25 Mar 2014 : Column 258
25 Mar 2014 : Column 259
25 Mar 2014 : Column 260
25 Mar 2014 : Column 261
That,—
(1) It is expedient to amend the law with respect to the National Debt and the public revenue and to make further provision in connection with finance.
(2) This Resolution does not extend to the making of any amendment with respect to value added tax so as to provide:
(a) for zero-rating or exempting a supply, acquisition or importation;
(b) for refunding an amount of tax;
25 Mar 2014 : Column 262
(c) for any relief, other than a relief that:
(i) so far as it is applicable to goods, applies to goods of every description, and
(ii) so far as it is applicable to services, applies to services of every description.
The Deputy Speaker put forthwith the Questions necessary to dispose of the motions made in the name of the Chancellor of the Exchequer (Standing Order No. 51(3)).
2. Income tax (charge and main rates etc)
That—
(1) Income tax is charged for the tax year 2014-15.(2) For that tax year—
(b) the higher rate is 40%, and
(c) the additional rate is 45%.
(3) For that tax year—
(a) the amount specified in section 10(5) of the Income Tax Act 2007 (basic rate limit) is replaced with “£31,865”, and
(b) the amount specified in section 35(1) of that Act (personal allowance for those born after 5 April 1948) is replaced with “£10,000”.
(4) Accordingly for that tax year—
(a) section 21 of that Act (indexation of limits), so far as relating to the basic rate limit, does not apply, and
(b) section 57 of that Act (indexation of allowances), so far as relating to the amount specified in section 35(1) of that Act, does not apply.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
3. Corporation tax (charge for financial year 2015)
That corporation tax is charged for the financial year 2015.
The House divided:
Ayes 308, Noes 239.
Division No. 237]
[
7.15 pm
AYES
Adams, Nigel
Afriyie, Adam
Alexander, rh Danny
Amess, Mr David
Andrew, Stuart
Arbuthnot, rh Mr James
Bacon, Mr Richard
Baker, Norman
Baker, Steve
Baldry, rh Sir Tony
Barclay, Stephen
Barker, rh Gregory
Baron, Mr John
Bebb, Guto
Beith, rh Sir Alan
Bellingham, Mr Henry
Benyon, Richard
Bingham, Andrew
Birtwistle, Gordon
Blackman, Bob
Blackwood, Nicola
Blunt, Crispin
Boles, Nick
Bone, Mr Peter
Bottomley, Sir Peter
Bradley, Karen
Brady, Mr Graham
Brake, rh Tom
Bray, Angie
Brazier, Mr Julian
Bridgen, Andrew
Brine, Steve
Brokenshire, James
Brooke, Annette
Browne, Mr Jeremy
Buckland, Mr Robert
Burley, Mr Aidan
Burns, Conor
Burns, rh Mr Simon
Burrowes, Mr David
Burstow, rh Paul
Burt, rh Alistair
Burt, Lorely
Cable, rh Vince
Cairns, Alun
Campbell, rh Sir Menzies
Carmichael, rh Mr Alistair
Carswell, Mr Douglas
Cash, Mr William
Chishti, Rehman
Chope, Mr Christopher
Clappison, Mr James
Clark, rh Greg
Clifton-Brown, Geoffrey
Coffey, Dr Thérèse
Collins, Damian
Cox, Mr Geoffrey
Crabb, Stephen
Crockart, Mike
Crouch, Tracey
Davey, rh Mr Edward
Davies, David T. C.
(Monmouth)
Davies, Glyn
Davies, Philip
Davis, rh Mr David
de Bois, Nick
Dinenage, Caroline
Djanogly, Mr Jonathan
Dodds, rh Mr Nigel
Dorrell, rh Mr Stephen
Dorries, Nadine
Doyle-Price, Jackie
Drax, Richard
Duddridge, James
Duncan Smith, rh Mr Iain
Ellis, Michael
Ellison, Jane
Ellwood, Mr Tobias
Elphicke, Charlie
Eustice, George
Evans, Graham
Evans, Jonathan
Evennett, Mr David
Fabricant, Michael
Fallon, rh Michael
Featherstone, Lynne
Field, Mark
Foster, rh Mr Don
Francois, rh Mr Mark
Freeman, George
Freer, Mike
Fullbrook, Lorraine
Fuller, Richard
Gale, Sir Roger
Garnier, Sir Edward
Garnier, Mark
Gauke, Mr David
George, Andrew
Gibb, Mr Nick
Gilbert, Stephen
Gillan, rh Mrs Cheryl
Glen, John
Goldsmith, Zac
Goodwill, Mr Robert
Gove, rh Michael
Graham, Richard
Grant, Mrs Helen
Gray, Mr James
Grayling, rh Chris
Green, rh Damian
Greening, rh Justine
Grieve, rh Mr Dominic
Griffiths, Andrew
Gummer, Ben
Gyimah, Mr Sam
Hague, rh Mr William
Halfon, Robert
Hames, Duncan
Hammond, Stephen
Hancock, Matthew
Hands, rh Greg
Harper, Mr Mark
Harrington, Richard
Harris, Rebecca
Hart, Simon
Harvey, Sir Nick
Haselhurst, rh Sir Alan
Hayes, rh Mr John
Heald, Oliver
Heath, Mr David
Heaton-Harris, Chris
Hemming, John
Henderson, Gordon
Hendry, Charles
Herbert, rh Nick
Hermon, Lady
Hinds, Damian
Hoban, Mr Mark
Hollingbery, George
Hollobone, Mr Philip
Holloway, Mr Adam
Hopkins, Kris
Howarth, Sir Gerald
Howell, John
Hughes, rh Simon
Hunter, Mark
Huppert, Dr Julian
Hurd, Mr Nick
Jackson, Mr Stewart
James, Margot
Javid, Sajid
Jenkin, Mr Bernard
Johnson, Gareth
Jones, Andrew
Jones, rh Mr David
Jones, Mr Marcus
Kawczynski, Daniel
Kelly, Chris
Kennedy, rh Mr Charles
Kirby, Simon
Knight, rh Sir Greg
Kwarteng, Kwasi
Lamb, Norman
Lancaster, Mark
Lansley, rh Mr Andrew
Leadsom, Andrea
Lee, Jessica
Lee, Dr Phillip
Leech, Mr John
Leigh, Sir Edward
Leslie, Charlotte
Lewis, Brandon
Lewis, Dr Julian
Liddell-Grainger, Mr Ian
Lilley, rh Mr Peter
Long, Naomi
Lopresti, Jack
Loughton, Tim
Macleod, Mary
Maude, rh Mr Francis
Maynard, Paul
McCartney, Jason
McCartney, Karl
McCrea, Dr William
McIntosh, Miss Anne
McLoughlin, rh Mr Patrick
McPartland, Stephen
McVey, rh Esther
Menzies, Mark
Metcalfe, Stephen
Mills, Nigel
Milton, Anne
Mitchell, rh Mr Andrew
Moore, rh Michael
Mordaunt, Penny
Morgan, Nicky
Morris, James
Mosley, Stephen
Mowat, David
Mulholland, Greg
Mundell, rh David
Munt, Tessa
Murray, Sheryll
Murrison, Dr Andrew
Neill, Robert
Newmark, Mr Brooks
Newton, Sarah
Nokes, Caroline
Norman, Jesse
Nuttall, Mr David
O'Brien, rh Mr Stephen
Offord, Dr Matthew
Ollerenshaw, Eric
Opperman, Guy
Osborne, rh Mr George
Ottaway, rh Sir Richard
Paice, rh Sir James
Parish, Neil
Patel, Priti
Paterson, rh Mr Owen
Pawsey, Mark
Penning, rh Mike
Penrose, John
Percy, Andrew
Perry, Claire
Phillips, Stephen
Pickles, rh Mr Eric
Pincher, Christopher
Poulter, Dr Daniel
Prisk, Mr Mark
Pritchard, Mark
Pugh, John
Raab, Mr Dominic
Randall, rh Sir John
Reckless, Mark
Redwood, rh Mr John
Reevell, Simon
Reid, Mr Alan
Rifkind, rh Sir Malcolm
Robathan, rh Mr Andrew
Robertson, Mr Laurence
Rogerson, Dan
Rosindell, Andrew
Rudd, Amber
Ruffley, Mr David
Rutley, David
Sanders, Mr Adrian
Sandys, Laura
Scott, Mr Lee
Selous, Andrew
Shannon, Jim
Shapps, rh Grant
Shelbrooke, Alec
Shepherd, Sir Richard
Simmonds, Mark
Simpson, David
Simpson, Mr Keith
Skidmore, Chris
Smith, Chloe
Smith, Henry
Smith, Julian
Smith, Sir Robert
Soames, rh Nicholas
Soubry, Anna
Spelman, rh Mrs Caroline
Spencer, Mr Mark
Stanley, rh Sir John
Stevenson, John
Stewart, Bob
Stewart, Iain
Stewart, Rory
Streeter, Mr Gary
Stride, Mel
Stunell, rh Sir Andrew
Sturdy, Julian
Swales, Ian
Swayne, rh Mr Desmond
Swire, rh Mr Hugo
Syms, Mr Robert
Tapsell, rh Sir Peter
Thurso, John
Timpson, Mr Edward
Tomlinson, Justin
Tredinnick, David
Truss, Elizabeth
Turner, Mr Andrew
Uppal, Paul
Vara, Mr Shailesh
Vickers, Martin
Walker, Mr Charles
Walker, Mr Robin
Walter, Mr Robert
Watkinson, Dame Angela
Weatherley, Mike
Wharton, James
Wheeler, Heather
Whittingdale, Mr John
Wiggin, Bill
Williams, Mr Mark
Williams, Roger
Williams, Stephen
Williamson, Gavin
Wilson, Mr Rob
Wright, Jeremy
Wright, Simon
Yeo, Mr Tim
Young, rh Sir George
Zahawi, Nadhim
Tellers for the Ayes:
Harriett Baldwin
and
Gavin Barwell
NOES
Abbott, Ms Diane
Ainsworth, rh Mr Bob
Alexander, rh Mr Douglas
Alexander, Heidi
Ali, Rushanara
Allen, Mr Graham
Ashworth, Jonathan
Austin, Ian
Bain, Mr William
Balls, rh Ed
Banks, Gordon
Barron, rh Kevin
Beckett, rh Margaret
Begg, Dame Anne
Benn, rh Hilary
Benton, Mr Joe
Berger, Luciana
Betts, Mr Clive
Blackman-Woods, Roberta
Blears, rh Hazel
Blenkinsop, Tom
Blomfield, Paul
Blunkett, rh Mr David
Bradshaw, rh Mr Ben
Brennan, Kevin
Brown, Lyn
Brown, rh Mr Nicholas
Brown, Mr Russell
Bryant, Chris
Buck, Ms Karen
Burden, Richard
Burnham, rh Andy
Byrne, rh Mr Liam
Campbell, rh Mr Alan
Campbell, Mr Ronnie
Caton, Martin
Champion, Sarah
Chapman, Jenny
Clark, Katy
Clarke, rh Mr Tom
Clwyd, rh Ann
Coaker, Vernon
Coffey, Ann
Connarty, Michael
Cooper, Rosie
Cooper, rh Yvette
Corbyn, Jeremy
Crausby, Mr David
Creasy, Stella
Cruddas, Jon
Cryer, John
Cunningham, Mr Jim
Curran, Margaret
Dakin, Nic
Danczuk, Simon
Darling, rh Mr Alistair
David, Wayne
Davidson, Mr Ian
Davies, Geraint
De Piero, Gloria
Denham, rh Mr John
Dobbin, Jim
Dobson, rh Frank
Docherty, Thomas
Doran, Mr Frank
Dowd, Jim
Doyle, Gemma
Dromey, Jack
Dugher, Michael
Eagle, Ms Angela
Eagle, Maria
Edwards, Jonathan
Efford, Clive
Elliott, Julie
Ellman, Mrs Louise
Engel, Natascha
Esterson, Bill
Evans, Chris
Farrelly, Paul
Field, rh Mr Frank
Fitzpatrick, Jim
Flello, Robert
Flynn, Paul
Fovargue, Yvonne
Francis, Dr Hywel
Gapes, Mike
Gardiner, Barry
Gilmore, Sheila
Glass, Pat
Glindon, Mrs Mary
Godsiff, Mr Roger
Greatrex, Tom
Green, Kate
Greenwood, Lilian
Griffith, Nia
Gwynne, Andrew
Hain, rh Mr Peter
Hamilton, Mr David
Hanson, rh Mr David
Harman, rh Ms Harriet
Harris, Mr Tom
Havard, Mr Dai
Healey, rh John
Hendrick, Mark
Heyes, David
Hillier, Meg
Hilling, Julie
Hodgson, Mrs Sharon
Hoey, Kate
Hood, Mr Jim
Hopkins, Kelvin
Howarth, rh Mr George
Hunt, Tristram
Irranca-Davies, Huw
Jackson, Glenda
James, Mrs Siân C.
