This is a Chancellor who has an astonishing record of missing his own targets. He promised to protect our triple A credit rating—he has failed. He said he would eliminate the deficit by 2015—he has failed. In his 2012
22 Mar 2016 : Column 1477
Budget, he set out a target to double UK exports to £1 trillion by 2020—he has failed, admitting he will miss it by £357 billion. In his last Budget, the Chancellor established three targets he wished to be judged by in this Parliament. First, he promised to keep social security spending below an arbitrary cap he imposed on himself. He has, by his own admission, failed, and he will fail every year of this Parliament, and that was even before he was forced to row back on the cuts to PIP.
Secondly, the Chancellor promised to reduce debt as a percentage of GDP in every year. He will fail, by the end of the month, to meet his target, and he only met it last year by flogging off public assets, such as bits of the Royal Mail. Thirdly, he has promised to have an overall surplus by 2020, and that rule is now dangling by the thinnest of threads. The Red Book shows that he only hangs on to meeting his economically pointless surplus rule by a series of tricks the Joker would have been proud of, and a promise to cut borrowing by an unprecedented £32 billion in a pre-election year. These are fiscal gymnastics that would embarrass the dodgiest accountant. It does not take a genius to see that this amounts to an economic plan that has lost all credibility in the country, just as he is losing credibility in his own party.
This Budget is also a moral failure. It is a Budget with unfairness at its very heart, from a Chancellor who is making the wrong decisions for our country. Since 2010, over 1 million people have been forced to go to food banks, and over 1 million benefit claimants have been sanctioned, often for utterly trivial reasons. Dying people have been found fit to work—one woman in a coma was found fit to work—and people have committed suicide. Homelessness has soared, and the bedroom tax has caused untold misery. The Chancellor has talked about workers and shirkers, stigmatising all benefit claimants, including those with disabilities, and that has led to a discernible increase in hate crimes against them. I hope the Chancellor is proud of that record, but it is clear that this is not and can never be called compassionate Conservatism.
This is a Budget that planned to eliminate the deficit on the backs of the poor and some of the most vulnerable in our society. None of this is morally justifiable. Never again will this Government be able to claim, “We’re all in this together”. Never again will they be able to don the mantle of compassionate Conservativism with any shred of credibility. This is a political failure of a Budget, as well as a moral failure and an economic failure. This is a Chancellor who has mishandled tax credit cuts, who has pushed and lost on Sunday trading and who has now mishandled disability benefit cuts, too. He is a Chancellor who has lost control of his Budget and lost control of his leadership hopes. This is an omnishambles Chancellor who has produced an immoral Budget, which is disintegrating before our eyes. That is why we will vote against it tonight.
6.23 pm
The Chief Secretary to the Treasury (Greg Hands): May I associate myself with the comments made by the Chancellor, Members on both Front Benches and many Back Benchers about the terrible terrorist outrages in Brussels this morning? I remind everybody that we stand shoulder to shoulder with the people of Belgium, as we in this country have done many times before against the scourge of terrorism.
22 Mar 2016 : Column 1478
The past four days of this debate have certainly been lively. I want to look back not just four days, but more than six years. Let us cast our minds back to six years ago, in 2010, when the whole world doubted the UK’s ability to pay its way. Now the UK is forecast to grow faster than any other major advanced economy in the world.
Six years ago, we were borrowing 25p out of every £1 that we spent—almost £6,000 per household per annum. Now that figure is down to 10p, and will be 7p next year. Six years ago our deficit was more than 10% of GDP. Now we are three years away from building that surplus. Our economy is a full 12.6% bigger than it was in 2010 when my right hon. Friend delivered his first Budget. Our foreign exchange reserves have doubled, and every day has seen an average of 1,000 jobs created. Inflation is low, poverty and inequality are falling, and wages are rising. Yes, that is due to our long-term economic plan.
We can only have a fair and compassionate society on the back of a strong economy. That is what the British electorate asked us to do in May, and that is what we are doing. We are proud of the jobs created over the past six years, proud of having lifted more than 1 million low-paid people out of income tax, proud of having introduced the national living wage, and proud of our record as a compassionate one-nation Conservative Government.
Let me respond to some of the points raised today, partly because the shadow First Secretary of State failed to mention any of them. The hon. Member for Dewsbury (Paula Sherriff) and my right hon. Friend the Member for Basingstoke (Mrs Miller) raised a technical detail and asked, with reference to the tampon tax, what will happen to the money now allocated for that in the Budget. That was a one-year bidding process, and all the organisations will get the money that we announced on Wednesday. The relevant clause for that will be in the Finance Bill, which will be published on Thursday.
Various Conservative Members, including my hon. Friends the Members for Warwick and Leamington (Chris White), for South Dorset (Richard Drax), for Richmond (Yorks) (Rishi Sunak), for Croydon South (Chris Philp), for Dudley South (Mike Wood), my right hon. Friend the Member for Basingstoke, and others, praised the wealth creators and business, and this is very much a Budget for business, wealth creators and enterprise. My hon. Friends the Members for Harrow East (Bob Blackman) and for Peterborough (Mr Jackson), the hon. Members for Clwyd South (Susan Elan Jones) and for City of Durham (Dr Blackman-Woods), and the right hon. Member for Delyn (Mr Hanson) all mentioned infrastructure spending—albeit with slightly differing views—and individual projects.
The Government remain on course to deliver £100 billion in infrastructure projects this Parliament. The Budget announced more for flood defences, and for transport projects in the north, London and right the way across England. My hon. Friend the Member for Harrow East raised a point about rough sleeping, and we are committing £110 million extra for that. No allocations have yet been made, but London is very much a focus of that additional money.
When the hon. Member for Coatbridge, Chryston and Bellshill (Philip Boswell) spoke I had to stop and check that I had heard him correctly, because he spoke about a risk “in relation to the price of oil”. I can tell
22 Mar 2016 : Column 1479
him something about a risk “in relation to the price of oil”, because if Scotland were to have separated on the SNP’s proposed date of this Thursday, it would now be facing a fiscal black hole of £19 billion, largely caused by a 98% collapse in oil revenue.
My hon. Friend the Member for Norwich North (Chloe Smith) called this a Budget for savers and the next generation. She is absolutely right, and the Lifetime ISA will apply even to those who do not put in the full £4,000 a year. We have also launched the Help to Save initiative, which will help lower-paid savers who are on universal credit or tax credits.
My hon. Friend the Member for Erewash (Maggie Throup) highlighted our income tax cuts, which deliver on our manifesto commitment—we are accelerating them for the low-paid, the lower-paid and the medium-paid.
We heard opposing speeches on the merits of the soft drinks industry levy from my hon. Friend the Member for Bedford (Richard Fuller), the hon. Member for Falkirk (John Mc Nally) and others. My hon. Friend raised a number of technical objections to the levy. We are consulting on the details and are keen to work with the industry on it, but hon. Members should make no mistake: we think it is the right thing to do to help to deal with the UK’s £27 billion per annum obesity problem.
The hon. Member for Foyle (Mark Durkan) thanked us on behalf of Northern Ireland for launching funding for the new air ambulance, which I know has been very well received. We are open to ideas on UK city deals coming from Northern Ireland, but I should say to him that the Stormont House agreement committed more than £2.5 billion to the Executive, which I think was very generous.
We heard from many former members of the Labour Treasury team—the shadow shadow Treasury team, as they have been called—including the right hon. Member for Delyn, and the hon. Members for Birmingham, Ladywood (Shabana Mahmood) and for Leeds West (Rachel Reeves). All protested at the policies and initiatives launched by the Government. I have two things to say to them. First of all, in all of the last Parliament, I do not recall any of them coming up with a single proposal to save money or cut spending, or to back any tax rise. More interestingly, not one of the shadow shadow Treasury team had a word of praise for their actual shadow Treasury team, which was absolutely compelling evidence of where they are going wrong.
It is because we have faced up to the facts and because we have taken the difficult decisions that our economy is fundamentally stronger, more resilient and better able to protect our families and households in uncertain times. Uncertain times are what we must currently deal with. Growth worldwide is slowing, commodity prices have fallen and productivity growth has been sluggish, particularly in the most advanced economies. The middle east remains unstable and global markets have experienced worrying turbulence. The UK is immune from none of that. Responsible government means preparing our economy for the challenges that lie ahead. It means ensuring that we never again find ourselves in the position we found ourselves in six years ago. It means that, when problems come up, we deal with them in full and early on.
22 Mar 2016 : Column 1480
Rachel Reeves: Many Labour Members have asked about the £4.4 billion black hole. Will the Chief Secretary to the Treasury please confirm whether that £4.4 billion will be plugged by further cuts to welfare, tax increases, spending cuts or more borrowing? It has to be one. Which is it?
Greg Hands: It is always good to hear from the shadow shadow Treasury team. I can tell the hon. Lady that more will be outlined in the course of this year in the autumn statement. However, we remain on course—[Interruption.]
Mr Speaker: Order. Members are becoming a little over-excitable. The Chief Secretary must be heard.
Greg Hands: We remain on course to deliver our budget surplus in 2019-20, which is far more than Labour ever achieved. I would have thought that the hon. Lady would have found the opportunity to congratulate the Government on the new commitment to flood defences in Leeds, which she did not mention.
I will be working to find a further £3.5 billion of efficiencies by 2019-20 so that we deliver that surplus by the end of this Parliament. That means that we keep our economy on course, and we refuse to pass on the burden to our children and grandchildren.
