House of Commons Votes and Proceedings
Thursday
4th December 2014

No.74

The House met at 9.30 am.

PRAYERS.

1 Questions to (1) the Secretary of State for Transport

(2) the Leader of the House and the Right honourable Member representing the House of

Commons Commission

2 Business Question (Leader of the House)

3 Statement: Pensions and benefits uprating (Steve Webb)

4 Stamp Duty Land Tax (Residential Property Transactions) (Ways and Means)

Resolved, That-

(1) Part 4 of the Finance Act 2003 (stamp duty land tax) is amended as follows.

(2) Section 55 (general rules on calculating the amount of stamp duty land tax chargeable) is amended as follows.

(3) In subsection (1) for "a percentage of the chargeable consideration for the transaction"

substitute "determined in accordance with subsections (1B), (1C) and (2)".

(4) After subsection (1A) insert-

" (1B) If the relevant land consists entirely of residential property and the transaction is not one of a number of linked transactions, the amount of tax chargeable is determined as follows-

Step 1

Apply the rates specified in the second column of Table A below to the parts of the relevant consideration specified in the first column of that Table.

Step 2

Add together the amounts calculated at Step 1 (if there are two or more such amounts).

TABLE A: RESIDENTIAL

Part of relevant consideration Rate

So much as does not exceed 125,000 0%

So much as exceeds 125,000 but does not exceed 250,000

So much as exceeds 250,000 but does not exceed 925,000

So much as exceeds 925,000 but does not exceed 1,500,000

2%

5%

10%

The remainder (if any) 12%

(1C) If the relevant land consists entirely of residential property and the transaction is one of a number of linked transactions, the amount of tax chargeable in respect of the particular transaction under consideration is determined as follows-

Step 1

Apply the rates specified in the second column of Table A in subsection (1B) to the parts of the relevant consideration specified in the first column of that Table.

Step 2

Add together the amounts calculated at Step 1 (if there are two or more such amounts).

Step 3

Multiply the amount given by Step 1 or Step 2, as the case may be, by-

where-

C is the chargeable consideration for the transaction, and

R is the relevant consideration."

(5) In subsection (2) for the words from the beginning of that subsection to the end of Table

A substitute-

"If the relevant land consists of or includes land that is not residential property, the amount of tax chargeable is the percentage of the chargeable consideration for the transaction determined in accordance with Table B below by reference to the amount of the relevant consideration."

(6) In subsection (3) for "subsection (2)" substitute "subsections (1B) and (2)".

(7) In subsection (4) at the beginning insert "For the purposes of subsections (1C) and (2),". (8) Omit subsection (7).

(9) Section 74 (exercise of collective rights by tenants of flats) is amended as follows. (10) In subsection (1A)-

(a) in the opening words, for "rate" substitute "amount", (b) in Step 2-

(i) for "rate of tax and the" substitute "amount of", and

(ii) for "subsections (2) and (3)" substitute "subsection (1B)", (c) in Step 3-

(i) for "rate of tax and the" substitute "amount of", and

(ii) for "subsections (2) and (3)" substitute "subsection (1B)", and

(d) in Step 4 for "subsections (2) and (3) do" substitute "subsection (1B) does". (11) For subsections (2) and (3) substitute-

" (1B) Where step 2 or 3 of subsection (1A) requires the amount of tax chargeable to be determined in accordance with this subsection, it is determined as follows.

Step 1

Determine the amount of tax chargeable under section 55 as if the relevant consideration for the chargeable transaction were the fraction of the relevant consideration calculated under step 1 of subsection (1A).

Step 2

Multiply the amount determined at step 1 by the number of qualifying flats contained in the premises."

(12) In section 75 (crofting community right to buy) for subsections (2) and (3) substitute- " (1A) In that case, the amount of tax is determined as follows-

Step 1

Determine the amount of tax chargeable under section 55 as if the relevant consideration for the chargeable transaction were the fraction of the relevant consideration produced by dividing the total amount of that consideration by the number of crofts being bought.

Step 2

Multiply the amount determined at step 1 by the number of crofts being bought under that transaction."

(13) In section 77(1)(b) (notifiable transactions) for "which tax is chargeable at a rate of 1%

or higher" substitute "any part of which tax is chargeable at a rate of more than 0%".

