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Committee of the whole House: 12 July 2010              

30

 

Finance Bill, continued

 
 

Mr Liam Byrne

 

Ms Angela Eagle

 

Stephen Timms

 

Mr Alistair Darling

 

38

 

Clause  3,  page  2,  line  16,  leave out subsection (5) and add—

 

‘(5)    

Schedule 3 to the Finance Act 2009 shall have effect for the purposes of

 

supplementing this section, with the following changes:

 

(a)    

in paragraph 1(2), “the date of the VAT change” shall be amended to

 

refer to 4 January 2011.

 

(b)    

in paragraph 8, the reference to section 839 of ICTA shall be amended to

 

refer to section 1122 of CTA 2010.

 

(c)    

omit paragraph 11.

 

(d)    

renumber paragraphs 12 and 13 as 11 and 12 respectively.

 

(e)    

insert new paragraph 13 as follows:

 

“Condition D cases involving hire purchase, conditional sale or credit sale of goods

 

13         

There is no supplementary charge under this Schedule on a supply of goods

 

within paragraph 2 if—

 

(a)    

the only relevant condition met is condition D,

 

(b)    

the VAT invoice—

 

(i)    

relates to a supply of goods made under a hire-puchase,

 

conditional sale or credit sale agreement,

 

(ii)    

forms part of that agreement, and

 

(iii)    

is issued in accordance with normal commercial practice in

 

relation to a supply made under such an agreement, and

 

(c)    

the basic time of supply of the goods is intended and expected to be

 

within 6 months of the date of the VAT invoice which relates to the

 

supply.”

 

(f)    

replace the existing paragraph 14 with the following:

 

“Normal commercial practice

 

14         

In this Part of this Schedule, “normal commercial practice”, in relation to a

 

supply or grant of a right, means—

 

(a)    

normal commercial practice of the supplier or grantor at a time when

 

an increase in the rate of VAT in force under section 2 of the VATA

 

1994 is not expected, or

 

(b)    

if the supplier or grantor has no such practice, the normal commercial

 

practice of suppliers making similar supplies, or granters granting

 

similar rights, in the United Kingdom at such a time.”.’.

 

Jon Trickett

 

Mr Dai Havard

 

Kelvin Hopkins

 

Jeremy Corbyn

 

Mrs Linda Riordan

 

Katy Clark

 

Richard Burden

 

Mr Clive Betts

 

Toby Perkins

 

Glenda Jackson

 

3

 

Clause  3,  page  2,  line  17,  at end add—


 
 

Committee of the whole House: 12 July 2010              

31

 

Finance Bill, continued

 
 

‘(6)    

In subsections (3) and (4) above “a specified date” means a date specified by the

 

Treasury by an order made by Statutory Instrument, which may not be made

 

until—

 

(a)    

an impact assessment of the effect of this section and Schedule 2 has been

 

laid before the House of Commons; and

 

(b)    

a draft of the order has been laid before, and approved by resolution of,

 

the House of Commons.’.

 

Chris Leslie

 

23

 

Clause  3,  page  2,  line  17,  at end add—

 

‘(6)    

The rate of value added tax shall remain at 17.5 per cent. on children’s prams,

 

cots, toys, high chairs, babies bottles, nappies, children’s sanitary products and

 

teething-related goods.’.

 

Owen Smith

 

25

 

Clause  3,  page  2,  line  17,  at end add—

 

‘(6)    

The Chancellor of the Exchequer must, prior to the introduction of the change to

 

the rate of VAT specified in subsection (1) above on the date specified in

 

subsections (3) and (4) above, compile and lay before the House of Commons a

 

report containing an assessment of the impact of the increase in VAT on—

 

(a)    

the disposable income of low-income households,

 

(b)    

people with physical and mental disabilities,

 

(c)    

the competiveness of the UK Retail Sector,

 

(d)    

the competiveness of the UK construction industry,

 

(e)    

the NHS, and

 

(f)    

local government.’.

 

Owen Smith

 

26

 

Clause  3,  page  2,  line  17,  at end add—

 

‘(6)    

The Chancellor of the Exchequer must, prior to the introduction of the change to

 

the rate of VAT specified in subsection (1) above on the date specified in

 

subsections (3) and (4) above, compile and lay before the House of Commons a

 

review of the administration and availability of existing rate reliefs for items used

 

by disabled people.’.

 

Owen Smith

 

27

 

Clause  3,  page  2,  line  17,  at end add—

 

‘(6)    

The rate of value added tax shall remain at 17.5% for those items subject to the

 

standard rate which are intended to alleviate disability and which are for the

 

exclusive personal use of a disabled person.’.

 

Owen Smith

 

28

 

Clause  3,  page  2,  line  17,  at end add—

 

‘(6)    

The rate of value added tax shall be increased to 30% for specified “luxury goods”

 

to include luxury yachts, non-military helicopters, watches, jewellery and cars.’.


