|
| |
|
| |
| |
[AS AMENDED IN THE COMMITTEE AND IN PUBLIC BILL COMMITTEE] |
| |
| |
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 |
| |
| |
| |
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:— |
| |
| |
Charges, rates, allowances, reliefs etc |
| |
| |
1 | Charge and main rates for 2008-09 |
| |
(1) | Income tax is charged for the tax year 2008-09. |
| 5 |
| |
(a) | the basic rate is 20%, and |
| |
(b) | the higher rate is 40%. |
| |
|
| |
| |
|
| |
|
2 | Personal allowances for those aged 65 and over |
| |
(1) | For the tax year 2008-09— |
| |
(a) | the amount specified in section 36(1) of ITA 2007 and section 257(2) of |
| |
ICTA (personal allowance for those aged 65 to 74) is replaced with |
| |
| 5 |
(b) | the amount specified in section 37(1) of ITA 2007 and section 257(3) of |
| |
ICTA (personal allowance for those aged 75 and over) is replaced with |
| |
| |
| |
(a) | section 57 of ITA 2007, so far as relating to the amounts specified in |
| 10 |
sections 36(1) and 37(1) of that Act, and |
| |
(b) | section 257C of ICTA, so far as relating to the amounts specified in |
| |
section 257(2) and (3) of that Act, |
| |
| (indexation) do not apply for the tax year 2008-09. |
| |
3 | Abolition of starting and savings rates and creation of starting rate for savings |
| 15 |
(1) | Section 6 of ITA 2007 (rates at which income tax is charged) is amended as |
| |
| |
(2) | In subsection (1), omit paragraph (a). |
| |
(3) | In subsection (2), omit “starting rate,”. |
| |
(4) | In subsection (3), for paragraph (a) substitute— |
| 20 |
“(a) | section 7 (starting rate for savings),”. |
| |
(5) | Accordingly, in the heading omit “starting rate,”. |
| |
(6) | The amendments made by this section have effect for the tax year 2008-09 and |
| |
| |
(7) | Schedule 1 contains provision in connection with— |
| 25 |
(a) | the abolition of the starting rate and the savings rate, and |
| |
(b) | the creation of the starting rate for savings. |
| |
| |
4 | Charge and main rates for financial year 2009 |
| |
(1) | Corporation tax is charged for the financial year 2009. |
| 30 |
(2) | For that year the rate of corporation tax is— |
| |
(a) | 28% on profits of companies other than ring fence profits, and |
| |
(b) | 30% on ring fence profits of companies. |
| |
(3) | In subsection (2) “ring fence profits” has the same meaning as in Chapter 5 of |
| |
Part 12 of ICTA (see section 502(1) and (1A)). |
| 35 |
5 | Small companies’ rates and fractions for financial year 2008 etc |
| |
(1) | For the financial year 2008 the small companies’ rate is— |
| |
(a) | 21% on profits of companies other than ring fence profits, and |
| |
|
| |
|
| |
|
(b) | 19% on ring fence profits of companies. |
| |
(2) | For the financial year 2008 the fraction mentioned in section 13(2) of ICTA is— |
| |
(a) | 7/400ths in relation to profits of companies other than ring fence profits |
| |
(“the standard fraction”), and |
| |
(b) | 11/400ths in relation to ring fence profits of companies (“the ring fence |
| 5 |
| |
(3) | Subsections (3) to (7) of section 3 of FA 2007 (operation of section 13(2) of ICTA |
| |
in relation to company profits consisting of both ring fence profits and other |
| |
profits) apply in relation to profits of a company for an accounting period any |
| |
part of which falls in the financial year 2008, or any subsequent financial year, |
| 10 |
as in relation to those for an accounting period any part of which falls in the |
| |
| |
(4) | 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)). |
| |
| 15 |
| |
(1) | In TCGA 1992, for section 4 substitute— |
| |
“4 | Rate of capital gains tax |
| |
The rate of capital gains tax is 18%.” |
| |
(2) | Schedule 2 contains further provision for and in connection with the reform of |
