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2933

 

House of Commons

 
 

Wednesday 2nd July 2008

 

Consideration of Bill

 

Finance Bill, As Amended


 

Note

 

The amendments have been arranged in accordance with the Order of the House

 

[1st July].

 


 

New Clauses relating to information about and simplification of

 

taxation

 

Report on proposed tax changes

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

NC17

 

To move the following Clause:—

 

‘(1)    

The Treasury shall publish each year, not later than the Pre-Budget Report, a

 

report containing information about the technical content of any tax changes

 

which it proposes to include in the following year’s Finance Bill.

 

(2)    

Subsection (1) does not require the publication of any information about proposed

 

changes to rates of taxation.

 

(3)    

A copy of the report must be laid before the House of Commons.

 

(4)    

Standing orders may make provision for the scrutiny of the report.’.

 



 
 

Consideration of Bill: 2nd July 2008                  

2934

 

Finance Bill, continued

 
 

Tax simplification

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

NC18

 

To move the following Clause:—

 

‘(1)    

The Treasury shall publish each year, not later than the Pre-Budget Report, its

 

proposals for the simplification of the tax code of the United Kingdom.

 

(2)    

A copy of the proposals must be laid before the House of Commons.

 

(3)    

Standing orders may make provision for the scrutiny of the proposals.’.

 


 

Amendments relating to schedule 3

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

89

 

Page  127,  line  5  [Schedule  3],  leave out ‘B,’.

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

90

 

Page  127  [Schedule  3],  leave out lines 12 to 16.

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

91

 

Page  127  [Schedule  3],  leave out lines 23 to 25.

 


 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

93

 

Page  128,  line  1  [Schedule  3],  at beginning insert ‘In respect of qualifying business

 

disposals within section 169H(2)(a) and (b),’.

 



 
 

Consideration of Bill: 2nd July 2008                  

2935

 

Finance Bill, continued

 
 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

92

 

Page  130  [Schedule  3],  leave out lines 31 to 36 and insert—

 

‘(a)    

that during the period of ownership of the individual or from 6 April

 

2008 if later—

 

(i)    

the assets which (or interests in which) are disposed of have

 

not been in use for the purposes of the business throughout

 

that entire period, and

 

(ii)    

only part of the assets which (or interest in which) are

 

disposed of are in use for the purposes of the business,’.

 


 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

88

 

Page  133,  line  21  [Schedule  3],  at end insert—

 

‘4A      

For paragraph 15 of Schedule 7D (taper relief on disposal of qualifying shares)

 

substitute—

 

“15      

For the purposes of claiming entrepreneurs’ relief on a disposal of

 

qualifying shares, in applying sections 169I and 169S(3) the shares

 

are treated as if they had been acquired when the original option

 

was granted.”’.

 

Mr Chancellor of the Exchequer

 

29

 

Page  133,  line  26  [Schedule  3],  at end insert—

 

‘Transitionals: section 169P(4)(d)

 

5A         

Section 169P of TCGA 1992 has effect in a case where the period for which

 

the assets are in use for the purposes of the business began before 6 April 2008

 

as if the reference in subsection (4)(d) of that section to that period were to so

 

much of it as falls on or after that date.’.

 



 
 

Consideration of Bill: 2nd July 2008                  

2936

 

Finance Bill, continued

 
 

New Clauses relating to vehicle excise duty and fuel duties

 

Vehicle excise duty: variation of graduated rates for light passenger vehicles

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

Mr Brooks Newmark

 

NC3

 

To move the following Clause:—

 

‘(1)    

The Treasury may by regulations made by statutory instrument vary the table in

 

paragraph 1B (graduated rates for light passenger vehicles) of Schedule 1 to

 

VERA (annual rates of duty).

 

(2)    

A statutory instrument containing regulations under this section may not be made

 

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

 

of the House of Commons.

 

(3)    

The power conferred by subsection (1) does not extend to the ending of different

 

provision for vehicles first registered after 1 March 2001 and before 23 March

 

2006 and with a CO2 emissions figure exceeding 185 g/km.’.

 


 

Vehicle mileage costs

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

NC7

 

To move the following Clause:—

 

‘The Treasury shall publish annually alongside the Pre-Budget report an estimate

 

of the average cost of operating a motor vehicle (including associated running

 

costs and depreciation) per mile for a vehicle driving 10,000 miles per year for—

 

(a)    

a vehicle registered before 1st March 2001 paying a pre-graduated

 

Vehicle Excise Duty with an engine size 1549cc below;

 

(b)    

a vehicle registered before 1st March 2001 paying pre-graduated Vehicle

 

Excise Duty with an engine size above 1549cc; and

 

(c)    

a vehicle registered after 1st March 2001 liable to pay graduated Vehicle

 

Excise Duty in each of the VED bands A-M with effect from 1st april

 

2009.’.

 



 
 

Consideration of Bill: 2nd July 2008                  

2937

 

Finance Bill, continued

 
 

Fuel duties: rates and rebates: general fuel duty regulator

 

Mr Stewart Hosie

 

Mr Elfyn Llwyd

 

Mr Alex Salmond

 

Angus Robertson

 

Mr Mike Weir

 

Pete Wishart

 

Total signatories: 9

 

NC8

 

To move the following Clause:—

 

‘(1)    

HODA 1979 is amended as follows.

 

(2)    

In section 6 (excise duty on hydrocarbon oil) after subsection (1A) (as substituted

 

by section 11 of this Act) insert—

 

“(1AA)    

In every Budget Statement and pre-Budget Statement the Chancellor of

 

the Exchequer must provide a forecast for oil prices and set out

 

anticipated yield from fuel duty and VAT on fuel for that price and for a

 

range of prices up to 50 per cent. above his forecast.

