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'(a) subsection (2) below applies if'.
No. 66, in page 79, line 35, at end insert--
'and
(b) subsection (2A) below applies if it becomes apparent in such a period that that amount was insufficient.'.
No. 67, in page 79, line 40, at end insert--
'(2A) For the purpose of making good to the general insurer the loss occasioned by the deficiency, an amount calculated by applying, for a prescribed period, a prescribed rate of interest to the amount of the deficiency shall be treated as an expense of the general insurer's trade in computing for tax purposes the profits of that trade for the later period of account.'.
No. 68, in page 80, line 7, leave out "and (2)" and insert "to (2A)".
No. 69, in page 80, line 8, after "excessive" insert "or insufficient".
No. 70, in page 80, line 9, after "excess" insert "or deficiency".
No. 71, in page 80, line 12, leave out "and (2) " and insert "to (2A)".
No. 72, in page 80, line 17, after "receipt" insert "or expense".
No. 73, in page 81, line 39, leave out--
'above is treated as a receipt'
'or (2A) above is treated as a receipt or expense'.
No. 74, in page 81, line 47, after "(2)" and insert "or (2A)".
No. 75, in page 82, line 4, leave out "and (2)" and insert "to (2A)".
No. 76, in page 82, line 7, leave out--
'period of account mentioned in paragraph (a) of'
'first period of account mentioned in'.
No. 77, in page 82, line 9, leave out "paragraph (b) of".--[Mr. Allen.]
Clause 111
Amendments made: No. 78, in page 89, line 35, after "etc)" insert "--
(a) after subsection (2) insert--
"(2A) A declaration under section 481(5)(k)(i) must contain--
(a) in a case falling within section 481(4)(a), the name and principal residential address of the individual who is beneficially entitled to the interest or, where two or more individuals are so entitled, of each of them;
(b) in a case falling within section 481(4)(b), the name and principal residential address of each of the partners."; and
(b)''.
No. 79, in page 89, line 35, at end insert--
'( ) In section 477A of the Taxes Act 1988 (building societies: regulations for deduction of tax), after subsection (2) insert--
"(2A) Without prejudice to the generality of subsection (2)(a) above, regulations under subsection (1) above may make provision with respect to the furnishing of information to or by building societies corresponding to any provision that is made by, or may be made under, section 482 with respect to the furnishing of information to or by deposit-takers.".'.--[Dawn Primarolo.]
Clause 122
Amendments made: No. 108, in page 97, line 13, at end insert--
'(1A) In subsection (2) (instruments on which stamp duty not chargeable) in paragraph (a) for "to another" substitute "("the transferor") to another ("the transferee")".
(1B) In that subsection, after paragraph (b) insert--
"unless at the time the instrument is executed arrangements are in existence by virtue of which at that or some later time any person has or could obtain, or any persons together have or could obtain, control of the transferee but not of the transferor.".'.
No. 109, in page 97, leave out lines 23 to 29.
No. 110, in page 97, line 37, at end insert--
'; but this is subject to subsection (5A).
(5A) In determining for the purposes of this section whether a body corporate is the parent of the transferor, paragraphs 5(3) and 5B to 5E of Schedule 18 to the Income and Corporation Taxes Act 1988 shall not apply for the purposes of paragraph (b) or (c) of subsection (2B).'.
No. 111, in page 97, line 38, leave out "subsection (2C)" and insert "this section".
No. 112, in page 97, line 40, leave out "on or".--[Dawn Primarolo.]
Clause 123
Amendments made: No. 113, in page 98, line 2, at end insert--
'(1A) After subsection (2) (instruments on which stamp duty not chargeable) insert--
"(2A) But this section does not apply to an instrument by virtue of subsection (2)(a) if, at the time the instrument is executed, arrangements are in existence by virtue of which at that or some later time any person has or could obtain, or any persons together have or could obtain, control of the transferee but not of the transferor.".'.
No. 114, in page 98, leave out lines 12 to 18.
No. 115, in page 98, line 26, at end insert--
'; but this is subject to subsection (6A).
(6A) In determining for the purposes of this section whether a body corporate is the parent of the transferor, paragraphs 5(3) and 5B to 5E of Schedule 18 to the Income and Corporation Taxes Act 1988 shall not apply for the purposes of paragraph (b) or (c) of subsection (3AA).'.
No. 116, in page 98, line 27, leave out "subsection (3AAA)" and insert "this section".
No. 117, in page 98, line 29, leave out "on or".--[Dawn Primarolo.]
Clause 124
Amendments made: No. 118, in page 98, line 31, at end insert--
'(1A) In subsection (1) (stamp duty not chargeable on leases etc) at the end insert the following paragraph--
"This subsection is subject to subsection (4A) below."