| 20 |
| |
(3) | The amendment made by subsection (1) has effect for the tax year 2008-09 and |
| |
| |
| |
Schedule 3 contains provision for and in connection with entrepreneurs’ relief. |
| 25 |
| |
8 | Transfer of unused nil-rate band etc |
| |
Schedule 4 contains provisions about the transfer of unused nil-rate band |
| |
between spouses and civil partners for the purposes of the charge to |
| |
| 30 |
| |
9 | Rates of alcoholic liquor duty |
| |
(1) | ALDA 1979 is amended as follows. |
| |
(2) | In section 5 (rate of duty on spirits), for “£19.56” substitute “£21.35”. |
| |
(3) | In section 36(1AA)(a) (standard rate of duty on beer), for “£13.71” substitute |
| 35 |
| |
|
| |
|
| |
|
(4) | 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 “£172.33” substitute |
| |
| |
(b) | in paragraph (b) (rate of duty per hectolitre in the case of cider of a |
| 5 |
strength exceeding 7.5 per cent which is not sparkling cider), for |
| |
“£39.73” substitute “£43.37”, and |
| |
(c) | in paragraph (c) (rate of duty per hectolitre in any other case), for |
| |
“£26.48” substitute “£28.90”. |
| |
(5) | For the table in Schedule 1 substitute— |
| 10 |
“Table of rates of duty on wine and made-wine
|
| |
| |
Wine or made-wine of a strength not exceeding 22 per cent |
| |
| | | | | | Description of wine or made-wine |
| | | 15 | | | | | | | Wine or made-wine of a strength not |
| | | | | | | | | | Wine or made-wine of a strength exceeding |
| | | | | 4 per cent but not exceeding 5.5 per cent |
| | | 20 | | Wine or made-wine of a strength exceeding |
| | | | | 5.5 per cent but not exceeding 15 per cent |
| | | | | | | | | | Sparkling wine or sparkling made-wine of a |
| | | | | strength exceeding 5.5 per cent but less than |
| | | 25 | | | | | | | Sparkling wine or sparkling made-wine of a |
| | | | | strength of 8.5 per cent or of a strength |
| | | | | exceeding 8.5 per cent but not exceeding 15 |
| | | | | | | | 30 | | Wine or made-wine of a strength exceeding |
| | | | | 15 per cent but not exceeding 22 per cent |
| | | |
|
| |
| |
Wine or made-wine of a strength exceeding 22 per cent |
| 35 |
| | | | | | Description of wine or made-wine |
| | | | | | | | | | | | | | | Wine or made-wine of a strength exceeding |
| | | 40 | | | | | |
|
|
| |
|
| |
|
(6) | The amendments made by this section are treated as having come into force on |
| |
| |
10 | Rates of tobacco products duty |
| |
(1) | For the table in Schedule 1 to TPDA 1979 substitute— |
| |
| 5 |
| |
| | An amount equal to 22 per cent of |
| | | | | the retail price plus £112.07 per |
| | | | | | | | | | | | 10 | | | | | | | | | | | | | | | |
|
(2) | The amendment made by subsection (1) is treated as having come into force at |
| |
| 15 |
| |
11 | Rates and rebates: simplification |
| |
(1) | HODA 1979 is amended as follows. |
| |
(2) | In section 1 (hydrocarbon oil), omit— |
| |
(a) | subsections (3A) and (3B), |
| 20 |
(b) | in subsection (3C), “; and petrol is “leaded petrol” if it is not unleaded |
| |
| |
(c) | subsections (6) and (7). |
| |
(3) | In section 6 (hydrocarbon oil: rates of duty), for subsection (1A) substitute— |
| |
| 25 |
(a) | £0.5035 a litre in the case of unleaded petrol, |
| |
(b) | £0.6007 a litre in the case of light oil other than unleaded petrol, |
| |
| |
(c) | £0.5035 a litre in the case of heavy oil.” |
| |
(4) | In section 6AB(5) (duty on bioblend), omit the words from “of the description” |
| 30 |
| |
(5) | In section 11(1) (rebate on heavy oil), omit— |
| |
(a) | in paragraph (b), “which is not ultra low sulphur diesel”, and |
| |
| |
(6) | In section 13AA(6) (restrictions on use of rebated kerosene), omit “which is not |
| 35 |
ultra low sulphur diesel or sulphur-free diesel”. |
| |
