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1813

 

House of Commons

 
 

Monday 28th April 2008

 

Committee of the whole House

 

Finance Bill


 

(Clauses 3, 5, 6, 15, 21, 49, 90 and 117


 

and new Clauses amending section 74 of the Finance Act 2003)


 

Note

 

The Amendments have been arranged in accordance with the Order to be

 

proposed by Mr Chancellor of the Exchequer.

 


 

Mr Chancellor of the Exchequer

 

To move, That the order in which proceedings in the Committee of the whole House

 

on the Finance Bill are taken shall be: Clauses 5, 6, 21, 3, 49 and 90, new Clauses

 

amending section 74 of the Finance Act 2003 and Clauses 117 and 15

 


 

Mr George Osborne

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

Stewart Hosie

 

1

 

Clause  5,  page  2,  line  36,  leave out ‘21%’ and insert ‘20%’.

 

Stewart Hosie

 

Angus Robertson

 

Mr Alex Salmond

 

Mr Mike Weir

 

Pete Wishart

 

Mr Angus MacNeil

 

7

 

Clause  5,  page  2,  line  37,  at end insert—

 

‘(1A)    

Subsection (1)(a) shall come into force on a day which the Treasury may by order

 

appoint.


 
 

Committee of the whole House: 28th April 2008            

1814

 

Finance Bill, continued

 
 

(1B)    

No order may be made under subsection (1A) until—

 

(a)    

the Treasury has compiled and laid before the House of Commons a

 

report containing an assessment of the impact on the competitiveness of

 

small companies as a result of changes to the small companies rate of

 

corporation tax, and

 

(b)    

the report has been approved by a resolution of the House of Commons.’.

 

Mr George Osborne

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

2

 

Clause  5,  page  3,  line  1,  leave out ‘7/400ths’ and insert ‘1/40th’.

 


 

Mr Jeremy Browne

 

Dr Vincent Cable

 

Mr Colin Breed

 

Dr John Pugh

 

12

 

Clause  6,  page  3,  leave out line 17 and insert ‘Capital gains shall be taxed at the same

 

rate as income.”.’.

 

Stewart Hosie

 

Angus Robertson

 

Mr Alex Salmond

 

Mr Mike Weir

 

Pete Wishart

 

Mr Angus MacNeil

 

8

 

Clause  6,  page  3,  line  20,  leave out from ‘(1)’ to end of line 21 and add ‘will have

 

effect from a day which the Treasury may by order appoint.

 

(4)    

No order may be made under subsection (3) until—

 

(a)    

the Treasury has compiled and laid before the House of Commons a

 

report containing an assessment of the impact of changes to the rate of

 

capital gains tax on—

 

(i)    

businesses seeking investment,

 

(ii)    

investors who normally pay tax via capital gains tax, and

 

(iii)    

the availability and cost of houses to buy and rent; and

 

(b)    

the report has been approved by a resolution of the House of Commons.’.

 


 

Justine Greening

 

16

 

Clause  21,  page  11,  line  17,  at end add—

 

‘(3)    

The amendment made by subsection (1) ceases to have effect on 1st April 2009

 

unless the Secretary of State has made regulations under the Gambling Act 2005

 

which permit up to one-fifth of the gaming machines in bingo halls and arcades


 
 

Committee of the whole House: 28th April 2008            

1815

 

Finance Bill, continued

 
 

to be Category B3 machines (as defined in regulations made under section 236 of

 

that Act).’.

 


 

Mr George Osborne

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

18

 

Clause  3,  page  2,  line  21,  at beginning insert ‘Save as provided in subsection

 

(6A),’.

 

Mr George Osborne

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

19

 

Clause  3,  page  2,  line  22,  at end insert—

 

‘(6A)    

The amendments made by this section shall cease to have effect at midnight on

 

5th January 2009 unless the condition set out in subsection (6B) has been

 

satisfied.

