†
|
2
|
WAYS AND MEANS: Adjourned debate on Question (23 March).
|
[Until 10.00 pm]
|
|
|
(1)
|
That it is expedient to amend the law with respect to the National Debt and the public revenue and to make further provision
in connection with finance.
|
|
(2)
|
This Resolution does not extend to the making of any amendment with respect to value added tax so as to provide—
|
|
(a)
|
for zero-rating or exempting a supply, acquisition or importation,
|
|
(b)
|
for refunding an amount of tax,
|
|
(c)
|
for any relief, other than a relief that—
|
|
(i)
|
so far as it is applicable to goods, applies to goods of every description, and
|
|
(ii)
|
so far as it is applicable to services, applies to services of every description.—(Mr Chancellor of the Exchequer).
|
|
The remaining Motions, numbered 2 to 52, and those relating to Procedure (Future Taxation), Procedure (Data-gathering powers
in connection with certain foreign taxes), Procedure (Mutual assistance in recovery of taxes, duties etc.) and Finance (Money)
are to be moved at the conclusion of the Budget Debate after the decision on the Motion before the House. They will be decided
without debate (Standing Order No. 51(3)).
|
2. Income tax (charge and main rates)
|
|
|
(1)
|
Income tax is charged for the tax year 2011-12.
|
|
|
(a)
|
the basic rate is 20%,
|
|
(b)
|
the higher rate is 40%, and
|
|
(c)
|
the additional rate is 50%.
|
|
|
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the
provisions of the Provisional Collection of Taxes Act 1968.
|
|
3. Income tax (basic rate limit)
|
|
|
(1)
|
For the tax year 2011-12 the amount specified in section 10(5) of the Income Tax Act 2007 (basic rate limit) is replaced with
“£35,000”.
|
|
(2)
|
Accordingly section 21 of that Act (indexation of limits), so far as relating to the basic rate limit, does not apply for
that tax year.
|
|
|
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the
provisions of the Provisional Collection of Taxes Act 1968.
|
|
4. Income tax (personal allowance for those aged under 65)
|
|
|
(1)
|
For the tax year 2011-12 the amount specified in section 35(1) of the Income Tax Act 2007 (personal allowance for those aged
under 65) is replaced with “£7,475”.
|
|
(2)
|
Accordingly section 57 of that Act (indexation of allowances), so far as relating to the amount specified in section 35(1)
of that Act, does not apply for that tax year.
|
|
|
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the
provisions of the Provisional Collection of Taxes Act 1968.
|
|
5. Corporation tax (main rate for financial year 2011)
|
|
|
(1)
|
In section 2(2)(a) of the Finance Act 2010 (main corporation tax rate for financial year 2011 on profits other than ring fence
profits), for “27%” substitute “26%”.
|
|
(2)
|
The amendment made by this Resolution comes into force on 1 April 2011.
|
|
|
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the
provisions of the Provisional Collection of Taxes Act 1968.
|
|
6. Corporation tax (charge and main rate for financial year 2012)
|
|
|
(1)
|
Corporation tax is charged for the financial year 2012.
|
|
(2)
|
For that year the rate of corporation tax is—
|
|
(a)
|
25% on profits of companies other than ring fence profits, and
|
|
(b)
|
30% on ring fence profits of companies.
|
|
(3)
|
In paragraph (2) “ring fence profits” has the same meaning as in Part 8 of the Corporation Tax Act 2010 (see section 276 of
that Act).
|
|
7. Corporation tax (small profits rate and fractions for financial year 2011)
|
|
|
(1)
|
For the financial year 2011 the small profits rate is—
|
|
(a)
|
20% on profits of companies other than ring fence profits, and
|
|
(b)
|
19% on ring fence profits of companies.
|
|
(2)
|
For the purposes of Part 3 of the Corporation Tax Act 2010, for that year—
|
|
(a)
|
the standard fraction is 3/200ths, and
|
|
(b)
|
the ring fence fraction is 11/400ths.
|
|
(3)
|
In paragraph (1) “ring fence profits” has the same meaning as in Part 8 of that Act (see section 276 of that Act).
|
|
8. Increase in rate of supplementary charge
|
|
|
(1)
|
In section 330 of the Corporation Tax Act 2010 (supplementary charge in respect of ring fence trades), in subsection (1),
for “20%” substitute “32%”.
|
|
(2)
|
The amendment made by paragraph (1) has effect in relation to accounting periods beginning on or after 24 March 2011 (but
see also paragraph (3)).
|
|
(3)
|
Paragraphs (4) to (9) apply where a company has an accounting period beginning before 24 March 2011 and ending on or after
that date (“the straddling period”).
