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Published 20 July 2022
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1 Soft drinks industry levy: flavour concentrates
Schedule 1 amends Part 2 of FA 2017 (soft drinks industry levy).
SCHEDULE 1
SOFT DRINKS INDUSTRY LEVY: FLAVOUR CONCENTRATES
1 Part 2 of FA 2017 (soft drinks industry levy) is amended as follows.
Meaning of 鈥渟oft drink鈥� and 鈥減ackage鈥�
2 (1) Section 26 (鈥渟oft drink鈥� and 鈥減ackage鈥�) is amended as follows.
(2) At the end of subsection (1) insert 鈥�;
鈥�(c) a liquid flavouring (a 鈥渇lavour concentrate鈥�) which, when processed in a specified manner in a dispensing machine, constitutes a beverage within that paragraph.鈥�
(3) After subsection (2) insert鈥�
鈥�(2A) A flavour concentrate is processed in a specified manner if鈥�
(a) either鈥�
(i) it is combined with added sugar ingredients, or
(ii) it is combined with both added sugar ingredients and
one or more other flavour concentrates; and
(b) the flavour concentrate (or combination) is prepared in a
specified manner.
(2B) A 鈥渄ispensing machine鈥� is a machine designed to鈥�
(a) combine, process or prepare ingredients so as to produce a
beverage, and
(b) dispense the beverage for immediate consumption.
(2C) In subsection (2A)(a), 鈥渁dded sugar ingredients鈥� means anything within paragraph (a) or (b) of section 29(2).鈥�.
(4) In subsection (3), after paragraph (b) insert 鈥�;
(c) in the case of a soft drink within subsection (1)(c)鈥�
(i) it is suitable to be consumed when processed in a
specified manner in a dispensing machine (and
without any other processing or preparation), and
(ii) it is ready for use in a dispensing machine.鈥�.
Meaning of 鈥減repared drinks鈥�
3 (1) Section 27 (meaning of 鈥減repared drinks鈥�) is amended as follows.
(2) At the end of subsection (1) insert 鈥�;
鈥�(c) a beverage that would result from鈥�
Schedule 1 鈥� Soft drinks industry levy: flavour concentrates
(i) processing a flavour concentrate within subsection
(1)(c) of that section in a specified manner in a
dispensing machine, and
(ii) in accordance with the relevant dispensing
instructions.鈥�.
(3) In subsection (2)(b), for 鈥渟ubsection (3)鈥� substitute 鈥渟ubsection (3)(a)鈥�.
(4) After subsection (2) insert鈥�
鈥�(2A) The 鈥渞elevant dispensing instructions鈥� means鈥�
(a) the instructions for use of the flavour concentrate provided
with, or for the purposes of use with, the concentrate or a
dispensing machine with which it is designed to be used;
(b) where subsection (3)(b) or (4A) applies, the dispensing
instructions determined by the Commissioners.鈥�.
(5) For subsection (3) substitute鈥�
鈥�(3) This subsection applies where鈥�
(a) in a case within subsection (1)(b), the packaging of the soft
drink states neither the dilution ratio nor information by
reference to which the dilution ratio can be calculated;
(b) in a case within subsection (1)(c), no dispensing instructions
are provided with, or for the purposes of use with, the
flavour concentrate or with any dispensing machine with
which it is designed to be used.鈥�.
(6) After subsection (4) insert鈥�
鈥�(4A) This subsection applies where鈥�
(a) dispensing instructions are provided, and
(b) it is reasonable to assume that the main purpose, or one of the
main purposes, of providing those particular dispensing
instructions is avoiding or reducing liability for soft drinks
industry levy.鈥�.
(7) In subsection (5)鈥�
(a) after paragraph (a) insert鈥�
鈥�(aa) determining dispensing instructions for the purposes
of subsection (2A)(b);鈥�;
(b) for paragraph (b) substitute鈥�
鈥�(b) determining whether the main purpose, or one of the
main purposes, of鈥�
(i) stating a particular dilution ratio or
information, or
(ii) providing particular dispensing instructions,
is avoiding or reducing liability for soft drinks
industry levy.鈥�.
Sugar content condition
4 (1) Section 29 (sugar content condition) is amended as follows.
(2) In subsection (1)鈥�
(a) in the words before paragraph (a), omit 鈥渋t contains鈥�;
Schedule 1 鈥� Soft drinks industry levy: flavour concentrates
(b) for paragraph (a) (but not the 鈥渁nd鈥� at the end) substitute鈥�
鈥�(a) either鈥�
(i) it is a soft drink within section 26(1)(c), or
(ii) it contains added sugar ingredients,鈥�;
(c) at the beginning of paragraph (b) insert 鈥渋t contains鈥�.
Levy rates
5 After section 36 (levy rates) insert鈥�
鈥�36A Determining levy rate for flavour concentrates
(1) This section applies where鈥�
(a) two or more flavour concentrates are formulated so as to be
combined with one another in a dispensing machine (see
section 26(2A)(a)(ii)), and
(b) each of those flavour concentrates is a chargeable soft drink.
(2) The references in section 36(1) to a litre of prepared drink are treated, in relation to each of the flavour concentrates, as references to the relevant proportion of a litre of prepared drink.
(3) The 鈥渞elevant proportion鈥� is鈥�
where N is the number of flavour concentrates that are designed to be combined.鈥�.
Commencement
6 The amendments made by this Schedule come into force on 1 April 2023 in relation to soft drinks that are packaged in, or imported into, the United Kingdom on or after that date.