Finance Act 2007
| Cited as: | 2007 c. 11 |
| Jurisdiction: | UK Non-devolved |
Finance Act 2007
2007 Chapter 11
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.
[19th July 2007]
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 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
Charges, rates, thresholds etc
Income tax
1 Charge and rates for 2007-08
Income tax is charged for the tax year 2007-08; and for that tax year—
(a) the starting rate is 10%
(b) the basic rate is 22%, and
(c) the higher rate is 40%.
Corporation tax
2 Charge and main rates for financial year 2008
(1) Corporation tax is charged for the financial year 2008; and for that year the rate of corporation tax is—
(a) 28% on profits of companies other than ring fence profits, and
(b) 30% on ring fence profits of companies.
(2) In this section "ring fence profits" has the same meaning as in Chapter 5 of Part 12 of ICTA (see section 502(1) and (1A)).
3 Small companies' rates and fractions for financial year 2007
(1) For the financial year 2007 the small companies' rate is—
(a) 20% on profits of companies other than ring fence profits, and
(b) 19% on ring fence profits of companies.
(2) For the financial year 2007 the fraction mentioned in section 13(2) of ICTA is—
(a) 1/40th in relation to profits of companies other than ring fence profits ("the standard fraction"), and
(b) 11/400ths in relation to ring fence profits of companies ("the ring fence fraction").
(3) If—
(a) a company makes a claim under subsection (2) of section 13 of ICTA in respect of any accounting period any part of which falls in the financial year 2007, and
(b) its profits for that accounting period consist of both ring fence profits and other profits
that subsection applies with the following modification.
(4) The corporation tax charged on its basic profits for that period is reduced by the aggregate of—
(a) the sum equal to the ring fence fraction of the ring fence amount, and
(b) the sum equal to the standard fraction of the remaining amount.
(5) For the purposes of subsection (4)(a) "the ring fence amount" is the amount given by the formula—(MR - PR) ×IRPR
where—
MR is the sum equal to the appropriate fraction of the upper relevant maximum amount
PR is so much of the profits for the accounting period as consist of ring fence profits, and
IR is so much of the basic profits for that period as consist of ring fence profits
and the appropriate fraction is the fraction of the profits for the accounting period that consist of ring fence profits.
(6) For the purposes of subsection (4)(b) "the remaining amount" is the amount given by the formula—(MNR - PNR) ×INRPNR
where—
MNR is the sum equal to the appropriate fraction of the upper relevant maximum amount
PNR is so much of the profits for the accounting period as do not consist of ring fence profits, and
INR is so much of the basic profits for that period as do not consist of ring fence profits,
and the appropriate fraction is the fraction of the profits for the accounting period that do not consist of ring fence profits.
(7) In this section "ring fence profits" has the same meaning as in Chapter 5 of Part 12 of ICTA (see section 502(1) and (1A)).
Inheritance tax
4 Rates and rate bands for 2010-11
(1) For the Table in Schedule 1 to IHTA 1984 substitute—
‘Table
Portion of value |
Rate of tax |
|
Lower limit (£) |
Upper limit (£) |
Per cent |
0 |
350,000 |
Nil |
350,000 |
— |
40 |
’
(2) The amendment made by subsection (1) has effect in relation to chargeable transfers made on or after 6th April 2010.
(3) That amendment does not affect the application of section 8 of IHTA 1984 (indexation) by virtue of the difference between the retail prices index for September 2009, or September in any later year, and that for September in the following year.
(4) But that section does not have effect by virtue of the difference between the retail prices index for September 2008 and that for September 2009.
Alcohol and tobacco
5 Rates of duty on alcoholic liquor
(1) The Alcoholic Liquor Duties Act 1979 (c. 4)
is amended as follows.
(2) In section 36(1AA)(a) (standard rate of duty on beer), for ‘£13.26’ substitute ‘£13.71’.
(3) In section 62(1A) (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 ‘£166.70’ substitute ‘£172.33’,
(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 ‘£38.43’ substitute ‘£39.73’, and
(c) in paragraph (c) (rate of duty per hectolitre in any other case), for ‘£25.61’ substitute ‘£26.48’.