(14) In section 77A(2)(a) (notifiable transactions: exception of certain acquisitions of major interests in land: interpretation) for "1% or higher" substitute "more than 0%".

(15) In section 80(2) (requirement to make return where contingency ceases, or consideration is ascertained, and tax or additional tax is payable etc)-

(a) in the opening words, after "before" insert "(calculated in either case according to the effective date of the transaction)", and

(b) omit paragraph (c), but not the "and" at the end.

(16) In section 80(4) (cases where less tax payable) after "in respect of a transaction" insert

"(calculated according to its effective date)".

(17) In section 81ZA(1)(c) (alternative finance arrangements: additional tax where reliefs withdrawn to be calculated by reference to effective date) for "by reference to the rates in force at" substitute "according to".

(18) In section 81A(1) (requirement to make return in consequence of later linked transactions where tax or additional tax is payable etc)-

(a) in the opening words, after "before" insert "(calculated in either case according to the effective date of the earlier transaction)", and

(b) omit paragraph (c), but not the "and" at the end.

(19) In section 109(2)(b) (general power to vary Part 4 of the 2003 Act: power to alter descriptions of transaction chargeable at any existing rate or amount) after "amount" insert ", or in respect of which tax is calculated in accordance with any particular provision".

(20) In section 122 omit the entry for "rate of tax".

(21) In paragraph 3(1)(b) of Schedule 4A (certain high-value transactions not linked to other transactions for purposes of section 55(4)) for "55(4)" substitute "55(1B), (1C) and (4)".

(22) Schedule 6B (transfers involving multiple dwellings) is amended as follows. (23) For paragraph 4(1) substitute-

" (1) If relief under this Schedule is claimed for a relevant transaction, the amount of tax chargeable in respect of the transaction is the sum of-

(a) the tax related to the consideration attributable to dwellings (see paragraph 5(1)

and (2)), and

(b) the tax related to the remaining consideration (if any) (see paragraph 5(7))." (24) Omit paragraph 4(4).

(25) For the italic heading before paragraph 5 substitute "The amount of tax chargeable". (26) For paragraph 5(1) and (2) substitute-

" (1) For the purposes of paragraph 4(1)(a), "the tax related to the consideration attributable to dwellings" is determined as follows-

Step 1

Determine the amount of tax that would be chargeable under section 55 on the assumption that-

(a) the relevant land consisted entirely of residential property, and

(b) the relevant consideration were the fraction produced by dividing total dwellings consideration by total dwellings.

Step 2

Multiply the amount determined at Step 1 by total dwellings.

Step 3

If the relevant transaction is one of a number of linked transactions, go to Step 4. Otherwise, the amount found at Step 2 is the tax related to the consideration attributable

to dwellings.

Step 4

Multiply the amount found at Step 2 by-

where-

"CD" is the consideration attributable to dwellings for the relevant transaction, and

"TDC" is total dwellings consideration.

(2) But if the amount found at Step 2 of sub-paragraph (1) is less than 1% of total dwellings consideration, for the purposes of paragraph 4(1)(a) "the tax related to the consideration attributable to dwellings" is an amount equal to 1% of the consideration attributable to dwellings."

(27) For paragraph 5(7) substitute-

" (7) For the purposes of paragraph 4(1)(b), "the tax related to the remaining consideration" is the appropriate fraction of the amount of tax which (but for this Schedule) would be due in respect of the relevant transaction.

(8) In subsection (7) "the appropriate fraction" means-

where-

"RC" is the remaining consideration for the relevant transaction, "TDC" is total dwellings consideration, and

"TRC" is total remaining consideration.

(9) For a transaction that is not one of a number of linked transactions, "total remaining consideration" is the remaining consideration for that transaction (see paragraph 4(3)).

(10) For one of a number of linked transactions, "total remaining consideration" is- (a) the total of the chargeable consideration for all those transactions, less

(b) total dwellings consideration."

(28) In paragraph 6(1) (change of circumstances after relief given) for paragraph (c)

substitute-

" (c) had the event occurred immediately before the effective date of the transaction, more tax (calculated according to the effective date of the transaction) would have been payable, whether because the transaction would not have been a relevant transaction or otherwise."

(29) In paragraph 6(3) (requirement to make return where more tax payable than was paid)

omit paragraph (c), but not the "and" at the end.