Jamieson, Cathy
Jarvis, Dan
Johnson, rh Alan
Johnson, Diana
Jones, Graham
Jones, Helen
Jones, Mr Kevan
Jones, Susan Elan
Jowell, rh Dame Tessa
Kane, Mike
Kaufman, rh Sir Gerald
Keeley, Barbara
Kendall, Liz
Lammy, rh Mr David
Lavery, Ian
Lazarowicz, Mark
Leslie, Chris
Lewell-Buck, Mrs Emma
Llwyd, rh Mr Elfyn
Love, Mr Andrew
Lucas, Caroline
Lucas, Ian
MacNeil, Mr Angus Brendan
Mactaggart, Fiona
Mahmood, Mr Khalid
Mahmood, Shabana
Malhotra, Seema
Mann, John
Marsden, Mr Gordon
McCabe, Steve
McCarthy, Kerry
McClymont, Gregg
McDonagh, Siobhain
McDonald, Andy
McDonnell, John
McFadden, rh Mr Pat
McGovern, Alison
McGovern, Jim
McGuire, rh Mrs Anne
McKenzie, Mr Iain
McKinnell, Catherine
Meacher, rh Mr Michael
Meale, Sir Alan
Miliband, rh Edward
Miller, Andrew
Mitchell, Austin
Moon, Mrs Madeleine
Morden, Jessica
Morrice, Graeme
(Livingston)
Morris, Grahame M.
(Easington)
Mudie, Mr George
Munn, Meg
Murphy, rh Mr Jim
Murphy, rh Paul
Murray, Ian
Nandy, Lisa
Nash, Pamela
Onwurah, Chi
Osborne, Sandra
Owen, Albert
Pearce, Teresa
Perkins, Toby
Pound, Stephen
Powell, Lucy
Qureshi, Yasmin
Raynsford, rh Mr Nick
Reed, Mr Jamie
Reed, Mr Steve
Reeves, Rachel
Reynolds, Emma
Riordan, Mrs Linda
Robertson, Angus
Robertson, John
Robinson, Mr Geoffrey
Rotheram, Steve
Roy, Mr Frank
Roy, Lindsay
Ruane, Chris
Ruddock, rh Dame Joan
Sarwar, Anas
Sawford, Andy
Seabeck, Alison
Sharma, Mr Virendra
Sheerman, Mr Barry
Sheridan, Jim
Shuker, Gavin
Skinner, Mr Dennis
Slaughter, Mr Andy
Smith, rh Mr Andrew
Smith, Angela
Smith, Nick
Smith, Owen
Spellar, rh Mr John
Straw, rh Mr Jack
Stringer, Graham
Stuart, Ms Gisela
Sutcliffe, Mr Gerry
Tami, Mark
Thomas, Mr Gareth
Thornberry, Emily
Timms, rh Stephen
Trickett, Jon
Twigg, Derek
Twigg, Stephen
Umunna, Mr Chuka
Vaz, rh Keith
Vaz, Valerie
Walley, Joan
Watson, Mr Tom
Watts, Mr Dave
Weir, Mr Mike
Whiteford, Dr Eilidh
Whitehead, Dr Alan
Williams, Hywel
Wilson, Phil
Winnick, Mr David
Winterton, rh Ms Rosie
Wishart, Pete
Wood, Mike
Woodcock, John
Woodward, rh Mr Shaun
Wright, David
Wright, Mr Iain
Tellers for the Noes:
Stephen Doughty
and
Bridget Phillipson
Question accordingly agreed to.
25 Mar 2014 : Column 263
25 Mar 2014 : Column 264
25 Mar 2014 : Column 265
25 Mar 2014 : Column 266
4. Corporation tax (small profits rate and fractions for financial year 2014)
That—
(1) For the financial year 2014 the small profits rate is—
(a) 20% on profits of companies other than ring fence profits, and
(b) 19% on ring fence profits of companies.
(2) For the purposes of Part 3 of the Corporation Tax Act 2010, for that year—
(a) the standard fraction is 1/400th, and
(b) the ring fence fraction is 11/400ths.
(3) In paragraph (1) “ring fence profits” has the same meaning as in Part 8 of that Act (see section 276 of that Act).
5. Corporation tax (rates for ring fence profits from 2015)
That provision may be made about the rates of corporation tax on ring fence profits (within the meaning of Part 8 of the Corporation Tax Act 2010) for the financial year 2015 and subsequent years.
6. Corporation tax (marginal relief)
25 Mar 2014 : Column 267
That provision may be made about marginal relief in relation to corporation tax.
7. Profits arising from the exploitation of patents etc
That provision may be made about small claims treatment under Chapter 3 of Part 8A of the Corporation Tax Act 2010.
8. Capital allowances
That provision may be made about capital allowances.
9. Capital gains tax (annual exempt amount)
That provision may be made about the annual exempt amount for the purposes of capital gains tax.
10. Remittance basis
That provision may be made in relation to the taxation of employment income on the remittance basis.
11. Treatment of agency workers
That—
(1) Chapter 7 of Part 2 of the Income Tax (Earnings and Pensions) Act 2003 (income tax treatment of agency workers) is amended as follows.(2) For section 44 (treatment of workers supplied by agencies) substitute—
“44 Treatment of workers supplied by agencies
(1) This section applies if—
(a) an individual (“the worker”) personally provides services (which are not excluded services) to another person (“the client”),
(b) there is a contract between—
(i) the client or a person connected with the client, and
(ii) a person other than the worker, the client or a person connected with the client (“the agency”), and
(c) under or in consequence of that contract—
(i) the services are provided, or
(ii) the client or any person connected with the client pays, or otherwise provides consideration, for the services.
(2) But this section does not apply if—
(a) it is shown that the manner in which the worker provides the services is not subject to (or to the right of) supervision, direction or control by any person, or
(b) remuneration receivable by the worker in consequence of providing the services constitutes employment income of the worker apart from this Chapter.
(3) If this section applies—
(a) the worker is to be treated for income tax purposes as holding an employment with the agency, the duties of which consist of the services the worker provides to the client, and
(b) all remuneration receivable by the worker (from any person) in consequence of providing the services is to be treated for income tax purposes as earnings from that employment, but this is subject to subsections (4) to (6).
25 Mar 2014 : Column 268
(4) Subsection (5) applies if (whether before or after the worker begins to provide the services)—
(a) the client provides the agency with a fraudulent document which is intended to constitute evidence that, by virtue of subsection (2)(a), this section does not or will not apply, or
(b) a relevant person provides the agency with a fraudulent document which is intended to constitute evidence that, by virtue of subsection (2)(b), this section does not or will not apply.
(5) In relation to services the worker provides to the client after the fraudulent document is provided—
(a) subsection (3) does not apply,
(b) the worker is to be treated for income tax purposes as holding an employment with the client or (as the case may be) with the relevant person, the duties of which consist of the services, and
(c) all remuneration receivable by the worker (from any person) in consequence of providing the services is to be treated for income tax purposes as earnings from that employment.
(6) In subsections (4) and (5) “relevant person” means a person, other than the client, the worker or a person connected with the client or with the agency, who—
(a) is resident, or has a place of business, in the United Kingdom, and
(b) is party to a contract with the agency or a person connected with the agency, under or in consequence of which—
(i) the services are provided, or
(ii) the agency, or a person connected with the agency, makes payments in respect of the services.”
(3) In section 45 (arrangements with agencies)—
(a) in paragraph (a), omit “(“the agency”)”, and
(b) in paragraph (b), omit “with the agency”.
(4) In section 46 (cases involving unincorporated bodies etc)—
(a) in subsection (1)(a), omit “, or is under an obligation to personally provide,”, and
(b) in subsection (2), for the words from “under” to “contract” substitute “in consequence of the worker providing the services”.
