| No. 25 |
THURSDAY 28TH NOVEMBER
1996 |
717 |
|
ORDER PAPER |
|
* Indicates a Question for Oral Answer
Questions marked thus [R] indicate that a relevant
registered interest has been declared
QUESTIONS FOR ORAL ANSWER
Questions to the Prime Minister will start at
3.15 p.m.
| *1 |
Mr Tony Banks (Newham North
West) To ask Mr Chancellor of the
Exchequer, if he will give details of seizures made by HM Customs
and Excise of endangered species and products during the last 12
months. |
| 4856 |
| *2 |
Mr David Congdon (Croydon North
East) To ask Mr Chancellor of the
Exchequer, what assessment he has made of the factors, with
special reference to fiscal and monetary factors, which have
contributed to the United Kingdom's fall in unemployment since
its peak. |
| 4857 |
| *3 |
Mr Barry Jones (Alyn and
Deeside) To ask Mr Chancellor of the
Exchequer, if he will make a statement about his fiscal proposals
to assist United Kingdom manufacturing industry. |
| 4858 |
| *4 |
Mr John Marshall (Hendon
South) To ask Mr Chancellor of the
Exchequer, what representations he has received about the 20p
income tax band. |
| 4859 |
| *5 |
Mr Douglas French
(Gloucester) To ask Mr Chancellor of
the Exchequer, what discussions he has had with building
societies about the future of mutual status. |
| 4860 |
| *6 |
Mr Nicholas Winterton
(Macclesfield) To ask Mr Chancellor
of the Exchequer, if he will make a statement on capital
allowances. |
| 4861 |
| *7 |
Mr John Whittingdale (South Colchester and
Maldon) To ask Mr Chancellor of the
Exchequer, what assessment he has made of the effects on the
public finances of the Government's privatisation
programme. |
| 4862 |
| *8 |
Mr Eric Martlew (Carlisle) To
ask Mr Chancellor of the Exchequer, how much tax a typical family
will pay in the next financial year; and what was the figure in
1992. |
| 4863 |
| *9 |
Mr Denis MacShane
(Rotherham) To ask Mr Chancellor of
the Exchequer, what estimate he has made of the impact of the
rise of sterling since January on British exports. |
| 4864 |
| *10 |
Mr Harry Barnes (North East
Derbyshire) To ask Mr Chancellor of the
Exchequer, if he will arrange for (a) mid-term population
estimates and (b) electoral registration figures to be produced
by parliamentary constituencies as well as district council
area. |
| 4865 |
| *11 |
Mr Harry Greenway (Ealing
North) To ask Mr Chancellor of the
Exchequer, if he will make a statement on the number of people
currently in work. |
| 4866 |
| *12 |
Mr Nigel Evans (Ribble
Valley) To ask Mr Chancellor of the
Exchequer, what representations he has received concerning his
policies to encourage the growth in the number of self-employed
people in the United Kingdom. |
| 4867 |
| *13 |
Mr Gordon Prentice (Pendle) To
ask Mr Chancellor of the Exchequer, what steps he is taking to
improve the accuracy of his economic forecasting. |
| 4869 |
| *14 |
Mr Roger Berry (Kingswood) To
ask Mr Chancellor of the Exchequer, what representations have
been made to him on growth rates in the United Kingdom
economy. |
| 4870 |
| *15 |
Dr Tony Wright (Cannock and
Burntwood) To ask Mr Chancellor of the
Exchequer, what plans he has for public spending as a proportion
of GDP over the planning period. |
| 4871 |
| *16 |
Maria Fyfe (Glasgow,
Maryhill) To ask Mr Chancellor of the
Exchequer, if he will estimate the income from VAT on domestic
fuel for 1996--97. |
| 4872 |
| *17 |
Mr Paddy Tipping (Sherwood) To
ask Mr Chancellor of the Exchequer, when he proposes to introduce
further legislation about building societies. |
| 4873 |
| *18 |
Ms Joyce Quin (Gateshead
East) To ask Mr Chancellor of the
Exchequer, what effect his recent budget will have on investment
in the United Kingdom. |
| 4874 |
| *19 |
Sir Roger Moate (Faversham) To
ask Mr Chancellor of the Exchequer, if he will make a statement
on the progress of the Private Finance Initiative. |
| 4875 |
| *20 |
Mr Robert N. Wareing (Liverpool, West
Derby) To ask Mr Chancellor of the
Exchequer, if he will make a statement on future interest rates
policy. |
| 4876 |
| *21 |
Jane Kennedy (Liverpool,
Broadgreen) To ask Mr Chancellor of the
Exchequer, if he will make a statement on fiscal incentives to
encourage capital investment in (a) the United Kingdom and (b)
other OECD countries, and on the levels achieved in each case in
the last three financial years. |
| 4877 |
| *22 |
Mr Alan Duncan (Rutland and
Melton) To ask Mr Chancellor of the
Exchequer, what assessment he has made of the impact of the
measures proposed in his Budget statement on the United Kingdom's
competitive position within the European Union. |
| 4878 |
| *23 |
Mr Hugh Dykes (Harrow East) To
ask Mr Chancellor of the Exchequer, what assessment he has made
of the public response to the direct taxation changes in his
Budget proposals announced on 26th November. |
| 4880 |
| *24 |
Mr Kevin Hughes (Doncaster
North) To ask Mr Chancellor of the
Exchequer, if he will make a statement on the amount of VAT
collected in the last year for which figures are
available. |
| 4881 |
| *25 |
Mr Anthony Steen (South
Hams) To ask Mr Chancellor of the
Exchequer, if he will make a statement on tobacco duty.
| | [R]4882 |
| *26 |
Mr James Pawsey (Rugby and
Kenilworth) To ask Mr Chancellor of the
Exchequer, if he will make a statement on the current interest
rate in (a) the United Kingdom and (b) in France, Germany and the
United States. |
| 4884 |
| *27 |
Sir David Knox (Staffordshire
Moorlands) To ask Mr Chancellor of the
Exchequer, if he will make a statement about the effect on the
economy of fluctuating exchange rates. |
| 4885 |
Questions to the Prime Minister will start at
3.15 p.m.
