Finance Act 1989

Cited as:1989 c. 26
Jurisdiction:UK Non-devolved


Finance Act 1989

1989 CHAPTER 26

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.

[27th July 1989]

Most Gracious Sovereign,

We , 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, Value Added Tax and Car Tax

Part I

Customs and Excise, Value Added Tax and Car Tax

Chapter I

Customs and Excise

Hydrocarbon oil duties

Hydrocarbon oil duties

S-1 Rates.

1 Rates.

(1) In section 6 of the Hydrocarbon Oil Duties Act 1979 (duty on light oil and heavy oil)—

(a) in subsection (1), after ‘(2)’ there shall be inserted ‘, (2A)’, and

(b) the following subsection shall be inserted after subsection (2)—

(2A) The rate of duty for petrol which—

(a) has an anti-knock value below that specified as the minimum for 4 star petrol in the British Standard Specification BS 4040:1988, and

(b) is neither unleaded petrol (within the meaning of section 13A below) nor aviation gasoline

shall be 0.2122 a litre.’

(2) In section 13A of that Act (rebate on unleaded petrol) for ‘0.0202’ there shall be substituted ‘0.0272’.

(3) In Part I of Schedule 3 (regulations) to that Act, in paragraph 10A, after the word ‘Amending’ there shall be inserted the words ‘the description of petrol falling within subsection (2A) of section 6 of this Act or’ and for the words ‘section 6 of this Act’ there shall be substituted the words ‘that section’.

(4) This section shall be deemed to have come into force at 6 o'clock in the evening of 14th March 1989.

S-2 Reliefs.

2 Reliefs.

(1) The following section shall be inserted after section 20A of the Hydrocarbon Oil Duties Act 1979—

S-20AA

20AA ‘Power to allow reliefs.

(1) The Commissioners may make regulations allowing reliefs as regards—

(a) any duty of excise which has been charged in respect of hydrocarbon oil petrol substitute, spirits used for making power methylated spirits, or road fuel gas;

(b) any amount which has been paid to the Commissioners under section 12(2) above;

(c) any amount which would (apart from the regulations) be payable to the Commissioners under section 12(2) above.

(2) The regulations may include such provision as the Commissioners think fit in connection with allowing reliefs, and in particular may—

(a) provide for relief to take the form of a repayment or remission;

(b) provide for relief to be allowed in cases or classes of case set out in the regulations;

(c) provide for relief to be allowed to the extent set out in the regulations;

(d) provide for relief to be allowed subject to conditions imposed by the regulations;

(e) provide for relief to be allowed subject to such conditions as the Commissioners may impose on the person claiming relief;

(f) provide for the taking of samples of hydrocarbon oil in order to ascertain whether relief should be allowed or has been properly allowed;

(g) make provision as to administration (which may include provision requiring the making of applications for relief);

(h) make different provision in relation to different cases or classes of case;

(i) include such supplementary, incidental, consequential or transitional provisions as appear to the Commissioners to be necessary or expedient.

(3) The conditions which may be imposed as mentioned in subsection (2)(d) or (e) above may include conditions as to the physical security of premises, the provision (by bond or otherwise) of security for payment, or such other matters as the Commissioners think fit.

(4) Where a person contravenes or fails to comply with any regulation made under this section or any condition imposed by or under such a regulation—

(a) he shall be liable on summary conviction to a penalty of three times the value of any goods in respect of which the contravention or failure occurred or a penalty of an amount represented by level 3 on the standard scale, whichever is the greater, and

(b) any goods in respect of which the contravention or failure occurred shall be liable to forfeiture.

(5) A reference in this section to a duty of excise includes a reference to any addition to such duty by virtue of section 1 of the Excise Duties (Surcharges or Rebates) Act 1979 .

(6) Schedule 5 to this Act shall have effect with respect to any sample of hydrocarbon oil taken in pursuance of regulations made under this section.’

(2) In consequence of subsection (1) above, in paragraph 6 of Schedule 5 to the Hydrocarbon Oil Duties Act 1979 after ‘section’ there shall be inserted ‘20AA or’.

Alcoholic liquor duties

Alcoholic liquor duties

S-3 Original gravity of beer.