 

(6B)    

The condition referred to in subsection (6A) is that the Chancellor of the

 

Exchequer shall have laid before the House of Commons a statement setting out

 

the measures taken to mitigate the effect of the amendments made by this section

 

and by section 1 (when taken together) on those for whom such effect is a net

 

increase in income tax payable and the House of Commons shall, by resolution,

 

have approved such statement.’.

 

Mr Jeremy Browne

 

Dr Vincent Cable

 

Mr Colin Breed

 

Dr John Pugh

 

11

 

Clause  3,  page  2,  line  25,  at end add—

 

‘(8)    

The Chancellor of the Exchequer shall introduce measures to increase tax income

 

from high earning groups to offset the effect of the abolition of the starting rate

 

in a progressive manner.’.

 


 

Mr George Osborne

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

17

 

Clause  49,  page  25,  line  21,  leave out ‘2008’ and insert ‘2009.’.


 
 

Committee of the whole House: 28th April 2008            

1816

 

Finance Bill, continued

 
 

Mr Jeremy Browne

 

Dr Vincent Cable

 

Mr Colin Breed

 

Dr John Pugh

 

15

 

Clause  49,  page  25,  line  21,  at end add—

 

‘(5)    

Within twelve months of the commencement of this section, the Treasury shall

 

compile and lay before the House of Commons a report on the taxation of such

 

severance payments, including in particular the admissibility of contractual

 

payments for tax exemption.’.

 


 

Mr George Osborne

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Justine Greening

 

Mr David Gauke

 

21

 

Clause  90,  page  51,  line  11,  leave out from ‘acquisition”’ to end of line 12 and

 

insert ‘means the acquisition of a dwelling when it has not been previously acquired by a

 

buyer’.

 

Mr Jeremy Browne

 

Dr Vincent Cable

 

Mr Colin Breed

 

Dr John Pugh

 

13

 

Clause  90,  page  51,  line  12,  leave out from ‘acquisition’ to end and insert ‘as a

 

zero-carbon home.’.

 

Mr George Osborne

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Justine Greening

 

Mr David Gauke

 

4

 

Clause  90,  page  51,  line  12,  leave out ‘occupied’ and insert ‘acquired by a buyer’.

 

Mr Jeremy Browne

 

Dr Vincent Cable

 

Mr Colin Breed

 

Dr John Pugh

 

14

 

Clause  90,  page  51,  line  12,  at end insert—

 

‘(2A)    

In section 58B omit subsection (6).’.


 
 

Committee of the whole House: 28th April 2008            

1817

 

Finance Bill, continued

 
 

Mr George Osborne

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Justine Greening

 

Mr David Gauke

 

3

 

Clause  90,  page  51,  line  26,  at end add—

 

‘(8)    

The Treasury shall, by regulations, define a zero-carbon dwelling.

 

(9)    

Regulations under subsection (8) shall be made by statutory instrument.

 

(10)    

A statutory instrument containing regulations under subsection (8) may not be

 

made unless a draft of it has been laid before and approved by resolution of the

 

House of Commons.

 

(11)    

Regulations under subsection (8) shall be laid not later than 31st December

 

2008.’.

 

Mr George Osborne

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Justine Greening

 

Mr David Gauke

 

20

 

Clause  90,  page  51,  line  26,  at end add—

 

‘(8)    

The Treasury shall, by regulations, define a “zero-carbon home”.

 

(9)    

Regulations under subsection (8) must have regard to the desirability of ensuring

 

that all new homes should be zero carbon by 2016.

 

(10)    

Regulations under subsection (8) shall be made by statutory instrument.

 

(11)    

A statutory instrument containing regulations under subsection (8) may not be

 

made unless a draft of it has been laid before and approved by resolution of the

 

House of Commons.

 

(12)    

Regulations under subsection (8) shall be laid not later than 31st December 2008.

 

(13)    

On the coming into operation of regulations under subsection (8), regulation 5 of

 

the Stamp Duty Land Tax (Zero-Carbon Homes Relief) Regulations 2007 (SI

 

2007/3437) shall cease to have effect.’.

