(1) Part 2 of the Finance Act 2017 (soft drinks industry levy) is amended as follows.
(2) Section 26 (“soft drink” and “package”) is amended as follows—
(c) a liquid flavouring (a “flavour concentrate”) which, when processed in a specified manner in a dispensing machine, constitutes a beverage within that paragraph.”;
(b) after subsection (2) insert—
“(2A) A flavour concentrate is processed in a specified manner if—
(c) it is combined with added sugar ingredients, with or without—
(i) artificial sweeteners, or
(ii) one or more other flavour concentrates; and
(d) the flavour concentrate (or combination) is prepared in a specified manner.
(2B) A “dispensing machine” is a machine designed to—
(a) combine, process or prepare ingredients so as to produce a beverage, and
(b) supply the beverage directly to a consumer.
(2C) In subsection (2A)(a), “added sugar ingredients” means anything within paragraph (a) or (b) of section 29(2).”;
(c) in subsection (3)—
(i) omit the “and” at the end of paragraph (a);
(ii) after paragraph (b) insert “and
(c) in the case of a soft drink within subsection (1)(c)—