Finance Act 1996 (c. 8)

(The document as of February, 2008)

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Finance Act 1996

1996 CHAPTER 8

ARRANGEMENT OF SECTIONS

Content

Part I

Excise Duties
1. Alcoholic liquor duties
  1. 1. Spirits: rate of duty.
  2. 2. Wine and made-wine: rates.
  3. 3. Cider: rate of duty.
2. Hydrocarbon oil duties
  1. 4. Rates of duty and rebate.
  2. 5. Misuse of rebated kerosene.
  3. 6. Mixing of rebated oil.
  4. 7. Marked oil used as fuel for road vehicles.
  5. 8. Relief for marine voyages.
3. Tobacco products duty
  1. 9. Rates of duty.
4. Betting duties: rates
  1. 10. General betting duty.
  2. 11. Pool betting duty.
5. Amusement machine licence duty
  1. 12. Licences for machines as well as premises.
6. Air passenger duty
  1. 13. Pleasure flights.
7. Vehicle excise duty
  1. 14. Increase in general rate.
  2. 15. Electrically propelled vehicles.
  3. 16. Steam powered vehicles etc.
  4. 17. Vehicles capable of conveying loads.
  5. 18. Old vehicles.
  6. 19. Old vehicles: further provisions.
  7. 20. Exemptions for vehicle testing: general.
  8. 21. Exemptions for vehicle testing in Northern Ireland.
  9. 22. Other provisions relating to Northern Ireland.
  10. 23. Licensing and registration.
8. Repeal of certain drawbacks and allowances
  1. 24. Repeal of certain drawbacks and allowances.
Part II

Value Added Tax
1. EC Second VAT Simplification Directive
  1. 25. EC Second VAT Simplification Directive.
  2. 26. Fiscal and other warehousing.
  3. 27. Value of imported goods.
  4. 28. Adaptation of aircraft and hovercraft.
  5. 29. Work on materials.
2. Other provisions relating to charges to VAT
  1. 30. Refunds in connection with construction and conversion.
  2. 31. Groups: anti-avoidance.
  3. 32. Supplies of gold etc.
  4. 33. Small gifts.
3. Payment and enforcement
  1. 34. Method of making payments on account.
  2. 35. Default surcharges.
  3. 36. Repeated misdeclaration penalty.
  4. 37. Penalties for failure to notify.
  5. 38. VAT invoices and accounting.
Part III

Landfill Tax
1. The basic provisions
  1. 39. Landfill tax.
  2. 40. Charge to tax.
  3. 41. Liability to pay tax.
  4. 42. Amount of tax.
2. Exemptions
  1. 43. Material removed from water.
  2. 44. Mining and quarrying.
  3. 45. Pet cemeteries.
  4. 46. Power to vary.
3. Administration
  1. 47. Registration.
  2. 48. Information required to keep register up to date.
  3. 49. Accounting for tax and time for payment.
  4. 50. Power to assess.
4. Credit
  1. 51. Credit: general.
  2. 52. Bad debts.
  3. 53. Bodies concerned with the environment.
5. Review and appeal
  1. 54. Review of Commissioners' decisions.
  2. 55. Appeals: general.
  3. 56. Appeals: other provisions.
  4. 57. Review and appeal: commencement.
6. Miscellaneous
  1. 58. Partnership, bankruptcy, transfer of business, etc.
  2. 59. Groups of companies.
  3. 60. Information, powers, penalties, etc.
  4. 61. Taxable disposals: special provisions.
  5. 62. Taxable disposals: regulations.
  6. 63. Qualifying material: special provisions.
7. Interpretation
  1. 64. Disposal of material as waste.
  2. 65. Disposal by way of landfill.
  3. 66. Landfill sites.
  4. 67. Operators of landfill sites.
  5. 68. Weight of material disposed of.
  6. 69. Taxable activities.
  7. 70. Interpretation: other provisions.
8. Supplementary
  1. 71. Orders and regulations.
Part IV

