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7

 

SUPPLEMENT TO THE VOTES AND PROCEEDINGS

 
 

Tuesday 13 July 2010

 

Committee of the whole House

 

Proceedings

 

Finance Bill

 

[second day]

 

Stewart Hosie

 

Jonathan Edwards

 

Angus Robertson

 

Mr Elfyn Llwyd

 

Caroline Lucas

 

Mr Mike Weir

 

Negatived on division  13

 

Clause  3,  page  2,  line  7,  leave out subsection (1).

 

Andrew George

 

Roger Williams

 

Mr Mark Williams

 

Mr David Ward

 

Mr John Leech

 

Not called  54

 

Clause  3,  page  2,  line  7,  leave out ‘20’ and insert ‘18’.

 

Andrew George

 

Roger Williams

 

Mr Mark Williams

 

Mr David Ward

 

Mr John Leech

 

Withdrawn  57

 

Clause  3,  page  2,  line  8,  at end insert—

 

‘(1A)    

The amendment made in subsection (1) shall not apply to:

 

(a)    

purchases of goods or services made by registered charities;

 

(b)    

purchases of goods or services made by public authorities;

 

(c)    

renovations of dwellings in council tax bands of F or below; and

 

(d)    

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

 

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

 

Chris Leslie

 

Not called  22

 

Clause  3,  page  2,  line  8,  at end insert—

 

‘(2)    

Subsection (1) shall apply until 4 January 2012.’.

 
 

Committee of the whole House Proceedings: 13 July 2010      

8

 

Finance Bill, continued

 
 

Stewart Hosie

 

Jonathan Edwards

 

Angus Robertson

 

Mr Elfyn Llwyd

 

Caroline Lucas

 

Mr Mike Weir

 

Not called  14

 

Clause  3,  page  2,  line  9,  leave out subsection (2).

 

Mr Liam Byrne

 

Ms Angela Eagle

 

Stephen Timms

 

Mr Alistair Darling

 

Negatived on division  35

 

Clause  3,  page  2,  line  11,  at beginning insert ‘Subject to subsection (3A) below,’.

 

Jon Trickett

 

Mr Dai Havard

 

Kelvin Hopkins

 

Jeremy Corbyn

 

Mrs Linda Riordan

 

Katy Clark

 

Mr Michael Meacher

 

Not called  1

 

Clause  3,  page  2,  line  12,  after ‘made’, insert ‘on or after a specified date’.

 

Mr Liam Byrne

 

Ms Angela Eagle

 

Stephen Timms

 

Mr Alistair Darling

 

Negatived on division  41

 

Clause  3,  page  2,  line  13,  at end insert ‘unless the report referred to in subsection

 

(6) has not been completed, in which case the date shall be 4 January 2012.’.

 

Mr Liam Byrne

 

Ms Angela Eagle

 

Stephen Timms

 

Mr Alistair Darling

 

Not called  36

 

Clause  3,  page  2,  line  13,  at end insert—

 

‘(3A)    

The amendment made by subsection (1) shall not have effect in relation to any

 

supply made on or after 4 January 2011 to a charity where such supply is made to

 

that charity solely in relation to its charitable non-business activities.’.

 

Jon Trickett

 

Mr Dai Havard

 

Kelvin Hopkins

 

Jeremy Corbyn

 

Mrs Linda Riordan

 

Katy Clark

 

Mr Michael Meacher

 

Not called  2

 

Clause  3,  page  2,  line  15,  after ‘imported’, insert ‘on or after a specified date’.

 
 

Committee of the whole House Proceedings: 13 July 2010      

9

 

Finance Bill, continued

 
 

Mr Liam Byrne

 

Ms Angela Eagle

 

Stephen Timms

 

Mr Alistair Darling

 

Not called  42

 

Clause  3,  page  2,  line  15,  at end insert ‘unless the report referred to in subsection

 

(6) has not been completed, in which case the date shall be 4 January 2012.’.

 

Mr Liam Byrne

 

Ms Angela Eagle

 

Stephen Timms

 

Mr Alistair Darling

 

Withdrawn  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.”.’.

 
 

Committee of the whole House Proceedings: 13 July 2010      

10

 

Finance Bill, continued

 
 

Jon Trickett

 

Mr Dai Havard

 

Kelvin Hopkins

 

Jeremy Corbyn

 

Mrs Linda Riordan

 

Katy Clark

 

Mr Michael Meacher

 

Not called  3

 

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

 

‘(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

 

Not called  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

 

Not called  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

 

Withdrawn  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

 

Not called  27

 

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

 
 

Committee of the whole House Proceedings: 13 July 2010      

11

 

Finance Bill, continued

 
 

‘(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

 

Not selected  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.’.

 

Mr Liam Byrne

 

Ms Angela Eagle

 

Stephen Timms

 

Mr Alistair Darling

 

Not called  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

 

Not called  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

 

Not called  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

 

Not selected  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

 
 

Committee of the whole House Proceedings: 13 July 2010      

12

 

Finance Bill, continued

 
 

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

 

Not selected  45

 

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

 

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

 

Negatived on division  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

 

Not called  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

 

Not called  55

 

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

 

‘(6)    

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

 
 

Committee of the whole House Proceedings: 13 July 2010      

13

 

Finance Bill, continued

 
 

Andrew George

 

Roger Williams

 

Mr Mark Williams

 

Mr David Ward

 

Mr John Leech

 

Not called  56

 

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;

 

(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

 

Negatived on division  58

 

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.’.

 

Clause Agreed to on division.

 

 

Jon Trickett

 

Mr Dai Havard

 

Kelvin Hopkins

 

Jeremy Corbyn

 

Mrs Linda Riordan

 

Katy Clark

 

Mr Michael Meacher

 

Not called  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

 

Not selected  39

 

Page  11,  line  1,  leave out Schedule 2.

 

Schedule Agreed to.

 

Progress reported.

 
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