transfers of value or other events occuring on or after 6th April 1995.

155 Inheritance tax: agricultural property

(1) In section 116 of the [1984 c. 51.] Inheritance Tax Act 1984 (relief for transfers of agricultural property) in subsection (2) (rate of relief) the word "either" shall be omitted and at the end of paragraph (b) there shall be inserted " or

(c) the interest of the transferor in the property immediately before the transfer does not carry either of the rights mentioned in paragraph (a) above because the property is let on a tenancy beginning on or after 1st September 1995; " .

(2) After subsection (2) of that section there shall be inserted the following subsection--

" (2A) In the application of this section as respects property in Scotland, the reference in subsection (2)(c) above to a tenancy beginning on or after 1st September 1995 includes a reference to its being acquired on or after that date by right of succession (the date of acquisition being taken to be the date on which the successor gives relevant notice under section 12 of the [1991 c. 55.] Agricultural Holdings (Scotland) Act 1991). "

(3) Subsections (1) and (2) above shall apply in relation to transfers of value made, and other events occurring, on or after 1st September 1995.

156 Proceedings for tax in sheriff court

(1) Section 67 of the [1970 c. 9.] Taxes Management Act 1970 (proceedings for tax in sheriff court) shall be amended as follows.

(2) In subsection (1) (tax not exceeding a specified sum recoverable in sheriff court) for the words from "where" to "the tax" there shall be substituted "tax due and payable under any assessment".

(3) The following subsection shall be inserted after subsection (1)--

" (1A) An officer of the Board who is authorised by the Board to do so may address the court in any proceedings under this section. "

(4) This section shall apply in relation to proceedings commenced after the day on which this Act is passed.

157 Certificates of tax deposit

(1) If, whether before or after the passing of this Act--

(a) any person ("the depositor") has received any sum on the making, on or after 6th April 1990, of a withdrawal for cash of a tax deposit made before that date,

(b) the whole or any part of any qualifying tax liability has been discharged by any payment made otherwise than by the application of a tax deposit, and

the depositor shall be entitled to receive compensation under this section from the Board.

(2) In this section "qualifying tax liability", in relation to a tax deposit, means so much of any liability as is--

(a) a liability of any person for any tax for the year 1990-91 or any subsequent year of assessment, or for interest on such tax;

(b) a liability that relates to tax for a year of assessment during the whole or any part of which that person was married to the depositor; and

(c) a liability of such a description that, if it had been a liability of the depositor (and the withdrawal were to be disregarded), the whole or any part of it could have been discharged, immediately before the time of the payment mentioned in subsection (1)(b) above, by the application of that deposit and of accrued interest thereon.

(3) Subject to the following provisions of this section, the amount of the compensation to which the depositor is entitled under this section in the case of any deposit withdrawn for cash shall be equal to the difference between--

(a) the sum received as mentioned in subsection (1)(a) above on the withdrawal; and

(b) the sum that would have been received if interest had accrued on the relevant part of the sum received at the rate applicable under the relevant terms to sums applied in the payment of tax, instead of at the rate applicable to a withdrawal for cash.

(4) In subsection (3) above, the reference to the relevant part of the sum received on the withdrawal of a deposit is a reference to the following amount, that is to say--

(a) in a case where the sum received on the withdrawal is equal to or smaller than the amount of the liability discharged by the payment mentioned in subsection (1)(b) above, the amount equal to such part of the sum actually received as does not represent interest that has accrued under the relevant terms; and

(b) in any other case, to the amount which would have been the amount specified in paragraph (a) above if the sum actually received on the withdrawal had been equal to the amount of qualifying tax liability so discharged.

(5) The amount of compensation to which any person is entitled under this section shall also include an amount equal to interest, for the period from the withdrawal mentioned in subsection (1)(a) above until the payment of the compensation, on the amount determined in accordance with subsection (3) above; and a liability to compensation under this section shall not bear interest apart from in accordance with this subsection.

(6) Section 178 of the [1989 c. 26.] Finance Act 1989 (interest rates) shall apply to subsection (5) above for determining the rate of the interest treated, by virtue of that subsection, as included in any compensation under this section; and any regulations under that section which are in force at the passing of this Act shall be deemed, subject to the powers of the Treasury under that section, to have effect in relation to this section as they have effect in relation to the enactments specified in subsection (2)(f) of that section (interest on overdue tax).

(7) The part of any compensation under this section that represents interest under subsection (5) above shall not be treated as included in the income of the depositor for the purposes of income tax; but the remainder shall be chargeable to income tax under Case III of Schedule D.

(8) No compensation shall be paid under this section unless a claim for it has been made to the Board.

