The Finance Act 2016, Section 126 (Appointed Day), the Taxation (Cross-border Trade) Act 2018 (Appointed Day No. 8, Transition and Saving Provisions) and the Taxation (Post-transition Period) Act 2020 (Appointed Day No. 1) (EU Exit) Regulations 2020

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations appoint IP completion day as the day on which various provisions of primary legislation come into force in consequence of the United Kingdom exiting the EU.

Regulation 3 provides that the amendments to the Value Added Tax Act 1994 (c. 23) made by section 126 of the Finance Act 2016 (c. 24) have effect in relation to supplies made, and acquisitions and importations taking place, on or after IP completion day. This changes the rate of value added tax applicable to women’s sanitary products from a reduced rate to a zero-rate.

Regulation 4 brings into force on IP completion day all the provisions of the Taxation (Cross-border Trade) Act 2018 (c. 22), so far as not already in force, except paragraph 90 of Schedule 7 (which relates to the repeal of section 119 of the Customs and Excise Management Act 1979 (c. 2) (delivery of imported goods on giving of security for duty)).

Regulation 5 makes a saving provision in relation to section 5 of the Customs and Excise Duties (General Reliefs) Act 1979 (c. 3), which relates to relief from customs duty of certain goods from the Channel Islands and is repealed by paragraph 123 of Schedule 7 to the Taxation (Cross-border Trade) Act 2018 (c. 22), in relation to goods removed to Great Britain from the Channel Islands.

Regulation 6 prevents the amendment to section 12 of the Finance Act 1994 (c. 9), which relates to assessments of excise duty or penalties, from having any effect in relation to failures, omissions or inaccuracies occurring before IP completion day.

Regulation 7 makes a saving provision in relation to the value added tax provisions that are being brought into force to ensure that existing subordinate legislation made under any amended, modified or repealed provisions will continue to have effect.

Regulation 8 ensures that penalty provisions in Schedule 41 to the Finance Act 2008 (c. 9) continue to have effect where goods are released for free circulation after IP completion day in accordance with the Union Customs Code.

Regulation 9 brings into force on IP completion day all the provisions of the Taxation (Post-transition Period) Act 2020 (c. 26), so far as not already in force, except paragraph 7(3) of Schedule 2.

A Tax Information and Impact Note has not been prepared for these Regulations as they give effect to previously announced policy and are appointed day regulations.