ukpga/2001/9 — Finance Act 2001

Finance Act 2001 2001 c. 9 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. [11th May 2001] 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 1 EXCISE DUTIES Hydrocarbon oil duties Rates of duty on hydrocarbon oil 1 1 In section 6(1A) of the Hydrocarbon Oil Duties Act 1979 (c. 5) (rates of duty on hydrocarbon oil)— a in paragraph (a) (ultra-low sulphur petrol), for “£0.4782” substitute “ £0.4582 ” ; and b in paragraph (c) (ultra-low sulphur diesel), for “£0.4882” substitute “ £0.4582 ” . 2 That subsection shall have effect until midnight on 14th June 2001 as if for paragraph (b) (other light oil) there were substituted— ba £0.5268 in the case of unleaded petrol other than ultra low sulphur petrol; bb £0.5468 in the case of light oil not within paragraph (a) or (ba) above; . After that, paragraph (b) shall have effect as it did before. 3 In section 8(3) of the Hydrocarbon Oil Duties Act 1979 (c. 5) (rate of duty on road fuel gas) for “£0.1500” substitute “ £0.0900 ” . 4 This section shall be deemed to have come into force at 6 o’clock in the evening of 7th March 2001. Rebate on unleaded petrol 2 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 In paragraph 1(1) of Schedule 2A to that Act (converting unleaded petrol into leaded petrol)— a for paragraphs (a) and (b) substitute— ab adding lead to unleaded petrol in respect of which a rebate has been allowed under section 13A; ; and b in paragraph (c)— i for “paragraph (a)” substitute “ paragraph (aa) ” , and ii for “paragraph (b)” substitute “ paragraph (ab) ” . 3 For paragraph 2A of that Schedule (mixing different kinds of unleaded petrol) substitute— 2A 1 A mixture which is unleaded petrol is produced in contravention of this paragraph if the mixture is produced by mixing— a petrol on which duty has been paid at the rate specified in section 6(1A)(a), and b petrol in respect of which a rebate has been allowed under section 13A, and the mixture produced is unleaded petrol that is not ultra low sulphur petrol. 2 This paragraph is subject to any direction given under paragraph 3. . 4 In paragraph 8 of that Schedule (rate of duty on mixtures of light oil), for sub-paragraph (3A) substitute— 3A In the case of a mixture produced in contravention of paragraph 2A above, the rate is that produced by deducting from the rate in force under section 6(1A)(b) at the time the mixture is produced the rebate which at that time is in force under section 13A. . 5 This section shall be deemed to have come into force at 6 o’clock in the evening of 7th March 2001. Fuel-testing pilot projects 3 1 In the Hydrocarbon Oil Duties Act 1979 (c. 5), after section 20AA insert— Power to allow reliefs for fuel testing etc 20AB 1 The Commissioners may by regulations make provision allowing reliefs as regards excise duty charged in respect of experimental fuel where— a the fuel is, or is to be, used for the purposes of a fuel-testing project that is approved by the Commissioners, b the project is approved for the purposes of the development of the fuel (see subsection (8)(a) below), and c the use takes place, or is to take place, during the period that, for the purposes of the project, is the relief period for the fuel (see subsection (8)(b) below). 2 In this section “ experimental fuel ” means a substance of a description specified in regulations made by the Commissioners. 3 For each experimental fuel, the Commissioners shall by regulations make provision specifying— a the beginning and end of the period that is the experimental period for that fuel; and b the form that (subject to any directions under subsection (9)(a) below) is to be taken by relief under this section as regards excise duty chargeable on that fuel. 4 A form of relief specified under subsection (3)(b) above must be an authorised form; and for the purposes of this section “ an authorised form ” is— a a repayment, or b a rebate (or extra rebate). 5 Relief under this section shall be allowed— a to the extent specified in, or determined in accordance with, regulations under subsection (1) above, and b subject to— i such conditions as the Commissioners may impose, and ii any directions under subsection (9)(b) below. 6 The conditions that may be imposed under subsection (5)(b)(i) above include, in particular, conditions in connection with— a the collection, keeping, compilation or analysis, or b the supply to the Commissioners or other persons, of data, or information, relating to the production, use or performance of an experimental fuel. 7 Subsections (8) and (9) below apply where the Commissioners have approved a fuel-testing project. 8 The Commissioners shall give directions specifying— a each experimental fuel for the purposes of whose development the project is approved; b for each fuel specified under paragraph (a) above, the beginning and end of the period that, for the purposes of the project, is (in accordance with subsection (10) below) the relief period for the fuel; and c any conditions imposed under subsection (5)(b)(i) above that apply to the allowance under this section of relief as regards excise duty chargeable in respect of an experimental fuel used, or to be used, for the purposes of the project. 9 The Commissioners may give directions— a providing for relief as regards excise duty chargeable in respect of an experimental fuel used, or to be used, for the purposes of the project to take an authorised form different to the form specified under subsection (3)(b) above; b as to administration in connection with allowing reliefs under this section as regards excise duty chargeable in respect of an experimental fuel used, or to be used, for the purposes of the project. 10 For the purposes of subsection (8)(b) above— a the beginning of the relief period for a fuel may not be earlier than the beginning of the experimental period for that fuel; and b the end of the relief period for a fuel may not be later than the end of the experimental period for that fuel. 11 In this section— “ excise duty ” means— excise duty chargeable by virtue of this Act, or any addition to such duty by virtue of section 1 of the Excise Duties (Surcharges or Rebates) Act 1979 (c. 8); “ fuel-testing project ” means a pilot project connected with the technological development of environment-friendly fuels. 12 Regulations under this section may make different provision for different cases. . 2 In section 24(1) of the Hydrocarbon Oil Duties Act 1979 (c. 5) (regulations for the purposes of provisions providing for rebates etc. ), after “section 19A” insert “ , section 20AB ” . 3 In section 27(1) of the Hydrocarbon Oil Duties Act 1979 (interpretation), in the definition of “rebate”, for “or 14” substitute “ , 14 or 20AB ” . 4 In section 12B(1)(h) of the Finance Act 1994 (c. 9) (excise duty reliefs that may be recovered under section 12A when wrongly given), after “allowed to a person by virtue of section 20AA” insert “ or 20AB ” . Tobacco products duty Rates of tobacco products duty 4 1 For the Table of rates of duty in Schedule 1 to the Tobacco Products Duty Act 1979 (c. 7) substitute— TABLE 1. Cigarettes An amount equal to 22 per cent. of the retail price plus 92.25 per thousand cigarettes. 2. Cigars 134.69 per kilogram. 3. Hand-rolling tobacco 96.81 per kilogram. 