Details of the Schedule
4.Paragraph (2) inserts new subsections into section 42 of FA 1996 and makes consequential amendments accommodate the introduction of those new subsections. Subparagraphs (2) and (3) insert sections 42(3A) and 42(3B) into FA 1996; these provide that a new category of material referred to “qualifying fines” is to be eligible for the lower rate of landfill tax, and that fines are to be treated as “qualifying fines” if they are comprised of a mixture of materials specified in an order. Subparagraphs (4) and (5) make consequential amendments to section 42 of FA 1996 accommodate the insertion of the new subsections 42(3A) and 42(3B).
5.Paragraph (3) makes a consequential amendment to section 63 of FA 1996.
6.Paragraph (4) inserts a new section 63A into FA 1996. Section 63A(1) to (4) provide for the power to make an Order requiring that fines are only to be treated as “qualifying fines” if they are subjected to a specified test, and includes a power to specify the frequency with which such tests are to be carried out; as well as what documents are to be produced, and what conditions landfill operators are to adhere to, in connection with carrying out the specified test. Section 63A(5) and (6) enable these conditions to be set out in notice issued by HMRC. Section 63A(7) provides that HMRC may have the power to direct that a person must carry out the specified test in certain circumstances. Section 63A(8) defines terms used elsewhere in section 63A.
7.Paragraph (5) amends section 70(1) of FA 1996 to include a statutory definition of “fines”.
8.Paragraph (6) makes consequential amendments to section 71 of FA 1996.
9.Paragraph (7) inserts new paragraphs (2B) and (2C) into Schedule 5 to FA 1996 and make consequential amendments to that Schedule. Subparagraphs (7)(1) to (7)(3) insert the new paragraphs (2B) and (2C) into Schedule 5 to FA 1996. Paragraph (2B) provides for the power to make regulations requiring persons to give HMRC information concerning fines that are claimed to be “qualifying fines”, and to notify HMRC if the specified test indicates that fines do not meet the criteria for “qualifying fines”; while paragraph (2C) provides for the power to make regulations requiring persons to retain and preserve samples of fines that have been subjected to testing. Subparagraph (7)(4) makes consequential amendments to paragraph 10 of schedule 5 and subparagraph (7)(5) makes consequential amendments to paragraph 22 of schedule 5.
10.Paragraph (8) provides that the amendments made by this Schedule are to have effect in relation to disposals made (or treated as having been made) in England, Wales or Northern Ireland on or after 1 April 2015.
