Finance Act 1998

Publication Date:January 01, 1998
 
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Finance Act 1998

1998 CHAPTER 36

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.

[31st July 1998]

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:—

I Excise Duties

Part I

Excise Duties

Alcoholic liquor duties

Alcoholic liquor duties

S-1 Rate of duty on beer.

1 Rate of duty on beer.

(1) In section 36(1) of the Alcoholic Liquor Duties Act 1979 (rate of duty on beer), for ‘11.14’ there shall be substituted ‘11.50’

(2) This section shall come into force on 1st January 1999

S-2 Adjustment of rates of duty on sparkling liquors.

2 Adjustment of rates of duty on sparkling liquors.

(1) The Alcoholic Liquor Duties Act 1979 shall be amended as follows

(2) In Part I of the Table of rates of duty in Schedule 1, in column 2 of the fourth entry (rate of duty per hectolitre on sparkling wine or made-wine of a strength exceeding 5.5 per cent. but less than 8.5 per cent.), for ‘201.50’ there shall be substituted ‘161.20’

(3) In section 62(1A)(a) (rate of duty per hectolitre on sparkling cider of a strength exceeding 5.5 per cent.), for ‘37.54’ there shall be substituted ‘45.05’

(4) This section shall be deemed to have come into force at 6 o'clock in the evening of 17th March 1998

S-3 Rates of duty on wine and made-wine.

3 Rates of duty on wine and made-wine.

(1) For Part I of the Table of rates of duty in Schedule 1 to the Alcoholic Liquor Duties Act 1979 (wine and made-wine of a strength not exceeding 22 per cent.) there shall be substituted—

Description of wine or made-wine

Part I

Description of wine or made-wine

Rates of duty per hectolitre

Wine or made-wine of a strength not exceeding 4 per cent.

46.01

Wine or made-wine of a strength exceeding 4 per cent. but not exceeding 5.5 per cent.

63.26

Wine or made-wine of a strength exceeding 5.5 per cent. but not exceeding 15 per cent. and not being sparkling

149.28

Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent. but less than 8.5 per cent.

161.20

Sparkling wine or sparkling made-wine of a strength of 8.5 per cent. or of a strength exceeding 8.5 per cent. but not exceeding 15 per cent.

213.27

Wine or made-wine of a strength exceeding 15 per cent. but not exceeding 22 per cent.

199.03

(2) This section shall come into force on 1st January 1999.

S-4 Rates of duty on cider.

4 Rates of duty on cider.

(1) In section 62(1A) of the Alcoholic Liquor Duties Act 1979 (rates of duty on cider), for paragraphs (b) and (c) there shall be substituted the following paragraphs—

‘(b) 37.92 per hectolitre in the case of cider of a strength exceeding 7.5 per cent. which is not sparkling cider; and

(c) 25.27 per hectolitre in any other case.’

(2) This section shall come into force on 1st January 1999.

S-5 Drawback of excise duty on beer.

5 Drawback of excise duty on beer.

(1) Section 42 of the Alcoholic Liquor Duties Act 1979 (drawback on exportation, shipment as stores etc.) shall cease to have effect.

(2) Subsection (1) above shall come into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.

Hydrocarbon oil duties

S-6 Charge on production without delivery.

6 Charge on production without delivery.

(1) In section 6 of the Hydrocarbon Oil Duties Act 1979—

(a) for ‘subsections (2) and’ there shall be substituted ‘subsection’; and

(b) the words from ‘and delivered’ to ‘above’ shall be omitted.

(2) For subsection (2) of that section there shall be substituted the following subsections—

(2) Where—

(a) imported hydrocarbon oil is removed to relevant premises,

(b) the oil undergoes a production process at those premises or any other relevant premises, and

(c) any duty charged on the importation of the oil has not become payable at any time before the production time,

the duty charged on importation shall not become payable at any time after the production time.

(2AA) In subsection (2) above—

'the production time' means the time at which the oil undergoes the production process; and

'relevant premises' means—

(a) a refinery,

(b) other premises used for the production of hydrocarbon oil; or

(c) premises of such other description as may be specified in regulations made by the Commissioners.

(2AB) For the purposes of subsection (2) above, oil undergoes a production process if—

(a) hydrocarbon oil of another description is obtained from it, or

(b) it is subjected to any process of purification or blending.’

(3) The preceding provisions of this section shall come into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.

S-7 Rates of duties and rebates.

