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Order Paper Friday 4 July 1997

Here you can browse the House of Commons Order Paper (No. 35) for Friday 4 July 1997.


No. 35 FRIDAY 4TH JULY 1997 669
ORDER PAPER

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 [2nd July].
1.    The windfall tax

        A Motion was made and the Question being proposed, That provision may be made for imposing a tax on the amount of the windfall from which a company was benefitting on 2nd July 1997 in any case where--
          (a) an undertaking whose privatisation involved the imposition of economic regulation has been privatised by means of a flotation; and
          (b) the profits of the undertaking in the period after the flotation show that the company was benefitting on that date from a windfall from that flotation.--(Mr Chancellor of the Exchequer):--
        The remaining Motions in this item, numbered 2 to 24, and those relating to Procedure (Future Taxation) and to Finance [Money] are to be moved immediately after the decision on the preceding Motion. They will be decided forthwith, pursuant to Standing Order No. 51(3).

2.    Value added tax (fuel and power)

        That--
        (1) In section 2(1A) of the Value Added Tax Act 1994, for "8 per cent." there shall be substituted "5 per cent.".
        (2) This Resolution applies in relation to any supply made on or after 1st September 1997 and any acquisition or importation taking place 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.

3.    Spirits (rate of duty)

        That provision may be made increasing the rate of duty set out in section 5 of the Alcoholic Liquor Duties Act 1979.

4.    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.

5.    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.

6.    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.

7.    Hydrocarbon oil (rates of duties and rebates)

        That--
        (1) In relation to times before the coming into force of section 7(2) and (3) of the Finance Act 1997, section 6(1) of the Hydrocarbon Oil Duties Act 1979 ("the 1979 Act") shall have effect as follows--
          (a) for "0.4168" there shall be substituted "0.4510"; and
          (b) for "0.3686" there shall be substituted "0.4028".
        (2) In relation to times after the coming into force of section 7(2) and (3) of the Finance Act 1997, section 6(1A) of the 1979 Act shall have effect as follows--
          (a) in paragraph (a), for "0.4168" there shall be substituted "0.4510";
          (b) in paragraph (b), for "0.3586" there shall be substituted "0.3928"; and
          (c) in paragraph (c), for "0.3686" there shall be substituted "0.4028".
        (3) In section 11(1) of the 1979 Act, for "0.0194" and "0.0250" there shall be substituted "0.0200" and "0.0258", respectively.
        (4) In section 14(1) of the 1979 Act, for "0.0194" there shall be substituted "0.0200".
        (5) This Resolution shall have effect as from 6 o'clock in the evening of 2nd July 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.
        As an Amendment to Mr Chancellor of the Exchequer's proposed Motion (No. 7) (Hydrocarbon oil (rates of duties and rebates)):
Mr John Swinney
Mrs Margaret Ewing
Mr Alex Salmond
Mr Andrew Welsh
Ms Roseanna Cunningham
Mr Alasdair Morgan
(a)
        Line    4,after 'effect', insert '(except in respect of residents of predominantly rural areas)'.

8.    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.

9.    Vehicle excise duty (increase in rates)

        That provision may be made increasing the rates of duty set out in Schedule 1 to the Vehicle Excise and Registration Act 1994.

10.    Vehicle licensing (fees with licence applications)

        That provision may be made enabling the Secretary of State to require payments to be made to him in connection with--
          (a) steps taken by him for facilitating the transmission of information to him electronically in connection with licence applications under the Vehicle Excise and Registration Act 1994, and
          (b) the processing of such applications where information is so transmitted.

