Finance Act 2005
| Year | 2005 |
Finance Act 2005
2005 CHAPTER 7
An 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.
[7th April 2005]
Most Gracious Sovereign
W e , Your Majesty's most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary supplies to defray Your Majesty's public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and to grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows—
Part 1
Excise duties
Tobacco products duty
1 Rates of tobacco products duty
(1) For the Table of rates of duty in Schedule 1 to the Tobacco Products Duty Act 1979 (c. 7) substitute—
Table
1. Cigarettes |
An amount equal to 22 per cent of the retail price plus 102.39 per thousand cigarettes. |
2. Cigars |
149.12 per kilogram. |
3. Hand-rolling tobacco |
107.18 per kilogram. |
4. Other smoking tobacco and chewing tobacco |
65.56 per kilogram. |
(2) This section shall be deemed to have come into force at 6 o'clock in the evening of 16th March 2005.
Alcoholic liquor duties
2 Rate of duty on beer
(1) In section 36(1AA)(a) of ALDA 1979 (rate of duty on beer) for ‘12.59’ substitute ‘12.92’.
(2) This section shall be deemed to have come into force at midnight on 20th March 2005.
3 Rates of duty on wine and made-wine
(1) For Part 1 of the Table of rates of duty in Schedule 1 to ALDA 1979 (rates of duty on wine and made-wine) substitute—
Part 1
Wine and made-wine of a strength not exceeding 22 per cent
Description of wine or made-wine |
Rates of duty perhectolitre |
Wine or made-wine of a strength not exceeding 4 per cent |
51.69 |
Wine or made-wine of a strength exceeding 4 per cent but not exceeding 5.5 per cent |
71.07 |
Wine or made-wine of a strength exceeding 5.5 per cent but not exceeding 15 per cent and not sparkling |
167.72 |
Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent but less than 8.5 per cent |
166.70 |
Description of wine or made-wine |
Rates of duty perhectolitre |
Sparkling wine or sparkling made-wine of a strength of 8.5 per cent or of a strength exceeding 8.5 per cent but not exceeding 15 per cent |
220.54 |
Wine or made-wine of a strength exceeding 15 per cent but not exceeding 22 per cent |
223.62 |
(2) This section shall be deemed to have come into force at midnight on 20th March 2005.
Hydrocarbon oil etc duties
4 Consolidation of current rates of hydrocarbon oil duties etc.
(1) HODA 1979 is amended as follows.
(2) In subsection (1A) of section 6 (hydrocarbon oil: rates of duty)—
(a) in paragraph (a) (ultra low sulphur petrol), for ‘0.4902’ substitute ‘0.4710’,
(b) in paragraph (aa) (sulphur-free petrol), for ‘0.4852’ substitute ‘0.4710’,
(c) in paragraph (b) (light oil other than ultra low sulphur petrol and sulphur-free petrol), for ‘0.5790’ substitute ‘0.5620’,
(d) in paragraph (c) (ultra low sulphur diesel), for ‘0.4902’ substitute ‘0.4710’,
(e) in paragraph (ca) (sulphur-free diesel), for ‘0.4852’ substitute ‘0.4710’, and
(f) in paragraph (d) (heavy oil other than ultra low sulphur diesel and sulphur-free diesel), for ‘0.5487’ substitute ‘0.5327’.
(3) In subsection (3) of that section (aviation gasoline), for ‘(1A) above in relation to light oil’ substitute ‘(1A)(b) above’.
(4) In section 6AA(3) (biodiesel), for ‘0.2852’ substitute ‘0.2710’.
(5) In section 6AD(3) (bioethanol), for ‘0.2852’ substitute ‘0.2710’.
(6) In section 8(3) (road fuel gas)—
(a) in paragraph (a) (natural road fuel gas), for ‘0.1110’ substitute ‘0.0900’, and
(b) in paragraph (b) (other road fuel gas), for ‘0.1303’ substitute ‘0.0900’.
(7) In section 11(1) (rebate on heavy oil)—
(a) in paragraph (a) (fuel oil), for ‘0.0624’ substitute ‘0.0482’,
(b) in paragraph (b) (gas oil which is not ultra low sulphur diesel), for ‘0.0664’ substitute ‘0.0522’, and
(c) in paragraph (ba) (ultra low sulphur diesel), for ‘0.0664’ substitute ‘0.0522’.
(8) In section 13AA(1) (restrictions on use of rebated kerosene), for ‘for rebated gas oil which is then in force, instead of at the rate then in force under section 11(1)(c) above’ substitute ‘then in force under paragraph (b) of subsection (1) of section 11, instead of at the rate then in force under paragraph (c) of that subsection’.
(9) In section 13A(1) (rebate on unleaded petrol), for ‘0.0620’ substitute ‘0.0601’.
(10) In section 14(1) (rebate on light oil for use as furnace oil), for ‘0.0624’ substitute ‘0.0482’.
