S. 123(1) has effect as specified by The Finance Act 2002, section 123, (Appointed Day) Order 2003 (S.I. 2003/603), art. 2

S. 126 omitted (with effect in accordance with s. 149(3) of the amending Act) by virtue of Finance Act 2008 (c. 9), s. 149(2)(a)

S. 133(2)-(4) omitted (1.4.2009) by virtue of Finance Act 2008 (c. 9), s. 122(2), Sch. 40 para. 21(j) (with savings in S.I. 2009/511, art. 4(f)); S.I. 2009/571, art. 2 (with art. 6)

S. 121 omitted (with effect in accordance with Sch. 5 para. 7 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 5 para. 6(c)

http://www.legislation.gov.uk/ukpga/2002/23/part/5Finance Act 2002An 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.2002-08-02texttext/xmlenStatute Law Database2024-05-31Expert Participation2020-12-31Part 5Other taxesInheritance tax
118 IHT: rate bands1

For the Table in Schedule 1 to the Inheritance Tax Act 1984 (c. 51) substitute—

Table of Rates of Tax

Portion of value

Rate of tax

Lower limit (£)

Upper limit (£)

Per cent.

0

250,000

Nil

250,000

40

2

Subsection (1) shall apply to any chargeable transfer made on or after 6th April 2002; and section 8(1) of that Act (indexation of rate bands) shall not have effect as respects any difference between the retail prices index for the month of September 2000 and that for the month of September 2001.

119 IHT: powers over, or exercisable in relation to, settled property or a settlement1

The Inheritance Tax Act 1984 is amended in accordance with the following provisions of this section.

2

After section 47 (meaning of “reversionary interest”) insert—

47A Settlement power

In this Act “settlement power” means any power over, or exercisable (whether directly or indirectly) in relation to, settled property or a settlement.

.

3

After section 55 (reversionary interest acquired by beneficiary) insert—

55A Purchased settlement powers1

Where a person makes a disposition by which he acquires a settlement power for consideration in money or money’s worth—

a

section 10(1) above shall not apply to the disposition;

b

the person shall be taken for the purposes of this Act to make a transfer of value;

c

the value transferred shall be determined without bringing into account the value of anything which the person acquires by the disposition; and

d

sections 18 and 23 to 27 above shall not apply in relation to that transfer of value.

2

For the purposes of this section, a person acquires a settlement power if he becomes entitled—

a

to a settlement power,

b

to exercise, or to secure or prevent the exercise of, a settlement power (whether directly or indirectly), or

c

to restrict, or secure a restriction on, the exercise of a settlement power (whether directly or indirectly),

as a result of transactions which include a disposition (whether to him or another) of a settlement power or of any power of a kind described in paragraph (b) or (c) above which is exercisable in relation to a settlement power.

.

4

In section 272 (general interpretation)—

a

insert the following definition at the appropriate place—

settlement power” has the meaning given by section 47A above;

;

and

b

in the definition of “property”, at the end insert “ but does not include a settlement power ”.

5

In consequence of the amendments made by this section, the title of Chapter 2 of Part 3 of the Inheritance Tax Act 1984 (c. 51) becomes “Interests in possession, reversionary interests and settlement powers”.

6

The amendments made by this section have effect in relation to transfers of value on or after 17th April 2002.

7

The amendments made by subsections (2) and (4) shall also be deemed always to have had effect (subject to and in accordance with the other provisions of the Inheritance Tax Act 1984) for the purpose of determining the value, immediately before his death, of the estate of any person who died before 17th April 2002, for the purposes of the transfer of value which that person is treated by section 4(1) of that Act as having made immediately before his death.

120 IHT: variation of dispositions taking effect on death1

In section 142 of the Inheritance Tax Act 1984 (alteration of dispositions taking effect on death), for subsection (2) (election to treat subsequent variation of dispositions taking effect on death as if effected by deceased) substitute—

2

Subsection (1) above shall not apply to a variation unless the instrument contains a statement, made by all the relevant persons, to the effect that they intend the subsection to apply to the variation.

2A

For the purposes of subsection (2) above the relevant persons are—

a

the person or persons making the instrument, and

b

where the variation results in additional tax being payable, the personal representatives.

Personal representatives may decline to make a statement under subsection (2) above only if no, or no sufficient, assets are held by them in that capacity for discharging the additional tax.

.

2

After section 218 of that Act insert—

218A Instruments varying dispositions taking effect on death1

Where—

a

an instrument is made varying any of the dispositions of the property comprised in the estate of a deceased person immediately before his death,

b

the instrument contains a statement under subsection (2) of section 142 above, and

c

the variation results in additional tax being payable,

the relevant persons (within the meaning of that subsection) shall, within six months after the day on which the instrument is made, deliver a copy of it to the Board and notify them of the amount of the additional tax.

2

To the extent that any of the relevant persons comply with the requirements of this section, the others are discharged from the duty to comply with them.

.

3

In section 245A of that Act (failure to provide information etc)—

a

after subsection (1) insert—

1A

A person who fails to comply with the requirements of section 218A above shall be liable—

a

to a penalty not exceeding £100; and

b

to a further penalty not exceeding £60 for every day after the day on which the failure has been declared by a court or the Special Commissioners and before the day on which the requirements are complied with.

.

b

in subsection (4), insert “ (1A)(b), ” after “subsection (1)(b),” and after paragraph (a) insert—

aa

he complies with the requirements of section 218A above,

.

4

This section applies in relation to instruments made on or after 1st August 2002.

Air passenger duty
121 Air passenger duty: extension of area to which EEA rates apply

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Landfill tax
122 Landfill tax: rate1

In section 42 of the Finance Act 1996 (c. 8) (amount of landfill tax), in subsections (1)(a) and (2) for “£12” substitute “ £13 ”.

2

This section has effect in relation to taxable disposals made, or treated as made, on or after 1st April 2002.

Climate change levy
123 Climate change levy: electricity produced in combined heat and power station1

In Schedule 6 to the Finance Act 2000 (c. 17) (climate change levy), after paragraph 20 insert—

20AExemption: electricity produced in combined heat and power stations1

A supply of electricity is exempt from the levy chargeable under paragraph 5(1) if—

a

the supply is not one that is deemed to be made under paragraph 23(3),

b

the supply is made under a contract that contains a CHP declaration given by the supplier,

c

prescribed conditions are fulfilled, and

d

the supplier, and each other person (if any) who is a generator of any CHP electricity allocated by the supplier to supplies under the contract, has in a written notice given to the Commissioners agreed that he will fulfil those conditions so far as they may apply to him.

2

Sub-paragraph (1) does not apply in relation to a supply to a person of electricity produced in a wholly or partly exempt combined heat and power station where the supply is made to that person from the station.

3

In this paragraph “CHP declaration” means a declaration that, in each averaging period, the amount of electricity supplied by exempt CHP supplies made by the supplier in the period will not exceed the difference between—

a

the total amount of CHP electricity that during that period is either acquired or generated by the supplier, and

b

so much of that total amount as is allocated by the supplier otherwise than to exempt CHP supplies made by him in the period.

In this sub-paragraph “averaging period” has the same meaning as in paragraph 20B; and “exempt CHP supplies” means supplies made on the basis that they are exempt under this paragraph.

4

For the purposes of this paragraph and paragraph 20B, electricity is “CHP electricity” if—

a

the electricity was—

i

produced in a fully exempt combined heat and power station, or

ii

produced in a partly exempt combined heat and power station and originally supplied from the station without causing the limit referred to in paragraph 16(2) to be exceeded,

b

the electricity is not renewable source electricity (within the meaning of paragraph 19), and

c

prescribed conditions are fulfilled.

5

The conditions that may be prescribed under sub-paragraph (1)(c) include, in particular, conditions in connection with—

a

the giving of effect to CHP declarations;

b

the supply of information;

c

the inspection of records and, for that purpose, the production of records in legible form and entry into premises;

d

monitoring by the Gas and Electricity Markets Authority, or the Director General of Electricity Supply for Northern Ireland, of the application of provisions of, or made under, this paragraph;

e

the doing of things to or by a person authorised by the Authority or the Director General (as well as the doing of things to or by the Authority or the Director General);

f

things being done at times or in ways specified by the Authority, the Director General or such an authorised person.

6

A condition prescribed under sub-paragraph (1)(c) may be one that is required to be fulfilled throughout a period, including a period ending after the time when a supply whose exemption turns on the fulfilment of the condition is treated as being made.

7

The conditions that may be prescribed under sub-paragraph (4)(c) include in particular conditions in connection with any of the matters mentioned in paragraphs (b) to (f) of sub-paragraph (5).