(9) Where any claim is made under this section with respect to any withdrawal for cash of a tax deposit--

(a) this section shall have effect if there is, in the period mentioned in subsection (1)(c) above, more than one such payment as is mentioned in subsection (1)(b) above as if (subject to paragraph (b) below) all the payments in that period were, for the purposes of that claim, to be aggregated and treated as one such payment; and

(b) the amount of compensation payable under this section on that claim shall be computed without regard to so much of any payment discharging a qualifying tax liability as, in pursuance of any claim under this section, has been or is to be so taken into account as to affect the amount of compensation payable in the case of any other withdrawal.

(10) Sums required by the Board for paying compensation under this section shall be issued to the Board by the Treasury out of the National Loans Fund.

(11) A withdrawal for cash of a tax deposit shall be taken for the purposes of this section to occur at the same time as, under the relevant terms, it is deemed to occur for the purposes of the calculation of interest on the amount withdrawn.

(12) This section shall be construed as one with the Tax Acts, and in this section--

(a) references to a tax deposit are references to the whole or any part of any deposit in respect of which a certificate of tax deposit has been issued by the Treasury under section 12 of the [1968 c. 13.] National Loans Act 1968; and

(b) references to the relevant terms, in relation to a tax deposit, are references to the terms applicable to that deposit and to the certificate issued in respect of it.

158 Amendment of the Exchequer and Audit Departments Act 1866

Section 10 of the [1866 c. 39.] Exchequer and Audit Departments Act 1866 (Commissioners of Customs and Excise and of Inland Revenue to deduct repayments from gross revenues) shall have effect, and be deemed always to have had effect, as if the reference in that section to repayments included references to--

(a) payments in respect of any actual or deemed credits relating to any tax or duty; and

(b) payments of any interest on sums which are or are deemed to be repayments for the purposes of that section.

159 Ports levy

(1) In Part I of the [1991 c. 52.] Ports Act 1991 (transfer of statutory port undertakings), after section 15 (duty to provide information for purposes of levy) insert--

" 15A Notice of assessment: supplementary provisions

(1) Where a notice of assessment has been served under section 14(2) above on a former relevant port authority ("the authority"), the authority may, within the period mentioned in section 14(3) above, by notice in writing request the appropriate Minister to reconsider the amount of the assessment.

The request shall set out the grounds on which the authority allege that the amount assessed is incorrect.

(2) If it appears to the Minister that there are reasonable grounds for believing that the amount of the assessment may be excessive, he may direct that section 14(3) and (4) above shall not apply to the whole amount of the assessment but only to such lesser amount as he may specify.

(3) If a request for reconsideration is duly made, the appropriate Minister shall reconsider the amount of the assessment and may confirm or reduce it.

An appeal lies to the High Court or, in Scotland, to the Court of Session as the Court of Exchequer in Scotland from any decision of the Minister under this subsection.

(4) The appropriate Minister may reconsider the amount of an assessment under section 14(2) above in any other case, if he thinks fit, and may confirm or reduce it.

(5) When the amount of the assessment is finally determined--

(a) if the amount of the assessment is less than the amount paid by the authority, the appropriate Minister shall make such payment to the authority as is required to put the authority in the same position as if the reduced amount had been specified in the original assessment;

(b) if a further amount is payable by the authority, section 14(3) and (4) above shall apply in relation to that amount as if the reference to the date of issue of the notice of assessment were a reference to the date of the determination.

(6) Except as provided by this section a notice of assessment under section 14(2) above shall not be questioned in any legal proceedings whatsoever. " .

(2) Sections 115 to 120 of the [1990 c. 29.] Finance Act 1990 (levy on privatisation of certain ports) shall cease to have effect.

(3) An Order in Council under paragraph 1(1)(b) of Schedule 1 to the [1974 c. 28.] Northern Ireland Act 1974 (legislation for Northern Ireland in the interim period) which states that it is made only for purposes corresponding to those of subsection (1) above--

(a) shall not be subject to paragraph 1(4) and (5) of that Schedule (affirmative resolution of both Houses of Parliament), but

(b) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(1) The Inland Revenue shall prepare and present to Treasury Ministers a report on tax simplification.

(2) The report shall be laid before Parliament and published before 31st December 1995.

(3) The report shall give--

(a) an account of recent tax legislation history;

(b) full details of recent annual additions to both primary and secondary legislation;

(d) the advantages and disadvantages of possible solutions including a Royal Commission on taxation and a tax law commission.

General

161 Interpretation

(1) In this Act "the Taxes Act 1988" means the [1988 c. 1.] Income and Corporation Taxes Act 1988.

(2) In Part III of this Act "the Management Act" means the [1970 c. 9.] Taxes Management Act 1970.

(3) Part V of this Act shall be construed as one with the [1891 c. 39.] Stamp Act 1891.