7 Rates of duties and rebates.

(1) In section 6(1A) of the Hydrocarbon Oil Duties Act 1979 (rates of duty on hydrocarbon oil)—

(a) in paragraph (a) (light oil), for ‘0.4510’ there shall be substituted ‘0.4926’;

(b) in paragraph (b) (ultra low sulphur diesel), for ‘0.3928’ there shall be substituted ‘0.4299’; and

(c) in paragraph (c) (heavy oil that is not ultra low sulphur diesel), for ‘0.4028’ there shall be substituted ‘0.4499’.

(2) In section 11(1) of that Act (rebate on heavy oil)—

(a) in paragraph (a) (fuel oil), for ‘0.0200’ there shall be substituted ‘0.0218’; and

(b) in each of paragraphs (b) and (ba) (gas oil which is not ultra low sulphur diesel and ultra low sulphur diesel), for ‘0.0258’ there shall be substituted ‘0.0282’.

(3) In section 13A(1A) of that Act (rebate on unleaded petrol)—

(a) in paragraph (a) (higher octane unleaded petrol), for ‘0.0150’ there shall be substituted ‘0.0050’; and

(b) in paragraph (b) (other unleaded petrol), for ‘0.0482’ there shall be substituted ‘0.0527’.

(4) In section 14(1) of that Act (rebate on light oil for use as furnace fuel), for ‘0.0200’ there shall be substituted ‘0.0218’.

(5) This section shall be deemed to have come into force at 6 o'clock in the evening of 17th March 1998.

S-8 Ultra low sulphur diesel.

8 Ultra low sulphur diesel.

(1) In section 1 of the Hydrocarbon Oil Duties Act 1979 , for subsection (6) (meaning of ‘ultra low sulphur diesel’) there shall be substituted the following subsection—

(6) 'Ultra low sulphur diesel' means gas oil—

(a) the sulphur content of which does not exceed 0.005 per cent. by weight or is nil;

(b) the density of which does not exceed 835 kilograms per cubic metre at a temperature of 15 C; and

(c) of which not less than 95 per cent. by volume distils at a temperature not exceeding 345 C.’

(2) This section shall be deemed to have come into force at 6 o'clock in the evening of 17th March 1998.

S-9 Mixtures of heavy oils.

9 Mixtures of heavy oils.

(1) In section 20AAA of the Hydrocarbon Oil Duties Act 1979 (charge to duty on mixtures of oils), after subsection (2) there shall be inserted the following subsection—

(2A) Where—

(a) a mixture of heavy oils is produced in contravention of Part IIA 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) In subsection (3) of that section, after ‘subsection (1)’ there shall be inserted ‘or (2A)’.

(3) In section 20AAB of that Act (supplementary provisions about mixing of oils), in subsection (1), after ‘section 20AAA(1)’ there shall be inserted ‘or (2A)’.

(4) In Schedule 2A to that Act (mixtures of oils to which duty applies), after paragraph 7 there shall be inserted the following—

Tobacco products duty

‘Part IIa

(7A) 7A. A mixture of heavy oils is produced in contravention of this paragraph if such a mixture is produced by mixing—

(a) ultra low sulphur diesel in respect of which, on its delivery for home use, a declaration was made that it was intended for use as fuel for a road vehicle; and

(b) heavy oil of any other description in respect of which, on its delivery for home use, such a declaration was made.’

(5) In paragraph 9 of that Schedule (rate of duty for mixtures of heavy oil), after sub-paragraph (1) there shall be inserted the following sub-paragraph—

(1A) Subject to paragraph 10 below, duty charged under subsection (2A) of section 20AAA of this Act shall be charged at the rate for heavy oil in force at the time when the mixture is produced.’

(6) This section shall be deemed to have come into force at 6 o'clock in the evening of 17th March 1998.

Tobacco products duty

S-10 Rates of tobacco products duty.

10 Rates of tobacco products duty.

(1) For the Table of rates of duty in Schedule 1 to the Tobacco Products Duty Act 1979 there shall be substituted—

Gaming duty

TABLE

1. Cigarettes

An amount equal to 22 per cent. of the retail price plus 77.09 per thousand cigarettes.

2. Cigars

114.79 per kilogram.

3. Hand-rolling tobacco

87.74 per kilogram.

4. Other smoking tobacco and chewing tobacco

50.47 per kilogram.

(2) This section shall come into force on 1st December 1998.

Gaming duty

S-11 Rates of gaming duty.

11 Rates of gaming duty.

(1) For the Table in section 11(2) of the Finance Act 1997 (rates of gaming duty) there shall be substituted the following table—

Part of gross gaming yield

Table

Part of gross gaming yield

Rate

The first 450,000

212 per cent

The next 1,000,000

1212 per cent

The...

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