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Finance Bill


Finance Bill
Part 1 — Charges, rates, thresholds etc

1

 

A

Bill

[AS AMENDED IN THE COMMITTEE AND IN PUBLIC BILL COMMITTEE]

To

Grant certain duties, to alter other duties, and to amend the law relating to the

National Debt and the Public Revenue, and to make further provision in

connection with finance. 

Most Gracious Sovereign

WE, Your Majesty’s most dutiful and loyal subjects, the Commons of the

United Kingdom in Parliament assembled, towards raising the necessary

supplies to defray Your Majesty’s public expenses, and making an addition to the

public revenue, have freely and voluntarily resolved to give and to grant unto Your

Majesty the several duties hereinafter mentioned; and do therefore most humbly

beseech Your Majesty that it may be enacted, and be it enacted by the Queen’s most

Excellent Majesty, by and with the advice and consent of the Lords Spiritual and

Temporal, and Commons, in this present Parliament assembled, and by the authority

of the same, as follows:—

Part 1

Charges, rates, thresholds etc

Income tax

1       

Charge and rates for 2007-08

Income tax is charged for the tax year 2007-08; and for that tax year—

5

(a)   

the starting rate is 10%,

(b)   

the basic rate is 22%, and

(c)   

the higher rate is 40%.

 
Bill 12054/2
 
 

Finance Bill
Part 1 — Charges, rates, thresholds etc

2

 

Corporation tax

2       

Charge and main rates for financial year 2008

(1)   

Corporation tax is charged for the financial year 2008; and for that year the rate

of corporation tax is—

(a)   

28% on profits of companies other than ring fence profits, and

5

(b)   

30% on ring fence profits of companies.

(2)   

In this section “ring fence profits” has the same meaning as in Chapter 5 of Part

12 of ICTA (see section 502(1) and (1A)).

3       

Small companies’ rates and fractions for financial year 2007

(1)   

For the financial year 2007 the small companies’ rate is—

10

(a)   

20% on profits of companies other than ring fence profits, and

(b)   

19% on ring fence profits of companies.

(2)   

For the financial year 2007 the fraction mentioned in section 13(2) of ICTA is—

(a)   

1/40th in relation to profits of companies other than ring fence profits

(“the standard fraction”), and

15

(b)   

11/400ths in relation to ring fence profits of companies (“the ring fence

fraction”).

(3)   

If—

(a)   

a company makes a claim under subsection (2) of section 13 of ICTA in

respect of any accounting period any part of which falls in the financial

20

year 2007, and

(b)   

its profits for that accounting period consist of both ring fence profits

and other profits,

   

that subsection applies with the following modification.

(4)   

The corporation tax charged on its basic profits for that period is reduced by

25

the aggregate of—

(a)   

the sum equal to the ring fence fraction of the ring fence amount, and

(b)   

the sum equal to the standard fraction of the remaining amount.

(5)   

For the purposes of subsection (4)(a) “the ring fence amount” is the amount

given by the formula—equation: cross[id[plus[times[char[M],char[R]],minus[times[char[P],char[R]]]]],over[times[

char[I],char[R]],times[char[P],char[R]]]]

30

   

where—

MR is the sum equal to the appropriate fraction of the upper relevant

maximum amount,

PR is so much of the profits for the accounting period as consist of ring

fence profits, and

35

IR is so much of the basic profits for that period as consist of ring fence

profits,

   

and the appropriate fraction is the fraction of the profits for the accounting

period that consist of ring fence profits.

 
 

Finance Bill
Part 1 — Charges, rates, thresholds etc

3

 

(6)   

For the purposes of subsection (4)(b) “the remaining amount” is the amount

given by the formula—equation: cross[id[plus[times[char[M],char[N],char[R]],minus[times[char[P],char[N],char[R]]]]],

over[times[char[I],char[N],char[R]],times[char[P],char[N],char[R]]]]

   

where—

MNR is the sum equal to the appropriate fraction of the upper relevant

maximum amount,

5

PNR is so much of the profits for the accounting period as do not consist

of ring fence profits, and

INR is so much of the basic profits for that period as do not consist of ring

fence profits,

   

and the appropriate fraction is the fraction of the profits for the accounting

10

period that do not consist of ring fence profits.