Income Tax, Corporation Tax and Capital Gains Tax
1. Chapter I
  
  Principal provisions
  1. Income tax charge, rates and reliefs
    1. 72. Charge and rates of income tax for 19961996-97.
    2. 73. Application of lower rate to income from savings.
    3. 74. Personal allowances for 1996-97.
    4. 75. Blind person's allowance.
    5. 76. Limit on relief for interest.
  2. Corporation tax charge and rate
    1. 77. Charge and rate of corporation tax for 1996.
    2. 78. Small companies.
  3. Abolition of Schedule C charge etc.
    1. 79. Abolition of Schedule C charge etc.
2. Chapter II
  
  Loan relationships
  1. Introductory provisions
    1. 80. Taxation of loan relationships.
    2. 81. Meaning of "loan relationship" etc.
  2. Taxation of profits and gains and relief for deficits
    1. 82. Method of bringing amounts into account.
    2. 83. Non-trading deficit on loan relationships.
  3. Computational provisions etc.
    1. 84. Debits and credits brought into account.
    2. 85. Authorised accounting methods.
    3. 86. Application of accounting methods.
    4. 87. Accounting method where parties have a connection.
    5. 88. Exemption from section 87 in certain cases.
    6. 89. Inconsistent application of accounting methods.
    7. 90. Changes of accounting method.
    8. 91. Payments subject to deduction of tax.
  4. Special cases
    1. 92. Convertible securities etc.
    2. 93. Relationships linked to the value of chargeable assets.
    3. 94. Indexed gilt-edged securities.
    4. 95. Gilt strips.
    5. 96. Special rules for certain other gilts.
    6. 97. Manufactured interest.
    7. 98. Collective investment schemes.
    8. 99. Insurance companies.
  5. Miscellaneous other provisions
    1. 100. Interest on judgments, imputed interest, etc.
    2. 101. Financial instruments.
    3. 102. Discounted securities: income tax provisions.
  6. Supplemental
    1. 103. Interpretation of Chapter.
    2. 104. Minor and consequential amendments.
    3. 105. Commencement and transitional provisions.
3. Chapter III
  
  Provisions relating to the Schedule E charge
  1. 106. Living accommodation provided for employees.
  2. 107. Beneficial loans.
  3. 108. Incidental benefits for holders of certain offices etc.
  4. 109. Charitable donations: payroll deduction schemes.
  5. 110. PAYE settlement agreements.
4. Chapter IV
  
  Share Options, Profit Sharing and Employee Share Ownership
  1. Share options
    1. 111. Amount or value of consideration for option.
    2. 112. Release and replacement.
  2. Savings-related share option schemes
    1. 113. Exercise of rights by employees of non-participating companies.
  3. Other share option schemes
    1. 114. Requirements to be satisfied by approved schemes.
    2. 115. Transitional provisions.
  4. Profit sharing schemes
    1. 116. The release date.
    2. 117. The appropriate percentage.
    3. 118. The appropriate allowance.
  5. Employee share ownership trusts
    1. 119. Removal of requirement for at least one year's service.
    2. 120. Grant and exercise of share options.
5. Chapter V
  
  Self Assessment, General Management etc.
  1. General
    1. 121. Returns and self assessment.
    2. 122. Notional tax deductions and payments.
    3. 123. Liability of partners.
    4. 124. Retention of original records.
    5. 125. Determination of tax where no return delivered.
    6. 126. PAYE regulations.
    7. 127. Repayment postponed pending completion of enquiries.
    8. 128. Claims for reliefs involving two or more years.
    9. 129. Claims for medical insurance and vocational training relief.
    10. 130. Procedure for giving notices.
    11. 131. Interest on overdue tax.
    12. 132. Overdue tax and excessive payments by the Board.
    13. 133. Claims and enquiries.
    14. 134. Discretions exercisable by the Board etc.
    15. 135. Time limits for claims etc.
    16. 136. Appeals.
  2. Companies
    1. 137. Schedules 13 and 16 to the Taxes Act 1988.
    2. 138. Accounting periods.
    3. 139. Surrenders of advance corporation tax.
  3. Chargeable gains
    1. 140. Transfer of company's assets to investment trust.
    2. 141. Roll-over relief.
    3. 142. Premiums for leases.
6. Chapter VI
  