3 Original gravity of beer.

(1) In section 3(5) of the Alcoholic Liquor Duties Act 1979 (under which the gravity of worts as ascertained by the proper officer is relevant for certain purposes) for the words from ‘proper officer’ to the end there shall be substituted the words ‘brewer in accordance with subsection (2) above and recorded by him in pursuance of regulations made under section 49 below.’

(2) This section applies to worts if the brewer ascertains their gravity in accordance with section 3(2) of the Alcoholic Liquor Duties Act 1979, for the purpose of the record kept by him in pursuance of regulations under section 49 of that Act on or after the day on which this Act is passed.

S-4 Blending made-wines etc.

4 Blending made-wines etc.

(1) Section 55 of the Alcoholic Liquor Duties Act 1979 (charge of excise duty on made-wine) shall be amended as follows.

(2) In subsection (5) (which, where certain conditions are satisfied, lifts the requirement to hold a licence for premises where made-wine is produced), after paragraph (d) there shall be added ‘and

(e) he does not blend or otherwise mix—

(i) two or more made-wines, or

(ii) one or more made-wines and one or more wines,

so as to produce made-wine the rate of duty applicable to which is higher than the rate applicable to at least one of the constituent liquors.’

(3) After subsection (5) there shall be inserted—

(5A) For the purposes of subsection (5) above—

(a) the rate of duty applicable to any made-wine is that which is or would be chargeable under subsection (1) above on its importation into the United Kingdom; and

(b) the rate of duty applicable to any wine is that which is or would be chargeable under subsection (1) of section 54 above on its importation into the United Kingdom.’

(4) This section shall have effect in relation to the blending or other mixing of made-wines, or of made-wines and wines, on or after the day on which this Act is passed.

S-5 Description as beer.

5 Description as beer.

Section 73 of the Alcoholic Liquor Duties Act 1979(which prohibits anyone from describing as beer any substance on which beer duty has not been paid) shall cease to have effect.

Vehicles excise duty

S-6 Rates.

6 Rates.

(1) The Vehicles (Excise) Act 1971 (‘the 1971 Act’) and the Vehicles (Excise) Act (Northern Ireland) 1972 (‘the 1972 Act’) shall be amended as follows.

(2) For the words—

(a) ‘in the second column of’ in paragraph 1 of Schedule 2 to the 1971 Act (rates of duty on hackney carriages), and

(b) ‘in column 2 of’ in paragraph 1 of Schedule 2 to the 1972 Act,

there shall be substituted the words ‘in relation to its seating capacity in the Table in’; and for the Table in Part II of each of those Schedules there shall be substituted the Table set out in Part I of Schedule 1 to this Act.

(3) In Part II of Schedule 4 to the 1971 Act, for Tables A, A(1) and A(2) (rates for rigid goods vehicles having plated gross weight exceeding 12 tonnes) there shall be substituted the Tables set out in Part II of Schedule 1 to this Act.

(4) The Tables set out in Part II of Schedule 1 to this Act shall also be substituted for Tables A, A(1) and A(2) in Part II of Schedule 4 to the 1972 Act, but modified for that purpose by the substitution for any reference to a plated gross weight of a reference to a relevant maximum weight.

(5) In paragraph 2 of Schedule 4A to the 1971 Act and the 1972 Act (rates of duty for vehicles carrying or drawing exceptional loads) for ‘1,600’ there shall be substituted ‘3,100’.

(6) In—

(a) subsection (5) of section 16 of the 1971 Act (rates of duty for trade licences), including that subsection as set out in paragraph 12 of Part I of Schedule 7 to that Act, and

(b) subsection (6) of section 16 of the 1972 Act, including that subsection as set out in paragraph 12 of Part I of Schedule 9 to that Act,

for ‘85’ and ‘17’ there shall be substituted ‘100’ and ‘20’ respectively.

(7) This section shall apply in relation to licences taken out after 14th March 1989.

S-7 Community buses.

7 Community buses.

(1) Section 38(1) of the Vehicles (Excise) Act 1971 shall be amended as follows.

(2) Before the definition of ‘conditional sale agreement’ there shall be inserted—

(2)‘‘community bus’ means a vehicle used on public roads solely in accordance with a community bus permit (within the meaning of section 22 of the Transport Act 1985 ), and not used for providing a service under an agreement providing for service subsidies...

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