Finance (No. 2) Act 2023

Chapter 7 U.K. Wholesaling of controlled alcoholic products

98 Definitions U.K.

(1) This section defines certain expressions used in this Chapter.

(2) A sale is of “controlled alcoholic products” if—

(a) it is a sale of alcoholic products on which alcohol duty is charged under this Part at a rate greater than nil, and

(b) the excise duty point for the alcoholic products falls at or before the time of the sale.

(3) Controlled alcoholic products are sold “wholesale” if—

(a) the sale is of any quantity of the alcoholic products,

(b) the seller is carrying on a trade or business and the sale is made in the course of that trade or business,

(c) the sale is to a buyer carrying on a trade or business, for sale or supply in the course of that trade or business, and

(d) the sale is not an incidental sale, a group sale or an excluded sale,

and a reference to buying controlled alcoholic products wholesale is to be read accordingly.

(4) A sale is an “incidental sale” if—

(a) the seller makes authorised retail sales of alcoholic products of any description, and

(b) the sale is incidental to those sales.

(5) A sale is an “authorised retail sale” if it is made by retail under and in accordance with a licence or other authorisation under an enactment regulating the sale and supply of alcohol.

(6) A sale is a “group sale” if the seller and the buyer are both bodies corporate which are members of the same group (see section 106).

(7) A sale is an “excluded sale” if it is of a description specified by or under regulations made by the Commissioners.

(8) “Controlled activity” means—

(a) selling controlled alcoholic products wholesale,

(b) offering or exposing controlled alcoholic products for sale in circumstances in which the sale (if made) would be a wholesale sale, or

(c) arranging in the course of a trade or business for controlled alcoholic products to be sold wholesale, or offered or exposed for sale in circumstances in which the sale (if made) would be a wholesale sale.

(9) “UK person” means a person who is UK-established for the purposes of value added tax (see paragraph 1(10) of Schedule 1 to VATA 1994).

(10) “Enactment” includes an enactment contained in—

(a) an Act of the Scottish Parliament;

(b) an Act or Measure of Senedd Cymru;

(c) Northern Ireland legislation.

(11) References in this Chapter to the “alcohol wholesaling provisions” are references to this section and sections 99 to 106, and Schedule 10.

Commencement Information

I1 S. 98 in force at Royal Assent for specified purposes, see s. 120(1)(b)

I2 S. 98 in force at 1.8.2023 in so far as not already in force by S.I. 2023/884, reg. 2(1)(e) (with reg. 10)

99 Further provision relating to definitions U.K.

(1) The Commissioners may by regulations make provision as to the cases in which sales are, or are not, to be treated for the purposes of this Chapter as—

(a) wholesale sales,

(b) sales of controlled alcoholic products,

(c) incidental sales,

(d) authorised retail sales, or

(e) group sales.

(2) The Commissioners may by regulations make provision as to the cases in which a person is, or is not, to be treated for the purposes of this Chapter as carrying on a controlled activity by virtue of section 98(8)(b) or (c).

Commencement Information

I3 S. 99 in force at Royal Assent for specified purposes, see s. 120(1)(b)

I4 S. 99 in force at 1.8.2023 in so far as not already in force by S.I. 2023/884, reg. 2(1)(e) (with reg. 10)

100 Approval to carry on controlled activity U.K.

(1) A UK person may not carry on a controlled activity otherwise than in accordance with an approval given by the Commissioners under this section.

(2) The Commissioners may approve a person under this section to carry on a controlled activity only if they are satisfied that the person is a fit and proper person to carry on the activity.

(3) The Commissioners may approve a person under this section to carry on a controlled activity for such period as they think fit.

(4) An approval may be given subject to the conditions or restrictions (if any)—

(a) specified by the Commissioners in a notice published by them;

(b) specified by or under regulations made by them;

(c) imposed by them in a particular case.

(5) The conditions or restrictions may include conditions or restrictions requiring the controlled activity to be carried on only at or from premises specified or approved by the Commissioners.

(6) The Commissioners may at any time revoke or vary the terms of an approval under this section.

(7) In this Chapter “approved wholesaler” means a person approved under this section to carry on a controlled activity.