8

Each of—

a

the Gas and Electricity Markets Authority, and

b

the Director General of Electricity Supply for Northern Ireland,

shall supply the Commissioners with such information (whether or not obtained under this paragraph), and otherwise give the Commissioners such co-operation, as the Commissioners may require in connection with the application of this paragraph (whether generally or in relation to any particular case).

9

Paragraph 19(10) (disclosure of information) applies in relation to sub-paragraph (8) above as it applies in relation to paragraph 19(8).

20BExemption under paragraph 20A: averaging periods1

This paragraph applies where a person (“the supplier”) makes supplies of electricity on the basis that they are exempt under paragraph 20A (“exempt CHP supplies”).

2

The rules about balancing and averaging periods are—

a

a balancing period is a period of three months;

b

when a balancing period ends, a new one begins;

c

the first balancing period and the first averaging period begin at the same time;

d

unless the supplier specifies an earlier time, that time is the time when he is treated as making the first of the exempt CHP supplies;

e

when an averaging period ends, a new one begins;

f

an averaging period ends once it has run for two years (but may end sooner under paragraph (g) or sub-paragraph (4)(a) or (5)(a));

g

if the supplier stops making exempt CHP supplies, the end of the balancing period in which he makes the last exempt CHP supply is also the end of the averaging period in which the balancing period falls.

3

At the end of each balancing period calculate—

a

the total of—

i

the quantity of CHP electricity that the supplier acquired or generated in that period, and

ii

any balancing credit carried forward to that balancing period; and

b

the total of—

i

the quantity of electricity supplied by exempt CHP supplies made by him in that period, and

ii

any balancing debit carried forward to that balancing period.

4

If the total mentioned in sub-paragraph (3)(a) exceeds that mentioned in sub-paragraph (3)(b)—

a

the averaging period within which the balancing period fell ends at the end of the balancing period, and

b

a balancing credit equal to the difference between the two totals is carried forward to the next balancing period.

5

If the totals mentioned in paragraphs (a) and (b) of sub-paragraph (3) are the same—

a

the averaging period within which the balancing period fell ends at the end of the balancing period, and

b

no balancing credit or debit is carried forward to the next balancing period.

6

Sub-paragraphs (7) and (8) apply if the total mentioned in sub-paragraph (3)(b) exceeds that mentioned in sub-paragraph (3)(a).

7

Where the end of the balancing period is by virtue of sub-paragraph (2)(g) the end of an averaging period, the supplier is liable to account to the Commissioners for an amount equal to the amount that would be payable by way of levy on a taxable supply that—

a

is made at the end of the balancing period, and

b

is a supply of a quantity of electricity equal to the difference between the two totals.

For the purposes of this Schedule, the amount for which the supplier is liable to account shall be treated as an amount of levy for which he is liable to account for an accounting period ending at the end of the balancing period.

8

Where sub-paragraph (7) does not apply, a balancing debit equal to the difference between the two totals is carried forward to the next balancing period.

.

2

Subsection (1) has effect in relation to supplies of electricity made on or after such day as the Treasury may by order made by statutory instrument appoint.

124 Climate change levy: certification requirement

In Schedule 6 to the Finance Act 2000 (c. 17) (climate change levy), after paragraph 149 insert—

149ACertification of electricity from fully or partly exempt combined heat and power station1

The Commissioners may by regulations make provision for the Gas and Electricity Markets Authority, or the Director General of Electricity Supply for Northern Ireland, to certify as respects any quantity of electricity that—

a

the electricity has been produced in a fully exempt combined heat and power station;

b

the electricity has been produced in a partly exempt combined heat and power station and supplied from the station without causing the limit referred to in paragraph 16(2) to be exceeded.

2

Regulations under this paragraph may provide that for any purposes of this Schedule (or any regulations made under it)—

a

electricity is not to be regarded as having been produced as specified in sub-paragraph (1)(a) unless it has been certified under that provision;

b

electricity is not to be regarded as having been produced and supplied as specified in sub-paragraph (1)(b) unless it has been certified under that provision.

3

Regulations under this paragraph may in particular provide that the supply of any electricity does not qualify for the exemption under paragraph 16(2) unless the electricity is certified as specified in sub-paragraph (1)(b).

4

Regulations under this paragraph may also make provision for determining whether electricity is produced and supplied as specified in sub-paragraph (1)(b).

.

125 Climate change levy: exemption for renewable sources1

In Schedule 6 to the Finance Act 2000 (c. 17) (climate change levy), in paragraph 20(7), (exemption under paragraph 19: liability to account)—

a

for the words from “(2)(c)” to “2 years)” substitute “ (2)(g) ”,

b

after paragraph (a) insert “and”, and

c

omit paragraph (c) and the preceding “and”.

2

This section has effect in relation to averaging periods under paragraph 20 of that Schedule which end on or after the day on which this Act is passed.

126 Climate change levy: electricity produced from coal mine methane

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

127 Climate change levy: incorrect certificates1

In Schedule 6 to the Finance Act 2000 (climate change levy), in sub-paragraph (2)(a) of paragraph 101 (civil penalties: incorrect notifications etc)—

a

in sub-paragraph (ii) for “18 and 21, or” substitute “ 15, 18 and 21, ”;

b

before the word “and” at the end of sub-paragraph (iii) insert—

, or

iv

a reduced-rate supply (or reduced-rate supplies),

.

2

This section applies in relation to certificates given in respect of any supplies made on or after 24th April 2002.

128 Climate change levy: invoices incorrectly showing levy due1

In Schedule 6 to the Finance Act 2000 (climate change levy), immediately before paragraph 142 insert—

141AInvoices incorrectly showing levy due1

This paragraph applies where—

a

a person issues an invoice showing an amount as levy chargeable on a supply, and

b

no levy is chargeable on the supply, or the amount chargeable is less than the amount shown.

2

The person shall be liable to a penalty unless he satisfies the Commissioners or, on appeal, a tribunal that there is a reasonable excuse for the inclusion in the invoice of the false information.

3

The amount of the penalty is £50 or, if more, the following amount—

a

where no levy is chargeable, the amount shown as chargeable;

b

where an amount of levy is chargeable, the difference between that amount and the amount shown as chargeable.

4

It is irrelevant for the purposes of sub-paragraph (1) whether or not the supply shown on the invoice actually takes place or has taken place.

5

A reference in this paragraph to an invoice is a reference to any kind of invoice (and not just a climate change levy accounting document).

.

2

This section applies only in relation to invoices issued on or after the day on which this Act is passed.

Aggregates levy
129 Aggregates levy: transitional relief for Northern Ireland1

After section 30 of the Finance Act 2001 (c. 9) (credit for aggregates levy) insert—

30A Transitional tax credit in Northern Ireland1

The Commissioners may by regulations make provision of the kind described in section 30(2) above (entitlement to tax credit) in relation to cases where aggregate is used in Northern Ireland for a prescribed purpose—

a

on or after the commencement date, and

b

before 1st April 2007.

2

In relation to the use of aggregate in the year ending with a date shown in the first column of the following table, the amount of any tax credit to which a person would otherwise by entitled by virtue of the regulations shall be reduced by the percentage of that amount shown opposite that date in the second column.

Year ending

Reduction in tax credit

31st March 2004

20%

31st March 2005

40%

31st March 2006

60%

31st March 2007

80%

3

Subsections (3) to (5) of section 30 above apply to regulations under this section as they apply to regulations under that section.

.

2

In section 17(6) of that Act (certain tax credits to be disregarded in determining whether aggregate has already been charged to levy), in paragraph (a) after “section 30(1)(c)” insert “ or 30A ”.

130 Aggregates levy: amendments to provisions exempting spoil etc1

In section 17(3) of the Finance Act 2001 (c. 9) (aggregate that is exempt)—

a

in paragraph (e) (by-products of extracting china clay or ball clay), after “or other by-products” insert “ , not including the overburden, ”;

b

after that paragraph insert—

f

it consists wholly of the spoil from any process by which—

i

coal, lignite, slate or shale, 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;

.

2

Omit section 17(4)(b) of that Act (aggregate exempt if it consists, or is part of anything consisting, wholly or mainly of spoil from the separation of coal from other rock after extraction).

3

This section shall be deemed to have come into force on 1st April 2002.

131 Aggregates levy: crushing and cutting rock1

In section 17(3) of the Finance Act 2001 (exempt aggregate), omit paragraph (a) (exemption for rock that has not been subjected to an industrial crushing process).

2

In section 18(2)(a) of that Act (exemption for production of dimension stone), for “dimension stone” substitute “ stone with one or more flat surfaces ”.

3

The following amendments to that Act are consequential on that made by subsection (1)—

a

in section 20(1) (originating sites), omit—

i

the words “and is not rock” in paragraphs (a) and (b), and

ii

paragraph (c);

b

in section 21 (operators of sites), omit subsection (2)(b);

c

in section 24 (the register), omit subsections (6)(b) and (8)(a).

4

This section shall be deemed to have come into force on 1st April 2002.

132 Aggregates levy: miscellaneous amendments1

Schedule 38 to this Act, which makes amendments to provisions in Part 2 of the Finance Act 2001 (aggregates levy), has effect.

2

In section 197(2) of the Finance Act 1996 (c. 8) (enactments for which interest rates are set under section 197), in paragraph (h) (aggregates levy provisions) in sub-paragraph (ii) for “paragraph 8(3)(a)” substitute “ paragraphs 6 and 8(3)(a) ”.

3

This section shall be deemed to have come into force on 1st April 2002.

133 Aggregates levy: amendments to provisions about civil penalties1

Part 2 of Schedule 6 to the Finance Act 2001 (c. 9) (aggregates levy: civil penalties) is amended as follows.

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

After paragraph 9 insert—

9AIncorrect records etc evidencing claim for tax credit1

This paragraph applies where—

a

a claim is made for a tax credit in such a case as is mentioned in—

i

section 30(1)(c) of this Act (aggregate used in a prescribed industrial or agricultural process), or

ii

section 30A of this Act (transitional tax credit in Northern Ireland);

b

a record or other document is provided to the Commissioners as evidence for the claim; and

c

the record or document is incorrect.

2

The person who provided the document to the Commissioners, and any person who provided it to anyone else with a view to its being used as evidence for a claim for a tax credit, shall be liable to a penalty.

3

The amount of the penalty shall be equal to 105 per cent of the difference between—

a

the amount of tax credit that would have been due on the claim if the record or document had been correct, and

b

the amount (if any) of tax credit actually due on the claim.

4

The providing of a record or other document shall not give rise to a penalty under this paragraph if the person who provided it satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for his having provided it.

5

Where by reason of providing a record or other document—

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 or 9 above,

that person shall not by reason of the providing of the record or document be liable also to a penalty under this paragraph.

.

6

This section shall be deemed to have come into force on 1st May 2002.