4. Other smoking tobacco and chewing tobacco 59.21 per kilogram. 2 This section shall be deemed to have come into force at 6 o’clock in the evening of 7th March 2001. Alcoholic liquor duties Dilution etc. of cider 5 In section 62(5) of the Alcoholic Liquor Duties Act 1979 (c. 4) (regulations providing for the management of the duty on cider), after paragraph (d) insert— e regulating and, in such circumstances as may be prescribed in the regulations, prohibiting the addition of substances to, the mixing of, or the carrying out of other operations on or in relation to, cider. . Betting and gaming duties General betting duty 6 1 Schedule 1 to this Act (which makes provision about general betting duty) has effect. 2 This section shall come into force in accordance with such provision as the Commissioners of Customs and Excise may make by order made by statutory instrument. Rates of gaming duty 7 1 For the table in section 11(2) of the Finance Act 1997 (c. 16) (rates of gaming duty) substitute— TABLE Part of gross gaming yield Rate The first £484,500 2.5 per cent. The next £1,076,000 12.5 per cent. The next £1,076,000 20 per cent. The next £1,883,500 30 per cent. The remainder 40 per cent. 2 This section has effect in relation to accounting periods beginning on or after 1st April 2001. Vehicle excise duty Threshold for reduced general rate 8 1 In paragraph 1 of Schedule 1 to the Vehicle Excise and Registration Act 1994 (c. 22) (rate of duty applicable where no other rate specified), in sub-paragraphs (2) and (2A) for “1,200 cubic centimetres” (the reduced rate threshold) substitute “ 1,549 cubic centimetres ” . This amendment applies to licences issued on or after 1st July 2001. 2 Refunds shall be made by the Secretary of State, in accordance with the following provisions of this section, in respect of licences— a issued in the period beginning with 1st November 2000 and ending with 30th June 2001, and b not surrendered before the end of that period, where the amount of vehicle excise duty chargeable on the licence would have been less if the amendment in subsection (1) had applied. 3 The amount of the refund is— a £55 for a 12 month licence, and b £27.50 for a 6 month licence. 4 The person entitled to the refund is— a in the case of a licence in force on 30th June 2001, the keeper of the vehicle on that date; b in the case of a licence that has ceased to be in force before that date, the keeper of the vehicle when the licence expired. 5 For the purposes of subsection (4) the keeper of the vehicle shall be taken to be— a the person registered as keeper of the vehicle on the date in question, or b if the Secretary of State has received notification of a change of ownership of the vehicle as a result of which another person is on that date entitled to be registered as the new keeper of the vehicle, that person. 6 A refund shall only be made if an application is made for it in such form, and containing such particulars and supported by such documents, as the Secretary of State may require. 7 The Secretary of State shall give notice in writing to any person appearing to him to be entitled to a refund— a informing him that he appears to be entitled to a refund, b enclosing an application form, and c specifying the particulars and supporting documents to be provided. 8 An application for, or the making of, a refund under this section in respect of a licence does not affect the validity of the licence. 9 For the purposes of section 19 of the Vehicle Excise and Registration Act 1994 (c. 22) (surrender of licences) as it applies to the surrender on or after 1st July 2001 of a licence in respect of which a refund under this section has been made, or applied for, the annual rate of duty chargeable on the licence shall be taken to be that which would have been chargeable if the amendment in subsection (1) above had applied. 10 Section 45 of that Act (offence of false or misleading declaration) applies to a declaration in connection with an application for a refund under this section as it applies to a declaration in connection with an application for a vehicle licence. 11 In the application of this section to Northern Ireland, references to registration as the keeper of a vehicle shall be read as references to registration as the owner of the vehicle. 12 This section shall come into force on 1st July 2001. Rates of duty for goods vehicles 9 1 Schedule 2 to this Act (which makes provision for new rates of vehicle excise duty for goods vehicles etc.) has effect. 2 The provisions of that Schedule apply in relation to licences issued on or after 1st December 2001. Rates of duty for vehicles used for exceptional loads 10 1 Part 6 of Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of vehicle excise duty: vehicles used for exceptional loads) is amended as follows. 2 In paragraph 6(2A)(a) (vehicles not satisfying reduced pollution requirements), for “£5,170” substitute “ £2,585 ” . 3 In paragraph 6(2A)(b) (vehicles satisfying reduced pollution requirements), for “£4,170” substitute “ £2,085 ” . 4 The provisions of this section apply in relation to licences issued on or after 1st December 2001. Rates of duty for recovery vehicles 11 1 In Part 5 of Schedule 1 to the Vehicle Excise and Registration Act 1994 (c. 22) (annual rates of vehicle excise duty: recovery vehicles), paragraph 5(1) is amended as follows. 2 For paragraphs (a) and (b) substitute— a if it has a revenue weight exceeding 3,500 kilograms and not exceeding 25,000 kilograms, the same as the basic goods vehicle rate; . 3 In paragraph (c) (vehicle with revenue weight exceeding 25,000 kilograms charged at 500 per cent of basic goods vehicle rate), for “500” substitute “ 250 ” . 4 The provisions of this section apply in relation to licences issued on or after 1st December 2001. Mobile pumping vehicles 12 1 Part 4 of Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty: special vehicles) is amended as follows. 2 In paragraph 4(2), after paragraph (d) insert— dd mobile pumping vehicle, . 3 In paragraph 4, after sub-paragraph (5) insert— 5A In sub-paragraph (2)(dd) “ mobile pumping vehicle ” means a vehicle— a which is constructed or adapted for use and used for the conveyance of a pump and a jib satisfying the requirements specified in sub-paragraph (5B), b which is used on public roads only— i when the vehicle is stationary and the pump is being used to pump material from a point in the immediate vicinity to another such point, or ii for the purpose of proceeding to and from a place where the pump is to be or has been used, and c which, when so proceeding, does not carry— i the material that is to be or has been pumped, or ii any other load except such as is necessary for the propulsion or equipment of the vehicle or for the operation of the pump. 5B The requirements are that each of the pump and the jib is— a built in as part of the vehicle, and b designed so that material pumped by the pump is delivered to a desired height or depth through piping that— i is attached to the pump and the jib, and ii is raised or lowered to that height or depth by operation of the jib. . 