(7)   

In this section “ring fence profits” has the same meaning as in Chapter 5 of Part

12 of ICTA (see section 502(1) and (1A)).

Inheritance tax

4       

Rates and rate bands for 2010-11

15

(1)   

For the Table in Schedule 1 to IHTA 1984 substitute—

  

“Table

 
  

Portion of value

Rate of tax

 
  

    Lower limit (£)

      Upper limit (£)

     Per cent.

 
  

               0

           350,000

        Nil

 

20

  

           350,000

                —

         40”

 

(2)   

The amendment made by subsection (1) has effect in relation to chargeable

transfers made on or after 6th April 2010.

(3)   

That amendment does not affect the application of section 8 of IHTA 1984

(indexation) by virtue of the difference between the retail prices index for

25

September 2009, or September in any later year, and that for September in the

following year.

(4)   

But that section does not have effect by virtue of the difference between the

retail prices index for September 2008 and that for September 2009.

Alcohol and tobacco

30

5       

Rates of duty on alcoholic liquor

(1)   

The Alcoholic Liquor Duties Act 1979 (c. 4) is amended as follows.

 
 

Finance Bill
Part 1 — Charges, rates, thresholds etc

4

 

(2)   

In section 36(1AA)(a) (standard rate of duty on beer), for “£13.26” substitute

“£13.71”.

(3)   

In section 62(1A) (rates of duty on cider)—

(a)   

in paragraph (a) (rate of duty per hectolitre in the case of sparkling

cider of a strength exceeding 5.5 per cent), for “£166.70” substitute

5

“£172.33”,

(b)   

in paragraph (b) (rate of duty per hectolitre in the case of cider of a

strength exceeding 7.5 per cent which is not sparkling cider), for

“£38.43” substitute “£39.73”, and

(c)   

in paragraph (c) (rate of duty per hectolitre in any other case), for

10

“£25.61” substitute “£26.48”.

(4)   

For Part 1 of the Table in Schedule 1 substitute—


“Part 1

Wine and made-wine of a strength not exceeding 22 per cent

15

 

Description of wine or made-wine

Rates of duty per

 
  

hectolitre

 
  

£

 
 

Wine or made-wine of a strength not

54.85

 
 

exceeding 4 per cent

  

20

 

Wine or made-wine of a strength exceeding

75.42

 
 

4 per cent but not exceeding 5.5 per cent

  
 

Wine or made-wine of a strength exceeding

177.99

 
 

5.5 per cent but not exceeding 15 per cent

  
 

and not sparkling

  

25

 

Sparkling wine or sparkling made-wine of a

172.33

 
 

strength exceeding 5.5 per cent but less than

  
 

8.5 per cent

  
 

Sparkling wine or sparkling made-wine of a

227.99

 
 

strength of 8.5 per cent or of a strength

  

30

 

exceeding 8.5 per cent but not exceeding 15

  
 

per cent

  
 

Wine or made-wine of a strength exceeding

237.31”.

 
 

15 per cent but not exceeding 22 per cent

  

(5)   

The amendments made by this section are deemed to have come into force on

35

26th March 2007.

6       

Rates of tobacco products duty

(1)   

For the Table in Schedule 1 to the Tobacco Products Duty Act 1979 (c. 7)

substitute—


40

 
 

Finance Bill
Part 1 — Charges, rates, thresholds etc

5

 

“Table

 

1.  Cigarettes

An amount equal to 22 per cent of

 
  

the retail price plus £108.65 per

 
  

thousand cigarettes.

 
 

2.  Cigars

£158.24 per kilogram.

 

5

 

3.  Hand-rolling tobacco

£113.74 per kilogram.

 
 

4.  Other smoking tobacco

£69.57 per kilogram.”

