House of Commons Amendments

Session 2012 - 13
Internet Publications
Other Bills before Parliament

Consideration of Bill: 2 July 2012
194

Finance Bill, continued

Protected buildings

3    (1)
Group 6 (protected buildings) is amended as follows.

      (2)
Omit items 2 and 3 (approved alterations and building materials).

      (3)
In Note (3), for “(12) to (14) and (22) to (24)” substitute “and (12) to (14)”.

      (4)
For Note (4) substitute—

“(4)
For the purposes of item 1, a protected building is not to be regarded

as substantially reconstructed unless, when the reconstruction is

completed, the reconstructed building incorporates no more of the

original building (that is to say, the building as it was before the

reconstruction began) than the external walls, together with other

external features of architectural or historic interest.”

      (5)
In Note (5), in paragraphs (a), (b) and (c) omit “or other supply”.

      (6)
Omit Notes (6) to (11).

Caravans

4    (1)
Group 9 (caravans and houseboats) is amended as follows.

      (2)
For item 1 substitute—


“1 Caravans which exceed the limits of size of a trailer for the time

being permitted to be towed on roads by a motor vehicle having a

maximum gross weight of 3,500 kilogrammes and which—

(a)
were manufactured to standard BS 3632:2005 approved by

the British Standards Institution, or

(b)
are second hand, were manufactured to a previous version of

standard BS 3632 approved by that Institution and were

occupied before 6 April 2013.”

      (3)
In item 3 for “5(3)” substitute “5(4)”.

      (4)
In the Note for “item 3” substitute “item 4”.

Part 2

Exempt supplies

Land: self storage and facilities to supply hairdressing services

1    (1)
In Part 2 of Schedule 9 to VATA 1994 (exemptions), Group 1 (land) is

amended as follows.

      (2)
In item 1, after paragraph (k) insert—

“(ka)
the grant of facilities for the self storage of goods;”.

      (3)
In that item, omit “and” at the end of paragraph (m) and after that paragraph

insert—

“(ma)
the grant of facilities to a person who uses the facilities wholly

or mainly to supply hairdressing services; and”.

      (4)
In that item, in paragraph (n), for “(m)” substitute “(ma)”.

      (5)
After Note (15) insert—

“(15A)
In paragraph (ka)—

“facilities for the self storage of goods” means the use of a relevant

structure for the storage of goods by the person (or persons) to

whom the grant of facilities is made, and

“goods” does not include live animals.

Consideration of Bill: 2 July 2012
195

Finance Bill, continued

  (15B)
For the purposes of Note (15A), use by a person with the permission

of the person (or any of the persons) to whom the grant of facilities

is made counts as use by the person (or persons) to whom that grant

is made.

  (15C)
A grant of facilities for the self storage of goods does not fall within

paragraph (ka) if—

(a)
the person making the grant (“P”)—

(i)
is doing so in circumstances where the relevant

structure used is, or forms part of, a relevant capital

item, and

(ii)
is connected with any person who uses that

relevant structure for the self storage of goods,

(b)
the grant is made to a charity which uses the relevant

structure solely otherwise than in the course of a business,

or

(c)
in a case where the relevant structure is part of a building,

its use for the storage of goods by the person (or persons)

to whom the grant is made is ancillary to other use of the

building by that person (or those persons).

  (15D)
In Notes (15A) and (15C) “relevant structure” means the whole or

part of—

(a)
a container or other structure that is fully enclosed, or

(b)
a unit or building.

  (15E)
In Note (15C)(a)(i) “relevant capital item” means a capital item

which—

(a)
is subject to adjustments of input tax deduction by P under

regulations made under section 26(3), and

(b)
has not yet reached the end of its prescribed period of

adjustment.”

      (6)
After Note (16) insert—

“(17)
Paragraph (ma) does not apply to a grant of facilities which

provides for the exclusive use, by the person to whom the grant is

made, of a whole building, a whole floor, a separate room or a

clearly defined area, unless the person making the grant or a person

connected with that person provides or makes available (directly or

indirectly) services related to hairdressing for use by the person to

whom the grant is made.

    (18)
For the purposes of Note (17)—

(a)
“services related to hairdressing” means the services of a

hairdresser’s assistant or cashier, the booking of

appointments, the laundering of towels, the cleaning of the

facilities subject to the grant, the making of refreshments

and other similar services typically used in connection with

hairdressing, but does not include the provision of utilities

or the cleaning of shared areas in a building, and

(b)
it does not matter if the services related to hairdressing are

shared with other persons.

    (19)
For the purposes of Notes (15C) and (17) any question whether a

person is connected with any other person is to be determined in

Consideration of Bill: 2 July 2012
196

Finance Bill, continued

accordance with section 1122 of the Corporation Tax Act 2010

(connected person).”

Part 3

Supplies chargeable at reduced rate

1    (1)
Schedule 7A to VATA 1994 (charged at reduced rate) is amended as follows.

      (2)
In Part 1 (index to reduced-rate supplies of goods and service), at the

appropriate place insert—

“Caravans
Group 12”

      (3)
In Part 2 (the groups), at the end insert—

“GROUP 12

CARAVANS


Item No

1
Supplies of caravans which exceed the limits of size of a trailer for

the time being permitted to be towed on roads by a motor vehicle

having a maximum gross weight of 3,500 kilogrammes.