|
|
(4)
|
For the purpose of calculating the amount of the supplementary charge on the company for the straddling period—
|
|
(a)
|
so much of that period as falls before 24 March 2011, and so much of that period as falls on or after that date, are treated
as separate accounting periods, and
|
|
(b)
|
the company’s adjusted ring fence profits for the straddling period are apportioned to the two separate accounting periods
in proportion to the number of days in those periods.
|
|
(5)
|
The amount of the supplementary charge on the company for the straddling period is the sum of the amounts of supplementary
charge that would, in accordance with paragraph (4), be chargeable on the company for those separate accounting periods.
|
|
(6)
|
In relation to the straddling period—
|
|
(a)
|
the Instalment Payments Regulations apply as if the amendment made by paragraph (1) had not been made, but
|
|
(b)
|
those Regulations also apply separately, in accordance with paragraph (7), in relation to the increase in the amount of any
supplementary charge on the company for that period that arises as a result of that amendment.
|
|
(7)
|
In the separate application of those Regulations under paragraph (6)(b), those Regulations have effect as if, for the purposes
of those Regulations—
|
|
(a)
|
the straddling period were an accounting period beginning on 24 March 2011,
|
|
(b)
|
supplementary charge were chargeable on the company for that period, and
|
|
(c)
|
the amount of that charge were equal to the increase in the amount of the supplementary charge for the straddling period that
arises as a result of the amendment made by paragraph (1).
|
|
(8)
|
Any reference in the Instalment Payment Regulations to the total liability of a company is, accordingly, to be read—
|
|
(a)
|
in their application as a result of paragraph (6)(a), as a reference to the amount that would be the company’s total liability
for the straddling period if the amendment made by paragraph (1) had not been made, and
|
|
(b)
|
in their application as a result of paragraph (6)(b), as a reference to the amount of the supplementary charge on the company
for the deemed accounting period under paragraph (7)(a).
|
|
(9)
|
For the purposes of the Instalment Payment Regulations—
|
|
(a)
|
a company is to be regarded as a large company as respects the deemed accounting period under paragraph (7)(a) if (and only
if) it is a large company for those purposes as respects the straddling period, and
|
|
(b)
|
any question whether a company is a large company as respects the straddling period is to be determined as it would have been
determined if the amendment made by paragraph (1) had not been made.
|
|
|
|
“adjusted ring fence profits” has the same meaning as in section 330 of the Corporation Tax Act 2010;
|
|
|
“the Instalment Payments Regulations” means the Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/3175);
|
|
|
“supplementary charge” means any sum chargeable under section 330(1) of the Corporation Tax Act 2010 as if it were an amount
of corporation tax.
|
|
|
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the
provisions of the Provisional Collection of Taxes Act 1968.
|
|
|
|
That provision (including provision having retrospective effect) may be made about capital allowances.
|
|
10. Alcoholic liquor duties (rates)
|
|
|
(1)
|
The Alcoholic Liquor Duties Act 1979 is amended as follows.
|
|
(2)
|
In section 5 (rate of duty on spirits), for “£23.80” substitute “£25.52”.
|
|
(3)
|
In section 36(1AA)(a) (standard rate of duty on beer), for “£17.32” substitute “£18.57”.
|
|
(4)
|
In section 62(1A) (rates of duty on cider)—
|
|
(a)
|
in paragraph (a) (rate of duty per hectolitre in the case of sparkling cider of a strength exceeding 5.5 per cent), for “£217.83”
substitute “£233.55”,
|
|
(b)
|
in paragraph (b) (rate of duty per hectolitre in the case of cider of a strength exceeding 7.5 per cent which is not sparkling
cider), for “£50.22” substitute “£53.84”, and
|
|
(c)
|
in paragraph (c) (rate of duty per hectolitre in any other case), for “£33.46” substitute “£35.87”.
|
|
(5)
|
For the table in Schedule 1 substitute—
|
|
|
“Table of rates of duty on wine and made-wine
Part 1
Wine or made-wine of a strength not exceeding 22 per cent
|
Description of wine or made-wine
|
Rates of duty per hectolitre £
|
Wine or made-wine of a strength not exceeding 4 per cent
|
74.32
|
Wine or made-wine of a strength exceeding 4 per cent but not exceeding 5.5 per cent
|
102.21
|
Wine or made-wine of a strength exceeding 5.5 per cent but not exceeding 15 per cent and not being sparkling
|
241.23
|
Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent but less than 8.5 per cent
|
233.55
|
Sparkling wine or sparkling made-wine of a strength of 8.5 per cent or of a strength exceeding 8.5 per cent but not exceeding
15 per cent
|
308.99
|
Wine or made-wine of a strength exceeding 15 per cent but not exceeding 22 per cent
|
321.61
|
|
|
|
Part 2
Wine or made-wine of a strength exceeding 22 per cent
|
Description of wine or made-wine
|
Rates of duty per litre of alcohol in wine or made-wine £
|
Wine or made-wine of a strength exceeding 22 per cent
|
25.52”.
