Table

1. Cigarettes	An amount equal to 21 per cent. of the retail price plus £31.74 per thousand cigarettes.
2. Cigars	£48.79 per kilogram.
3. Hand-rolling tobacco	£51.48 per kilogram.
4. Other smoking tobacco and chewing tobacco	£24.95 per kilogram.

11A Relief from excise duty on goods imported for testing etc.

1

The Commissioners may by order provide that, in such cases and subject to such exceptions as may be specified in the order, goods imported into the United Kingdom for the sole or main purpose—

a

of being examined, analysed or tested; or

b

of being used to test other goods,

shall be relieved from excise duty chargeable on importation; and any such relief may take the form either of an exemption from payment of duty or of a provision whereby the sum payable by way of duty is less than it otherwise would be.

2

An order under this section—

a

may make any relief for which it provides subject to conditions specified in or under the order, including conditions to be complied with after the importation of the goods to which the relief applies;

b

may contain such incidental and supplementary provisions as the Commissioners think necessary or expedient; and

c

may make different provision for different cases.

3

In this section, references to excise duty include any additions to such duty by virtue of section 1 of the Excise Duties (Surcharges or Rebates) Act 1979.

8 Remission of duty in respect of spirits used for medical or scientific purposes.

1

Where a person proposes to use spirits —

a

in the manufacture or preparation of any article recognised by the Commissioners as being an article used for medical purposes; or

b

for scientific purposes, the Commissioners may, if they think fit and subject to such conditions as they see fit to impose, authorise that person to receive, and permit the delivery from warehouse to that person of, spirits for that use without payment of the duty chargeable thereon.

2

If any person contravenes or fails to comply with any condition imposed under this section then, in addition to any other penalty he may have incurred, he shall be liable on summary conviction to a penalty of level 3 on the standard scale.

b

of such other goods as the Commissioners may allow to be warehoused—

i

for exportation or for use as stores in cases where relief from or repayment of any customs duty or other payment is conditional on their exportation or use as stores; or

ii

for exportation or for use for a purpose referred to in a Community regulation in cases where payment of an export refund under such a regulation is conditional on their exportation or use for such a purpose,

2

The officer may require the suspect—

a

to permit such a search of any article which he has with him; and

b

subject to subsection (3) below, to submit to such searches of his person, whether rub-down, strip or intimate,

as the officer may consider necessary or expedient; but no such requirement may be imposed under paragraph (b) above without the officer informing the suspect of the effect of subsection (3) below.

3

If the suspect is required to submit to a search of his person, he may require to be taken—

a

except in the case of a rub-down search, before a justice of the peace or a superior of the officer concerned; and

b

in the excepted case, before such a superior;

and the justice or superior shall consider the grounds for suspicion and direct accordingly whether the suspect is to submit to the search.

3A

A rub-down or strip search shall not be carried out except by a person of the same sex as the suspect; and an intimate search shall not be carried out except by a suitably qualified person.

5

In this section—

• “intimate search” means any search which involves a physical examination (that is, an examination which is more than simply a visual examination) of a person’s body orifices;

• “rub-down search” means any search which is neither an intimate search nor a strip search;

• “strip search” means any search which is not an intimate search but which involves the removal of an article of clothing which—

a

is being worn (wholly or partly) on the trunk; and

b

is being so worn either next to the skin or next to an article of underwear;

“suitably qualified person” means a registered medical practitioner or a registered nurse.

6

Notwithstanding anything in subsection (4) of section 48 of the Criminal Justice (Scotland) Act 1987 (detention and questioning by customs officers), detention of the suspect under subsection (1) above shall not prevent his subsequent detention under subsection (1) of that section.

2

A person guilty of an offence under this section shall be liable—

a

on summary conviction, to a penalty of the prescribed sum or of three times the value of the goods, whichever is the greater, or to imprisonment for a term not exceeding 6 months, or to both; or

b

on conviction on indictment, to a penalty of any amount, or to imprisonment for a term not exceeding 7 years, or to both.

1

If any person, with intent to defraud Her Majesty, obtains or attempts to obtain, or does anything whereby there might be obtained by any person, any amount by way of drawback, allowance, remission or repayment of, or any rebate from, any duty in respect of any goods which—

a

is not lawfully payable or allowable in respect thereof; or

b

is greater than the amount so payable or allowable,

he shall be guilty of an offence under this subsection.

1A

If any person, without such intent as is mentioned in subsection (1) above, does any of the things there mentioned, he shall be guilty of an offence under this subsection.

2

A person guilty of an offence under subsection (1) above shall be liable—

a

on summary conviction, to a penalty of the prescribed sum or of three times the value of the goods, whichever is the greater, or to imprisonment for a term not exceeding 6 months, or to both; or

b

on conviction on indictment, to a penalty of any amount, or to imprisonment for a term not exceeding 7 years, or to both;

and a person guilty of an offence under subsection (1A) above shall be liable on summary conviction to a penalty of level 3 on the standard scale or three times the amount which was or might have been improperly obtained or allowed, whichever is the greater.