 
 

Committee of the whole House: 12 July 2010              

32

 

Finance Bill, continued

 
 

Mr Liam Byrne

 

Ms Angela Eagle

 

Stephen Timms

 

Mr Alistair Darling

 

37

 

Clause  3,  page  2,  line  17,  at end add—

 

‘(6)    

In this section, “charity” has the same meaning as in the Charities Acts 1993 and

 

2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities

 

Act (Northern Ireland) 2008.’.

 

Mr Liam Byrne

 

Ms Angela Eagle

 

Stephen Timms

 

Mr Alistair Darling

 

40

 

Clause  3,  page  2,  line  17,  at end add—

 

‘(6)    

Before 4 January 2011 the Treasury shall lay a report before the House of

 

Commons on the scope of the standard rate of VAT.’.

 

Mr Liam Byrne

 

Ms Angela Eagle

 

Stephen Timms

 

Mr Alistair Darling

 

43

 

Clause  3,  page  2,  line  17,  at end add—

 

‘(6)    

The Treasury shall prepare a report into the impact of the rise provided for by

 

subsection (1) on—

 

(a)    

pensioners;

 

(b)    

children and child poverty;

 

(c)    

inequality;

 

(d)    

the bottom quintile of households by income;

 

(e)    

charities, and

 

(f)    

the informal economy,

 

    

in the United Kingdom and lay it before the House of Commons.’.

 

Mr Liam Byrne

 

Ms Angela Eagle

 

Stephen Timms

 

Mr Alistair Darling

 

44

 

Clause  3,  page  2,  line  17,  at end add—

 

‘(6)    

Should any change be made to delete any of the items currently listed in Schedule

 

8 of the Value Added Tax Act 1994 (zero rating), then provision shall be made

 

for the rate of VAT imposed by subsection (1) to be reduced. That reduction shall

 

be such as will ensure that the revenue generated by the changes to Schedule 8 are

 

balanced by revenue forgone by the reduction in the standard rate of VAT.’.

 

Mr Liam Byrne

 

Ms Angela Eagle

 

Stephen Timms

 

Mr Alistair Darling

 

45

 

Clause  3,  page  2,  line  17,  at end add—


 
 

Committee of the whole House: 12 July 2010              

33

 

Finance Bill, continued

 
 

‘(6)    

Should any change be made to delete any of the items currently listed in Schedule

 

9 of the Value Added Tax Act 1994 (Exemption), then provision shall be made

 

for the rate of VAT imposed by subsection (1) to be reduced. That reduction shall

 

be such as will ensure that the revenue generated by the changes to Schedule 9 are

 

balanced by revenue forgone by the reduction in the standard rate of VAT.’.

 

Mr Liam Byrne

 

Ms Angela Eagle

 

Stephen Timms

 

Mr Alistair Darling

 

46

 

Clause  3,  page  2,  line  17,  at end add—

 

‘(6)    

The Treasury shall prepare a report into the impact of the increase in VAT rate

 

provided for by subsection (1) on pensioners in the United Kingdom in 2010-11

 

and 2011-12; this report shall be prepared and laid before the House of Commons

 

prior to the Commons Committee stage of any further Finance Bill that is brought

 

before the House in the current Parliamentary session and shall propose ways in

 

which the pensioner population of the United Kingdom can be assisted in meeting

 

the additional costs imposed on them by the rise provided for in subsection (1).’.

 

Mr Liam Byrne

 

Ms Angela Eagle

 

Stephen Timms

 

Mr Alistair Darling

 

47

 

Clause  3,  page  2,  line  17,  at end insert—

 

‘(6)    

Before 1 October 2010 the Treasury must report to Parliament—

 

(a)    

assessing the impact on disabled persons of the amendment in subsection

 

(1) on items for people with disabilities other than supplies zero-rated by

 

Schedule 8, Part II, Group 12 of the Value Added Tax Act 1994 (drugs,

 

medicines and aids for the handicapped, etc), and

 

(b)    

recommending how the impact identified in paragraph (a) can be

 

mitigated.’.

 

Andrew George

 

Roger Williams

 

Mr Mark Williams

 

Mr David Ward

 

Mr John Leech

 

55

 

Parliamentary Star    

Clause  3,  page  2,  line  17,  at end add—

 

‘(6)    

Subsection (1) shall apply until 4 January 2013.’.

 

Andrew George

 

Roger Williams

 

Mr Mark Williams

 

Mr David Ward

 

Mr John Leech

 

56

 

Parliamentary Star    

Clause  3,  page  2,  line  17,  at end add—

 

‘(6)    

The amendment made in subsection (1) shall apply only to purchases of goods

 

and services at a cost of £25,000 or more, with the following exemptions:

 

(a)    

purchases made by registered charities;

 

(b)    

renovations of property;


 
 

Committee of the whole House: 12 July 2010              

34

 

Finance Bill, continued

 
 

(c)    

non-exempt fuel sold to permanent residents living at rural locations

 

which the Chancellor shall, by order, define.’.