|
|
|
(6)
|
The amendments made by this Resolution come into force on 28 March 2011.
|
|
|
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the
provisions of the Provisional Collection of Taxes Act 1968.
|
|
11. High strength beer duty
|
|
|
That provision may be made for and in connection with high strength beer duty.
|
|
12. Tobacco products duty (rates)
|
|
|
(1)
|
For the table in Schedule 1 to the Tobacco Products Duty Act 1979 substitute—
|
|
|
1. Cigarettes
|
An amount equal to 16.5 per cent of the retail price plus £154.95 per thousand cigarettes
|
2. Cigars
|
£193.29 per kilogram
|
3. Hand-rolling tobacco
|
£151.90 per kilogram
|
4. Other smoking tobacco and chewing tobacco
|
£84.98 per kilogram”.
|
|
|
(2)
|
The amendment made by this Resolution comes into force at 6 pm on 23 March 2011.
|
|
|
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the
provisions of the Provisional Collection of Taxes Act 1968.
|
|
13. Amusement machine licence duty (amounts of duty)
|
|
|
(1)
|
In section 23(2) of the Betting and Gaming Duties Act 1981 (amount of duty payable on amusement machine licence), for the
table substitute—
|
|
|
Months for which licence granted
|
Category A £
|
Category B1 £
|
Category B2 £
|
Category B3 £
|
Category B4 £
|
Category C £
|
1
|
535
|
270
|
215
|
215
|
195
|
85
|
2
|
1070
|
535
|
425
|
425
|
385
|
160
|
3
|
1605
|
805
|
635
|
635
|
575
|
240
|
4
|
2140
|
1070
|
845
|
845
|
765
|
320
|
5
|
2675
|
1340
|
1055
|
1055
|
960
|
400
|
6
|
3210
|
1605
|
1265
|
1265
|
1150
|
480
|
7
|
3745
|
1875
|
1475
|
1475
|
1340
|
555
|
8
|
4280
|
2140
|
1685
|
1685
|
1530
|
635
|
9
|
4815
|
2410
|
1895
|
1895
|
1725
|
715
|
10
|
5350
|
2675
|
2105
|
2105
|
1915
|
795
|
11
|
5885
|
2945
|
2315
|
2315
|
2105
|
875
|
12
|
6110
|
3055
|
2405
|
2405
|
2185
|
905”.
|
|
|
(2)
|
The amendment made by this Resolution has effect in relation to cases where the application for the amusement machine licence
is received by the Commissioners for Her Majesty’s Revenue and Customs after 4 pm on 25 March 2011.
|
|
|
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the
provisions of the Provisional Collection of Taxes Act 1968.
|
|
14. Fuel duty (rates from 23 March 2011)
|
|
|
(1)
|
The Hydrocarbon Oil Duties Act 1979 is amended as follows.
|
|
(2)
|
In section 6(1A) (main rates)—
|
|
(a)
|
in paragraph (a) (unleaded petrol), for “£0.5895” substitute “£0.5795”,
|
|
(b)
|
in paragraph (aa) (aviation gasoline), for “£0.3835” substitute “£0.3770”,
|
|
(c)
|
in paragraph (b) (light oil other than unleaded petrol or aviation gasoline), for “£0.6867” substitute “£0.6767”, and
|
|
(d)
|
in paragraph (c) (heavy oil) for “£0.5895” substitute “£0.5795”.
|
|
(3)
|
In section 8(3) (road fuel gas)—
|
|
(a)
|
in paragraph (a) (natural road fuel gas), for “£0.2615” substitute “£0.2470”, and
|
|
(b)
|
in paragraph (b) (other road fuel gas), for “£0.3304” substitute “£0.3161”.
|
|
(4)
|
In section 11(1) (rebate on heavy oil)—
|
|
(a)
|
in paragraph (a) (fuel oil), for “£0.1088” substitute “£0.1070”, and
|
|
(b)
|
in paragraph (b) (gas oil) for “£0.1133” substitute “£0.1114”.
