Session 2012 - 13
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1203

 

House of Commons

 
 

Thursday 18 April 2013

 

Committee of the whole House

 

New Amendments handed in are marked thus Parliamentary Star

 

Finance (No. 2) Bill


 

(Clauses 1, 3, 16, 183, 184 and 200 to 212; Schedules 3 and 41; any new Clauses, and any new


 

Schedules, first appearing on the Order Paper not later than Tuesday 16 April 2013 and


 

relating to tax measures concerning housing; and any new Clauses, and any new Schedules,


 

relating to value added tax or the bank levy or air passenger duty or the subject matter of


 

Clauses 1 and 16 and Schedule 3 or the subject matter of Clause 3 or the subject matter of


 

Clauses 203 to 212 and Schedule 41)


 

Note

 

The Amendments have been arranged in accordance with the Order of the House

 

[15 April 2013].

 


 

Ed Balls

 

Chris Leslie

 

Catherine McKinnell

 

Cathy Jamieson

 

John McDonnell

 

1

 

Clause  1,  page  1,  line  7,  at end add—

 

‘(1)    

The Chancellor of the Exchequer shall, within three months of the passing of this

 

Act, publish a report on the additional rate of income tax.

 

(2)    

This report shall review the impact upon Exchequer receipts of setting the

 

additional rate to 50 per cent. in tax year 2014-15.

 

(3)    

The report shall review what impact reducing the additional rate for 2013-14 will

 

have on the amount of income tax currently paid by those with taxable incomes of

 

(a)    

over £150,000 per year; and

 

(b)    

over £1,000,000 per year.’.

 

Ed Balls

 

Cathy Jamieson

 

Chris Leslie

 

Catherine McKinnell

 

5

 

Clause  1,  page  1,  line  7,  at end add—


 
 

Committee of the whole House: 18 April 2013              

1204

 

Finance (No. 2) Bill , continued

 
 

‘(2)    

Income tax is charged for the tax year 2013-14, and for that tax year—

 

(a)    

the basic rate is 20%,

 

(b)    

the higher rate is 40%, and

 

(c)    

the additional rate is 50%.

 

(3)    

Income tax is charged for the tax year 2014-15, and for that tax year—

 

(a)    

the basic rate is 20%,

 

(b)    

the higher rate is 40%, and

 

(c)    

the additional rate is 50%.’.

 


 

Ed Balls

 

Cathy Jamieson

 

Chris Leslie

 

Catherine McKinnell

 

John McDonnell

 

9

 

Clause  16,  page  7,  line  20,  at end add—

 

‘(2)    

The Chancellor of the Exchequer shall assess the possibility of restricting

 

pensions tax relief for people paying the additional rate of income tax and how

 

the revenue raised from this measure could be used to guarantee jobs for adults

 

who are out of work for 24 months or more, and shall, within three months of the

 

passing of this Act, place a copy of the report in the House of Commons Library.’.

 


 

New Clauses and new Schedules relating to value added tax or the

 

subject matter of Clause 3

 

Rate of VAT

 

Ed Balls

 

Cathy Jamieson

 

Chris Leslie

 

Catherine McKinnell

 

NC2

 

To move the following Clause:—

 

‘(1)    

In section 2(1) of the Value Added Tax Act 1994 (Rate of VAT) for “20 per cent”

 

substitute “17.5 per cent”.

 

(2)    

Subsection (1) shall have effect from Royal Assent and shall expire at such time

 

as the Government presents to Parliament a report stating that the UK economy

 

has returned to strong growth.’.

 



 
 

Committee of the whole House: 18 April 2013              

1205

 

Finance (No. 2) Bill , continued

 
 

Ed Balls

 

Chris Leslie

 

Catherine McKinnell

 

Cathy Jamieson

 

4

 

Clause  3,  page  2,  line  11,  at end add—

 

‘(3)    

The Chancellor of the Exchequer shall lay before Parliament proposals for an

 

income tax rate of 10 per cent on income above the personal allowance, with the

 

range of income covered by the 10 per cent rate being determined by the

 

Exchequer yield of a mansion tax and so that the full benefit of the 10 per cent

 

rate goes to basic rate taxpayers.’.