11.    Withdrawal of relief on medical insurance premiums

        That--
        (1) Subject to paragraphs (2) and (3) below, relief under section 54 of the Finance Act 1989 shall not be given in respect of any payment where either--
          (a) the premium in respect of which the payment is made is a premium under a contract entered into on or after 2nd July 1997; or
          (b) the payment is received by the insurer on or after 6th April 1999.
        (2) Paragraph (1) above shall not affect the giving of relief in respect of a payment received by an insurer before 6th April 1999 where--
          (a) the premium in respect of which the payment is made is a premium under a contract entered into on or after 2nd July 1997 but before 1st August 1997;
          (b) the contract is one entered into in pursuance of a written proposal received by or on behalf of the insurer before 2nd July 1997;
          (c) the contract is not a contract entered into by way of the renewal of an earlier contract; and
          (d) if the payment is not itself a payment received before 1st August 1997, the insurer had before 1st August 1997 received an earlier payment in respect of a premium under the contract in question.
        (3) Paragraph (1) above shall not affect the giving of relief in respect of a payment received by an insurer before 6th April 1999 where--
          (a) the premium in respect of which the payment is made is a premium under a contract entered into on or after 2nd July 1997 but before 1st August 1997;
          (b) that contract is one entered into by way of the renewal of an earlier contract;
          (c) the period of insurance under the earlier contract ended before 2nd July 1997; and
          (d) if the payment is not itself a payment received before 1st August 1997, the insurer had before 1st August 1997 received an earlier payment in respect of a premium under the renewal contract.
        (4) For the purposes of the preceding provisions of this Resolution a contract shall be taken to have been entered into by way of the renewal of an earlier contract only if--
          (a) it was entered into by way of the renewal of a contract which was an eligible contract for the purposes of section 54 of the Finance Act 1989 when that earlier contract was entered into;
          (b) the insurer under the earlier contract and the insurer under the contract by which it has been renewed are the same; and
          (c) the period of insurance under the earlier contract ended immediately before the beginning of the period of insurance under the contract by which it has been renewed.
        (5) 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.

12.     Corporation tax (rates for financial year 1997)

        That--
          (a) the rate at which corporation tax is charged for the financial year 1997 shall be, and shall be deemed always to have been, 31 per cent. (and not 33 per cent. as provided by section 58 of the Finance Act 1997); and
          (b) the small companies' rate for that year shall be, and shall be deemed always to have been, 21 per cent. (and not 23 per cent. as provided by section 59(a) of that Act).

13.     Surplus franked investment income

        That provision may be made in relation to sections 242 to 244 of the Income and Corporation Taxes Act 1988.

14.     Tax credits (pension funds)

        That--
        (1) In section 231 of the Income and Corporation Taxes Act 1988--
          (a) in subsection (2) for "Subject to section 241(5)" there shall be substituted "Subject to sections 231A and 241(5)"; and
          (b) at the beginning of subsection (3) there shall be inserted "Subject to section 231A,".
        (2) After section 231 of the Income and Corporation Taxes Act 1988 there shall be inserted--
"Restrictions
on the use of tax credits by
pension funds.
231A.--(1) No claim shall be made under section 231(2) for payment of the amount of a tax credit if or to the extent that the qualifying distribution to which the credit relates is income of a pension fund.
        (2) In the case of any pension fund, for any year of assessment the aggregate amount of the tax credits in respect of which claims are made under section 231(3) must not exceed the aggregate amount of the tax credits in respect of the qualifying distributions comprised in the income of the pension fund and brought into charge to tax.
        (3) Accordingly, no payment shall be made under section 231(3) in respect of so much of the excess there mentioned as is referable to a tax credit in respect of a qualifying distribution if or to the extent that the qualifying distribution is income of a pension fund.
        (4) In this section--
          "income", in relation to a pension fund, means income derived from investments or deposits held for the purposes of the pension fund;
          "pension fund" means any scheme, fund or other arrangements established and maintained (whether in the United Kingdom or elsewhere) for the purpose of providing pensions, retirement annuities, allowances, lump sums, gratuities or other superannuation benefits (with or without subsidiary benefits);
          "scheme" includes any deed, agreement or series of agreements.
        (5) For convenience of identification only, the schemes, funds or other arrangements which are "pension funds" for the purposes of this section by virtue of the definition of that expression in subsection (4) above include, in particular, those whose income is, in whole or in part, exempt, or eligible for exemption, from tax under or by virtue of any of the following provisions--
          (a) section 512(2);
          (b) section 592(2);
          (c) section 608(2)(a);
          (d) section 613(4);
          (e) section 614(2), (3), (4) or (5);
          (f) section 620(6);
          (g) section 643(2).
        (6) The preceding provisions of this section do not have effect in relation to--
          (a) claims made in respect of tax credits to which entitlement arises by virtue of section 232(3); or
          (b) claims made by virtue of arrangements having effect under section 788."
        (3) This Resolution has effect in relation to qualifying distributions made on or after 2nd July 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.