4 In paragraph 1A (old vehicles) of Schedule 2 to the Vehicle Excise and Registration Act 1994 (exempt vehicles)— a in sub-paragraph (2)(b)(ii) (mobile cranes etc. not exempt vehicles under paragraph 1A), after “mobile crane,” insert “ mobile pumping vehicle, ” , and b in sub-paragraph (5) (definitions), after “mobile crane” insert “ , mobile pumping vehicle ” . 5 The amendments made by subsections (2) to (4) apply to licences issued after the day on which this Act is passed. 6 Where— a a licence was issued on or before that day for a mobile pumping vehicle (within the meaning given by the paragraph 4(5A) inserted by subsection (3)) on the basis that the vehicle was a mobile crane (within the meaning given by paragraph 4(5) of Schedule 1 to the Vehicle Excise and Registration Act 1994 (c. 22)), and b vehicle excise duty was paid accordingly, the vehicle shall be deemed to have been a mobile crane at any time on or before that day when the licence was in force (but this does not affect proceedings in any court that were concluded on or before that day). Exemption of agricultural etc. vehicles 13 1 In Schedule 2 to the Vehicle Excise and Registration Act 1994 (exempt vehicles), after paragraph 20A insert— Tractors 20B 1 A vehicle is an exempt vehicle if it is— a an agricultural tractor, or b an off-road tractor. 2 In sub-paragraph (1) “ agricultural tractor ” means a tractor used on public roads solely for purposes relating to agriculture, horticulture, forestry or activities falling within sub-paragraph (3). 3 The activities falling within this sub-paragraph are— a cutting verges bordering public roads; b cutting hedges or trees bordering public roads or bordering verges which border public roads. 4 In sub-paragraph (1) “ off-road tractor ” means a tractor which is not an agricultural tractor (within the meaning given by sub-paragraph (2)) and which is— a designed and constructed primarily for use otherwise than on roads, and b incapable by reason of its construction of exceeding a speed of twenty-five miles per hour on the level under its own power. Light agricultural vehicles 20C 1 A vehicle is an exempt vehicle if it is a light agricultural vehicle. 2 In sub-paragraph (1) “ light agricultural vehicle ” means a vehicle which— a has a revenue weight not exceeding 1,000 kilograms, b is designed and constructed so as to seat only the driver, c is designed and constructed primarily for use otherwise than on roads, and d is used solely for purposes relating to agriculture, horticulture or forestry. Agricultural engines 20D An agricultural engine is an exempt vehicle. Mowing machines 20E A mowing machine is an exempt vehicle. Steam powered vehicles 20F A steam powered vehicle is an exempt vehicle. Electrically propelled vehicles 20G An electrically propelled vehicle is an exempt vehicle. Snow ploughs 20H A vehicle is an exempt vehicle when it is— a being used, b going to or from the place where it is to be or has been used, or c being kept for use, for the purpose of clearing snow from public roads by means of a snow plough or similar device (whether or not forming part of the vehicle). Gritters 20J A vehicle is an exempt vehicle if it is constructed or adapted, and used, solely for the conveyance of machinery for spreading material on roads to deal with frost, ice or snow (with or without articles or material used for the purposes of the machinery). . 2 In Part 2 of Schedule 1 to the Vehicle Excise and Registration Act 1994 (c. 22) (annual rates of duty: motorcycles), paragraph 2 is amended as follows— a in sub-paragraph (1)(a) (rate of duty for electrically propelled motorcycles etc.), omit “or the motorcycle is an electrically propelled vehicle”, and b in sub-paragraph (3), in the definition of “motorcycle”, after “motortricycle” insert “ but does not include an electrically propelled vehicle ” . 3 Part 4A of Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty: special concessionary vehicles) shall cease to have effect. 4 The amendments made by subsections (1) to (3) and (13) apply to licences issued on or after 1st April 2001. 5 Subsection (6) applies where a licence— a is issued before 1st April 2001 for a relevant vehicle, and b is in force on 1st April 2001 or comes into force after 1st April 2001. 6 The licence shall, during the period— a beginning with the later of 1st April 2001 and the day when it comes into force, and b ending with the expiry of the period for which it is issued, be deemed to be a nil licence for the purposes of the Vehicle Excise and Registration Act 1994 (c. 22). 7 A refund shall be made by the Secretary of State, in accordance with the following provisions of this section, in respect of a licence for a relevant vehicle that— a is issued before 1st March 2001, in force on 1st March 2001 and not surrendered before 1st April 2001, b is issued before 1st March 2001, comes into force after 1st March 2001 and is not surrendered before 1st April 2001, or c is issued in March 2001 and not surrendered before 1st April 2001. 8 The amount of the refund is one-twelfth of the annual rate of duty chargeable on the licence for— a in the case of a licence issued before 1st March 2001, each whole month after February 2001 that forms part of the period for which the licence was issued, and b in the case of a licence issued on or after 1st March 2001, each whole month of the period for which the licence is issued. 9 The person entitled to the refund is the person registered as the keeper of the relevant vehicle on 30th April 2001. 10 The provisions of sections 10(2) and 19 of the Vehicle Excise and Registration Act 1994 (surrender of licences) do not apply to a licence in respect of which a person is entitled to a refund under this section. 11 In the application of this section to Northern Ireland, references to registration as the keeper of a vehicle shall be read as references to registration as the owner of the vehicle. 12 In subsections (5) to (9) “ relevant vehicle ” means a vehicle of any of the descriptions mentioned in the paragraphs 20B to 20J inserted by subsection (1). 13 For section 16(1) of the Finance Act 1996 (c. 8) substitute— 1 Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty) is amended as follows. . 14 This section shall be deemed to have come into force on 1st April 2001. Surrender of vehicle licences 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . General Payments by Commissioners in case of error or delay 15 Schedule 3 to this Act (which allows or requires the Commissioners of Customs and Excise to make payments in cases of error or delay in relation to excise duty) has effect. Part 2 AGGREGATES LEVY Charging provisions Charge to aggregates levy 16 1 A tax , to be known as aggregates levy, shall be charged in accordance with this Part on aggregate subjected to commercial exploitation. 2 The charge to the levy shall arise whenever a quantity of taxable aggregate is subjected, on or after the commencement date, to commercial exploitation in England, Wales or Northern Ireland . 3 The person charged with the levy arising on any occasion on a quantity of aggregate subjected to commercial exploitation shall be the person responsible for its being so subjected on that occasion. 4 The levy shall be charged at the rate of £2.16 per tonne of aggregate subjected to commercial exploitation; and the amount of levy charged on a part of a tonne of aggregate shall be the proportionately reduced amount. 