(5) After section 46 insert—
46A Anti-avoidance
(1) This section applies if—
(a) an individual (“W”) personally provides services (which are not excluded services) to another person (“C”),
(b) a third person (“A”) enters into arrangements the main purpose, or one of the main purposes, of which is to secure that the services are not treated for income tax purposes under section 44 as duties of an employment held by W with A, and
(c) but for this section, section 44 would not apply in relation to the services.
(2) In subsection (1)(b) “arrangements” include any scheme, transaction or series of transactions, agreement or understanding, whether or not legally enforceable, and any associated operations.(3) Subject to subsection (2) of section 44, that section applies in relation to the services.(4) For the purposes of subsection (3)—
(a) W is to be treated as being the worker,
(b) C is to be treated as being the client,
(c) A is to be treated as being the agency, and
(d) section 44 has effect as if subsections (4) to (6) of that section were omitted.”
(6) In section 47 (interpretation of Chapter 7), omit subsection (1).
25 Mar 2014 : Column 269
(7) In Chapter 3 of Part 11 of that Act (PAYE: special types of payer or payee), section 688 (agency workers) is amended as follows.(8) For subsection (1) substitute—
“(1) This section applies if the remuneration receivable by an individual in consequence of providing services falls to be treated under section 44 (agency workers) as earnings from an employment.
(1A) The relevant provisions have effect as if the individual held the employment with or under the deemed employer, subject to subsection (2).
(1B) For the purposes of sections 687, 689 and 689A, if—
(a) a person other than the deemed employer or an intermediary of the deemed employer makes a payment of, or on account of, PAYE income of the individual, and
(b) the payment is not within subsection (2),
the person is to be treated as making the payment as an intermediary of the deemed employer.”
(9) In subsection (2)—
(a) for paragraph (a) (and the “and” at the end of that paragraph) substitute—
“(a) the client is not the deemed employer, and”, and
(b) for “agency” substitute “deemed employer”.
(10) In subsection (3), for the words from “subsections” to “44;” substitute “this section—“the client” means the person who is the client for the purposes of section 44;
“the deemed employer” means the person with whom the individual is treated under section 44 as having an employment, the duties of which consist of the services;”.
(11) The amendments made by this Resolution come into force on 6 April 2014.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
12. Recovery of PAYE debts of companies etc
That provision may be made for, and in connection with, the recovery of amounts to be deducted, or accounted for, by a company or limited liability partnership under PAYE regulations, from persons involved in the management of the company or partnership.
13. Payments by employer on account of tax where deduction not possible
That—
(1) In section 222 of the Income Tax (Earnings and Pensions) Act 2003 (payments by employer on account of tax where deduction not possible), in subsection (1)(c), for “beginning with the relevant date” substitute “after the end of the tax year in which the relevant date falls”.(2) The amendment made by this Resolution has effect in relation to payments of income treated as made on or after 6 April 2014.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
14. PAYE obligations of UK intermediary in cases involving non-UK employer
That—
(1) Section 689 of the Income Tax (Earnings and Pensions) Act 2003 (PAYE: employee of non-UK employer) is amended as follows.
25 Mar 2014 : Column 270
(2) After subsection (1A) insert—
“(1B) Subsection (1C) applies if—
(a) the employee worked for the relevant person during the period under or in consequence of arrangements made between the relevant person and a third person,
(b) the third person did not make the payment of, or on account of, PAYE income of the employee, and
(c) PAYE regulations would apply to the third person if the third person were to make a payment of, or on account of, PAYE income of the employee.
(1C) The third person is to be treated, for the purposes of PAYE regulations, as making a payment of PAYE income of the employee of an amount equal to the amount given by subsection (3).”
(3) In subsection (2), for “The” substitute “If subsection (1C) does not apply, the”.(4) The amendments made by this Resolution come into force on 6 April 2014.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
15. Oil and gas workers on the continental shelf (operation of PAYE)
That—
(1) The Income Tax (Earnings and Pensions) Act 2003 is amended as follows.(2) In section 222 (payments by employer on account of tax where deduction not possible)—
(a) in subsection (1)(a), after “689” insert “, 689A”, and
(b) in subsection (3), after “employer)” insert “or section 689A(3) (deemed payments of PAYE income of continental shelf workers by person other than employer)”.
(3) In section 689 (provision about PAYE for employees of non-UK employers), after subsection (1) insert—
“(1ZA) But this section does not apply if section 689A applies or would apply but for a certificate issued under regulations made under subsection (7) of that section.”
(4) After that section insert—
“689A Oil and gas workers on the continental shelf
(1) This section applies if—
(a) any payment of, or on account of, PAYE income of a continental shelf worker in respect of a period is made by a person who is the employer or an intermediary of the employer or of the relevant person,
(b) PAYE regulations do not apply to the person making the payment or, if that person makes the payment as an intermediary of the employer or of the relevant person, to the employer, and
(c) income tax and any relevant debts are not deducted, or not accounted for, in accordance with PAYE regulations by the person making the payment or, if that person makes the payment as an intermediary of the employer or of the relevant person, by the employer.
(2) Subject to subsection (5), subsection (1)(a) does not apply in relation to a payment so far as the sum paid is employment income under Chapter 2 of Part 7A.(3) The relevant person is to be treated, for the purposes of PAYE regulations, as making a payment of PAYE income of the continental shelf worker of an amount equal to the amount given by subsection (4).(4) The amount referred to is—
(a) if the amount of the payment actually made is an amount to which the recipient is entitled after deduction of income tax and any relevant debts under PAYE regulations, the aggregate of the amount of the payment and the amount of any income tax due and any relevant debts deductible, and
(b) in any other case, the amount of the payment.
25 Mar 2014 : Column 271
(5) If, by virtue of any of sections 687A and 693 to 700, an employer would be treated for the purposes of PAYE regulations (if they applied to the employer) as making a payment of any amount to a continental shelf worker, this section has effect as if—
(a) the employer were also to be treated for the purposes of this section as making an actual payment of that amount, and
(b) paragraph (a) of subsection (4) were omitted.
(6) For the purposes of this section a payment of, or on account of, PAYE income of a continental shelf worker is made by an intermediary of the employer or of the relevant person if it is made—
(a) by a person acting on behalf of the employer or the relevant person and at the expense of the employer or the relevant person or a person connected with the employer or the relevant person, or
(b) by trustees holding property for any persons who include, or a class of persons which includes, the continental shelf worker.
(7) PAYE regulations may make provision for, or in connection with, the issue by Her Majesty’s Revenue and Customs of a certificate to a relevant person in respect of one or more continental shelf workers—
(a) confirming that, in respect of payments of, or on account of, PAYE income of the continental shelf workers specified or described in the certificate, income tax and any relevant debts are being deducted, or accounted for, as mentioned in subsection (1)(c), and
(b) disapplying this section in relation to payments of, or on account of, PAYE income of those workers while the certificate is in force.
(8) Regulations under subsection (7) may, in particular, make provision about—
(a) applying for a certificate;
(b) the circumstances in which a certificate may, or must, be issued or cancelled;
(c) the form and content of a certificate;
(d) the effect of a certificate (including provision modifying the effect mentioned in subsection (7)(b) or specifying further effects);
(e) the effect of cancelling a certificate.
(9) Subsection (10) applies if—
(a) there is more than one relevant person in relation to a continental shelf worker, and
(b) in consequence of the same payment within subsection (1)(a), each of them is treated under subsection (3) as making a payment of PAYE income of the worker.
(10) If one of the relevant persons complies with section 710 (notional payments: accounting for tax) in respect of the payment that person is treated as making, the other relevant persons do not have to comply with that section in respect of the payments they are treated as making.(11) In this section—
“continental shelf worker” means a person in an employment some or all of the duties of which are performed—
(a) in the UK sector of the continental shelf (as defined in section 41), and
(b) in connection with exploration or exploitation activities (as so defined);
“employer” means the employer of the continental shelf worker;
“relevant person”, in relation to a continental shelf worker, means—
(a) if the employer has an associated company (as defined in section 449 of CTA 2010) with a place of business or registered office in the United Kingdom, the associated company, or
25 Mar 2014 : Column 272
(b) in any other case, the person who holds the licence under Part 1 of the Petroleum Act 1998 in respect of the area of the UK sector of the continental shelf where some or all of the duties of the continental shelf worker’s employment are performed.”
(5) In section 690 (employee non-resident etc), in subsection (10)—
(a) after “689”, in the first place it appears, insert “or 689A”, and
(b) after “689”, in the second place it appears, insert “or (as the case may be) 689A”.
(6) In section 710 (notional payments: accounting for tax), in subsection (2)—
(i) after “689” insert “, 689A”, and
(ii) for “or 689(3)(a)” substitute “, 689(3)(a) or 689A(4)(a)”, and
(b) in paragraph (b), after “689(2)” insert “or 689A(3)”.
(7) The amendment made by paragraph (4) comes into force—
(a) on 26 March 2014 for the purposes of making regulations under section 689A(7) of the Income Tax (Earnings and Pensions) Act 2003, and
(b) on 6 April 2014 for remaining purposes.
(8) The amendments made by paragraphs (2), (3), (5) and (6) come into force on 6 April 2014.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
16. PAYE (general)
That provision may be made amending Part 11 of the Income Tax (Earnings and Pensions) Act 2003 (Pay As You Earn).
17. Threshold for benefit of loan to be treated as earnings
That—
(1) In section 180 of the Income Tax (Earnings and Pensions) Act 2003 (threshold for benefit of a loan to be treated as earnings), in subsections (1)(a) and (b), (2) and (3), for “£5,000” (wherever occurring) substitute “£10,000”.(2) The amendments made by this Resolution have effect for the tax year 2014-15 and subsequent tax years (and apply to loans made at any time).
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
18. Taxable benefits (cars, vans and related benefits)
That—
(1) In section 114 of the Income Tax (Earnings and Pensions) Act 2003 (cars, vans and related benefits), omit subsection (3) (which prevents a charge by virtue of Chapter 6 of Part 3 of that Act where an amount constitutes earnings by virtue of any other provision).(2) The amendment made by this Resolution has effect for the tax year 2014-15 and subsequent tax years.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
25 Mar 2014 : Column 273
19. Taxable benefits (payments for private use: cars and vans)
That—
(1) In section 144 of the Income Tax (Earnings and Pensions) Act 2003 (deduction for payments for private use: cars), for subsection (1)(b) substitute—
“(b) pays that amount in that year.”
(2) In section 158 of that Act (reduction for payments for private use: vans), for subsection (1)(b) substitute—
“(b) pays that amount in that year.”
