House of Commons Hansard Debates for 3 Dec 1996 (pt 40)

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(1) For the year 1997-98 the amounts specified in the provisions mentioned in paragraph (2) below shall be taken to be as set out in that paragraph; and, accordingly, section 257C(1) of the Income and Corporation Taxes Act 1988, so far as it relates to the amounts so specified, shall not apply for the year 1997-98.
(2) In section 257 of that Act--
(a) the amount in subsection (1) shall be £4,045;
(b) the amount in subsection (2) shall be £5,220; and
(c) the amount in subsection (3) shall be £5,400.
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.

35. Blind person's allowance

(1) In section 265(1) of the Income and Corporation Taxes Act 1988, for "£1,250" there shall be substituted "£1,280".
(2) This Resolution shall apply for the year 1997-98.
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.

36. Relief for interest (limit for 1997-98)

That, for the year 1997-98, 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.

37. Corporation tax (charge and rate for financial year 1997)

That corporation tax shall be charged for the financial year 1997 at the rate of 33 per cent.

38. Corporation tax (small companies: 1997)

That, for the financial year 1997--

(a) the small companies' rate shall be 23 per cent.; and
(b) the fraction mentioned in section 13(2) of the Income and Corporation Taxes Act 1988 shall be one fortieth.

39. Wayleaves for electricity cables, telephone lines, etc.

That section 120 of the Income and Corporation Taxes Act 1988 shall be amended as follows.

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(1) In subsection (1)--
(a) at the beginning there shall be inserted "Subject to subsection (1A) below,"; and
(b) the words from "and, subject to" onwards shall be omitted.
(2) After subsection (1) there shall be inserted the following subsection--
"(1A) If--
(a) the profits and gains arising to any person for any chargeable period include both rent in respect of any such easement as is mentioned in subsection (1) above and amounts which are charged to tax under Schedule A, and
(b) some or all of the land to which the easement relates is included in the land by reference to which the amounts charged under Schedule A arise,
then, for that period, that rent shall be charged to tax under Schedule A, instead of being charged under Schedule D."
(3) Subsections (2) to (4) and, in subsection (5), paragraph (c) and the word "and" immediately preceding it shall cease to have effect.
(4) This Resolution has effect in relation to payments made on or after 6th April 1997.
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.

40. Profit-related pay

That provision may be made for phasing out the relief under Chapter III of Part V of the Income and Corporation Taxes Act 1988.

41. Special treatment for certain company distributions

That provision (including provision having retrospective effect) may be made for distributions of a company to be treated--

(a) as if they were foreign income dividends; and
(b) in cases where they are made to trustees, as if they were income to which section 686 of the Income and Corporation Taxes Act 1988 applies.

42. Distributions to dealers

That provision may be made amending section 95 of the Income and Corporation Taxes Act 1988.

43. Distributions of exempt funds

That provision (including provision having retrospective effect) may be made amending section 236 of the Income and Corporation Taxes Act 1988.

44. Foreign income dividends (unauthorised unit trusts)

That provision may be made amending section 246D of the Income and Corporation Taxes Act 1988.

45. Tax avoidance (meaning of "tax advantage")

That provision (including provision having retrospective effect) may be made amending section 709 of the Income and Corporation Taxes Act 1988.

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46. Stock lending and manufactured payments

That provision may be made for the purposes of income tax, corporation tax and capital gains tax about stock lending arrangements and manufactured payments.

47. Loan relationships (transitional provisions etc.)

That provision (including provision having retrospective effect) may be made amending section 90 of, and Schedule 15 to, the Finance Act 1996.

48. Payments under life insurance policies

That provision (including provision having retrospective effect) may be made about the treatment for the purposes of enactments relating to income tax and corporation tax of sums paid or payable under life insurance policies.

49. Transfer of assets abroad

That provision may be made amending section 739 of the Income and Corporation Taxes Act 1988.

50. Leasing of assets (finance leases and loans)

That provision may be made for the purposes of income tax and corporation tax in relation to arrangements which--

(a) are or have been entered into by companies or other persons, and
(b) are of such a kind as, in the case of companies incorporated in any part of the United Kingdom, falls for the purposes of accounts of such companies to be treated in accordance with normal accountancy practice as finance leases or loans.

51. Capital allowances

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

52. Expenditure on mineral exploration and access

That provision may be made about the deduction of expenditure incurred on mineral exploration and access (as defined in section 121(1) of the Capital Allowances Act 1990) in computing the profits or gains of a trade.

53. Chargeable gains (roll-over relief on re-investment)

That provision may be made about roll-over relief under Chapter IA of Part V of the Taxation of Chargeable Gains Act 1992.

54. Chargeable gains (conversions etc. of securities)

That provision (including provision having retrospective effect) may be made for the purposes of the Taxation of Chargeable Gains Act 1992 about--

(a) the conversion and exchange of securities;
(b) the circumstances in which such conversions or exchanges are to be deemed to take place; and
(c) the rights which are to be deemed to be securities of a company.

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55. Double taxation relief (underlying tax)

That provision may be made restricting the extent to which underlying tax may be taken into account, in accordance with Part XVIII of the Income and Corporation Taxes Act 1988, in determining the credits allowable against United Kingdom taxes.

56. Double taxation relief (loan relationships)

That provision may be made amending section 807A of the Income and Corporation Taxes Act 1988.

57. Stamp duty

That provision may be made about stamp duty.

58. Stamp duty reserve tax

That provision may be made about stamp duty reserve tax.

59. Petroleum revenue tax (allowable non-field expenditure)

That provision (including provision having retrospective effect) may be made amending section 113 of the Finance Act 1984.

60. Relief from tax (incidental and consequential charges)

That it is expedient to authorise any incidental or consequential charges to any duty or tax (including charges having retrospective effect) which may arise from provisions designed in general to afford relief from taxation.

PROCEDURE (FUTURE TAXATION)

That, notwithstanding anything to the contrary in the practice of the House relating to the matters which may be included in Finance Bills, any Finance Bill of the present Session may contain provision taking effect in a future year for amending section 198 of the Income and Corporation Taxes Act 1988.

FINANCE (MONEY)

Queen's Recommendation having been signified--

That, for the purposes of any Act of the present Session relating to finance, it is expedient to authorise the payment out of money provided by Parliament of sums payable by the Secretary of State by virtue of provisions of that Act relating to vehicle excise and registration.

Bill ordered to be brought in upon the foregoing resolutions: And that the Chairman of Ways and Means, Mr. Chancellor of the Exchequer, Mr. Secretary Heseltine, Mr. Secretary Howard, Mr. Secretary Lang, Mr. Secretary Gummer, Mr. Secretary Lilley, Mr. Secretary Dorrell, Mr. William Waldegrave, Mr. Phillip Oppenheim, Mrs. Angela Knight and Mr. Michael Jack do prepare and bring it in.