Finance Act 2000

Cited as:2000 c. 17
Jurisdiction:UK Non-devolved


Finance Act 2000

2000 CHAPTER 17

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.

[28th July 2000]

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 Excise duties

Part I

Excise duties

Alcoholic liquor duties

Alcoholic liquor duties

S-1 Rate of duty on beer.

1 Rate of duty on beer.

(1) In section 36(1) of the Alcoholic Liquor Duties Act 1979 (rate of duty on beer), for ‘11.50’ substitute ‘11.89’

(2) This section shall be deemed to have come into force on 1st April 2000

S-2 Rates of duty on cider.

2 Rates of duty on cider.

(1) In section 62(1A) of the Alcoholic Liquor Duties Act 1979 (rates of duty on cider)-

(a) in paragraph (a) (rate of duty per hectolitre in the case of sparkling cider of a strength exceeding 5.5 per cent.), for ‘161.20’ substitute ‘166.70’

(b) in paragraph (b) (rate of duty per hectolitre in the case of cider of a strength exceeding 7.5 per cent. which is not sparkling cider), for ‘37.92’ substitute ‘39.21’; and

(c) in paragraph (c) (rate of duty per hectolitre in any other case), for ‘25.27’ substitute ‘26.13’

(2) This section shall be deemed to have come into force on 1st April 2000

S-3 Rates of duty on wine and made-wine.

3 Rates of duty on wine and made-wine.

(1) For Part I of the Table of rates of duty in Schedule 1 to the Alcoholic Liquor Duties Act 1979 (wine and made-wine) substitute—

I Wine or made-wine of a strength not exceeding 22 per cent.

Part I

Wine or 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.

47.58

Wine or made-wine of a strength exceeding 4 per cent. but not exceeding 5.5 per cent.

65.42

Wine or made-wine of a strength exceeding 5.5 per cent. but not exceeding 15 per cent. and not being sparkling

154.37

Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent. but less than 8.5 per cent.

166.70

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.

205.82

(2) This section shall be deemed to have come into force on 1st April 2000.

Hydrocarbon oil duties

Hydrocarbon oil duties

S-4 Rates of duty and rebate on hydrocarbon oil.

4 Rates of duty and rebate on hydrocarbon oil.

(1) In section 6(1A) of the Hydrocarbon Oil Duties Act 1979 (rates of duty on hydrocarbon oil)—

(a) in paragraph (a) (light oil), for ‘0.5288’ substitute ‘0.5468’

(b) in paragraph (b) (ultra low sulphur diesel), for ‘0.4721’ substitute ‘0.4882’; and

(c) in paragraph (c) (heavy oil which is not ultra low sulphur diesel), for ‘0.5021’ substitute ‘0.5182’.

(2) In section 11(1) of that Act (rebate on heavy oil)—

(a) in paragraph (a) (fuel oil), for ‘0.0265’ substitute ‘0.0274’; and

(b) in each of paragraphs (b) and (ba) (gas oil which is not ultra low sulphur diesel and ultra low sulphur diesel), for ‘0.0303’ substitute ‘0.0313’.

(3) In section 13A(1A) of that Act (rebate on unleaded petrol)—

(a) in paragraph (a) (higher octane unleaded petrol), for ‘0.0367’ substitute ‘0.0379’; and

(b) in paragraph (b) (other unleaded petrol), for ‘0.0567’ substitute ‘0.0586’.

(4) In section 14(1) of that Act (rebate on light oil for use as furnace fuel), for ‘0.0265’ substitute ‘0.0274’.

(5) This section shall be deemed to have come into force at 6 o'clock in the evening of 21st March 2000.

S-5 Ultra low sulphur petrol.

5 Ultra low sulphur petrol.

(1) In section 1 of the Hydrocarbon Oil Duties Act 1979 (definitions of oil), after subsection (3) insert—

(3A) 'Ultra low sulphur petrol' means unleaded petrol (other than higher octane unleaded petrol)—

(a) the sulphur content of which does not exceed 0.005 per cent. by weight or is nil, and

(b) the aromatics content of which does not exceed 35 per cent. by volume.

(3B) 'Unleaded petrol' means petrol that contains not more than 0.013 grams of lead per litre of petrol; and petrol is 'leaded petrol' if it is not unleaded.