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<notes source="#source">
<note class="commentary I" eId="key-ebc4386c5fd3b70ada67f260f1f9fc6a">
<p>
<ref href="http://www.legislation.gov.uk/id/ukpga/2002/23/section/123/1">S. 123(1)</ref>
has effect as specified by
<ref href="http://www.legislation.gov.uk/id/uksi/2003/603">The Finance Act 2002, section 123, (Appointed Day) Order 2003 (S.I. 2003/603)</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2003/603/article/2">art. 2</ref>
</p>
</note>
<note class="commentary F" eId="key-857dd261d7d66c4d5422aedc44a4d379">
<p>
<ref href="http://www.legislation.gov.uk/id/ukpga/2002/23/section/126">S. 126</ref>
omitted (with effect in accordance with s. 149(3) of the amending Act) by virtue of
<ref href="http://www.legislation.gov.uk/id/ukpga/2008/9">Finance Act 2008 (c. 9)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2008/9/section/149/2/a">s. 149(2)(a)</ref>
</p>
</note>
<note class="commentary F" eId="key-a4759f294573fd25dd2015d22ccf0405">
<p>
S. 133(2)-(4) omitted (1.4.2009) by virtue of
<ref href="http://www.legislation.gov.uk/id/ukpga/2008/9">Finance Act 2008 (c. 9)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2008/9/section/122/2">s. 122(2)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2008/9/schedule/40/paragraph/21/j">Sch. 40 para. 21(j)</ref>
(with savings in S.I. 2009/511, art. 4(f));
<ref href="http://www.legislation.gov.uk/id/uksi/2009/571">S.I. 2009/571</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2009/571/article/2">art. 2</ref>
(with
<ref href="http://www.legislation.gov.uk/id/uksi/2009/571/article/6">art. 6</ref>
)
</p>
</note>
<note class="commentary F" eId="key-c7faa4febe5d38bb834d4ba634f5e745">
<p>
<ref href="http://www.legislation.gov.uk/id/ukpga/2002/23/section/121">S. 121</ref>
omitted (with effect in accordance with Sch. 5 para. 7 of the amending Act) by virtue of
<ref href="http://www.legislation.gov.uk/id/ukpga/2009/10">Finance Act 2009 (c. 10)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2009/10/schedule/5/paragraph/6/c">Sch. 5 para. 6(c)</ref>
</p>
</note>
</notes>
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<num>
<strong>Part 5</strong>
</num>
<heading>Other taxes</heading>
<hcontainer name="crossheading" eId="part-5-crossheading-inheritance-tax" period="#period2">
<heading>Inheritance tax</heading>
<section eId="section-118" period="#period2">
<num>118</num>
<heading> IHT: rate bands</heading>
<subsection eId="section-118-1">
<num>1</num>
<content>
<p>For the Table in Schedule 1 to the Inheritance Tax Act 1984 (c. 51) substitute—</p>
<p class="BlockAmendment">
<mod>
<quotedStructure class="unknown unknown schedule default" startQuote="" endQuote="">
<tblock class="tabular">
<p>
<strong>Table of Rates of Tax</strong>
</p>
<table>
<tr>
<th colspan="2">
<p>
<em>Portion of value</em>
</p>
</th>
<th>
<p>
<em>Rate of tax</em>
</p>
</th>
</tr>
<tr>
<th>
<p>Lower limit (£)</p>
</th>
<th>
<p>Upper limit (£)</p>
</th>
<th>
<p>Per cent.</p>
</th>
</tr>
<tr>
<td>
<p>0</p>
</td>
<td>
<p>250,000</p>
</td>
<td>
<p>Nil</p>
</td>
</tr>
<tr>
<td>
<p>250,000</p>
</td>
<td>
<p/>
</td>
<td>
<p>40</p>
</td>
</tr>
</table>
</tblock>
</quotedStructure>
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</content>
</subsection>
<subsection eId="section-118-2">
<num>2</num>
<content>
<p>Subsection (1) shall apply to any chargeable transfer made on or after 6th April 2002; and section 8(1) of that Act (indexation of rate bands) shall not have effect as respects any difference between the retail prices index for the month of September 2000 and that for the month of September 2001.</p>
</content>
</subsection>
</section>
<section eId="section-119" period="#period2">
<num>119</num>
<heading> IHT: powers over, or exercisable in relation to, settled property or a settlement</heading>
<subsection eId="section-119-1">
<num>1</num>
<content>
<p>The Inheritance Tax Act 1984 is amended in accordance with the following provisions of this section.</p>
</content>
</subsection>
<subsection eId="section-119-2">
<num>2</num>
<content>
<p>After section 47 (meaning of “reversionary interest”) insert—</p>
<p class="BlockAmendment">
<mod>
<quotedStructure class="primary unknown main default" startQuote="" endQuote="">
<section eId="d4e197">
<num>47A</num>
<heading> Settlement power</heading>
<content>
<p>
In this Act “
<term refersTo="#term-settlement-power">settlement power</term>
” means any power over, or exercisable (whether directly or indirectly) in relation to, settled property or a settlement.
</p>
</content>
</section>
</quotedStructure>
</mod>
<inline name="AppendText">.</inline>
</p>
</content>
</subsection>
<subsection eId="section-119-3">
<num>3</num>
<content>
<p>After section 55 (reversionary interest acquired by beneficiary) insert—</p>
<p class="BlockAmendment">
<mod>
<quotedStructure class="primary unknown main default" startQuote="" endQuote="">
<section eId="d4e218">
<num>55A</num>
<heading> Purchased settlement powers</heading>
<subsection eId="d4e222">
<num>1</num>
<intro>
<p>Where a person makes a disposition by which he acquires a settlement power for consideration in money or money’s worth—</p>
</intro>
<paragraph eId="d4e228">
<num>a</num>
<content>
<p>section 10(1) above shall not apply to the disposition;</p>
</content>
</paragraph>
<paragraph eId="d4e234">
<num>b</num>
<content>
<p>the person shall be taken for the purposes of this Act to make a transfer of value;</p>
</content>
</paragraph>
<paragraph eId="d4e240">
<num>c</num>
<content>
<p>the value transferred shall be determined without bringing into account the value of anything which the person acquires by the disposition; and</p>
</content>
</paragraph>
<paragraph eId="d4e246">
<num>d</num>
<content>
<p>sections 18 and 23 to 27 above shall not apply in relation to that transfer of value.</p>
</content>
</paragraph>
</subsection>
<subsection eId="d4e252">
<num>2</num>
<intro>
<p>For the purposes of this section, a person acquires a settlement power if he becomes entitled—</p>
</intro>
<paragraph eId="d4e258">
<num>a</num>
<content>
<p>to a settlement power,</p>
</content>
</paragraph>
<paragraph eId="d4e264">
<num>b</num>
<content>
<p>to exercise, or to secure or prevent the exercise of, a settlement power (whether directly or indirectly), or</p>
</content>
</paragraph>
<paragraph eId="d4e270">
<num>c</num>
<content>
<p>to restrict, or secure a restriction on, the exercise of a settlement power (whether directly or indirectly),</p>
</content>
</paragraph>
<wrapUp>
<p>as a result of transactions which include a disposition (whether to him or another) of a settlement power or of any power of a kind described in paragraph (b) or (c) above which is exercisable in relation to a settlement power.</p>
</wrapUp>
</subsection>
</section>
</quotedStructure>
</mod>
<inline name="AppendText">.</inline>
</p>
</content>
</subsection>
<subsection eId="section-119-4">
<num>4</num>
<intro>
<p>In section 272 (general interpretation)—</p>
</intro>
<paragraph eId="section-119-4-a">
<num>a</num>
<content>
<p>insert the following definition at the appropriate place—</p>
<p class="BlockAmendment">
<mod>
<quotedStructure class="unknown unknown unknown default" startQuote="" endQuote="">
<blockList class="unordered">
<item>
<p>
<term refersTo="#term-settlement-power">settlement power</term>
” has the meaning given by section 47A above;
</p>
</item>
</blockList>
</quotedStructure>
</mod>
<inline name="AppendText">;</inline>
</p>
<p> and</p>
</content>
</paragraph>
<paragraph eId="section-119-4-b">
<num>b</num>
<content>
<p>
in the definition of “property”, at the end insert
<mod>
<quotedText>“ but does not include a settlement power ”</quotedText>
</mod>
.
</p>
</content>
</paragraph>
</subsection>
<subsection eId="section-119-5">
<num>5</num>
<content>
<p>In consequence of the amendments made by this section, the title of Chapter 2 of Part 3 of the Inheritance Tax Act 1984 (c. 51) becomes “Interests in possession, reversionary interests and settlement powers”.</p>
</content>
</subsection>
<subsection eId="section-119-6">
<num>6</num>
<content>
<p>The amendments made by this section have effect in relation to transfers of value on or after 17th April 2002.</p>
</content>
</subsection>
<subsection eId="section-119-7">
<num>7</num>
<content>
<p>The amendments made by subsections (2) and (4) shall also be deemed always to have had effect (subject to and in accordance with the other provisions of the Inheritance Tax Act 1984) for the purpose of determining the value, immediately before his death, of the estate of any person who died before 17th April 2002, for the purposes of the transfer of value which that person is treated by section 4(1) of that Act as having made immediately before his death.</p>
</content>
</subsection>
</section>
<section eId="section-120" period="#period2">
<num>120</num>
<heading> IHT: variation of dispositions taking effect on death</heading>
<subsection eId="section-120-1">
<num>1</num>
<content>
<p>In section 142 of the Inheritance Tax Act 1984 (alteration of dispositions taking effect on death), for subsection (2) (election to treat subsequent variation of dispositions taking effect on death as if effected by deceased) substitute—</p>
<p class="BlockAmendment">
<mod>
<quotedStructure class="primary unknown main default" startQuote="" endQuote="">
<subsection eId="d4e347">
<num>2</num>
<content>
<p>Subsection (1) above shall not apply to a variation unless the instrument contains a statement, made by all the relevant persons, to the effect that they intend the subsection to apply to the variation.</p>
