House of Commons Public Bill Committee Proceedings

Session 2012 - 13
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Other Bills before Parliament

389

SUPPLEMENT TO THE VOTES AND PROCEEDINGS

Thursday 18 April 2013

Committee of the whole House

Proceedings

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)

[Second Day]

Ed Balls

Chris Leslie

Catherine McKinnell

Cathy Jamieson

John McDonnell

Negatived on division  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

Not selected  5

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

‘(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%,

Committee of the whole House Proceedings: 18 April 2013
390

Finance (No. 2) Bill, continued

(b)
the higher rate is 40%, and

(c)
the additional rate is 50%.’.

Clause Agreed to.

Ed Balls

Cathy Jamieson

Chris Leslie

Catherine McKinnell

John McDonnell

Not selected  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.’.

Clause 16 and Schedule 3 stand part.

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

Negatived on division  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.’.

Ed Balls

Chris Leslie

Catherine McKinnell

Cathy Jamieson

Not selected  4

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

Committee of the whole House Proceedings: 18 April 2013
391

Finance (No. 2) Bill, continued

‘(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

Negatived on division  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.’.

Clause Agreed to.

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

Negatived on division  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.

(2)
Air passenger duty is chargeable on the carriage of the chargeable

passenger at the rate determined as follows.

Committee of the whole House Proceedings: 18 April 2013
392

Finance (No. 2) Bill, continued

(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

Negatived on division  NC4

To move the following Clause:—

Committee of the whole House Proceedings: 18 April 2013
393

Finance (No. 2) Bill, continued

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

Jonathan Edwards

Not called  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 Proceedings: 18 April 2013
394

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 Proceedings: 18 April 2013
395

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.



© Parliamentary copyright	Revised 19 April 2013