|
|
(5)
|
In section 14(1) (rebate on light oil for use as furnace fuel), for “£0.1088” substitute “£0.1070”.
|
|
(6)
|
In section 14A(2) (rebate on certain biodiesel), for “£0.1133” substitute “£0.1114”.
|
|
(7)
|
The amendments made by this Resolution come into force at 6 pm on 23 March 2011.
|
|
|
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the
provisions of the Provisional Collection of Taxes Act 1968.
|
|
15. Fuel duty (rates from January 2012)
|
|
|
That provision may be made amending the rates of duty and rebates in the Hydrocarbon Oil Duties Act 1979 from 1 January 2012.
|
|
16. Vehicle excise duty (rates for light passenger vehicles etc)
|
|
|
(1)
|
Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty) is amended as follows.
|
|
(2)
|
In paragraph 1 (general)—
|
|
(a)
|
in sub-paragraph (2) (vehicle not covered elsewhere in Schedule otherwise than with engine cylinder not exceeding 1,549cc),
for “£205” substitute “£215”, and
|
|
(b)
|
in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for
“£125” substitute “£130”.
|
|
(3)
|
In paragraph 1B (graduated rates of duty for light passenger vehicles)—
|
|
(a)
|
for the tables substitute—
|
|
|
“Table 1
Rates payable on first vehicle licence for vehicle
|
CO2 emissions figure
|
Rate
|
(1)
|
(2)
|
(3)
|
(4)
|
Exceeding
|
Not exceeding
|
Reduced rate
|
Standard rate
|
g/km
|
g/km
|
£
|
£
|
130
|
140
|
105
|
115
|
140
|
150
|
120
|
130
|
150
|
165
|
155
|
165
|
165
|
175
|
255
|
265
|
175
|
185
|
305
|
315
|
185
|
200
|
435
|
445
|
200
|
225
|
570
|
580
|
225
|
255
|
780
|
790
|
255
|
-
|
990
|
1000
|
|
|
|
Table 2
Rates payable on any other vehicle licence for vehicle
|
CO2 emissions figure
|
Rate
|
(1)
|
(2)
|
(3)
|
(4)
|
Exceeding
|
Not exceeding
|
Reduced rate
|
Standard rate
|
g/km
|
g/km
|
£
|
£
|
100
|
110
|
10
|
20
|
110
|
120
|
20
|
30
|
120
|
130
|
85
|
95
|
130
|
140
|
105
|
115
|
140
|
150
|
120
|
130
|
150
|
165
|
155
|
165
|
165
|
175
|
180
|
190
|
175
|
185
|
200
|
210
|
185
|
200
|
235
|
245
|
200
|
225
|
250
|
260
|
225
|
255
|
435
|
445
|
255
|
-
|
450
|
460”;
|
|
|
(b)
|
in the sentence immediately following the tables, for paragraphs (a) and (b) substitute—
|
|
“(a)
|
in column (3), in the last two rows, “250” were substituted for “435” and “450”, and
|
|
(b)
|
in column (4), in the last two rows, “260” were substituted for “445” and “460”.”
|
|
(4)
|
In paragraph 1J (VED rates for light goods vehicles)—
|
|
(a)
|
in paragraph (a), for “£200” substitute “£210”, and
|
|
(b)
|
in paragraph (b), for “£125” substitute “£130”.
|
|
(5)
|
In paragraph 2(1) (VED rates for motorcycles)—
|
|
(a)
|
in paragraph (a), for “£15” substitute “£16”,
|
|
(b)
|
in paragraph (b), for “£33” substitute “£35”,
|
|
(c)
|
in paragraph (c), for “£50” substitute “£53”, and
|
|
(d)
|
in paragraph (d), for “£70” substitute “£74”.
|
|
(6)
|
The amendments made by this Resolution have effect in relation to licences taken out on or after 1 April 2011.
|
|
|
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the
provisions of the Provisional Collection of Taxes Act 1968.
|
|
17. Vehicle excise duty (certain goods vehicles without road-friendly suspension)
|
|
|
(1)
|
Part 8 of Schedule 1 to the Vehicle Excise and Registration Act 1994 (rates for goods vehicles) is amended as follows.
|
|
|
(a)
|
paragraph 9(1) (rigid vehicles exceeding 3,500 kilograms revenue weight in case of which pollution requirements are not satisfied),
and
|
|
(b)
|
paragraph 9A(2) (rigid vehicles exceeding that weight in case of which pollution requirements are satisfied),
|
|
|
after “(3)” insert “and paragraph 11D”.
