HC Deb 12 March 1973 vol 852 cc1041-3

Motion made, and Question, That the provisions set out below shall have effect. And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968. (1) Where the Commissioners of Customs and Excise are satisfied that purchase tax or a duty specified in paragraph (7) below was charged on or in respect of goods or on or in respect of parts or ingredients of goods which at the beginning of April 1973 were unused and held by a taxable person for sale in the course of his business, then if—

  1. (a) before the end of April 1973 the Commissioners were notified, in the manner required by the notice published by them as Notice No. 748, of the particulars so required; and
  2. (b) the other conditions mentioned in that Notice are satisfied;
an amount determined or arrived at in accordance with paragraph (2) below to take account of the tax or duty charged may, in the manner specified in the Notice, be included in the return made by the taxable person under Part I of the Finance Act 1972 for the first prescribed accounting period and shall, if so included, be treated for the purposes of that Part as an amount to be deducted as input tax.

In this paragraph 'sale' includes any supply under a hire-purchase agreement.

(2) The amount that may be so included shall be as follows—

  1. (a) if it is to take account of purchase tax, then, subject to sub-paragraphs (b) and (c) below, it shall be the amount charged;
  2. (b) if purchase tax was charged at a higher rate than the corresponding rate in force 1042 on 7th November 1972 the amount shall be what the amount charged would have been had purchase tax been charged at the corresponding rate;
  3. (c) if purchase tax was charged in respect of a vehicle which, had purchase tax not been chargeable, would be a chargeable vehicle for the purposes of the car tax, the amount shall be three-fifths of the amount arrived at under sub-paragraphs (a) and (b) above;
  4. (d) if the amount is to take account of a duty specified in paragraph (7) below, then, subject to paragraph (5) and sub-paragraph (e) below, it shall be the excess of the amount charged over what it would have been had duty been charged at the corresponding rate in force on 1st April 1973;
  5. (e) if the duty was charged at a rate other than the corresponding rate in force on 7th November 1972 then, subject to paragraph (5) below, the amount shall be the excess of the amount that would have been charged at that corresponding rate over the amount that would have been charged at the corresponding rate in force on 1st April 1973;
and such method may be used in determining that amount, or, if it cannot be determined, in arriving at an appropriate amount to be substituted for it, as the Commissioners may allow.

(3) Where by virtue of this provision an amount is treated as input tax to take account of a duty charged, then, if any drawback or repayment falls to be allowed or made in respect of that duty its amount shall be calculated as if the duty had been charged at the corresponding rate in force on 1st April 1973.

(4) For the purposes of paragraphs (2)(d), (2)(e) and (3) above any country's membership of the European Economic Community shall be disregarded.

(5) In relation to duty charged on a gas lighter, the rates in force on 1st April 1973 shall be taken, for the purposes of paragraphs (2)(d) and (2)(e) and (3) above, to be

  1. (a) Convention, Republic of Ireland or excise, 10p per lighter,
  2. (b) other rates, 12½p per lighter.

(6) For the purposes of this provision goods shall be deemed to be held by a person at the beginning of April 1973 if, and only if, they were—

  1. (a) produced by or supplied to him in the United Kingdom; or
  2. (b) imported by him;
before the end of March 1973 and had not then been supplied by him; and any question whether goods were supplied by or to or were imported by any person before the end of March 1973 shall be determined as, under sections 7 and 47 of the Finance Act 1972, it falls to be determined for the purposes of the charge to value added tax.

(7) The duties referred to in paragraph (1) above are any duty of customs or excise charged on—

  1. (a) spirits other than imported perfumed spirits;
  2. (b) beer;
  3. (c) wine;
  4. (d) British wine;
  5. (e) tobacco;
  6. (f) matches; or
  7. (g) mechanical lighters.—[Mr. Barber.]

put forthwith pursuant to Standing Order No. 94 (Ways and Means motions), and agreed to.