++ 3 WAYS AND MEANS: Adjourned debate on
Question [17th March]
1. Amendment of the law
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.
The remaining Motions in this item, numbered 2 to 74,
and those relating to Procedure and to Finance [Money] are to be moved immediately after
the decision on the preceding Motion. They will be decided without debate (Standing Order
No. 51(3)).
2. Beer (rate of duty)
That provision may be made increasing the rate of duty set
out in section 36(1) of the Alcoholic Liquor Duties Act 1979.
3. Sparkling wine, made-wine and cider (rates of duty)
That the Alcoholic Liquor Duties Act 1979 shall be amended
as follows--
(1) In Part I of the Table of rates of duty in Schedule 1, in
column 2 of the fourth entry, for "201.50" there shall be substituted "161.20".
(2) In section 62(1A)(a), for "£37.54" there shall be
substituted "£45.05".
(3) This Resolution shall have effect as from 6 o'clock in the
evening of 17th March 1998.
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. Wine and made-wine (rates of duty)
That provision may be made increasing the rates of duty set
out in the Table in Schedule 1 to the Alcoholic Liquor Duties Act 1979.
5. Cider (rates of duty)
That provision may be made increasing the rates of duty set
out in section 62(1A) of the Alcoholic Liquor Duties Act 1979.
6. Beer (drawback)
That provision may be made repealing section 42 of the
Alcoholic Liquor Duties Act 1979.
7. Hydrocarbon oil (production in the United Kingdom)
That provision may be made charging excise duty on
hydrocarbon oil produced in the United Kingdom.
8. Hydrocarbon oil (rates of duties and rebates)
That--
(1) In section 6(1A) of the Hydrocarbon Oil Duties Act 1979--
(a) in paragraph (a), for "0.4510" there shall be substituted "0.4926";
(b) in paragraph (b), for "0.3928" there shall be substituted "0.4299"; and
(c) in paragraph (c), for "0.4028" there shall be substituted "0.4499".
(2) In section 11(1) of that Act--
(a) in paragraph (a), for "£0.0200" there shall be substituted "£0.0218"; and
(b) in each of paragraphs (b) and (ba), for "£0.0258" there shall be substituted
"£0.0282".
(3) In section 13A(1A) of that Act--
(a) in paragraph (a), for "0.0150" there shall be substituted "£0.0050"; and
(b) in paragraph (b), for "£0.0482" there shall be substituted "£0.0527".
(4) In section 14(1) of that Act, for "£0.0200" there shall be
substituted "£0.0218".
(5) This Resolution shall have effect as from 6 o'clock in the
evening of 17th March 1998.
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.
9. Hydrocarbon oil (ultra low sulphur diesel)
That--
(1) In section 1 of the Hydrocarbon Oil Duties Act 1979, for
subsection (6) there shall be substituted the following subsection--
(6) `Ultra low sulphur diesel' means gas oil--
(a) the sulphur content of which does not exceed 0.005 per cent. by weight or is
nil;
(b) the density of which does not exceed 835 kilograms per cubic metre at a temperature of
15 C; and
(c) of which not less than 95 per cent. by volume distils at a temperature not exceeding 345
C."
(2) This Resolution shall have effect as from 6 o'clock in the
evening of 17th March 1998.
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. Hydrocarbon oil (mixing of heavy oil)
That--
(1) In section 20AAA of the Hydrocarbon Oil Duties Act 1979,
after subsection (2) there shall be inserted the following subsection--
"(2A) Where--
(a) a mixture of heavy oils is produced in contravention of Part IIA of Schedule 2A to this Act,
and
(b) the mixture is not produced as a result of approved mixing,
a duty of excise shall be charged on the
mixture."
(2) In subsection (3) of that section, after "subsection (1)"
there shall be inserted "or (2A)".
(3) In section 20AAB of that Act, in subsection (1), after
"section 20AAA(1)" there shall be inserted "or (2A)".