(30) In paragraph 8(1) of Schedule 7 (acquisition relief)- (a) for "rate" substitute "amount", and

(b) for "0.5%" substitute "an amount equal to 0.5% of the chargeable consideration for the transaction".

(31) In paragraph 4B(1) of Schedule 9 (shared ownership transactions) for "rate" substitute

"amount".

(32) In paragraph 12 of Schedule 9 (shared ownership trusts) for "rate" substitute "amount". (33) In paragraph 30(2) of Schedule 15 (partnerships) in paragraph (a) for "rate of tax

chargeable under that section is 1% or higher" substitute "amount of tax chargeable under that

section is not zero".

(34) In paragraph 3(3) of Schedule 17A (leases that continue after a fixed term: additional tax to be calculated by reference to effective date)-

(a) in the opening words, after "before" insert "(calculated in either case according to the effective date of the transaction)", and

(b) omit paragraph (c), but not the "and" at the end.

(35) In paragraph 4(3) of Schedule 17A (treatment of leases for indefinite term: additional tax to be calculated by reference to effective date)-

(a) in the opening words, after "before" insert "(calculated in either case according to the effective date of the transaction)", and

(b) omit paragraph (c), but not the "and" at the end.

(36) In paragraph 7(1) of Schedule 19 (old linked transactions relevant to rate of tax) for

"rate" substitute "amount".

(37) In paragraph 9(4) of Schedule 19 (exercise of option or right of pre-emption acquired before implementation date) for "rate" substitute "amount".

(38) In consequence of amendments made by preceding provisions of this Resolution- (a) in the Finance Act 2006, omit section 162(1),

(b) in the Finance Act 2010, omit section 7(1), and

(c) in the Finance Act 2012- (i) omit section 213(1), and

(ii) in Schedule 35, omit paragraphs 2(4) and (6) and 5(3).

(39) The amendments made by this Resolution have effect in relation to any land transaction of which the effective date is, or is after, 4 December 2014.

(40) But those amendments do not have effect in relation to a transaction if the purchaser so elects and either-

(a) the transaction is effected in pursuance of a contract entered into and substantially performed before 4 December 2014, or

(b) the transaction is effected in pursuance of a contract entered into before that date and is not excluded by paragraph (42).

(41) An election under paragraph (40)-

(a) must be included in the land transaction return made in respect of the transaction or in an amendment of that return, and

(b) must comply with any requirements specified by the Commissioners for Her

Majesty’s Revenue and Customs as to its form or the manner of its inclusion.

(42) A transaction effected in pursuance of a contract entered into before 4 December 2014 is excluded by this paragraph if-

(a) there is any variation of the contract, or assignment (or assignation) of rights under the contract, on or after 4 December 2014,

(b) the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or

(c) on or after that date there is an assignment (or assignation), subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.

(43) In paragraphs (40) to (42)-

"land transaction return", in relation to a transaction, means the return under section 76 of the Finance Act 2003 in respect of that transaction;

"purchaser" has the same meaning as in Part 4 of that Act (see section 43(4) of that Act); "substantially performed", in relation to a contract, has the same meaning as in that Part

(see section 44(5) of that Act).

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.-(Steve Webb.)

5 Stamp Duty Land Tax Bill

Ordered, That a Bill be brought in upon the foregoing resolution;

That the Chairman of Ways and Means, the Prime Minister, the Deputy Prime Minister, Mr Chancellor of the Exchequer, Danny Alexander, Secretary Eric Pickles, Mr David Gauke, Priti Patel and Andrea Leadsom present the Bill.

Mr David Gauke accordingly presented a Bill to make provision about stamp duty land tax on residential property transactions; and for connected purposes.

Bill read the first time; to be read a second time tomorrow, and to be printed (Bill 132) with

Explanatory Notes (Bill 132–EN).

6 Backbench Business (unallotted)

(1) Financial Conduct Authority redress scheme

Resolved, That this House has considered the Financial Conduct Authority’s redress scheme, adopted as a result of the mis-selling of complex interest rate derivatives to small and medium sized businesses, and has found the scheme’s implementation to be lacking in consistency and basic fairness; considers such failures to be unacceptable; is concerned about lack of transparency of arrangements between the regulator and the banks; is concerned about the longer than expected time scale for implementation; calls for a prompt resolution of these matters; and asks for the Government to consider appointing an independent inquiry to explore both these failings and to expedite compensation for victims.-(Guto Bebb.)