Commencement Information

I5 S. 100 in force at Royal Assent for specified purposes, see s. 120(1)(b)

I6 S. 100 in force at 1.8.2023 in so far as not already in force by S.I. 2023/884, reg. 2(1)(e) (with reg. 10)

101 The register of approved wholesalers U.K.

(1) The Commissioners must maintain a register of approved wholesalers.

(2) The register is to contain such information relating to approved wholesalers as the Commissioners consider appropriate.

(3) The Commissioners may make publicly available such information contained in the register as they consider necessary to enable those who deal with a person who carries on a controlled activity to determine whether the person in question is an approved wholesaler for the purposes of that activity.

(4) The information may be made available by such means as the Commissioners consider appropriate.

Commencement Information

I7 S. 101 not in force at Royal Assent, see s. 120(2)

I8 S. 101 in force at 1.8.2023 by S.I. 2023/884, reg. 2(1)(e) (with reg. 10)

102 Regulations relating to approval, registration and controlled activities U.K.

(1) The Commissioners may by regulations make provision—

(a) regulating the approval and registration of persons under the alcohol wholesaling provisions,

(b) regulating the variation or revocation of any such approval or registration or of any condition or restriction to which such an approval or registration is subject,

(c) about the register maintained under section 101,

(d) regulating the carrying on of controlled activities, and

(e) imposing obligations on approved wholesalers.

(2) The regulations may, in particular, make provision—

(a) requiring applications, and other communications with the Commissioners, to be made electronically;

(b) as to the procedure for the approval and registration of bodies corporate which are members of the same group and for members of such a group to be jointly and severally liable for any penalties imposed under—

(i) the regulations, or

(ii) Schedule 10;

(c) requiring approved wholesalers to keep and make available for inspection such records relating to controlled activities as may be specified by or under the regulations;

(d) conferring powers on an officer of Revenue and Customs to inspect, copy or remove for a reasonable period those records;

(e) imposing a penalty of an amount specified by the regulations (which must not exceed £1,000) for a contravention of—

(i) the regulations, or

(ii) any condition or restriction imposed under the alcohol wholesaling provisions;

(f) for the assessment and recovery of such a penalty;

(g) for alcoholic products (whether or not charged with any duty and whether or not that duty has been paid) to be subject to forfeiture for a contravention of—

(i) the alcohol wholesaling provisions or the regulations made under this section, or

(ii) any condition or restriction imposed under the alcohol wholesaling provisions.

Commencement Information

I9 S. 102 in force at Royal Assent for specified purposes, see s. 120(1)(b)

I10 S. 102 in force at 1.8.2023 in so far as not already in force by S.I. 2023/884, reg. 2(1)(e) (with reg. 10)

103 Restriction on buying controlled alcoholic products wholesale U.K.

(1) A person may not—

(a) buy controlled alcoholic products wholesale from a UK person, unless the person is an approved wholesaler in relation to the sale, or

(b) buy relevant alcoholic products from an Isle of Man person, unless the person is an Isle of Man approved wholesaler.

(2) In this section and in section 104(4)—

(a) “Isle of Man person” means a person who is established in the Isle of Man for the purposes of value added tax under any provision of the law in force in the Isle of Man corresponding to paragraph 1(10) of Schedule 1 to VATA 1994;

(b) “Isle of Man approved wholesaler” means an Isle of Man person who is approved under any provision of the law in force in the Isle of Man corresponding to section 100;

(c) “relevant alcoholic products” means alcoholic products which, if they had been produced in the United Kingdom, would have been charged with alcohol duty under this Part at a rate greater than nil.

Commencement Information

I11 S. 103 not in force at Royal Assent, see s. 120(2)

I12 S. 103 in force at 1.8.2023 by S.I. 2023/884, reg. 2(1)(e) (with reg. 10)

104 Offences U.K.

(1) A person who contravenes section 100(1) by selling controlled alcoholic products wholesale commits an offence if the person knows or has reasonable grounds to suspect that—

(a) the buyer is carrying on a trade or business, and

(b) the alcoholic products are for sale or supply in the course of that trade or business.

(2) A person who contravenes section 100(1) by offering or exposing controlled alcoholic products for sale in circumstances in which the sale (if made) would be a wholesale sale commits an offence if the person intends to make a wholesale sale of the alcoholic products.

