---

(a) subsection (1A) above has effect in the case of any loan ( the first loan') so that the condition specified in subsection (1)(a) above is treated in relation to any person as fulfilled with respect to any land, caravan or house-boat, and

(b) there is another loan raised by the borrower to defray money to be applied as mentioned in section 354(1) with a view to the use of any other land, caravan or house-boat as the borrower's only or main residence,

interest on the other loan shall be treated as eligible for relief to the same extent (if any) as if no interest were payable on the first loan."

(2) In subsection (2) of that section, after "subsection (1)" there shall be inserted "or (1A)".

(3) In section 365 of that Act, after subsection (1) there shall be inserted the following subsections--

"(1A

(Where, in the case of any loan--)

(a

(the condition specified in subsection (1)(d) above would not (apart from this subsection) be fulfilled

---

Column 730

with respect to any land by reason of its having ceased at any time to be used by a particular person as his only or main residence ; and)

(b

(the intention at that time of the person to whom the loan was made, or of each of the annuitants owning an estate or interest in that land, was to take steps, before the end of the period of 12 months after the day on which it ceased to be so used, with a view to the disposal of his estate or interest,)

that condition shall be treated in relation to interest on that loan as continuing to be fulfilled with respect to the land from that time until the end of that period of (if sooner) the abandonment by that person or any of those annuitants of his intention to dispose of his estate or interest.

(1B) If it appears to the Board reasonable to do so, having regard to all the circumstances of a particular case, they may direct that in relation to that case subsection (1A) above shall have effect as if for the reference to 12 months there were substituted a reference to such longer period as meets the circumstances of that case." (4) In consequence of paragraphs (1) to (3) of this Resolution, that Act shall have effect with the following consequential amendments--

(a) in section 354(1), for "to (6)" there shall be substituted "to (4)" ;

(b) sections 354(5) and (6), 356D(9), 357(4) and 371 shall cease to have effect ;

(c) in section 370(1), for "371" there shall be substituted "372" ;

(d) in section 370(6), after paragraph (b) there shall be inserted--

"and section 355(1A) shall have effect as if after the word used' in paragraph (a) there were inserted the words wholly or to a substantial extent'." ;

(e) in section 370(7), after paragraph (a) there shall be inserted the following paragraph--

"aa subsections (1A) and (1B) of that section shall have effect as if--

(i) after the word used' in paragraph (a) of subsection (1A) there were inserted the words wholly or partly' ;

(ii) for the words subsection (1)(a)', wherever they occur, there were substituted the words subsection (1)' ;

(iii) for the words land, caravan or house-boat', wherever they occur without being immediately preceded by the word other', there were substituted the word dwelling' ; and

(iv) for the words other land, caravan or house-boat', wherever they occur, there were substituted the words land, caravan or house-boat' ; and".

(5) This Resolution shall have effect in relation to payments of interest made on or after 16th March 1993 (whenever falling due). (6) Where this Resolution applies by virtue of paragraph (5) of this Resolution in a case where the condition specified in section 355(1)(a) or 365(1)(d) of the Income and Corporation Taxes Act 1988 ceased to be fulfilled before 16th March 1993, the power of the Commissioners of Inland Revenue by virtue of this Resolution to extend the period specified in section 355(1A) or 365(1A) of that Act--

(a) shall be exercisable in any case in relation to that period irrespective of when that period began in that case ; and (

(b) in so far as it is exercisable in relation to the period specified in section 355(1A) of that Act where an equivalent period has been extended in any case under section 354(6) or 371(2) or (3) of that Act, shall be deemed to have been exercised so that

---

Column 731

(subject to any further extensions) the period in question ends when that equivalent period would have ended.

(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.

41. Tax credits etc.

Resolved ,

That provision may be made as to tax credits in respect of distributions and as to the rate at which other amounts are treated as having borne tax.

42. Foreign dividends

Resolved ,

That, in relation to transactions effected on or after 6th April 1993, Schedule 3 to the Income and Corporation Taxes Act 1988 shall be amended as follows--

(1) In sub-paragraph (1) of paragraph 6A, for "basic rate" there shall be substituted "applicable rate".

(2) After sub-paragraph (2) of that paragraph there shall be inserted the following sub-paragraph--

"(2A) Payments of tax made on any person's behalf under this paragraph shall be treated as made for the purpose only of being applied in the discharge of that person's liability to tax charged (otherwise than by virtue of this paragraph) on the dividends or proceeds to which the payments relate."

(3) After sub-paragraph (3) of that paragraph there shall be inserted the following sub-paragraph--

"(4) For the purposes of sub-paragraph (1) above the applicable rate shall be--

(a) the lower rate, in the case of a foreign dividend which is neither interest nor any other annual payment which is made otherwise than by way of dividend ; and

(b) the basic rate in any other case."

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.

43. Chargeable gains (annual exempt amount)

Resolved,

That provision may be made as to the operation of section 3 of the Taxation of Chargeable Gains Act 1992 for the year 1993-94.

44. Chargeable gains (personal equity plans)

Resolved,

That provision may be made for the purposes of the Taxation of Chargeable Gains Act 1992 in relation to persons who subscribe to a personal equity plan by transferring or renouncing shares or rights to shares.