(4) In Schedule 2A to that Act, after paragraph 7 there shall
be inserted the following paragraph--
"Part IIA
Unrebated heavy oil
7A. A mixture of heavy oils is produced in contravention of this paragraph if such a
mixture is produced by mixing--
(a) ultra low sulphur diesel in respect of which, on its delivery for home use, a
declaration was made that it was intended for use as fuel for a road vehicle; and
(b) heavy oil of any other description in respect of which, on its delivery for home use, such a
declaration was made."
(5) In paragraph 9 of that Schedule, after sub-paragraph (1)
there shall be inserted the following sub-paragraph--
(1A) Subject to paragraph 10 below, duty charged under
subsection (2A) of section 20AAA of this Act shall be charged at the rate for heavy oil in
force at the time when the mixture is produced."
(6) This Resolution shall have effect as from 6 o'clock in the
evening of 17th March 1998.
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.
11. Tobacco products (rates of duty)
That provision may be made increasing the rates of duty set
out in the Table in Schedule 1 to the Tobacco Products Duty Act 1979.
12. Rates of gaming duty
That provision may be made increasing the rates at which
gaming duty is charged.
13. Amusement machine licence duty (rates of duty)
That--
(1) In section 23 of the Betting and Gaming Duties Act 1981,
for the Table in subsection (2) there shall be substituted the following Table--
TABLE
(1) Period (in months) for which licence granted |
(2) Machines that are not gaming machines £ |
(3) Gaming machines that are small-prize machines or are five-penny
machines without being small-prize machines £ |
(4) Other machines £ |
1 | 30 | 80 | 220 |
2 | 50 | 150 | 425 |
3 | 75 | 220 | 615 |
4 | 95 | 285 | 800 |
5 | 120 | 345 | 970 |
6 | 140 | 400 | 1,125 |
7 | 160 | 450 | 1,270 |
8 | 185 | 500 | 1,405 |
9 | 205 | 540 | 1,525 |
10 | 225 | 580 | 1,635 |
11 | 240 | 615 | 1,730 |
12 | 250 | 645 | 1,815 |
(2) This Resolution shall apply in relation to any amusement machine licence for which an
application is received by the Commissioners of Customs and Excise after 17th March 1998.
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.
14. Amusement machine licence duty (excepted machines)
That--
(1) In section 21(3A) of the Betting and Gaming Duties Act
1981, for paragraphs (b) and (c) there shall be substituted the following paragraphs--
"(b) a five-penny machine which is a small prize machine; or
(c) a thirty-five-penny machine which is not a prize machine or which, if it is a prize machine,
is not a gaming machine.".
(2) This Resolution has effect in relation to the provision of
an amusement machine at any time on or after 1st April 1998.
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.
15. Vehicle excise duty (old vehicles)
That provision may be made confining the exemption in
paragraph 1A of Schedule 2 to the Vehicle Excise and Registration Act 1994 to vehicles
constructed before 1st January 1973.
16. Vehicle excise duty (payments in respect of void licences)
That provision may be made amending section 35A of the
Vehicle Excise and Registration Act 1994.
17. Assessments for excise duty purposes
That provision may be made about assessing and recovering
amounts for purposes of excise duty.
18. Value added tax (deemed supplies)
That--
(1) Paragraph 5 of Schedule 4 to the Value Added Tax Act
1994 shall be amended as follows.
(2) In sub-paragraph (2)(a), for "is" there shall be substituted
"of acquiring or, as the case may be, producing the goods was".
(3) After sub-paragraph (2) there shall be inserted the
following sub-paragraph--
(2A) For the purposes of determining the cost to the donor of acquiring or producing
goods of which he has made a gift, where--
(a) the acquisition by the donor of the goods, or anything comprised in the goods, was by
means of a transfer of a business, or a part of a business, as a going concern,
(b) the assets transferred by that transfer included those goods or that thing, and
(c) the transfer of those assets is one falling by virtue of an order under section 5(3) (or under
an enactment re-enacted in section 5(3)) to be treated as neither a supply of goods nor a
supply of services,
the donor and his predecessor or, as the case may be, all of
his predecessors shall be treated as if they were the same person."
