Business assets: roll-over relief
Mr Chancellor of the Exchequer
NC17
*To move the following Clause:—
'.—(1) Section 193 of the Taxation of Chargeable Gains Act 1992 (roll-over relief not available for gains on oil licences) shall cease to have effect.
(2) This section has effect in relation to—
(a) a disposal of a licence or an interest in a licence which occurs on or after 1st July 1999;
(b) an acquisition of a licence or an interest in a licence which occurs on or after 1st July 1999.'.
Lending by Revenue Accounts to National Loans Fund
Mr Chancellor of the Exchequer
NC8
To move the following Clause:—
'.—(1) Where, at the close of business on any day, a sum stands to the credit of—
(a) the General Account of the Commissioners of Customs and Excise, or
(b) the General Account of the Commissioners of Inland Revenue,
that sum may be lent to the National Loans Fund on that day.
(2) Subsection (1) above does not apply to any sum to the extent that it is required to be paid, on the day in question, in accordance with section 10 of the Exchequer and Audit Departments Act 1866.
(3) A loan made by virtue of subsection (1) above shall be repaid before the close of business on the day after the loan is made or, where that day is not a business day, before the close of business on the next business day.
(4) Subject to subsection (3) above, a loan made by virtue of subsection (1) above shall be made in such circumstances, and on such terms and conditions, as the Treasury may from time to time direct.
(5) In this section "business day" means any day other than—
(a) a Saturday or Sunday;
(b) Good Friday or Christmas Day;
(c) a day which, in England and Wales, is a bank holiday under the Banking and Financial Dealings Act 1971;
(d) a day specified in an order under section 2(1) of that Act (days on which financial dealings are suspended) and declared by that order to be a non-business day for the purposes of this paragraph; or
(e) a day appointed by Royal proclamation as a public fast or thanksgiving day.'.
Allowable losses where beneficiary absolutely entitled
Mr Chancellor of the Exchequer
NC4
To move the following Clause:—
'.—(1) For subsection (2) of section 71 of the Taxation of Chargeable Gains Act 1992 (allowable losses of trustees treated as transferred to a person becoming absolutely entitled to settled property) there shall be substituted the following subsections—
"(2) Where, in any case in which a person ('the beneficiary') becomes absolutely entitled to any settled property as against the trustee, an allowable loss would (apart from this subsection) have accrued to the trustee on the deemed disposal under subsection (1) above of an asset comprised in that property—
(a) that loss shall be treated, to the extent only that it cannot be deducted from pre-entitlement gains of the trustee, as an allowable loss accruing to the beneficiary (instead of to the trustee); but
(b) any allowable loss treated as accruing to the beneficiary under this subsection shall be deductible under this Act from chargeable gains accruing to the beneficiary to the extent only that it can be deducted from gains accruing to the beneficiary on the disposal by him of—
(i) the asset on the deemed disposal of which the loss accrued; or
(ii) where that asset is an estate, interest or right in or over land, that asset or any asset deriving from that asset.
(2A) In subsection (2) above 'pre-entitlement gain', in relation to an allowable loss accruing to a trustee on the deemed disposal of any asset comprised in any settled property, means a chargeable gain accruing to that trustee on—
(a) a disposal which, on the occasion on which the beneficiary becomes absolutely entitled as against the trustee to that property, is deemed under subsection (1) above to have taken place; or
(b) any other disposal taking place before that occasion but in the same year of assessment.
(2B) For the purposes of subsection (2)(b)(ii) above an asset ('the relevant asset') derives from another if, in a case where—
(b) an asset has divided or otherwise changed its nature, or
(c) different rights or interests in or over any asset have been created or extinguished at different times,
the value of the relevant asset is wholly or partly derived (through one or more successive events falling within paragraphs (a) to (c) above but not otherwise) from the other asset.
(2C) The rules set out in subsection (2D) below shall apply (notwithstanding any other rules contained in this Act or in section 113(2) of the Finance Act 1995 (order of deduction))—
(a) for determining for the purposes of this section whether an allowable loss accruing to the trustee, or treated as accruing to the beneficiary, can be deducted from particular chargeable gains for any year of assessment; and
(b) for the making of deductions of allowable losses from chargeable gains in cases where it has been determined that such an allowable loss can be deducted from particular chargeable gains.
(2D) Those rules are as follows—
(a) allowable losses accruing to the trustee on a deemed disposal under subsection (1) above shall be deducted before any deduction is made in respect of any other allowable losses accruing to the trustee in that year;
(b) allowable losses treated as accruing to the beneficiary under this section, so far as they cannot be deducted in a year of assessment as mentioned in subsection (2)(b) above, may be carried forward from year to year until they can be so deducted; and
(c) allowable losses treated as accruing to the beneficiary for any year of assessment under this section, and allowable losses carried forward to any year of assessment under paragraph (b) above—
(i) shall be deducted before any deduction is made in respect of any allowable losses accruing to the beneficiary in that year otherwise than by virtue of this section; and
(ii) in the case of losses carried forward to any year, shall be deductible as if they were losses actually accruing in that year."
(2) This section applies in relation to any occasion on or after 16th June 1999 on which a person becomes absolutely entitled to settled property as against the trustee.'.
EU travel expenses
Mr Chancellor of the Exchequer
NC9
To move the following Clause:—
'.—(1) In section 200 of the Taxes Act 1988 (expenses of Members of Parliament), in subsection (2), for the words from "the cost of" to "Strasbourg" substitute "EU travel expenses" and after that subsection insert—
"(3) For the purposes of subsection (2) above 'EU travel expenses' are the cost of, and any additional expenses incurred in, travelling between the United Kingdom and—
(a) any European Union institution in Brussels, Luxembourg or Strasbourg, or
(b) the national parliament of another member State.".