45. Chargeable gains (debentures issued in exchange)

Resolved,

That provision may be made, for the purposes of the taxation of chargeable gains, in relation to debentures issued or treated as issued by one company in exchange for shares in or debentures of another company.

46. Chargeable gains (de-grouping)

Resolved,

That provision may be made amending section 179 of the Taxation of Chargeable Gains Act 1992.

---

Column 732

47. Chargeable gains (insurance : transfers of business)

Resolved,

That provision (including provision having retrospective effect) may be made amending section 211 of the Taxation of Chargeable Gains Act 1992.

48. Chargeable gains (unit trusts and offshore funds of insurance companies)

Resolved,

That provision (including provision having retrospect effect) may be made amending the transitional provision made in connection with sections 212 and 213 of the Taxation of Chargeable Gains Act 1992.

49. Chargeable gains (restriction on set off of pre-entry losses)

Resolved,

That provision may be made for restricting the allowable losses that may be taken into account in computing the total profits of a company which is or has been a member of a group of companies.

50. Changes in the ownership of companies

Resolved, That section 245 of the Income and Corporation Taxes Act 1988 may be amended.

51. Exchange gains and losses

Resolved,

That charges (including charges by reference to past events) may be imposed by--

(a) provisions about gains and losses accruing from fluctuations in exchange rates ;

(b) provisions connected with provisions mentioned in paragraph (a) above.

52. Profits or losses (currency)

Resolved, That provision may be made about currencies to be used in calculating profits and losses for corporation tax purposes.

53. Non-residents

Resolved,

That provision may be made about trustees, companies and other persons not resident in the United Kingdom.

54. Overseas life insurance companies

Resolved,

That provision (including provision having retrospective effect) may be made in relation to overseas life insurance companies.

55. Lloyd's underwriters

Resolved,

That provision (including provision having retrospective effect) may be made about Lloyd's underwriters.

56. Authorised Lloyd's underwriting agents

Resolved,

That provision may be made about authorised Lloyd's underwriting agents.

---

Column 733

57. Employers' pension contributions

Resolved,

That provision may be made in relation to contributions by employers under approved retirement benefit schemes.

58. Approved share option schemes

Resolved,

That provision may be made about approved share option schemes. 59. Business expansion scheme (restriction on relief)-- Resolved,

That provision may be made for restricting entitlement to relief under Chapter III of Part VII of the Income and Corporation Taxes Act 1988.

60. Application of Income Tax Acts to public offices etc.-- Resolved,

That provision may be made amending section 829 of the Income and Corporation Taxes Act 1988.

61. Capital allowances-- Resolved,

That provision (including provision having retrospective effect) may be made amending the Capital Allowances Act 1990.

62. Petroleum revenue tax-- Motion made, and Question put :-- That provision may be made reducing the rate of petroleum revenue tax to 50 per cent. and making other modifications of that tax. The House divided : Ayes 304, Noes 40.

Division No. 197] [10.28 pm

AYES

Adley, Robert

Ainsworth, Peter (East Surrey)

Aitken, Jonathan

Alexander, Richard

Allason, Rupert (Torbay)

Amess, David

Ancram, Michael

Arbuthnot, James

Arnold, Jacques (Gravesham)

Arnold, Sir Thomas (Hazel Grv)

Ashby, David

Atkinson, Peter (Hexham)

Baker, Rt Hon K. (Mole Valley)

Baker, Nicholas (Dorset North)

Baldry, Tony

Banks, Matthew (Southport)

Banks, Robert (Harrogate)

Bates, Michael

Batiste, Spencer

Beggs, Roy

Bellingham, Henry

Bendall, Vivian

Beresford, Sir Paul

Biffen, Rt Hon John

Blackburn, Dr John G.

Bonsor, Sir Nicholas

Booth, Hartley

Boswell, Tim

Bottomley, Peter (Eltham)

Bottomley, Rt Hon Virginia

Bowden, Andrew

Bowis, John

Boyson, Rt Hon Sir Rhodes

Brandreth, Gyles

Brazier, Julian

Bright, Graham

Brooke, Rt Hon Peter

Brown, M. (Brigg & Cl'thorpes)

Browning, Mrs. Angela

Bruce, Ian (S Dorset)

Burns, Simon

Burt, Alistair

Butterfill, John

Carlisle, John (Luton North)

Carlisle, Kenneth (Lincoln)

Carrington, Matthew

Carttiss, Michael

Cash, William

Churchill, Mr

Clark, Dr Michael (Rochford)

Clarke, Rt Hon Kenneth (Ruclif)

Clifton-Brown, Geoffrey

Coe, Sebastian

Colvin, Michael

Congdon, David

Conway, Derek

Coombs, Anthony (Wyre For'st)

Coombs, Simon (Swindon)

Cope, Rt Hon Sir John

Couchman, James

Cran, James

Currie, Mrs Edwina (S D'by'ire)

Curry, David (Skipton & Ripon)

Davis, David (Boothferry)

Day, Stephen

Deva, Nirj Joseph

Devlin, Tim

Dickens, Geoffrey

Dorrell, Stephen

Douglas-Hamilton, Lord James

Dover, Den

Duncan, Alan

Duncan-Smith, Iain

Dunn, Bob

---