(1B) After subsection (4) insert--
"(4A) An instrument shall not be exempt from stamp duty by virtue of subsection (1) above if at the time the instrument is executed arrangements are in existence by virtue of which at that or some later time any person has or could obtain, or any persons together have or could obtain, control of the lessee but not of the lessor.".'.
No. 119, in page 98, line 41, leave out from beginning to end of line 3 on page 99.
No. 120, in page 99, line 11, at end insert--
'; but this is subject to subsection (10AA).
(10AA) In determining for the purposes of this section whether a body corporate is the parent of the lessor, paragraphs 5(3) and 5B to 5E of Schedule 18 to the Income and Corporation Taxes Act 1988 shall not apply for the purposes of paragraph (b) or (c) of subsection (8) above.'.
No. 121, in page 99, line 12, leave out "subsection (8A)" and insert "this section".
No. 122, in page 99, line 14, leave out "on or".--[Dawn Primarolo.]
Clause 125
Amendment made: No. 123, in page 99, line 26, leave out "on or".--[Dawn Primarolo.]
Clause 126
Amendment made: No. 124, in page 99, line 41, leave out "on or".--[Dawn Primarolo.]
Clause 127
Amendment made: No. 125, in page 101, line 17, leave out "on or".--[Dawn Primarolo.]
Clause 132
Amendment made: No. 80, in page 104, line 33, at end insert--
'( ) Subsection (2) does not apply to the amendment made by paragraph 8(5) of that Schedule.
That amendment has effect in relation to supplies made after the day on which this Act is passed.'.--[Dawn Primarolo.]
Schedule 35
Amendments made: No. 81, in page 543, line 51, at end insert--
'and for "neither of those sub-paragraphs" substitute "none of those paragraphs".'.
No. 82, in page 544, line 26, at end insert--
'(5) After paragraph (e) (which is inserted by sub-paragraph (4) above) insert--
"(f) wind turbines;
(g) water turbines."'.--[Dawn Primarolo.]
Schedule 40
Amendments made: No. 92, in page 566, line 21, at end insert--
'1992 c. 48.
The Finance (No.2) Act 1992.
In Schedule 6, paragraph 3.'.
No. 93, in page 566, line 29, leave out "that Act" and insert--
'the Taxes Act 1988 and the repeal in Schedule 6 to the Finance (No.2) Act 1992'.
No. 126, in page 571, line 18, at end insert--
'1986 c. 41.
The Finance Act 1986.
In sections 67(9), 70(9), 95(1) and 97(1), the words "and is resident in the United Kingdom" and "and is so resident".'.
No. 127, in page 571, line 23, column 3, at end insert--
'Section (Stamp duty and stamp duty reserve tax: transfers between depositary receipt systems and clearance systems).'.
No. 128, in page 571, line 27, at end insert--
'1A. The repeals in the Finance Act 1986 have effect in accordance with section (Stamp duty and stamp duty reserve tax: transfers between depositary receipt systems and clearance systems)(5) of this Act.'.
No. 129, in page 571, line 28, leave out--
'repeal in section 131 of this Act has effect--
(a) so far as it relates'
and insert 'repeals of sections 131 and (Stamp duty and stamp duty reserve tax: transfers between depositary receipt systems and clearance systems) of this Act have effect--
(a) so far as relating'.
No. 130, in page 571, line 31, leave out "it relates" and insert--
'relating to stamp duty on instruments other than bearer instruments, in accordance with section 108 of that Act; and
(c) so far as relating'.--[Dawn Primarolo.]
Order for Third Reading read.
10 pm
Dawn Primarolo: I beg to move, That the Bill be now read the Third time.
I say that with great pleasure and true feeling on behalf of a number of hon. Members who served on the Finance Bill Committee.
This Finance Bill continues to deliver Labour's promises and enacts Budget decisions to deliver opportunity and security for the hard-working families of Britain. Working families are seeing the benefit of that. Thanks to sound economic management, we have been able to cut their taxes. We have brought in not only the working families tax credit and the new 10p tax rate but now, in clause 31, we have cut the basic rate of income tax to 22p--its lowest level for nearly 70 years.
By April next year, personal tax and benefit changes in this and previous Budgets will mean that, on average, households will be £460 a year better off and that families with children will, on average, be £850 a year better off. The tax burden on a single-earner family on average earnings with two children will be the lowest since 1972. Coupled with low inflation, low interest rates, low mortgage rates and economic growth, that adds up to a substantial increase in living standards, which is what really matters. For a single-earner family on average earnings with two children, living standards will have risen by more than 10 per cent. during this Parliament.
Our measures will help to achieve our goal that every child should have the best possible start in life. That is why we have set out in the Budget our ambition to halve child poverty by 2010 and to eliminate it altogether by 2020. The measures introduced so far in this Parliament will lift 1.2 million of Britain's children out of poverty and by next year the Government will be spending an extra £7 billion a year on support for children.