(4) In sub-paragraph (5), for "is" there shall be substituted "or
any of his predecessors is a person who (disregarding this paragraph) has or will become".
(5) After that sub-paragraph there shall be inserted the
following sub-paragraph--
"(5A) In relation to any goods or anything comprised in any goods, a person is the
predecessor of another for the purposes of this paragraph if--
(a) that other person is a person to whom he has transferred assets of his business by a
transfer of that business, or a part of it, as a going concern;
(b) those assets consisted of or included those goods or that thing; and
(c) the transfer of the assets is one falling by virtue of an order under section 5(3) (or under
an enactment re-enacted in section 5(3)) to be treated as neither a supply of goods nor a
supply of services;
and references in this paragraph to a person's predecessors
include references to the predecessors of his predecessors through any number of transfers."
(6) The preceding provisions of this Resolution apply to any
case where the time when the goods are transferred or disposed of or, as the case may be,
put to use, used or made available for use is on or after 17th March 1998.
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. Value added tax (place of supply orders)
That--
(1) In the Value Added Tax Act 1994 the following section
shall be inserted after section 97--
"Place of supply orders: transitional provision. |
97A.--(1) This section shall have effect for the purpose of giving effect to any order made on
or after 17th March 1998 under section 7(11), if--
(a) the order provides for services of a description specified in the order to be treated as
supplied in the United Kingdom;
(b) the services would not have fallen to be so treated apart from the order;
(c) the services are not services that would have fallen to be so treated under any provision
re-enacted in the order; and
(d) the order is expressed to come into force in relation to services supplied on or after a date
specified in the order (`the commencement date').
(2) Invoices and other documents provided to any person before the
commencement date shall be disregarded in determining the time of the supply of any
services which, if their time of supply were on or after the commencement date, would be
treated by virtue of the order as supplied in the United Kingdom.
(3) If there is a payment in respect of any services of the specified description that
was received by the supplier before the commencement date, so much (if any) of that
payment as relates to times on or after that date shall be treated as if it were a payment
received on the commencement date.
(4) If there is a payment in respect of services of the specified description that is or
has been received by the supplier on or after the commencement date, so much (if any) of
that payment as relates to times before that date shall be treated as if it were a payment
received before that date.
(5) Subject to subsection (6) below, a payment in respect of any services shall be
taken for the purposes of this section to relate to the time of the performance of those
services.
(6) Where a payment is received in respect of any services the performance of
which takes place over a period a part of which falls before the commencement date and a
part of which does not--
(a) an apportionment shall be made, on a just and reasonable basis, of the extent to
which the payment is attributable to so much of the performance of those services as took
place before that date;
(b) the payment shall, to that extent, be taken for the purposes of this section to
relate to a time before that date; and
(c) the remainder, if any, of the payment shall be taken for those purposes to relate
to times on or after that date." |
(2) In section 6 of the Value Added Tax Act 1994, after
subsection (14) there shall be inserted the following subsection--
"(14A) In relation to any services of a description specified in
an order under section 7(11), this section and any regulations under this section or section
8(4) shall have effect subject to section 97A."
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 amending section 36 of the
Value Added Tax Act 1994.
21. Value added tax (long leases in Scotland)
That provision may be made amending section 96 of the
Value Added Tax Act 1994.
22. Income tax (charge and rates for 1998-99)
That income tax shall be charged for the year 1998-99, 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.
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. Income tax (additional relief in respect of children)
That--
(1) In subsection (1)(c) of section 259 of the Income and
Corporation Taxes Act 1988, for man" and wife" there shall be substituted, respectively,
"individual" and "spouse".
(2) In subsection (4) of that section, after "relief under this
section" there shall be inserted by virtue of subsection (1)(a) above".
(3) In section 261A(3) of that Act, for "a man" there shall be
substituted "an individual".
(4) This Resolution has effect for 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.