| *Q1 |
Mr Phil Gallie (Ayr): To ask
the Prime Minister, if he will list his official engagements for
Thursday 28th November. |
| 4886 |
| *Q2 |
Mr Eric Martlew (Carlisle): To
ask the Prime Minister, if he will list his official engagements
for Thursday 28th November. |
| 4887 |
| *Q3 |
Sir Irvine Patnick (Sheffield,
Hallam): To ask the Prime Minister, if he
will list his official engagements for Thursday 28th
November. |
| 4888 |
| *Q4 |
Mr Harry Barnes (North East
Derbyshire): To ask the Prime Minister,
if he will list his official engagements for Thursday 28th
November. |
| 4889 |
| *Q5 |
Mr Nigel Evans (Ribble
Valley): To ask the Prime Minister, if he
will list his official engagements for Thursday 28th
November. |
| 4890 |
| *Q6 |
Dr Ian Twinn (Edmonton): To ask
the Prime Minister, if he will list his official engagements for
Thursday 28th November. |
| 4891 |
| *Q7 |
Mr Greg Pope (Hyndburn): To ask
the Prime Minister, if he will list his official engagements for
Thursday 28th November. |
| 4892 |
| *Q8 |
Mr Hartley Booth (Finchley): To
ask the Prime Minister, if he will list his official engagements
for Thursday 28th November. |
| 4893 |
| *Q9 |
Mr Jacques Arnold
(Gravesham): To ask the Prime
Minister, if he will list his official engagements for Thursday
28th November. |
| 4894 |
| *Q10 |
Mr Paul Flynn (Newport
West): To ask the Prime Minister, if he
will list his official engagements for Thursday 28th
November. |
| 4895 |
ORDERS OF THE DAY AND NOTICES OF MOTIONS
Those marked thus * are Government Orders of the Day
| *1 |
WAYS AND
MEANS: Adjourned Debate on Question [26th
November].
1. Amendment of the law
A Motion was made and the Questions
being proposed, 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; but 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 varying any rate at which
that tax is at any time chargeable; or
(d) for any relief, other than
a relief which--
(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)
As Amendments to Mr Chancellor
of the Exchequer's proposed Motion (Amendment of the
Law):
Mr Alex Salmond
Mrs Margaret Ewing
Mr Andrew Welsh
Roseanna Cunningham
(c)
Line 4, after 'tax', insert 'other than
in respect of value added tax on fuel and power for domestic or
charity use.'
Mr Alan Simpson
Mr Matthew Taylor
Mr Cynog Dafis
Mrs Margaret Ewing
Mr Jim Cousins
Mr Chris Mullin
| | Jean
Corston |
Mr Ken Eastham |
Mr Alan Howarth |
| | Mr John Hutton |
Mr Brian Sedgemore |
Mr Stephen Timms |
| | Ann Clwyd |
Mr Denzil Davies |
Mr Ken Livingstone |
| | Mr Jim Callaghan |
Mr Terry Lewis |
Mr John Maxton |
| | Mr John Home
Robertson |
Mrs Gwyneth Dunwoody |
Mr John Cummings |
| | Mr Bill Olner |
Mr Paddy Tipping |
Mr Richard Burden |
| | Lynne Jones |
Mr Michael Connarty |
Mr Michael J. Martin |
| | Mr John Heppell |
Mr Andrew Faulds |
Mr Ken Purchase |
| | Dr Lewis Moonie |
Mr Tony Benn |
Mr Dennis Skinner |
| | Mr Harry Cohen |
Mr Llew Smith |
Alice Mahon |
| | Mr John
Austin-Walker |
Mr Jeremy Corbyn |
Mr Michael Clapham |
| | Mr John McAllion |
Mr Dennis Canavan |
Mr Jimmy Wray |
| | Mr Jimmy Hood |
Mr Terry Rooney |
Mr John McWilliam |
| | Mildred Gordon |
Mr Bernie Grant |
Mr Neil Gerrard |
| | Mr Robert Parry |
Mr Robert Litherland |
Mr Barry Jones |
| | Mr Alan W. Williams |
Mr Ken Maginnis |
Mr Peter L. Pike |
| | (Carmarthen) |
Mr Calum Macdonald |
Mr Ray Powell |
| | Mr Edward O'Hara |
Mr Eric Clarke |
Mr Alan Meale |
| | Mr Andrew F.
Bennett |
Mr Don Dixon |
Ms Angela Eagle |
| | Joan Lestor |
Mr Colin Pickthall |
Margaret Hodge |
| | Mr Gordon Prentice |
Mr Ian Davidson |
Mr David Jamieson |
| | Dr John Cunnningham |
Mr Brian H. Donohoe |
Dr Norman A. Godman |
| | Mr Dafydd
Wigley |
(a)
Line
7, after "chargeable", insert
"except that the rate of value added tax shall be varied on such
goods and on such terms as is specified below that is to
say:--
(i) on certain energy saving
materials namely products manufactured solely for the purpose
of:
(a) cavity wall
insulation;
(c) under-floor
insulation;
(d) insulating hot water
tanks;
(e) insulating pipes and
other plumbing fittings;
(g) controlling domestic
heating systems;
(h) external and internal
wall cladding; and
(i) providing low emissivity
glazing.
(ii) Any such variants shall
provide for value added tax on the above items ot be charged at
no more than 8 per cent.".
Mr Alan Simpson
Mr Matthew Taylor
Mr Cynog Dafis
Mrs Margaret Ewing
Mr Jim Cousins
Mr Chris Mullin
| | Jean
Corston |
Mr Ken Eastham |
Mr Alan Howarth |
| | Mr John Hutton |
Mr Brian Sedgemore |
Mr Stephen Timms |
| | Ann Clwyd |
Mr Denzil Davies |
Mr Ken Livingstone |
| | Mr Jim Callaghan |
Mr Terry Lewis |
Mr John Maxton |
| | Mr John Home
Robertson |
Mrs Gwyneth Dunwoody |
Mr John Cummings |
| | Mr Bill Olner |
Mr Paddy Tipping |
Mr Richard Burden |
| | Lynne Jones |
Mr Michael Connarty |
Mr Michael J. Martin |
| | Mr John Heppell |
Mr Andrew Faulds |
Mr Ken Purchase |
| | Dr Lewis Moonie |
Mr Tony Benn |
Mr Dennis Skinner |
| | Mr Harry Cohen |
Mr Llew Smith |
Alice Mahon |
| | Mr John
Austin-Walker |
Mr Jeremy Corbyn |
Mr Michael Clapham |
| | Mr John McAllion |
Mr Dennis Canavan |
Mr Jimmy Wray |
| | Mr Jimmy Hood |
Mr Terry Rooney |
Mr John McWilliam |
| | Mildred Gordon |
Mr Bernie Grant |
Mr Neil Gerrard |
| | Mr Robert Parry |
Mr Robert Litherland |
Mr Barry Jones |
| | Mr Alan W. Williams |
Mr Ken Maginnis |
Mr Peter L. Pike |
| | (Carmarthen) |
Mr Calum Macdonald |
Mr Ray Powell |
| | Mr Edward O'Hara |
Mr Eric Clarke |
Mr Alan Meale |
| | Mr Andrew F.