(3) The amendments made by this Resolution have effect for the tax year 2014-15 and subsequent tax years.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
20. Venture capital trusts
That provision may be made amending Part 6 of the Income Tax Act 2007.
21. Loan relationships and derivatives
That provision (including provision having retrospective effect) may be made amending Parts 5, 6 and 7 of the Corporation Tax Act 2009.
22. Transfer of corporate profits
That provision may be made about the calculation of profits for corporation tax purposes in cases involving arrangements which result in what is, in substance, a transfer of the profits of the business of one company to another company.
23. Video games development
That provision may be made about tax relief for video games development.
24. Community amateur sports clubs
That provision may be made about gifts to community amateur sports clubs.
25. Financing costs and income
That provision (including provision having retrospective effect) may be made amending Part 7of the Taxation (International and Other Provisions) Act 2010.
26. Pension flexibility
That—
(1) In section 165(1) of the Finance Act 2004 (rules about payment of pension by registered scheme to member) in pension rule 5 (payments of drawdown pension in a year not to exceed 120% of basis amount for year) for “120%” substitute “150%”.(2) In section 167(1) of that Act (rules about payment of pension death benefits by registered scheme in respect of member) in pension death benefit rule 4 (payments of dependants’ drawdown pension not to exceed 120% of basis amount for year) for “120%” substitute “150%”.
25 Mar 2014 : Column 274
(3) In paragraph 14A(2) of Schedule 28 to that Act (amount of minimum income requirement for flexible drawdown by member) for “£20,000” substitute “£12,000”.(4) In paragraph 24C(2) of Schedule 28 to that Act (amount of minimum income requirement for flexible drawdown by dependant) for “£20,000” substitute “£12,000”.(5) In paragraph 7(4) of Schedule 29 to that Act (amount of commutation limit for purposes of trivial commutation lump sum) for “£18,000” substitute “£30,000”.(6) In paragraph 8 of Schedule 29 to that Act (value of crystallised pension rights for trivial commutation purposes)—
(a) in sub-paragraph (1)(a) omit “, as adjusted under sub-paragraph (2)”,
(b) in sub-paragraph (1)(b) omit “, as adjusted under sub-paragraph (3)”, and
(c) omit sub-paragraphs (2) and (3), as originally enacted and as substituted by the Finance Act 2013.
(7) In consequence of paragraphs (1) and (2), in the Finance Act 2013 omit section 50(1) and (2).(8) In consequence of paragraph (5), in the Finance Act 2011 omit paragraph 4(2) of Schedule 18.(9) In consequence of paragraph (6)(c), in the Finance Act 2013 omit paragraph 8(4) of Schedule 22.(10) In article 23C(4) of the Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572) (modifications of Schedule 29 to the Finance Act 2004) in the inserted paragraph 7A(1)(a) (limit at or below which additional sums can be trivial commutation lump sums) for “£2,000” substitute “£10,000”.(11) In the Registered Pension Schemes (Authorised Payments) Regulations 2009 (S.I. 2009/1171)—
(a) in each of regulations 6(1)(b), 8(1)(a), 11(1)(c), 11A(1)(b) and 12(1)(e) (limit at or below which certain payments by registered pension scheme can be authorised payments) for “£2,000” substitute “£10,000”,
(b) in regulation 10(3)(b) (certain payments by registered pension scheme which can be authorised payments if value of member’s pension rights is not more than £18,000) for “£18,000” substitute “£30,000”,
(c) in regulation 11(1)(d) (upper limit on total value of member’s benefits under the scheme which would make the payment and all related schemes) for “£2,000” substitute “£10,000”,
(d) in regulation 11A(2) (may not be more than one previous payment under regulation 11A) for “one payment” substitute “two payments”, and
(e) in regulation 12(4) (certain payments by registered pension scheme can be authorised payments only if property held in respect of at least 20 members exceeds £2,000) for “£2,000” substitute “£10,000”.
(12) In consequence of paragraph (11)(b), in the Registered Pension Schemes (Miscellaneous Amendments) Regulations 2011 (S.I. 2011/1751) omit regulation 8(4).(13) The amendments made by paragraphs (1), (2) and (7) have effect in relation to pension drawdown years beginning on or after 27 March 2014.(14) The amendment made by paragraph (3) has effect in relation to declarations made under section 165(3A) of the Finance Act 2004 on or after 27 March 2014.(15) The amendment made by paragraph (4) has effect in relation to declarations made under section 167(2A) of the Finance Act 2004 on or after 27 March 2014.(16) The amendments made by paragraphs (5), (6), (8) and (9) have effect for commutation periods beginning on or after 27 March 2014 and do so irrespective of whether the nominated date is before, on or after 27 March 2014.(17) The amendment made by paragraph (10) has effect for lump sums paid on or after 27 March 2014.(18) The amendments made by paragraphs (11) and (12) have effect for payments made on or after 27 March 2014.
25 Mar 2014 : Column 275
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
27. Taxable specific income (effect on pension input amount for non-UK schemes)
That—
(1) Schedule 34 to the Finance Act 2004 (application of certain charges to non-UK pension schemes) is amended as follows.(2) In paragraph 10 (pension input amount for cash balance and defined benefits arrangements), for sub-paragraph (2) substitute—
“(2) The appropriate fraction is—
EI is the total amount of employment income of the individual from any relevant employment or employments for the tax year, excluding any such income which is exempt income (within the meaning of section 8 of ITEPA 2003),
TE is so much of EI as constitutes taxable earnings from any such employment (within the meaning of section 10(2) of that Act), and
TSI is so much of EI as constitutes taxable specific income from any such employment (within the meaning of section 10(3) to (5) of that Act).”
(3) In paragraph 11 (pension input amount for other money purchase arrangements), for subparagraph (2) substitute—
“(2) The appropriate fraction is—
EI is the total amount of employment income of the individual from any employment or employments with the employer for the tax year, excluding any such income which is exempt income (within the meaning of section 8 of ITEPA 2003),
TE is so much of EI as constitutes taxable earnings from any such employment (within the meaning of section 10(2) of that Act), and
TSI is so much of EI as constitutes taxable specific income from any such employment (within the meaning of section 10(3) to (5) of that Act).”
(4) The amendments made by this Resolution have effect for the tax year 2014-2015 and subsequent tax years.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
28. Pension schemes (general)
That provision may be made in relation to pension schemes.
29. Pension schemes (registration of pension schemes etc)
That—
(1) Part 4 of the Finance Act 2004 (pension schemes etc) is amended as follows.(2) Section 153 (applications for registration) is amended as follows.(3) In subsection (4) for “On” substitute “Following”.
25 Mar 2014 : Column 276
(4) In subsection (5) for paragraphs (a) and (b) substitute—
“(a) any information falling within subsection (5A) is inaccurate in a material respect,
(b) any document falling within subsection (5B) contains a material inaccuracy,
(c) any declaration accompanying the application is false, (d) the scheme administrator has failed to comply with an information notice under section 153A given in connection with the application (including any declaration accompanying it),
(e) the scheme administrator has deliberately obstructed an officer of Revenue and Customs in the course of an inspection under section 153B carried out in connection with the application (including any declaration accompanying it) where the inspection has been approved by the tribunal,
(f) the pension scheme has not been established, or is not being maintained, wholly or mainly for the purpose of making payments falling within section 164(1)(a) or (b) (authorised payments of pensions and lump sums), or
(g) the person who is, or any of the persons who are, the scheme administrator is not a fit and proper person to be, as the case may be—
(i) the scheme administrator, or
(ii) one of the persons who are the scheme administrator.”
(5) After subsection (5) insert—
“(5A) The information falling within this subsection is any information—
(a) contained in the application, or
(b) otherwise provided to an officer of Revenue and Customs by the scheme administrator (whether under section 153A or otherwise) in connection with the application (including any declaration accompanying it).
(5B) The documents falling within this subsection are any documents produced to an officer of Revenue and Customs by the scheme administrator (whether under section 153A or otherwise) in connection with the application (including any declaration accompanying it).
(5C) The reference in subsection (5)(d) to the scheme administrator having failed to comply with an information notice under section 153A includes a case where the scheme administrator has concealed, destroyed or otherwise disposed of, or has arranged for the concealment, destruction or disposal of, a document in breach of paragraph 42 or 43 of Schedule 36 to the Finance Act 2008 as applied by section 153A(3).”
(6) After section 153 insert—
“153A Power to require information or documents in relation to applications for registration
(1) This section applies where an application for a pension scheme to be registered is made.
(2) An officer of Revenue and Customs may by notice (an “information notice”) require the scheme administrator or any other person—
(a) to provide the officer with any information, or
(b) to produce a document to the officer, if the officer reasonably requires the information or document in connection with the application (including any declaration accompanying it).
(3) Paragraphs 6(2), 7, 8, 15, 16, 18 to 20, 23 to 27, 42 and 43 of Schedule 36 to the Finance Act 2008 (information notices etc) apply in relation to information notices under this section as they apply in relation to information notices under that Schedule.
(4) Where an information notice under this section is given to a person other than the scheme administrator, an officer of Revenue and Customs must give a copy of the notice to the scheme administrator.
(5) A person, other than the scheme administrator, who is given an information notice under this section may appeal against the notice or any requirement in the notice.
25 Mar 2014 : Column 277
(6) Paragraph 32 of Schedule 36 to the Finance Act 2008 (procedures for appeals against information notices) applies for the purposes of an appeal under subsection (5) as it applies for the purposes of an appeal under Part 5 of that Schedule.
153B Power to inspect documents in relation to applications for registration
(1) This section applies where an application for a pension scheme to be registered is made.
(2) An officer of Revenue and Customs may—
(a) enter any business premises of the scheme administrator or any other person, and
(b) inspect documents that are on the premises, if the officer reasonably requires to inspect the documents in connection with the application (including any declaration accompanying it).
(3) In subsection (2)(a) “business premises” has the meaning given by paragraph 10(3) of Schedule 36 to the Finance Act 2008 (power to inspect business premises etc).
(4) Paragraphs 10(2), 12, 15 and 16 of Schedule 36 to the Finance Act 2008 apply in relation to the power of inspection conferred by this section as they apply in relation to the power of inspection conferred by paragraph 10 of that Schedule.
(5) An officer of Revenue and Customs may not inspect a document under this section if or to the extent that, by virtue of a provision of Part 4 of Schedule 36 to the Finance Act 2008 (restrictions on powers) applied by section 153A(3), an information notice under section 153A given at the time of the inspection to the occupier of the premises could not require the occupier to produce the document.