24. Corporation tax (charge and rate for 1998)
That, for the financial year 1998, corporation tax shall be
charged at the rate of 31 per cent.
25. Corporation tax (small companies rate for 1998)
That, for the financial year 1998--
(a) the small companies' rate shall be 21 per cent.; and
(b) the fraction mentioned in section 13(2) of the Income and Corporation Taxes Act 1988
shall be one fortieth.
26. Corporation tax (due and payable date)
That provision may be made for and in connection with
altering the date on which corporation tax and amounts treated as corporation tax become
due and payable.
27. Advance corporation tax and tax credits
That provision may be made in relation to--
(a) the set-off of advance corporation tax against liability to corporation tax; and
(b) tax credits.
28. Interest payable under the Tax Acts
That provision may be made imposing charges to tax in
relation to interest payable under the Tax Acts to companies.
29. Rents and other receipts from land
That provision may be made about the taxation of rents and
other receipts from land.
30. Computation of profits and losses
That provision may be made as to the computation of profits
and losses for tax purposes.
31. Remuneration in the form of shares or securities
That provision may be made about shares or securities
acquired by a person as a director or employee.
32. Sub-contractors in the construction industry
That provision may be made amending Chapter IV of Part
XIII of the Income and Corporation Taxes Act 1988.
33. Construction workers supplied by agencies
That--
(1) In section 134 of the Income and Corporation Taxes Act
1988, subsection (5)(c) shall cease to have effect.
(2) In section 559 of the Income and Corporation Taxes Act
1988, in subsection (1), for "subsection (2) below" there shall be substituted "the following
provisions of this section"; and after subsection (1) there shall be inserted the following
subsection--
"(1A) Subsection (1) above shall not apply to any payment made under the contract in
question that is chargeable to income tax under Schedule E by virtue of section 134(1)."
(3) Paragraphs (1) and (2) above have effect in relation to--
(a) any payments made on or after 6th April 1998 other than any made in respect of
services rendered before that date; and
(b) any payments made before 6th April 1998 in respect of services to be rendered on or
after that date.
(4) Subject to paragraph (9) below, paragraph (5) below
applies if--
(a) a construction trade is being carried on by a person (`the sub-contractor') at the end
of the year 1997-98; and
(b) there are receipts of that trade which, but for section 134(5)(c) of the Income and
Corporation Taxes Act 1988, would have fallen to be treated for the year 1997-98 as the
emoluments of an office or employment.
(5) Where this paragraph applies, then, subject to paragraphs
(7) and (8) below--
(a) the trade shall be deemed to have been permanently discontinued at the end of the
year 1997-98; and
(b) to the extent (if any) that the trade includes activities in addition to the rendering of
services falling by virtue of this Resolution to be treated as the duties of an office or
employment, a new trade shall be deemed to have been set up and commenced on 6th April
1998.
(6) Paragraph (7) below applies if--
(a) a construction trade ("the old trade") is deemed by virtue of paragraph (5)(a) above to
have been permanently discontinued; and
(b) a construction trade ("the new trade")--
(i) is deemed by virtue of paragraph (5)(b) above to have been set up and commenced;
or
(ii) (where sub-paragraph (i) above does not apply) is actually set up and commenced in the
year 1998-99.
(7) Where this paragraph applies then, notwithstanding the
deemed discontinuance, the old trade and the new trade shall be treated as the same for the
purposes of section 385 of the Income and Corporation Taxes Act 1988.
(8) An officer of the Board shall not become entitled by virtue
of anything in this Resolution to give a direction under paragraph 3(2) of Schedule 20 to the
Finance Act 1994 in the case of a person whose trade is deemed under paragraph (5) above
to cease on 5th April 1998.
(9) Paragraph (5) above does not apply if the sub-contractor
by notice to an officer of the Board otherwise elects.