5 The levy shall be under the care and management of the Commissioners of Customs and Excise (in this Part referred to as “ the Commissioners ”). 6 In this Part “ the commencement date ” means such date as the Treasury may by order made by statutory instrument appoint for the purposes of this section. Meanings of “aggregate” and “taxable aggregate” 17 1 In this Part “ aggregate ” means (subject to section 18 below) any rock, gravel or sand, together with whatever substances are for the time being incorporated in the rock, gravel or sand or naturally occur mixed with it. 2 For the purposes of this Part any quantity of aggregate is, in relation to any occasion on which it is subjected to commercial exploitation, a quantity of taxable aggregate except to the extent that— a it is exempt under this section; b it has previously been used for construction purposes (whether before or after the commencement date); c it is, or derives from, any aggregate that has already been subjected to a charge to aggregates levy; ca it has on or after the day appointed under section 18(4) of the Scotland Act 2016 (and prior to being moved to England, Wales or Northern Ireland) been removed from a relevant Scottish site to premises in Scotland of a person carrying on a business in Scotland; cb it has— i on or after the day appointed under section 18(4) of the Scotland Act 2016 been removed from a site in England, Wales or Northern Ireland that falls within section 19(2) in relation to that quantity of aggregate, and ii subsequently been moved to premises in Scotland of a person carrying on a business in Scotland, prior to being moved to the place in England, Wales or Northern Ireland where it is subjected to commercial exploitation; d it is aggregate that on the commencement date is on a site other than- i its originating site, or ii a site that is required to be registered under the name of a person who is the operator, or one of the operators, of that originating site. 3 For the purposes of this Part aggregate is exempt under this section if— a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c it consists wholly of aggregate won— i by being removed from the bed of any river, canal or watercourse (whether natural or artificial) or of any channel in or approach to any port or harbour (whether natural or artificial); and ii in the course of the carrying out of any dredging undertaken exclusively for the purpose of creating, restoring, improving or maintaining that river, canal, watercourse, channel or approach; d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . da . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e it consists wholly of the spoil, waste or other by-products , not including the overburden, resulting from the extraction or other separation from any quantity of aggregate of any china clay or ball clay; ... f it consists wholly of the spoil from any process by which— i coal, lignite or slate ..., or ii a substance listed in section 18(3) below, has been separated from other rock after being extracted or won with that other rock ; or g it consists wholly of aggregate won by being removed from the ground on the site of any or any proposed structure, or the site of any or any proposed infrastructure relating to transportation or utilities, in the course of excavations lawfully carried out— i in connection with, and necessary for, the construction, modification, maintenance or improvement of the structure or infrastructure, and ii not for the purpose of extracting that aggregate. 3A In subsection (2)(ca) the reference to premises in Scotland does not include any premises located at a site that is a relevant Scottish site in relation to the quantity of aggregate. 4 For the purposes of this Part a quantity of any aggregate shall be taken to be a quantity of aggregate that is exempt under this section if it consists wholly or mainly of any one or more of the following, or is part of anything so consisting, namely— a coal, lignite or slate ...; b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c the spoil or waste from, or other by-products of— i any industrial combustion process, or ii the smelting or refining of metal; d the drill-cuttings resulting from any operations carried out in accordance with a licence granted under the Petroleum Act 1998 (c. 17) or the Petroleum (Production) Act (Northern Ireland) 1964 ...; e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . f clay, soil or vegetable or other organic matter. 5 For the purposes of this section aggregate subjected to exploitation in England, Wales or Northern Ireland is aggregate that has already been subjected to a charge to aggregates levy if, and only if— a there has been a previous occasion on which a charge to aggregates levy on that aggregate has arisen; and b at least some of the aggregates levy previously charged on that aggregate is either— i levy in respect of which there is or was no entitlement to a tax credit; or ii levy in respect of which any entitlement to a tax credit is or was an entitlement to a tax credit of an amount less than the amount of the levy charged on it. 6 For the purposes of subsection (5)(b) above, any credit the entitlement to which arises in a case which— a falls within section 30(1)(c) below , 30A or 30B , and b is prescribed for the purposes of this subsection, shall be disregarded. 7 In this section— “ coal ” has the same meaning as in the Coal Industry Act 1994 (c. 21); and ... “ relevant Scottish site ”, in relation to a quantity of aggregate, means a site in Scotland that falls within section 19(2) in relation to that quantity of aggregate, or would so fall if in section 20(1)(a)— the reference to England, Wales or Northern Ireland included Scotland, and the reference to relevant waters included Scottish waters. Exempt processes 18 1 In this Part references to aggregate— a include references to the spoil, waste, off-cuts and other by-products resulting from the application of any exempt process to any aggregate; but b do not include references to anything else resulting from the application of any such process to any aggregate. 2 In this Part “ exempt process ” means— a the cutting of any rock to produce stone with one or more flat surfaces ; b any process by which a relevant substance is extracted or otherwise separated (whether as part of the process of winning it from any land or otherwise) from any aggregate; c any process for the production of lime or cement from limestone or from limestone and anything else . ca in the case of aggregate consisting of shale, any process consisting of a use of the shale that— i is not a use of it as material or support in the construction or improvement of any structure, and ii is not mixing it with anything as part of the process of producing mortar, concrete, tarmacadam, coated roadstone or any similar construction material. 3 In this section “ relevant substance ” means any of the following— a anhydrite; b ball clay; c barytes; d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e china clay; f feldspar; g fireclay; h . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i fluorspar; j fuller’s earth; k gems and semi-precious stones; l gypsum; m any metal or the ore of any metal; n muscovite; o perlite; p potash; q pumice; r rock phosphates; s sodium chloride; t talc; u vermiculite. 4 The Treasury may by order made by statutory instrument— a modify the list of substances in subsection (3) above by adding any substance to that list or by removing any substance from it; and b make any such transitional provision in connection with the modification of that list under this subsection as they may think fit. 5 The Treasury shall not make an order under subsection (4) above by virtue of which any substance ceases to be a relevant substance unless a draft of the order has been laid before Parliament and approved by resolution of the House of Commons. 6 A statutory instrument containing an order under subsection (4) above that has not had to be approved in draft for the purposes of subsection (5) above shall be subject to annulment in pursuance of a resolution of the House of Commons. Commercial exploitation 19 1 For the purposes of this Part a quantity of aggregate is subjected to exploitation if, and only if— a it is removed from a site in England, Wales or Northern Ireland falling within subsection (2) below; aa it is removed to a place in England, Wales or Northern Ireland from a site in Scotland that falls within subsection (2) below, or would fall within that subsection if in subsection (1)(a) of section 20 (originating sites)— i the reference to England, Wales or Northern Ireland included Scotland, and ii the reference to relevant waters were to United Kingdom waters. b it becomes subject to an agreement to supply it to any person; c it is used for construction purposes; or d it is mixed, otherwise than in permitted circumstances, with any material or substance other than water. 2 The sites which, in relation to any quantity of aggregate, fall within this subsection are— a the originating site of the aggregate; b any site which is not the originating site of the aggregate but is registered under the name of a person under whose name that originating site is also registered ; c any site not falling within paragraph (a) or (b) above to which the quantity of aggregate had been removed for the purpose of having an exempt process applied to it on that site but at which no such process has been applied to it. 3 For the purposes of this Part the exploitation to which a quantity of aggregate is subjected shall be taken to be commercial exploitation if, and only if— a it is subjected to exploitation in the course or furtherance of a business carried on by the person, or one of the persons, responsible for subjecting it to exploitation; b the exploitation to which it is subjected does not consist in its removal from one registered site to another in a case where both sites are registered under the name of the same person; c the exploitation to which it is subjected does not consist in or require its removal to a registered site for the purpose of having an exempt process applied to it on that site; d the exploitation to which it is subjected does not consist in or require its removal to any premises for the purpose of having china clay or ball clay extracted or otherwise separated from it on that site; and e the exploitation to which it is subjected is not such that, as a result and without its being subjected to any process involving its being mixed with any other substance or material (apart from water), it again becomes part of the land at the original site by virtue of it being used for a purpose connected with winning aggregate or other minerals from the site . 3A For the purposes of subsection (3)(a) above “ business ” includes any activity of a Government department, local authority or charity. 3B For the purposes of subsection (3)(e), in relation to a quantity of aggregate, “ the original site ” means the site from which it was won. 4 Subsection (4A) applies where, at the time when any aggregate is won from any site, a person (“ P ”) is in occupation for relevant purposes of— a that site, or b that site and other land. 4A Where this subsection applies, so long as the site mentioned in subsection (4), or that site and the other land, continue to be occupied by P for relevant purposes, subsection (3)(e) has effect as if— a (where relevant) the reference to the land at the original site included the other land, and b the words “by virtue of it being used for a purpose connected with winning aggregate or other minerals from the site” were omitted. 4B For the purposes of subsections (4) and (4A) relevant purposes are— a the purposes of the carrying on of any agricultural business, or b the purposes of the carrying on of any forestry business or otherwise for the purposes of forestry . 5 For the purposes of this Part where a quantity of aggregate is subjected to exploitation, the exploitation shall be taken to be in England, Wales or Northern Ireland if, and only if— a the aggregate is in England, Wales or Northern Ireland or relevant waters when it is subjected to exploitation , or b the exploitation falls within subsection (1)(aa). 5A The Treasury may by regulations made by statutory instrument make further provision with regard to the circumstances in which the subjection of a quantity of aggregate to commercial exploitation is to be taken to occur in England, Wales or Northern Ireland, including provision amending this section or any other provision of this Part. 6 For the purposes of this section a quantity of aggregate becomes subject to an agreement to supply it to any person— a except to the extent that it is not separately identifiable at the time when the agreement is entered into, at that time; and b to that extent, at the time when it is appropriated to the agreement; but references in this Part to the supply of a quantity of aggregate do not include references to any supply which is effected, or is to be effected, by the transfer or creation of any interest or right in or over land. 7 For the purposes of this section a quantity of aggregate is mixed with a material or substance in permitted circumstances if— a the material or substance with which it is mixed consists wholly of a quantity of taxable aggregate that has not previously been subjected to commercial exploitation in England, Wales or Northern Ireland ; and b the mixing takes place on a site which, in a case where it falls within subsection (2) above in relation to any part of the aggregate included in the mixture, so falls in relation to every part of it. 8 A statutory instrument containing regulations under subsection (5A) may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons. Originating sites 20 1 In this Part references, in relation to any aggregate, to its originating site are references (subject to subsection (2) below)— a in the case of aggregate which has been won from the seabed of any area of sea in England, Wales or Northern Ireland or relevant waters . . ., to the site where it is first landed after being so won; b in the case of aggregate which results from the application of an exempt process to any aggregate . . ., to the site where that process was so applied; c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . d in any other case, to the site from which the aggregate was won or, as the case may be, from which it was most recently won. 2 Where any aggregate which is on its originating site on the commencement date has been mixed before that date with aggregate the originating site of which would (but for this subsection) be different, the site where the mixture is situated on that date shall be deemed for the purposes of this Part to be the originating site of all the aggregate comprised in the mixture. Operators of sites 21 1 For the purposes of this Part the persons operating a site are each of the following— a the person who occupies the site; and b if a person other than the occupier exercises any right to exercise control over aggregate on that site, that other person; and “ operator ”, in relation to a site, shall be construed accordingly. 