(6) An officer of Revenue and Customs may ask the tribunal to approve an inspection under this section.
(7) Paragraph 13(1A), (2) and (3) of Schedule 36 to the Finance Act 2008 (approval of tribunal for inspections) applies in relation to an application under subsection (6) as it applies in relation to an application under paragraph 13 of that Schedule in relation to an inspection under paragraph 10 of that Schedule.
153C Penalties for failure to comply with information notices etc
(1) This section applies where a person other than the scheme administrator—
(a) fails to comply with an information notice under section 153A, or
(b) deliberately obstructs an officer of Revenue and Customs in the course of an inspection under section 153B that has been approved by the tribunal.
(2) The reference in subsection (1)(a) to a person who fails to comply with an information notice includes a person who conceals, destroys or otherwise disposes of, or arranges for the concealment, destruction or disposal of, a document in breach of paragraph 42 or 43 of Schedule 36 to the Finance Act 2008 as applied by section 153A(3).
(3) Paragraphs 39(2), 40 and 44 to 49 of Schedule 36 to the Finance Act 2008 (penalties for failure to comply with information notice etc) apply in relation to the failure or obstruction as they apply in relation to a failure or obstruction mentioned in paragraph 39(1) of that Schedule.
153D Penalties for inaccurate information in applications
(1) This section applies where—
(a) an application under section 153 contains information which is inaccurate,
(b) the inaccuracy is material, and
(c) condition A, B or C is met.
(2) Condition A is that the inaccuracy is careless or deliberate.
(3) An inaccuracy is careless if it is due to a failure by the scheme administrator to take reasonable care.
(4) Condition B is that the scheme administrator knows of the inaccuracy at the time the application is made but does not inform an officer of Revenue and Customs at that time.
25 Mar 2014 : Column 278
(5) Condition C is that the scheme administrator—
(a) discovers the inaccuracy some time later, and
(b) fails to take reasonable steps to inform an officer of Revenue and Customs.
(6) The scheme administrator is liable to a penalty not exceeding the maximum penalty for which the scheme administrator could have been liable under paragraph 40A of Schedule 36 to the Finance Act 2008 (penalties for inaccurate information and documents) had that paragraph applied in relation to the inaccuracy.
(7) Where the information contains more than one material inaccuracy, a penalty is payable for each inaccuracy.
(8) Paragraphs 46 to 49 of Schedule 36 to the Finance Act 2008 (assessment of penalties etc) apply in relation to a penalty under this section as they apply in relation to a penalty under paragraph 40A of that Schedule.
153E Penalties for inaccurate information or documents provided under information notice
(1) This section applies where—
(a) in complying with an information notice under section 153A, a person provides inaccurate information or produces a document that contains an inaccuracy, and
(b) the inaccuracy is material.
(2) Paragraphs 40A and 46 to 49 of Schedule 36 to the Finance Act 2008 (penalties for inaccurate information and documents) apply in relation to the inaccuracy as they apply in relation to an inaccuracy connected with an information notice under that Schedule.
153F Penalties for false declarations
(1) This section applies where—
(a) a declaration accompanying an application under section 153 is false, and
(b) at least one of conditions A to C in section 153D is met (reading references to an inaccuracy as references to a falsehood and references to the scheme administrator as references to the person who made the declaration).
(2) The person who made the declaration is liable to a penalty not exceeding the maximum penalty for which the person could have been liable under paragraph 40A of Schedule 36 to the Finance Act 2008 (penalties for inaccurate information and documents) had that paragraph applied in relation to the falsehood.
(3) Where the declaration contains more than one falsehood, a penalty is payable in relation to each falsehood.
(4) Paragraphs 46 to 49 of Schedule 36 to the Finance Act 2008 (assessment of penalties etc) apply in relation to a penalty under this section as they apply in relation to a penalty under paragraph 40A of that Schedule.”
“156A Cases where application for registration not decided within 6 months
(1) This section applies where—
(a) an application for a pension scheme to be registered is made, but
(b) the scheme administrator is not notified under section 153(6) within the period of 6 months after the day on which the application is made.
(2) The scheme administrator may appeal to the tribunal as if, at the end of that period of 6 months, the scheme administrator had been notified under section
153(6) of a decision not to register the scheme; and section 156(5) to (8) applies accordingly.”
(8) Section 158 (grounds for de-registration) is amended as follows.
(a) before paragraph (a) insert—
25 Mar 2014 : Column 279
“(za) that the pension scheme has not been established, or is not being maintained, wholly or mainly for the purpose of making payments falling within section 164(1)(a) or (b) (authorised payments of pensions and lump sums),”,
(b) in paragraph (d) for “incorrect” substitute “inaccurate”,
(c) after paragraph (d) insert—
“(da) that the scheme administrator fails to produce any document required to be produced to an officer of Revenue and Customs by virtue of this Part or Part 1 of Schedule 36 to the Finance Act 2008,
(db) that any document produced to an officer of Revenue and Customs by the scheme administrator contains a material inaccuracy in relation to which at least one of conditions A to C in subsections (7) to (10) is met,”, and
(d) for paragraph (e) substitute—
“(e) that any declaration accompanying the application to register the pension scheme, or otherwise made to an officer of Revenue and Customs in connection with the pension scheme, is false in a material particular,
(ea) the scheme administrator has deliberately obstructed an officer of Revenue and Customs in the course of an inspection under Part 2 of Schedule 36 to the Finance Act 2008 that has been approved by the tribunal, or”.
(10) After subsection (5) insert—
“(6) Subsections (7) to (10) apply for the purposes of subsection (1)(db).
(7) Condition A is that the inaccuracy is careless or deliberate.
(8) An inaccuracy is careless if it is due to a failure by the scheme administrator to take reasonable care.
(9) Condition B is that the scheme administrator knows of the inaccuracy at the time the document is produced to an officer of Revenue and Customs but does not inform such an officer at that time.
(10) Condition C is that the scheme administrator—
(a) discovers the inaccuracy some time later, and
(b) fails to take reasonable steps to inform an officer of Revenue and Customs.”
(11) The amendments made by this Resolution come into force on 20 March 2014.(12) The amendments made by paragraphs (2) to (7) have effect in relation to applications made on or after that date.(13) In relation to an application made before 1 September 2014, section 153(5) of the Finance Act 2004 (as amended by paragraph (4)) has effect with the omission of paragraph (g).(14) The amendments made by paragraphs (8) to (10) have effect in relation to pension schemes whenever registered (including schemes registered by virtue of paragraph 1 of Schedule 36 to the Finance Act 2004 (deemed registration of existing schemes)).
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
30. Pension schemes (surrender)
That—
(1) Part 4 of the Finance Act 2004 (pension schemes etc) is amended as follows.(2) Section 172A (payments by registered pension schemes: surrender) is amended as follows.(3) In subsection (5) omit paragraph (d).(4) After subsection (5) insert—
“(5A) Subsection (5)(b) applies only if the entitlement is held (or is to be held) by the dependant under an arrangement under the pension scheme relating to the member or dependant.”
25 Mar 2014 : Column 280
(5) In section 207 (authorised surplus payments charge) after subsection (6) insert—
“(6A) Subsection (1) does not apply to an authorised surplus payment to the extent that the payment is funded (directly or indirectly) by a surrender of (or an agreement to surrender) benefits or rights which results in the registered pension scheme being treated as making an unauthorised payment under section 172A.
(6B) Terms used in subsection (6A) which are defined in section 172A have the same meaning as they have in that section.”
(6) The amendments made by this Resolution have effect in relation to surrenders (or agreements to surrender) made on or after 20 March 2014.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
31. Glasgow Grand Prix
That—
(1) An accredited competitor who performs a Grand Prix activity is not liable to income tax in respect of any income arising from the activity if the non-residence condition is met.(2) The following are Grand Prix activities—
(a) competing at the Glasgow Grand Prix, and
(b) any activity that is performed during the games period the main purpose of which is to support or promote the Glasgow Grand Prix.
(3) The non-residence condition is that—
(a) the accredited competitor is non-UK resident for the tax year 2014-15, or
(b) the accredited competitor is UK resident for the tax year 2014-15 but the year is a split year as respects the competitor and the activity is performed in the overseas part of the year.
(4) Section 966 of the Income Tax Act 2007 (deduction of sums representing income tax) does not apply to any payment or transfer which gives rise to income benefiting from the exemption under paragraph (1).(5) In this Resolution—
“accredited competitor” means a person to whom an accreditation card in the athletes’ category has been issued by the company named UK Athletics Limited which was incorporated on 16 December 1998;
“the games period” means the period—
(a) beginning with 5 July 2014, and
“the Glasgow Grand Prix” means the Glasgow Grand Prix athletics event held at Hampden Park Stadium in Glasgow in July 2014;
“income” means employment income or profits of a trade, profession or vocation (including profits treated as arising as a result of section 13 of the Income Tax (Trading and Other Income) Act 2005).
(6) This Resolution comes into force on 6 April 2014.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
32. Share incentive plans (increases in maximum annual awards etc)
That—
(1) Schedule 2 to the Income Tax (Earnings and Pensions) Act 2003 (share incentive plans) is amended as follows.
25 Mar 2014 : Column 281
(2) In paragraph 35(1) (free shares: maximum annual award) for “£3,000” substitute “£3,600”. (3) In paragraph 46(1) (partnership shares: maximum amount of deductions from employee’s salary) for “£1,500” substitute “£1,800”.(4) The amendments made by this Resolution come into force on 6 April 2014.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
33. Share incentive plans (general)
That provision may be made amending the SIP code.
34. Employee share schemes
That the provision made by the Schedule to the 2014 Budget Resolution No 34 (Employee shareschemes) shall have effect.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
The Schedule to the 2014 Budget Resolution No 34 is available in Votes and Proceedings.
35. Employment-related securities and employment-related securities options
That provision may be made in relation to employment-related securities and employment-related securities options.
36. Corporation tax relief in relation to employee share acquisitions
That provision may be made about corporation tax relief in relation to employee share acquisitions.
37. Chargeable gains (private residences)
That provision may be made in relation to relief under section 223 of the Taxation of Chargeable Gains Act 1992.
38. Intangible fixed assets
That provision may be made in respect of the corporation tax treatment of intangible fixed assets.
39. Avoidance involving losses
That provision (including provision having retrospective effect) may be made amending sections 184G and 184H of the Taxation of Chargeable Gains Act 1992.
40. Oil taxation (restriction of field allowance)
That provision (including provision having retrospective effect) may be made amending Chapter 7 of Part 8 of the Corporation Tax Act 2010.
