Finance Bill 2001
CLAUSE 30: CREDIT FOR AGGREGATES LEVY
SUMMARY
1. Clause 30 enables the Commissioners of Customs & Excise to make regulations with respect to relief from aggregates levy by way of credit or repayment and sets out, in broad terms, the rules and conditions which the regulations may prescribe.
DETAILS OF THE CLAUSE
2. Subsection (1) enables the Commissioners by regulations to make provision in relation to cases where, after a charge to aggregates levy has arisen on any quantity of aggregate, it is exported from the UK in the form of aggregate; an exempt process is applied to it; it is used in a prescribed industrial or agricultural process; it is disposed of or dumped or it is written off in whole or part as a bad debt.
3. Subsection (2) provides that the provision referred to at subsection (1) above is provision for a tax credit to be given to such persons as may be specified in the regulations and further provides for such a tax credit to be brought into account when and as may be prescribed in the regulations and, where this is not possible, for the person so entitled to be entitled to a repayment of levy.
4. Subsection (3) lists a number of matters which may be covered by the regulations namely the requirement for a claim to be made in a prescribed form; the laying down of conditions to be met before a tax credit is allowed; provisions relating to evidence and record keeping; provision for the withdrawal of a tax credit where any requirement is not complied with; provision for the payment of interest and provision allowing the Commissioners to give either a general or specific direction in respect of any matter falling to be determined by reference to the regulations.
5. Subsection (4) provides that the regulations may also contain provisions relating to bad debts including the type of records to be kept and the power to withdraw a tax credit in circumstances where a debt which has been written off is paid and, in addition, provisions relating to the identification of any payments received in respect of amounts which have been written off and the valuation of things received otherwise than in the form of money.
6. Subsection (5) makes the provisions of this clause subject to those of clause 32 below.
SCHEDULE 8
AGGREGATES LEVY: REPAYMENTS AND CREDITS
Paragraph 1. Reimbursement arrangements
This paragraph enables the Commissioners to make regulations whereby reimbursement arrangements for neutralising the unjust enrichment barrier in section 32(2) can be disregarded except where those arrangements contain certain provisions, are supported by certain undertakings and certain other matters are satisfied.
Paragraph 2. Interest payable by the Commissioners
This paragraph provides that in circumstances where, due to an error by the Commissioners, a person either:
- has paid an amount of levy which was not levy due, and as a result is entitled to a refund, or
- has failed to claim a repayment for a tax credit to which he was entitled under any tax credit regulations, or
- has suffered a delay in receiving payment of an amount due from the Commissioners in connection with the levy
- then, if and to the extent to which the Commissioners would not be liable to pay interest apart from under this paragraph, they shall be liable to pay interest on that amount for the relevant period.
Furthermore, the paragraph provides various definitions and provides that certain factors outside the Commissioners? control shall be disregarded so that interest will not be due in those circumstances.
Paragraph 3. Assessment for excessive repayment
This paragraph provides that where the Commissioners have repaid aggregates levy, and the repayment exceeds the amount properly due, then the excess may be recovered by means of assessment
Paragraph 4. Assessment for overpayments of interest
This paragraph provides that, where an amount of interest has been paid to a person under paragraph 2 and the person was not entitled to that amount under that paragraph, the Commissioners may assess the amount using their best judgement, with a view to recovery.
Paragraph 5. Assessments under paragraphs 3 and 4
This paragraph provides a time limit for making an assessment under paragraphs 3 and 4. The limit is two years after the Commissioners are satisfied that they have sufficient evidence to warrant making such an assessment. Once assessed and notified, the amount shall be recoverable as if it were levy due although not to the extent that the assessment has been reduced or withdrawn.
Paragraph 6. Interest on amounts assessed
Where assessments are made to recover excessive repayments or overpayments of interest, the whole of the amount assessed shall carry interest at either the ordinary or the penalty rate. The period of charge runs from the day after the person is notified of the assessment to the day before the day on which the amount assessed is paid. Penalty interest applies generally to tax credits claimed without entitlement. Other assessments shall only be subject to ordinary interest. Such interest is to be paid without any deduction of income tax. Penalty interest is compound interest calculated at the penalty rate, and calculated on a daily basis but added to the principal once a month. The penalty rate is the ordinary interest rate under section 197 of the Finance Act 1996 plus 10 percentage points.
The Commissioners (or an appeal tribunal) may reduce the penalty interest to any amount including nil. Furthermore where a person satisfies the Commissioners (or an appeal tribunal) that there is a reasonable excuse for conduct giving rise to the liability to pay penalty interest, this reasonable excuse may be taken into account in determining any reduction. In considering whether there is a reasonable excuse, certain matters such as insufficiency of funds, actual loss of levy and good faith are irrelevant.
An appeal tribunal may cancel any reduction previously made by the Commissioners.
Paragraph 7. Assessments to interest under paragraph 6
Where a person is liable to interest the Commissioners may assess and notify him. Interest under this paragraph may go back no further than two years from the date of the assessment. An amount assessed is recoverable as if it were levy due, but not to the extent that it has been reduced or withdrawn. Any assessment under paragraph 6 must specify a date to which the amount of interest is calculated. If interest continues to accrue, further assessments can be made. However, the Commissioners may also provide a date for payment on an assessment and, if the interest is paid by that date, no further interest shall accrue.
Paragraph 8. Supplementary assessments
Where the amount assessed to recover an excessive repayment, overpaid interest or as interest on such an assessment is too low, then a supplementary assessment may be made to recover the excess subject to the original time limit.
Paragraph 9. Set-off of or against amounts due under this Schedule
This paragraph provides for regulations to make provision for setting off amounts when a person owes levy but Customs and Excise are liable to repay levy or other taxes or duties under their care and management.
Paragraph 10. Set-off against other taxes and duties
This paragraph provides for regulations to make provision for setting off amounts when a person owes other taxes or duties under the care and management of Customs and Excise, but the Commissioners are liable to repay aggregates levy to that person.
Paragraph 11. Restriction on powers to provide for set-off
Regulations under paragraphs 10 and 11 shall not require the ?credits? to be set-off against ?debits? in certain cases involving insolvency procedures.
Paragraph 12. Supplemental provisions of Schedule
Notifications of assessments under provision of this Schedule to a person's representative shall be treated as notification to the person in relation to whom the representative acts. ?Representative? in relation to any person includes that person's personal representatives, trustee in bankruptcy, liquidator, receiver and tax or other representative.