(11) In consequence of the preceding provisions the following instruments are revoked—
(a) the Excise Duties (Surcharges or Rebates) (Hydrocarbon Oils etc.) Order 2004 (S.I. 2004/2063),
(b) the Excise Duties (Road Fuel Gas) (Reliefs) Regulations 2004 (S.I. 2004/2069),
(c) the Excise Duties (Surcharges or Rebates) (Hydrocarbon Oils etc.) (Amendment) Order 2004 (S.I. 2004/3160), and
(d) the Excise Duties (Surcharges or Rebates) (Bioethanol) Order 2004 (S.I. 2004/3162).
(12) This section comes into force on the day on which this Act is passed.
5 Rates of hydrocarbon oil duties etc. from 1st September 2005
(1) HODA 1979 is amended as follows.
(2) In subsection (1A) of section 6 (hydrocarbon oil: rates of duty)—
(a) in paragraph (a) (ultra low sulphur petrol), for ‘0.4710’ substitute ‘0.4832’,
(b) in paragraph (aa) (sulphur-free petrol), for ‘0.4710’ substitute ‘0.4832’,
(c) in paragraph (b) (light oil other than ultra low sulphur petrol and sulphur-free petrol), for ‘0.5620’ substitute ‘0.5766’,
(d) in paragraph (c) (ultra low sulphur diesel), for ‘0.4710’ substitute ‘0.4832’,
(e) in paragraph (ca) (sulphur-free diesel), for ‘0.4710’ substitute ‘0.4832’, and
(f) in paragraph (d) (heavy oil other than ultra low sulphur diesel and sulphur-free diesel), for ‘0.5327’ substitute ‘0.5465’.
(3) In section 6AA(3) (biodiesel), for ‘0.2710’ substitute ‘0.2832’.
(4) In section 6AD(3) (bioethanol), for ‘0.2710’ substitute ‘0.2832’.
(5) In section 8(3) (road fuel gas)—
(a) in paragraph (a) (natural road fuel gas), for ‘0.0900’ substitute ‘0.1080’, and
(b) in paragraph (b) (other road fuel gas), for ‘0.0900’ substitute ‘0.1270’.
(6) In section 11(1) (rebate on heavy oil)—
(a) in paragraph (a) (fuel oil), for ‘0.0482’ substitute ‘0.0604’,
(b) in paragraph (b) (gas oil which is not ultra low sulphur diesel), for ‘0.0522’ substitute ‘0.0644’, and
(c) in paragraph (ba) (ultra low sulphur diesel), for ‘0.0522’ substitute ‘0.0644’.
(7) In section 13A(1) (rebate on unleaded petrol), for ‘0.0601’ substitute ‘0.0617’.
(8) In section 14(1) (rebate on light oil for use as furnace oil), for ‘0.0482’ substitute ‘0.0604’.
(9) This section comes into force on 1st September 2005.
Gaming duty
6 Rates of gaming duty
(1) For the Table in section 11(2) of FA 1997 (rates of gaming duty) substitute—
Table
Part of gross gaming yield |
Rate |
||
The first 534,500 |
2.5 per cent. |
||
The next 1,186,500 |
12.5 per cent. |
||
The next 1,186,500 |
20 per cent. |
||
The next 2,078,000 |
30 per cent. |
||
The remainder |
40 per cent. |
(2) This section has effect in relation to accounting periods beginning on or after 1st April 2005.
Vehicle excise duty
7 Rates
(1) VERA 1994 is amended as follows.
(2) In section 4 (vehicle licences: amount of duty), omit—
(a) subsection (3) (treatment of fractions of five pence in determining rate of duty on six month licence which is set at 55% of annual rate), and
(b) in subsection (7) (power to amend or repeal by order), ‘or (3)’.
(3) In section 13(3)(b) (trade licences: annual rate of duty for licences not to be used only for motorcycles not exceeding 450 kilograms in weight unladen) as currently in force, for ‘annual rate currently applicable to a vehicle under paragraph 1(2) of Schedule 1’ substitute ‘basic goods vehicle rate currently applicable’.
(4) In section 13(4)(b) (trade licences: annual rate of duty for licences not to be used only for motorcycles not exceeding 450 kilogrammes in weight unladen) as set out in paragraph 8(1) of Schedule 4 to have effect on and after a day appointed by order, for ‘annual rate currently applicable to a vehicle under paragraph 1(2) of Schedule 1’ substitute ‘basic goods vehicle rate currently applicable’.
(5) In both versions of section 13, after subsection (6) insert—
(7) In this section ‘the basic goods vehicle rate’ means the annual rate applicable, by virtue of sub-paragraph (1) of paragraph 9 of Schedule 1, to a rigid goods vehicle which—
(a) is not a vehicle with respect to which the reduced pollution requirements are satisfied, and
(b) falls within column (3) of the table in that sub-paragraph and has a revenue weight exceeding 3,500 kilograms and not exceeding 7,500 kilograms.’
(6) In sections 35A(5) and 36(3) (dishonoured cheques: appropriate annual rate of vehicle excise duty), for the words from ‘to the annual rate’ to ‘(or’ substitute—
‘(a) in the case of a vehicle licence, to the annual rate which at the beginning of the relevant period was applicable to a vehicle of the description specified in the application...
To continue reading
Request your trial