25 Mar 2014 : Column 282
41. Substantial shareholder exemption
That provision may be made amending Schedule 7AC to the Taxation of Chargeable Gains Act 1992.
42. Partnerships and limited liability partnerships (general)
That provision (including provision having retrospective effect) may be made in relation topartnerships and limited liability partnerships.
43. Limited liability partnerships (treatment of salaried members)
That—
(1) In Part 9 of the Income Tax (Trading and Other Income) Act 2005 (partnerships) after section 863 (limited liability partnerships) insert—
“863A Limited liability partnerships: salaried members
(1) Subsection (2) applies at any time when conditions A to C in sections 863B to863D are met in the case of an individual (“M”) who is a member of a limited liability partnership in relation to which section 863(1) applies.
(2) For the purposes of the Income Tax Acts—
(a) M is to be treated as being employed by the limited liability partnership under a contract of service instead of being a member of the partnership, and
(b) accordingly, M’s rights and duties as a member of the limited liability partnership are to be treated as rights and duties under that contract of service.
(3) This section needs to be read with section 863G (anti-avoidance).
863B Condition A
(1) The question of whether condition A is met is to be determined at the following times—
(a) if relevant arrangements are in place—
(i) at the beginning of the tax year 2014-15, or
(ii) if later, when M becomes a member of the limited liability partnership,
at the time mentioned in sub-paragraph (i) or (ii) (as the case may be);
(b) at any subsequent time when relevant arrangements are put in place or modified;
(i) the question has previously been determined, and
(ii) the relevant arrangements which were in place at the time of the previous determination do not end, and are not modified, by the end of the period which was the relevant period for the purposes of the previous determination (see step 1 in subsection (3)), immediately after the end of that period.
(2) “Relevant arrangements” means arrangements under which amounts are to be, or may be, payable by the limited liability partnership in respect of M’s performance of services for the partnership in M’s capacity as a member of the partnership.
(3) Take the following steps to determine whether condition A is met at a time (“the relevant time”).
Identify the relevant period by reference to the relevant arrangements which are in place at the relevant time.
“The relevant period” means the period—
(a) beginning with the relevant time, and
(b) ending at the time when, as at the relevant time, it is reasonable to expect that the relevant arrangements will end or be modified.
25 Mar 2014 : Column 283
Condition A is met if, at the relevant time, it is reasonable to expect that at least 80% of the total amount payable by the limited liability partnership in respect of M’s performance during the relevant period of services for the partnership in M’s capacity as a member of the partnership will be disguised salary.
An amount within the total amount is “disguised salary” if it—
(b) is variable, but is varied without reference to the overall amount of the profits or losses of the limited liability partnership, or
(c) is not, in practice, affected by the overall amount of those profits or losses.
(4) If condition A is determined to be met, or not to be met, at a time, the condition is to be treated as met, or as not met, at all subsequent times until the question is required to be re-determined under subsection (1)(b) or (c).
(5) In this section “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).
863C Condition B
Condition B is that the mutual rights and duties of the members of the limited liability partnership, and of the partnership and its members, do not give M significant influence over the affairs of the partnership.
863D Condition C
(1) Condition C is that, at the time at which it is being determined whether the condition is met (“the relevant time”), M’s contribution to the limited liability partnership (see sections 863E and 863F) is less than 25% of the amount given by subsection (2) (subject to subsection (7)).
(2) That amount is the total amount of the disguised salary which, at the relevant time, it is reasonable to expect will be payable by the limited liability partnership in respect of M’s performance during the relevant tax year of services for the partnership in M’s capacity as a member of the partnership.
In this section “the relevant tax year” means the tax year in which the relevant time falls and an amount is “disguised salary” if it falls within any of paragraphs (a) to (c) at step 2 in section 863B(3).
(3) The question of whether condition C is met is to be determined—
(a) at the beginning of the tax year 2014-15 or, if later, the time at which M becomes a member of the limited liability partnership;
(b) after that, at the beginning of each tax year.
(a) there is a change in M’s contribution to the limited liability partnership, or
(b) there is otherwise a change of circumstances which might affect the question of whether condition C is met,
the question of whether the condition is met is to be re-determined at the time of the change.
This subsection is subject to section 863F(3).
(5) If condition C is determined to be met (including by virtue of subsection (7)), or not to be met, at the relevant time, the condition is to be treated as met, or as not met, at all subsequent times until the question is required to be re-determined under subsection (3)(b) or (4).
(6) Subsection (7) applies if—
(a) the relevant time coincides with an increase in M’s contribution to the limited liability partnership, and
(b) apart from subsection (7), that increase would cause condition C not to be met at the relevant time.
25 Mar 2014 : Column 284
(7) Condition C is to be treated as met at the relevant time unless, at that time, it is reasonable to expect that condition C will not be met for the remainder of the relevant tax year (ignoring this subsection).
(8) If there are any excluded days in the relevant tax year (see subsections (9) to (11)), in subsection (1) the reference to M’s contribution to the limited liability partnership is to be read as a reference to that contribution multiplied by the following fraction—
D is the number of days in the relevant tax year, and
E is the number of excluded days in the relevant tax year.
(9) Any day in the relevant tax year—
(a) which is before the day on which the relevant time falls, and
(b) on which M is not a member of the limited liability partnership, is an “excluded” day for the purposes of subsection (8).
(10) If, at the relevant time, it is reasonable to expect that M will not be a member of the limited liability partnership for the remainder of the relevant tax year, any day in the relevant tax year—
(a) which is after the day on which the relevant time falls, and
(b) on which it is reasonable to expect that M will not be a member of the limited liability partnership,
is an “excluded” day for the purposes of subsection (8).
(11) If the relevant time coincides with an increase in M’s contribution to the limited liability partnership, any day in the relevant tax year—
(a) which is before the day on which the relevant time falls, and
(b) on which condition C is met, is an “excluded” day for the purposes of subsection (8).
(12) In subsections (6) and (11) references to an increase in M’s contribution to the limited liability partnership include (in particular)—
(a) the making of M’s first contribution to the capital of the limited liability partnership, and
(b) M being treated as having made a contribution by section 863F(2).
863E M’s contribution to the limited liability partnership: the basic calculation
(1) For the purposes of condition C in section 863D M’s contribution to the limited liability partnership at a time is amount A.
(2) Amount A is the total amount which M has contributed to the limited liability partnership as capital less so much of that amount (if any) as is within subsection (6).
(3) In particular, M’s share of any profits of the limited liability partnership is to be included in the amount which M has contributed to the partnership as capital so far as that share has been added to the partnership’s capital.
(4) In subsection (3) the reference to profits is to profits calculated in accordance with generally accepted accounting practice (before any adjustment required or authorised by law in calculating profits for income tax purposes).
(5) Subsection (3) applies as well for the purpose of construing references to contributions to the capital of the limited liability partnership in sections 863D(12)(a) and 863F.
(6) An amount of capital is within this subsection if it is an amount which—
(a) M has previously drawn out or received back,
(b) M is or may be entitled to draw out or receive back at any time when M is a member of the limited liability partnership, or
25 Mar 2014 : Column 285
(c) M is or may be entitled to require another person to reimburse to M.
(7) In subsection (6) any reference to drawing out or receiving back an amount is to doing so directly or indirectly.
863F M’s contribution to the limited liability partnership: deemed contributions
(a) by the time mentioned in section 863D(3)(a), M has given an undertaking (whether or not legally enforceable) to make a contribution to the capital of the limited liability partnership but has not made the contribution,
(b) the undertaking requires M to make the contribution by the end of—
(i) the period of 3 months ending with 5 July 2014, or
(ii) if it ends after that date, the period of 2 months beginning with the date on which M becomes a member of the limited liability partnership, and
(c) when it is made, the contribution will be included in amount A under section 863E.
In the following subsections “the relevant period” means the period mentioned in paragraph (b)(i) or (ii) (as the case may be).
(2) For the purpose of determining whether condition C in section 863D is met—
(a) at the time mentioned in section 863D(3)(a), or
(b) at any subsequent time during the relevant period,
M is to be treated as having made the contribution at the time mentioned in section 863D(3)(a) (so far as M has not (actually) made the contribution at the time at which it is being determined whether condition C is met).
(3) If M (actually) makes the contribution (in whole or in part) during the relevant period, the question of whether condition C is met is not to be re-determined under section 863D(4) just because of the making of the contribution (in whole or in part).
(4) If M does not (actually) make the contribution (in whole or in part) by the end of the relevant period, any determination in relation to which subsection (2) applied is to be made again (as at the time at which it was originally made).
(5) In making a determination again—
(a) if it is the whole of the contribution which M does not make by the end of the relevant period, subsection (2) is to be ignored;
(b) if M makes part of the contribution by the end of the relevant period, in subsection (2) references to the contribution are to be read as references to that part of it.
863G Anti-avoidance
(1) In determining whether section 863A(2) applies in the case of an individual who is a member of a limited liability partnership, no regard is to be had to any arrangements the main purpose, or one of the main purposes, of which is to secure that section 863A(2) does not apply in the case of—
(b) the individual and one or more other individuals.
(2) Subsection (4) applies if—
(a) an individual (“X”) personally performs services for a limited liability partnership at a time when X is not a member of the partnership,
(b) X performs the services under arrangements involving a member of the limited liability partnership (“Y”) who is not an individual,
(c) the main purpose, or one of the main purposes, of those arrangements is to secure that section 863A(2) does not apply in the case of X or in the case of X and one or more other individuals, and
25 Mar 2014 : Column 286
(d) in relation to X’s performance of the services, an amount falling within subsection (3) arises to Y in respect of Y’s membership of the limited liability partnership.
(3) An amount falls within this subsection if—
(a) were X performing the services under a contract of service by which X were employed by the limited liability partnership, and
(b) were the amount to arise to X directly from the limited liability partnership,
the amount would be employment income of X in respect of the employment.
(4) If this subsection applies, in relation to X’s performance of the services, X is to be treated on the following basis—
(a) X is a member of the limited liability partnership in whose case section 863A(2) applies,
(b) the amount arising to Y arises instead to X directly from the limited liability partnership,
(c) that amount is employment income of X in respect of the employment under section 863A(2) accordingly, and
(d) neither that amount, nor any amount representing that amount, is to be income of X for income tax purposes on any other basis.
(5) In this section “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).”