Bennett |
Mr Don Dixon |
Ms Angela Eagle |
| | Joan Lestor |
Mr Colin Pickthall |
Margaret Hodge |
| | Mr Gordon Prentice |
Mr Ian Davidson |
Mr David Jamieson |
| | Dr John Cunnningham |
Mr Brian H. Donohoe |
Dr Norman A. Godman |
| | Mr Dafydd
Wigley |
(b)
Line
10 at end add "except that relief
shall be given on such goods and on such terms as is specified
below that is to say:--
(iii) on certain energy saving
materials namely products manufactured solely for the purpose
of:
(a) cavity wall
insulation;
(c) under-floor
insulation;
(d) insulating hot water
tanks;
(e) insulating pipes and
other plumbing fittings;
(g) controlling domestic
heating systems;
(h) external and internal
wall cladding; and
(i) providing low emissivity
glazing.
(iv) Any such relief shall
provide for the relief of at least nine and one half per cent.
on the VAT that would otherwise be chargeable.".
The remaining Motions in this
item, numbered 2 to 60, and those relating to Procedure and
Finance [Money] are to be moved immediately after the decision
on the preceeding Motion. They will be decided forthwith,
pursuant to Standing Order No. 50(3).
2. Spirits, and wines of equivalent strength (rates of
duty)
(1) In section 5 of the Alcoholic
Liquor Duties Act 1979, for "£19.78" there shall be substituted
"£18.99".
(2) In Part II of the Table of rates
of duty in Schedule 1 to that Act, for "£19.78" there shall be
substituted "£18.99".
(3) This Resolution shall have effect
as from 6 o'clock in the evening of 26th November 1996.
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.
3. Wine and made-wine (rates of duty on lower
strengths)
(1) For Part I of the Table of rates
of duty in Schedule 1 to the Alcoholic Liquor Duties Act 1979
there shall be substituted--
Part I
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. | 43.28 |
| Wine or made-wine of a strength exceeding 4
per cent. but not exceeding 5.5 per cent. | 59.51 |
| Wine or made-wine of a strength exceeding 5.5
per cent. but not exceeding 15 per cent. and not being
sparkling | 140.44 |
| Sparkling wine or sparkling made-wine of a
strength exceeding 5.5 per cent. but less than 8.5 per
cent. | 195.63 |
| 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. | 200.64 |
| Wine or made-wine of a strength exceeding 15
per cent. but not exceeding 22 per cent. | 187.24 |
(2) This Resolution shall come into
force on 1st January 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.
4. Duty on sparkling cider
(1) In subsection (1A) of section 62
of the Alcoholic Liquor Duties Act 1979--
(a) in paragraph (a) after
"exceeding 7.5 per cent." there shall be inserted "which is not
sparkling cider"; and
(b) immediately before the word
"and" at the end of that paragraph there shall be inserted the
following paragraph--
"(aa) £36.45 per hectolitre
in the case of sparkling cider of a strength exceeding 5.5 per
cent.;".
(2) After subsection (6) of that
section there shall be inserted the following subsection--
"(7) References in this section
to making cider shall be construed as including references to
producing sparkling cider by rendering cider sparkling; and
references in this section to cider made in the United Kingdom,
to makers of cider and to making cider for sale shall be
construed accordingly."
(3) After that section there shall
be inserted the following section--
"Meaning of 'sparkling' etc. in section
62.
62A.-(1) This section applies for
the purposes of section 62 above.
(2) Cider which is for the time
being in a closed bottle is sparkling if, due to the presence of
carbon dioxide, the pressure in the bottle, measured at a
temperature of 20 degrees C, is not less than 3 bars in excess
of atmospheric pressure.
(3) Cider which is for the time
being in a closed bottle is sparkling regardless of the pressure
in the bottle if the bottle has a mushroom-shaped stopper
(whether solid or hollow) held in place by a tie or
fastening.
(4) Cider which is not for the
time being in a closed container is sparkling if it has
characteristics similar to those of cider which has been removed
from a closed bottle and which, before removal, fell within
subsection (2) above.
(5) Cider shall be regarded as
having been rendered sparkling if, as a result of aeration,
fermentation or any other process, it either--
(a) falls within subsection
(2) above; or
(b) takes on characteristics
similar to those of cider which has been removed from a closed
bottle and which, before removal, fell within subsection (2)
above.
(6) Cider which has not
previously been rendered sparkling by virtue of subsection (5)
above shall be regarded as having been rendered sparkling if it
is transferred into a closed bottle which has a mushroom-shaped
stopper (whether solid or hollow) held in place by a tie or
fastening.
(7) Cider which is in a closed
bottle and has not previously been rendered sparkling by virtue
of subsection (5) or (6) above shall be regarded as having been
rendered sparkling if the stopper of its bottle is exchanged for
a stopper of a kind mentioned in subsection (6) above."
(4) In section 64 of that Act, after
subsection (1) there shall be inserted the following
subsection--
"(1A) In subsection (1) above the
references to a maker of cider include references to any person
who is taken for the purposes of section 62 above to be a maker
of cider."
(5) This Resolution shall come into
force on 1st January 1997.
(6) Any order or regulations made
under section 62 or 64 of the Alcoholic Liquor Duties Act 1979
before 1st January 1997 shall have effect on and after that date
(but only if and for so long as the order or regulations would
be in force apart from this paragraph) as if the amendments made
to that Act by this Resolution had been made before the making
of the order or regulations.
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.
5. Cider labelled as strong cider
(1) After section 62A of the
Alcoholic Liquor Duties Act 1979 there shall be inserted the
following section--
"Cider labelled as strong
cider.
62B.-(1) For the purposes of this
Act, any liquor which would apart from this section be standard
cider and which--
(a) is in an up-labelled
container, or
(b) has at any time after
31st December 1996 when it was in the United Kingdom been in an
up-labelled container,
shall be deemed to be strong cider, and not standard
cider.