At the same time, we will continue to reward aspiration, back growth, invest in education and help people get on in life—because this is a Budget that backs Britain’s businesses. It cuts the burden of business rates by £6.7 billion over the next five years, taking 600,000 of our smallest firms out of business rates altogether. It cuts the rate of corporation tax even further, to 17% in 2020, giving us the most competitive rate in the G7 and benefiting more than 1 million businesses. Through a £1 billion North sea oil and gas package, it is a Budget that helps Britain’s largest industry succeed in difficult economic times; through cuts to both the higher and basic rates of capital gains tax, it encourages investment—the lifeblood of Britain’s businesses; and, through the abolition of class 2 national insurance contributions, it creates a simpler tax system and a tax cut of more than £130 for the 3 million-plus self-employed people in Britain—this Government stand squarely behind them.
This is a Budget that puts cash into people’s pockets. It raises the tax-free personal allowance to £11,500 from next year, and the higher rate threshold to £45,000. We recognise that money should be in savings accounts as well as in pockets, so this is also the Budget that creates the lifetime ISA, helping people to buy their first home or save for their retirement. This is a Budget that freezes fuel duty, helping people every time they fill up their tank. It is a Budget that supports responsible drinkers; helps the nation’s pubs and gives a further boost to the Scotch whisky industry.
I recall seeing on the morning of the Budget the Scottish National party’s lead spokesman saying that he had three asks in this Budget, and he listed them on Twitter. They were to freeze fuel duty, to keep down duty on Scotch and to have a fiscal package for oil and gas. We have met all three of his asks and much more, and this is a very good Budget for Scotland, too.
It is a Budget that strengthens our tax base, through reforming the tax system so that it is in line with the realities of global, 21st-century economics. As I said, in
22 Mar 2016 : Column 1481
this Budget we take action on the scourge of obesity, which, as well as providing unsustainable pressures on the NHS, ruins people’s health and quality of life, and costs the country about £27 billion a year.
Greg Hands: I do not have time to give way. Because we continue to get the public finances under control, our Budget—[Interruption.] I am sorry, but all the Labour MPs elected in 2010 and 2015 do not remember the last Labour Government, and that is part of their problem. Because we get the public finances under control, our Budget gives this country a stable base from which to support those in need of support. That is a point that too many on the Opposition Benches still do not get: there can only be true social justice on the back of a functioning economy. Had we not taken action in 2010, borrowing would have been £930 billion more by the end of the decade than it is now forecast to be. On a serious point, one more downturn and we could have lost control altogether in this country, and when that happens it is the poorest and the most vulnerable who are hit the hardest. So we say: never again. That is why we take action now, so we do not pay later.
To conclude, I am sure that some on the Opposition Benches will vote against the Budget tonight, but they will be voting against more money going to our schools. They will be voting against 600,000 small businesses being taken out of paying business rates altogether. They will be voting against support for our North sea oil and gas industry. They will be voting against increases for children’s healthcare. They will be voting against helping working people save for their future. They will be voting against lower taxes for the lowest paid. They will be voting against a better future for Britain.
I say that Members should vote for this Budget. Stability, security, prosperity is what the electorate asked us to provide last May and it is that which this Budget provides, and I ask the House to support it tonight.
Amendment made: (a), after ‘importation’ in paragraph 2(a), insert—
‘other than in respect of value added tax on women’s sanitary products’.—(Paula Sherriff.)
Main Question, as amended, put.
The House divided:
Ayes 310, Noes 275.
Division No. 221]
[
6.40 pm
AYES
Adams, Nigel
Afriyie, Adam
Aldous, Peter
Allan, Lucy
Allen, Heidi
Amess, Sir David
Andrew, Stuart
Ansell, Caroline
Argar, Edward
Atkins, Victoria
Bacon, Mr Richard
Baker, Mr Steve
Baldwin, Harriett
Barclay, Stephen
Baron, Mr John
Barwell, Gavin
Bebb, Guto
Bellingham, Sir Henry
Benyon, Richard
Beresford, Sir Paul
Berry, Jake
Bingham, Andrew
Blackman, Bob
Blunt, Crispin
Boles, Nick
Bone, Mr Peter
Borwick, Victoria
Bottomley, Sir Peter
Bradley, Karen
Brady, Mr Graham
Brazier, Mr Julian
Bridgen, Andrew
Brine, Steve
Brokenshire, rh James
Bruce, Fiona
Buckland, Robert
Burns, Conor
Burns, rh Sir Simon
Burrowes, Mr David
Burt, rh Alistair
Cairns, Alun
Campbell, Mr Gregory
Carmichael, Neil
Cartlidge, James
Cash, Sir William
Caulfield, Maria
Chalk, Alex
Chishti, Rehman
Chope, Mr Christopher
Churchill, Jo
Clark, rh Greg
Clarke, rh Mr Kenneth
Cleverly, James
Clifton-Brown, Geoffrey
Coffey, Dr Thérèse
Collins, Damian
Colvile, Oliver
Costa, Alberto
Cox, Mr Geoffrey
Crabb, rh Stephen
Davies, Byron
Davies, Chris
Davies, David T. C.
Davies, Glyn
Davies, Dr James
Davies, Mims
Davies, Philip
Davis, rh Mr David
Dinenage, Caroline
Djanogly, Mr Jonathan
Dodds, rh Mr Nigel
Donaldson, rh Mr Jeffrey M.
Double, Steve
Dowden, Oliver
Doyle-Price, Jackie
Drax, Richard
Drummond, Mrs Flick
Duddridge, James
Duncan, rh Sir Alan
Duncan Smith, rh Mr Iain
Dunne, Mr Philip
Elliott, Tom
Ellis, Michael
Ellison, Jane
Ellwood, Mr Tobias
Elphicke, Charlie
Eustice, George
Evans, Graham
Evennett, rh Mr David
Fabricant, Michael
Fallon, rh Michael
Fernandes, Suella
Field, rh Mark
Foster, Kevin
Frazer, Lucy
Freeman, George
Freer, Mike
Fuller, Richard
Fysh, Marcus
Gale, Sir Roger
Garnier, rh Sir Edward
Garnier, Mark
Gauke, Mr David
Ghani, Nusrat
Gibb, Mr Nick
Gillan, rh Mrs Cheryl
Glen, John
Goodwill, Mr Robert
Gove, rh Michael
Graham, Richard
Grant, Mrs Helen
Gray, Mr James
Grayling, rh Chris
Green, Chris
Green, rh Damian
Greening, rh Justine
Grieve, rh Mr Dominic
Griffiths, Andrew
Gummer, Ben
Gyimah, Mr Sam
Halfon, rh Robert
Hall, Luke
Hammond, Stephen
Hancock, rh Matthew
Hands, rh Greg
Harper, rh Mr Mark
Harrington, Richard
Harris, Rebecca
Haselhurst, rh Sir Alan
Hayes, rh Mr John
Heald, Sir Oliver
Heappey, James
Heaton-Harris, Chris
Heaton-Jones, Peter
Henderson, Gordon
Herbert, rh Nick
Hermon, Lady
Hinds, Damian
Hoare, Simon
Hollingbery, George
Hollinrake, Kevin
Hollobone, Mr Philip
Holloway, Mr Adam
Hopkins, Kris
Howarth, Sir Gerald
Howell, John
Howlett, Ben
Huddleston, Nigel
Hunt, rh Mr Jeremy
Jackson, Mr Stewart
James, Margot
Javid, rh Sajid
Jayawardena, Mr Ranil
Jenkin, Mr Bernard
Jenkyns, Andrea
Jenrick, Robert
Johnson, Boris
Johnson, Gareth
Johnson, Joseph
Jones, Andrew
Jones, rh Mr David
Jones, Mr Marcus
Kawczynski, Daniel
Kennedy, Seema
Kinahan, Danny
Knight, rh Sir Greg
Knight, Julian
Kwarteng, Kwasi
Lancaster, Mark
Latham, Pauline
Lee, Dr Phillip
Lefroy, Jeremy
Leigh, Sir Edward
Leslie, Charlotte
Letwin, rh Mr Oliver
Lewis, Brandon
Lewis, rh Dr Julian
Lidington, rh Mr David
Lilley, rh Mr Peter
Loughton, Tim
Lumley, Karen
Mackinlay, Craig
Mackintosh, David
Main, Mrs Anne
Malthouse, Kit
Mann, Scott
Mathias, Dr Tania
Maynard, Paul
McCartney, Jason
McCartney, Karl
McLoughlin, rh Mr Patrick
McPartland, Stephen
Menzies, Mark
Mercer, Johnny
Merriman, Huw
Metcalfe, Stephen
Miller, rh Mrs Maria
Milling, Amanda
Mills, Nigel
Milton, rh Anne
Mitchell, rh Mr Andrew
Mordaunt, Penny
Morgan, rh Nicky
Morris, Anne Marie
Morris, David
Morris, James
Morton, Wendy
Mowat, David
Mundell, rh David
Murray, Mrs Sheryll
Murrison, Dr Andrew
Neill, Robert
Nokes, Caroline
Norman, Jesse
Nuttall, Mr David
Offord, Dr Matthew
Opperman, Guy
Osborne, rh Mr George
Paisley, Ian
Parish, Neil
Patel, rh Priti
Paterson, rh Mr Owen
Pawsey, Mark
Penning, rh Mike
Penrose, John
Perry, Claire
Phillips, Stephen
Philp, Chris
Pickles, rh Sir Eric
Pincher, Christopher
Poulter, Dr Daniel
Pow, Rebecca
Prentis, Victoria
Prisk, Mr Mark
Pursglove, Tom
Quin, Jeremy
Quince, Will
Raab, Mr Dominic
Redwood, rh John
Rees-Mogg, Mr Jacob
Robertson, Mr Laurence
Robinson, Gavin
Robinson, Mary
Rosindell, Andrew
Rudd, rh Amber
Rutley, David
Sandbach, Antoinette
Scully, Paul
Selous, Andrew
Shannon, Jim
Shapps, rh Grant
Sharma, Alok
Simpson, rh Mr Keith
Smith, Chloe
Smith, Henry
Smith, Julian
Smith, Royston
Soames, rh Sir Nicholas
Solloway, Amanda
Soubry, rh Anna
Spelman, rh Mrs Caroline
Spencer, Mark
Stephenson, Andrew
Stevenson, John
Stewart, Iain
Stewart, Rory
Streeter, Mr Gary
Stride, Mel
Sturdy, Julian
Sunak, Rishi
Swayne, rh Mr Desmond
Swire, rh Mr Hugo
Syms, Mr Robert
Thomas, Derek
Throup, Maggie
Timpson, Edward
Tolhurst, Kelly
Tomlinson, Justin
Tomlinson, Michael
Tracey, Craig
Tredinnick, David
Trevelyan, Mrs Anne-Marie
Truss, rh Elizabeth
Tugendhat, Tom
Turner, Mr Andrew
Tyrie, rh Mr Andrew
Vaizey, Mr Edward
Vara, Mr Shailesh
Vickers, Martin
Villiers, rh Mrs Theresa
Walker, Mr Charles
Walker, Mr Robin
Wallace, Mr Ben
Warburton, David
Warman, Matt
Watkinson, Dame Angela
Wharton, James
Whately, Helen
White, Chris
Whittaker, Craig
Wiggin, Bill
Williams, Craig
Williamson, rh Gavin
Wilson, Mr Rob
Wilson, Sammy
Wollaston, Dr Sarah
Wood, Mike
Wragg, William
Wright, rh Jeremy
Zahawi, Nadhim
Tellers for the Ayes:
Sarah Newton
and
Simon Kirby
NOES
Abbott, Ms Diane
Abrahams, Debbie
Ahmed-Sheikh, Ms Tasmina
Alexander, Heidi
Ali, Rushanara
Anderson, Mr David
Arkless, Richard
Ashworth, Jonathan
Bardell, Hannah
Barron, rh Kevin
Beckett, rh Margaret
Benn, rh Hilary
Berger, Luciana
Betts, Mr Clive
Black, Mhairi
Blackford, Ian
Blackman, Kirsty
Blenkinsop, Tom
Blomfield, Paul
Boswell, Philip
Bradshaw, rh Mr Ben
Brake, rh Tom
Brennan, Kevin
Brock, Deidre
Brown, Alan
Brown, Lyn
Brown, rh Mr Nicholas
Buck, Ms Karen
Burden, Richard
Burgon, Richard
Burnham, rh Andy
Butler, Dawn
Byrne, rh Liam
Cadbury, Ruth
Cameron, Dr Lisa
Campbell, rh Mr Alan
Campbell, Mr Ronnie
Carmichael, rh Mr Alistair
Carswell, Mr Douglas
Champion, Sarah
Chapman, Douglas
Chapman, Jenny
Cherry, Joanna
Clegg, rh Mr Nick
Clwyd, rh Ann
Coffey, Ann
Cooper, Julie
Cooper, Rosie
Cooper, rh Yvette
Corbyn, rh Jeremy
Cowan, Ronnie
Cox, Jo
Coyle, Neil
Crawley, Angela
Creagh, Mary
Creasy, Stella
Cruddas, Jon
Cryer, John
Cummins, Judith
Cunningham, Alex
Cunningham, Mr Jim
Dakin, Nic
Danczuk, Simon
Davies, Geraint
Day, Martyn
De Piero, Gloria
Docherty-Hughes, Martin
Donaldson, Stuart Blair
Doughty, Stephen
Dowd, Jim
Dowd, Peter
Dromey, Jack
Dugher, Michael
Durkan, Mark
Eagle, Ms Angela
Eagle, Maria
Efford, Clive
Elliott, Julie
Ellman, Mrs Louise
Esterson, Bill
Evans, Chris
Farrelly, Paul
Farron, Tim
Fellows, Marion
Ferrier, Margaret
Field, rh Frank
Fitzpatrick, Jim
Fletcher, Colleen
Flint, rh Caroline
Flynn, Paul
Fovargue, Yvonne
Foxcroft, Vicky
Gapes, Mike
Gardiner, Barry
Gethins, Stephen
Gibson, Patricia
Glass, Pat
Glindon, Mary
Godsiff, Mr Roger
Goodman, Helen
Grady, Patrick
Grant, Peter
Gray, Neil
Green, Kate
Greenwood, Lilian
Greenwood, Margaret
Griffith, Nia
Hamilton, Fabian
Hanson, rh Mr David
Harman, rh Ms Harriet
Harris, Carolyn
Hayes, Helen
Healey, rh John
Hendrick, Mr Mark
Hendry, Drew
Hepburn, Mr Stephen
Hillier, Meg
Hodgson, Mrs Sharon
Hoey, Kate
Hollern, Kate
Hopkins, Kelvin
Hosie, Stewart
Howarth, rh Mr George
Hunt, Tristram
Huq, Dr Rupa
Hussain, Imran
Irranca-Davies, Huw
Jarvis, Dan
Johnson, rh Alan
Jones, Gerald
Jones, Helen
Jones, Mr Kevan
Jones, Susan Elan
Kane, Mike
Kaufman, rh Sir Gerald
Keeley, Barbara
Kendall, Liz
Kerevan, George
Kerr, Calum
Khan, rh Sadiq
Kinnock, Stephen
Kyle, Peter
Lamb, rh Norman
Lavery, Ian
Law, Chris
Leslie, Chris
Lewell-Buck, Mrs Emma
Lewis, Clive
Lewis, Mr Ivan
Long Bailey, Rebecca
Lucas, Caroline
Lucas, Ian C.
MacNeil, Mr Angus Brendan
Mactaggart, rh Fiona
Madders, Justin
Mahmood, Mr Khalid
Mahmood, Shabana
Malhotra, Seema
Mann, John
Marris, Rob
Marsden, Mr Gordon
Maskell, Rachael
Matheson, Christian
Mc Nally, John
McCabe, Steve
McCaig, Callum
McCarthy, Kerry
McDonagh, Siobhain
McDonald, Andy
McDonald, Stewart Malcolm
McDonald, Stuart C.
McDonnell, Dr Alasdair
McDonnell, John
McFadden, rh Mr Pat
McGarry, Natalie
McGinn, Conor
McGovern, Alison
McInnes, Liz
McKinnell, Catherine
McLaughlin, Anne
McMahon, Jim
Meale, Sir Alan
Mearns, Ian
Miliband, rh Edward
Monaghan, Carol
Monaghan, Dr Paul
Moon, Mrs Madeleine
Morden, Jessica
Mulholland, Greg
Mullin, Roger
Murray, Ian
Nandy, Lisa
Newlands, Gavin
Nicolson, John
O'Hara, Brendan
Onn, Melanie
Onwurah, Chi
Osamor, Kate
Oswald, Kirsten
Owen, Albert
Paterson, Steven
Pearce, Teresa
Pennycook, Matthew
Phillips, Jess
Phillipson, Bridget
Powell, Lucy
Pugh, John
Qureshi, Yasmin
Rayner, Angela
Reed, Mr Jamie
Reed, Mr Steve
Rees, Christina
Reeves, Rachel
Reynolds, Emma
Reynolds, Jonathan
Rimmer, Marie
Ritchie, Ms Margaret
Robertson, rh Angus
Robinson, Mr Geoffrey
Rotheram, Steve
Salmond, rh Alex
Saville Roberts, Liz
Sharma, Mr Virendra
Sheerman, Mr Barry
Sheppard, Tommy
Sherriff, Paula
Shuker, Mr Gavin
Siddiq, Tulip
Skinner, Mr Dennis
Slaughter, Andy
Smeeth, Ruth
Smith, rh Mr Andrew
Smith, Angela
Smith, Cat
Smith, Jeff
Smith, Nick
Smith, Owen
Smyth, Karin
Spellar, rh Mr John
Starmer, Keir
Stephens, Chris
Stevens, Jo
Streeting, Wes
Stringer, Graham
Tami, Mark
Thewliss, Alison
Thomas, Mr Gareth
Thomas-Symonds, Nick
Thompson, Owen
Thomson, Michelle
Thornberry, Emily
Timms, rh Stephen
Trickett, Jon
Turley, Anna
Turner, Karl
Twigg, Derek
Twigg, Stephen
Umunna, Mr Chuka
Vaz, rh Keith
Vaz, Valerie
Weir, Mike
West, Catherine
Whiteford, Dr Eilidh
Whitehead, Dr Alan
Whitford, Dr Philippa
Williams, Hywel
Williams, Mr Mark
Wilson, Corri
Wilson, Phil
Winnick, Mr David
Winterton, rh Dame Rosie
Wishart, Pete
Woodcock, John
Wright, Mr Iain
Zeichner, Daniel
Tellers for the Noes:
Sue Hayman
and
Grahame M. Morris
Question accordingly agreed to.
22 Mar 2016 : Column 1482
22 Mar 2016 : Column 1483
22 Mar 2016 : Column 1484
22 Mar 2016 : Column 1485
22 Mar 2016 : Column 1486
That,—
(1) That 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 (except in relation to value added tax on insulation, solar panels and any other category of energy-saving material or their installation) so as to provide-
(a) for zero-rating or exempting a supply, acquisition or importation; other than in respect of value added tax on women’s sanitary products
(b) for refunding an amount of tax;
(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.