1

The supply of services by a person registered or enrolled in any of the following—

a

the register of medical practitioners or the register of medical practitioners with limited registration;

b

either of the registers of ophthalmic opticians or the register of dispensing opticians kept under the Opticians Act 1958 or either of the lists kept under section 4 of that Act of bodies corporate carrying on business as ophthalmic opticians or as dispensing opticians;

c

any register kept under the Professions Supplementary to Medicine Act 1960;

d

the register of qualified nurses, midwives and health visitors kept under section 10 of the Nurses, Midwives and Health Visitors Act 1979;

e

the register of dispensers of hearing aids or the register of persons employing such dispensers maintained under section 2 of the Hearing Aid Council Act 1968.

2

The supply of any services or dental prostheses by—

a

a person registered in the dentists’ register;

b

a person enrolled in any roll of dental auxiliaries having effect under section 45 of the Dentists Act 1984; or

c

a dental technician.

Entitlement to be registered

5

Where a person who is not liable to be registered satisfies the Commissioners that he—

a

makes taxable supplies; or

b

is carrying on a business and intends to make such supplies in the course or furtherance of that business,

they shall, if he so requests, register him with effect from the day on which the request is made or from such earlier date as may be agreed between them and him.

5A

1

Where a person who is not liable to be registered satisfies the Commissioners that he—

a

makes supplies within sub-paragraph (2) below; or

b

is carrying on a business and intends to make such supplies in the course or furtherance of that business,

and (in either case) is within sub-paragraph (3) below, they shall, if he so requests, register him with effect from the day on which the request is made or from such earlier date as may be agreed between them and him.

2

A supply is within this sub-paragraph if—

a

it is made outside the United Kingdom but would be a taxable supply if made in the United Kingdom; or

b

section 35 of this Act provides that it is to be disregarded for the purposes of this Act, and it would otherwise be a taxable supply.

3

A person is within this sub-paragraph if—

a

he has a business establishment in the United Kingdom or his usual place of residence is in the United Kingdom; and

b

he does not make and does not intend to make taxable supplies.

4

For the purposes of this paragraph—

a

a person carrying on a business through a branch or agency in the United Kingdom shall be treated as having a business establishment in the United Kingdom; and

b

“usual place of residence”, in relation to a body corporate, means the place where it is legally constituted.

Notification of end of liability or entitlement etc.

7

A person registered under paragraph 3, 4 or 5 above who ceases to make or have the intention of making taxable supplies shall notify the Commissioners of that fact within thirty days of the day on which he does so.

7A

A person registered under paragraph 5A above who—

a

ceases to make or have the intention of making supplies within sub-paragraph (2) of that paragraph; or

b

makes or forms the intention of making taxable supplies,

shall notify the Commissioners of that fact within thirty days of the day on which he does so.

Cancellation of registration

8A

1

Where a registered person satisfies the Commissioners that he is not liable to be registered, they shall, if he so requests, cancel his registration with effect from the day on which the request is made or from such later date as may be agreed between them and him.

2

In this paragraph and paragraphs 9 and 10 below, any reference to a registered person includes a reference to a person registered before their coming into force.

9

1

Where the Commissioners are satisfied that a registered person has ceased to be registrable, they may cancel his registration with effect from the day on which he so ceased or from such later date as may be agreed between them and him.

2

In this paragraph and paragraph 10 below, “registrable” means liable or entitled to be registered.

10

Where the Commissioners are satisfied that on the day on which a registered person was registered he was not registrable, they may cancel his registration with effect from that day.

11 Exemption from registration

1

Notwithstanding the preceding provisions of this Schedule, where a person who makes or intends to make taxable supplies satisfies the Commissioners that any such supply is zero-rated or would be zero-rated if he were a taxable person, they may, if he so requests and they think fit, exempt him from registration until it appears to them that the request should no longer be acted upon or is withdrawn.

2

Where there is a material change in the nature of the supplies made by a person exempted from registration under this paragraph, he shall notify the Commissioners of the change—

a

within thirty days of the date on which it occurred; or

b

if no particular day is identifiable as the day on which it occurred, within thirty days of the end of the quarter in which it occurred.

3

Where there is a material alteration in any quarter in the proportion of taxable supplies of such a person that are zero-rated, he shall notify the Commissioners of the alteration within thirty days of the end of the quarter.

12Power to vary specified sums by order

The Treasury may by order substitute for any of the sums for the time being specified in this Schedule such greater sums as they think fit.

2

In any case where, for any prescribed accounting period, there has been paid or credited to any person—

a

as being a repayment or refund of tax, or

b

as being due to him under section 14(5) of this Act,

an amount which ought not to have been so paid or credited, the Commissioners may assess that amount as being tax due from him for that period and notify it to him accordingly.