2 In subsection (1) above the reference to exercising control over aggregate on a site is a reference to doing any of the following, that is to say— a winning aggregate from land at that site; b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c carrying out any exempt process at that site; d storing aggregate at that site. Responsibility for exploitation of aggregate 22 1 Subject to subsection (2) below, the persons who shall be taken for the purposes of this Part to be responsible for subjecting a quantity of aggregate to exploitation are each of the following— a in a case of the exploitation of a quantity of aggregate by its removal from its originating site or from a connected site, the operator of that site; b in a case of the exploitation of a quantity of aggregate by its removal from a site falling within section 19(2)(c) above, the operator of the site and (if different) the owner of the aggregate at the time when the removal takes place; c in a case of the exploitation of a quantity of aggregate— i by its being subjected, at a time when it is not on its originating site or a connected site, to any agreement, or ii by its being used at such a time for construction purposes, the person agreeing to supply it or using it for construction purposes; d in a case of the exploitation of a quantity of aggregate— i by its being subjected, at a time when it is on its originating site or a connected site, to any agreement, or ii by its being used at such a time for construction purposes, the person mentioned in paragraph (c) above and (if different) the operator of that site; e in a case of the exploitation of a quantity of aggregate by its being mixed at premises that are not comprised in its originating site or a connected site with any material or substance, the owner of the aggregate at the time when the mixing takes place and the occupier of the premises where it takes place; f in a case of the exploitation of a quantity of aggregate by its being mixed at its originating site or a connected site with any material or substance, the owner of the aggregate at the time when the mixing takes place and (if different) the operator of the site. 2 A person who is responsible for subjecting a quantity of aggregate to exploitation shall not be taken for the purposes of this Part to be responsible for subjecting it to commercial exploitation unless that takes place in the course or furtherance of a business carried on by him. For the purposes of this subsection “ business ” includes any activity of a Government department, local authority or charity. 3 Where by virtue of this section more than one person is charged with aggregates levy, their liabilities under this Part as persons charged with the levy shall be joint and several. 4 In this section “ connected site ”, in relation to any quantity of aggregate, means any site that falls in relation to that quantity of aggregate within section 19(2)(b). Weight of aggregate 23 1 The Commissioners may make regulations for determining the weight of any aggregate for the purposes of aggregates levy. 2 The regulations may— a prescribe rules for determining the weight; b authorise rules for determining the weight to be specified by the Commissioners in a prescribed manner; c authorise rules for determining the weight to be agreed between the person charged with the levy and a person acting under the authority of the Commissioners. 3 The regulations may, in particular, provide for the rules prescribed or authorised under the regulations to include rules about— a the method by which the weight is to be determined; b the time by reference to which the weight is to be determined; c the discounting of constituents (such as water). 4 The regulations may include provision that rules specified by virtue of subsection (2)(b) above— a are to have effect only in such cases as may be described in the rules; and b are not to have effect in particular cases unless the Commissioners are satisfied that such conditions as may be set out in the rules are met in those cases. 5 Conditions for which provision is made by virtue of subsection (4)(b) above may be framed by reference to such factors as the Commissioners think fit (such as the consent, in a particular case, of a person acting under the authority of the Commissioners). 6 The regulations may include provision that— a where rules are agreed as mentioned in subsection (2)(c) above, and b the Commissioners believe that they should no longer be applied (whether because they do not give an accurate indication of the weight or are not being fully observed or for some other reason), the Commissioners may direct that the agreed rules shall no longer have effect. Administration and enforcement The register 24 1 It shall be the duty of the Commissioners to establish and maintain a register of persons who are required to be registered for the purposes of aggregates levy. 2 A person is required to be registered for the purposes of aggregates levy if he— a carries out taxable activities, and b is not exempted from registration by regulations under subsection (4) below. 3 For the purposes of subsection (2) above a person carries out a taxable activity if a quantity of aggregate is subjected to commercial exploitation in England, Wales or Northern Ireland in circumstances in which he is responsible for its being so subjected. 4 The Commissioners may by regulations provide for persons carrying out taxable activities to be, to such extent and subject to such conditions or restrictions as may be prescribed, either— a exempt from the requirement of registration; or b exempt from such obligations or liabilities imposed by or under this Part on persons required to be registered for the purposes of aggregates levy as may be prescribed. 5 The Commissioners shall keep such information in the register as they consider it appropriate so to keep for the purposes of the care and management of aggregates levy. 6 In particular, where it appears to the Commissioners that any person is operating or using any premises, or intends to operate or use any premises— a for winning any aggregate, b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c for applying an exempt process to any aggregate, ca for mixing, otherwise than in permitted circumstances (within the meaning given by section 19(7)), any aggregate with any material or substance other than water, d for storing any aggregate, or e for the first landing in England, Wales or Northern Ireland of aggregate won from the seabed of any area of sea in the United Kingdom or United Kingdom waters, they may, if they think fit, register those premises, in any entry relating to that person and under his name, as a registered site. 7 Where any premises are registered in accordance with subsection (6) above as a registered site, the particulars included in the register shall set out as the boundaries of the site such boundaries as appear to the Commissioners best to secure that avoidance of levy is not facilitated by the registration of any part of any premises that is not used or operated as mentioned in subsection (6) above. 