Who is likely to be affected?
1. Producers of alcoholic drinks, excise warehousekeepers and businesses claiming alcoholic ingredients relief.
General description of the measure
2. Legislation will be introduced in Finance Bill 2008 to extend the excise review and appeals system to include certain decisions made by HM Revenue & Customs (HMRC) which were previously not covered.
Operative date
3. The measure will have effect on and after the date that Finance Bill 2008 receives Royal Assent.
Current law and proposed revisions
4. The current legislation at sections 14-16 of and Schedule 5 to the Finance Act (FA) 1994 provides a list of the decisions made by HMRC concerning excise matters that are subject to review and appeal. The proposed measure will add further decisions to the list where, at present, there are no rights to review and appeal for decisions under the following sections in the Alcoholic Liquor Duties Act 1979:
• on drawback, under section 22;
• on repaying excise duty under section 46, or section 61, or section 64;
• on the requirement for security under regulations made under section13, section 15 or section 77;
• on registration, security or any restrictions on moving goods under section 41A, section 47 or regulations under section 49;
• for decisions relating to wine and made-wine on licensing and registration, security or the conditions for moving goods under section 54, section 55 or regulations under section 56; and
• for decisions relating to cider on registration, security or the conditions for moving goods under section 62.
5. The measure will amend paragraph 2(1)(s) of Schedule 5 to FA 1994, clarifying that an appeal right exists when a guarantee and other security is cancelled under section 157 of the Customs and Excise Management Act 1979, and that a review and appeal right exists when a decision is made that additional or further security is required. The measure will also add additional review and appeal rights for decisions on repayment claims under section 4 of FA 1995.
Further advice
6. If you have any questions about this change, please contact Howard Buttery on 0161 827 0340 (email: howard.buttery@hmrc.gsi.gov.uk). Information about Budget measures is available on the HM Revenue and Customs website at www.hmrc.gov.uk.