|
|
|
(a)
|
paragraph 11(1) (tractive units exceeding 3,500 kilograms revenue weight in case of which pollution requirements are not satisfied),
and
|
|
(b)
|
paragraph 11A(2) (tractive units exceeding that weight in case of which pollution requirements are satisfied),
|
|
|
for “paragraph 11C” substitute “paragraphs 11C and 11D”.
|
|
(4)
|
In paragraph 11C(2) (tractive units between 41,000 and 44,000 kilograms revenue weight, with 3 or more axles and used for
conveyance of semi-trailers with 3 or more axles and usable on public road in accordance with law immediately before 21 March
2000), for “The” substitute “Subject to paragraph 11D, the”.
|
|
(5)
|
After paragraph 11C insert—
|
|
“Certain vehicles without road-friendly suspension
|
11D (1)
|
This paragraph applies to goods vehicles which do not have road-friendly suspension.
|
|
(2)
|
A goods vehicle does not have road-friendly suspension if any driving axle of the vehicle has neither—
|
|
(a)
|
an air suspension (that is, a suspension system in which at least 75 per cent. of the spring effect is caused by an air spring),
nor
|
|
(b)
|
a suspension which is regarded as being equivalent to an air suspension for the purposes under Annex II of Council Directive
96/53/EC.
|
|
(3)
|
The annual rate of vehicle excise duty applicable to a rigid goods vehicle to which this paragraph applies and which has—
|
|
(a)
|
a revenue weight of 15,000 kilograms, and
|
|
|
|
(4)
|
The annual rate of vehicle excise duty applicable to a rigid goods vehicle to which this paragraph applies and which—
|
|
(a)
|
is a vehicle with respect to which the reduced pollution requirements are satisfied,
|
|
(b)
|
has a revenue weight of 21,000 kilograms, and
|
|
|
|
(5)
|
The annual rate of vehicle excise duty applicable to a rigid goods vehicle to which this paragraph applies and which—
|
|
(a)
|
is a vehicle with respect to which the reduced pollution requirements are satisfied,
|
|
(b)
|
has a revenue weight of not less than 23,000 kilograms but less than 26,000 kilograms, and
|
|
|
|
(6)
|
The annual rate of vehicle excise duty applicable to a rigid goods vehicle to which this paragraph applies and which—
|
|
(a)
|
is a vehicle with respect to which the reduced pollution requirements are satisfied,
|
|
(b)
|
has a revenue weight of 27,000 kilograms, and
|
|
(c)
|
has four or more axles,
|
|
|
(7)
|
The annual rate of vehicle excise duty applicable to a tractive unit to which this paragraph applies and which has two axles
and either—
|
|
(a)
|
has a revenue weight of 25,000 kilograms, or
|
|
(b)
|
is a vehicle with respect to which the reduced pollution requirements are satisfied and has a revenue weight exceeding 25,000
kilograms but less than 28,000 kilograms,
|
|
|
(8)
|
The annual rate of vehicle excise duty applicable to a tractive unit to which this paragraph applies and which—
|
|
(a)
|
has a revenue weight of 28,000 kilograms,
|
|
|
(c)
|
is to draw semi-trailers with two or more axles,
|
|
|
(9)
|
The annual rate of vehicle excise duty applicable to a tractive unit to which this paragraph applies and which—
|
|
(a)
|
is a vehicle with respect to which the reduced pollution requirements are satisfied,
|
|
(b)
|
has a revenue weight of 31,000 kilograms,
|
|
|
(d)
|
is to draw semi-trailers with two or more axles,
|
|
|
(10)
|
The annual rate of vehicle excise duty applicable to a tractive unit to which this paragraph applies and which—
|
|
(a)
|
is a vehicle with respect to which the reduced pollution requirements are satisfied,
|
|
(b)
|
has a revenue weight of 36,000 kilograms,
|
|
|
(d)
|
is to draw semi-trailers with two or more axles,
|
|
|
(11)
|
The annual rate of vehicle excise duty applicable to a vehicle to which paragraph 11C and this paragraph apply and which—
|
|
(a)
|
is a vehicle with respect to which the reduced pollution requirements are satisfied, and
|
|
(b)
|
has a revenue weight less than 44,000 kilograms,
|
|
|
(12)
|
This paragraph does not apply to a vehicle for which the annual rate of duty is determined under paragraph 9(2) or 11(2).”
|
|
(6)
|
The amendments made by this Resolution have effect in relation to licences taken out on or after 1 April 2011.
|
|
|
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the
provisions of the Provisional Collection of Taxes Act 1968.
|
|
18. Climate change levy (rates)
|
|
|
That provision may be made about the rates of climate change levy.
|
|