Finance Act 2003
Finance Act 2003
2003 CHAPTER 14
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.
[10th July 2003]
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 96.88 per thousand cigarettes. |
|
2. Cigars |
141.10 per kilogram. |
|
3. Hand-rolling tobacco |
101.42 per kilogram. |
|
4. Other smoking tobacco and chewing tobacco |
62.03 per kilogram. |
(2) This section shall be deemed to have come into force at 6 o'clock in the evening of 9th April 2003.
Alcoholic liquor duties
2 Rate of duty on beer
(1) In section 36(1AA)(a) of the Alcoholic Liquor Duties Act 1979 (c. 4) (rate of duty on beer), for ‘11.89’ substitute ‘12.22’.
(2) This section shall be deemed to have come into force at midnight on 13th April 2003.
3 Rates of duty on wine and made-wine
(1) For Part 1 of the Table of rates of duty in Schedule 1 to the Alcoholic Liquor Duties Act 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 per hectolitre |
Wine or made-wine of a strength not exceeding 4 per cent |
48.91 |
Wine or made-wine of a strength exceeding 4 per cent but not exceeding 5.5 per cent |
67.25 |
Wine or made-wine of a strength exceeding 5.5 per cent but not exceeding 15 per cent and not sparkling |
158.69 |
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 per hectolitre |
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 |
211.58 |
(2) This section shall be deemed to have come into force at midnight on 13th April 2003.
Hydrocarbon oil duties
4 Rates of hydrocarbon oil duties
(1) In section 6(1A) of the Hydrocarbon Oil Duties Act 1979 (c. 5) (rates of duty)—
(a) in paragraph (a) (ultra low sulphur petrol) for ‘0.4582’ substitute ‘0.4710’,
(b) in paragraph (b) (other light oil) for ‘0.5468’ substitute ‘0.5620’,
(c) in paragraph (c) (ultra low sulphur diesel) for ‘0.4582’ substitute ‘0.4710’, and
(d) in paragraph (d) (other heavy oil) for ‘0.5182’ substitute ‘0.5327’.
(2) In section 6AA(3) of that Act (biodiesel duty) for ‘0.2582’ substitute ‘0.2710’.
(3) In section 13A(1) of that Act (rebate on unleaded petrol) for ‘0.0586’ substitute ‘0.0601’.
(4) This section shall come into force on 1st October 2003.
5 Rebates on hydrocarbon oil duties
(1) In section 11(1) of the Hydrocarbon Oil Duties Act 1979 (rebate on heavy oil)—
(a) in paragraph (a) (fuel oil) for ‘0.0274’ substitute ‘0.0382’,
(b) in paragraph (b) (gas oil: general) for ‘0.0313’ substitute ‘0.0422’, and
(c) in paragraph (ba) (ultra low sulphur diesel) for ‘0.0313’ substitute ‘0.0422’.
(2) In section 14(1) of that Act (furnace fuel) for ‘0.0274’ substitute ‘0.0382’.
(3) This section shall be deemed to have come into force at 6 o'clock in the evening of 9th April 2003.
Betting and gaming duties
6 General betting duty and pool betting duty: relief for losses
(1) Part 1 of the Betting and Gaming Duties Act 1981 (c. 63) (betting duties) is amended as follows.
(2) In section 5 (net stake receipts) at the end of subsection (3) (negative net stake receipts to be disregarded) insert ‘except as provided for by section 5AA’.
(3) After that section insert—
5AA
(1) This section applies where the amount of a person's net stake receipts for an accounting period in respect of a class of bets (calculated in accordance with section 5(1)) is a negative amount.
(2) That amount shall be carried forward to the following accounting period and, to the extent that it does not exceed it, deducted from the amount of the person's net stake receipts in respect of the same class of bets for that period.
(3) If the amount of those net stake receipts for that following accounting period—
(a) is not a positive amount, or
(b) is less than the amount carried forward,
the amount carried forward or, as the case may be, the balance of it shall be treated for the purposes of this section as if it were a negative amount of net stake receipts for that period in respect of the same class of bets.’.
(4) Omit section 5A (multiple bets) (which becomes unnecessary as a result of the amendment made by subsection (3) above).
(5) After section 7 (duty charged on net pool betting receipts) insert—
7ZA
(1) This section applies where the amount of a person's net pool betting receipts for an accounting period is a negative amount.
(2) That amount shall be carried forward to the following accounting period and, to the extent that it does not exceed it, deducted from the amount of the person's net pool betting receipts for that period.
(3) If the amount of the net pool betting receipts for that following accounting period—
(a) is not a positive amount, or
(b) is less than the amount carried forward,
the amount carried forward or, as the case may be, the balance of it shall be treated for the purposes of this section as if it were a negative amount of net pool betting receipts for that period.’.
(6) The amendments made by this section apply in relation to any accounting period beginning on or after 1st September 2003 for which the net stake receipts in respect of a particular class of bets, or (as the case may be) the net pool betting receipts, is a negative amount.
7 General betting duty: betting exchanges
(1) Part 1 of the Betting and Gaming Duties Act 1981 (c. 63) (betting duties) is amended as follows.
(2) After section 5AA (inserted by section 6 above) insert—
5AB
(1) This section applies where—
(a) one person makes a bet with another person using facilities provided by a third person in the course of a business, and
(b) that business is one that does not involve the provision of premises for use by persons making or taking bets.
(2) General betting duty shall be charged on the amounts (‘commission charges’) that the parties to the bet are charged, whether by deduction from winnings or otherwise, for using those facilities.
(3) No deductions shall be allowed from commission charges.
(4) The amount of duty charged under this section in respect of bets determined in an accounting period shall be 15 per cent of the commission charges relating to those bets.
(5) For the purposes of this section, and section 5B(4) so far as relating to this section, a person who arranges for facilities relating to a bet to be provided by another person shall be treated as providing them himself (and the other person shall not).’.
(3) In section 5B (liability to pay)—
(a) for subsection (1) substitute—
(1) All general betting duty chargeable in respect of—
(a) bets made in an accounting period, or
(b) in the case of duty chargeable under section 5AB, bets determined in an accounting period,
shall become due at the end of that period.’;
(b) in subsection (4), after ‘section 4(1) to (3)’ insert ‘or 5AB’.
(4) In section 5C (bet-brokers)—
(a) in paragraph (a) of subsection (1) (application of section) after ‘in the course of a business’ insert ‘, other than a betting-exchange business,’;
(b) at the end of that subsection insert—
‘In paragraph (a) ‘betting-exchange business’ means a business such as is mentioned in section 5AB(1).’;
(c) omit subsections (2) (bet treated as made between bettor and bet-broker) and (3) (subsection (2) not to apply to off-course bets where bet-taker is a bookmaker);
(d) in subsection (4) omit the words ‘In the case of a bet which is excluded from subsection (2) by virtue of subsection (3),’.
(5) The amendments made by this section apply in relation to any accounting period beginning on or after 1st June 2003.
(6) Those amendments do not apply in relation to a bet (a ‘straddling bet’) that is—
(a) made, using facilities provided by a person (‘the broker’), in an accounting period of the broker beginning before 1st June 2003, but
(b) not determined until an accounting period of the broker beginning on or after that date.
(7) Any winnings paid in respect of a straddling bet to which section 5AB of the Betting and Gaming Duties Act 1981 (c. 63) would apply but for subsection (6) above shall be treated for the purposes of that Act as paid in the broker's accounting period in which the bet was made (‘the earlier accounting period’).
(8) Subsection (7) shall not have effect to reduce the general betting duty payable by the broker for the earlier accounting period;...
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