2A

An amount—

a

which has been paid to any person as being due to him under section 14(5) of this Act; and

b

which, by reason of the cancellation of that person’s registration under paragraph 9 or 10 of Schedule 1 to this Act, ought not to have been so paid,

may be assessed under sub-paragraph (2) above notwithstanding that cancellation.

2

The circumstances referred to in subsection (1) above are that the tax for the period concerned which would have been lost if the inaccuracy had not been discovered—

a

equals or exceeds 30 per cent. of the true amount of tax for that period, or

b

equals or exceeds whichever is the greater of £10,000 and 5 per cent. of the true amount of tax for that period.

5A

Where—

a

a return for any prescribed accounting period overstates or understates to any extent a person’s liability to tax or his entitlement to a payment under section 14(5) of the principal Act, and

b

that return is corrected, in such circumstances and in accordance with such conditions as may be prescribed, by a return for a later such period which understates or overstates, to the corresponding extent, that liability or entitlement,

it shall be assumed for the purposes of subsection (5) above that the statement made by each of those returns is a correct statement for the accounting period to which it relates.

5B

This section shall have effect in relation to a body which is registered and to which section 20 of the principal Act applies as if—

a

any reference to a payment under section 14(5) of that Act included a reference to a refund under the said section 20, and

b

any reference to credit for input tax included a reference to tax chargeable on supplies or importations which were not for the purposes of any business carried on by the body.

3A

For the purposes of subsection (1) above the specified percentage is—

a

10 per cent. where the relevant tax is given by paragraph (a) or (b) of subsection (3) above and the period referred to in that paragraph does not exceed nine months;

b

20 per cent. where that tax is so given and the period so referred to exceeds nine months but does not exceed eighteen months; and

c

30 per cent. in any other case.

1A

Where a person is liable to a penalty under section 17 above for any failure to comply with such a requirement as is referred to in subsection (1)(b) to (e) of that section, no assessment shall be made under this section of the amount due from him by way of such penalty unless, within the period of two years preceding the assessment, the Commissioners have issued him with a written warning of the consequences of a continuing failure to comply with that requirement.

Table of Rates of Tax

Portion of value		Rate of tax
Lower limit	Upper limit	Per cent.
£	£
0	110,000	Nil
110,000		40

cc

a housing action trust established under Part III of the Housing Act 1988;

ff

a housing action trust established under Part III of the Housing Act 1988;

3

Subject to the following provisions of this section, “chargeable securities” means —

a

stocks, shares or loan capital,

b

interests in, or in dividends or other rights arising out of, stocks, shares or loan capital,

c

rights to allotments of or to subscribe for, or options to acquire, stocks, shares or loan capital, and

d

units under a unit trust scheme.

4

“Chargeable securities” does not include securities falling within paragraph (a), (b) or (c) of subsection (3) above which are issued or raised by a body corporate not incorporated in the United Kingdom unless —

a

they are registered in a register kept in the United Kingdom by or on behalf of the body corporate by which they are issued or raised, or

b

in the case of shares, they are paired with shares issued by a body corporate incorporated in the United Kingdom, or

c

in the case of securities falling within paragraph (b) or (c) of subsection (3) above, paragraph (a) or (b) above applies to the stocks, shares or loan capital to which they relate.

5

“Chargeable securities” does not include —

a

securities the transfer of which is exempt from all stamp duties, or

b

securities falling within paragraph (b) or (c) of subsection (3) above which relate to stocks, shares or loan capital the transfer of which is exempt from all stamp duties.

6

“Chargeable securities” does not include interests in depositary receipts for stocks or shares.

6A

For the purposes of subsection (4) above, shares issued by a body corporate which is not incorporated in the United Kingdom (“the foreign company”) are paired with shares issued by a body corporate which is so incorporated (“the UK company”) where —

a

the articles of association of the UK company and the equivalent instruments governing the foreign company each provide that no share in the company to which they relate may be transferred otherwise than as part of a unit comprising one share in that company and one share in the other, and

b

such units have been offered for sale to the public in the United Kingdom and, at the same time, an equal number of such units have been offered for sale to the public at a broadly equivalent price in the country in which the foreign company is incorporated.

a

paragraph (a) of subsection (4) above and the reference to that paragraph in paragraph (c) of that subsection shall be ignored, and

11

In interpreting “chargeable securities” in section 93 or 96 above in a case where —

a

newly subscribed shares, or

b

securities falling within paragraph (b) or (c) of subsection (3) above which relate to newly subscribed shares,

are issued in pursuance of an arrangement such as is mentioned in that section (or an arrangement which would be such an arrangement if the securities issued were chargeable securities), paragraph (b) of subsection (4) above and the reference to that paragraph in paragraph (c) of that subsection shall be ignored.

12

In subsection (11) above, “newly subscribed shares” means shares issued wholly for new consideration in pursuance of an offer for sale to the public.