(10) An election under paragraph (9) above--
(a) if it relates to a trade carried on by an individual, must be included in a return under
section 8 of the Taxes Management Act 1970 which is made and delivered in that individual's
case on or before the day on which it is required to be made and delivered under that
section; and
(b) if it relates to a trade carried on by persons in partnership, must be included in a return
under section 12AA of that Act which is made and delivered in the partners' case, or in the
case of any one or more of them, on or before the day specified in relation to that return
under subsection (2) or (3) of that section.
(11) In this Resolution "construction trade" means a trade
consisting in or including the rendering of services under contracts relating to construction
operations (within the meaning of Chapter IV of Part XIII of the Income and Corporation
Taxes Act 1988).
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. Employment termination benefits and retirement benefits
That provision may be made about the taxation of benefits
received--
(a) in connection with the termination, or a change in the duties of, an office or
employment; or
(b) under a non-approved retirement benefits scheme.
35. Benefits in kind (car fuel)
That--
(1) In section 158 of the Income and Corporation Taxes Act
1988, for the Tables in subsection (2) there shall be substituted--
(3) The references in the Income and Corporation Taxes Act
1988 to section 193(1) shall be amended as follows--
(a) in section 19(1), in Case I of Schedule E, the words from "and to section 193(1)" to
the end shall be omitted;
(b) in paragraph 10 of Schedule 11, after "193(1)" there shall be inserted "or 192A";
(c) in section 132(3) and paragraphs 1, 1A, 2(1), 3(1) and (3), 5 and 6 of Schedule 12, for
"193(1)" there shall be substituted "192A".
(4) In Schedule 12 to that Act--
(a) in paragraph 3(2)--
(i) in paragraph (a) for "62" there shall be substituted "183", and
(ii) in paragraph (b) for "one-sixth" there shall be substituted "one-half";
(b) in paragraph 5--
(i) for "vessel or aircraft" there shall be substituted "ship (within the meaning of section
192A)", and
(ii) in paragraphs (a) and (b) for "voyage or journey" there shall be substituted "voyage"; and
(c) paragraphs 3(2A) and 7 shall be omitted.
(5) Paragraphs (1) to (4) of this Resolution shall have effect
in relation to--
(a) emoluments attributable to qualifying periods beginning on or after 17th March 1998,
and
(b) emoluments attributable to qualifying periods beginning before 17th March 1998
which are received on or after that date.
(6) Nothing in those paragraphs shall affect the question what
deduction (if any) falls to be made under section 193(1) of the Income and Corporation
Taxes Act 1988 in the case of emoluments attributable to a qualifying period beginning
before 17th March 1998 and received before that date.
(7) For the purposes of paragraphs (5) and (6) of this
Resolution the question whether emoluments are attributable to a qualifying period beginning
before 17th March 1998 shall be determined without reference to any arrangements entered
into on or 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.
39. PAYE (trade debts)
That--
(1) In relation to any asset provided on or after 2nd July 1997
and before 6th April 1998, section 203F of the Income and Corporation Taxes Act 1988 shall
have effect with the following two modifications.
(2) The first modification is the insertion in subsection (2),
before the word and" at the end of paragraph (b), of the following paragraph--
"(ba) an asset not falling within paragraph (a) or (b) above which consists in the rights of
an assignee, or any other rights, in respect of a trade debt that is or may become due to the
employer;".
(3) The second modification is the insertion in subsection (3),
before the word and" at the end of paragraph (a), of the following paragraph--
"(aa) in the case of an asset falling within subsection (2)(ba) above, the amount of the
debt;".
(4) The preceding provisions of this Resolution shall be
deemed, in accordance with paragraphs (5) and (6) below, to have come into force on 2nd
July 1997.
(5) Subject to paragraph (6) below, this Resolution shall not
be taken to have changed--
(a) the amounts which were deductible by any person under section 203 of the Income
and Corporation Taxes Act 1988 at any time on or before 17th March 1998; or
(b) the amounts which should have been accounted for to the Board under section 203J(3) of
that Act at any time on or before 5th April 1998.