Mr Speaker: I am now required under Standing Order No. 51(3) to put, without further debate, the Question on each of the Ways and Means motions numbered 2 to 69 on which the Bill is to be brought in, and on the motions on Procedure and Finance (Money). I should point out that motion No. 13 includes a schedule. These motions are set out in a separate paper distributed with today’s Order Paper.
I must inform the House that, for the purposes of Standing Order No. 83U, and on the basis of material put before me, I have certified that in my opinion the following founding motions published on 16 March 2016 and to be moved by the Chancellor of the Exchequer relate exclusively to England, Wales and Northern Ireland and are within devolved legislative competence. I am referring, as I feel sure colleagues are keenly aware, to the following motions:
45. Stamp duty land tax (calculating tax on non-residential and mixed transactions);
46. Stamp duty land tax (higher rates for additional dwellings etc.);
47. SDLT higher rate (land purchased for commercial use);
48. SDLT higher rate (acquisition under home reversion plan);
49. SDLT higher rate (properties occupied by certain employees);
50. Stamp duty land tax (co-ownership authorised contractual schemes);
57. Landfill tax (rates); and the motion on Procedure (Future Taxation) relating to rates of landfill tax.
Any of these motions on which the House may divide will be subject to double majority voting. With the leave of the House, I will put the Question on motions 2 to 7 together.
The 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)
That—
(1) Income tax is charged for the tax year 2016-17.
22 Mar 2016 : Column 1487
(2) For that tax year—
(b) the higher rate is 40%, and
(c) the additional rate is 45%.
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. Dividends etc.
That provision may be made about distributions (within the meaning of the Tax Acts), including provision about rates of income tax on dividend income (within the meaning of the Income Tax Acts).
4. Taxable benefits (application of Chapters 5, 6 and 7 of Part 3 of the Income Tax (Earnings and Pensions) Act 2003)
That—
(1) Part 3 of the Income Tax (Earnings and Pensions) Act 2003 (employment income: earnings and benefits etc treated as earnings) is amended as follows.(2) In section 97 (living accommodation to which Chapter 5 applies), after subsection (1) insert—
“(1A) In determining for the purposes of this Chapter whether this Chapter applies to living accommodation provided for an individual it is immaterial whether or not the terms on which it is provided constitute a fair bargain.”
(3) In section 114 (cars, vans and related benefits to which Chapter 6 applies), after subsection (1) insert—
“(1A) In determining for the purposes of this Chapter whether this Chapter applies by virtue of subsection (1) to a car or van made available to an individual it is immaterial whether or not the terms on which the car or van is made available constitute a fair bargain.”
(4) For section 117 substitute—
“
117 Meaning of car or van made available by reason of employment
(1) For the purposes of this Chapter a car or van made available by an employer to an employee or member of an employee’s family or household is to be regarded as made available by reason of the employment unless subsection (2) or (3) excludes the application of this subsection.(2) Subsection (1) does not apply where—
(a) the employer is an individual, and
(b) the car or van is made available in the normal course of the employer’s domestic, family or personal relationships.
(3) Subsection (1) does not apply where—
(a) the employer carries on a vehicle hire business under which cars or vans of the same kind are made available to members of the public for hire,
(b) the car or van in question is hired to the employee or member in the normal course of that business, and
(c) in hiring that car or van the employee or member is acting as an ordinary member of the public.”
(5) In section 173 (loans to which Chapter 7 applies), after subsection (1) insert—
“(1A) In determining for the purposes of this Chapter whether a loan is an employment-related loan it is immaterial whether or not the terms of the loan constitute a fair bargain.”
(6) The amendments made by this Resolution have effect for the tax year 2016-17 and subsequent tax years.
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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.
5. Taxable Benefits (diesel cars)
That—
(1) In section 24 of the Finance Act 2014 (cars: the appropriate percentage), omit the following (“the repealing provisions”)—
(2) Any provision of the Income Tax (Earnings and Pensions) Act 2003 amended or omitted by the repealing provisions has effect for the tax year 2016-17 and subsequent tax years as if the repealing provisions had not been enacted.
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.
6. Taxable Benefits (vans)
That—
(1) Section 155 of the Income Tax (Earnings and Pensions) Act 2003 (cash equivalent of the benefit of a van) is amended as follows.(2) In subsection (lB)(a), for “2019-20” substitute “2021-22”.(3) In subsection (1C), for paragraphs (b) to (e) substitute—
“(b) 20% for the tax year 2016-17;
(c) 20% for the tax year 2017-18;
(d) 40% for the tax year 2018-19;
(e) 60% for the tax year 2019-20;
(f) 80% for the tax year 2020-21;
(g) 90% for the tax year 2021-22.”
(4) The amendments made by this Resolution have effect for the tax year 2016-17 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.
7. Income tax (exemption for trivial benefits provided by employers)
That—
(1) The Income Tax (Earnings and Pensions) Act 2003 is amended as follows.(2) After section 323 insert—
“
323ATrivial benefits provided by employers
(1) No liability to income tax arises in respect of a benefit provided by, or on behalf of, an employer to an employee or a member of the employee’s family or household if—
(a) conditions A to D are met, or
(b) in a case where subsection (2) applies, conditions A to E are met.
(2) This subsection applies where—
(a) the employer is a close company, and
(i) a person who is a director or other office-holder of the employer, or
(ii) a member of the family or household of such a person.
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(3) Condition A is that the benefit is not cash or a cash voucher within the meaning of section 75.(4) Condition B is that the benefit cost of the benefit does not exceed £50.(5) In this section “benefit cost”, in relation to a benefit, means—
(a) the cost of providing the benefit, or
(b) if the benefit is provided to more than one person and the nature of the benefit or the scale of its provision means it is impracticable to calculate the cost of providing it to each person to whom it is provided, the average cost per person of providing the benefit.
(6) For the purposes of subsection (5)(b), the average cost per person of providing a benefit is found by dividing the total cost of providing the benefit by the number of persons to whom the benefit is provided.(7) Condition C is that the benefit is not provided pursuant to relevant salary sacrifice arrangements or any other contractual obligation.(8) “Relevant salary sacrifice arrangements”, in relation to the provision of a benefit to an employee or to a member of an employee’s family or household, means arrangements (whenever made, whether before or after the employment began) under which the employee gives up the right to receive an amount of general earnings or specific employment income in return for the provision of the benefit.(9) Condition D is that the benefit is not provided in recognition of particular services performed by the employee in the course of the employment or in anticipation of such services.(10) Condition E is that—
(a) the benefit cost of the benefit provided to the employee, or
(b) in a case where the benefit is provided to a member of the employee’s family or household who is not an employee of the employer, the amount of the benefit cost allocated to the employee in accordance with section 323B(4),
does not exceed the employee’s available exempt amount (see section 323B).
323B Section 323A: calculation of available exempt amount
(1) The “available exempt amount”, in relation to an employee of an employer, is the amount found by deducting from the annual exempt amount the aggregate of—
(a) the benefit cost of eligible benefits provided earlier in the tax year by, or on behalf of, the employer to the employee, and
(b) any amounts allocated to the employee in accordance with subsection (4) in respect of eligible benefits provided earlier in the tax year by, or on behalf of, the employer to a member of the employee’s family or household who was not at that time an employee of the employer.
(2) The annual exempt amount is £300.
(3) For the purposes of subsection (1) “eligible benefits” means benefits in respect of which conditions A to D in section 323A are met.
(4) The amount allocated to an employee of an employer in respect of a benefit provided to a person (“P”) who—
(a) is a member of the employee’s family or household, and
(b) is not an employee of the employer,
is the benefit cost of that benefit divided by the number of persons who meet the condition in subsection (5) and are members of P’s family or household.
(5) This condition is met if the person is—
(a) a director or other office-holder of the employer,
(b) an employee of the employer who is a member of the family or household of a person within paragraph (a), or
(c) a former employee of the employer who—
(i) was a director or other office-holder at any time when the employer was a close company, or
(ii) is a member of the family or household of such a person.
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(6) In this section “benefit cost” has the same meaning as in section 323A.”
(3) The amendment made by this Resolution has effect for the tax year 2016-17 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.
8. Travel expenses of workers providing services through intermediaries
That—
(1) In Chapter 2 of Part 5 of the Income Tax (Earnings and Pensions) Act 2003 (deductions for employee’s expenses), after section 339 insert—
“
339A Travel for necessary attendance: employment intermediaries
(1) This section applies where an individual (“the worker”)—
(a) personally provides services (which are not excluded services) to another person (“the client”), and
(b) the services are provided not under a contract directly between the client or a person connected with the client and the worker but under arrangements involving an employment intermediary.
This is subject to the following provisions of this section.
(2) Where this section applies, each engagement is for the purposes of sections 338 and 339 to be regarded as a separate employment.
(3) This section does not apply if 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.
(4) Subsection (3) does not apply in relation to an engagement if—
(a) Chapter 8 of Part 2 applies in relation to the engagement,
(b) the conditions in section 51, 52 or 53 are met in relation to the employment intermediary, and
(c) the employment intermediary is not a managed service company.
(5) This section does not apply in relation to an engagement if—
(a) Chapter 8 of Part 2 does not apply in relation to the engagement merely because the circumstances in section 49(1)(c) are not met,
(b) assuming those circumstances were met, the conditions in section 51,52 or 53 would be met in relation to the employment intermediary, and
(c) the employment intermediary is not a managed service company.
(6) In determining for the purposes of subsection (4) or (5) whether the conditions in section 51, 52 or 53 are or would be met in relation to the employment intermediary—
(a) in section 50(l)(b), disregard the words “that is not employment income”, and
(b) read references to the intermediary as references to the employment intermediary.