(2) Availability and pricing of branded medicines on the NHS

Motion made and Question proposed, That this House has considered availability and pricing of branded medicines on the NHS.-(Mr Andrew Lansley.)

At 5.00 pm, the Motion lapsed (Standing Order No. 9(3)).

7 Adjournment

Subject: Late night anti-social behaviour in south Manchester (Mr John Leech).

Resolved, That this House do now adjourn.-(Damian Hinds.)

Adjourned at 5.26 pm until tomorrow.

Other proceedings

General Committees: Reports

8 Fourth Delegated Legislation Committee

Mr David Amess (Chair) reported the draft Electricity Capacity (Supplier Payment etc.) Regulations 2014.

Reports from Select Committees

9 High Speed Rail (London - West Midlands) Bill Select Committee

High Speed Rail (London - West Midlands) Bill: Evidence and written evidence, to be published (HC 338) (Mr Robert Syms).

10 House of Commons Governance Committee

House of Commons Governance: Evidence and written evidence, to be published (HC 692) (Mr Jack Straw).

11 Political and Constitutional Reform Committee

The future of devolution after the referendum: Evidence, to be published (HC 700) (Mr

Graham Allen).

12 Public Accounts (Committee of)

Implementing reforms to civil legal aid: Evidence, to be published (HC 808) (Margaret

Hodge).

13 Scottish Affairs Committee

(1) The Smith Commission: Proposals for further devolution to Scotland: Evidence taken on

3 December, to be published (HC 835);

(2) Our Borderlands-Our Future: Written evidence, to be published (HC 571) (Mr Ian Davidson).

John Bercow

Speaker

The Speaker will take the Chair at 9.30 am.

Sitting in Westminster Hall

Adjournment

The sitting began at 1.30 pm.

Backbench Business (15th allotted day: First half (Standing Order No. 14)) Subject: Small Business Saturday.

Resolved, That the sitting be now adjourned.-(Damian Hinds.)

Adjourned at 3.46 pm until Tuesday 9 December.

Lindsay Hoyle

Deputy Speaker

APPENDIX

Papers presented or laid upon the Table: Papers subject to Affirmative Resolution:

1 Cinemas and Films

Draft Films (Definition of "British Film") Order 2015 (by Act), with an Explanatory

Memorandum (by Command) (Secretary Sajid Javid).

2 Constitutional Law

Draft Regulatory Reform (Scotland) Act 2014 (Consequential Modifications) Order 2015 (by Act), with an Explanatory Memorandum (by Command) (Secretary Alistair Carmichael).

Papers subject to Negative Resolution:

3 Children and Young Persons

Childcare (Provision of Information About Young Children) (England) (Amendment) Regulations 2014 (S.I., 2014, No. 3197), dated 28 November 2014 (by Act), with an Explanatory Memorandum (by Command) (Secretary Nicky Morgan).

4 Local Government

Business Improvement Districts (England) (Amendment) Regulations 2014 (S.I., 2014, No.

3199), dated 1 December 2014 (by Act), with an Explanatory Memorandum (by Command)

(Secretary Eric Pickles).

Other Papers:

5 Agricultural Wages

(1) Report on Wages in Agriculture for 1 January to 31 December 2011 (by Act) (Secretary

Elizabeth Truss);

(2) Report on Wages in Agriculture for 1 January to 31 December 2012 (by Act) (Secretary

Elizabeth Truss); and

(3) Report on Wages in Agriculture for 1 January to 31 October 2013 (by Act) (Secretary

Elizabeth Truss).

6 Justice

Monitoring places of detention: Fifth annual report of the United Kingdom’s National

Preventive Mechanism, for 2013–14 (by Command) (Cm. 8964) (Secretary Chris Grayling).

7 UK Borders

Report of the Independent Chief Inspector of Borders and Immigration on an inspection of Immigration Enforcement activity in London and the West Midlands: March–June 2014 (‘Operation Nexus’) (by Act) (Secretary Theresa May).

8 Weights and Measures

Report on Weights and Measures by the National Measurement Office for 2009 to 2013 (by

Act); to be printed (HC 827) (Secretary Vince Cable).