  Miscellaneous provisions
  1. Reliefs
    1. 143. Annual payments under certain insurance policies.
    2. 144. Vocational training.
    3. 145. Personal reliefs for non-resident EEA nationals.
    4. 146. Exemptions for charities.
    5. 147. Withdrawal of relief for Class 4 contributions.
    6. 148. Mis-sold personal pensions etc.
    7. 149. Annual payments in residuary cases.
    8. 150. Income tax exemption for periodical payments of damages and compensation for personal injury.
  2. Taxation of benefits
    1. 151. Benefits under pilot schemes.
    2. 152. Jobfinder's grant.
  3. Investments
    1. 153. Foreign income dividends.
    2. 154. FOTRA securities.
    3. 155. Directions for payment without deduction of tax.
    4. 156. Paying and collecting agents etc.
    5. 157. Stock lending fees.
    6. 158. Transfers on death under the accrued income scheme.
    7. 159. Manufactured payments, repos, etc.
    8. 160. Investments in housing.
    9. 161. Venture capital trusts: control of companies etc.
  4. Insurance policies
    1. 162. Qualifying life insurance policies: certification.
  5. Insurance companies
    1. 163. Life assurance business losses.
    2. 164. Limits on relief for expenses.
    3. 165. Annual payments under insurance policies: deductions.
    4. 166. Equalisation reserves.
    5. 167. Industrial assurance business.
    6. 168. Capital redemption business.
    7. 169. Provisional repayments in connection with pension business.
    8. 170. Time for amending and enquiring into returns.
  6. Friendly societies
    1. 171. Life or endowment business.
  7. Personal pension schemes
    1. 172. Return of contributions on or after death of member.
  8. Participators in close companies
    1. 173. Loans to participators etc.
    2. Part V
      
      Inheritance tax
      1. 183. Rate bands.
      2. 184. Business property relief.
      3. 185. Agricultural property relief.
    3. Part VI
      
      Stamp Duty and Stamp Duty Reserve Tax
      1. Stamp duty
        186. Transfers of securities to members of electronic transfer systems etc.
      2. Stamp duty reserve tax
        187. Territorial scope of the tax.
        188. Removal of the two month period.
        189. Transfers to members of electronic transfer systems etc.
        190. Transfers between associated bodies.
        191. Stock lending and collateral security arrangements.
        192. Repayment or cancellation of tax.
        193. Depositary receipts.
        194. Rates of charge expressed as percentages.
        195. Regulations concerning administration: sub-delegation to the Board.
      3. Clearance services
        196. Election by operator for alternative system of charge.
    4. Part VII
      
      Miscellaneous and supplemental
      1. Miscellaneous: indirect taxation
        197. Setting of rates of interest.
      2. Miscellaneous: direct taxation
        198. Banks.
        199. Quotation or listing of securities.
        200. Domicile for tax purposes of overseas electors.
        201. Enactment of Inland Revenue concessions.
      3. Miscellaneous: other matters
        202. Gilt stripping.
        203. Modification of the Agriculture Act 1993.
      4. Supplemental
        204. Interpretation.
        205. Repeals.
        206. Short title.
    5. Schedules:
      1. Schedule 1
        