(7) Subsection (8) applies if—
(a) the client or a relevant person provides the employment intermediary (whether before or after the worker begins to provide the services) with a fraudulent document which is intended to constitute evidence that, by virtue of subsection (3), this section does not or will not apply in relation to the services,
(b) that section is taken not to apply in relation to the services, and
(c) in consequence, the employment intermediary does not under PAYE regulations deduct and account for an amount that would have been deducted and accounted for under those regulations if this section had been taken to apply in relation to the services.
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(8) For the purpose of recovering the amount referred to in subsection (7)(c)(“the unpaid tax”)—
(a) the worker is to be treated as having an employment with the client or relevant person who provided the document, the duties of which consist of the services, and
(b) the client or relevant person is under PAYE regulations to account for the unpaid tax as if it arose in respect of earnings from that employment.
(9) In subsections (7) and (8) “relevant person” means a person, other than the client, the worker or a person connected with the employment intermediary, who—
(a) is resident, or has a place of business, in the United Kingdom, and
(b) is party to a contract with the employment intermediary or a person connected with the employment intermediary under or in consequence of which—
(i) the services are provided, or
(ii) the employment intermediary, or a person connected with the employment intermediary, makes payments in respect of the services.
(10) In determining whether this section applies, no regard is to be had to any arrangements the main purpose, or one of the main purposes, of which is to secure that this section does not to any extent apply.
“arrangements” includes any scheme, transaction or series of transactions, agreement or understanding, whether or not enforceable, and any associated operations;
“employment intermediary” means a person, other than the worker or the client, who carries on a business (whether or not with a view to profit and whether or not in conjunction with any other business) of supplying labour;
“engagement” means any such provision of service as is
mentioned in subsection (l)(a);
“excluded services” means services provided wholly in the client’s home;
“managed service company” means a company which—
(a) is a managed service company within the meaning given by section 61B, or
(b) would be such a company disregarding subsection (l)(c) of that section.”
(2) In section 688A of the Income Tax (Earnings and Pensions) Act 2003 (managed service companies: recovery from other persons), in subsection (5), in the definition of “managed service company”, after “section 61B” insert “but for the purposes of section 339A has the meaning given by subsection (11) of that section”.
(3) After section 688A of the Income Tax (Earnings and Pensions) Act 2003 insert—
“688B Travel expenses of workers providing services through intermediaries: recovery of unpaid tax
(1) PAYE regulations may make provision for, or in connection with, the recovery from a director or officer of a company, in such circumstances as may be specified in the regulations, of amounts within any of subsections (2) to (5).
(2) An amount within this subsection is an amount that the company is to account for in accordance with PAYE regulations by virtue of section 339A(7) to (9) (persons providing fraudulent documents).
(3) An amount within this subsection is an amount which the company is to deduct and pay in accordance with PAYE regulations by virtue of section 339A in circumstances where—
(a) the company is an employment intermediary,
(b) on the basis that section 339A does not apply by virtue of subsection (3) of that section, the company has not deducted and paid the amount, but
(c) the company has not been provided by any other person with evidence from which it would be reasonable in all the circumstances to conclude that subsection (3) of that section
22 Mar 2016 : Column 1492
applied (and the mere assertion by a person that the manner in which the worker provided the services was not subject to (or to the right of) supervision, direction or control by any person is not such evidence).
(4) An amount within this subsection is an amount that the company is to deduct and pay in accordance with PAYE regulations by virtue of section 339A in a case where subsection (4) of that section applies, (services provided under arrangements made by intermediaries).
(5) An amount within this subsection is any interest or penalty in respect of an amount within any of subsections (2) to (4) for which the company is liable.
“company” includes a limited liability partnership;
“director” has the meaning given by section 67;
“employment intermediary” has the same meaning as in section 339A;
“officer”, in relation to a company, means any manager, secretary or other similar officer of the company, or any person acting or purporting to act as such.”
(4) In Part 4 of the Income Tax (Pay As You Earn) Regulations 2003 (S.I. 2003/2682) (payments, returns and information), after Chapter 3A insert—
“Chapter 3B
Certain debts of companies under section 339a of ITEPA (travel expenses of workers providing services through employment intermediaries)
97ZG Interpretation of Chapter 3B: “relevant PAYE debt” and “relevant date”
(1) In this Chapter “relevant PAYE debt”, in relation to a company means an amount within any of paragraphs (2) to (5).
(2) An amount within this paragraph is an amount that the company is to account for in accordance with these Regulations by virtue of section 339A(7) to (9) of ITEPA (persons providing fraudulent documents).
(3) An amount within this paragraph is an amount which a company is to deduct and pay in accordance with these Regulations by virtue of section 339A of ITEPA in circumstances where—
(a) the company is an employment intermediary,
(b) on the basis that section 339A of ITEPA does not apply by virtue of subsection (3) of that section the company has not deducted and paid the amount, but
(c) the company has not been provided by any other person with evidence from which it would be reasonable in all the circumstances to conclude that subsection (3) of that section applied (and the mere assertion by a person that the manner in which the worker provided the services was not subject to (or to the right of) supervision, direction or control by any person is not such evidence).
(4) An amount within this paragraph is an amount that the company is to deduct and pay in accordance with these Regulations by virtue of section 339A of ITEPA in a case where subsection (4) of that section applies (services provided under arrangements made by intermediaries).
(5) An amount within this paragraph is any interest or penalty in respect of an amount within any of paragraphs (2) to (4) for which the company is liable.
(6) In this Chapter “the relevant date” in relation to a relevant PAYE debt means the date on which the first payment is due on which PAYE is not accounted for.
97ZH Interpretation of Chapter 3B: general
“company” includes a limited liability partnership;
“director” has the meaning given by section 67 of ITEPA; “personal liability notice” has the meaning given by regulation 97ZI(2);
22 Mar 2016 : Column 1493
“the specified amount” has the meaning given by regulation 97ZI(2)(a).
97ZI Liability of directors for relevant PAYE debts
(1) This regulation applies in relation to an amount of relevant PAYE debt of a company if the company does not deduct that amount by the time by which the company is required to do so.
(2) HMRC may serve a notice (a “personal liability notice”) on any person who was, on the relevant date, a director of the company—
(a) specifying the amount of relevant PAYE debt in relation to which this regulation applies (“the specified amount”), and
(b) requiring the director to pay to HMRC—
(ii) specified interest on that amount.
(3) The interest specified in the personal liability notice—
(a) is to be at the rate applicable under section 178 of the Finance Act 1989 for the purposes of section 86 of TMA, and
(b) is to run from the date the notice is served.
(4) A director who is served with a personal liability notice is liable to pay to HMRC the specified amount and the interest specified in the notice within 30 days beginning with the day the notice is served.
(5) If HMRC serve personal liability notices on more than one director of the company in respect of the same amount of relevant PAYE debt, the directors are jointly and severally liable to pay to HMRC the specified amount and the interest specified in the notices.
97ZJ Appeals in relation to personal liability notices
(1) A person who is served with a personal liability notice in relation to an amount of relevant PAYE debt of a company may appeal against the notice.
(a) be given to HMRC within 30 days beginning with the day the personal liability notice is served, and
(b) specify the grounds of the appeal.
(3) The grounds of appeal are—
(a) that all or part of the specified amount does not represent an amount of relevant PAYE debt, of the company, to which regulation 97ZI applies, or
(b) that the person was not a director of the company on the relevant date.
(4) But a person may not appeal on the ground mentioned in paragraph (3)(a) if it has already been determined, on an appeal by the company, that—
(a) the specified amount is a relevant PAYE debt of the company, and
(b) the company did not deduct, account for, or (as the case may be) pay the debt by the time by which the company was required to do so.
(5) Subject to paragraph (6), on an appeal that is notified to the tribunal, the tribunal is to uphold or quash the personal liability notice.
(6) In a case in which the ground of appeal mentioned in paragraph (3)(a) is raised, the tribunal may also reduce or increase the specified amount so that it does represent an amount of relevant PAYE debt, of the company, to which regulation 97ZI applies.
97ZK Withdrawal of personal liability notices
(1) A personal liability notice is withdrawn if the tribunal quashes it.
(2) An officer of Revenue and Customs may withdraw a personal liability notice if the officer considers it appropriate to do so.
(3) If a personal liability notice is withdrawn, HMRC must give notice of that fact to the person upon whom the notice was served.
22 Mar 2016 : Column 1494
97ZL Recovery of sums due under personal liability notice: application of Part 6 of TMA
(1) For the purposes of this Chapter, Part 6 of TMA (collection and recovery) applies as if—
(a) the personal liability notice were an assessment, and
(b) the specified amount, and any interest on that amount under regulation 97ZI(2)(b)(ii), were income tax charged on the director upon whom the notice is served,
and that Part of that Act applies with the modification in paragraph (2) and any other necessary modifications.
(2) Summary proceedings for the recovery of the specified amount, and any interest on that amount under regulation 97ZI(2)(b)(ii), may be brought in England and Wales or Northern Ireland at any time before the end of the period of 12 months beginning with the day after the day on which the personal liability notice is served.
97ZM Repayment of surplus amounts
(1) This regulation applies if—
(a) one or more personal liability notices are served in respect of an amount of relevant PAYE debt of a company, and
(b) the amounts paid to HMRC (whether by directors upon whom notices are served or the company) exceed the aggregate of the specified amount and any interest on it under regulation 97ZI(2)(b)(ii).
(2) HMRC is to repay the difference on a just and equitable basis and without unreasonable delay.
