Session 2012 - 13
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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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Revised 30 June 2012