</content>
</subsection>
<subsection eId="d4e353">
<num>2A</num>
<intro>
<p>For the purposes of subsection (2) above the relevant persons are—</p>
</intro>
<paragraph eId="d4e359">
<num>a</num>
<content>
<p>the person or persons making the instrument, and</p>
</content>
</paragraph>
<paragraph eId="d4e365">
<num>b</num>
<content>
<p>where the variation results in additional tax being payable, the personal representatives.</p>
<p>Personal representatives may decline to make a statement under subsection (2) above only if no, or no sufficient, assets are held by them in that capacity for discharging the additional tax.</p>
</content>
</paragraph>
</subsection>
</quotedStructure>
</mod>
<inline name="AppendText">.</inline>
</p>
</content>
</subsection>
<subsection eId="section-120-2">
<num>2</num>
<content>
<p>After section 218 of that Act insert—</p>
<p class="BlockAmendment">
<mod>
<quotedStructure class="primary unknown main default" startQuote="" endQuote="">
<section eId="d4e386">
<num>218A</num>
<heading> Instruments varying dispositions taking effect on death</heading>
<subsection eId="d4e390">
<num>1</num>
<intro>
<p>Where—</p>
</intro>
<paragraph eId="d4e396">
<num>a</num>
<content>
<p>an instrument is made varying any of the dispositions of the property comprised in the estate of a deceased person immediately before his death,</p>
</content>
</paragraph>
<paragraph eId="d4e402">
<num>b</num>
<content>
<p>the instrument contains a statement under subsection (2) of section 142 above, and</p>
</content>
</paragraph>
<paragraph eId="d4e408">
<num>c</num>
<content>
<p>the variation results in additional tax being payable,</p>
</content>
</paragraph>
<wrapUp>
<p>the relevant persons (within the meaning of that subsection) shall, within six months after the day on which the instrument is made, deliver a copy of it to the Board and notify them of the amount of the additional tax.</p>
</wrapUp>
</subsection>
<subsection eId="d4e416">
<num>2</num>
<content>
<p>To the extent that any of the relevant persons comply with the requirements of this section, the others are discharged from the duty to comply with them.</p>
</content>
</subsection>
</section>
</quotedStructure>
</mod>
<inline name="AppendText">.</inline>
</p>
</content>
</subsection>
<subsection eId="section-120-3">
<num>3</num>
<intro>
<p>
In section 245A of that Act (failure to provide information
<abbr title="Et cetera" xml:lang="la">etc</abbr>
)—
</p>
</intro>
<paragraph eId="section-120-3-a">
<num>a</num>
<content>
<p>after subsection (1) insert—</p>
<p class="BlockAmendment">
<mod>
<quotedStructure class="primary unknown main default" startQuote="" endQuote="">
<subsection eId="d4e440">
<num>1A</num>
<intro>
<p>A person who fails to comply with the requirements of section 218A above shall be liable—</p>
</intro>
<paragraph eId="d4e446">
<num>a</num>
<content>
<p>to a penalty not exceeding £100; and</p>
</content>
</paragraph>
<paragraph eId="d4e452">
<num>b</num>
<content>
<p>to a further penalty not exceeding £60 for every day after the day on which the failure has been declared by a court or the Special Commissioners and before the day on which the requirements are complied with.</p>
</content>
</paragraph>
</subsection>
</quotedStructure>
</mod>
<inline name="AppendText">.</inline>
</p>
</content>
</paragraph>
<paragraph eId="section-120-3-b">
<num>b</num>
<content>
<p>
in subsection (4), insert
<mod>
<quotedText>“ (1A)(b), ”</quotedText>
</mod>
after “subsection (1)(b),” and after paragraph (a) insert—
</p>
<p class="BlockAmendment">
<mod>
<quotedStructure class="unknown unknown unknown default" startQuote="" endQuote="">
<paragraph eId="d4e470">
<num>aa</num>
<content>
<p>he complies with the requirements of section 218A above,</p>
</content>
</paragraph>
</quotedStructure>
</mod>
<inline name="AppendText">.</inline>
</p>
</content>
</paragraph>
</subsection>
<subsection eId="section-120-4">
<num>4</num>
<content>
<p>This section applies in relation to instruments made on or after 1st August 2002.</p>
</content>
</subsection>
</section>
</hcontainer>
<hcontainer name="crossheading" eId="part-5-crossheading-air-passenger-duty" period="#period6">
<heading>Air passenger duty</heading>
<section eId="section-121" period="#period6">
<num>
<noteRef href="#key-c7faa4febe5d38bb834d4ba634f5e745" marker="F3" class="commentary F"/>
121
</num>
<heading>
Air passenger duty: extension of area to which
<abbr class="Acronym" title="European Economic Area">EEA</abbr>
rates apply
</heading>
<content>
<p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p>
</content>
</section>
</hcontainer>
<hcontainer name="crossheading" eId="part-5-crossheading-landfill-tax" period="#period2">
<heading>Landfill tax</heading>
<section eId="section-122" period="#period2">
<num>122</num>
<heading> Landfill tax: rate</heading>
<subsection eId="section-122-1">
<num>1</num>
<content>
<p>
In section 42 of the Finance Act 1996 (c. 8) (amount of landfill tax), in subsections (1)(a) and (2) for “£12” substitute
<mod>
<quotedText>“ £13 ”</quotedText>
</mod>
.
</p>
</content>
</subsection>
<subsection eId="section-122-2">
<num>2</num>
<content>
<p>This section has effect in relation to taxable disposals made, or treated as made, on or after 1st April 2002.</p>
</content>
</subsection>
</section>
</hcontainer>
<hcontainer name="crossheading" eId="part-5-crossheading-climate-change-levy" period="#period4">
<heading>Climate change levy</heading>
<section eId="section-123" period="#period3">
<num>123</num>
<heading> Climate change levy: electricity produced in combined heat and power station</heading>
<subsection eId="section-123-1" period="#period3">
<num>
<noteRef href="#key-ebc4386c5fd3b70ada67f260f1f9fc6a" marker="I1" class="commentary I"/>
1
</num>
<content>
<p>In Schedule 6 to the Finance Act 2000 (c. 17) (climate change levy), after paragraph 20 insert—</p>
<p class="BlockAmendment">
<mod>
<quotedStructure class="unknown unknown schedule default" startQuote="" endQuote="">
<paragraph eId="d4e547">
<num>20A</num>
<heading>
<em>Exemption: electricity produced in combined heat and power stations</em>
</heading>
<subparagraph eId="d4e551">
<num>1</num>
<intro>
<p>A supply of electricity is exempt from the levy chargeable under paragraph 5(1) if—</p>
</intro>
<paragraph eId="d4e557">
<num>a</num>
<content>
<p>the supply is not one that is deemed to be made under paragraph 23(3),</p>
</content>
</paragraph>
<paragraph eId="d4e563">
<num>b</num>
<content>
<p>
the supply is made under a contract that contains a
<abbr class="Acronym" title="Combined Heat and Power">CHP</abbr>
declaration given by the supplier,
</p>
</content>
</paragraph>
<paragraph eId="d4e572">
<num>c</num>
<content>
<p>prescribed conditions are fulfilled, and</p>
</content>
</paragraph>
<paragraph eId="d4e578">
<num>d</num>
<content>
<p>
the supplier, and each other person (if any) who is a generator of any
<abbr class="Acronym" title="Combined Heat and Power">CHP</abbr>
electricity allocated by the supplier to supplies under the contract, has in a written notice given to the Commissioners agreed that he will fulfil those conditions so far as they may apply to him.
</p>
</content>
</paragraph>
</subparagraph>
<subparagraph eId="d4e587">
<num>2</num>
<content>
<p>Sub-paragraph (1) does not apply in relation to a supply to a person of electricity produced in a wholly or partly exempt combined heat and power station where the supply is made to that person from the station.</p>
</content>
</subparagraph>
<subparagraph eId="d4e593">
<num>3</num>
<intro>
<p>
In this paragraph “
<term refersTo="#term-chp-declaration">
<abbr class="Acronym" title="Combined Heat and Power">CHP</abbr>
declaration
</term>
” means a declaration that, in each averaging period, the amount of electricity supplied by exempt
<abbr class="Acronym" title="Combined Heat and Power">CHP</abbr>
supplies made by the supplier in the period will not exceed the difference between—
</p>
</intro>
<paragraph eId="d4e607">
<num>a</num>
<content>
<p>
the total amount of
<abbr class="Acronym" title="Combined Heat and Power">CHP</abbr>
electricity that during that period is either acquired or generated by the supplier, and
</p>
</content>
</paragraph>
<paragraph eId="d4e616">
<num>b</num>
<content>
<p>
so much of that total amount as is allocated by the supplier otherwise than to exempt
<abbr class="Acronym" title="Combined Heat and Power">CHP</abbr>
supplies made by him in the period.
</p>
<p>
In this sub-paragraph “
<term refersTo="#term-averaging-period">averaging period</term>
” has the same meaning as in paragraph 20B; and “
<term refersTo="#term-exempt-chp-supplies">
exempt
<abbr class="Acronym" title="Combined Heat and Power">CHP</abbr>
supplies
</term>
” means supplies made on the basis that they are exempt under this paragraph.
</p>
</content>
</paragraph>
</subparagraph>
<subparagraph eId="d4e637">
<num>4</num>
<intro>
<p>
For the purposes of this paragraph and paragraph 20B, electricity is “
<term refersTo="#term-chp-electricity">
<abbr class="Acronym" title="Combined Heat and Power">CHP</abbr>
electricity
</term>
” if—
</p>
</intro>
<paragraph eId="d4e648">
<num>a</num>
<intro>
<p>the electricity was—</p>
</intro>
<subparagraph eId="d4e654">
<num>i</num>
<content>
<p>produced in a fully exempt combined heat and power station, or</p>
</content>
</subparagraph>
<subparagraph eId="d4e660">
<num>ii</num>
<content>