(6) Where, by virtue of this Resolution, any employer would
(but for paragraph (5) above) be treated as having been under an obligation at any time on or
before 17th March 1998 to make deductions from payments made by the employer of, or on
account of, an employee's assessable income--
(a) sections 203 and 203J of the Income and Corporation Taxes Act 1988, and
(b) the provisions of any regulations under section 203 of that Act,
shall have effect as if the employer were obliged (subject to
section 203J(3) of that Act) to make those deductions from any payments that are so made
on or after 24th March 1998 and before 6th April 1998.
(7) Expressions used in paragraph (6) above and in section
203J of the Income and Corporation Taxes Act 1988 have the same meanings in that
paragraph as in that section.
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. PAYE (non-cash benefits etc.)
That provision may be made--
(a) extending the circumstances in which a person is to be treated for the purposes of
PAYE regulations as having made a payment; and
(b) amending section 144A of the Income and Corporation Taxes Act 1988.
41. Enterprise investment scheme etc
That provision (including provision having retrospective
effect) may be made amending Chapter III of Part VII of the Income and Corporation Taxes
Act 1988 and sections 150, 150A and 150B of, and Schedule 5B to, the Taxation of
Chargeable Gains Act 1992.
42. Venture capital trusts
That provision (including provision having retrospective
effect) may be made amending section 842AA of, and Schedules 15B and 28B to, the
Income and Corporation Taxes Act 1988.
43. Relief for loan to buy interest in close company
That provision may be made amending section 360 of the
Income and Corporation Taxes Act 1988.
44. Relief for losses on certain unlisted shares
That provision may be made amending section 576 of the
Income and Corporation Taxes Act 1988.
45. Group relief
That provision (including provision having retrospective
effect) may be made about relief under Chapter IV of Part X of the Income and Corporation
Taxes Act 1988.
46. Life policies etc
That provision may be made in relation to policies of life
insurance, contracts for life annuities and capital redemption policies.
47. Insurance companies (provisional repayments)
That provision may be made in relation to Schedule 19AB to
the Income and Corporation Taxes Act 1988.
48. Pension schemes etc
That provision (including provision having retrospective
effect) may be made about--
(a) the approval of schemes for the purposes of Part XIV of the Income and Corporation
Taxes Act 1988; and
(b) cases in which an approval for those purposes has been given or has ceased to have
effect.
49. Futures and options
That provision (including provision having retrospective
effect) may be made amending Schedule 5AA to the Income and Corporation Taxes Act
1988.
50. Exchanges of securities etc
That provision may be made--
(a) for sections 471 and 472 of the Income and Corporation Taxes Act 1988 to cease to
have effect; and
(b) for section 473 of that Act to apply in relation to shares instead of securities.
51. Double taxation relief on foreign interest and dividends
That provision be made amending Chapter II of Part XVIII of
the Income and Corporation Taxes Act 1988.
52. Notification of adjustment of foreign tax
That--
(1) In section 806 of the Income and Corporation Taxes Act
1988, after subsection (2) there shall be inserted the following subsections--
"(3) Subject to subsection (5) below, where--
(a) any credit for foreign tax has been allowed to a person under any arrangements, and
(b) the amount of that credit is subsequently rendered excessive by reason of an
adjustment of the amount of any tax payable under the laws of a territory outside the United
Kingdom,
that person shall give notice in writing to an officer of the
Board that an adjustment has been made that has rendered the amount of the credit
excessive.
(4) A notice under subsection (3) above must be given within
one year from the time of the making of the adjustment.
(5) Subsections (3) and (4) above do not apply where the
adjustment is one the consequences of which in relation to the credit fall to be given effect to
in accordance with regulations made under--
(a) section 182(1) of the Finance Act 1993 (regulations relating to individual members of
Lloyd's); or
(b) section 229 of the Finance Act 1994 (regulations relating to corporate members of
Lloyd's).
(6) A person who fails to comply with the requirements
imposed on him by subsections (3) and (4) above in relation to any adjustment shall be liable
to a penalty of an amount not exceeding the amount by which the credit allowed has been
rendered excessive by reason of the adjustment."