 
 

and chewing tobacco

  

(2)   

The amendment made by subsection (1) is deemed to have come into force at

6 p.m. on 21st March 2007.

10

Gambling

7       

Rates of gaming duty

(1)   

For the Table in section 11(2) of FA 1997 substitute—

“Table

 

Part of gross gaming yield

Rate

 

15

 

The first £1,836,500

15 per cent.

 
 

The next £1,266,000

20 per cent.

 
 

The next £2,217,500

30 per cent.

 
 

The next £4,680,000

40 per cent.

 
 

The remainder

50 per cent.”

 

20

(2)   

In section 11(3) of that Act, for “40 per cent” substitute “50 per cent”.

(3)   

The amendments made by this section have effect in relation to accounting

periods beginning on or after 1st April 2007.

8       

Remote gaming duty

(1)   

Schedule 1 contains amendments of and relating to Part 2 of BGDA 1981

25

(gaming duties) imposing a remote gaming duty.

(2)   

The amendments made by Schedule 1 have effect in respect of the provision of

facilities on or after a date appointed by the Commissioners for Her Majesty’s

Revenue and Customs by order made by statutory instrument.

9       

Amusement machine licence duty

30

(1)   

Section 23 of BGDA 1981 (amount of duty payable on amusement machine

licence) is amended as follows.

 
 

Finance Bill
Part 1 — Charges, rates, thresholds etc

6

 

(2)   

In subsection (3), in the definition of “Category C”, in paragraph (ii)(b) for

“£25” substitute “£35”.

(3)   

After subsection (6) insert—

“(7)   

The Commissioners may by order substitute for a sum for the time

being specified in subsection (3) such higher sum as they consider

5

appropriate.”

(4)   

Subsection (2) is deemed to have come into force on 22nd March 2007.

Environment

10      

Fuel duty rates and rebates

(1)   

The Hydrocarbon Oil Duties Act 1979 (c. 5) is amended as follows.

10

(2)   

In section 6(1A) (hydrocarbon oil: rates of duty)—

(a)   

in paragraph (a) (ultra low sulphur petrol), for “£0.4835” substitute

“£0.5035”,

(b)   

in paragraph (aa) (sulphur-free petrol), for “£0.4835” substitute

“£0.5035”,

15

(c)   

in paragraph (b) (light oil other than ultra low sulphur petrol and

sulphur-free petrol), for “£0.5768” substitute “£0.6007”,

(d)   

in paragraph (c) (ultra low sulphur diesel), for “£0.4835” substitute

“£0.5035”,

(e)   

in paragraph (ca) (sulphur-free diesel), for “£0.4835” substitute

20

“£0.5035”, and

(f)   

in paragraph (d) (heavy oil other than ultra low sulphur diesel and

sulphur-free diesel), for “£0.5468” substitute “£0.5694”.

(3)   

In section 6AA(3) (biodiesel), for “£0.2835” substitute “£0.3035”.

(4)   

In section 6AD(3) (bioethanol), for “£0.2835” substitute “£0.3035”.

25

(5)   

In section 8(3) (road fuel gas)—

(a)   

in paragraph (a) (natural road fuel gas), for “£0.1081” substitute

“£0.1370”, and

(b)   

in paragraph (b) (other road fuel gas), for “£0.1221” substitute

“£0.1649”.

30

(6)   

In section 11(1) (rebate on heavy oil)—

(a)   

in paragraph (a) (fuel oil), for “£0.0729” substitute“£0.0929”,

(b)   

in paragraph (b) (gas oil which is not ultra low sulphur diesel), for

“£0.0769” substitute “£0.0969”, and

(c)   

in paragraph (ba) (ultra low sulphur diesel), for “£0.0769” substitute

35

“£0.0969”.

(7)   

In section 13A(1) (rebate on unleaded petrol), for “£0.0617” substitute

“£0.0642”.

(8)   

In section 14(1) (rebate on light oil for use as furnace oil), for “£0.0729”

substitute “£0.0929”.

40

(9)   

The amendments made by this section come into force on 1st October 2007.

 
 

 
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