8 Where any entry in the register at any time specifies that any premises registered under a person’s name as a registered site are to be taken to be the originating site of— a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b any aggregate resulting from the carrying out of any exempt process there, or c any aggregate won or landed there, any question for the purposes of this Part as to the boundaries at that time of the originating site of any such aggregate shall be conclusively determined in accordance with that entry. 9 Schedule 4 to this Act (provisions with respect to registration for the purposes of aggregates levy) shall have effect. 10 The preceding provisions of this section and the provisions of Schedule 4 to this Act shall come into force on such date as the Treasury may by order made by statutory instrument appoint; and different days may be appointed under this subsection for different purposes. Returns and payment of levy 25 1 The Commissioners may by regulations make provision— a for persons charged with aggregates levy to be liable to account for it by reference to such periods (“ accounting periods ”) as may be determined by or under the regulations; b for persons who are or are required to be registered for the purposes of aggregates levy to be subject to such obligations to make returns for those purposes for such periods, at such times and in such form as may be so determined; and c for persons who are required to account for aggregates levy for any period to become liable to pay the amounts due from them at such times and in such manner as may be so determined. 2 Without prejudice to the generality of the powers conferred by subsection (1) above, regulations under this section may contain provision— a for aggregates levy falling in accordance with the regulations to be accounted for by reference to one accounting period to be treated in prescribed circumstances, and for prescribed purposes, as levy due for a different period; b for the correction of errors made when accounting for aggregates levy by reference to any period; c for the entries to be made in any accounts in connection with the correction of any such errors and for the financial adjustments to be made in that connection; d for a person, for purposes connected with the making of any such entry or financial adjustment, to be required to provide to any prescribed person, or to retain, a document in the prescribed form containing prescribed particulars of the matters to which the entry or adjustment relates; e for enabling the Commissioners, in such cases as they may think fit, to dispense with or relax a requirement imposed by regulations made by virtue of paragraph (d) above; f for the amount of levy which, in accordance with the regulations, is treated as due for a later period than that by reference to which it should have been accounted for to be treated as increased by an amount representing interest at the rate applicable under section 197 of the Finance Act 1996 (c. 8) for such period as may be determined in accordance with the regulations. 3 Subject to the following provisions of this section, if any person (“ the taxpayer ”) fails— a to comply with so much of any regulations under this section as requires him, at or before a particular time, to make a return for any accounting period, or b to comply with so much of any regulations under this section as requires him, at or before a particular time, to pay an amount of aggregates levy due from him, he shall be liable to a penalty of £250. 4 Liability to a penalty under subsection (3) above shall not arise if the taxpayer satisfies the Commissioners or, on appeal, an appeal tribunal— a that there is a reasonable excuse for the failure to make the return or to pay the levy in accordance with regulations; and b that there is not an occasion after the last day on which the return or payment was required by the regulations to be made when there was a failure without reasonable excuse to make it. 5 Where, by reason of any failure falling within paragraph (a) or (b) of subsection (3) above— a a person is convicted of an offence (whether under this Act or otherwise), or b a person is assessed to a penalty under paragraph 7 of Schedule 6 to this Act (penalty for evasion) or a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007 (penalties for errors) , that person shall not, by reason of that failure, be liable also to a penalty under that subsection (3). 6 In subsection (1)(b) above the reference to a person who is required to be registered for the purposes of aggregates levy includes a reference to a person who would be so required but for any exemption conferred by regulations under section 24(4) above. Security for levy 26 1 Where it appears to the Commissioners necessary to do so for the protection of the revenue they may require any person who is or is required to be registered to give security, or further security, for the payment of any aggregates levy which is or may become due from him. 2 The power of the Commissioners to require any security, or further security, under this section shall be a power to require security, or further security, of such amount and in such manner as they may determine. 3 A person who is responsible for any aggregate being subjected to commercial exploitation in England, Wales or Northern Ireland is guilty of an offence if, at the time it is so subjected— a he has been required to give security under this section; and b he has not complied with that requirement. 4 A person guilty of an offence under this section shall be liable, on summary conviction, to a penalty of level 5 on the standard scale £20,000 . 