(3C) 'Higher octane unleaded petrol' means unleaded petrol—

(a) whose research octane number is not less than 96 and whose motor octane number is not less than 86; or

(b) which is delivered for home use as petrol that satisfies the condition in paragraph (a) above; or

(c) which is delivered for home use as petrol that is suitable to be used as fuel for engines for which leaded petrol is suitable by virtue of being leaded; or

(d) which is delivered for home use under such a description, or in such a manner, as tends, in the circumstances, to suggest that it is—

(i) petrol satisfying the condition in paragraph (a) above, or

(ii) petrol that is suitable to be used as fuel for engines for which leaded petrol is suitable by virtue of being leaded.’.

(2) In section 2 of that Act (provisions supplementary to section 1), after subsection (1) insert—

(1A) Subsection (1) above applies, in particular, to the method of testing unleaded petrol for ascertaining its research octane number or motor octane number.’.

(3) In section 6 of that Act (excise duty on hydrocarbon oil), for subsection (1A) (rates of duty) substitute—

(1A) The rates at which the duty shall be charged are—

(a) 0.4782 a litre in the case of ultra low sulphur petrol;

(b) 0.5468 a litre in the case of light oil other than ultra low sulphur petrol;

(c) 0.4882 a litre in the case of ultra low sulphur diesel; and

(d) 0.5182 a litre in the case of heavy oil other than ultra low sulphur diesel.’.

(4) In section 13A of that Act (rebate on unleaded petrol)—

(a) in subsection (1) after ‘unleaded petrol’ insert ‘, other than ultra low sulphur petrol,’; and

(b) omit subsections (1B), (1C) and (2).

Any directions given under subsection (1C) and in force immediately before the commencement of this section shall have effect as if given under section 2(1) of that Act.

(5) In section 27(1) of that Act (interpretation), at the appropriate places insert—

‘'ultra low sulphur petrol' has the meaning given by section 1(3A) above;’;

‘'unleaded petrol' and 'leaded petrol' have the meaning given by section 1(3B) above.’; and

‘'higher octane unleaded petrol' has the meaning given by section 1(3C) above;’.

(6) This section shall come into force on such day as the Commissioners of Customs and Excise may appoint by order made by statutory instrument.

S-6 Mixing of rebated light oils.

6 Mixing of rebated light oils.

(1) Schedule 2A to the Hydrocarbon Oil Duties Act 1979 (mixing of rebated oils) is amended in accordance with Schedule 1 to this Act.

(2) The amendments in that Schedule come into force on the day appointed under section 5(6).

S-7 Power to amend definitions of types of hydrocarbon oil.

7 Power to amend definitions of types of hydrocarbon oil.

In the Hydrocarbon Oil Duties Act 1979, after section 2 insert—

S-2A

2A ‘Power to amend definitions.

(1) The Treasury may by order made by statutory instrument amend the definitions for the purposes of this Act of—

'ultra low sulphur petrol';

'unleaded petrol' and 'leaded petrol';

'higher octane unleaded petrol'; and

'ultra low sulphur diesel'.

(2) An order under this section may contain such incidental, supplementary and transitional provision as appears to the Treasury to be appropriate.

(3) No order shall be made under this section unless a draft of it has been laid before and approved by a resolution of the House of Commons.’.

S-8 Penalties for misuse of rebated heavy oil.

8 Penalties for misuse of rebated heavy oil.

(1) Section 13 of the Hydrocarbon Oil Duties Act 1979 (penalties for misuse of rebated heavy oil) is amended as follows.

(2) In subsection (1)—

(a) for ‘or, as the case may be, his becoming so liable’ substitute ‘or his becoming so liable (or, where his conduct includes both, each of them)’, and

(b) omit the words from ‘; and the Commissioners’ to the end.

(3) After subsection (1) insert—

(1A) Where oil is used, or is taken into a road vehicle, in contravention of section 12(2) above, the Commissioners may—

(a) assess an amount equal to the rebate on like oil at the rate in force at the time of the contravention as being excise duty due from any person who used the oil or was liable for the oil being taken into the road vehicle, and

(b) notify him or his representative accordingly.’.

(4) This section shall have effect in relation to liability arising on or after 1st May 2000.

S-9 Use of rebated heavy oil as fuel.

9 Use of rebated heavy oil as fuel.

(1) Schedule 1 to the Hydrocarbon Oil Duties Act 1979 (which sets out the categories of excepted vehicle which may use rebated heavy oil as fuel) is amended as follows.

(2) Omit the following provisions—

(a) paragraph 2(1)(b) (which provides that off-road tractors are excepted vehicles) and the word ‘or’ immediately preceding it, and

(b) paragraph 2(4) (which defines off-road tractors).

(3) This section shall have effect in relation to the use of rebated heavy oil as fuel on or after 1st May 2000.

S-10 Rebates, marking and reliefs.

10 Rebates, marking and reliefs.

(1) The...

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