(3) HMRC is to pay interest on any sum repaid.
(a) is to be at the rate applicable under section 178 of the Finance Act 1989 for the purposes of section 824 of ICTA, and
(b) is to run from the date the amounts paid to HMRC come to exceed the aggregate mentioned in subsection (l)(b).”
(5) The amendment made by paragraph (4) is to be treated as having been made by the Commissioners for Her Majesty’s Revenue and Customs in exercise of the power conferred by section 688B of the Income Tax (Earnings and Pensions) Act 2003 (inserted by paragraph (3)).
(6) The amendment made by paragraph (1) has effect in relation to the tax year 2016-17 and subsequent tax years.
(7) The amendment made by paragraph (4) has effect in relation to relevant PAYE debts that are to be deducted, accounted for or paid on or after 6 April 2016.
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 307, Noes 62.
Division No. 222]
[
6.57 pm
AYES
Adams, Nigel
Afriyie, Adam
Aldous, Peter
Allan, Lucy
Allen, Heidi
Amess, Sir David
Andrew, Stuart
Ansell, Caroline
Argar, Edward
Atkins, Victoria
Bacon, Mr Richard
Baker, Mr Steve
Baldwin, Harriett
Barclay, Stephen
Baron, Mr John
Barwell, Gavin
Bebb, Guto
Bellingham, Sir Henry
Benyon, Richard
Beresford, Sir Paul
Berry, Jake
Bingham, Andrew
Blackman, Bob
Blunt, Crispin
Boles, Nick
Bone, Mr Peter
Borwick, Victoria
Bottomley, Sir Peter
Bradley, Karen
Brady, Mr Graham
Brazier, Mr Julian
Bridgen, Andrew
Brine, Steve
Brokenshire, rh James
Bruce, Fiona
Buckland, Robert
Burns, Conor
Burns, rh Sir Simon
Burrowes, Mr David
Burt, rh Alistair
Cairns, Alun
Campbell, Mr Gregory
Carmichael, Neil
Cartlidge, James
Cash, Sir William
Caulfield, Maria
Chalk, Alex
Chishti, Rehman
Chope, Mr Christopher
Churchill, Jo
Clark, rh Greg
Clarke, rh Mr Kenneth
Cleverly, James
Clifton-Brown, Geoffrey
Coffey, Dr Thérèse
Collins, Damian
Colvile, Oliver
Costa, Alberto
Cox, Mr Geoffrey
Crabb, rh Stephen
Davies, Byron
Davies, Chris
Davies, David T. C.
Davies, Glyn
Davies, Dr James
Davies, Mims
Davies, Philip
Davis, rh Mr David
Dinenage, Caroline
Djanogly, Mr Jonathan
Dodds, rh Mr Nigel
Donaldson, rh Mr Jeffrey M.
Double, Steve
Dowden, Oliver
Doyle-Price, Jackie
Drax, Richard
Drummond, Mrs Flick
Duddridge, James
Duncan, rh Sir Alan
Duncan Smith, rh Mr Iain
Dunne, Mr Philip
Ellis, Michael
Ellison, Jane
Ellwood, Mr Tobias
Elphicke, Charlie
Eustice, George
Evans, Graham
Evennett, rh Mr David
Fabricant, Michael
Fallon, rh Michael
Fernandes, Suella
Field, rh Mark
Foster, Kevin
Frazer, Lucy
Freeman, George
Freer, Mike
Fuller, Richard
Fysh, Marcus
Gale, Sir Roger
Garnier, rh Sir Edward
Garnier, Mark
Gauke, Mr David
Ghani, Nusrat
Gibb, Mr Nick
Gillan, rh Mrs Cheryl
Glen, John
Goodwill, Mr Robert
Gove, rh Michael
Graham, Richard
Grant, Mrs Helen
Gray, Mr James
Grayling, rh Chris
Green, Chris
Green, rh Damian
Greening, rh Justine
Grieve, rh Mr Dominic
Griffiths, Andrew
Gummer, Ben
Gyimah, Mr Sam
Halfon, rh Robert
Hall, Luke
Hammond, Stephen
Hands, rh Greg
Harper, rh Mr Mark
Harrington, Richard
Harris, Rebecca
Haselhurst, rh Sir Alan
Hayes, rh Mr John
Heald, Sir Oliver
Heappey, James
Heaton-Harris, Chris
Heaton-Jones, Peter
Henderson, Gordon
Herbert, rh Nick
Hinds, Damian
Hoare, Simon
Hollingbery, George
Hollinrake, Kevin
Hollobone, Mr Philip
Holloway, Mr Adam
Hopkins, Kris
Howarth, Sir Gerald
Howell, John
Howlett, Ben
Huddleston, Nigel
Hunt, rh Mr Jeremy
Jackson, Mr Stewart
James, Margot
Javid, rh Sajid
Jayawardena, Mr Ranil
Jenkin, Mr Bernard
Jenkyns, Andrea
Jenrick, Robert
Johnson, Boris
Johnson, Gareth
Johnson, Joseph
Jones, Andrew
Jones, rh Mr David
Jones, Mr Marcus
Kawczynski, Daniel
Kennedy, Seema
Knight, rh Sir Greg
Knight, Julian
Kwarteng, Kwasi
Lancaster, Mark
Latham, Pauline
Lee, Dr Phillip
Lefroy, Jeremy
Leigh, Sir Edward
Leslie, Charlotte
Letwin, rh Mr Oliver
Lewis, Brandon
Lewis, rh Dr Julian
Lidington, rh Mr David
Lilley, rh Mr Peter
Loughton, Tim
Lumley, Karen
Mackinlay, Craig
Mackintosh, David
Main, Mrs Anne
Malthouse, Kit
Mann, Scott
Mathias, Dr Tania
Maynard, Paul
McCartney, Jason
McCartney, Karl
McLoughlin, rh Mr Patrick
McPartland, Stephen
Menzies, Mark
Mercer, Johnny
Merriman, Huw
Metcalfe, Stephen
Miller, rh Mrs Maria
Milling, Amanda
Mills, Nigel
Milton, rh Anne
Mitchell, rh Mr Andrew
Mordaunt, Penny
Morgan, rh Nicky
Morris, Anne Marie
Morris, David
Morris, James
Morton, Wendy
Mowat, David
Mundell, rh David
Murray, Mrs Sheryll
Murrison, Dr Andrew
Neill, Robert
Nokes, Caroline
Norman, Jesse
Nuttall, Mr David
Offord, Dr Matthew
Opperman, Guy
Osborne, rh Mr George
Paisley, Ian
Parish, Neil
Patel, rh Priti
Paterson, rh Mr Owen
Pawsey, Mark
Penning, rh Mike
Penrose, John
Perry, Claire
Phillips, Stephen
Philp, Chris
Pickles, rh Sir Eric
Pincher, Christopher
Poulter, Dr Daniel
Pow, Rebecca
Prentis, Victoria
Prisk, Mr Mark
Pursglove, Tom
Quin, Jeremy
Quince, Will
Raab, Mr Dominic
Redwood, rh John
Rees-Mogg, Mr Jacob
Robertson, Mr Laurence
Robinson, Gavin
Robinson, Mary
Rosindell, Andrew
Rudd, rh Amber
Rutley, David
Sandbach, Antoinette
Scully, Paul
Selous, Andrew
Shannon, Jim
Shapps, rh Grant
Sharma, Alok
Simpson, rh Mr Keith
Smith, Chloe
Smith, Henry
Smith, Julian
Smith, Royston
Soames, rh Sir Nicholas
Solloway, Amanda
Soubry, rh Anna
Spelman, rh Mrs Caroline
Spencer, Mark
Stephenson, Andrew
Stevenson, John
Stewart, Iain
Stewart, Rory
Streeter, Mr Gary
Stride, Mel
Sturdy, Julian
Sunak, Rishi
Swayne, rh Mr Desmond
Swire, rh Mr Hugo
Syms, Mr Robert
Thomas, Derek
Throup, Maggie
Timpson, Edward
Tolhurst, Kelly
Tomlinson, Justin
Tomlinson, Michael
Tracey, Craig
Tredinnick, David
Trevelyan, Mrs Anne-Marie
Truss, rh Elizabeth
Tugendhat, Tom
Turner, Mr Andrew
Tyrie, rh Mr Andrew
Vaizey, Mr Edward
Vara, Mr Shailesh
Vickers, Martin
Villiers, rh Mrs Theresa
Walker, Mr Charles
Walker, Mr Robin
Wallace, Mr Ben
Warburton, David
Warman, Matt
Watkinson, Dame Angela
Wharton, James
Whately, Helen
White, Chris
Whittaker, Craig
Whittingdale, rh Mr John
Wiggin, Bill
Williams, Craig
Williamson, rh Gavin
Wilson, Mr Rob
Wilson, Sammy
Wollaston, Dr Sarah
Wood, Mike
Wragg, William
Wright, rh Jeremy
Zahawi, Nadhim
Tellers for the Ayes:
Sarah Newton
and
Simon Kirby
NOES
Ahmed-Sheikh, Ms Tasmina
Arkless, Richard
Bardell, Hannah
Black, Mhairi
Blackford, Ian
Blackman, Kirsty
Boswell, Philip
Brock, Deidre
Brown, Alan
Cameron, Dr Lisa
Chapman, Douglas
Cherry, Joanna
Cowan, Ronnie
Crawley, Angela
Day, Martyn
Docherty-Hughes, Martin
Donaldson, Stuart Blair
Durkan, Mark
Elliott, Tom
Ferrier, Margaret
Gethins, Stephen
Gibson, Patricia
Grady, Patrick
Grant, Peter
Gray, Neil
Hendry, Drew
Hosie, Stewart
Kerevan, George
Kerr, Calum
Kinahan, Danny
Law, Chris
Lucas, Caroline
MacNeil, Mr Angus Brendan
Mc Nally, John
McCaig, Callum
McDonald, Stewart Malcolm
McDonald, Stuart C.
