TC09583 - [2025] UKFTT 00865 (TC)

Section 25 - SDIL:

“… (2) The Commissioners are responsible for the collection and management of soft drinks industry levy.”

Section 31 – Charge to SDIL

“(1)

The charge to soft drinks industry levy arises on a chargeable event which occurs on or after 6 April 2018. …”

Section 33 – Chargeable event: soft drinks imported into the UK:

“(1)

This section applies where chargeable soft drinks are imported into the United Kingdom. …

(3)

A chargeable event occurs, in relation to imported chargeable soft drinks, on first receipt of the soft drinks by a relevant person (the “first recipient”).

(4)

The “first receipt” of imported chargeable soft drinks is the first occasion on which the soft drinks are delivered to a place in the United Kingdom which is a relevant person’s place of business …

(5)

“Relevant person” means a person who carries on a business involving the sale of chargeable soft drinks.

(6)

The reference in subsection (5) to the sale of chargeable soft drinks includes a reference to: (a) sale by wholesale…”

Section 35 – Liability to pay the levy:

“… (2) Where the charge to soft drinks industry levy arises on a chargeable event within section 33(2)… the relevant person who is the first recipient is liable to pay the amount charged.”

Section 39 – Tax credits

“(1)

The Commissioners may by regulations make provision in relation to cases where, after a charge to soft drinks industry levy has arisen in relation to chargeable soft drinks (a) the soft drinks are exported from the United Kingdom …

(2)

The provision that may be made is provision:

(a)

for the liable person to be entitled to a tax credit in respect of any soft drinks industry levy charged on the soft drinks that fall within subsection (1)(a) …

(b)

for the tax credit to be brought into account when the person is accounting for soft drinks industry levy due from the person for the prescribed accounting period or periods.

(3)

Regulations under this section may include provision:

(a)

for any entitlement to a tax credit to be conditional on the making of a claim by the liable person, and specifying the period within which and the manner in which a claim may be made;

…

(f)

for the withdrawal of a tax credit where any requirement of the regulations is not complied with;

(g)

about adjustments of liability for soft drinks industry levy in connection with entitlement or withdrawal of entitlement to a tax credit in prescribed circumstances; …

Section 52 - payment, collection and recovery:

“(1)

The Commissioners may by regulations make provision about the payment, collection and recovery soft drinks industry levy.

(2)

Regulations under subsection (1) may:

(a)

require persons who are or are liable to be registered under this Part to keep accounts for the purposes of the levy in the specified form and manner;

(b)

require persons who are or are liable to be registered under this Part to make returns for the purposes of the levy;

(c)

make provision for determining the periods (“accounting periods)” by reference to which payments of the levy are to be made;

(d)

make provision about the times at which payments of the levy are to be made and the methods of payment;

(e)

require the amounts payable by reference to accounting periods to be calculated by under the regulations;

(f)

make provision for the correction of errors made in accounting for the levy

…

(4)

Schedule 8 contains provision about recovery and overpayments.

Section 55 – Appeals etc:

“Schedule 10 makes provision about appeals and reviews.”

Schedule 8: SDIL: recovery and overpayments

“Recovery as a debt due

1 Soft drinks industry levy is recoverable as a debt due to the Crown.

Assessments

2(1) Sub-paragraph (2) applies where it appears to the Commissioners

(a)

that any period is an accounting period by reference to which a person is liable to account for soft drinks industry levy;

(b)

that an amount of soft drinks industry levy for which that person is liable to account by reference to that period has become due (but the amount due cannot be ascertained), and

(c)

that there has been a relevant default by the person …

(2)

The Commissioners may:

(a)

assess the amount of soft drinks industry levy due from the person to the best of their judgment, and

(b)

notify the amount to the person.

(3)

The following are “relevant defaults”:

…

(c)

a failure to keep documents, or provide facilities, necessary to verify returns required by [regulations under section 52]

(d)

the making, in purported compliance with a requirement of the regulations, of an incomplete or incorrect return;

…

4(1) Sub-paragraph (2) applies where it appears to the Commissioners that:

(a)

any period is an accounting period by reference to which a person is liable to account for soft drinks industry levy,

(b)

an amount of soft drinks industry levy for which that person is liable to account by reference to that period has become due, and

(c)

the amount due can be ascertained by the Commissioners.

(2)

The Commissioners may:

(a)

assess the amount of soft drinks industry levy due from the person, and

(b)

notify the amount to the person.

…

Further provision about assessments under paragraph 2, 4 …

6(1) where an amount has been assessed and notified to a person under paragraph 2, 4 … it is recoverable on the basis that it is an amount of soft drinks industry levy due from that person.

…

Time limit for assessments

7(1) An assessment under paragraph 2 [or] 4 … may not be made after the end of the relevant period.

(2)

Except in a case within subsection (3) [not relevant], the relevant period is the period of four years from the end of the accounting period to which the assessment relates.

…

Repayments of overpaid levy

8(1) This paragraph applies where a person (P) has paid an amount to the Commissioners by way of soft drinks industry levy which was not levy due.

(2)

The Commissioners are liable, on the making of a claim by P, to repay the amount.

…

(4)

Except as provided for by this paragraph, the Commissioners are not liable to repay any amounts due by way of soft drinks industry levy by reason of the fact that it was not levy due.