5 Sections 145 to 155 of the Customs and Excise Management Act 1979 (c. 2) (proceedings for offences, mitigation of penalties and certain other matters) shall apply in relation to an offence under this section as they apply in relation to offences and penalties under the customs and excise Acts. 6 In subsection (1) above the reference to a person who is required to be registered for the purposes of aggregates levy includes a reference to a person who would be so required but for any exemption conferred by regulations under section 24(4) above. Recovery and interest 27 Schedule 5 to this Act (which makes provision for the recovery of amounts of aggregates levy due from any person and for the interest payable on such amounts) shall have effect. Evasion, misdeclaration and neglect 28 Schedule 6 to this Act (which makes provision for and in connection with the imposition of criminal and civil penalties for the evasion of aggregates levy and for related misconduct) shall have effect. Information and evidence 29 Schedule 7 to this Act (which provides for the supply of information to the Commissioners, for the powers under which the Commissioners may collect information for enforcement purposes and about evidence) shall have effect. Credits and repayments Credit for aggregates levy 30 1 The Commissioners may, in accordance with the following provisions of this section, by regulations make provision in relation to cases where, after a charge to aggregates levy has arisen on any quantity of aggregate— a any of that aggregate is exported from the United Kingdom , from a place in England, Wales or Northern Ireland, in the form of aggregate; aa any of that aggregate is moved to Scotland, or to the sea adjacent to Scotland, in the form of aggregate; b an exempt process is applied to any of that aggregate; c any of that aggregate is used in a prescribed industrial or agricultural process; d any of that aggregate is disposed of (by dumping or otherwise) in such manner not constituting its use for construction purposes as may be prescribed; or e the whole or any part of a debt due to a person responsible for subjecting the aggregate to commercial exploitation is written off in his accounts as a bad debt. 2 The provision that may be made in relation to any such case as is mentioned in subsection (1) above is provision— a for such person as may be specified in the regulations to be entitled to a tax credit in respect of any aggregates levy charged on the aggregate in question; b for a tax credit to which any person is entitled under the regulations to be brought into account when he is accounting for aggregates levy due from him for such accounting period or periods as may be determined in accordance with the regulations; and c for a person entitled to a tax credit to be entitled, in any prescribed case where he cannot bring the tax credit into account so as to set it against a liability to aggregates levy, to a repayment of levy of an amount so determined. 3 Regulations under this section may contain any or all of the following provisions— a provision making any entitlement to a tax credit conditional on the making of a claim by such person, within such period and in such manner as may be prescribed; b provision making entitlement to bring a tax credit into account, or to receive a repayment in respect of such a credit, conditional on compliance with such requirements as may be determined in accordance with the regulations; c provision requiring a claim for a tax credit to be evidenced and quantified by reference to such records and other documents as may be so determined; d provision requiring a person claiming any entitlement to a tax credit to keep, for such period and in such form and manner as may be so determined, those records and documents and a record of such information relating to the claim as may be so determined; e provision for the withdrawal of a tax credit where any requirement of the regulations is not complied with; f provision for interest at the rate applicable under section 197 of the Finance Act 1996 (c. 8) to be treated as added, for such period and for such purposes as may be prescribed, to the amount of any tax credit; g provision for anything falling to be determined in accordance with the regulations to be determined by reference to a general or specific direction given in accordance with the regulations by the Commissioners. 4 Without prejudice to the generality of the preceding provisions of this section, regulations under this section may also contain— a provision for ascertaining whether, when and to what extent an amount is to be taken for the purposes of any regulations under this section to have been written off in any accounts as a bad debt; b provision requiring a person who for the purposes of any such regulations is taken to have written off any amount as a bad debt to keep, for such period and in such form and manner as may be prescribed, information relating to anything subsequently paid in respect of the amount written off; c provision for the withdrawal of the whole or an appropriate part of any tax credit relating to an amount taken to have been written off as a bad debt where the whole or any part (or further part) of the amount written off is subsequently paid; d provision for ascertaining whether, and to what extent, anything received by any person is to be taken as a payment of, or of a part of, an amount taken, for the purposes of any regulations under this section, to have been written off; e provision for determining the value for the purposes of provision made by virtue of paragraph (d) above of things received otherwise than in the form of money. 5 Regulations made under this section shall have effect subject to the provisions of section 32 below. 6 In subsection (1)(aa) the reference to the sea adjacent to Scotland is to so much of the territorial sea adjacent to the United Kingdom as is to be treated as adjacent to Scotland for the purposes of the Scotland Act 1998 (see section 126(2) of that Act). Transitional tax credit in Northern Ireland 30A 1 The Commissioners may by regulations make provision of the kind described in section 30(2) above (entitlement to tax credit) in relation to cases within subsection (2) below. 2 The cases are those where a charge to aggregates levy has arisen on a quantity of aggregate which has been subjected to commercial exploitation during a prescribed period. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 The amount of a tax credit to which a person is entitled under the regulations must not be more than 80% of any aggregates levy charged on the aggregate in question. 5 Regulations under this section may in particular make provision— a for a person to be entitled to a tax credit under the regulations in respect of aggregate originating from a site in respect of which any person holds an aggregates levy credit certificate which has not been withdrawn; b for an aggregates levy credit certificate to be issued to a person in respect of a site only if an aggregates levy credit agreement is in force in respect of the site; c for the withdrawal of an aggregates levy credit certificate where the aggregates levy credit agreement in respect of which it was issued is no longer in force; d for the form and content of aggregates levy credit certificates and aggregates levy credit agreements. 6 Regulations under this section which make provision such as is mentioned in subsection (5)(d) above may be framed by reference to any provisions of a notice published by the Commissioners in pursuance of the regulations and not withdrawn by a further notice. 7 If regulations under this section make provision such as is mentioned in subsection (5) above, the Commissioners or the Northern Ireland Department may— a enter into aggregates levy credit agreements; b issue and withdraw aggregates levy credit certificates; c take such other steps as the Commissioners or the Northern Ireland Department consider appropriate in relation to aggregates levy credit agreements and aggregates levy credit certificates. 8 Regulations under this section which make provision such as is mentioned in subsection (5) above must include provision requiring the Northern Ireland Department to inform the Com