McDonnell, Dr Alasdair
McGarry, Natalie
McLaughlin, Anne
Monaghan, Carol
Monaghan, Dr Paul
Mullin, Roger
Newlands, Gavin
Nicolson, John
O'Hara, Brendan
Oswald, Kirsten
Paterson, Steven
Ritchie, Ms Margaret
Robertson, rh Angus
Salmond, rh Alex
Saville Roberts, Liz
Sheppard, Tommy
Stephens, Chris
Thewliss, Alison
Thomson, Michelle
Weir, Mike
Whiteford, Dr Eilidh
Whitford, Dr Philippa
Williams, Hywel
Wilson, Corri
Wishart, Pete
Tellers for the Noes:
Marion Fellows
and
Owen Thompson
Question accordingly agreed to.
22 Mar 2016 : Column 1495
22 Mar 2016 : Column 1496
22 Mar 2016 : Column 1497
9. Income Tax (PAYE)
That provision may be made as to the matters that may be provided for by regulations under section 684 of the Income Tax (Earnings and Pensions) Act 2003.
10. Employment-related securities
That provision may be made about employment-related securities options and share incentive plans.
11. Employment income provided through third parties
That provision may be made amending Part 7 A of the Income Tax (Earnings and Pensions) Act 2003 and Schedule 2 to the Finance Act 2011.
12. Employment income provided through third parties (tax avoidance)
That—
(1) Section 554Z8 of the Income Tax (Earnings and Pensions) Act 2003 (cases where consideration is given for a relevant step) is amended as follows.
(2) In subsection (5), omit “and” at the end of paragraph (b) and after paragraph (c) insert “, and
(d) there is no connection (direct or indirect) between the payment and a tax avoidance arrangement.”
(3) The amendment made by this Resolution has effect in relation to payments made on or after 16 March 2016 by way of consideration for a relevant step (as defined in section 554A(2) of the Income Tax (Earnings and Pensions) Act 2003) taken on or after that date.
22 Mar 2016 : Column 1498
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.
13. Pensions: lifetime allowance
That—
(1) Section 218 of the Finance Act 2004 (pension schemes etc: lifetime allowance) is amended in accordance with paragraphs (2) to (4).
(2) For subsections (2) and (3) (standard lifetime allowance is £1,250,000 but may be increased by Treasury order) substitute—
“(2) The standard lifetime allowance for the tax years 2016-17 and 2017-18 is £1,000,000.”
(3) After subsection (5BB) insert—
“(5BC) Where the operation of a lifetime enhancement factor is provided for by any of sections 220, 222, 223 and 224 and the time mentioned in the definition of SLA in the section concerned fell within the period consisting of the tax year 2014-15 and the tax year 2015-16, subsection (4) has effect as if the amount to be multiplied by LAEF were £1,250,000 if that is greater than SLA.
(5BD) Where more than one lifetime enhancement factor operates, subsection (5BC) does not apply if any of subsections (5A), (5B) and (5BA) applies.”
(4) After subsection (5D) insert—
“(5E) Where benefit crystallisation event 7 occurs on or after 6 April 2016 by reason of the payment of a relevant lump sum death benefit in respect of the death of the individual during the period consisting of the tax year 2014-15 and the tax year 2015-16, the standard lifetime allowance at the time of the benefit crystallisation event is £1,250,000.”
(5) The amendments made by paragraphs (2) to (4) have effect for the tax year 2016-17 and subsequent tax years.
(6) The provision made by the Schedule to the 2016 Budget Resolution (Pensions: lifetime allowance) 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 Budget resolution No. 13 is available in Votes and Proceedings.
14. Pensions
That provision (including provision having retrospective effect) may be made in connection with the taxation of pensions.
15. Income tax (fixed-rate deductions)
That provision may be made about the deductions allowed when calculating the profits of a trade, profession or vocation for the purposes of income tax.
16. EIS, SEIS and VCTs
That provision (including provision having retrospective effect) may be made about the enterprise investment scheme, the seed enterprise investment scheme and venture capital trusts.
17. Income tax relief for irrecoverable peer-to-peer loans
That—
(1) The Income Tax Act 2007 is amended as follows.
22 Mar 2016 : Column 1499
“Chapter 1A
Irrecoverable peer-to-peer loans
412A Relief for irrecoverable peer-to-peer loans
(1) A person (“L”) is entitled to relief under this section if—(a) L has made a peer-to-peer loan (“the relevant loan”),
(b) the loan was made through an operator,
(c) L has not assigned the right to recover the principal of the loan, and
(d) any outstanding amount of the principal of the loan has, on or after 6 April 2015, become irrecoverable.
(2) But if the outstanding amount became irrecoverable before 6 April 2016 L is entitled to relief under this section only on the making of a claim.
(3) The relief is given by deducting the outstanding amount in calculating L’s net income for the tax year in which the amount became irrecoverable (see Step 2 of the calculation in section 23).
(4) The deduction under this section is to be made only from income arising from the payment to L of interest on—
(b) any other loan within subsection (5) or (6).
(5) A loan is within this subsection if—
(a) it is a peer-to-peer loan made by L, and
(b) it was made through the operator through whom the relevant loan was made.
(6) A loan is within this subsection if—
(a) the loan was made by someone other than L,
(b) the right to receive interest on the loan has been assigned to L,
(c) the right was assigned through the operator through whom the relevant loan was made, and
(i) L is a person within paragraph (a), (b) or (c) of section 412I(4), or
(ii) the recipient of the loan is a person within one of those paragraphs and the loan is a personal or small loan.
(7) The amount deducted under this section is limited in accordance with section 25(4) and (5).
(8) In this section “irrecoverable” means irrecoverable other than by legal proceedings or by the exercise of any right granted by way of security for the loan.
412B Claims for additional relief: sideways relief
(1) A person (“L”) may make a claim for relief under this section if—
(a) L is entitled to relief under section 412A in respect of any outstanding amount of the principal of a loan (“the relevant loan”), but
(b) in the tax year in relation to which L is entitled to that relief (“the relevant year”)—
(i) L has no income of the kind mentioned in section 412A(4) from which to deduct the outstanding amount, or
(ii) L has insufficient income of that kind to enable the outstanding amount to be deducted in full under that section.
(2) The claim is for the outstanding amount or (in a case within subsection (l)(b)(ii)) the part of the outstanding amount not capable of being deducted under section 412A to be deducted under this section in calculating L’s net income for the relevant year.
(3) The deduction under this section is to be made only from income arising from the payment to L of interest on loans within subsection (4) or (5).
(4) A loan is within this subsection if—
(a) it is a peer-to-peer loan made by L, and
22 Mar 2016 : Column 1500
(b) it was made through an operator who is not the operator through whom the relevant loan was made.
(5) A loan is within this subsection if—
(a) the loan was made by someone other than L,
(b) the right to receive interest on the loan has been assigned to L,
(c) that right was assigned through an operator who is not the operator through whom the relevant loan was made, and
(i) L is a person within paragraph (a), (b) or (c) of section 412I(4), or
(ii) the recipient of the loan is a person within one of those paragraphs and the loan is a personal or small loan.
(6) The amount deducted under this section is limited in accordance with section 25(4) and (5).
412C Claims for additional relief: carry-forward relief
(1) A person (“L”) may make a claim for relief under this section if—
(a) L is entitled to relief under section 412A in respect of any outstanding amount of the principal of a loan (“the relevant loan”), but
(b) in the tax year in relation to which L is entitled to that relief (“the relevant year”)—
(i) L has no income of the kind mentioned in section 412A(4) or section 412B(3) from which to deduct the outstanding amount, or
(ii) L has insufficient income of that kind to enable the outstanding amount to be deducted in full under those sections.
(2) The claim is for the outstanding amount or (in a case within subsection (l)(b)(ii)) the part of the outstanding amount not capable of being deducted under sections 412A and 412B to be deducted under this section in calculating L’s net income for the four tax years following the relevant year.
(3) The deduction under this section is to be made only from income arising from the payment to L of interest on—
(b) any other loan within subsection (4) or (5).
(4) A loan is within this subsection if—
(a) it is a peer-to-peer loan made by L, and
(b) it was made through an operator (whether or not that operator is the operator through whom the relevant loan was made).
(5) A loan is within this subsection if—
(a) the loan was made by someone other than L,
(b) the right to receive interest on the loan has been assigned to L,
(c) that right was assigned through an operator (whether or not that operator is the operator through whom the relevant loan was made), and
(i) L is a person within paragraph (a), (b) or (c) of section 412I(4), or
(ii) the recipient of the loan is a person within one of those paragraphs and the loan is a personal or small loan.
(6) This section needs to be read with section 412D (how relief works).
412D How carry-forward relief works
(1) This subsection explains how deductions are to be made under section 412C.
The amount to be deducted at any step is limited in accordance with section 25(4) and (5).
Step 1 Deduct the outstanding amount or (in a case within section 412C(l)(b)(ii)) the part of the outstanding amount not capable of being deducted under sections 412A and 412B from the lending income for the first tax year following the relevant year.
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Step 2 Deduct from the lending income for the second tax year following the relevant year any part of the outstanding amount not previously deducted.
Step 3 Apply Step 2 in relation to the lending income for the third and fourth tax years following the relevant year, stopping if all of the outstanding amount is deducted.