 


 

New Clause amending section 74 of the Finance ACT 2003

 

Collective enfranchisement by leaseholders

 

Mr David Gauke

 

NC1

 

To move the following Clause:—

 

‘(1)    

Section 74 of the Finance Act 2003 is amended as follows.

 

(2)    

In subsection (1) omit “by an RTE company”.

 

(3)    

Omit subsection (4)(a).

 

(4)    

In subsection (4)(b) omit “by an RTE company”.’.

 



 
 

Committee of the whole House: 28th April 2008            

1818

 

Finance Bill, continued

 
 

Mr George Osborne

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

1A

 

Clause  117,  page  73,  line  12,  at end insert—

 

‘(3A)    

An order under subsection (2) may not be made until—

 

(a)    

the provisions of Schedule 24 to FA 2007 which are amended by

 

Schedule 40 have been in force for not less than 12 months, and

 

(b)    

the Treasury has laid before the House of Commons a report setting out

 

its assessment of the effectiveness of those provisions.’.

 

Mr George Osborne

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

3a

 

Clause  117,  page  73,  line  13,  leave out subsections (4) to (6).

 

Mr George Osborne

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

2A

 

Clause  117,  page  73,  line  23,  at end insert—

 

‘(7A)    

A statutory instrument containing an order under subsection (2) may not be made

 

unless a draft of it has been laid before and approved by resolution of the House

 

of Commons.’.

 

Mr George Osborne

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

4A

 

Clause  117,  page  73,  line  24,  leave out subsection (8).

 


 

Stewart Hosie

 

Angus Robertson

 

Mr Alex Salmond

 

Mr Mike Weir

 

Pete Wishart

 

Mr Angus MacNeil

 

9

 

Clause  15,  page  8,  line  4,  at end insert—

 

‘(3A)    

In paragraph 1C (the reduced rate)—

 

(a)    

in sub-paragraph (1) for “or C” substitute “C or D”;

 

(b)    

after sub-paragraph (4) insert—


 
 

Committee of the whole House: 28th April 2008            

1819

 

Finance Bill, continued

 
 

“(4A)  

Condition D is that the vehicle is a working vehicle.”; and

 

(c)    

in sub-paragraph (6) insert at the appropriate place—

 

““working vehicle” has such meaning as may be prescribed by the

 

Treasury in regulations made by statutory instrument,”’.

 

Stewart Hosie

 

Angus Robertson

 

Mr Alex Salmond

 

Mr Mike Weir

 

Pete Wishart

 

Mr Angus MacNeil

 

10

 

Clause  15,  page  8,  line  17,  at end add ‘(subject to subsection (7)).

 

(7)    

The amendments made by subsection (3A) shall come into force on a day which

 

the Treasury may by order appoint.’.

 

Mr George Osborne

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Justine Greening

 

Mr David Gauke

 

6

 

Clause  15,  page  8,  line  17,  at end add—

 

‘(7)    

The Treasury shall publish, not later than the date of the Budget 2009, an

 

estimate, audited by the Independent Committee on Climate Change (as

 

established by the Climate Change Act 2008), of the carbon emissions savings

 

resultant from the changes to vehicle excise duty contained in this section.’.

 

 

Order of the House [21st APRIL 2008]

 

That the following provisions shall apply to the Finance Bill:

 

 

1.    

Clauses 3, 5, 6, 15, 21, 49, 90 and 117 and new Clauses amending section 74

 

of the Finance Act 2003 be committed to a Committee of the whole House;

 

2.    

the remainder of the Bill be committed to a Public Bill Committee; and

 

3.    

when the provisions of the Bill considered by the Committee of the whole

 

House and the Public Bill Committee have been reported to the House, the

 

Bill be proceeded with as if it had been reported as a whole to the House from

 

the Public Bill Committee.

 


 
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