15.     Insurance companies and friendly societies (tax credits)

        That--
        (1) In paragraph 1(1) of Schedule 19AB to the Income and Corporation Taxes Act 1988--
          (a) the words "the aggregate of" shall cease to have effect; and
          (b) paragraph (b) shall cease to have effect.
        (2) For the purposes of section 121 of the Finance Act 1993, Schedule 19AB to the Income and Corporation Taxes Act 1988 shall be deemed to have effect without the amendments made by paragraph (1) above.
        (3) Paragraph (1) above has effect in relation to distributions made on or after 2nd July 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.

16.     Insurance companies, friendly societies and Lloyd's underwriters

        That provision may be made, in the case of insurance companies, friendly societies and Lloyd's underwriters, in relation to, or in connection with amending provisions relating to, distributions and tax credits.

17.     Dealers in shares and other securities

        That provision may be made for and in connection with amending sections 95 and 732 of the Income and Corporation Taxes Act 1988.

18.     Payments representing tax credits etc

        That provision may be made--
          (a) about payments to which section 687 of the Income and Corporation Taxes Act 1988 applies;
          (b) about arrangements under which a person receives a payment representing any of the value of a tax credit received by another; and
          (c) for and in connection with amending section 699A of the Income and Corporation Taxes Act 1988.

19.     Unauthorised unit trusts

        That--
        (1) Where a qualifying distribution--
          (a) is made on or after 2nd July 1997 but before 6th April 1999 by a company resident in the United Kingdom, and
          (b) falls to be regarded by virtue of subsection (2) of section 469 of the Income and Corporation Taxes Act 1988 as income of the trustees of a unit trust scheme to which that section applies, and
          (c) is not a foreign income dividend and does not (apart from this Resolution) fall to be regarded by virtue of any provision of the Tax Acts as a foreign income dividend arising to the trustees,
the trustees shall be treated for all purposes of the Tax Acts (but not this Resolution) as if the qualifying distribution were a foreign income dividend.
        (2) Paragraph (1) above shall not apply--
          (a) if the unit trust scheme is a common investment fund established under section 42 of the Administration of Justice Act 1982; or
          (b) if, apart from section 469(2) of the Income and Corporation Taxes Act 1988, the whole of the qualifying distribution would fall to be regarded as income of section 505 bodies.
        (3) In this Resolution--
          "foreign income dividend" shall be construed in accordance with Chapter VA of Part VI of the Income and Corporation Taxes Act 1988;
          "section 505 body" means--
        (a) a charity, as defined in section 506(1) of the Income and Corporation Taxes Act 1988;
        (b) a body mentioned in section 507 of that Act; or
        (c) an Association of a description specified in section 508 of that Act.
              And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

    20.    Relief for losses etc

          That provision may be made limiting--
            (a) the period for which amounts may be carried back under section 393A of the Income and Corporation Taxes Act 1988 or paragraph 3 of Schedule 8, paragraph 4(3) of Schedule 11 or paragraph 23 of Schedule 15 to the Finance Act 1996; and
            (b) the amount that may be allowed by way of group relief on a claim under Chapter IV of Part X of the Income and Corporation Taxes Act 1988.

    21.    Capital allowances

          That provision may be made amending the Capital Allowances Act 1990 for the purpose of--
            (a) allowing first-year allowances to be made under Part II of that Act in respect of expenditure incurred by small and medium-sized companies and businesses on or after 2nd July 1997 and before 2nd July 1998; and
            (b) modifying the operation of that Act in cases where machinery or plant is made available for use directly or indirectly as a consequence of any such arrangements as fall, in accordance with normal accountancy practice, to be treated as a finance lease or as a loan.

    22.    Relief for film production and acquisition expenditure

          That provision may be made increasing the amounts of film production and acquisition expenditure incurred before 2nd July 2000 that are relievable under section 42 of the Finance (No. 2) Act 1992.

