Background Note
12.This section has been introduced to tighten anti-forestalling restrictions and introduce effective sanctions in order to prevent tax avoidance through excessive clearance of tobacco products shortly before an expected increase in the rate of duty. Whilst tobacco manufacturers have complied with their quota limits in the last few years they have cleared a significant amount of product in March, ensuring that as much stock as possible is cleared at the lower, pre-Budget rate of duty. This undermines the effectiveness of the restrictions which are designed to prevent excessive clearances of products immediately before the duty increase.
13.HMRC will publish the public notice as defined in FB15 legislation as an anti-forestalling notice 150 days before the start of the forestalling controlled period where possible to enable appropriate preparation for business to plan for any supply and demand issues. Where a decision is taken to hold an emergency budget HMRC will not be able to provide 150 days’ notice before the controlled period.