162 Repeals

The provisions specified in Schedule 29 to this Act (which include provisions which are already spent) are hereby repealed to the extent specified in the third column of that Schedule, but subject to any provision of that Schedule.

163 Short title

This Act may be cited as the Finance Act 1995.

SCHEDULES

Section 2.

SCHEDULE 1 Table of rates of duty on wine and made-wine

Part I Wine or made-wine of a strength 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.	23.41
Wine or made-wine of a strength exceeding 4 per cent. but not exceeding 5.5 per cent.	42.14
Wine or made-wine of a strength exceeding 5.5 per cent. but not exceeding 15 per cent. and not being sparkling	140.44
Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent. but not exceeding 15 per cent.	200.64
Wine or made-wine of a strength exceeding 15 per cent. but not exceeding 22 per cent.	200.64

Part II 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.	20.60

Section 5.

SCHEDULE 2 Denatured alcohol

The Alcoholic Liquor Duties Act 1979

1 In section 4(1) of the [1979 c. 4.] Alcoholic Liquor Duties Act 1979 (interpretation)--

(a) for the definition of "authorised methylator" there shall be substituted the following definition--

" "authorised denaturer" means a person authorised under section 75(1) below to denature dutiable alcoholic liquor; "

(b) in the definition of "British compounded spirits", for "methylated spirits" there shall be substituted "denatured alcohol";

" "denatured alcohol" means denatured alcohol within the meaning of section 5 of the Finance Act 1995, and references to denaturing a liquor are references to subjecting it to any process by which it becomes denatured alcohol; "

(d) for the definition of "licensed methylator" there shall be substituted the following definition--

" "licensed denaturer" means a person holding a licence under section 75(2) below; " .

2 Section 9 of that Act (remission of duty on spirits for methylation) shall cease to have effect.

3 In section 10 of that Act (remission of duty on spirits), for "methylated spirits" there shall be substituted "denatured alcohol".

4 In section 24(1)(a) of that Act (restriction on distiller or rectifier carrying on other trades), for "methylated spirits" there shall be substituted "denatured alcohol".

5 In sections 75, 77, 79 and 80 of that Act (which contain provisions regulating methylation)--

(a) for the words "methylate", "methylates", "methylator" and "methylators", wherever they occur, and for the word "methylated", where it occurs outside the expression "methylated spirits", there shall be substituted, respectively, "denature", "denatures", "denaturer", "denaturers" and "denatured";

(b) for the words "methylation" and "methylating", wherever they occur, there shall be substituted, in each case, "denaturing";

(c) for the word "spirits", wherever it occurs outside the expression "methylated spirits", there shall be substituted "dutiable alcoholic liquor";

(d) for the words "methylated spirits", wherever they occur, there shall be substituted "denatured alcohol".

6 In section 77(2) of that Act (provisions supplemental to powers to make regulations), after paragraph (a) there shall be inserted the following paragraph--

" (aa) frame any provision of the regulations with respect to the supply, receipt or use of denatured alcohol by reference to matters to be contained from time to time in a notice published in accordance with the regulations by the Commissioners and having effect until withdrawn in accordance with the regulations; and " .

7 For section 78 of that Act (additional provisions relating to methylated spirits) there shall be substituted the following section--

" 78 Defaults in respect of denatured alcohol.

(1) This subsection applies if, at any time when an account is taken and a balance struck of the quantity of any kind of denatured alcohol in the possession of an authorised or licensed denaturer, there is a difference between--

(a) the quantity ("the actual amount") of the dutiable alcoholic liquor of any description in the denatured alcohol in his possession; and

(b) the quantity ("the proper amount") of dutiable alcoholic liquor of that description which, according to any such accounts as are required to be kept by virtue of any regulations under section 77 above, ought to be in the denatured alcohol in his possession.

(2) Subsection (1) above shall not apply if the difference constitutes--

(a) an excess of the actual amount over the proper amount of not more than 1 per cent. of the aggregate of--

(i) the quantity of dutiable alcoholic liquor of the description in question in the balance of dutiable alcoholic liquor struck when an account was last taken; and

(ii) the quantity of dutiable alcoholic liquor of that description which has since been lawfully added to the denaturer's stock;

(b) a deficiency such that the actual amount is less than the proper amount by not more than 2 per cent. of that aggregate.

(3) If, where subsection (1) above applies, the actual amount exceeds the proper amount, the relevant amount of any dutiable alcoholic liquor of the description in question which is in the possession of the denaturer shall be liable to forfeiture; and for this purpose the relevant amount is the amount corresponding to the amount of the excess or such part of that amount as the Commissioners consider appropriate.

(4) If, where subsection (1) above applies, the actual amount is less than the proper amount, the denaturer shall, on demand by the Commissioners, pay on the amount of the deficiency, or on such part of it as the Commissioners may specify in the demand, the duty payable on dutiable alcoholic liquor of the description comprised in the deficiency.