<p>produced in a partly exempt combined heat and power station and originally supplied from the station without causing the limit referred to in paragraph 16(2) to be exceeded,</p>
</content>
</subparagraph>
</paragraph>
<paragraph eId="d4e666">
<num>b</num>
<content>
<p>the electricity is not renewable source electricity (within the meaning of paragraph 19), and</p>
</content>
</paragraph>
<paragraph eId="d4e672">
<num>c</num>
<content>
<p>prescribed conditions are fulfilled.</p>
</content>
</paragraph>
</subparagraph>
<subparagraph eId="d4e678">
<num>5</num>
<intro>
<p>The conditions that may be prescribed under sub-paragraph (1)(c) include, in particular, conditions in connection with—</p>
</intro>
<paragraph eId="d4e684">
<num>a</num>
<content>
<p>
the giving of effect to
<abbr class="Acronym" title="Combined Heat and Power">CHP</abbr>
declarations;
</p>
</content>
</paragraph>
<paragraph eId="d4e693">
<num>b</num>
<content>
<p>the supply of information;</p>
</content>
</paragraph>
<paragraph eId="d4e699">
<num>c</num>
<content>
<p>the inspection of records and, for that purpose, the production of records in legible form and entry into premises;</p>
</content>
</paragraph>
<paragraph eId="d4e705">
<num>d</num>
<content>
<p>monitoring by the Gas and Electricity Markets Authority, or the Director General of Electricity Supply for Northern Ireland, of the application of provisions of, or made under, this paragraph;</p>
</content>
</paragraph>
<paragraph eId="d4e711">
<num>e</num>
<content>
<p>the doing of things to or by a person authorised by the Authority or the Director General (as well as the doing of things to or by the Authority or the Director General);</p>
</content>
</paragraph>
<paragraph eId="d4e717">
<num>f</num>
<content>
<p>things being done at times or in ways specified by the Authority, the Director General or such an authorised person.</p>
</content>
</paragraph>
</subparagraph>
<subparagraph eId="d4e723">
<num>6</num>
<content>
<p>A condition prescribed under sub-paragraph (1)(c) may be one that is required to be fulfilled throughout a period, including a period ending after the time when a supply whose exemption turns on the fulfilment of the condition is treated as being made.</p>
</content>
</subparagraph>
<subparagraph eId="d4e729">
<num>7</num>
<content>
<p>The conditions that may be prescribed under sub-paragraph (4)(c) include in particular conditions in connection with any of the matters mentioned in paragraphs (b) to (f) of sub-paragraph (5).</p>
</content>
</subparagraph>
<subparagraph eId="d4e735">
<num>8</num>
<intro>
<p>Each of—</p>
</intro>
<paragraph eId="d4e741">
<num>a</num>
<content>
<p>the Gas and Electricity Markets Authority, and</p>
</content>
</paragraph>
<paragraph eId="d4e747">
<num>b</num>
<content>
<p>the Director General of Electricity Supply for Northern Ireland,</p>
</content>
</paragraph>
<wrapUp>
<p>shall supply the Commissioners with such information (whether or not obtained under this paragraph), and otherwise give the Commissioners such co-operation, as the Commissioners may require in connection with the application of this paragraph (whether generally or in relation to any particular case).</p>
</wrapUp>
</subparagraph>
<subparagraph eId="d4e755">
<num>9</num>
<content>
<p>Paragraph 19(10) (disclosure of information) applies in relation to sub-paragraph (8) above as it applies in relation to paragraph 19(8).</p>
</content>
</subparagraph>
</paragraph>
<paragraph eId="d4e765">
<num>20B</num>
<heading>
<em>Exemption under paragraph 20A: averaging periods</em>
</heading>
<subparagraph eId="d4e769">
<num>1</num>
<content>
<p>
This paragraph applies where a person (“
<term refersTo="#term-the-supplier">the supplier</term>
”) makes supplies of electricity on the basis that they are exempt under paragraph 20A (“
<term refersTo="#term-exempt-chp-supplies">
exempt
<abbr class="Acronym" title="Combined Heat and Power">CHP</abbr>
supplies
</term>
”).
</p>
</content>
</subparagraph>
<subparagraph eId="d4e784">
<num>2</num>
<intro>
<p>The rules about balancing and averaging periods are—</p>
</intro>
<paragraph eId="d4e790">
<num>a</num>
<content>
<p>a balancing period is a period of three months;</p>
</content>
</paragraph>
<paragraph eId="d4e796">
<num>b</num>
<content>
<p>when a balancing period ends, a new one begins;</p>
</content>
</paragraph>
<paragraph eId="d4e802">
<num>c</num>
<content>
<p>the first balancing period and the first averaging period begin at the same time;</p>
</content>
</paragraph>
<paragraph eId="d4e808">
<num>d</num>
<content>
<p>
unless the supplier specifies an earlier time, that time is the time when he is treated as making the first of the exempt
<abbr class="Acronym" title="Combined Heat and Power">CHP</abbr>
supplies;
</p>
</content>
</paragraph>
<paragraph eId="d4e817">
<num>e</num>
<content>
<p>when an averaging period ends, a new one begins;</p>
</content>
</paragraph>
<paragraph eId="d4e823">
<num>f</num>
<content>
<p>an averaging period ends once it has run for two years (but may end sooner under paragraph (g) or sub-paragraph (4)(a) or (5)(a));</p>
</content>
</paragraph>
<paragraph eId="d4e829">
<num>g</num>
<content>
<p>
if the supplier stops making exempt
<abbr class="Acronym" title="Combined Heat and Power">CHP</abbr>
supplies, the end of the balancing period in which he makes the last exempt
<abbr class="Acronym" title="Combined Heat and Power">CHP</abbr>
supply is also the end of the averaging period in which the balancing period falls.
</p>
</content>
</paragraph>
</subparagraph>
<subparagraph eId="d4e841">
<num>3</num>
<intro>
<p>At the end of each balancing period calculate—</p>
</intro>
<paragraph eId="d4e847">
<num>a</num>
<intro>
<p>the total of—</p>
</intro>
<subparagraph eId="d4e853">
<num>i</num>
<content>
<p>
the quantity of
<abbr class="Acronym" title="Combined Heat and Power">CHP</abbr>
electricity that the supplier acquired or generated in that period, and
</p>
</content>
</subparagraph>
<subparagraph eId="d4e862">
<num>ii</num>
<content>
<p>any balancing credit carried forward to that balancing period; and</p>
</content>
</subparagraph>
</paragraph>
<paragraph eId="d4e868">
<num>b</num>
<intro>
<p>the total of—</p>
</intro>
<subparagraph eId="d4e874">
<num>i</num>
<content>
<p>
the quantity of electricity supplied by exempt
<abbr class="Acronym" title="Combined Heat and Power">CHP</abbr>
supplies made by him in that period, and
</p>
</content>
</subparagraph>
<subparagraph eId="d4e883">
<num>ii</num>
<content>
<p>any balancing debit carried forward to that balancing period.</p>
</content>
</subparagraph>
</paragraph>
</subparagraph>
<subparagraph eId="d4e889">
<num>4</num>
<intro>
<p>If the total mentioned in sub-paragraph (3)(a) exceeds that mentioned in sub-paragraph (3)(b)—</p>
</intro>
<paragraph eId="d4e895">
<num>a</num>
<content>
<p>the averaging period within which the balancing period fell ends at the end of the balancing period, and</p>
</content>
</paragraph>
<paragraph eId="d4e901">
<num>b</num>
<content>
<p>a balancing credit equal to the difference between the two totals is carried forward to the next balancing period.</p>
</content>
</paragraph>
</subparagraph>
<subparagraph eId="d4e907">
<num>5</num>
<intro>
<p>If the totals mentioned in paragraphs (a) and (b) of sub-paragraph (3) are the same—</p>
</intro>
<paragraph eId="d4e913">
<num>a</num>
<content>
<p>the averaging period within which the balancing period fell ends at the end of the balancing period, and</p>
</content>
</paragraph>
<paragraph eId="d4e919">
<num>b</num>
<content>
<p>no balancing credit or debit is carried forward to the next balancing period.</p>
</content>
</paragraph>
</subparagraph>
<subparagraph eId="d4e925">
<num>6</num>
<content>
<p>Sub-paragraphs (7) and (8) apply if the total mentioned in sub-paragraph (3)(b) exceeds that mentioned in sub-paragraph (3)(a).</p>
</content>
</subparagraph>
<subparagraph eId="d4e931">
<num>7</num>
<intro>
<p>Where the end of the balancing period is by virtue of sub-paragraph (2)(g) the end of an averaging period, the supplier is liable to account to the Commissioners for an amount equal to the amount that would be payable by way of levy on a taxable supply that—</p>
</intro>
<paragraph eId="d4e937">
<num>a</num>
<content>
<p>is made at the end of the balancing period, and</p>
</content>
</paragraph>
<paragraph eId="d4e943">
<num>b</num>
<content>
<p>is a supply of a quantity of electricity equal to the difference between the two totals.</p>
<p>For the purposes of this Schedule, the amount for which the supplier is liable to account shall be treated as an amount of levy for which he is liable to account for an accounting period ending at the end of the balancing period.</p>
</content>
</paragraph>
</subparagraph>
<subparagraph eId="d4e952">
<num>8</num>
<content>
<p>Where sub-paragraph (7) does not apply, a balancing debit equal to the difference between the two totals is carried forward to the next balancing period.</p>
</content>
</subparagraph>
</paragraph>
</quotedStructure>
</mod>
<inline name="AppendText">.</inline>
</p>
</content>
</subsection>
<subsection eId="section-123-2">
<num>2</num>
<content>
<p>Subsection (1) has effect in relation to supplies of electricity made on or after such day as the Treasury may by order made by statutory instrument appoint.</p>
</content>
</subsection>
</section>
<section eId="section-124" period="#period2">
<num>124</num>
<heading> Climate change levy: certification requirement</heading>
<content>
