Finance Act 1977

JurisdictionUK Non-devolved
Citation1977 c. 36


Finance Act 1977

1977 CHAPTER 36

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.

[29th July 1977]

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 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:—

I Customs and Excise

Part I

Customs and Excise

S-1 Spirits, beer, wine, made-wine, cider and tobacco.

1 Spirits, beer, wine, made-wine, cider and tobacco.

(1) In the Table in section 9 of the Finance (No. 2) Act 1975 (excise duty on spirits) for ‘24.6300’ and ‘24.7050’ there shall be substituted ‘27.0900’ and ‘27.1650’ respectively.

(2) In section 10(1) of that Act (excise duty on beer) for ‘15.8400’ and ‘0.5280’ there shall be substituted ‘17.4240’ and ‘0.5808’ respectively.

(3) For the provisions of Schedule 4 to that Act (rates of excise duty on wine) there shall be substituted the provisions of Schedule 1 to this Act.

(4) For the provisions of Schedule 5 to that Act (rates of excise duty on made-wine) there shall be substituted the provisions of Schedule 2 to this Act.

(5) In section 2(1) of the Finance Act 1976 (excise duty on cider) for ‘0.22’ there shall be substituted ‘0.242’.

(6) The rates of the duties of customs and excise chargeable under the provisions of subsection (1) of section 8 of the said Act of 1976 and the provisions mentioned in subsection (2) of that section (customs and excise duties on tobacco) shall each be increased by 0.585 per pound; and as respects tobacco on which there have been paid duties of customs and excise at the said increased rates, the rates of drawback allowable under those provisions shall each be increased by the like amount per pound.

(7) In section 1(4) of the Finance Act 1973 (power to make orders before 1st July 1977 for giving effect to Community obligations in respect of tobacco duties) for the words ‘1st July 1977’ there shall be substituted the words ‘1st January 1978’; and subsection (6) above is without prejudice to the powers conferred by the said section 1(4).

(8) The Surcharge on Revenue Duties Order 1976 (the effect of which is substantially reproduced by subsections (1) to (6) above) shall cease to have effect.

(9) This section shall be deemed to have come into force on 30th March 1977.

S-2 Tobacco products.

2 Tobacco products.

(1) For the Table in section 4(1) of the Finance Act 1976 there shall be substituted—

‘Table

1. Cigarettes

An amount equal to 22 per cent. of the retail price plus 1.4100 per thousand cigarettes.

2. Cigars 3.0415 per pound.
3. Hand-rolling tobacco 3.8250 per pound.

4. Other smoking tobacco and chewing tobacco

1.7050 per pound.’

(2) For the purposes of paragraph 1 in the Table in the said section 4(1) any cigarette more than 9cm. long (excluding any filter or mouthpiece) shall be treated as if each 9cm. or part thereof were a separate cigarette; and for the purposes of section 6 of the said Act of 1976 (power to alter rates of duty) the percentage and the amount per thousand cigarettes in that paragraph shall be treated as separate rates of duty.

(3) The Tobacco Products Duty (Increase) Order 1976 shall cease to have effect.

(4) The Treasury may by order provide that in the enactments relating to the duty charged by section 4 of the said Act of 1976 references to cigarettes, cigars, hand-rolling tobacco, other smoking tobacco and chewing tobacco shall or shall not include references to any product of a description specified in the order, being a product manufactured wholly or partly from tobacco or any substance used as a substitute for tobacco but not including products commonly known as herbal cigarettes or herbal smoking mixtures; and any such order may amend or repeal subsection (5) of that section.

(5) The power to make orders under subsection (4) above includes power to vary or revoke a previous order and shall be exercisable by statutory instrument.

(6) Subject to subsection (7) below, any order under subsection (4) above shall be laid before the House of Commons after being made; and unless it is approved by that House before the expiration of twenty-eight days beginning with the date on which it was made, it shall cease to have effect on the expiration of that period, but without prejudice to anything previously done thereunder or to the making of a new order.