 

Mr Liam Byrne

 

Ms Angela Eagle

 

Stephen Timms

 

Mr Alistair Darling

 

58

 

Parliamentary Star    

Clause  3,  page  2,  line  17,  at end add—

 

‘(6)    

The Treasury shall prepare a report into the impact of the rise provided for by

 

subsection (1) on mountain rescue services in the United Kingdom and lay it

 

before the House of Commons.’.

 


 

Jon Trickett

 

Mr Dai Havard

 

Kelvin Hopkins

 

Jeremy Corbyn

 

Mrs Linda Riordan

 

Katy Clark

 

Richard Burden

 

Mr Clive Betts

 

Toby Perkins

 

Glenda Jackson

 

4

 

Schedule  2,  page  11,  line  14,  leave out ‘4 January 2011’ and insert ‘the date

 

specified pursuant to section 3 of this Act’.

 

Mr Liam Byrne

 

Ms Angela Eagle

 

Stephen Timms

 

Mr Alistair Darling

 

39

 

Page  11,  line  1,  leave out Schedule 2.

 


 

Mr Christopher Chope

 

18

 

Clause  4,  page  2,  line  23,  leave out ‘“6 per cent”’ and insert ‘“5 per cent in the case

 

of personal health insurance, and 6 per cent in any other case”’.

 

Mr Christopher Chope

 

19

 

Clause  4,  page  2,  line  23,  leave out ‘“6 per cent”’ and insert ‘“5 per cent in the case

 

of motor insurance, and 6 per cent in any other case”’.


 
 

Committee of the whole House: 12 July 2010              

35

 

Finance Bill, continued

 
 

Stewart Hosie

 

Jonathan Edwards

 

Angus Robertson

 

Mr Elfyn Llwyd

 

Caroline Lucas

 

Mr Mike Weir

 

15

 

Clause  4,  page  2,  line  26,  at end add ‘, subject to a report having been laid by the

 

Secretary of State containing an assessment of the consequences of the changes in

 

subsection (1) on consumers and the insurance industry.’.

 

Mr Liam Byrne

 

Ms Angela Eagle

 

Stephen Timms

 

Mr Alistair Darling

 

48

 

Clause  4,  page  2,  line  32,  leave out subsection (4).

 

Chris Leslie

 

24

 

Clause  4,  page  2,  line  34,  at end add—

 

‘(5)    

The Secretary of State must report by the end of 2010 his assessment of the

 

benefits for taxpayers of advertising the Insurance Premium Tax rates in a more

 

prominent manner on all relevant insurance policy documentation.’.

 


 

Stewart Hosie

 

Jonathan Edwards

 

Angus Robertson

 

Mr Elfyn Llwyd

 

Caroline Lucas

 

Mr Mike Weir

 

16

 

Clause  6,  page  3,  line  12,  leave out ‘22 June 2010’ and insert ‘a date set by the

 

Secretary of State by regulation.’.

 


 

Stewart Hosie

 

Jonathan Edwards

 

Angus Robertson

 

Mr Elfyn Llwyd

 

Caroline Lucas

 

Mr Mike Weir

 

17

 

Schedule  3,  page  19,  line  38,  leave out ‘22 June 2010’ and insert ‘a date set by the

 

Secretary of State by regulation.’.

 



 
 

Committee of the whole House: 12 July 2010              

36

 

Finance Bill, continued

 
 

nEW cLAUSEs

 

Revenue forecasts for tax rate changes

 

Mr John Redwood

 

NC1

 

To move the following Clause:—

 

‘(1)    

When proposing future increases in rates of tax on income and capital the

 

Government shall bring forward a forecast of revenue following the change based

 

upon a dynamic model of the impact of the rate increase on taxpayer numbers and

 

behaviour.

 

(2)    

These models will be based on analysis of past behavioural changes and adjusted

 

in the light of experience.’.

 


 

Inquiry into a banking transactions tax

 

Caroline Lucas

 

Mr Graham Allen

 

Richard Burden

 

Jonathan Edwards

 

Hywel Williams

 

Mr Elfyn Llwyd

 

NC2

 

To move the following Clause:—

 

‘(1)    

It shall be the duty of the Chancellor of the Exchequer to appoint a committee of

 

inquiry to report within 6 months on the practical action necessary to introduce a

 

banking transactions tax.

 

(2)    

For the purposes of subsection (1), a banking transactions tax is a tax, charged at

 

the rate of 0.005 per cent of the value of the transaction, on—

 

(a)    

foreign exchange dealings in sterling, and

 

(b)    

derivative, swap, bond and over the counter trading,

 

    

where the economic substance of the transaction arises in the United Kingdom or

 

the place where the transaction is recorded is the United Kingdom.’.

 


 

The Office for Tax Responsibility

 

John McDonnell

 

NC3

 

To move the following Clause:—

 

‘(1)    

There shall be established The Office for Tax Responsibility.

 

(2)    

The Office for Tax Responsibility shall report to, but be independent of, the

 

Chancellor of the Exchequer and shall also be independent of Her Majesty’s

 

Treasury and Her Majesty’s Revenue and Customs (“HMRC”).


 
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