        Mixing of rebated oil.
      2. Schedule 2
        
        Vehicle licensing and registration.
      3. Schedule 3
        
        Value added tax: fiscal and other warehousing.
      4. Schedule 4
        
        Value added tax: anti-avoidance provisions.
      5. Schedule 5
        
        Landfill Tax.
        Part I
        
        Information.
        Part II
        
        Powers.
        Part III
        
        Recovery.
        Part IV
        
        Criminal Penalties.
        Part V
        
        Civil Penalties.
        Part VI
        
        Interest.
        Part VII
        
        Miscellaneous.
      6. Schedule 6
        
        Taxation of savings at the lower rate.
      7. Schedule 7
        
        Transfer of charge under Schedule C to Schedule D.
      8. Schedule 8
        
        Loan relationships: claims relating to deficits.
      9. Schedule 9
        
        Loan relationships: special computational provisions.
      10. Schedule 10
        
        Loan relationships: collective investment schemes.
      11. Schedule 11
        
        Loan relationships: special provisions for insurers.
        Part I
        
        Insurance companies.
        Part II
        
        Corporate members of Lloyd's.
      12. Schedule 12
        
        Meaning of debt contract or option.
      13. Schedule 13
        
        Discounted securities: income tax provisions.
      14. Schedule 14
        
        Loan relationships: minor and consequential amendments.
      15. Schedule 15
        
        Loan relationships: savings and transitional provisions.
        Part I
        
        Corporation tax.
        Part II
        
        Income tax and capital gains tax.
      16. Schedule 16
        
        Share option schemes approved before passing of this Act.
      17. Schedule 17
        
        Claims for relief involving two or more years.
      18. Schedule 18
        
        Overdue tax and excessive payments by the Board.
      19. Schedule 19
        
        Self-assessment: claims and enquiries.
      20. Schedule 20
        
        Self-assessment: discretions exercisable by the Board etc.
      21. Schedule 21
        
        Self-assessment: time limits.
      22. Schedule 22
        
        Self-assessment: appeals.
      23. Schedule 23
        
        Self-assessment: Schedules 13 and 16 to the Taxes Act 1988.
        Part I
        
        Schedule 13 to the Taxes Act 1988.
        Part II
        
        Schedule 16 to the Taxes Act 1988.
      24. Schedule 24
        
        Self-assessment: accounting periods etc.
        Part I
        
        Amendments of the Taxes Management Act 1970.
        Part II
        
        Other amendments.
      25. Schedule 25
        
        Self-assessment: surrenders of advance corporation tax.
      26. Schedule 26
        
        Damages and compensation for personal injury.
      27. Schedule 27
        
        Foreign income dividends.
      28. Schedule 28
        
        FOTRA securities: consequential amendments.
      29. Schedule 29
        
        Paying and collecting agents etc.
        Part I
        
        The new Chapter.
        Part II
        
        Other provisions.
      30. Schedule 30
        
        Investments in housing.
      31. Schedule 31
        
        Life assurance business losses.
      32. Schedule 32
        
        Equalisation reserves.
      33. Schedule 33
        
        Management expenses of capital redemption business.
      34. Schedule 34
        
        Provisional repayments in connection with pension business.
        Part I
        
        Amendments of Schedule 19AB to the Taxes Act 1988.
        Part II
        
        Amendments of Schedule 19AC to the Taxes Act 1988.
      35. Schedule 35
        
        Roll-over relief in respect of ships.
      36. Schedule 36
        
        Controlled foreign companies.
      37. Schedule 37
        
        Banks.
        Part I
        
        "Bank" re-defined for certain purposes.
        Part II
        
        Amendments of the Taxes Act 1988.
        Part III
        
        Other amendments.
      38. Schedule 38
        
        Quotation or listing of securities.
      39. Schedule 39
        
        Enactment of certain Inland Revenue extra-statutory concessions.
        Part I
        
        Income Tax and Corporation Tax.
        Part II
        
        Chargeable gains.
        Part III
        
        Stamp duty.
      40. Schedule 40
        
        Gilt stripping: taxation provisions.
      41. Schedule 41
        
        Repeals.
        Part I
        
        Hydrocarbon oil duty: relief for marine voyages.
        Part II
        
        Vehicle excise and registration.
        Part III
        
        Excise duties: repeal of drawbacks etc.
        Part IV
        
        Value Added Tax.
        Part V
        
        Income Tax, Corporation Tax and Capital Gains Tax.
        Part VI
        
        Inheritance Tax.
        Part VII
        
        Stamp duty and stamp duty reserve tax.
        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.