In reckoning any such period no account shall be taken of any time during which Parliament is dissolved or prorogued or during which the House of Commons is adjourned for more than four days.

(7) Subsection (6) above shall not apply to any order containing a statement by the Treasury that the order does not extend the incidence of the duty or involve a greater charge to duty or a reduction of any relief; and any such order shall be subject to annulment in pursuance of a resolution of the House of Commons.

(8) Subsections (1) to (3) above shall be deemed to have come into force on 4th April 1977.

S-3 Replacement by tobacco products duty of other tobacco duties.

3 Replacement by tobacco products duty of other tobacco duties.

(1) As from 1st January 1978 no duties of customs or excise shall be charged under section 4 of the Finance Act 1964 of the Finance Act 1976 there shall be substituted—

‘Table

1. Cigarettes

An amount equal to 30 per cent. of the retail price plus 9.00 per thousand cigarrettes.

2. Cigars 9.50 per pound.
3. Hand-rolling tobacco 9.20 per pound.

4. Other smoking tobacco and chewing tobacco

7.30 per pound.’

(2) If it is shown to the satisfaction of the Commissioners that any tobacco which has borne duty under section 4 of the said Act of 1964 on or after 10th May 1976 has been or will be used in the manufacture of tobacco products chargeable with duty under section 4 of the said Act of 1976 on or after the said 1st January, they shall make a repayment at the appropriate rate specified in Schedule 3 to this Act in respect of the duty borne by that tobacco as aforesaid; and the rate per pound at which drawback is allowable on tobacco in respect of which a repayment has been made under this subsection shall be reduced by an amount equal to the rate per pound at which the repayment was made.

(3) Drawback in respect of any duty charged under section 4 of the said Act of 1964 shall not be allowed by virtue of any event occurring after 30th June 1978; but if it is shown to the satisfaction of the Commissioners after that date—

( a ) that any tobacco which has borne duty under that section has been used in the manufacture of products which have become unmerchantable through natural causes; and

( b ) that no drawback or repayment in respect of the duty has been allowed or made under any other provision,

the Commissioners shall repay the duty to the manufacturer, but any such repayment shall be conditional on the products being disposed of in such manner as the Commissioners may require.

(4) Part V of the Customs and Excise Act 1952 (which contains provisions for the collection and management of the duties charged by section 4 of the said Act of 1964 and for the protection of the revenue arising from them) shall cease to have effect on 1st January 1978 except as respects drawback by virtue of events occurring on or before the date mentioned in subsection (3) above.

(5) In section 4(3) of the said Act of 1976 (regulations for the purposes of tobacco products duty) after paragraph ( b ) there shall be inserted—

‘( bb ) for the registration of premises where—

(i) tobacco products are manufactured;

(ii) materials for the manufacture of such products are grown, produced, stored or treated; or

(iii) refuse from the manufacture of such products is stored or treated,

and for regulating the storage and treatment in, and removal from, premises so registered of such materials and refuse;’.

S-4 Hydrocarbon oil etc.

4 Hydrocarbon oil etc.

(1) The rate of the duty of excise charged by section 11 of the Finance (No. 2) Act 1975 (hydrocarbon oil etc.) shall differ according to whether the oil is light oil or heavy oil; and accordingly—

( a ) in that section after the words ‘0.3000 a gallon’ there shall be inserted the words ‘in the case of light oil and 0.3500 a gallon in the case of heavy oil’;

( b ) in the following provisions (under which duty is charged by reference to the duty on hydrocarbon oil), that is to say—

(i)section 6 of the Hydrocarbon Oil (Customs & Excise) Act 1971(petrolsubstitutes and power methylated spirits);
(ii)section 3(3) and (4)(c ) of the Finance Act 1971and Article 3 of the Excise Duties (Gas as Road Fuel) Order 1972,

for the words ‘hydrocarbon oil’ there shall be substituted the words ‘light oil’; and

( c ) in section 92(2) of the Finance Act 1965 and section 14(2) of the Finance Act (Northern Ireland) 1966 (grants towards duty on bus fuel) for the words...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT