House of Commons Hansard Debates for 25 Mar 1991

15. Value added tax (penalty for serious misdeclaration)

Resolved,

That--

(1) In section 14(1) of the Finance Act 1985, for "30 per cent." there shall be substituted "20 per cent.".

(2) Subject to paragraph (3) below, this Resolution shall apply where a penalty is assessed on or after 20th March 1991 in relation to a prescribed accounting period beginning on or after 1st April 1990.

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(3) This Resolution shall not apply in the case of a supplementary assessment if the original assessment was made before 20th March 1991.

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.

16. Car tax (remission)

Resolved,

That provision may be made amending section 7 of the Car Tax Act 1983.

17. Duties of excise (registered excise dealers and shippers)

Resolved,

That provision may be made in relation to new classes or descriptions of revenue trader (to be known as registered excise dealers and shippers).

18. Income tax (charge and rates for 1991-92)

Resolved,

That--

(1) Income tax shall be charged for the year 1991-92, and (

(a) the basic rate shall be 25 per cent.,

(b) the basic rate limit shall be £23,700, and

(2) In accordance with paragraph (1)(b) above, section 1(4) of the Income and Corporation Taxes Act 1988 shall not apply for the year 1991-92.

(3) 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 before 18th May 1991.

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.

19. Income tax (married couple's allowance)

Resolved.

That--

(1) Section 257C(1) of the Income and Corporation Taxes Act 1988, so far as relating to section 257A(1) of that Act, shall not apply for the year 1991- 92.

(2) Section 257A(1) of that Act shall apply for the year 1991-92 as if the amount specified in it were "£1,720".

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.

20. Relief for interest (limit for

1991-92) Resolved,

That, for the year 1991-92, the qualifying maximum defined in section 367(5) of the Income and Corporation Taxes Act 1988 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.

21. Relief for interest (income tax at the higher rate)

Resolved,

That--

(1) At the end of section 353 of the Income and Corporation Taxes Acts 1988 there shall be added--

"(4) In computing for the purposes of excess liability the total income of a person for any year of assessment,

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no deduction shall be allowed in respect of any amount of interest which falls to be deducted or set off under subsection (1) above by virtue of section 355(1)(a), 356(1) or 365.

(5) In subsection (4) above, "excess liability" means the excess of liability to income tax over what it would be if all income tax were charged at the basic rate, to the exclusion of any higher rate." (2) In section 369 of that Act, in subsection (3), after the words "in computing his total income" there shall be inserted the words "(otherwise than for the purposes of excess liability)" ; and after that subsection there shall be inserted

"(3A) In computing for the purposes of excess liability the total income of a person for any year of assessment, no deduction shall be allowed in respect of any amount of relevant loan interest to which this section applies.

(3B) In this section "excess liability" means the excess of liability to income tax over what it would be if all income tax were charged at the basic rate, to the exclusion of any higher rate." (3) The amendment made by paragraph (1) above shall not apply in relation to interest which falls to be deducted or set off under section 353(1) of that Act by virtue of paragraph (a) of subsection (5) of section 354 of that Act in any case where

(a) the loan on which the interest is payable is the loan referred to in that paragraph as "the first-mentioned loan" ; and

(b) the loan referred to in paragraph (b) of that subsection as "the other loan" was made before 6th April 1991.

(4) the amendments made by paragraph (2) above shall not apply in relation to an amount of interest which is relevant loan interest (within the meaning of section 369 of that Act) by virtue of section 371 of that Act in any case where--

(a) the loan on which the interest is payable is the loan referred to in subsection (1) of that section as "the first loan"; and (

(b) the loan which is, for the purposes of that subsection, "the other loan" was made before 6th April 1991.

(5) Where the loan mentioned in sub-paragraph (b) of paragraph (3) above or, as the case may be, of paragraph (4) above was made on or after 6th April 1991, it shall be treated for the purposes of the paragraph in question as made before that date if it is proved by written evidence--

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(a) that the loan was made in pursuance of an offer made before that date and that the offer either was in writing or was evidenced by a note or memorandum made by the lender before that date, and (

(b) that the loan was used to defray money applied in pursuance of a binding contract entered into before that date.

(6) Paragraphs (1) to (5) above shall have effect in relation to payments of interest made on or after 6th of April 1991 (whenever falling due).

(7) 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 before 18th May 1991.

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.

22. Corporation tax(charge and rate for financial year 1991)

Resolved ,

That corporation tax shall be charged for the financial year 1991 at the rate of 33 per cent.

23. Corporation tax (small companies : 1991)

Resolved ,

That for the financial year 1991--

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

(b) the fraction mentioned in section 13(2) of the Income and Corporation Taxes Act 1988 shall be one fiftieth.

24. Benefits in kind (cars)

Resolved,

That--

(1) For the year 1991-92, Schedule 6 to the Income and Corporation Taxes Act 1988 shall have effect with the substitution for Part I 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 £2,050 £1,400

More than 1400 but not more than 2000 £2,650 £1,800

More than 2000 £4,250 £2,850

Table B--

Cars with an original market value up to £19,250 and not 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 £2,050 £1,400

£6,000 or more but less than £8,500 £2,650 £1,800

£8,500 or more but not more than £19,250 £4,250 £2,850

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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 £5,500 £3,700 More than £29,000 £8,900 £5,900

(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 before 18th May 1991.

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.

25. Benefits in kind (mobile telephones)

Resolved,

That charges to income tax may be imposed in respect of mobile telephones made available for use by reason of a person's employment.

26. Benefits in kind (beneficial loan arrangements)

Resolved,

That charges to income tax may be imposed in respect of loans made by reason of a person's employment.

27. Capital gains (rebasing)

Resolved,

That provision may be made amending Schedule 9 to the Finance Act 1988.

28. Capital gains tax (applicable rates)

Resolved,

That provision may be made restricting the deductions that may be allowed in determining the rate of capital gains tax applicable to capital gains.

29. Profit-related pay

Resolved,

That, in relation to profit-related pay paid by reference to profit periods beginning on or after 1st April 1991, section 171(1) of the Income and Corporation Taxes Act 1988 shall have effect with the substitution of "The whole" for "One half".

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.

30. Profit sharing schemes(maximum share appropriation)

Resolved,

That section 187(2) of the Income and Corporation Taxes Act 1988 shall have effect for the year 1991-92 as if in the definition of "relevant amount" for "not less than £2,000 and not more than £6,000" there were substituted "not less than £3,000 and not more than £8, 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.

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31. Retirement benefits schemes

Resolved,

That provision (including provision having retrospective effect) may be made about retirement benefits schemes.

32. Settlements

Resolved,

That charges to capital gains tax and corporation tax (including charges by reference to past gains) may be imposed by provisions about settlements.

33. Securities

Resolved,

That charges to income tax, capital gains tax and corporation tax may be imposed by provisions relating to securities.

34. Oil field abandonment costs (petroleum revenue tax and corporation tax)

Resolved,

That provision may be made about--

(a) the effect, for the purposes of petroleum revenue tax and corporation tax, of payments by the guarantor under contracts of guarantee relating to the liabilities of participators in an oil field for certain costs incurred in or related to the closing down of the field or any part of it ; and

(b) the division of certain expenditure between participators in an oil field where one or more of them defaults on his liabilities in respect of that expenditure ; and

(c) the treatment for the purposes of petroleum revenue tax and corporation tax of certain reimbursements of expenditure received by one participator from another ; and

(d) the apportionment of certain expenditure referable to an asset which is a qualifying asset for the purposes of the Oil Taxation Act 1983.

35. Oil licences

Resolved,

That provision may be made amending section 64(6)(c) of the Finance Act 1988.

36. Building societies

Resolved,

That provision (including provision having retrospective effect) may be made about building societies.

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37. Normal commercial loans

Resolved,

That provision may be made in relation to normal commercial loans.

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