(5) If any person--

(a) supplies to another, in contravention of any regulations under section 77 above, any denatured alcohol containing dutiable alcoholic liquor of any description, or

(b) uses any such denatured alcohol in contravention of any such regulations,

that person shall, on demand by the Commissioners, pay on the amount of dutiable alcoholic liquor of that description comprised, at the time of its supply or use, in the denatured alcohol that is so supplied or used, or on such part of it as the Commissioners may specify, the duty payable on dutiable alcoholic liquor of that description.

(6) Any supply of denatured alcohol to a person who--

(a) by virtue of any regulations under section 77 above is prohibited from receiving it unless authorised to do so by or under the regulations, and

(b) is not so authorised in the case of the denatured alcohol supplied to him,

shall be taken for the purposes of subsection (5) above to be a supply in contravention of those regulations.

(7) A demand made for the purposes of subsection (4) or (5) above shall be combined, as if there had been a default such as is mentioned in that section, with an assessment and notification under section 12 of the [1994 c. 9.] Finance Act 1994 (assessments to excise duty) of the amount of duty due in consequence of the making of the demand. "

The Finance Act 1994

8 In paragraph 3(1)(d) of Schedule 5 to the Finance Act 1994 (decisions under or for the purposes of section 9 or 10 of the [1979 c. 4.] Alcoholic Liquor Duties Act 1979 to be subject to review and appeal), for "section 9 or 10 (remission of duty on spirits for methylation or" there shall be substituted "section 10 (remission of duty on spirits".

Section 14.

SCHEDULE 3 Amusement Machine Licence Duty

Introductory

1 The [1981 c. 63.] Betting and Gaming Duties Act 1981 shall be amended in accordance with paragraphs 2 to 11 below.

Amusement machine licences

2 (1) In section 21 (gaming machine licences)--

(a) in subsection (1), for the words "gaming machine" and "for gaming" there shall be substituted, respectively, "amusement machine" and "for play";

(b) in subsection (2), for "a gaming machine licence" there shall be substituted "an amusement machine licence"; and

(2) In subsection (3A) of that section (excepted machines), for paragraph (b) there shall be substituted the following paragraphs--

" (b) a five-penny machine which is a prize machine without being a gaming machine or which (if it is a gaming machine) is a small-prize machine, or

Amusement machine licence duty

3 (1) In subsection (1) of section 22 (duty on gaming machine licences), for "gaming machine" there shall be substituted "amusement machine".

(2) In subsection (2) of that section (meaning of "small-prize machine"), for "a gaming machine is a small-prize machine if" there shall be substituted "an amusement machine is a small-prize machine if it is a prize machine and".

Rate of duty

4 (1) In subsection (1) of section 23 (determination of rate of duty by reference to Table), for "a gaming machine licence" there shall be substituted "an amusement machine licence".

(2) In subsection (2) of that section--

(a) in paragraph (b), for "or column 3" there shall be substituted ", column 3 or column 4"; and

(b) in the words after that paragraph, for the words "gaming" and "or the rate in column 3" there shall be substituted, respectively, "amusement" and ", the rate in column 3 or the rate in column 4".

(3) For the Table in that subsection (as substituted by section 13 of this Act) there shall be substituted the following Table--

TABLE

(1)	(2)	(3)	(4)
Period (in months) for which licence granted	Machines that are not gaming machines	Gaming machines that are small-prize machines or are five-penny machines without being small-prize machines	Other machines
	£	£	£
1	30	60	150
2	50	105	275
3	75	155	400
4	95	205	520
5	120	250	645
6	140	295	755
7	160	340	880
8	185	390	1,005
9	205	435	1,115
10	225	480	1,235
11	240	510	1,305
12	250	535	1,375

Restrictions on provision of machines

5 In section 24 (restrictions on provision of gaming machines)--

(a) for the words "Gaming machines", "gaming machines" and "gaming machine", wherever they occur, there shall be substituted, respectively, "Amusement machines", "amusement machines" and "amusement machine";

(b) for the word "a", where it occurs before "gaming machine" in subsection (5)(f), there shall be substituted "an"; and

Meaning of "amusement machine"

6 (1) For subsections (1) to (3) of section 25 (meaning of "gaming machine") there shall be substituted the following subsections--

" (1) A machine is an amusement machine for the purposes of this Act if--

(a) the machine is constructed or adapted for the playing of any game (whether a game of chance, a game of skill or a game of chance and skill combined);

(b) the game is one played by means of the machine (whether automatically or by the operation of the machine by the player or players);

(c) a player pays to play the game (except where he has an opportunity to play without payment as a result of having previously played successfully) either by inserting a coin or token into the machine or in some other way;

(d) the machine automatically--

-- Back --

Stat