(2) In Part 17 of the Corporation Tax Act 2009 (partnerships) after section 1273 (limited liability partnerships) insert—
“1273A Limited liability partnerships: salaried members
(1) Subsection (2) applies at any time when section 863A(2) of ITTOIA 2005 (limited liability partnerships: salaried members) applies in the case of an individual (“M”) who is a member of a limited liability partnership in relation to which section 1273(1) applies.
(2) In relation to the charge to corporation tax on income, for the purposes of the Corporation Tax Acts—
(a) M is to be treated as being employed by the limited liability partnership under a contract of service instead of being a member of the partnership, and
(b) accordingly, M’s rights and duties as a member of the limited liability partnership are to be treated as rights and duties under that contract of service.”
(3) The Income Tax (Trading and Other Income) Act 2005 is amended as follows.(4) At the end of Chapter 5 of Part 2 (trade profits: rules allowing deductions) insert—
“Limited liability partnerships: salaried members
94AA Deductions in relation to salaried members
(1) This section applies in relation to a limited liability partnership if section 863A(2) (limited liability partnerships: salaried members) applies in the case of a member of the partnership (“M”).
(2) In calculating for a period of account under section 849 (calculation of firm’s profits and losses) the profits of a trade carried on by the limited liability partnership, a deduction is allowed for expenses paid by the partnership in respect of M’s employment under section 863A(2) if no deduction would otherwise be allowed for the payment.
(3) This section is subject to section 33 (capital expenditure), section 34 (expenses not wholly and exclusively for trade etc), section 45 (business entertainment and gifts) and section 53 (social security contributions).”
(5) In Chapter 3 of Part 3 (profits of property businesses: basic rules), in the table in section 272(2) (application of trading income rules), after the entry for section 94A insert—
25 Mar 2014 : Column 287
|
Deductions in relation to salaried of limited liability partnerships” |
(6) The Corporation Tax Act 2009 is amended as follows.(7) At the end of Chapter 5 of Part 3 (trade profits: rules allowing deductions) insert—
“Limited liability partnerships: salaried members
92A Deductions in relation to salaried members
(1) This section applies in relation to a limited liability partnership if section 1273A(2) (limited liability partnerships: salaried members) applies in the case of a member of the partnership (“M”).
(2) In calculating for an accounting period under section 1259 (calculation of firm’s profits and losses) the profits of a trade carried on by the limited liability partnership, a deduction is allowed for expenses paid by the partnership in respect of M’s employment under section 1273A(2) if no
deduction would otherwise be allowed for the payment.
(3) This section is subject to—
(a) section 53 (capital expenditure),
(b) section 54 (expenses not wholly and exclusively for trade etc),
(c) section 1298 (business entertainment and gifts), and
(d) section 1302 (social security contributions).”
(8) In Chapter 3 of Part 4 (profits of property businesses: basic rules), in the table in section 210(2) (application of trading income rules), after the entry for section 92 insert—
|
Deductions in relation to salaried members of limited liability partnerships” |
(9) In Chapter 2 of Part 16 (companies with investment business: management expenses)—
(a) in section 1224(1) (accounting period to which expenses are referable) for “1227” substitute “1227A”, and
(b) after section 1227 insert—
“1227A Management expenses in relation to salaried members of limited liability partnerships
(1) This section applies in relation to a company if—
(a) as a member of a limited liability partnership, the company is a company with investment business,
(b) section 1273A(2) (limited liability partnerships: salaried members) applies in the case of a member of the partnership (“M”), and
(c) expenses of management of the company’s investment business are paid in respect of M’s employment under section 1273A(2) but are not referable to any accounting period under sections 1225 to 1227.
(2) The expenses are to be treated as referable to the accounting period in which they are paid.”
(10) In Chapter 8 of Part 2 of the Income Tax (Earnings and Pensions) Act 2003 (application of provisions to workers under arrangements made by intermediaries) in section 54 (deemed employment payment) after subsection (1) insert—
“(1A) For the purposes of step 1 of subsection (1), any payment or benefit which is employment income of the worker by virtue of section 863G(4) of ITTOIA 2005 (salaried members of limited liability partnerships: anti-avoidance) is to be ignored.”
(11) The amendments made by this Resolution come into force on 6 April 2014.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
25 Mar 2014 : Column 288
44. Transfer pricing (position of disadvantaged persons)
That provision (including provision having retrospective effect) may be made amending Chapter 4 of Part 4 of the Taxation (International and Other Provisions) Act 2010.
45. Alcoholic liquor duties (rates)
That—
(1) The Alcoholic Liquor Duties Act 1979 is amended as follows.(2) In section 36(1AA) (rates of general beer duty)—
(a) in paragraph (za) (rate of duty on lower strength beer), for “£9.17” substitute “£8.62”, and
(b) in paragraph (a), (standard rate of duty on beer), for “£19.12” substitute “£18.74”.
(3) In section 37(4) (rate of high strength beer duty), for “£5.09” substitute “£5.29”.(4) In section 62(1A) (rates of duty on cider), in paragraph (a) (rate of duty per hectolitre on sparkling cider of a strength exceeding 5.5%), for “£258.23” substitute “£264.61”.(5) For PART 1 of the table in Schedule 1 substitute—
(6) The amendments made by this Resolution come into force on 24 March 2014.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
46. Tobacco products duty (rates)
That—
(1) For the table in Schedule 1 to the Tobacco Products Duty Act 1979 substitute—
| “Table | ||
|
An amount equal to 16.5% of the retail price plus £184.10 per thousand cigarettes | ||
(2) The amendment made by this Resolution comes into force at 6 pm on 19 March.
25 Mar 2014 : Column 289
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
47. Air passenger duty (rates of duty from 1 April 2014)
That—
(1) Section 30 of the Finance Act 1994 (air passenger duty: rates of duty) is amended as follows.(2) In subsection (3)—
(a) in paragraph (a), for “£67” substitute “£69”, and
(b) in paragraph (b), for “£134” substitute “£138”.
(3) In subsection (4)—
(a) in paragraph (a), for “£83” substitute “£85”, and
(b) in paragraph (b), for “£166” substitute “£170”.
(4) In subsection (4A)—
(a) in paragraph (a), for “£94” substitute “£97”, and
(b) in paragraph (b), for “£188” substitute “£194”.
(5) The amendments made by this Resolution have effect in relation to the carriage of passengers beginning on or after 1 April 2014.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
The House divided:
Ayes 301, Noes 15.
Division No. 238]
[
7.27 pm
AYES
Adams, Nigel
Afriyie, Adam
Alexander, rh Danny
Amess, Mr David
Andrew, Stuart
Arbuthnot, rh Mr James
Bacon, Mr Richard
Baker, Norman
Baker, Steve
Baldry, rh Sir Tony
Barclay, Stephen
Barker, rh Gregory
Baron, Mr John
Barwell, Gavin
Bebb, Guto
Beith, rh Sir Alan
Bellingham, Mr Henry
Benyon, Richard
Bingham, Andrew
Birtwistle, Gordon
Blackman, Bob
Blackwood, Nicola
Blunt, Crispin
Boles, Nick
Bone, Mr Peter
Bottomley, Sir Peter
Bradley, Karen
Brady, Mr Graham
Brake, rh Tom
Bray, Angie
Brazier, Mr Julian
Bridgen, Andrew
Brine, Steve
Brokenshire, James
Brooke, Annette
Browne, Mr Jeremy
Buckland, Mr Robert
Burley, Mr Aidan
Burns, Conor
Burns, rh Mr Simon
Burrowes, Mr David
Burstow, rh Paul
Burt, rh Alistair
Burt, Lorely
Cable, rh Vince
Cairns, Alun
Campbell, rh Sir Menzies
Carswell, Mr Douglas
Cash, Mr William
Chishti, Rehman
Chope, Mr Christopher
Clappison, Mr James
Clark, rh Greg
Clifton-Brown, Geoffrey
Coffey, Dr Thérèse
Collins, Damian
Cox, Mr Geoffrey
Crabb, Stephen
Crockart, Mike
Crouch, Tracey
Davey, rh Mr Edward
Davies, David T. C.