(2) This Resolution has effect in relation to adjustments made
on or after 17th March 1998.
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.
53. Transfer pricing (new regime)
That provision for the purposes of income tax and
corporation tax may be made, in place of sections 770 to 773 of the Income and Corporation
Taxes Act 1988, in relation to cases where provision is made or imposed as between any two
persons which would not have been made as between independent enterprises.
54. Exchange gains and losses and financial instruments
That provision may be made about the application in relation
to any transaction of sections 135, 136, 136A and 137 of the Finance Act 1993 and section
167 of the Finance Act 1994.
55. Controlled foreign companies
That provision may be made in relation to controlled foreign
companies.
56. Corporation tax (change of ownership)
That provision (including provision having retrospective
effect) may be made for the payment of unpaid tax, by persons other than the company
liable, in cases where there has been a change in the ownership of a company and
corporation tax assessed on that company or an associated company remains unpaid.
57. Corporation tax self-assessment, etc
That provision may be made about corporation tax self-
assessment and other matters relating to the management of that tax.
The references in this Resolution to corporation tax include
any amount treated as if it were corporation tax.
58. Chargeable gains (rate for trustees etc)
That provision may be made about the rate of capital gains
tax in respect of gains accruing to trustees and personal representatives.
59. Chargeable gains (indexation and taper relief)
That provision may be made amending the Taxation of
Chargeable Gains Act 1992--
(a) to restrict entitlement to indexation allowance; and
(b) for purposes connected with the introduction of taper relief, to restrict the
availability of other reliefs.
60. Chargeable gains (pooling and identification)
That provision may be made for the purposes of the Taxation
of Chargeable Gains Act 1992--
(a) limiting the circumstances in which different assets are to be treated as parts of a
single asset; and
(b) setting out new rules for the identification of assets disposed of.
61. Chargeable gains (stock dividends)
That provision may be made for the purposes of the Taxation
of Chargeable Gains Act 1992 about stock dividends.
62. Chargeable gains (non-residents)
That provision may be made for the purposes of capital gains
tax in relation to individuals who, having ceased to be resident or ordinarily resident in the
United Kingdom, again become so resident or ordinarily resident.
63. Chargeable gains (offshore settlements)
That provision (including provision having retrospective
effect) may be made imposing charges under the Taxation of Chargeable Gains Act 1992 on
the beneficiaries and settlors of settlements where there has been a time when the trustees
of the settlement, or of a settlement from which property comprised in the settlement directly
or indirectly derives--
(a) have not been resident or ordinarily resident in the United Kingdom, or
(b) have fallen for the purposes of any double taxation relief arrangements to be regarded as
resident in a territory outside the United Kingdom.
64. Chargeable gains (transfers within a group etc.)
That provision may be made, for the purposes of the taxation
of chargeable gains, about--
(a) the persons who are companies for the purposes of sections 170 to 181 of the
Taxation of Chargeable Gains Act 1992;
(b) transfers between companies within a group; and
(c) schemes of reconstruction or amalgamation involving the transfer of a business.
65. Chargeable gains (abolition of reliefs)
That provision may be made repealing Chapter IA of Part V
and sections 254 and 255 of the Taxation of Chargeable Gains Act 1992.
66. Chargeable gains (pre-entry gains)
That provision may be made amending the Taxation of
Chargeable Gains Act 1992 so as to restrict the amounts which, where a company has joined
a group, may be set against chargeable gains accruing to the company before it joined the
group.
67. Inheritance tax (property of historic interest etc)
That provision may be made about--
(a) the designation of property for the purposes of any exemption under the Inheritance
Tax Act 1984 or for the purposes of section 258 of the Taxation of Chargeable Gains Act
1992;
(b) the undertakings given for any of those purposes or for the purposes of any
exemption under the Finance Act 1976 or the Finance Act 1975; and
(c) the conditions for exemption under section 27 of the Inheritance Tax Act
1984.
