Explanatory note (accessible version)
Updated 22 November 2023
© Crown copyright 2023
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at https://www.gov.uk/government/publications/increasing-the-maximum-prison-term-for-tax-fraud/explanatory-note-accessible-version
Clause 1: Criminal offences: increase in maximum term of imprisonment
Summary
1. This measure was announced at Spring Budget 2023 and doubles the maximum term of imprisonment for the most egregious tax fraud from 7 to 14 years. It will take effect from Royal Assent.
Details of the clause
2. Subsection (1) details all the offences that are changing from 7 to 14 years.
3. Subsection (2) provides that the changes in subsections (3) and (5) below apply detailed changes to Customs and Excise management Act 1979.
4. Subsection (3) identifies offences relating to:
- Improper importation of firearms (5A) the maximum penalty remains at life. The reference to 7 years has changed to 14 years.
- Improper importation of seal skins (5B) the maximum penalty remains at 2 years. The reference 7 years has changed to 14 years.
- Improper importation of counterfeiting (5AA) has been omitted and will now come under the new maximum of 14 years which previously carried 10 years.
- Improper importation of nuclear material (5C) has been omitted as this remains unchanged at 14 years.
5. Subsection (4) identifies offences relating to:
- Improper importation of firearms (4A) the maximum penalty remains at life. The reference to 7 years has changed to 14 years.
- Improper importation of counterfeiting (4AA) has been omitted and will now come under the new maximum of 14 years which previously carried 10 years.
- Improper importation of nuclear material (4B) has been omitted as this remains unchanged at 14 years.
6. Subsection (5) identifies offences relating to:
- Improper importation of firearms (4A) the maximum penalty remains at life. The reference to 7 years has changed to 14 years.
- Improper importation of seal skins (4B) the maximum penalty remains at 2 years. The reference 7 years has changed to 14 years.
- Improper importation of counterfeiting (4AA) has been omitted and will now come under the new maximum of 14 years which previously carried 10 years.
- Improper importation of nuclear material (4C) has been omitted as this remains unchanged at 14 years.
7. Subsection (6) provides that subject to subsection (7), only offences part or wholly committed after Royal Assent will be subject to the increased maximum term of 14 years.
8. Subsection (7) explains that the penalty for contravention of rebated heavy oil and bioblend for private pleasure craft (14E) has not come into force yet. This will take effect when new legislation at paragraph 9 Schedule 11 of Finance Act 2020 takes effect.
Background note
9. This measure was announced at Spring Budget 2023 and supports the Government’s aim of tackling fraud.
10. If you have any questions about this change, or comments on the legislation, please contact Ben Reed on 03000 547236 (email: benjamin.reed@hmrc.gov.uk).