(7) | Omit section 13A (rebate on unleaded petrol). |
| |
|
| |
|
| |
|
(8) | In section 20AAA(4)(a) (mixing of rebated oil), for “section 6(1A)(d)” substitute |
| |
| |
(9) | In section 27(1) (interpretation)— |
| |
(a) | in the definition of “rebate”, omit “13A,”, |
| |
(b) | omit the definitions of “sulphur-free diesel”, “sulphur-free petrol”, |
| 5 |
“ultra low sulphur diesel” and “ultra low sulphur petrol”, and |
| |
(c) | for “and “leaded petrol” have” substitute “has”. |
| |
(10) | In Article 21(7) of the Renewable Transport Fuel Obligations Order 2007 |
| |
(S.I.2007/3072), for “sulphur-free petrol” substitute “unleaded petrol”. |
| |
(11) | In consequence of this section, omit— |
| 10 |
(a) | in FA 1987, section 1(2) and (3), |
| |
(b) | in FA 1997, section 7(5)(a) and (b) and (8)(b), |
| |
(c) | in FA 2000, section 5(3), |
| |
(d) | in FA 2001, section 2(1), and |
| |
(e) | in FA 2004, section 7(2), (5) to (7) and (8)(a). |
| 15 |
(12) | The amendments made by this section are treated as having come into force on |
| |
| |
12 | Biodiesel and bioblend |
| |
Schedule 5 contains provision about biodiesel and bioblend. |
| |
13 | Rates and rebates: increase from 1 October 2008 |
| 20 |
(1) | HODA 1979 is amended as follows. |
| |
(2) | In section 6(1A) (main rates)— |
| |
(a) | in paragraph (a) (unleaded petrol), for “£0.5035” substitute “£0.5235”, |
| |
(b) | in paragraph (b) (light oil other than unleaded petrol), for “£0.6007” |
| |
substitute “£0.6207”, and |
| 25 |
(c) | in paragraph (c), (heavy oil), for “£0.5035” substitute “£0.5235”. |
| |
(3) | In section 6AA(3) (rate of duty on biodiesel), for “£0.3035” substitute “£0.3235”. |
| |
(4) | In section 6AD(3) (rate of duty on bioethanol), for “£0.3035” substitute |
| |
| |
(5) | In section 8(3) (road fuel gas)— |
| 30 |
(a) | in paragraph (a) (natural road fuel gas), for “£0.1370” substitute |
| |
| |
(b) | in paragraph (b) (other road fuel gas), for “£0.1649” substitute |
| |
| |
(6) | In section 11(1) (rebate on heavy oil)— |
| 35 |
(a) | in paragraph (a) (fuel oil), for “£0.0929” substitute “£0.0966”, and |
| |
(b) | in paragraph (b) (gas oil), for “£0.0969” substitute “£0.1007”. |
| |
(7) | In section 14(1) (rebate on light oil for use as furnace fuel), for “£0.0929” |
| |
| |
(8) | In section 14A(2) (rebate on certain biodiesel), for “£0.0969” substitute |
| 40 |
| |
|
| |
|
| |
|
(9) | The amendments made by this section come into force on 1 October 2008. |
| |
14 | Fuel for aircraft and boats, heating oil and fuel for certain engines |
| |
(1) | In section 6(1A) of HODA 1979 (main rates)— |
| |
(a) | after paragraph (a) insert— |
| |
“(aa) | £0.3103 a litre in the case of aviation gasoline,”, and |
| 5 |
(b) | in paragraph (b), after “petrol” insert “or aviation gasoline”. |
| |
(2) | The amendments made by subsection (1) come into force on 1 November 2008. |
| |
| |
(a) | in Part 1, provision consequential on subsection (1) and provision about |
| |
fuel used for private pleasure flying or private pleasure craft, and |
| 10 |
(b) | in Part 2, provision about certain heavy oil used for heating or as fuel |
| |
| |
Environmental taxes and duties |
| |
15 | Rates of vehicle excise duty |
| |
(1) | Schedule 1 to VERA 1994 (annual rates of duty) is amended as follows. |
| 15 |
(2) | In paragraph 1 (general)— |
| |
(a) | in sub-paragraph (2) (vehicle not covered elsewhere in Schedule |
| |
otherwise than with engine cylinder capacity not exceeding 1,549cc), |
| |
for “£180” substitute “£185”, and |
| |
(b) | in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with |
| 20 |
engine cylinder capacity not exceeding 1,549cc), for “£115” substitute |
| |
| |
(3) | In paragraph 1B (graduated rates for light passenger vehicles), for the table |
| |
| |
| 25 |
|
|
| |
|