(2) Accordingly, references in
this Act to making cider include references to--
(a) putting standard cider
in an up-labelled container; or
(b) causing a container in
which there is standard cider to be up-labelled.
(3) Where, by virtue of this
section, any duty is charged under section 62 above on any cider,
a rebate shall be allowed in respect of the amount of any duty
charged on that cider under that section otherwise than by virtue
of this section.
(4) For the purposes of this
section--
(a) 'standard cider' means
cider which is not sparkling and is of a strength not exceeding
7.5 per cent.; and
(b) 'strong cider' means
cider which is not sparkling and is of a strength exceeding 7.5
per cent.
(5) For the purposes of this
section a container is up-labelled if there is anything
on--
(a) the container
itself,
(b) a label or leaflet
attached to or used with the container, or
(c) any packaging used for
or in association with the container,
which states or tends to suggest that the strength of any
liquor in that container falls within the strong cider strength
range.
(6) For the purposes of
subsection (5) above, a strength falls within the strong cider
strength range if it exceeds 7.5 per cent. but is less than 8.5
per cent."
(2) This Resolution shall come into
force on 1st January 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.
6. Cider labelled as made-wine
(1) After section 55A of the
Alcoholic Liquor Duties Act 1979 there shall be inserted the
following section--
"Cider labelled as
made-wine.
55B.-(1) For the purposes of this
Act, any liquor which would apart from this section be cider and
which--
(a) is in an up-labelled
container, or
(b) has at any time after
31st December 1996 when it was in the United Kingdom been in an
up-labelled container,
shall be deemed to be made-wine, and not cider.
(2) Accordingly, references in
this Act to producing made-wine include references to--
(a) putting cider in an
up-labelled container; or
(b) causing a container in
which there is cider to be up-labelled.
(3) For the purposes of this Act,
where any liquor is deemed by this section to be made-wine, it
shall be deemed--
(a) if it is in an
up-labelled container, to be made-wine of the strength that the
labelling for the container states or tends to suggest;
and
(b) if it is no longer in an
up-labelled container, to be made-wine of the strength stated or
suggested by the labelling for the up-labelled container in which
it was contained when it was first deemed by this section to be
made-wine.
(4) Subsection (3)(a) above has
effect subject to any provision that may be made by regulations
under section 2(3) above.
(5) Where, by virtue of this
section, any duty is charged under section 55 above on any
liquor, a rebate shall be allowed in respect of the amount of any
duty charged on that liquor under section 62 below.
(6) For the purposes of this
section a container is up-labelled if the labelling for the
container states or tends to suggest that the strength of any
liquor in that container is or exceeds 8.5 per cent.
(7) In this section references
to the labelling for any container are references to anything
on--
(a) the container
itself,
(b) a label or leaflet
attached to or used with the container, or
(c) any packaging used for
or in association with the container."
(2) In section 1 of that Act--
(a) in subsection (5), "after
subsection (10)" there shall be inserted "and section 55B(1)";
and
(b) in subsection (6), after
"means" there shall be inserted ", subject to section 55B(1)
below,".
(3) This Resolution shall come into
force on 1st January 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.
7. Hydrocarbon oil (rates of duty and rebate)
(1) In section 6(1) of the
Hydrocarbon Oil Duties Act 1979, for "£0.3912" and "£0.3430"
there shall be substituted "£0.4168" and "£0.3686",
respectively.
(2) In section 8(3) of that Act, for
"£0.2817" there shall be substituted "£0.2113".
(3) In section 11(1) of that Act, for
"£0.0181" and "£0.0233" there shall be substituted "£0.0194" and
"£0.0250", respectively.
(4) In section 14(1) of that Act, for
"£0.0181" there shall be substituted "£0.0194".
(5) This Resolution shall have effect
as from 6 o'clock in the evening of 26th November 1996.
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.
8. Hydrocarbon oil (mixing of heavy oil)
That provision may be made about the
mixing of different descriptions of heavy oil.
9. Tobacco products (rates of duty)
(1) For the Table of rates of duty
in Schedule 1 to the Tobacco Products Duty Act 1979 there shall
be substituted--
| "TABLE |
| 1. Cigarettes |
An amount equal to 21 per cent. of the retail
price plus £65.97 per thousand cigarettes. |
| 2. Cigars |
£98.02 per kilogram. |
| 3. Hand-rolling tobacco |
£87.74 per kilogram. |
| 4. Other smoking tobacco and chewing
tobacco |
£43.10 per kilogram." |
(2) This Resolution shall have effect
as from 6 o'clock in the evening of 26th November 1996.
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.
10. Air passenger duty
That provision may be made about the
rates of air passenger duty under section 30 of the Finance Act
1994.
As an Amendment to Mr Chancellor
of the Exchequer's proposed Motion (Air Passenger
Duty):
Line 2, at end add 'including provision
for reduced or zero liability for duty on tickets purchased by
children.'.
11. Gaming duty
That provision may be made for
charging a duty of excise on premises where gaming takes
place.
12. Vehicle excise duty (increase in general
rate)
(1) In Schedule 1 to the Vehicle
Excise and Registration Act 1994, in paragraph 1(2), for "£140"
there shall be substituted "£145".
(2) This Resolution applies in
relation to licences taken out after 26th November 1996.
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.
13. Insurance premium tax
That provision may be made about
insurance premium tax.
14. Value added tax (aggregation of businesses)
That provision may be made about the
giving of directions under paragraph 2 of Schedule 1 to the Value
Added Tax Act 1994 for two or more persons to be treated as a
single taxable person.
15. Value added tax (goods donated to charity)
(1) In Group 15 of Schedule 8 to the
Value Added Tax Act 1994, for Note (1) there shall be substituted
the following Note--
"(1) Item 1 shall apply only
if--
(a) the supply is a sale of
goods donated to that charity or taxable person;
(b) the sale takes place as
a result of the goods having been made available to the general
public for purchase (whether in a shop or elsewhere);
and
(c) the sale does not take
place as a result of any arrangements (whether legally binding
or not) which related to the goods and were entered into by each
of the parties to the sale before the goods were made available
to the general public."
(2) This Resolution has effect in
relation to supplies made on or after 26th November 1996.
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. Value added tax (charitable institutions)
(1) In Group 15 of Schedule 8 to the
Value Added Tax Act 1994, after Note (4) there shall be inserted
the following Notes--
"(4A) Subject to Note (5B), a
charitable institution shall not be regarded as providing care
or medical or surgical treatment for handicapped persons
unless--
(a) it provides care or
medical or surgical treatment in a relevant establishment;
and
(b) the majority of the
persons who receive care or medical or surgical treatment in that
establishment are handicapped persons.