Schedule 10 – SDIL: Appeals and Reviews:

“Part 1 Appealable decisions:

Appealable decisions:

1 A person may appeal against a decision of the Commissioners or of an officer of Revenue and Customs in respect of any of the following matters:

(a)

whether or not a person is liable to pay an amount of soft drinks industry levy;

…

(f)

the amount of soft drinks industry levy payable by a person;

…

(n)

a person’s entitlement to a tax credit, the withdrawal of a tax credit, the amount of a tax credit or the period for which a tax credit is to be brought into account under regulations under section 39; …

…

Determinations on appeal

12 On an appeal against a decision mentioned in paragraph 1(a) … the tribunal may affirm or cancel the decision.

13 On an appeal against a decision mentioned in paragraph 1(f) … the appeal tribunal may:

(a)

affirm the decision, or

(b)

substitute for that decision another decision that the Commissioners had power to make.

…

15(1) On an appeal against a decision mentioned in paragraph 1 … (n) …, the appeal tribunal may allow the appeal only if it considers that:

(a)

the Commissioners could not reasonably have been satisfied that there were grounds for the decision, or

(b)

if information bought to the intention of the appeal tribunal had been available to the Commissioners at the time the decision was made, the Commissioners could not reasonably have been satisfied that there were grounds for the decision.”

Soft Drinks Industry Levy Regulations 2018 (Regs)

Regulation 2 – Interpretation:

“(1)

In these Regulations:

“account” means an account described in regulation 23;

“accounting period” has the meaning given by regulation 19;

…

“liable person” means a person described in section 35 who is liable to pay soft drinks industry levy;

…

“return” means a return described in regulation 21;

“sufficient evidence” has the meaning given by regulation 17 …”

Regulation 15 – Tax credits

“(1)

A liable person is entitled to a tax credit if, after a charge to soft drinks industry levy has arisen in relation to chargeable soft drinks, any of cases 1 to 3 applies to those drinks.

(2)

Case 1 applies where the person or another person exports chargeable soft drinks from the United Kingdom.

…

(5)

A liable person must make a claim for the tax credit.

(6)

The tax credit is the amount (“the credit amount”) equal to the amount of the soft drinks industry levy charge which applies to the chargeable soft drinks at the time of the chargeable event which occurs in relation to them.

(7)

In respect of Case 1, a claim for tax credit may be made in the return for an accounting period in which the person liable has sufficient evidence that the chargeable soft drinks have been exported.

…

(10)

A claim for tax credit must:

(a)

show separately the total of the credit amounts for:

(i)

cases 1 and 2; and

(ii)

case 3; and

(b)

identify how much of each total is in respect of soft drinks industry levy charged at the [higher band rate] and how much at the [lower band rate].

(11)

No claim may be made for a tax credit in respect of chargeable soft drinks more than two years after the date on which the chargeable event arose in respect of those soft drinks. …”

Regulation 17 – Sufficient evidence

“(1)

In regulations 15 … “Sufficient evidence” means the prescribed evidence showing that the case applicable to the chargeable soft drinks has been met.

(2)

The Commissioners must prescribe what amounts to sufficient evidence in each case.”

Regulation 19 – Accounting periods

“(1)

A liable person must make payments of soft drinks industry levy in respect of each accounting period.

(2)

The accounting periods are the three month period ending 31^st March, 30^th June, 30^th September and 31^st December.”

Regulation 20 – Payment

“(1)

A liable person must pay the total amount of soft drinks industry levy payable in respect of an accounting period within the period of 30 days beginning with the last day of the accounting period.

(2)

The total amount is the amount required to be stated in the return in respect of the period.

(3)

Payment must be made by the method prescribed.”

Regulation 20(2) is subject to a footnote that references Part 1 of Schedule 8 concerning HMRC’s power to raise an assessment where a return is not filed (see paragraph 15 above).

Regulation 21 – returns

“(1)

For each accounting period, a liable person must make a return to the Commissioners and do so within the period of 30 days beginning with the last day of the accounting period.

(2)

A return must be dated and made in the form and manner prescribed by the Commissioners …

(3)

A return must include the matters prescribed by the Commissioners.”

Regulation 22 – content of returns

“(1)

The Commissioners must prescribe the matters to be included in a return, in addition to the information required under regulation 15(10).

(2)

The matters:

(a)

must include:

(i)

the total amount of soft drinks industry levy payable in respect of the accounting period in respect of which the return is made; and

(ii)

the method for payment …

(b)

may include:

(i)

any or all of the other information required to be included in an account;

(ii)

the information required in relation to corrections required to a previous return; and

(iii)

a declaration by the liable person that the matters stated in the return of true and accurate.

…”

Regulation 23 – requirement to keep accounts

“(1)

For each accounting period, a liable person must keep accounts for the purposes of the soft drinks industry levy.

(2)

The accounts must include details of the following quantities:

… (b) where the person liable falls within section 35(2), the quantity of chargeable soft drinks imported to which a chargeable event in section 33(2) … applies …

(3)

Those quantities must be shown in litres.

…

(5)

The accounts must show separately in respect of each of the quantities described in paragraph (2):

(a)

the rate of the soft drinks industry levy which is applicable; and

(b)

the amount of the soft drink industry levy payable.

(6)

The accounts must include details of:

(a)

how any tax credit is calculated;

(b)

the case which applies to any tax credit; and

(c)

any adjustments or corrections made in respect of any previous accounting period, including identification of the period.

(7)

The accounts must show the total of soft drinks industry levy payable in respect of the accounting period.

…”