The Finance Bill takes a further step to increase support for children with the introduction in April 2001 of the children's tax credit, which is worth up to £442 a year for a family claiming it. Rising living standards and tackling child poverty will be reinforced by further improvements in public services.
The immediate boost for health in the Budget of £2 billion this year is partly funded by the real increases in tobacco duties in clauses 12 to 15. The decision of the
Conservative party not to vote for the tobacco tax on Budget day is another confirmation that their sums do not add up and that they could not deliver Labour's pledges on health and education, as we saw yesterday.Businesses and jobs will benefit from our commitment to enterprise in the Bill. We have cut main and small business rates of corporation tax to their lowest levels and to the lowest levels of any industrialised economy. The Finance Bill contains a number of measures to promote enterprise and help business: the cuts in capital gains tax in clause 37; the research and development tax in clauses 68 and 69; and the permanent 40 per cent. capital allowances for small and medium-sized enterprises in clause 70. Those provisions especially help manufacturing business.
The new all-employee share ownership plan in clause 47 and the enterprise management incentives in clause 62 help high-risk companies recruit key personnel. The share option provisions in clause 56 and the corporate venture provisions in clause 63 are also important. These measures have been widely welcomed by business, along with the introduction in the Budget of a three-year 100 per cent. capital allowance for investment in information and communications technology equipment and the extra £100 million for the new £1 billion target umbrella fund for enterprise growth across the regions. That is a huge commitment to business success, from a Government who believe that enterprise and economic prosperity can and must go hand in hand with fairness.
Clause 82 introduces an optional ring-fenced regime for so-called tonnage tax, whereby shipping companies can opt to work out taxable profits on the basis of the tonnage of the ships that they operate. That innovation, which follows Lord Alexander's inquiry, is part of the Government's commitment to encouraging the British shipping industry.
As was said earlier, the Budget introduces changes in the corporation tax rules, such as limiting the use of so-called offshore mixer companies to shelter low-taxed foreign profits from UK tax. The new arrangements cap the relief on dividends at 30 per cent., and ensure that no UK tax benefit can be gained from "mixing" in an offshore holding company.
As was also said earlier, the introduction of offshore mixing with a cap of 45 per cent. will benefit companies greatly. For the first time, the UK will allow onshore mixing in non-abusive circumstances. That answers industries' concerns about international competitiveness. The UK will be in a position similar to that of the US, but the UK rules are less complicated and therefore better for business.
The Bill also helps us to meet our international commitments to the environment. Following last year's Budget, it is an important part of the largest package of environmental tax measures to be introduced in the UK. Clause 30 introduces the climate change levy. Clauses 20 to 23 reform vehicle excise duty for cars. Clause 59 fundamentally reforms the company car taxation regime, providing an incentive for low carbon dioxide emissions and removing the perverse incentive for people to clock up business miles to achieve more generous thresholds. Clauses 137 and 138 increase the landfill tax rate, and clarify liability.
The changes in the affordable warmth programme in clause 79, and the reduced rate of VAT on the installation of energy-saving materials and grant-funded installation
of heating systems in clause 132, will help to ensure that pensioners feel the benefit of warmer homes and cheaper fuel bills, as well as the £150 winter allowance. That programme implements the Government's commitment to combat fuel poverty by supporting the installation of energy-efficient heating systems and insulation in up to 1 million low-income homes.The Bill also does a great deal for charities and charitable giving. It helps communities to become more democratic, more open and more socially inclusive. Clauses 38 to 46 give effect to our radical package of measures to boost donations to charities, and to improve the operation of the tax system for charities. Clause 39 abolishes the minimum limit on tax relief for donations. Clause 138 boosts payroll giving with the three-year 10 per cent. Government supplement, and abolishes the maximum limit on donations. Clause 40 cuts red tape in regard to corporate donations, and clause 43 introduces new income tax relief on gifts of shares and securities. The Bill frees charities from the need to set up subsidiaries for small trading and fundraising ventures, and broadens the VAT zero rate for the sale or hire of donated goods. It is a good package, which has been widely welcomed by charities.
Along with the new children's fund which we announced yesterday--it will have a £450 million budget over three years--these measures point to how we can help our country to make the most of one of our greatest strengths: the readiness of our people to give so much of their time and money to voluntary and community activity, for the benefit of all.
The Bill demonstrates that the Government are working hard for a purpose--to build a Britain that is strong, modern and fair. At last, economic prosperity and fairness are no longer seen as opponents; instead, they are seen as partners in the process of building Britain for the future.
The Bill also demonstrates that, with a Labour Government, there is more enterprise, more opportunity, more fairness and more investment in Britain. Britain is better off with a Labour Government, and I commend the Bill to the House.
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