(4B) 'Relevant
establishment'means--
(a) a day-centre, other than
a day-centre which exists primarily as a place for activities
that are social or recreational or both; or
(b) an institution which
is--
(i) approved, licensed
or registered in accordance with the provisions of any enactment
or Northern Ireland legislation; or
(ii) exempted by or under
the provisions of any enactment or Northern Ireland legislation
from any requirement to be approved, licensed or
registered;
and in paragraph (b) above the references to the
provisions of any enactment or Northern Ireland legislation are
references only to provisions which, so far as relating to
England, Wales, Scotland or Northern Ireland, have the same
effect in every locality within that part of the United
Kingdom.2
(2) After Note (5) to that Group
there shall be inserted the following Notes--
"(5A) Subject to Note (5B), items
4 to 7 do not apply where the eligible body falls within Note
(4)(f) unless the relevant goods are or are to be used in a
relevant establishment in which that body provides care or
medical or surgical treatment to persons the majority of whom are
handicapped.
(5B) Nothing in Note (4A) or (5A)
shall prevent a supply from falling within items 4 to 7
where--
(a) the eligible body
provides medical care to handicapped persons in their own
homes;
(b) the relevant goods fall
within Note (3)(a) or are parts or accessories for use in or with
goods described in Note (3)(a); and
(c) those goods are or are
to be used in or in connection with the provision of that
care."
(3) This Resolution has effect in
relation to supplies made on or after 26th November 1996.
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.
17. Value added tax (exemption of insurance
services)
That provision may be made amending
the provisions of Schedule 9 to the Value Added Tax Act 1994 by
virtue of which supplies involving the provision of insurance or
reinsurance, and related supplies, are exempt.
18. Value added tax (buildings and land etc.)
That provision (including provision
having retrospective effect) may be made about--
(a) the construction for the
purposes of Schedules 8 and 9 to the Value Added Tax Act 1994,
or corresponding provisions of the Value Added Tax Act 1983, of
references to the grant of any interest, right, licence or
facilities; and
(b) the circumstances in which
supplies are made taxable by an election under paragraph 2 of
Schedule 10 to the Value Added Tax Act 1994, or under the
corresponding provisions of the Value Added Tax Act
1983.
19. Value added tax (supplies to persons not fully
taxable)
That paragraphs 2(3A) and 3(8A) of
Schedule 10 to the Value Added Tax Act 1994 shall not have effect
in relation to any supply made after 26th November 1996.
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. Value added tax (bad debt relief)
That provision may be made repealing
section 36(4)(b) of, and paragraph 9(1) of Schedule 13 to, the
Value Added Tax Act 1994.
21. Value added tax (input tax and bad debts)
(1) In section 36 of the Value Added
Tax Act 1994, after subsection (4) there shall be inserted the
following subsection--
(a) a person is entitled
under subsection (2) above to be refunded an amount of VAT,
and
(b) that VAT has at any time
been included in the input tax of another person,
that other person shall be taken, as from the time when
the claim for the refund is made, not to have been entitled to
any credit for input tax in respect of the VAT that has to be
refunded on that claim."
(2) This Resolution has effect in
relation to any entitlement under section 36 of that Act of 1994
to a refund of VAT charged on a supply made after 26th November
1996.
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. Value added tax (description of group
members)
(1) In section 43 of the Value Added
Tax Act 1994, after subsection (1) there shall be inserted the
following subsections--
(a) it is material, for the
purposes of any provision made by or under this Act ('the
relevant provision'), whether the person by or to whom a supply
is made, or the person by whom goods are acquired or imported,
is a person of a particular description,
(b) paragraph (b) or (c) of
subsection (1) above applies to any supply, acquisition or
importation, and
(c) there is a difference
that would be material for the purposes of the relevant provision
between--
(i) the description
applicable to the representative member, and
(ii) the description
applicable to the body which (apart from this section) would be
regarded for the purposes of this Act as making the supply,
acquisition or importation or, as the case may be, as being the
person to whom the supply is made,
the relevant provision shall have effect in relation to
that supply, acquisition or importation as if the only
description applicable to the representative member were the
description in fact applicable to that body.
(1AB) Subsection (1AA) above does
not apply to the extent that what is material for the purposes
of the relevant provision is whether a person is a taxable
person."
(2) This Resolution has effect in
relation to any supply made after 26th November 1996 and in
relation to any acquisition or importation taking place after
that date.
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.
23. Value added tax (deemed self-supplies within
groups)
That provision may be made for
allowing an order made by virtue of section 43(2) of the Value
Added Tax Act 1994 to require the representative member of a
group to be treated as a person of such description as may be
determined under the order.
24. Value added tax (group supplies using an overseas
member)
(1) In section 43 of the Value Added
Tax Act 1994, after subsection (2) there shall be inserted the
following subsections--
(2A) A supply made by a member
of a group ('the supplier') to another member of the group ('the
UK member') shall not be disregarded under subsection (1)(a)
above if--
(a) it would (if there were
no group) be a supply of services falling within Schedule 5 to
a person belonging in the United Kingdom;
(b) those services are not
within any of the descriptions specified in Schedule
9;
(c) the supplier has been
supplied (whether or not by a person belonging in the United
Kingdom) with services falling within any of paragraphs 1 to 8
of Schedule 5;
(d) the supplier belonged
outside the United Kingdom when it was supplied with the services
mentioned in paragraph (c) above; and
(e) the services so mentioned
have been used by the supplier for making the supply to the UK
member.
(2B) Subject to subsection (2C)
below, where a supply is excluded by virtue of subsection (2A)
above from the supplies that are disregarded in pursuance of
subsection (1)(a) above, all the same consequences shall follow
under this Act as if that supply--
(a) were a taxable supply in
the United Kingdom by the representative member to itself,
and
(b) without prejudice to
that, were made by the representative member in the course or
furtherance of its business.
(2C) A supply which is deemed by
virtue of subsection (2B) above to be a supply by the
representative member to itself--
(a) shall not be taken into
account as a supply made by the representative member when
determining any allowance of input tax under section 26(1) in the
case of the representative member;
(b) shall be deemed for the
purposes of paragraph 1 of Schedule 6 to be a supply in the case
of which the person making the supply and the person supplied are
connected within the meaning of section 839 of the Taxes Act
(connected persons); and
(c) subject to paragraph (b)
above, shall be taken to be a supply the value and time of which
are determined as if it were a supply of services which is
treated by virtue of section 8 as made by the person by whom the
services are received.