    23.    Stamp duty (conveyances and transfers on sale)

          That the following provisions shall have effect for the period beginning 8th July 1997 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) to (4) below.
          (2) Subject to the modification mentioned in paragraph (5) below, in subsection (1), for paragraphs (b) and (c) there shall be substituted--
            "(b) where paragraph (a) above does not apply and--
          (i) the amount or value of the consideration does not exceed 500, and
          (ii) the instrument is certified as described in section 34(4) of the Finance Act 1958 at 250,000,
        the rate of 50p for every 50 or part of 50 of the consideration;
            (c) where paragraph (a) above does not apply and--
          (i) the amount or value of the consideration exceeds 500 but does not exceed 250,000, and
          (ii) the instrument is certified as described in section 34(4) of the Finance Act 1958 at 250,000,
        the rate of 1 for every 100 or part of 100 of the consideration;
            (d) where paragraphs (a) to (c) above do not apply and--
          (i) the amount or value of the consideration does not exceed 500,000, and
          (ii) the instrument is certified as described in section 34(4) of the Finance Act 1958 at 500,000,
        the rate of 1.50p for every 100 or part of 100 of the consideration; and
            (e) in any other case the rate of 2 for every 100 or part of 100 of the consideration;".
          (3) In subsection (1A) for "paragraph (c)" there shall be substituted "paragraph (e)".
          (4) In subsection (2)--
            (a) after the words "shall have effect as if" there shall be inserted "(a)", and
            (b) after the word "omitted" there shall be inserted--
            and
            (b) in paragraph (d) for the words "paragraphs (a) to (c)" there were substituted the words "paragraphs (b) and (c)"."
          (5) In section 4 of the Finance Act (Northern Ireland) 1963, for the words "section 34(4) of the Finance Act 1958" wherever they occur, there shall be substituted the words "section 7(4) of the Finance Act (Northern Ireland) 1958".
          (6) This Resolution shall apply to instruments executed on or after 8th July 1997, except where the instrument in question is executed in pursuance of a contract made on or before 2nd July 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 section 50 of the Finance Act 1973.

    24.    Statutory effect of resolutions

          That provision may be made amending section 1(3) of the Provisional Collection of Taxes Act 1968.
          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 relating to income tax relief for interest payments;
            (b) provision in relation to distributions received by charities and persons to whom section 507 or 508 of the Income and Corporation Taxes Act 1988 applies;
            (c) provision relating to tax credits;
            (d) provision relating to the taxation of dividends and other distributions of companies;
            (e) provision for or in connection with varying the rate at which tax is charged under or by virtue of sections 249 and 421 of the Income and Corporation Taxes Act 1988;
            (f) provision for and in connection with the abolition of foreign income dividends;
            (g) provision for interest on gilt-edged securities to be paid without deduction of income tax;
            (h) provision for tax to be deducted on the payment of public revenue dividends mentioned in section 118G(3) or (7) of the Income and Corporation Taxes Act 1988; and
            (i) provision substituting "August" for "May" in section 246(2)(b) 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 amounts which, by virtue of that Act, are payable to charities and persons to whom section 507 or 508 of the Income and Corporation Taxes Act 1988 applies in respect of distributions received by them.
        A Bill is to be brought in upon the foregoing Resolutions when they have been agreed to by the House.
2 STANDARDS AND PRIVILEGES
Mrs Ann Taylor
        That the Minutes of Evidence taken before, and the Memoranda submitted to, the Committee on Standards and Privileges in the last Parliament be referred to the Committee on Standards and Privileges.
3 FINANCE BILL
Mrs Ann Taylor
        That, in respect of the Finance Bill, notices of Amendments, new Clauses and new Schedules to be moved in Committee may be accepted by the Clerks at the Table before the Bill has been read a second time.
4 NATIONAL HEALTH SERVICE (PRIVATE FINANCE) BILL [LORDS]
Mrs Ann Taylor
        That, in respect of the National Health Service (Private Finance) Bill [Lords], notices of Amendments, new Clauses and new Schedules to be moved in Committee may be accepted by the Clerks at the Table before the Bill has been read a second time.
        On the Motion for the Adjournment of the House under Standing Order No.9 Mr Howard Flight proposes to raise the subject of Sussex Downs Conservation Board.


 
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