(Monmouth)
Davies, Glyn
Davies, Philip
Davis, rh Mr David
de Bois, Nick
Dinenage, Caroline
Djanogly, Mr Jonathan
Dorrell, rh Mr Stephen
Dorries, Nadine
Doyle-Price, Jackie
Drax, Richard
Duddridge, James
Duncan Smith, rh Mr Iain
Ellis, Michael
Ellison, Jane
Ellwood, Mr Tobias
Elphicke, Charlie
Eustice, George
Evans, Graham
Evans, Jonathan
Evennett, Mr David
Fabricant, Michael
Fallon, rh Michael
Featherstone, Lynne
Field, Mark
Fitzpatrick, Jim
Foster, rh Mr Don
Francois, rh Mr Mark
Freeman, George
Freer, Mike
Fullbrook, Lorraine
Fuller, Richard
Gale, Sir Roger
Garnier, Sir Edward
Garnier, Mark
Gauke, Mr David
George, Andrew
Gibb, Mr Nick
Gillan, rh Mrs Cheryl
Glen, John
Goldsmith, Zac
Goodwill, Mr Robert
Gove, rh Michael
Grant, Mrs Helen
Gray, Mr James
Grayling, rh Chris
Green, rh Damian
Greening, rh Justine
Grieve, rh Mr Dominic
Griffiths, Andrew
Gummer, Ben
Gyimah, Mr Sam
Hague, rh Mr William
Halfon, Robert
Hames, Duncan
Hammond, Stephen
Hancock, Matthew
Hands, rh Greg
Harper, Mr Mark
Harrington, Richard
Harris, Rebecca
Hart, Simon
Harvey, Sir Nick
Haselhurst, rh Sir Alan
Hayes, rh Mr John
Heald, Oliver
Heath, Mr David
Heaton-Harris, Chris
Hemming, John
Henderson, Gordon
Hendry, Charles
Herbert, rh Nick
Hinds, Damian
Hoban, Mr Mark
Hollingbery, George
Hollobone, Mr Philip
Holloway, Mr Adam
Hopkins, Kris
Howarth, Sir Gerald
Howell, John
Hughes, rh Simon
Huppert, Dr Julian
Hurd, Mr Nick
Jackson, Mr Stewart
James, Margot
Javid, Sajid
Jenkin, Mr Bernard
Johnson, Gareth
Jones, Andrew
Jones, rh Mr David
Jones, Mr Marcus
Kawczynski, Daniel
Kelly, Chris
Kennedy, rh Mr Charles
Kirby, Simon
Knight, rh Sir Greg
Kwarteng, Kwasi
Lamb, Norman
Lancaster, Mark
Lansley, rh Mr Andrew
Laws, rh Mr David
Leadsom, Andrea
Lee, Jessica
Lee, Dr Phillip
Leech, Mr John
Leigh, Sir Edward
Leslie, Charlotte
Lewis, Brandon
Lewis, Dr Julian
Liddell-Grainger, Mr Ian
Lilley, rh Mr Peter
Lopresti, Jack
Loughton, Tim
Lucas, Caroline
Macleod, Mary
Maude, rh Mr Francis
Maynard, Paul
McCartney, Jason
McCartney, Karl
McIntosh, Miss Anne
McLoughlin, rh Mr Patrick
McPartland, Stephen
McVey, rh Esther
Menzies, Mark
Metcalfe, Stephen
Mills, Nigel
Milton, Anne
Mitchell, rh Mr Andrew
Moore, rh Michael
Mordaunt, Penny
Morgan, Nicky
Morris, James
Mosley, Stephen
Mowat, David
Mulholland, Greg
Mundell, rh David
Munt, Tessa
Murray, Sheryll
Murrison, Dr Andrew
Neill, Robert
Newmark, Mr Brooks
Newton, Sarah
Nokes, Caroline
Norman, Jesse
Nuttall, Mr David
O'Brien, rh Mr Stephen
Offord, Dr Matthew
Ollerenshaw, Eric
Opperman, Guy
Osborne, rh Mr George
Ottaway, rh Sir Richard
Paice, rh Sir James
Parish, Neil
Patel, Priti
Paterson, rh Mr Owen
Pawsey, Mark
Penning, rh Mike
Penrose, John
Percy, Andrew
Perry, Claire
Phillips, Stephen
Pickles, rh Mr Eric
Pincher, Christopher
Poulter, Dr Daniel
Prisk, Mr Mark
Pritchard, Mark
Pugh, John
Raab, Mr Dominic
Reckless, Mark
Redwood, rh Mr John
Reevell, Simon
Reid, Mr Alan
Rifkind, rh Sir Malcolm
Robathan, rh Mr Andrew
Robertson, Mr Laurence
Rogerson, Dan
Rosindell, Andrew
Rudd, Amber
Ruffley, Mr David
Rutley, David
Sanders, Mr Adrian
Sandys, Laura
Scott, Mr Lee
Selous, Andrew
Shapps, rh Grant
Shelbrooke, Alec
Shepherd, Sir Richard
Simmonds, Mark
Simpson, Mr Keith
Skidmore, Chris
Smith, Chloe
Smith, Henry
Smith, Julian
Smith, Sir Robert
Soames, rh Nicholas
Soubry, Anna
Spelman, rh Mrs Caroline
Spencer, Mr Mark
Stanley, rh Sir John
Stevenson, John
Stewart, Bob
Stewart, Iain
Stewart, Rory
Streeter, Mr Gary
Stride, Mel
Stunell, rh Sir Andrew
Sturdy, Julian
Swales, Ian
Swayne, rh Mr Desmond
Swire, rh Mr Hugo
Syms, Mr Robert
Tapsell, rh Sir Peter
Thurso, John
Timpson, Mr Edward
Tomlinson, Justin
Tredinnick, David
Truss, Elizabeth
Turner, Mr Andrew
Uppal, Paul
Vara, Mr Shailesh
Vickers, Martin
Walker, Mr Charles
Walker, Mr Robin
Walter, Mr Robert
Watkinson, Dame Angela
Weatherley, Mike
Wharton, James
Wheeler, Heather
Whittingdale, Mr John
Wiggin, Bill
Williams, Mr Mark
Williams, Roger
Williams, Stephen
Williamson, Gavin
Wilson, Mr Rob
Wright, Jeremy
Wright, Simon
Yeo, Mr Tim
Young, rh Sir George
Zahawi, Nadhim
Tellers for the Ayes:
Harriett Baldwin
and
Mark Hunter
NOES
Dodds, rh Mr Nigel
Durkan, Mark
Hermon, Lady
Hoey, Kate
Long, Naomi
MacNeil, Mr Angus Brendan
McCrea, Dr William
McDonnell, Dr Alasdair
Ritchie, Ms Margaret
Robertson, Angus
Shannon, Jim
Simpson, David
Weir, Mr Mike
Whiteford, Dr Eilidh
Wishart, Pete
Tellers for the Noes:
Jonathan Edwards
and
Hywel Williams
Question accordingly agreed to.
25 Mar 2014 : Column 290
25 Mar 2014 : Column 291
48. Air passenger duty (rates: general)
That provision may be made about the rates of air passenger duty.
49. Vehicle excise duty (rates for light passenger vehicles etc)
That—
(1) Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty) is amended as follows.
25 Mar 2014 : Column 292
(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 “£225” substitute “£230”, and
(b) in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£140” substitute “£145”.
(3) In paragraph 1B (graduated rates of duty for light passenger vehicles)—
(a) for the tables substitute—
| “Table 1 | |||
| Rates Payable on First Vehicle Licence for Vehicle | |||
| CO2 Emissions Figure | Rate | ||
| (1) | (2) | (3) | (4) |
| Exceeding | Not Exceeding | Reduced Rate | Standard Rate |
| g/km | g/km | £ | £ |
| “Table 2 | |||
| Rates Payable on Any Other Vehicle Licence for Vehicle | |||
| CO2 Emissions Figure | Rate | ||
| (1) | (2) | (3) | (4) |
| Exceeding | Not Exceeding | Reduced Rate | Standard Rate |
| g/km | g/km | £ | £ |
b) in the sentence immediately following the tables, for paragraphs (a) and (b) substitute—
“(a) in column (3), in the last two rows, “275” were substituted for “475” and “490”, and
(b) in column (4), in the last two rows, “285” were substituted for “485” and “500”.”
(4) In paragraph 1J (VED rates for light goods vehicles), in paragraph (a), for “£220” substitute “£225”. (5) In paragraph 2(1) (VED rates for motorcycles)—
(a) in paragraph (b), for “£37” substitute “£38”,
(b) in paragraph (c), for “£57” substitute “£58”, and
(c) in paragraph (d), for “£78” substitute “£80”.
(6) The amendments made by this Resolution have effect in relation to licences taken out on or after 1 April 2014.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
25 Mar 2014 : Column 293
50. Vehicle excise duty (rates for rigid goods vehicles with trailers)
That—
(1) For paragraph 10 of Schedule 1 to the Vehicle Excise and Registration Act 1994 (supplement to annual rate of duty for rigid goods vehicle with trailer), substitute—
“10 (1) This paragraph applies to relevant rigid goods vehicles.
(2) A “relevant rigid goods vehicle” is a rigid goods vehicle which—
(a) has a revenue weight exceeding 11,999 kgs,
(b) is not a vehicle falling within paragraph 9(2), and
(c) is used for drawing a trailer which has a plated gross weight exceeding 4,000 kgs and when so drawn is used for the conveyance of goods or burden.
(3) The annual rate of vehicle excise duty applicable to a relevant rigid goods vehicle is to be determined in accordance with the following tables by reference to—
(a) whether or not the vehicle has road-friendly suspension,
(b) the number of axles on the vehicle,
(c) the appropriate HGV road user levy band for the vehicle (see column (1) in the tables),
(d) the plated gross weight of the trailer (see columns (2) and (3) in the tables), and
(e) the total of the revenue weight for the vehicle and the plated gross weight of the trailer (the “total weight”) (see columns (4) and (5) in the tables).
(4) For the purposes of this paragraph a vehicle does not have road-friendly suspension if any driving axle of the vehicle has neither —
(a) an air suspension (that is, a suspension system in which at least 75% of the spring effect is caused by an air spring), nor
(b) a suspension which is regarded as being equivalent to an air suspension for the purposes under Annex II of Council Directive 96/53/EC.
(5) The “appropriate HGV road user levy band” in relation to a vehicle means the band into which the vehicle falls for the purposes of calculating the rate of HGV road user levy that is charged in respect of the vehicle (see Schedule 1 to the HGV Road User Levy Act 2013).
(6) The tables are arranged as follows—
(a) table 1 applies to relevant rigid goods vehicles with road-friendly suspension on which there are 2 axles;
(b) table 2 applies to relevant rigid goods vehicles with road-friendly suspension on which there are 3 axles;
(c) table 3 applies to relevant rigid goods vehicles with road-friendly suspension on which there are 4 or more axles;
(d) table 4 applies to relevant rigid goods vehicles which do not have road-friendly suspension and on which there are 2 axles;
(e) table 5 applies to relevant rigid goods vehicles which do not have road-friendly suspension and on which there are 3 axles;
(f) table 6 applies to relevant rigid goods vehicles which do not have road-friendly suspension and on which there are 4 or more axles.
25 Mar 2014 : Column 294
| Table 1 | |||||
| Vehicles with Road-friendly Suspension and Two Axles | |||||
| Appropriate HGV Road User Levy Band | Plated Gross Weight of trailer | Total Weight | Rate | ||
| (1) | (2) | (3) | (4) | (5) | (6) |
| Exceeding (kgs) | Not Exceeding (kgs) | Not Exceeding (kgs) | £ | ||
| Table 2 | |||||
| Vehicles with Road-friendly Suspension and Three Axles | |||||
| Appropriate HGV Road User Levy Band | Plated Gross Weight of Trailer | Total Weight | Rate | ||
| (1) | (2) | (3) | (4) | (5) | (6) |
| Exceeding (kgs) | Not Exceeding (kgs) | Exceeding (kgs) | Not Exceeding (kgs) | £ | |
| Table 3 | |||||
| Vehicles with Road-friendly suspension and Four or More Axles | |||||
| Appropriate HGV Road User Levy Band | Plated Gross Weight of Trailer | Total Weight | Rate | ||
| (1) | (2) | (3) | (4) | (5) | (6) |
| Exceeding (kgs) | Not Exceeding (kgs) | Exceeding (kgs) | Not Exceeding (kgs) | £ | |
| Table 4 | |||||
| Vehicles Without Road-friendly Suspension with Two Axles | |||||
| Appropriate HGV Road User Levy Band | Plated Gross Weight of Trailer | Total Weight | Rate | ||
| (1) | (2) | (3) | (4) | (5) | (6) |
| Exceeding (kgs) | Not Exceeding (kgs) | Exceeding (kgs) | Not Exceeding (kgs) | £ | |
25 Mar 2014 : Column 295