68. Inheritance tax (gifts for public benefit)
That provision may be made repealing section 26 of the
Inheritance Tax Act 1984.
69. Insurance premium tax
That provision may be made for the purposes of insurance
premium tax--
(a) in relation to premiums taxable at the higher rate; and
(b) in relation to taxable intermediaries.
70. Landfill tax
That provision may be made applying section 1 of the
Provisional Collection of Taxes Act 1968 to landfill tax.
71. Stamp duty (conveyances and transfers on sale)
That the following provisions shall have effect for the period
beginning 24th March 1998 and ending 31 days after the earliest of the dates mentioned in
section 50(2) of the Finance Act 1973--
(1) Section 55 of the Finance Act 1963 and section 4 of the
Finance Act (Northern Ireland) 1963 shall each be amended in accordance with the
provisions of paragraphs (2) and (3) below.
(2) In subsection (1)(d), for £1.50p" there shall be substituted
£2".
(3) In subsection (1)(e), for £2" there shall be substituted £3".
(4) This Resolution shall apply to instruments executed on or
after 24th March 1998, except where the instrument in question is executed in pursuance of a
contract made on or before 17th March 1998.
And it is hereby declared that it is expedient in the public
interest that this Resolution should have statutory effect under the provisions of section 50 of
the Finance Act 1973.
72. Gas valuation
That provision (including provision having retrospective
effect) may be made amending paragraph 3A of Schedule 3 to the Oil Taxation Act 1975,
paragraph 12 of Schedule 2 to the Oil Taxation Act 1983 and section 493 of the Income and
Corporation Taxes Act 1988.
73. European single currency
That provision may be made for the modification, in
connection with the adoption of a single currency by other member States of the European
Community, of enactments and subordinate legislation relating to matters under the care and
management of the Commissioners of Inland Revenue.
74. 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 the following
provisions taking effect in a future year--
(a) provision modifying the effect of sections 256, 257C and 347B of the Income and
Corporation Taxes Act 1988;
(b) provision for charging corporation tax for the financial year 1999 and with
respect to the rates of that tax for that year and the fraction mentioned in section 13(2) of the
Income and Corporation Taxes Act 1988;
(c) provision for and in connection with the abolition of advance corporation tax;
(d) provision for the repeal of sections 26 and 27 of the Income and Corporation
Taxes Act 1988;
(e) provision as to the computation of profits and losses for tax purposes;
(f) provision for reducing, in the case of cars capable of running on road fuel gas,
the cash equivalents of the benefits chargeable to tax under section 157 of the Income and
Corporation Taxes Act 1988;
(g) provision preventing the opening of tax-exempt special savings accounts after
5th April 1999;
(h) provision relating to tax credits;
(i) provision relating to the taxation of payments representative of dividends and
other distributions of companies;
(j) provision about the attribution of gains to the settlors of settlements created
before 19th March 1991;
(k) provision phasing out retirement relief under sections 163 and 164 of, and
Schedule 6 to, the Taxation of Chargeable Gains Act 1992.
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--
(a) 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;
(b) the making out of the Consolidated Fund of repayments of gas levy and of
payments of interest on such repayments;
(c) any increase attributable to any provision of that Act relating to the Debt
Management Account in the sums payable out of money provided by Parliament;
(d) any increase attributable to any provision of that Act relating to that Account in
the sums payable out of or into the National Loans Fund or the Consolidated Fund;
(e) payments out of or into that Account.
Debate May continue until 10.00 p.m.
A Bill is to be brought in upon the foregoing
Resolutions if they are agreed to by the House.
The Third Report of Session 1997-98 from the Social
Security Committee, on Tax and Benefits: Pre-Budget Report (HC 423), and the First Report
of Session 1997-98 from the Environmental Audit Committee, on the Pre-Budget Report (HC
547), are relevant.
At the end of the sitting:
4 ADJOURNMENT
Proposed subject: Domestic Violence (Dr Vincent
Cable).
Debate may continue until 10.30 p.m. or for half an
hour, whichever is later (Standing Order No. 9).