 

Ed Balls

 

Cathy Jamieson

 

Chris Leslie

 

Catherine McKinnell

 

John McDonnell

 

10

 

Clause  3,  page  2,  line  11,  at end add—

 

‘(3)    

The Chancellor shall produce a report on subsection (1) which shall include an

 

assessment of the impact of changes to taxation on the living standards of basic

 

rate taxpayers which shall be placed in the House of Commons Library within

 

three months of Royal Assent.’.

 


 

New Clauses and New Schedules relating to air Passenger Duty

 

Long haul rates of duty (Scotland)

 

Mr Angus Brendan MacNeil

 

Angus Robertson

 

Stewart Hosie

 

Mr Mike Weir

 

Pete Wishart

 

Dr Eilidh Whiteford

 

NC3

 

To move the following Clause:—

 

‘After section 30A of the Finance act 1994 there shall be inserted—

 

“30B  

Scotland long haul rates of duty

 

(1)    

This section applies to the carriage of a chargeable passenger if—

 

(a)    

the carriage begins on or after the relevant day,

 

(b)    

the only flight, or the first flight, of the passenger’s journey

 

begins at an airport or aerodrome in Scotland,

 

(c)    

the passenger’s journey does not end at an airport or aerodrome

 

in the United Kingdom or a territory specified in Part 1 of

 

Schedule 5A, and

 

(d)    

if the passenger’s journey has more than one flight, the first flight

 

is not followed by a connected flight beginning at an airport or

 

aerodrome in the United Kingdom or a territory specified in Part

 

1 of Schedule 5a.


 
 

Committee of the whole House: 18 April 2013              

1206

 

Finance (No. 2) Bill , continued

 
 

(2)    

Air passenger duty is chargeable on the carriage of the chargeable

 

passenger at the rate determined as follows.

 

(3)    

If the passenger’s journey ends at an airport or aerodrome in a territory

 

specified in Part 2 of Schedule 5A—

 

(a)    

if the passenger’s agreement for carriage provides for standard

 

class travel in relation to every flight on the passenger’s journey,

 

the rate is the rate set by an Act of the Scottish Parliament for the

 

purposes of this paragraph, and

 

(b)    

in any other case the rate if the rate set by an Act of the Scottish

 

Parliament for the purposes of this paragraph.

 

(4)    

If the passenger’s journey ends at an airport or aerodrome in a territory

 

specified in Part 3 of Schedule 5A—

 

(a)    

if the passenger’s agreement for carriage provides for standard

 

class travel in relation to every flight on the passenger’s journey,

 

the rate is the rate set by an Act of the Scottish Parliament for the

 

purposes of this paragraph, and

 

(b)    

in any other case, the rate is the rate set by an Act of the Scottish

 

Parliament for the purposes of this paragraph.

 

(5)    

If the passenger’s journey ends at any other airport or aerodrome—

 

(a)    

if the passenger’s agreement for carriage provides for standard

 

class travel in relation to every flight on the passenger’s journey,

 

the rate is the rate set by an Act of the Scottish Parliament for the

 

purposes of this paragraph, and

 

(b)    

in any other case, the rate is the rate set by an Act of the Scottish

 

Parliament for the purposes of this paragraph.

 

(6)    

The rate of £0 may be set for the purposes of any paragraph.

 

(7)    

The same rate may be set for the purposes of two or more paragraphs.

 

(8)    

Any rate set must not exceed the rate which would apply if this section

 

were not in force.

 

(9)    

Subsections (5) to (7) and (10) to (12) of section 30 apply for the purposes

 

of this section as they apply for the purposes of that section.