 

(1AB)    

The Treasury must, following each such statement, by regulations made

 

by statutory instrument reduce the rates of duty specified in subsection

 

(1A) in direct proportion to the increase in the costs accounted for by

 

VAT.

 

(1AC)    

Whenever international oil prices rise above the level estimated by the

 

forecast made in accordance with subsection (1AA), indexed fuel duty

 

increases shall not take effect until the international oil prices return to

 

the forecast level or the forecast price is amended by the next Budget or

 

pre-Budget Statement.”’.

 


 

Fuel duties: rates and rebates: road hauliers and remote rural areas

 

Mr Stewart Hosie

 

Mr Elfyn Llwyd

 

Mr Alex Salmond

 

Angus Robertson

 

Mr Mike Weir

 

Pete Wishart

 

Total signatories: 9

 

NC9

 

To move the following Clause:—

 

‘(1)    

HODA 1979 is amended as follows.

 

(2)    

In section 6 (excise duty on hydrocarbon oil) after subsection (1A) (as substituted

 

by section 11 of this Act) insert—

 

“(1AA)    

In every Budget Statement and pre-Budget Statement the Chancellor of

 

the Exchequer must provide a forecast for oil prices and set out

 

anticipated yield from fuel duty and VAT on fuel for that price and for a

 

range of prices up to 50 per cent. above his forecast.


 
 

Consideration of Bill: 2nd July 2008                  

2938

 

Finance Bill, continued

 
 

(1AB)    

The Treasury must—

 

(a)    

following each such statement, by regulations made by statutory

 

instrument reduce the rates of duty specified in subsection (1A)

 

in direct proportion to the increase in the cost accounted for by

 

VAT;

 

(b)    

provide a mechanism to pay the reduction directly to road

 

hauliers with an ‘O’ licence including a restricted licence, a

 

standard licence or a standard international licence;

 

(c)    

bring forward proposals not later than the pre-Budget Statement

 

2008 to provide specific fuel duty reductions targeted at fuel sold

 

in remote rural areas.

 

(1AC)    

Whenever international oil prices rise above the level estimated by the

 

forecast made in accordance with subsection (1AA), indexed fuel duty

 

increases shall not take effect until the international oil prices return to

 

the forecast level or the forecast price is amended by the next Budget or

 

pre-Budget Statement.”’.

 


 

Remote rural fuel discount scheme

 

John Thurso

 

Danny Alexander

 

Mr Charles Kennedy

 

Mr Alan Reid

 

Mr Alistair Carmichael

 

Sir Robert Smith

 

Total signatories: 7

 

NC14

 

To move the following Clause:—

 

‘(1)    

The Treasury shall by regulations provide for the introduction, by no later than 1

 

April 2009, of a remote rural fuel discount scheme.

 

(2)    

The purpose of the scheme is to provide a rebate on road fuel duty at qualifying

 

retail outlets in qualifying areas to reduce the premium paid for fuel in such areas

 

over the national average.

 

(3)    

Qualifying retail outlets under subsection (2) are outlets located in qualifying

 

areas meeting any criteria as defined under subsection (4).

 

(4)    

Qualifying areas are remote rural areas as may be defined by regulations under

 

subsection (4).

 

(5)    

Regulations under subsection (1) may—

 

(a)    

specify the amount of the fuel duty rebate;

 

(b)    

define “remote rural areas”;

 

(c)    

define qualifying retail outlets, including any restriction;

 

(d)    

specify how the rebate is to be applied, including—

 

(i)    

authorising HMRC to define procedures and conduct audits, and

 

(ii)    

how any administrative costs are to be defrayed;

 

(e)    

provide for it to be an offence for a person fraudulently to supply or sell

 

rebated fuel other than as proscribed by these regulations;

 

(f)    

provide for a system of registration of eligible retail outlets;


 
 

Consideration of Bill: 2nd July 2008                  

2939

 

Finance Bill, continued

 
 

(g)    

provide for the scheme to be administered in Scotland by the Scottish

 

Executive and in Wales by the Welsh Ministers.’.

 


 

amendments relating to clauses 15 and 7 and schedules 7 and 17

 

Mr Alan Reid

 

Mr Roger Williams

 

John Thurso

 

Sir Alan Beith

 

Mr David Heath

 

Tim Farron

 

Total signatories: 8

 

9

 

Page  8,  line  9  [Clause  15],  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—

 

“(4A)  

Condition D is that the vehicle is an off-road working

 

vehicle.”;

 

(c)    

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

 

““off-road working vehicle” means, subject to any provision which

 

may be made by the Treasury in regulations made by statutory

 

instrument, any vehicle which is used primarily for business

 

purposes off adopted roads,”.’.

 

Mr Jeremy Browne

 

Dr Vincent Cable

 

Mr Colin Breed

 

Dr John Pugh

 

7

 

Page  8,  line  21  [Clause  15],  leave out from ‘to’ to end of line 22 and insert ‘any

 

licence taken out in respect of a vehicle first acquired on or after 13 March 2008.

 

(7)    

In this section “first acquired”, in relation to a vehicle means acquisition when it

 

has not previously been owned.’.

 


 

Mr Chancellor of the Exchequer

 

22

 

Page  41,  line  38  [Clause  75],  at end insert ‘and

 

(b)    

in section 50(3) of ITTOIA 2005 (cases in which expenses incurred on

 

hiring car with low carbon dioxide emissions are not excluded from

 

section 48 of that Act), for “2008” substitute “2013”.’.

 

Mr Chancellor of the Exchequer

 

23

 

Page  41,  line  44  [Clause  75],  leave out ‘applies’ and insert ‘and section 50 of


 
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