Finance Act 2003: updates to Part 3
Published 22 February 2018
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Who is likely to be affected
Businesses and individuals who don’t comply with a duty, obligation, requirement or condition in union customs legislation.
General description of the measure
This instrument amends Part 3 of the Finance Act 2003 (the Act) to replace references to ‘the Community Customs Code (Council Regulation (EEC) 2913/92) (CCC)’ with references to the Union Customs Code (Regulation (EU) No 952/2013) (UCC).
Policy objective
This amendment ensures that UK domestic law concerning the imposition of civil administrative financial penalties, which is intended to be applied in conjunction with provisions of EU law, cross-refers to the most recent version of the EU legislation with which it was intended to operate.
Background to the measure
Part 3 of the Act gives a power for HM Treasury to prescribe where a breach of a requirement imposed by or under certain specified tax legislation makes a person liable to a civil financial penalty, up to a maximum amount set out in section 26 of the Act. The CCC is one of the pieces of tax legislation specified in the Act for these purposes. As the CCC has been replaced by the UCC this measure amends Part 3 of the Act to replace references to the CCC with references to the UCC.
Detailed proposal
Operative date
The draft affirmative Statutory Instrument will be laid before the House of Commons on 5 March 2018. The instrument will be made, and come into force, once it has been approved by a resolution of the House of Commons.
Current law
The Finance Act 2003, Part 3.
Proposed revisions
References in sections 24 and 26 of the Act to the CCC, community customs rules, community import and Export Duty will be replaced with references to the UCC, union customs rules, union import and Export Duty.
Summary of impacts
Exchequer impact (£m)
| 2017 to 2018 | 2018 to 2019 | 2019 to 2020 | 2020 to 2021 | 2021 to 2022 | 2022 to 2023 |
|---|---|---|---|---|---|
| Nil | Negligible | Negligible | Negligible | Negligible | Negligible |
This amendment is expected to have a negligible impact on the Exchequer. The final costing will be subject to scrutiny by the Office for Budget Responsibility.
Economic impact
This amendment isn’t expected to have any significant economic impacts.
Impact on individuals, households and families
There is not expected to be any impact on individuals or households due to this being a technical change that primarily affects businesses. There’s no impact on family formation, stability or breakdown.
Equalities impacts
No equality impacts in relation to any protected characteristic have been identified in relation to these amendments.
Impact on business including civil society organisations
There will be no impact on compliant businesses and civil society organisations, it will only impact on businesses that are contravening a customs condition or obligation. However, compliant businesses and civil society organisations are expected to incur a negligible one-off cost of familiarisation with the rules in the UCC. It’s not expected there will be any on-going costs.
Operational impact (£m) (HM Revenue and Customs (HMRC) or other))
HMRC won’t incur any additional costs as a result of this change.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
These amendments will be kept under review through communication with affected taxpayer groups.
Further advice
If you have any questions about this change, please contact Marilyn Seago on Telephone: 03000 593391 or email: marilyn.seago@hmrc.gsi.gov.uk.
Declaration
Mel Stride MP, Financial Secretary to the Treasury, has read this tax information and impact note and is satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impacts of the measure.