[29th April 1996]

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 Excise Duties

Alcoholic liquor duties

1 Spirits: rate of duty

(1) In section 5 of the [1979 c. 4.] Alcoholic Liquor Duties Act 1979 (spirits), for "£20.60" there shall be substituted "£19.78".

(2) This section shall be deemed to have come into force at 6 o'clock in the evening of 28th November 1995.

2 Wine and made-wine: rates

(1) In the Table of rates of duty in Schedule 1 to the Alcoholic Liquor Duties Act 1979 (wine and made-wine)--

(a) in Part I of the Table for "200.64", where it appears as the rate for wine or made-wine of a strength exceeding 15 per cent. but not exceeding 22 per cent., there shall be substituted "187.24"; and

(b) in Part II of that Table (wine or made-wine of a strength exceeding 22 per cent.), for "20.60" there shall be substituted "19.78".

(2) Paragraph (a) of subsection (1) above shall be deemed to have come into force on 1st January 1996 and paragraph (b) shall be deemed to have come into force at 6 o'clock in the evening of 28th November 1995.

3 Cider: rate of duty

(1) In subsection (1) of section 62 of the [1979 c. 4.] Alcoholic Liquor Duties Act 1979 (cider), for "rate of £23.78 per hectolitre" there shall be substituted "rates shown in subsection (1A) below."

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

" (1A) The rates at which the duty shall be charged are--

(a) £35.67 per hectolitre in the case of cider of a strength exceeding 7.5 per cent.; and

(b) £23.78 per hectolitre in any other case. "

(3) This section shall come into force on 1st October 1996.

Hydrocarbon oil duties

4 Rates of duty and rebate

(1) In section 6(1) of the [1979 c. 5.] Hydrocarbon Oil Duties Act 1979, for "£0.3614" (duty on light oil) and "£0.3132" (duty on heavy oil) there shall be substituted "£0.3912" and "£0.3430", respectively.

(2) In section 8(3) of that Act (duty on road fuel gas), for "£0.3314" there shall be substituted "£0.2817".

(3) In section 11(1) of that Act (rebate on heavy oil), for "£0.0166" (fuel oil) and "£0.0214" (gas oil) there shall be substituted "£0.0181" and "£0.0233", respectively.

(4) In subsection (1) of section 13A of that Act (rebate on unleaded petrol), for "the rate of £0.0482 a litre" there shall be substituted "the rate specified in subsection (1A) below"; and after that subsection there shall be inserted the following subsections--

" (1A) The rate of rebate shall be--

(a) £0.0150 a litre in the case of higher octane unleaded petrol; and

(b) £0.0482 a litre in any other case.

(1B) For the purposes of this section unleaded petrol is "higher octane" if--

(a) its research octane number is not less than 96 and its motor octane number is not less than 86;

(b) it is delivered for home use as petrol which satisfies the condition set out in paragraph (a) above;

(c) it is delivered for home use as petrol which is suitable to be used as fuel for engines for which leaded petrol is suitable by virtue of being leaded; or

(d) it is delivered for home use under such a description, or in such a manner, as tends, in the circumstances, to suggest that it is--

(i) petrol satisfying the condition set out in paragraph (a) above; or

(ii) petrol suitable to be used as fuel for engines for which leaded petrol is suitable by virtue of being leaded.

(1C) The method of testing unleaded petrol for ascertaining, for the purposes of this section, its research octane number or motor octane number shall be such as the Commissioners may direct. "

(5) In subsection (2) of that section (meaning of "unleaded"), for the words from "or, if" onwards there shall be substituted "; and petrol is "leaded" for the purposes of this section if it is not unleaded."

(6) In section 14(1) of that Act (rebate on light oil for use as furnace fuel), for "£0.0166" there shall be substituted "£0.0181".

(7) Subsections (1) to (3) and (6) above shall be deemed to have come into force at 6 o'clock in the evening of 28th November 1995; and subsection (4) above shall come into force on 15th May 1996.

5 Misuse of rebated kerosene

(1) The [1979 c. 5.] Hydrocarbon Oil Duties Act 1979 shall be amended as mentioned in subsections (2) to (5) below.

(2) In section 11(1) (rebate on heavy oil), for "and 13" there shall be substituted "13, 13AA and 13AB".

(3) In section 12(2) (restriction on use of rebated heavy oil for road vehicles), after "allowed" there shall be inserted "(whether under section 11(1) above or 13AA(1) below)".

(4) After section 13 there shall be inserted the following sections--

" 13AA Restrictions on use of rebated kerosene

(1) If, on the delivery of kerosene for home use, it is intended to use the kerosene as fuel for--

(a) an engine provided for propelling an excepted vehicle, or

(b) an engine which is used neither for propelling a vehicle nor for heating,

a declaration shall be made to that effect and thereupon rebate shall be allowed at the rate for rebated gas oil which is then in force, instead of at the rate then in force under section 11(1)(c) above.

(2) Subject to subsection (3) below, no kerosene on whose delivery for home use a rebate at the rate given by section 11(1)(c) above has been allowed shall--

(a) be used as fuel for an engine provided for propelling an excepted vehicle;

(b) be used as fuel for an engine which is used neither for propelling a vehicle nor for heating; or

(3) Subsection (2) above does not apply to any quantity of kerosene in respect of which there has been paid to the Commissioners an amount equal to duty on the same quantity of gas oil at the rate for rebated gas oil which is in force at the time of the payment.

(4) A payment under subsection (3) above shall be made in accordance with regulations made under section 24(1) below for the purposes of this section.

(5) For the purposes of this section and section 13AB below--

"excepted vehicle" means a vehicle which is an excepted vehicle under any provision of Schedule 1 to this Act; and
"kerosene" means heavy oil of which more than 50 per cent. by volume distils at a temperature of 240°C or less.

(6) For the purposes of this section and section 13AB below the rate for rebated gas oil which is in force at any time is the rate of duty which at that time is in force under section 6(1) above in the case of heavy oil as reduced by the rate of rebate allowable at that time under section 11(1)(b) above.

13AB Penalties for misuse of kerosene

(1) If a person uses kerosene in contravention of section 13AA(2) above--

(a) the Commissioners may recover from him, in respect of the quantity of kerosene used, an amount equal to duty on the same quantity of gas oil at the rate for rebated gas oil which is in force at the time of the contravention;

(b) his use of the kerosene shall attract a penalty under section 9 of the [1994 c. 9.] Finance Act 1994 (civil penalties); and

(2) If a person is liable for kerosene being taken into a fuel supply of an engine in contravention of section 13AA(2) above--

(a) the Commissioners may recover from him, in respect of the quantity of kerosene taken into the fuel supply, an amount equal to duty on the same quantity of gas oil at the rate for rebated gas oil which is in force at the time of the contravention;

(b) his becoming so liable shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties); and

(c) if he has the relevant intent in relation to the kerosene being taken into the fuel supply, he shall be guilty of an offence.

(3) For the purposes of subsection (2) above, a person is liable for kerosene being taken into a fuel supply of an engine if at the time--

(a) he has the charge of the engine; or

(b) subject to subsection (4) below, he is the owner of the engine.

(4) If a person other than the owner is for the time being entitled to possession of the engine, that other person and not the owner is liable.

(5) If--

(a) a person supplies kerosene having reason to believe that it will be put to a particular use, and

(b) that use is one which, if a payment is not made under subsection (3) of section 13AA above, will contravene subsection (2) of that section,

his supplying the kerosene shall attract a penalty under section 9 of the [1994 c. 9.] Finance Act 1994 (civil penalties) and, if he makes the supply with the relevant intent, he shall be guilty of an offence.

(6) In this section "the relevant intent" means the intent that the restrictions imposed by section 13AA(2) above shall be contravened.