2
The supply of such services as are described in paragraph 1(1) or

5(4) of Schedule 4 in respect of a caravan within item 1.


NOTE:


This Group does not include—

(a)
removable contents other than goods of a kind mentioned in item 4 of Group

5 of Schedule 8, or

(b)
the supply of accommodation in a caravan.”

Part 4

Commencement and transitional provision

1    (1)
Subject to sub-paragraphs (2) and (3), the amendments made by this Schedule

come into force on 1 October 2012.

      (2)
Paragraphs 4 and 6 come into force on 6 April 2013.

      (3)
Paragraph 3(2) to (6) comes into force, in relation to relevant supplies, on 1

October 2015.

      (4)
A supply is “relevant” if it is—

(a)
a supply of any services, other than excluded services, which is

made—

(i)
in the course of an approved alteration of a protected building,

and

(ii)
pursuant to a written contract entered into, or a relevant

consent applied for, before 21 March 2012, or

(b)
a supply of building materials which is made—

(i)
to a person to whom the supplier is supplying services within

paragraph (a) which include the incorporation of the materials

into the building (or its site) in question, and

Consideration of Bill: 2 July 2012
197

Finance Bill, continued

(ii)
pursuant to a written contract entered into, or a relevant

consent applied for, before 21 March 2012.

      (5)
In relation to supplies made on or after 1 October 2012 but before 1 October

2015, Group 6 has effect as if, for the purposes of item 1 of that Group, a

protected building were also regarded as substantially reconstructed if sub-

paragraph (6) or (7) applies.

      (6)
This sub-paragraph applies if at least three-fifths of the works carried out to

effect the reconstruction (measured by reference to cost) are of such a nature

that the supply of services (other than excluded services), materials and other

items to carry out the works would, if supplied by a taxable person, be relevant

supplies.

      (7)
This sub-paragraph applies if—

(a)
at least 10% (measured by reference to cost) of the reconstruction of

the protected building was completed before 21 March 2012, and

(b)
at least three-fifths of the works carried out to effect the reconstruction

(measured by reference to cost) are of such a nature that the supply of

services (other than excluded services), materials and other items to

carry out the works would, if supplied by a taxable person, be relevant

supplies but for the requirement for a written contract to have been

entered into or relevant consent to have been applied for before that

date.

      (8)
For the purposes of sub-paragraph (4), works carried out that are not within the

scope of the written contract entered into, or the relevant consent applied for,

as it stood immediately before 21 March 2012, are not a supply made pursuant

to that contract or relevant consent.

      (9)
In this paragraph—

“excluded services” means the services of an architect, surveyor or other

person acting as consultant or in a supervisory capacity;

“Group 6” means Group 6 of Part 2 of Schedule 8 to VATA 1994 (protected

buildings);

“relevant consent” means—

(a)
in the case of an ecclesiastical building to which section 60 of the

Planning (Listed Buildings and Conservation Areas) Act 1990

applies, consent for the approved alterations by a competent

body with the authority to approve alterations to such buildings,

or

(b)
in any other case, consent under any provision of—

(i)
Part 1 of the Planning (Listed Buildings and

Conservation Areas) Act 1990,

(ii)
Part 1 of the Planning (Listed Buildings and

Conservation Areas) (Scotland) Act 1997,

(iii)
Part 5 of the Planning (Northern Ireland) Order 1991,

(iv)
Part 1 of the Ancient Monuments and Archaeological

Areas Act 1979, or

(v)
Part 2 of the Historic Monuments and Archaeological

Objects (Northern Ireland) Order 1995.

    (10)
The Notes of Group 6 apply in relation to this paragraph as they apply in

relation to that Group, except that in applying Notes (9), (10) and (11),

references to item 2 are to be read as references to sub-paragraph (4) of this

paragraph.’.

Consideration of Bill: 2 July 2012
198

Finance Bill, continued

Mr Chancellor of the Exchequer

18

Page  589,  line  16  [Schedule  26],  leave out sub-paragraph (1).

Mr Chancellor of the Exchequer

19

Page  589,  line  24  [Schedule  26],  after ‘a supply’ insert ‘of a description specified in

paragraph 3’.

Mr Chancellor of the Exchequer

20

Page  589,  line  28  [Schedule  26],  leave out ‘the order’ and insert ‘the amendments

made by Schedule (Categorisation of supplies)’.

New Clauses and New Schedules relating to the taxation of banks and

employees of banks

Bank bonus tax

Ed Balls

Rachel Reeves

Catherine McKinnell

Chris Leslie

Cathy Jamieson

NC13

To move the following Clause:—

‘The Chancellor of the Exchequer shall review how a bank bonus tax could be

repeated and place a report in the library of the House of Commons by 1

September 2012 on how the revenue raised could be invested in a Real Jobs

Guarantee to create new jobs and tackle unemployment.’.

REMAINING NEW CLAUSES AND AMENDMENTS TO CLAUSES

Pension death benefits in higher education

Mr Frank Field

NC2

To move the following Clause:—

‘(1)
Paragraph 15 of Schedule 28 to FA 2004 (meaning of “dependant”) is amended

as follows.

(2)
In sub-paragraph (2)(a) at end insert—



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