 

(10)    

“The relevant day” means the day appointed as such by an order.

 

(11)    

Section 42(4) and (5) does not apply to any order under subsection (10).

 

(12)    

An Act of the Scottish Parliament means an Act passed under section 28

 

of the Scotland Act 1998.”.’.

 


 

Air passenger duty: Wales

 

Jonathan Edwards

 

NC4

 

To move the following Clause:—


 
 

Committee of the whole House: 18 April 2013              

1207

 

Finance (No. 2) Bill , continued

 
 


 

‘Schedule (Air Passenger Duty: Wales) has effect’.

 

 


 

Jonathan Edwards

 

NS1

 

To move the following Schedule:—

 

‘Air Passenger Duty: Wales

 

Part 1

 

Rates of Duty from 1 April 2013

 

1          

Section 30 of FA 1994 (air passenger duty: rates of duty) is amended as

 

follows.

 

            

After subsection (4D) insert—

 

 “(4DA)  

Subsection (4DA) applies if—

 

(a)    

the passenger’s journey is a relevant Wales journey, and

 

(b)    

apart from subsection (4C), subsection (2) would not apply

 

to the journey.

 

  (4DB)  

The applicable rate in subsection (2) applies to the journey instead

 

of the applicable rate in subsection (3), (4) or (4A) (as the case may

 

be).

 

  (4DC)  

A passenger’s journey is a “relevant Wales journey”—

 

(a)    

in the case of a journey which has only one flight, if the

 

flight begins in Wales, and

 

(b)    

in any other case, if the first flight of the journey—

 

(i)    

begins in Wales, and

 

(ii)    

is not followed by a connected flight beginning at

 

a place in the United Kingdom or a territory

 

specified in Part 1 of Schedule 5A.”

 

    

The amendments made by this Part of this Schedule have

 

effect in relation to the carriage of passengers beginning on

 

or after 1 April 2013.

 

Part 2

 

Devolution of Wales Long Haul Rates of Duty

 

2          

Chapter 4 of Part 1 of FA 1994 (air passenger duty) is amended as follows.

 

3    (1)  

Section 30 (rates of duty) is amended as follows.

 

      (2)  

After subsection (1) insert—

 

“(1B)  

Subsection (1) does not apply to the carriage of a chargeable

 

passenger to which section 30B below (Wales long haul rates of

 

duty) applies.”

 

      (3)  

Omit subsections (4DA) to (4DC) (as inserted by paragraph 1 above).


 
 

Committee of the whole House: 18 April 2013              

1208

 

Finance (No. 2) Bill , continued

 
 

      (4)  

The amendments made by this paragraph have effect in relation to the carriage

 

of passengers beginning on or after the relevant day as defined in section 30B

 

of FA 1994 (as inserted by paragraph 4 below).

 

4          

After section 30A insert—

 

“30B      

Wales long haul rates of duty

 

      (1)  

This section applies to the carriage of a chargeable passenger if—

 

(a)    

the carriage begins on or after the relevant day,

 

(b)    

the only flight, or the first flight, of the passenger’s journey

 

begins at a place in Wales,

 

(c)    

the passenger’s journey does not end at a place in the

 

United Kingdom or a territory specified in Part 1 of

 

Schedule 5A, and

 

(d)    

if the passenger’s journey has more than one flight, the first

 

flight is not followed by a connected flight beginning at a

 

place in the United Kingdom or a territory specified in Part

 

1 of Schedule 5A.

 

      (2)  

Air passenger duty is chargeable on the carriage of the chargeable

 

passenger at the rate determined as follows.

 

      (3)  

If the passenger’s journey ends at a place in a territory specified in

 

Part 2 of Schedule 5A—

 

(a)    

if the passenger’s agreement for carriage provides for

 

standard class travel in relation to every flight on the

 

passenger’s journey, the rate is the rate set by an Act of the

 

National Assembly for Wales for the purposes of this

 

paragraph, and

 

(b)    

in any other case, the rate is the rate set by an Act of the

 

National Assembly for Wales for the purposes of this

 

paragraph.

