Finance Act 2021

Deferrals, exemptions and credits

51 Plastic packaging components intended for export

(1) A person’s liability under section 44 to pay an amount by way of plastic packaging tax in relation to a plastic packaging component is—

(a) deferred for as long as the direct export condition is met in relation to the component;

(b) cancelled if the direct export condition ceases to be met in relation to the component as a result of it being exported from the United Kingdom before the end of the deferral period in accordance with regulations made by the Commissioners.

(2) The direct export condition is met in relation to a component at any time if—

(a) the time is within the deferral period;

(b) the person who is liable to pay the tax (“the liable person”) intends to export it (and has intended to export it at all times since it was produced or imported);

(c) any other conditions or requirements specified in regulations made by the Commissioners are met.

(3) If the Commissioners are not satisfied of any matter within subsection (2) in relation to a component they may—

(a) in a case where they are satisfied that the direct export condition was met but no longer is, notify the liable person that the condition is to be taken to have ceased to be met in relation to that component from a date specified in the notification, or

(b) in any other case, notify the liable person that the direct export condition is to be taken never to have been met in relation to that component.

(4) The consequence of notification is that liability to pay an amount by way of plastic packaging tax—

(a) in a case within subsection (3)(a), ceases to be deferred in accordance with subsection (1)(a) with effect from such date as the Commissioners may specify in the notification, or

(b) in a case within subsection (3)(b), is taken never to have been deferred in accordance with subsection (1)(a).

(5) The deferral period in relation to a component is the period of 12 months beginning with the day on which the component is produced or imported.

(6) This section does not apply to plastic packaging components that are used in the removal of goods from the United Kingdom and that are—

(a) transport packaging or tertiary packaging within the meaning of regulation 3(2)(c) of the Packaging (Essential Requirements) Regulations 2015 (S.I. 2015/1640), or

(b) road, rail, ship and air containers.

(7) This section is subject to section 76 (Isle of Man: import and export of chargeable plastic packaging components).

52 Exempt plastic packaging components

(1) No charge to plastic packaging tax arises by virtue of section 43(1)(b) in relation to plastic packaging components that are used in the delivery of goods into the United Kingdom and that are—

(a) transport packaging or tertiary packaging within the meaning of regulation 3(2)(c) of the Packaging (Essential Requirements) Regulations 2015 (S.I. 2015/1640), or

(b) road, rail, ship and air containers.

(2) No charge to plastic packaging tax arises in relation to plastic packaging components if subsection (3), (4) or (6) applies to them.

(3) This subsection applies to plastic packaging components if they are stores within the meaning of CEMA 1979 (see section 1 of that Act).

(4) This subsection applies to plastic packaging components if they are produced or imported for use in the immediate packaging of a medicinal product.

(5) In subsection (4)—

• “immediate packaging”, in relation to a medicinal product, has the meaning given by regulation 8(1) of the Human Medicines Regulations 2012 (S.I. 2012/1916);

• “medicinal product” has the meaning given by regulation 2(1) of those Regulations.

(6) This subsection applies to plastic packaging components if—

(a) before or as soon as they have been produced or imported they are permanently designated or set aside for use other than in the containment, protection, handling, delivery or presentation of goods, and

(b) the producer or person on whose behalf they were imported keeps a record of that designation or setting aside.

(7) The Treasury may by regulations make provision creating further exemptions from plastic packaging tax.

53 Tax credits

(1) The Commissioners may by regulations make provision in relation to cases where after a person has become liable to pay plastic packaging tax in respect of a prescribed plastic packaging component (the “charged component”), that component is—

(a) exported from the United Kingdom;

(b) converted into a different packaging component.

(2) The provision that may be made is provision—

(a) for the person to be entitled to a tax credit in respect of any plastic packaging tax charged on the charged component;

(b) for the tax credit to be brought into account when the person is accounting for plastic packaging tax due from the person for the prescribed accounting period or periods;

(c) for the person to be entitled to a repayment of plastic packaging tax (instead of a tax credit) in prescribed cases.

(3) Regulations under this section may (among other things) make provision—

(a) for any entitlement to a tax credit to be conditional on the making of a claim by the person, and specifying the period within which and the manner in which a claim may be made;

(b) for any entitlement to a tax credit or to bring a tax credit into account to be—

(i) conditional on compliance with prescribed requirements;

(ii) subject to prescribed minimum or maximum amounts;

(c) specifying circumstances in which, and criteria for determining the period for which, the person is or is not entitled to a tax credit;

(d) requiring a claim for a tax credit to be evidenced and quantified by reference to prescribed records and other documents;

(e) requiring a person claiming any entitlement to a tax credit to keep, for the prescribed period and in the prescribed form and manner, those records and documents and a record of prescribed information relating to the claim;

(f) for the withdrawal of a tax credit where any requirement of the regulations is not complied with;

(g) about adjustments of liability for plastic packaging tax in connection with entitlement or withdrawal of an entitlement to a tax credit in prescribed circumstances;

(h) about the treatment of a tax credit where the person ceases to carry on a business or otherwise is no longer liable to plastic packaging tax;

(i) for anything falling to be determined in accordance with the regulations to be determined by reference to a direction given in accordance with the regulations by the Commissioners;

(j) about the meaning of “converted” for the purposes of subsection (1)(b).

(4) In this section, “prescribed” means specified in or under, or determined in accordance with provision made in or under, regulations under this section.