(3) A person who contravenes section 100(1) by arranging in the course of a trade or business for controlled alcoholic products to be sold wholesale, or offered or exposed for sale in circumstances in which the sale (if made) would be a wholesale sale, commits an offence if the person intends to arrange for the alcoholic products to be sold wholesale.

(4) A person who contravenes section 103 commits an offence if the person knows or has reasonable grounds to suspect that—

(a) the UK person from whom the controlled alcoholic products are bought is not an approved wholesaler in relation to the sale, or

(b) the Isle of Man person from whom the relevant alcoholic products are bought is not an Isle of Man approved wholesaler in relation to the sale.

(5) A person who commits an offence under this section is liable on summary conviction—

(a) in England and Wales to—

(i) imprisonment for a term not exceeding the general limit in a magistrates’ court,

(ii) a fine, or

(iii) both,

(b) in Scotland to—

(i) imprisonment for a term not exceeding 12 months,

(ii) a fine not exceeding the statutory maximum, or

(iii) both, and

(c) in Northern Ireland to—

(i) imprisonment for a term not exceeding 6 months,

(ii) a fine not exceeding the statutory maximum, or

(iii) both.

(6) A person who commits an offence under this section is liable on conviction on indictment to—

(a) imprisonment for a period not exceeding 7 years,

(b) a fine, or

(c) both.

Commencement Information

I13 S. 104 not in force at Royal Assent, see s. 120(2)

I14 S. 104 in force at 1.8.2023 by S.I. 2023/884, reg. 2(1)(e) (with reg. 10)

105 Penalties U.K.

Schedule 10 contains provision about penalties for contraventions of the alcohol wholesaling provisions.

Commencement Information

I15 S. 105 in force at Royal Assent for specified purposes, see s. 120(1)(b)

I16 S. 105 in force at 1.8.2023 in so far as not already in force by S.I. 2023/884, reg. 2(1)(e) (with reg. 10)

106 Groups U.K.

(1) Two or more bodies corporate are members of a group for the purposes of the alcohol wholesaling provisions if each is established or has a fixed establishment in the United Kingdom and—

(a) one of them controls each of the others,

(b) one person (whether a body corporate or an individual) controls all of them, or

(c) two or more individuals carrying on a business in partnership control all of them.

(2) For the purposes of this section, a body corporate is to be taken to control another body corporate if—

(a) it is empowered by or under an enactment to control that body’s activities, or

(b) it is that body’s holding company within the meaning of section 1159 of, and Schedule 6 to, the Companies Act 2006.

(3) For the purposes of this section—

(a) an individual or individuals are to be taken to control a body corporate if the individual or individuals (were the individual or individuals a company) would be that body’s holding company within the meaning of section 1159 of, and Schedule 6 to, the Companies Act 2006 (meaning of “subsidiary” etc), and

(b) a body corporate is established or has a fixed establishment in the United Kingdom if it is so established or has such an establishment for the purposes of value added tax.

Commencement Information

I17 S. 106 not in force at Royal Assent, see s. 120(2)

I18 S. 106 in force at 1.8.2023 by S.I. 2023/884, reg. 2(1)(e) (with reg. 10)

107 Index of defined expressions: Chapter 7 U.K.

The following Table sets out expressions defined or explained for the purposes of this Chapter—

Expression	Provision
alcohol wholesaling provisions	section 98(11)
approved wholesaler	section 100(7)
authorised retail sale	section 98(5)
controlled activity	section 98(8)
enactment	section 98(10)
group (in relation to bodies corporate)	section 106(1)
group sale	section 98(6)
incidental sale	section 98(4)
Isle of Man person and Isle of Man approved wholesaler	section 103(2)(a) and (b)
relevant alcoholic products (for the purposes of sections 103 and 104(4))	section 103(2)(c)
sale of controlled alcoholic products	section 98(2)
UK person	section 98(9)
wholesale	section 98(3)

Commencement Information

I19 S. 107 not in force at Royal Assent, see s. 120(2)

I20 S. 107 in force at 1.8.2023 by S.I. 2023/884, reg. 2(1)(e) (with reg. 10)