(2D) For the purposes of
subsection (2A) above where--
(a) there has been a supply
of the assets of a business of a person ('the transferor') to a
person to whom the whole or any part of that business was
transferred as a going concern ('the transferee'),
(b) that supply is
either--
(i) a supply falling to
be treated, in accordance with an order under section 5(3), as
being neither a supply of goods nor a supply of services,
or
(ii) a supply that would
have fallen to be so treated if it had taken place in the United
Kingdom,
(c) the transferor was
supplied with services falling within paragraphs 1 to 8 of
Schedule 5 at a time before the transfer when the transferor
belonged outside the United Kingdom,
those services, so far as they are used by the transferee
for making any supply falling within that Schedule, shall be
deemed to have been supplied to the transferee at a time when the
transferee belonged outside the United Kingdom.
(2E) Where, in the case of a
supply of assets falling within paragraphs (a) and (b) of
subsection (2D) above--
(a) the transferor himself
acquired any of the assets in question by way of a previous
supply of assets falling within those paragraphs,
and
(b) there are services
falling within paragraphs 1 to 8 of Schedule 5 which, if used by
the transferor for making supplies falling within that Schedule,
would be deemed by virtue of that subsection to have been
supplied to the transferor at a time when he belonged outside the
United Kingdom,
that subsection shall have effect, notwithstanding that
the services have not been so used by the transferor, as if the
transferor were a person to whom those services were supplied and
as if he were a person belonging outside the United Kingdom at
the time of their deemed supply to him; and this subsection shall
apply accordingly through any number of successive supplies of
assets falling within paragraphs (a) and (b) of that
subsection."
(2) This Resolution has effect in
relation to supplies made on or after 26th November 1996.
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. Value added tax (services subject to the reverse
charge)
That provision may be made
authorising an order under section 8(5) of the Value Added Tax
Act 1994 to make provision in connection with any addition to or
variation of Schedule 5 to that Act.
26. Value added tax (interest)
(1) Section 78 of the Value Added Tax
Act 1994 shall have effect, and be deemed always to have had
effect, with the insertion of the following subsection after
subsection (1)--
"(1A) In subsection (1)
above--
(a) references to an amount
which the Commissioners are liable in consequence of any matter
to pay or repay to any person are references, where a claim for
the payment or repayment has to be made, to only so much of that
amount as is the subject of a claim that the Commissioners are
required to satisfy or have satisfied; and
(b) the amounts referred to
in paragraph (d) do not include any amount payable under this
section."
(2) That section shall have effect
in relation to any claim made on or after 18th July 1996, and
shall be deemed always to have had effect in relation to such a
claim, with the substitution of the following subsection for
subsection (11)--
"(11) A claim under this section
shall not be made more than three years after the end of the
applicable period to which it relates."
(3) That section shall have effect,
and be deemed always to have had effect, with the substitution
of the following paragraph for paragraph (a) of subsection
(12)--
"(a) references to the
authorisation by the Commissioners of the payment of any amount
include references to the discharge by way of set-off (whether
under section 81(3) or otherwise) of the Commissioners' liability
to pay that amount; and".
(4) After that section there shall
be inserted the following section--
"Assessment for interest
overpayments.
(a) any amount has been paid
to any person by way of interest under section 78,
but
(b) that person was not
entitled to that amount under that section,
the Commissioners may, to the best of their judgement,
assess the amount so paid to which that person was not entitled
and notify it to him.
(2) An assessment made under
subsection (1) above shall not be made more than two years after
the time when evidence of facts sufficient in the opinion of the
Commissioners to justify the making of the assessment comes to
the knowledge of the Commissioners.
(3) Where an amount has been
assessed and notified to any person under subsection (1) above,
that amount shall be deemed (subject to the provisions of this
Act as to appeals) to be an amount of VAT due from him and may
be recovered accordingly.
(4) Subsection (3) above does not
have effect if or to the extent that the assessment in question
has been withdrawn or reduced.
(5) An assessment under
subsection (1) above shall be a recovery assessment for the
purposes of section 84(3A).
(6) Sections 74 and 77(6) apply
in relation to assessments under subsection (1) above as they
apply in relation to assessments under section 73 but as if the
reference in subsection (1) of section 74 to the reckonable date
were a reference to the date on which the assessment is
notified.
(7) Where by virtue of subsection
(6) above any person is liable to interest under section
74--
(a) section 76 shall have
effect in relation to that liability with the omission of
subsections (2) to (6); and
(b) section 77, except
subsection (6), shall not apply to an assessment of the amount
due by way of interest;
and (without prejudice to the power to make assessments
for interest for later periods) the interest to which any
assessment made under section 76 by virtue of paragraph (a) above
may relate shall be confined to interest for a period of no more
than two years ending with the time when the assessment to
interest is made.
(8) For the purposes of this
section notification to a personal representative, trustee in
bankruptcy, interim or permanent trustee, receiver, liquidator
or person otherwise acting in a representative capacity in
relation to another shall be treated as notification to the
person in relation to whom he so acts."
(5) In section 83 of the Value Added
Tax Act 1994, after paragraph (s) there shall be inserted the
following paragraph--
"(sa) an assessment under section
78A(1) or the amount of such an assessment;".
(6) In section 84 of that Act, after
subsection (3) there shall be inserted the following
subsection--
"(3A) An appeal against an
assessment which is a recovery assessment for the purposes of
this subsection, or against the amount of such an assessment,
shall not be entertained unless--
(a) the amount notified by
the assessment has been paid or deposited with the Commissioners;
or
(b) on being satisfied that
the appellant would otherwise suffer hardship, the Commissioners
agree, or the tribunal decides, that the appeal should be
entertained notwithstanding that that amount has not been so paid
or deposited."
(7) Paragraph (4) above comes into
force on 4th December 1996 in relation to amounts paid by way of
interest at any time on or after 18th July 1996.
(8) Paragraphs (5) and (6) above come
into force on 4th December 1996 in relation to assessments made
on or after that date.
(9) Amendments corresponding to those
made by paragraphs (1) and (3) above shall be deemed to have had
effect, for the purposes of the cases to which the enactments
applied, in relation to the enactments directly or indirectly
re-enacted in section 78 of the Value Added Tax Act 1994.
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.