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

(a) on summary conviction, to a penalty of the statutory maximum, or to imprisonment for a term not exceeding 6 months, or to both;

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

(8) Any kerosene falling within subsection (9) or (10) below is liable to forfeiture.

(9) Kerosene falls within this subsection if it is taken into a fuel supply in contravention of section 13AA(2) above.

(10) Kerosene falls within this subsection if--

(a) it has been supplied in circumstances in which there is reason to believe that it will be put to a particular use; and

(b) that use is one which, if payment is not made under subsection (3) of section 13AA above, will contravene subsection (2) of that section. "

(5) In section 24 (control of use of duty-free and rebated oil)--

(a) in subsection (1), after "section 13A" there shall be inserted "section 13AA"; and

(b) in subsection (2), after "section 12" there shall be inserted "or section 13AA".

(6) This section shall have effect in relation to cases where kerosene is--

(a) used as fuel, or

(b) taken into a fuel supply,

on or after such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.

6 Mixing of rebated oil

(1) The [1979 c. 5.] Hydrocarbon Oil Duties Act 1979 shall be amended as mentioned in subsections (2) to (4) below.

(2) In section 20 (contaminated or accidentally mixed oil), after subsection (3) there shall be inserted the following subsection--

" (4) The power to make a payment to a person under subsection (2) above in relation to oils that have become accidentally mixed does not apply in relation to a mixture in respect of which he is liable to pay duty under section 20AAA below. "

(3) After section 20A there shall be inserted the following sections--

" 20AAA Mixing of rebated oil

(1) Where--

(a) a mixture which is leaded or unleaded petrol is produced in contravention of Part I of Schedule 2A to this Act, and

(b) the mixture is not produced as a result of approved mixing,

a duty of excise shall be charged on the mixture.

(2) Where--

(a) a mixture of heavy oils is produced in contravention of Part II of Schedule 2A to this Act,

(b) the mixture is not produced as a result of approved mixing, and

a duty of excise shall be charged on the mixture.

(3) The person liable to pay the duty charged under subsection (1) above is the person producing the mixture.

(4) The person liable to pay the duty charged under subsection (2) above is the person supplying the mixture.

(5) The Commissioners may exempt a person from liability to pay duty charged under this section in respect of the production or supply of a mixture if they are satisfied--

(a) that the mixture has been produced or (as the case may be) supplied accidentally; and

(b) that, having regard to all the circumstances, the person should be exempted from liability to pay the duty.

(6) Part III of Schedule 2A to this Act makes provision with respect to rates and amounts of duty charged under this section.

(7) In this section--

"approved mixing" has the meaning given by section 20A(5) above; and
"excepted vehicle" means a vehicle which is an excepted vehicle under any provision of Schedule 1 to this Act.

20AAB Mixing of rebated oil: supplementary

(1) A person who--

(a) produces a mixture on which duty is charged under section 20AAA(1) above, or

(b) supplies a mixture on which duty is charged under section 20AAA(2) above,

must notify the Commissioners that he has done so within the period of seven days beginning with the date on which he produced or (as the case may be) supplied the mixture.

(2) A person is not required to give a notification under subsection (1) above if, before he produced or (as the case may be) supplied the mixture, he notified the Commissioners that he proposed to do so.

(3) Notification under subsection (1) or (2) above must be given in such form and in such manner, and must contain such particulars, as the Commissioners may direct.

(4) Subject to subsection (7) below, where it appears to the Commissioners--

(a) that a person has produced or supplied a mixture on which duty is charged under section 20AAA above, and

(b) that he is the person liable to pay the duty,

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

(5) An assessment under subsection (4) above shall be treated as if it were an assessment under section 12(1) of the [1994 c. 9.] Finance Act 1994.

(6) The Commissioners may give a direction that a person who is, or expects to be, liable to pay duty charged under section 20AAA above--

(a) shall account for duty charged under that section by reference to such periods ("accounting periods") as may be determined by or under the direction;

(b) shall make, in relation to accounting periods, returns in such form and at such times and containing such particulars as may be so determined;

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