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10. Value added tax (zero-rating : news services)

Resolved,

That, in relation to supplies made on or after 1st April 1989, Schedule 5 to the Value Added Tax Act 1983 shall have effect with the omission of Group 6.

This Resolution shall not authorise the making of amendments that would make value added tax chargeable at a rate other than either nil or the rate specified in section 9 of the Value Added Tax Act 1983. And it is hereby 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.-- [Mr. Lawson.]

11. Value added tax (zero-rating : protective boots and helmets)

Resolved,

That--

(1) In relation to supplies made on or after 1st April 1989, Group 17 of Schedule 5 to the Value Added Tax Act 1983 shall have effect with the amendments mentioned in paragraphs (2) and (3) of this Resolution.

(2) In item 2 there shall be inserted at the beginning the words "The supply to a person for use otherwise than by employees of his of".

(3) In Note (5) there shall be inserted at the end the words ", but, in the case of goods comprised in item 2, only if the goods are for use otherwise than by employees of the person to whom the services are supplied."

This Resolution shall not authorise the making of amendments that would make value added tax chargeable at a rate other than either nil or the rate specified in section 9 of the Value Added Tax Act 1983. And it is hereby 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.-- [Mr. Lawson.]

12. Value added tax (buildings and land : general)

Resolved,


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That the enactments relating to value added tax may be amended by provisions about buildings and land.

This Resolution shall not authorise the making of amendments that would make value added tax chargeable at a rate other than either nil or the rate specified in section 9 of the Value Added Tax Act 1983.-- [Mr. Lawson.]

13. Value added tax (self-supplies)

Resolved,

That provision may be made amending the Value Added Tax Act 1983 in relation to input tax on supplies which, under or by virtue of that Act, a person is treated as making to himself.-- [Mr. Lawson.]

14. Car tax (relief for vehicles leased to handicapped)

Resolved,

After section 5 of the Car Tax Act 1983 there shall be inserted, as from 1st April 1989, the following section

"Relief where vehicle leased to the handicapped.

5A.--(1) This section applies where

(a) a person registered under this Act sends out from any premises of his in the United Kingdom a chargeable vehicle made or imported by him, and,

(b) at the time when he sends it out he holds a certificate of the person to whom it is sent ("the lessor") that the lessor intends to supply the vehicle to another in such circumstances that the supply will be a zero- rated supply by virtue of item 12 of Group 14 (letting on hire of motor vehicles to the handicapped) of Schedule 5 to the Value Added Tax Act 1983.

(2) Tax on the vehicle

(a) shall not be payable by the registered person, but

(b) if, within the period of three years beginning with that time, the lessor supplies the vehicle in any circumstances other than those mentioned in subsection (1)(b) above, shall be payable by the lessor and shall become due and payable at the time of the supply. (3) In this section

"certificate" means a certificate in a form for the time being approved by the Commissioners, and

"supply" has the same meaning as in the Value Added Tax Act 1983." And it is hereby 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.-- [Mr. Lawson.]

15. Customs and excise duties, value added tax and car tax (diplomats, members of visiting forces, international organisations etc.)

Resolved,

That provision may be made, in connection with duties of customs and excise, value added tax and car tax, about--

(a) any person who, for the purposes of any provision of the Visiting Forces Act 1952 or the International Headquarters and Defence Organisations Act 1964 is--

(i) a member of a visiting force or of a civilian component of such a force or a dependant of such a member, or

(ii) a headquarters, a member of a headquarters or a dependant of such a member,

(b) any person enjoying any privileges or immunities under or by virtue of- -

(i) the Diplomatic Privileges Act 1964,

(ii) the Commonwealth Secretariat Act 1966,

(iii) the Consular Relations Act 1968,

(iv) the International Organisations Act 1968, or


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(v) the Overseas Development and Co- operation Act 1980, (

(c) any person enjoying any privileges or immunities similar to those enjoyed under or by virtue of those enactments.-- [Mr. Lawson.]

16. Income tax (charge and rates for 1989-90)

Resolved,

That income tax shall be charged for the year 1989-90, and (

(a) the basic rate of tax shall be 25 per cent, and

(b) the higher rate at which tax is charged in respect of so much of an individual's total income as exceeds the basic rate limit (£20, 700) shall be 40 per cent.

And it is hereby 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.-- [Mr. Lawson.]

17. Income tax (age allowance)

Resolved,

That--

(1) For the year 1989-90, section 257 of the Income and Corporation Taxes Act 1988 shall have effect with the following amendments-- (

(a) in subsection (3) (increased allowance for those aged 80 and over) for "80", wherever occurring, there shall be substituted "75", and

(b) in subsection (5) (age allowance withdrawn by two-thirds of amount by which income exceeds a specified limit) for "two-thirds" there shall be substituted "one half".

(2) This Resolution shall not require any change to be made in the amounts deductible or repayable under section 203 of the Income and Corporation Taxes Act 1988 (pay as you earn) before 18th May 1989. And it is hereby 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.-- [Mr. Lawson.]

18. Income tax (operative date of indexation for PAYE)

Resolved,

That, for the year 1989-90, sections 1(5) and 257(10) of the Income and Corporation Taxes Act 1988 (which specify the date from which indexed changes in the basic rate limit and in allowances are to be brought into account for the purposes of PAYE) shall have effect as if for the reference to 5th May there were substituted a reference to 18th May.

And it is hereby 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.-- [Mr. Lawson.]

19. Relief for interest (limit for 1989-90)

Resolved,

That, for the year 1989-90, the qualifying maximum defined in section 367(5) of the Income and Corporation Taxes Act 1988 (limit on relief for interest on certain loans) shall be £30,000.

And it is hereby 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.-- [Mr. Lawson.]

20. Corporation tax (charge and rate for financial year 1989)

Resolved,

That corporation tax shall be charged for the financial year 1989 at the rate of 35 per cent.-- [Mr. Lawson.]


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21. Corporation tax (small companies)

Resolved,

That for the financial year 1989--

(a) the small companies rate shall be 25 per cent.

(b) the fraction mentioned in section 13(2) of the Income and Corporation Taxes Act 1988 shall be one-fortieth.-- [Mr. Lawson.]


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22. Schedule E

Resolved,

That charges to income tax may be imposed by provisions relating to Schedule E.-- [Mr. Lawson.]

23. Benefits in kind (cars)

Resolved,

That--

(1) For the year 1989-90 and subsequent years of assessment, Schedule 6 to the Income and Corporation Taxes Act 1988 (taxation of directors and others in respect of cars) shall have effect with the substitution for Part I (tables of flat rate cash equivalents) of the following--


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Part I-- Tables of Flat Rate Cash Equivalents-- Table A-- Cars with an original market value up to £19,250 and having a cylinder capacity

Cylinder capacity of car in

cubic centimetres Age of car at end of relevant year

of assessment

Under 4 years 4 years or more

1400 or less £1,400 £950

More than 1400 but not more than 2000 £1,850 £1,250

More than 2000 £2,950 £1,950

Table B-- Cars with an original market value up to £19,250 and having a cylinder capacity

Original market value of car Age of car at end of relevant year of assessment

Under 4 years 4 years or more

Less than £6,000 £1,400 £950

£6,000 or more but less than £8,500 £1,850 £1,250

£8,500 or more but not more than £19,250 £2,950 £1,950

Table C-- Cars with an original market value of more than £19, 250

Original market value of car Age of car at end of relevant year of assessment

Under 4 years 4 years or more

More than £19,250 but not more than £29,000 £3,850 £2,600 More than £29,000 £6,150 £4,100

(2) This Resolution shall not require any change to be made in the amounts deductible or repayable under section 203 of the Income and Corporation Taxes Act 1988 (pay as you earn) before 18th May 1989. And it is hereby 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.-- [Mr. Lawson.]

24. Calculation of profits or gains

Resolved,

That provision may be made as to the calculation of profits or gains--

(a) for the purposes of Schedule D ;

(b) for the purposes of corporation tax.-- [Mr. Lawson.]


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25. Charities

Resolved,

That, for the year 1989-90 and subsequent years of assessment, section 202(7) of the Income and Corporation Taxes Act 1988 (which limits to £240 the payroll deductions attracting relief) shall have effect with the substitution of "£480" for "£240".


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And it is hereby 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.-- [Mr. Lawson.]

26. Profit-related pay

Resolved,

That further provision may be made about profit-related pay.-- [Mr. Lawson.]

27. Profit sharing schemes (increase of maximum share appropriation)

Resolved.

That section 187(2) of the Income and Corporation Taxes Act 1988 shall have effect for the year of assessment 1989-90 as if in the definition of "relevant amount" for the words "not less than £1,250 and not more than £5,000" there were substituted the words "not less than £2,000 and not more than £6,000".

And it is hereby 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.-- [Mr. Lawson.]

28. Retirement benefits schemes

Resolved,

That provision may be made about retirement benefits schemes.-- [Mr. Lawson.]

29. Personal pension schemes

Resolved,

That provision may be made about personal pension schemes.-- [Mr. Lawson.]

30. Collective investment schemes

Resolved,

That charges to income tax, corporation tax and capital gains tax may be imposed by provisions relating to collective investment schemes (including unit trusts) and investors in them.-- [Mr. Lawson.]

31. Offshore funds

Resolved,

That charges to income tax and corporation tax may be imposed by provisions relating to investors in offshore funds.-- [Mr. Lawson.]

32. Insurance companies and friendly societies

Resolved,

That provision may be made about the taxation of insurance companies and friendly societies, and about policies of life insurance, contracts for life annuities and capital redemption policies.-- [Mr. Lawson.]


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