27. Value added tax (unjust enrichment)
That provision may be made--
(a) modifying the provisions of
section 80 of the Value Added Tax Act 1994 under which it is a
defence for the Commissioners of Customs and Excise, on a claim
for repayment, that the repayment would unjustly enrich the
claimant; and
(b) making provision about the
cases where arrangements for reimbursement may be taken into
account in determining whether a person would be unjustly
enriched by a repayment under that section.
28. Value added tax (time limits for repayment
liabilities)
(1) For subsections (4) and (5) of
section 80 of the Value Added Tax Act 1994 there shall be
substituted the following subsection--
"(4) The Commissioners shall not
be liable, on a claim made under this section, to repay any
amount paid to them more than three years before the making of
the claim."
(2) Subject to paragraphs (3) and (4)
below, paragraph (1) above shall be deemed to have come into
force on 18th July 1996 as a provision applying, for the purposes
of the making of any repayment on or after that date, to all
claims under section 80 of the Value Added Tax Act 1994,
including claims made before that date and claims relating to
payments made before that date.
(3) Paragraph (4) below applies as
respects the making of any repayment on or after 18th July 1996
on a claim under section 80 of the Value Added Tax Act 1994
if--
(a) legal proceedings for
questioning any decision ("the disputed decision") of the
Commissioners, or of an officer of the Commissioners, were
brought by any person at any time before that date,
(b) a determination has been or
is made in those proceedings that the disputed decision was wrong
or should be set aside,
(c) the claim is one made by that
person at a time after the proceedings were brought (whether
before or after the making of the determination), and
(d) the claim relates
to--
(i) an amount paid by that
person to the Commissioners on the basis of the disputed
decision, or
(ii) an amount paid by that
person to the Commissioners before the relevant date (including
an amount paid before the making of the disputed decision) on
grounds which, in all material respects, correspond to those on
which that decision was made.
(4) Where this paragraph applies in
the case of any claim--
(a) subsection (4) of section 80
of the Value Added Tax Act 1994 (as inserted by this Resolution)
shall not apply, and shall be taken never to have applied, in
relation to so much of that claim as relates to an amount falling
within paragraph (3)(d)(i) or (ii) above, but
(b) the Commissioners shall not
be liable on that claim, and shall be taken never to have been
liable on that claim, to repay any amount so falling which was
paid to them more than three years before the proceedings
mentioned in paragraph (3)(a) above were brought.
(5) In paragraph (3)(d) above--
(a) the reference to the relevant
date is a reference to whichever is the earlier of 18th July 1996
and the date of the making of the determination in question;
and
(b) the reference to an amount
paid on the basis of a decision, or on any grounds, includes an
amount so paid on terms (however expressed) which questioned the
correctness of the decision or, as the case may be, of those
grounds.
(6) After the subsection (4) inserted
in section 80 of the Value Added Tax Act 1994 by this Resolution
there shall be inserted the following subsections--
(a) any amount has been paid,
at any time on or after 18th July 1996, to any person by way of
a repayment under this section, and
(b) the amount paid exceeded
the Commissioners' repayment liability to that person at that
time,
the Commissioners may, to the best of their judgement,
assess the excess paid to that person and notify it to
him.
(4B) For the purposes of
subsection (4A) above the Commissioners' repayment liability to
a person at any time is--
(a) in a case where any
provision affecting the amount which they were liable to repay
to that person at that time is subsequently deemed to have been
in force at that time, the amount which the Commissioners are to
be treated, in accordance with that provision, as having been
liable at that time to repay to that person; and
(b) in any other case, the
amount which they were liable at that time to repay to that
person.
(4C) Subsections (2) to (8) of
section 78A apply in the case of an assessment under subsection
(4A) above as they apply in the case of an assessment under
section 78A(1)."
(7) In section 83 of that Act, in
paragraph (t), after "80" there shall be inserted ", an
assessment under subsection (4A) of that section or the amount
of such an assessment;".
(8) Nothing contained in--
(a) any regulations under section
25(1) of, or paragraph 2 of Schedule 11 to, that Act relating to
the correction of errors or the making of adjustments,
or
(b) any requirement imposed under
any such regulations,
shall be taken, in relation to any time on or after 18th July
1996, to have conferred an entitlement on any person to receive,
by way of repayment, any amount to which he would not have had
any entitlement on a claim under section 80 of that Act.
(9) Paragraphs (6) to (8) above come
into force on 4th December 1996.
(10) In this Resolution--
"the Commissioners" means the
Commissioners of Customs and Excise; and
"legal proceedings" means any
proceedings before a court or tribunal.
(11) Without prejudice to the
generality of paragraph 1(2) of Schedule 13 to the Value Added
Tax Act 1994, the references in this Resolution, and in
subsection (4) of section 80 of that Act (as inserted by this
Resolution), to a claim under that section include references to
a claim first made under section 24 of the Finance Act 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.
29. Value added tax (set-off of credits and
debits)
(1) In section 81 of the Value Added
Tax Act 1994, after subsection (3) there shall be inserted the
following subsection--
(a) the Commissioners are
liable to pay or repay any amount to any person under this
Act,
(b) that amount falls to be
paid or repaid in consequence of a mistake previously made about
whether or to what extent amounts were payable under this Act to
or by that person, and
(c) by reason of that mistake
a liability of that person to pay a sum by way of VAT, penalty,
interest or surcharge was not assessed, was not enforced or was
not satisfied,
any limitation on the time within which the Commissioners
are entitled to take steps for recovering that sum shall be
disregarded in determining whether that sum is required by
subsection (3) above to be set against the amount mentioned in
paragraph (a) above."
(2) Paragraph (1) above shall be
deemed to have come into force on 18th July 1996 as a provision
applying for determining the amount of any payment or repayment
by the Commissioners on or after that date, including a payment
or repayment in respect of a liability arising before that
date.
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. Value added tax (transitional provision for
set-offs)
(a) at any time before 4th
December 1996, any person ("the taxpayer") became liable to pay
any sum ("the relevant sum") to the Commissioners by way of VAT,
penalty, interest or surcharge,
(b) at any time on or after 18th
July 1996 and before 4th December 1996 an amount was set against
the whole or any part of the relevant sum,
(c) the amount set against that
sum was an amount which is treated under the Resolution of the
House (value added tax (time limits for repayment liabilities))
of 3rd December 1996 as not having been due from the
Commissioners at the time when it was set against that sum,
and
(d) as a consequence, the
taxpayer's liability to pay the whole or a part of the relevant
sum falls to be treated as not having been discharged in
accordance with section 81(3) of the 1994 Act,
the Commissioners may, to the best of their judgement, assess
the amount of the continuing liability of the taxpayer and notify
it to him.