<p>In Schedule 6 to the Finance Act 2000 (c. 17) (climate change levy), after paragraph 149 insert—</p>
<p class="BlockAmendment">
<mod>
<quotedStructure class="unknown unknown schedule default" startQuote="" endQuote="">
<paragraph eId="d4e980">
<num>149A</num>
<heading>
<em>Certification of electricity from fully or partly exempt combined heat and power station</em>
</heading>
<subparagraph eId="d4e984">
<num>1</num>
<intro>
<p>The Commissioners may by regulations make provision for the Gas and Electricity Markets Authority, or the Director General of Electricity Supply for Northern Ireland, to certify as respects any quantity of electricity that—</p>
</intro>
<paragraph eId="d4e990">
<num>a</num>
<content>
<p>the electricity has been produced in a fully exempt combined heat and power station;</p>
</content>
</paragraph>
<paragraph eId="d4e996">
<num>b</num>
<content>
<p>the electricity has been produced in a partly exempt combined heat and power station and supplied from the station without causing the limit referred to in paragraph 16(2) to be exceeded.</p>
</content>
</paragraph>
</subparagraph>
<subparagraph eId="d4e1002">
<num>2</num>
<intro>
<p>Regulations under this paragraph may provide that for any purposes of this Schedule (or any regulations made under it)—</p>
</intro>
<paragraph eId="d4e1008">
<num>a</num>
<content>
<p>electricity is not to be regarded as having been produced as specified in sub-paragraph (1)(a) unless it has been certified under that provision;</p>
</content>
</paragraph>
<paragraph eId="d4e1014">
<num>b</num>
<content>
<p>electricity is not to be regarded as having been produced and supplied as specified in sub-paragraph (1)(b) unless it has been certified under that provision.</p>
</content>
</paragraph>
</subparagraph>
<subparagraph eId="d4e1020">
<num>3</num>
<content>
<p>Regulations under this paragraph may in particular provide that the supply of any electricity does not qualify for the exemption under paragraph 16(2) unless the electricity is certified as specified in sub-paragraph (1)(b).</p>
</content>
</subparagraph>
<subparagraph eId="d4e1026">
<num>4</num>
<content>
<p>Regulations under this paragraph may also make provision for determining whether electricity is produced and supplied as specified in sub-paragraph (1)(b).</p>
</content>
</subparagraph>
</paragraph>
</quotedStructure>
</mod>
<inline name="AppendText">.</inline>
</p>
</content>
</section>
<section eId="section-125" period="#period2">
<num>125</num>
<heading> Climate change levy: exemption for renewable sources</heading>
<subsection eId="section-125-1">
<num>1</num>
<intro>
<p>In Schedule 6 to the Finance Act 2000 (c. 17) (climate change levy), in paragraph 20(7), (exemption under paragraph 19: liability to account)—</p>
</intro>
<paragraph eId="section-125-1-a">
<num>a</num>
<content>
<p>
for the words from “(2)(c)” to “2 years)” substitute
<mod>
<quotedText>“ (2)(g) ”</quotedText>
</mod>
,
</p>
</content>
</paragraph>
<paragraph eId="section-125-1-b">
<num>b</num>
<content>
<p>after paragraph (a) insert “and”, and</p>
</content>
</paragraph>
<paragraph eId="section-125-1-c">
<num>c</num>
<content>
<p>omit paragraph (c) and the preceding “and”.</p>
</content>
</paragraph>
</subsection>
<subsection eId="section-125-2">
<num>2</num>
<content>
<p>This section has effect in relation to averaging periods under paragraph 20 of that Schedule which end on or after the day on which this Act is passed.</p>
</content>
</subsection>
</section>
<section eId="section-126" period="#period4">
<num>
<noteRef href="#key-857dd261d7d66c4d5422aedc44a4d379" marker="F1" class="commentary F"/>
126
</num>
<heading> Climate change levy: electricity produced from coal mine methane</heading>
<content>
<p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p>
</content>
</section>
<section eId="section-127" period="#period2">
<num>127</num>
<heading> Climate change levy: incorrect certificates</heading>
<subsection eId="section-127-1">
<num>1</num>
<intro>
<p>
In Schedule 6 to the Finance Act 2000 (climate change levy), in sub-paragraph (2)(a) of paragraph 101 (civil penalties: incorrect notifications
<abbr title="Et cetera" xml:lang="la">etc</abbr>
)—
</p>
</intro>
<paragraph eId="section-127-1-a">
<num>a</num>
<content>
<p>
in sub-paragraph (ii) for “18 and 21, or” substitute
<mod>
<quotedText>“ 15, 18 and 21, ”</quotedText>
</mod>
;
</p>
</content>
</paragraph>
<paragraph eId="section-127-1-b">
<num>b</num>
<content>
<p>before the word “and” at the end of sub-paragraph (iii) insert—</p>
<p class="BlockAmendment">
<mod>
<quotedStructure class="unknown unknown unknown default" startQuote="" endQuote="">
<p class="run-on">, or </p>
<subparagraph eId="d4e1118">
<num>iv</num>
<content>
<p>a reduced-rate supply (or reduced-rate supplies),</p>
</content>
</subparagraph>
</quotedStructure>
</mod>
<inline name="AppendText">.</inline>
</p>
</content>
</paragraph>
</subsection>
<subsection eId="section-127-2">
<num>2</num>
<content>
<p>This section applies in relation to certificates given in respect of any supplies made on or after 24th April 2002.</p>
</content>
</subsection>
</section>
<section eId="section-128" period="#period2">
<num>128</num>
<heading> Climate change levy: invoices incorrectly showing levy due</heading>
<subsection eId="section-128-1">
<num>1</num>
<content>
<p>In Schedule 6 to the Finance Act 2000 (climate change levy), immediately before paragraph 142 insert—</p>
<p class="BlockAmendment">
<mod>
<quotedStructure class="unknown unknown schedule default" startQuote="" endQuote="">
<paragraph eId="d4e1150">
<num>141A</num>
<heading>
<em>Invoices incorrectly showing levy due</em>
</heading>
<subparagraph eId="d4e1154">
<num>1</num>
<intro>
<p>This paragraph applies where—</p>
</intro>
<paragraph eId="d4e1160">
<num>a</num>
<content>
<p>a person issues an invoice showing an amount as levy chargeable on a supply, and</p>
</content>
</paragraph>
<paragraph eId="d4e1166">
<num>b</num>
<content>
<p>no levy is chargeable on the supply, or the amount chargeable is less than the amount shown.</p>
</content>
</paragraph>
</subparagraph>
<subparagraph eId="d4e1172">
<num>2</num>
<content>
<p>The person shall be liable to a penalty unless he satisfies the Commissioners or, on appeal, a tribunal that there is a reasonable excuse for the inclusion in the invoice of the false information.</p>
</content>
</subparagraph>
<subparagraph eId="d4e1178">
<num>3</num>
<intro>
<p>The amount of the penalty is £50 or, if more, the following amount—</p>
</intro>
<paragraph eId="d4e1184">
<num>a</num>
<content>
<p>where no levy is chargeable, the amount shown as chargeable;</p>
</content>
</paragraph>
<paragraph eId="d4e1190">
<num>b</num>
<content>
<p>where an amount of levy is chargeable, the difference between that amount and the amount shown as chargeable.</p>
</content>
</paragraph>
</subparagraph>
<subparagraph eId="d4e1196">
<num>4</num>
<content>
<p>It is irrelevant for the purposes of sub-paragraph (1) whether or not the supply shown on the invoice actually takes place or has taken place.</p>
</content>
</subparagraph>
<subparagraph eId="d4e1202">
<num>5</num>
<content>
<p>A reference in this paragraph to an invoice is a reference to any kind of invoice (and not just a climate change levy accounting document).</p>
</content>
</subparagraph>
</paragraph>
</quotedStructure>
</mod>
<inline name="AppendText">.</inline>
</p>
</content>
</subsection>
<subsection eId="section-128-2">
<num>2</num>
<content>
<p>This section applies only in relation to invoices issued on or after the day on which this Act is passed.</p>
</content>
</subsection>
</section>
</hcontainer>
<hcontainer name="crossheading" eId="part-5-crossheading-aggregates-levy" period="#period5">
<heading>Aggregates levy</heading>
<section eId="section-129" period="#period2">
<num>129</num>
<heading> Aggregates levy: transitional relief for Northern Ireland</heading>
<subsection eId="section-129-1">
<num>1</num>
<content>
<p>After section 30 of the Finance Act 2001 (c. 9) (credit for aggregates levy) insert—</p>
<p class="BlockAmendment">
<mod>
<quotedStructure class="primary unknown main default" startQuote="" endQuote="">
<section eId="d4e1236">
<num>30A</num>
<heading> Transitional tax credit in Northern Ireland</heading>
<subsection eId="d4e1240">
<num>1</num>
<intro>
<p>The Commissioners may by regulations make provision of the kind described in section 30(2) above (entitlement to tax credit) in relation to cases where aggregate is used in Northern Ireland for a prescribed purpose—</p>
</intro>
<paragraph eId="d4e1246">
<num>a</num>
<content>
<p>on or after the commencement date, and</p>
</content>
</paragraph>
<paragraph eId="d4e1252">
<num>b</num>
<content>
<p>before 1st April 2007.</p>
</content>
</paragraph>
</subsection>
<subsection eId="d4e1258">
<num>2</num>
<content>
<p>In relation to the use of aggregate in the year ending with a date shown in the first column of the following table, the amount of any tax credit to which a person would otherwise by entitled by virtue of the regulations shall be reduced by the percentage of that amount shown opposite that date in the second column.</p>
<tblock class="tabular">
<table>
<tr>
<th>
<p>
<em>Year ending</em>
</p>
</th>
<th>
<p>
<em>Reduction in tax credit</em>
</p>
</th>
</tr>
<tr>
<td>
<p>31st March 2004</p>
</td>
<td>
<p>20%</p>
</td>
</tr>
<tr>
<td>
<p>31st March 2005</p>
</td>
<td>
<p>40%</p>
</td>
</tr>
<tr>
<td>
<p>31st March 2006</p>
</td>
<td>
<p>60%</p>
</td>
</tr>
<tr>
<td>