 

      (4)  

If the passenger’s journey ends at a place in a territory specified in

 

Part 3 of Schedule 5A—

 

(a)    

if the passenger’s agreement for carriage provides for

 

standard class travel in relation to every flight on the

 

passenger’s journey, the rate is the rate set by an Act of the

 

National Assembly for Wales with the purposes of this

 

paragraph, and

 

(b)    

in any other case, the rate is the rate set by an Act of the

 

National Assembly for Wales for the purposes of this

 

paragraph.

 

      (5)  

If the passenger’s journey ends at any other place—

 

(a)    

if the passenger’s agreement for carriage provides for

 

standard class travel in relation to every flight on the

 

passenger’s journey, the rate is the rate set by an Act of the

 

National Assembly for Wales for the purposes of this

 

paragraph, and

 

(b)    

in any other case, the rate is the rate set by an Act of the

 

National Assembly for Wales for the purposes of this

 

paragraph.

 

      (6)  

The rate of £0 may be set for the purposes of any paragraph.


 
 

Committee of the whole House: 18 April 2013              

1209

 

Finance (No. 2) Bill , continued

 
 

      (7)  

The same rate may be set for the purposes of two or more

 

paragraphs.

 

      (8)  

Subsections (5) to (7) and (10) to (12) of section 30 apply for the

 

purposes of this section as they apply for the purposes of that

 

section.

 

      (9)  

“The relevant day” means the day appointed as such by an order.

 

    (10)  

Section 42(4) and (5) does not apply to an order under subsection

 

(9).

 

    (11)  

A Bill containing provision authorised by this section may not be

 

passed by the National Wales Assembly except in pursuance of a

 

recommendation which—

 

(a)    

is made by the Minister of Finance, and

 

(b)    

is signified to the Assembly by the Minister or on the

 

Minister’s behalf.

 

    (12)  

“Passed”, in relation to a Bill, means passed at the final stage (at

 

which the Bill can be passed or rejected but not amended).

 

    (13)  

Duty paid to the Commissioners in respect of the carriage of

 

chargeable passengers to which this section applies must be paid by

 

the Commissioners into the Consolidated Fund of Wales.”

 

5    (1)  

Section 33 (registration of aircraft operators) is amended as follows.

 

      (2)  

After subsection (2A) insert—

 

“(2B)  

If the Commissioners decide to keep a register under section 33B

 

below, an operator of a chargeable aircraft does not become liable

 

to be registered under this section just because the aircraft is used

 

for the carriage of chargeable passengers to which section 30B

 

above applies.”

 

      (3)  

In subsection (3)(b) after “applies” insert “or, if the Commissioners have

 

decided to keep a register under section 33B below, that no chargeable aircraft

 

which he operates will be used for the carriage of chargeable passengers apart

 

from the carriage of chargeable passengers to which section 30B above

 

applies.

 

      (4)  

In subsection (7) after “section 33A” insert “or section 33B below.

 

6          

After section 33A insert—

 

“33B      

Registrations of Wales long haul aircraft operators.

 

      (1)  

The Commissioners may under this section keep a register of

 

aircraft operators.

 

      (2)  

If the Commissioners decide to keep a register under this section,

 

the operator of a chargeable aircraft becomes liable to be registered

 

under this section if the aircraft is used for the carriage of

 

chargeable passengers to which section 30B above applies.

 

      (3)  

A person who has become liable to be registered under this section

 

ceases to be so liable if the Commissioners are satisfied at any

 

time—

 

(a)    

the he no longer operates any chargeable aircraft, or

 

(b)    

that no chargeable aircraft which he operates will be used

 

for the carriage of chargeable passengers to which section

 

30B above applies.


 
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© Parliamentary copyright
Revised 18 April 2013