(2) In paragraph (1) above the
reference to the continuing liability of the taxpayer is a
reference to so much of the liability to pay the relevant sum
as--
(a) would have been discharged
if the amount mentioned in paragraph (1)(b) above had been
required to be set against the relevant sum in accordance with
section 81(3) of the 1994 Act, but
(b) falls, by virtue of the
Resolution of the House (value added tax (time limits for
repayment liabilities)) of 3rd December 1996, to be treated as
not having been discharged in accordance with section 81(3) of
that Act.
(3) The taxpayer's only liabilities
under the 1994 Act in respect of his failure, on or after the
time mentioned in paragraph (1)(b) above, to pay an amount
assessable under this Resolution shall be--
(a) his liability to be assessed
for that amount under this Resolution; and
(b) liabilities arising under the
following provisions of this Resolution.
(4) Subsections (2) to (8) of section
78A of the 1994 Act apply in the case of an assessment under
paragraph (1) above as they apply in the case of an assessment
under section 78A(1) of that Act.
(5) The 1994 Act shall have effect
as if the matters specified in section 83 of that Act (matters
subject to appeal) included an assessment under this Resolution
and the amount of such an assessment.
(6) Nothing contained in--
(a) any regulations under section
25(1) of, or paragraph 2 of Schedule 11 to, the 1994 Act relating
to the correction of errors or the making of adjustments,
or
(b) any requirement imposed under
any such regulations,
shall be taken, in relation to any time on or after 18th July
1996, to have conferred on any person any entitlement, otherwise
than in accordance with section 81(3) of that Act, to set any
amount, as an amount due from the Commissioners, against any sum
which that person was liable to pay to the Commissioners by way
of VAT, penalty, interest or surcharge.
"the 1994 Act" means the Value
Added Tax Act 1994; and
"the Commissioners" means the
Commissioners of Customs and Excise.
(8) This Resolution shall come into
force on 4th December 1996.
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.
31. Repayments by the Commissioners of Customs and
Excise
That provision may be made about the
liability of the Commissioners of Customs and Excise to make
repayments of amounts paid to them by way of excise duty or
insurance premium tax or landfill tax and about their powers to
recover amounts repaid by them.
32. Excise duty assessments
That provision may be made about
amounts which may be assessed as excise duty.
33. Income tax (charge and rates for 1997-98)
(1) Income tax shall be charged for
the year 1997-98, and for that year--
(a) the lower rate shall be 20
per cent.;
(b) the basic rate shall be 23
per cent.; and
(c) the higher rate shall be 40
per cent.
(2) For the year 1997-98 section 1(2)
of the Income and Corporation Taxes Act 1988 shall apply as if
the amount specified in paragraph (aa) were £4,100; and,
accordingly, section 1(4) of that Act shall apply for the year
1997-98 in relation only to the amount specified in section
1(2)(b) of that Act.
(3) In section 686(1A) of the Income
and Corporation Taxes Act 1988, for the words "for any year of
assessment shall be the rate equal to the sum of the basic rate
and the additional rate in force for that year" there shall be
substituted ", in relation to any year of assessment for which
income tax is charged, shall be 34 per cent. or such other rate
as Parliament may determine".
(4) Paragraph (3) above has effect
in relation to the year 1997-98 and subsequent years of
assessment.
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.
34. Income tax (modification of indexed
allowances)
(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.
As Amendments to Mr Chancellor
of the Exchequer's proposed Motion (No. 34)(Income tax
(modification of indexed allowances)):
Line 7
leave out '£4,045' and insert '£4,265'.
Line 8
leave out '£5,220' and insert '£5,410'.
Line 9
leave out '£5,400' and insert '£5,590'.
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.
(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--
(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.
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.
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 or amending section 198 of the Income and Corporation
Taxes Act 1988.
Finance [Money]: Queen's
Recommendation 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.
A Bill is to be brought in upon
the foregoing Resolutions when they have been agreed to by the
House.
European Community Document
No. 9002/96, concerning the Council Recommendation to the United
Kingdom with a view to bringing an end to the situation of an
excessive government deficit in the United Kingdom, prepared in
accordance with Article 104c(7) of the Treaty establishing the
European Community, is relevant.
On the Motion for the
Adjournment of the House under Standing Order No. 9 Mr Simon
Hughes proposes to raise the subject of the funding of health
services in South London.
|
| COMMITTEES |
| STANDING COMMITTEE |
| 1 |
Standing Committee A |
10.30 a.m. |
Room 11 (public) |
|
|
4.30 p.m. |
(public) |
|
Further to consider the
Crime (Sentences) Bill. |
| 2 |
Standing Committee B |
10.30 a.m. |
Room 10 (public) |
|
Further to consider the
Local Government and Rating Bill. |
| 3 |
Standing Committee D |
10.30 a.m. |
Room 9 (public) |
|
|
4.30 p.m. |
(public) |
|
Further to consider the
Education Bill. |
| 4 |
First Scottish Standing Committee |
10.30 a.m. |
Room 12 (public) |
|
|
4.30 p.m. |
(public) |
|
Further to consider the
Crime and Punishment (Scotland) Bill. |
| SELECT COMMITTEES |
| 5 |
Health |
10.00 a.m. |
Room 8 (private) |
|
|
10.30 a.m. |
(public) |
|
Subject: Hospital
Services for Children and Young People.Witnesses: The British
Paediatric Accident and Emergency Group, the Royal College of
Nursing Children in Accident and Emergency Special Interest
Group; the Royal College of Anaesthetists, the Royal College of
Nursing Paediatric Intensive Care Nurses Forum, the Royal College
of Paediatrics and Child Health Paediatric Intensive Care Group
(at 11.45 a.m.). |
| 6 |
National Heritage |
10.00 a.m. |
Room 7 (private) |
| 7 |
Treasury |
10.00 a.m. |
Room 15 (private) |
|
|
10.15 a.m. |
(public) |
|
Subject: The 1996
Budget.Witnesses: Professor Tim Congdon, Mr Gavyn Davies, Mr
Andrew Dilnot and Professor Patrick Minford. |
| 8 |
Liaison |
11.00 a.m. |
Room 13 (private) |
[The decision of a Committee to sit in public may be
rescinded without notice.]
|