<p>31st March 2007</p>
</td>
<td>
<p>80%</p>
</td>
</tr>
</table>
</tblock>
</content>
</subsection>
<subsection eId="d4e1294">
<num>3</num>
<content>
<p>Subsections (3) to (5) of section 30 above apply to regulations under this section as they apply to regulations under that section.</p>
</content>
</subsection>
</section>
</quotedStructure>
</mod>
<inline name="AppendText">.</inline>
</p>
</content>
</subsection>
<subsection eId="section-129-2">
<num>2</num>
<content>
<p>
In section 17(6) of that Act (certain tax credits to be disregarded in determining whether aggregate has already been charged to levy), in paragraph (a) after “section 30(1)(c)” insert
<mod>
<quotedText>“ or 30A ”</quotedText>
</mod>
.
</p>
</content>
</subsection>
</section>
<section eId="section-130" period="#period1">
<num>130</num>
<heading>
Aggregates levy: amendments to provisions exempting spoil
<abbr title="Et cetera" xml:lang="la">etc</abbr>
</heading>
<subsection eId="section-130-1">
<num>1</num>
<intro>
<p>In section 17(3) of the Finance Act 2001 (c. 9) (aggregate that is exempt)—</p>
</intro>
<paragraph eId="section-130-1-a">
<num>a</num>
<content>
<p>
in paragraph (e) (by-products of extracting china clay or ball clay), after “or other by-products” insert
<mod>
<quotedText>“ , not including the overburden, ”</quotedText>
</mod>
;
</p>
</content>
</paragraph>
<paragraph eId="section-130-1-b">
<num>b</num>
<content>
<p>after that paragraph insert—</p>
<p class="BlockAmendment">
<mod>
<quotedStructure class="unknown unknown unknown default" startQuote="" endQuote="">
<paragraph eId="d4e1342">
<num>f</num>
<intro>
<p>it consists wholly of the spoil from any process by which—</p>
</intro>
<subparagraph eId="d4e1348">
<num>i</num>
<content>
<p>coal, lignite, slate or shale, or</p>
</content>
</subparagraph>
<subparagraph eId="d4e1354">
<num>ii</num>
<content>
<p>a substance listed in section 18(3) below,</p>
</content>
</subparagraph>
<wrapUp>
<p>has been separated from other rock after being extracted or won with that other rock;</p>
</wrapUp>
</paragraph>
</quotedStructure>
</mod>
<inline name="AppendText">.</inline>
</p>
</content>
</paragraph>
</subsection>
<subsection eId="section-130-2">
<num>2</num>
<content>
<p>Omit section 17(4)(b) of that Act (aggregate exempt if it consists, or is part of anything consisting, wholly or mainly of spoil from the separation of coal from other rock after extraction).</p>
</content>
</subsection>
<subsection eId="section-130-3">
<num>3</num>
<content>
<p>This section shall be deemed to have come into force on 1st April 2002.</p>
</content>
</subsection>
</section>
<section eId="section-131" period="#period1">
<num>131</num>
<heading> Aggregates levy: crushing and cutting rock</heading>
<subsection eId="section-131-1">
<num>1</num>
<content>
<p>In section 17(3) of the Finance Act 2001 (exempt aggregate), omit paragraph (a) (exemption for rock that has not been subjected to an industrial crushing process).</p>
</content>
</subsection>
<subsection eId="section-131-2">
<num>2</num>
<content>
<p>
In section 18(2)(a) of that Act (exemption for production of dimension stone), for “dimension stone” substitute
<mod>
<quotedText>“ stone with one or more flat surfaces ”</quotedText>
</mod>
.
</p>
</content>
</subsection>
<subsection eId="section-131-3">
<num>3</num>
<intro>
<p>The following amendments to that Act are consequential on that made by subsection (1)—</p>
</intro>
<paragraph eId="section-131-3-a">
<num>a</num>
<intro>
<p>in section 20(1) (originating sites), omit—</p>
</intro>
<subparagraph eId="section-131-3-a-i">
<num>i</num>
<content>
<p>the words “and is not rock” in paragraphs (a) and (b), and</p>
</content>
</subparagraph>
<subparagraph eId="section-131-3-a-ii">
<num>ii</num>
<content>
<p>paragraph (c);</p>
</content>
</subparagraph>
</paragraph>
<paragraph eId="section-131-3-b">
<num>b</num>
<content>
<p>in section 21 (operators of sites), omit subsection (2)(b);</p>
</content>
</paragraph>
<paragraph eId="section-131-3-c">
<num>c</num>
<content>
<p>in section 24 (the register), omit subsections (6)(b) and (8)(a).</p>
</content>
</paragraph>
</subsection>
<subsection eId="section-131-4">
<num>4</num>
<content>
<p>This section shall be deemed to have come into force on 1st April 2002.</p>
</content>
</subsection>
</section>
<section eId="section-132" period="#period1">
<num>132</num>
<heading> Aggregates levy: miscellaneous amendments</heading>
<subsection eId="section-132-1">
<num>1</num>
<content>
<p>Schedule 38 to this Act, which makes amendments to provisions in Part 2 of the Finance Act 2001 (aggregates levy), has effect.</p>
</content>
</subsection>
<subsection eId="section-132-2">
<num>2</num>
<content>
<p>
In section 197(2) of the Finance Act 1996 (c. 8) (enactments for which interest rates are set under section 197), in paragraph (h) (aggregates levy provisions) in sub-paragraph (ii) for “paragraph 8(3)(a)” substitute
<mod>
<quotedText>“ paragraphs 6 and 8(3)(a) ”</quotedText>
</mod>
.
</p>
</content>
</subsection>
<subsection eId="section-132-3">
<num>3</num>
<content>
<p>This section shall be deemed to have come into force on 1st April 2002.</p>
</content>
</subsection>
</section>
<section eId="section-133" period="#period5">
<num>133</num>
<heading> Aggregates levy: amendments to provisions about civil penalties</heading>
<subsection eId="section-133-1">
<num>1</num>
<content>
<p>Part 2 of Schedule 6 to the Finance Act 2001 (c. 9) (aggregates levy: civil penalties) is amended as follows.</p>
</content>
</subsection>
<subsection eId="section-133-2" period="#period5">
<num>
<noteRef href="#key-a4759f294573fd25dd2015d22ccf0405" marker="F2" class="commentary F"/>
2
</num>
<content>
<p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p>
</content>
</subsection>
<subsection eId="section-133-3" period="#period5">
<num>
<noteRef href="#key-a4759f294573fd25dd2015d22ccf0405" marker="F2" class="commentary F"/>
3
</num>
<content>
<p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p>
</content>
</subsection>
<subsection eId="section-133-4" period="#period5">
<num>
<noteRef href="#key-a4759f294573fd25dd2015d22ccf0405" marker="F2" class="commentary F"/>
4
</num>
<content>
<p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p>
</content>
</subsection>
<subsection eId="section-133-5">
<num>5</num>
<content>
<p>After paragraph 9 insert—</p>
<p class="BlockAmendment">
<mod>
<quotedStructure class="unknown unknown unknown default" startQuote="" endQuote="">
<section eId="d4e1516">
<num>9A</num>
<heading>
<em>
Incorrect records
<abbr title="Et cetera" xml:lang="la">etc</abbr>
evidencing claim for tax credit
</em>
</heading>
<subsection eId="d4e1520">
<num>1</num>
<intro>
<p>This paragraph applies where—</p>
</intro>
<paragraph eId="d4e1526">
<num>a</num>
<intro>
<p>a claim is made for a tax credit in such a case as is mentioned in—</p>
</intro>
<subparagraph eId="d4e1532">
<num>i</num>
<content>
<p>section 30(1)(c) of this Act (aggregate used in a prescribed industrial or agricultural process), or</p>
</content>
</subparagraph>
<subparagraph eId="d4e1538">
<num>ii</num>
<content>
<p>section 30A of this Act (transitional tax credit in Northern Ireland);</p>
</content>
</subparagraph>
</paragraph>
<paragraph eId="d4e1544">
<num>b</num>
<content>
<p>a record or other document is provided to the Commissioners as evidence for the claim; and</p>
</content>
</paragraph>
<paragraph eId="d4e1550">
<num>c</num>
<content>
<p>the record or document is incorrect.</p>
</content>
</paragraph>
</subsection>
<subsection eId="d4e1556">
<num>2</num>
<content>
<p>The person who provided the document to the Commissioners, and any person who provided it to anyone else with a view to its being used as evidence for a claim for a tax credit, shall be liable to a penalty.</p>
</content>
</subsection>
<subsection eId="d4e1562">
<num>3</num>
<intro>
<p>The amount of the penalty shall be equal to 105 per cent of the difference between—</p>
</intro>
<paragraph eId="d4e1568">
<num>a</num>
<content>
<p>the amount of tax credit that would have been due on the claim if the record or document had been correct, and</p>
</content>
</paragraph>
<paragraph eId="d4e1574">
<num>b</num>
<content>
<p>the amount (if any) of tax credit actually due on the claim.</p>
</content>
</paragraph>
</subsection>
<subsection eId="d4e1580">
<num>4</num>
<content>
<p>The providing of a record or other document shall not give rise to a penalty under this paragraph if the person who provided it satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for his having provided it.</p>
</content>
</subsection>
<subsection eId="d4e1586">
<num>5</num>
<intro>
<p>Where by reason of providing a record or other document—</p>
</intro>
<paragraph eId="d4e1592">
<num>a</num>
<content>
<p>a person is convicted of an offence (whether under this Act or otherwise), or</p>
</content>
</paragraph>
<paragraph eId="d4e1598">
<num>b</num>
<content>
<p>a person is assessed to a penalty under paragraph 7 or 9 above,</p>
</content>
</paragraph>
<wrapUp>
<p>that person shall not by reason of the providing of the record or document be liable also to a penalty under this paragraph.</p>
</wrapUp>
</subsection>
</section>
</quotedStructure>
</mod>
<inline name="AppendText">.</inline>
</p>
</content>
</subsection>
<subsection eId="section-133-6">
<num>6</num>
<content>
<p>This section shall be deemed to have come into force on 1st May 2002.</p>
</content>
</subsection>
</section>
</hcontainer>
</part>
</portionBody>
</portion>
</akomaNtoso>