(4) For Part 1 of the Table in Schedule 1 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 |
54.85 |
Wine or made-wine of a strength exceeding 4 per cent but not exceeding 5.5 per cent |
75.42 |
Wine or made-wine of a strength exceeding 5.5 per cent but not exceeding 15 per cent and not sparkling |
177.99 |
Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent but less than 8.5 per cent |
172.33 |
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 |
227.99 |
Wine or made-wine of a strength exceeding 15 per cent but not exceeding 22 per cent |
237.31 |
’.
(5) The amendments made by this section are deemed to have come into force on 26th March 2007.
6 Rates of tobacco products duty
(1) For the Table 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 £108.65 per thousand cigarettes. |
2. Cigars |
£158.24 per kilogram. |
3. Hand-rolling tobacco |
£113.74 per kilogram. |
4. Other smoking tobacco and chewing tobacco |
£69.57 per kilogram. |
’
(2) The amendment made by subsection (1) is deemed to have come into force at 6 p.m. on 21st March 2007.
Gambling
7 Rates of gaming duty
(1) For the Table in section 11(2) of FA 1997 substitute—
‘Table
Part of gross gaming yield |
Rate |
The first £1,836,500 |
15 per cent. |
The next £1,266,000 |
20 per cent. |
The next £2,217,500 |
30 per cent. |
The next £4,680,000 |
40 per cent. |
The remainder |
50 per cent. |
’
(2) In section 11(3) of that Act, for ‘40 per cent’ substitute ‘50 per cent’.
(3) The amendments made by this section have effect in relation to accounting periods beginning on or after 1st April 2007.
8 Remote gaming duty
(1) Schedule 1 contains amendments of and relating to Part 2 of BGDA 1981 (gaming duties) imposing a remote gaming duty.
(2) The amendments made by Schedule 1 have effect in respect of the provision of facilities on or after a date appointed by the Commissioners for Her Majesty's Revenue and Customs by order made by statutory instrument.
9 Amusement machine licence duty
(1) Section 23 of BGDA 1981 (amount of duty payable on amusement machine licence) is amended as follows.
(2) In subsection (3), in the definition of ‘Category C’, in paragraph (ii)(b) for ‘£25’ substitute ‘£35’.
(3) After subsection (6) insert—
‘(7) The Commissioners may by order substitute for a sum for the time being specified in subsection (3) such higher sum as they consider appropriate.
’
(4) Subsection (2) is deemed to have come into force on 22nd March 2007.
Environment
10 Fuel duty rates and rebates
(1) The Hydrocarbon Oil Duties Act 1979 (c. 5)
is amended as follows.
(2) In section 6(1A) (hydrocarbon oil: rates of duty)—
(a) in paragraph (a) (ultra low sulphur petrol), for ‘£0.4835’ substitute ‘£0.5035’
(b) in paragraph (aa) (sulphur-free petrol), for ‘£0.4835’ substitute ‘£0.5035’,
(c) in paragraph (b) (light oil other than ultra low sulphur petrol and sulphur-free petrol), for ‘£0.5768’ substitute ‘£0.6007’,
(d) in paragraph (c) (ultra low sulphur diesel), for ‘£0.4835’ substitute ‘£0.5035’,
(e) in paragraph (ca) (sulphur-free diesel), for ‘£0.4835’ substitute ‘£0.5035’, and
(f) in paragraph (d) (heavy oil other than ultra low sulphur diesel and sulphur-free diesel), for ‘£0.5468’ substitute ‘£0.5694’.
(3) In section 6AA(3) (biodiesel), for ‘£0.2835’ substitute ‘£0.3035’.
(4) In section 6AD(3) (bioethanol), for ‘£0.2835’ substitute ‘£0.3035’.
(5) In section 8(3) (road fuel gas)—
(a) in paragraph (a) (natural road fuel gas), for ‘£0.1081’ substitute ‘£0.1370’, and
(b) in paragraph (b) (other road fuel gas), for ‘£0.1221’ substitute ‘£0.1649’.
(6) In section 11(1) (rebate on heavy oil)—
(a) in paragraph (a) (fuel oil), for...
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