(2) This section has effect in relation to sums paid on or after 1st April 1999.'.
Goods for sale on board ships or aircraft
Mr Chancellor of the Exchequer
NC6
To move the following Clause:—
'.—(1) For subsection (4) of section 1 of the Customs and Excise Management Act 1979 (goods for sale on board ships or aircraft to be treated as stores) there shall be substituted the following subsections—
"(4) Goods for use in a ship or aircraft as merchandise for sale to persons carried in the ship or aircraft shall be treated for the purposes of the customs and excise Acts as stores if, and only if—
(a) the goods are to be sold by retail either—
(i) in the course of a relevant journey, or
(ii) for consumption on board;
(b) the goods are not treated as exported by virtue of regulations under section 12 of the Customs and Excise Duties (General Reliefs) Act 1979 (goods for use in naval ships or establishments).
(4A) For the purposes of subsection (4) above a relevant journey is any journey beginning in the United Kingdom and having an immediate destination outside the member States.
(4B) In relation to goods treated as stores by virtue of subsection (4) above, any reference in the customs and excise Acts to the consumption of stores shall be construed as referring to the sale of the goods as mentioned in paragraph (a) of that subsection."
(2) This section shall be deemed to have come into force on 1st July 1999 but shall not have effect in relation to any shipment of goods before that date.'.
Works of art, antiques, etc.
Mr Chancellor of the Exchequer
NC14
*To move the following Clause:—
'.—(1) In subsection (4) of section 21 of the Value Added Tax Act 1994 (which treats as reduced for VAT purposes the value of goods falling within subsection (5) of that section and imported from outside the EC)—
(a) at the beginning there shall be inserted "Subject to subsection (6D) below,";
(b) for "14.29 per cent." there shall be substituted "28.58 per cent."
(2) For subsections (5) and (6) of that section there shall be substituted the following subsections—
"(5) The goods that fall within this subsection are—
(b) any antique, not falling within paragraph (a) above or (c) below, that is more than one hundred years old;
(c) any collection or collector's piece that is of zoological, botanical, mineralogical, anatomical, historical, archaeological, palaeontological, ethnographic, numismatic or philatelic interest.
(6) In this section 'work of art' means, subject to subsections (6A) and (6B) below—
(a) any mounted or unmounted painting, drawing, collage, decorative plaque or similar picture that was executed by hand;
(b) any original engraving, lithograph or other print which—
(i) was produced from one or more plates executed by hand by an individual who executed them without using any mechanical or photomechanical process; and
(ii) either is the only one produced from the plate or plates or is comprised in a limited edition;
(c) any original sculpture or statuary, in any material;
(d) any sculpture cast which—
(i) was produced by or under the supervision of the individual who made the mould or became entitled to it by succession on the death of that individual; and
(ii) either is the only cast produced from the mould or is comprised in a limited edition;
(e) any tapestry or other hanging which—
(i) was made by hand from an original design; and
(ii) either is the only one made from the design or is comprised in a limited edition;
(f) any ceramic executed by an individual and signed by him;
(g) any enamel on copper which—
(i) was executed by hand;
(ii) is signed either by the person who executed it or by someone on behalf of the studio where it was executed;
(iii) either is the only one made from the design in question or is comprised in a limited edition; and
(iv) is not comprised in an article of jewellery or an article of a kind produced by goldsmiths or silversmiths;
(h) any mounted or unmounted photograph which—
(i) was printed by or under the supervision of the photographer;
(ii) is signed by him; and
(iii) either is the only print made from the exposure in question or is comprised in a limited edition;
(6A) The following do not fall within subsection (5) above by virtue of subsection (6)(a) above, that is to say—
(a) any technical drawing, map or plan;
(b) any picture comprised in a manufactured article that has been hand-decorated; or
(c) anything in the nature of scenery, including a backcloth.
(6B) An item comprised in a limited edition shall be taken to be so comprised for the purposes of subsection (6)(d) to (h) above only if—
(a) in the case of sculpture casts—
(i) the edition is limited so that the number produced from the same mould does not exceed eight; or
(ii) the edition comprises a limited edition of nine or more casts made before 1st January 1989 which the Commissioners have directed should be treated, in the exceptional circumstances of the case, as a limited edition for the purposes of subsection (6)(d) above;
(b) in the case of tapestries and hangings, the edition is limited so that the number produced from the same design does not exceed eight;
(c) in the case of enamels on copper—
(i) the edition is limited so that the number produced from the same design does not exceed eight; and
(ii) each of the enamels in the edition is numbered and is signed as mentioned in subsection (6)(g)(ii) above;
(d) in the case of photographs—
(i) the edition is limited so that the number produced from the same exposure does not exceed thirty; and
(ii) each of the prints in the edition is numbered and is signed as mentioned in subsection (6)(h)(ii) above.
(6C) For the purposes of this section a collector's piece is of philatelic interest if—
(a) it is a postage or revenue stamp, a postmark, a first-day cover or an item of pre-stamped stationery; and
(b) it is franked or (if unfranked) it is not legal tender and is not intended for use as such.
(6D) Subsection (4) above does not apply in the case of any goods imported from outside the member States if—
(a) the whole of the VAT chargeable on their importation falls to be relieved by virtue of an order under section 37(1); or
(b) they were exported from the United Kingdom during the period of twelve months ending with the date of their importation."
(3) This section has effect in relation to goods imported at any time on or after the day on which this Act is passed.'.
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