“lending income” means income of a kind mentioned in section 412C(3);
“relevant year” has the meaning given by section 412C(l)(b).
412E Subsequent recovery of peer-to-peer loans
(1) This section applies where—
(a) any amount of the principal of a loan has been deducted under this Chapter in calculating a person’s net income for a tax year, and
(b) the person subsequently recovers that amount or any part of it.
(2) The amount recovered is to be treated for the purposes of this Act as if it were interest on the loan paid to the person at the time it was recovered.
(3) For the purposes of this section, a person is to be treated as recovering an amount if the person (or any other person at his or her direction) receives any money or money’s worth—
(a) in satisfaction of the person’s right to recover that amount, or
(b) in consideration of the person’s assignment of the right to recover it;
and where a person assigns such a right otherwise than by way of a bargain made at arm’s length the person shall be treated as receiving money or money’s worth equal to the market value of the right at the time of the assignment.
412F Assigned loans treated as made by the assignee etc
(1) This section applies where—
(a) a person (“A”) is assigned the right to recover the principal of a loan,
(b) the right is assigned through an operator (“O”),
(c) A makes a payment in consideration of the assignment, and
(d) A does not further assign the right.
(2) The loan is to be treated for the purposes of section 412A(1) as—
(a) having been made by A, and
(b) having been made through O.
(3) The amount (if any) of the principal of the loan which is treated as irrecoverable may not exceed the amount which is arrived at by—
(a) taking the amount of the payment mentioned in subsection (l)(c), and
(b) deducting any amount of the principal of the loan previously recovered by A.
412G Nominees etc
For the purposes of this Chapter—
(a) a loan or a payment made by or to a nominee or bare trustee for a person is treated as made by or to that person, and
(b) a right assigned by or to a nominee or bare trustee for a person is treated as assigned by or to that person.
412H Interaction with other reliefs
(1) Subsection (2) applies in relation to a loan if any person has obtained income tax relief (other than under this Chapter) which is properly attributable to the loan.
(2) The amount (if any) of the principal of the loan which is treated as irrecoverable may not exceed the amount which is arrived at by—
22 Mar 2016 : Column 1502
(a) taking the amount of the principal of the loan, and
(b) deducting the amount of the relief mentioned in subsection (1).
412I Meaning of “loan”, “peer-to-peer loan” and related terms
(1) This section applies for the purposes of this Chapter.
(2) “Loan” means a loan of money which —
(a) is made on genuine commercial terms, and
(b) is not part of a scheme or arrangement the main purpose or one of the main purposes of which is to obtain a tax advantage (within the meaning given by section 208 of the Finance Act 2013).
(3) A loan is a “peer-to-peer loan” only if it meets—
(4) Condition A is that the person who made the loan is —
(b) a partnership which consists of—
(ii) at least one person who is not a body corporate, or
(c) an unincorporated body of persons which—
(ii) consists of at least one person who is not a body corporate.
(a) the recipient of the loan is a person within paragraph (a), (b) or (c) of subsection (4), and
(b) the loan is a personal or small loan.
(6) Condition C is that, assuming interest were paid on the loan, the person who made the loan would (except for this Chapter) be liable for income tax charged on the interest.
(7) “Personal loan” means a loan which is not used wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by the recipient of the loan.
(8) “Small loan” means a loan of £25,000 or less.
412J Meaning of “operator” and related terms
(1) This section applies for the purposes of this Chapter.
(2) “Operator” means a person who —
(a) has permission under Part 4A of the Financial Services and Markets Act 2000 to carry on a regulated activity specified in Article 36H of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) (operating an electronic system in relation to lending), or
(b) has been granted equivalent permission under the law of a territory outside the United Kingdom that is within the European Economic Area.
(3) A loan is “made through” an operator if the person who makes the loan and the recipient of the loan enter the agreement under which the loan is made at the invitation of the operator.
(4) A right is “assigned through” an operator if the person who assigns the right and the person to whom the right is assigned enter the agreement under which the assignment takes effect at the invitation of the operator.
(5) A person is not to be treated as having entered an agreement at the invitation of an operator if the operator made the invitation otherwise than in the course of carrying on the activity to which the permission mentioned in subsection (2)(a) or (b) relates.”
(3) In section 24(1) (list of reliefs deductible at Step 2 of the calculation of income tax liability), in paragraph (b), at the appropriate place insert—
“Chapter 1A of Part 8 (irrecoverable peer-to-peer loans),”.
(4) In section 25(3) (list of provisions requiring reliefs to be deducted from particular components of income etc) at the appropriate place insert—
22 Mar 2016 : Column 1503
“sections 412A(4), 412B(3) and 412C(3) (relief for irrecoverable peer-to-peer loans only against interest on certain loans),”.
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. Transactions in securities
That provision may be made amending Chapter 1 of Part 13 of the Income Tax Act 2007.
19. Transactions in securities (procedure)
(1) Chapter 1 of Part 13 of the Income Tax Act 2007 (transactions in securities) is amended as follows.
(2) For section 695 (preliminary notification) substitute—
“695 Notice of enquiry
(1) An officer of Revenue and Customs may enquire into a transaction or transactions if—
(a) the officer has reason to believe that section 684 (person liable to counteraction of income tax advantage) may apply to a person (“the taxpayer”) in respect of the transaction or transactions, and
(b) the officer notifies the taxpayer of his intention to do so.
(2) The notification may be given at any time not more than 6 years after the end of the tax year to which the income tax advantage in question relates.”
(3) Omit sections 696 and 697 (opposed notifications).
(4) In section 698 (counteraction notices), for subsection (1) substitute—
“(1) If on an enquiry under section 695 an officer of Revenue and Customs determines that section 684 applies to the taxpayer, the income tax advantage in question is to be counteracted by adjustments, unless the officer is of the opinion that no counteraction is required.”
(5) In that section, for subsection (5) substitute —
“(5) An assessment may be made in accordance with a counteraction notice at any time (without regard to any time limit on making the assessment that would otherwise apply).”
(6) After that section insert—
“698A No-counteraction notices
(1) If on an enquiry under section 695 an officer of Revenue and Customs is of the opinion that no counteraction is required, the officer must serve notice on the person (a “no-counteraction notice”) stating that no counteraction is required and why.
(2) The taxpayer may apply to the tribunal for a direction requiring an officer of Revenue and Customs to issue one of the following within a specified period —
(b) a no-counteraction notice.
(3) Any such application is to be subject to the relevant provisions of Part 5 of TMA1970 (see, in particular, section 48(2)(b) of that Act).
(4) The tribunal must give the direction applied for unless satisfied that there are reasonable grounds for not serving either a counteraction notice or a no-counteraction notice within a specified period.”
(7) In section 684 (person liable to counteraction), for subsection (4) substitute—
“(4) This section is subject to no-counteraction notices issued under section 698A.”
(8) The amendments made by this Resolution have effect in relation to—
22 Mar 2016 : Column 1504
(a) a transaction occurring on or after 6 April 2016, or
(b) a series of transactions any one or more of which occurs on or after that date.
(9) Accordingly, Chapter 1 of Part 13 of the Income Tax Act 2007 has effect without the amendments made by this Resolution in relation to a tax advantage obtained on or after 6 April 2016 in consequence of—
(a) a transaction occurring before that date, or
(b) a series of transactions all of which occur before that date.
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. Company distributions
That provision may be made amending Chapters 3 and 4 of Part 4 of the Income Tax (Trading and Other Income) Act 2005.
21. Carried interest and disguised fees
That provision may be made about sums arising to individuals who perform investment management services.
22. Abolition of some duties to deduct income tax at source
That—
(1) In Chapter 2 of Part 15 of the Income Tax Act 2007 (deduction of income tax at source by deposit-takers and building societies) omit—
(a) section 851 (duty to deduct when making payment of interest on relevant investment), and
(b) the italic heading preceding it.
(2) In section 876 of the Income Tax Act 2007 (interest paid by deposit-takers), for subsections (1) and (2) substitute—
“(1) The duty to deduct a sum representing income tax under section 874 does not apply to a payment of interest on an investment if—
(a) the payment is made by a deposit-taker, and
(b) when the payment is made, the investment is a relevant investment.
(1A) In this section “deposit-taker”, “investment” and “relevant investment” have the meaning given by Chapter 2.”
(3) Chapter 2 of Part 15 of the Income Tax Act 2007 (deduction of income tax at source by deposit-takers and building societies) is amended in accordance with paragraphs (4) to (25).
(4) For the Chapter heading substitute “Meaning of “relevant investment” for purposes of section 876”.
(5) Section 850 (overview of Chapter) is amended in accordance with paragraphs (6) to (10).
(6) For subsection (1) substitute—
“(1) This Chapter has effect for the purposes of section 876 (duty under section 874 to deduct tax from payments of yearly interest: exception for deposit-takers).”
(7) Omit subsection (2) (which introduces sections 851 and 852).
(8) In subsection (4)(b) (which introduces sections 858 to 870), for “858” substitute “863”.
(9) In subsection (5) (which introduces sections 871 to 873), for “871 to” substitute “872 and”.
(10) In subsection (6) (interpretation), for the words from “Chapter—” to “crediting” substitute “Chapter, crediting”.
(11) Omit section 852 (power to disapply section 851).
22 Mar 2016 : Column 1505
(12) In section 853(1) (meaning of “deposit-taker”), after “In this Chapter” insert “and section 876”.
(13) In section 854(3) (meaning of “relevant investment” in section 851(1)(b)), for “851(l)(b)” substitute “876(l)(b)”.
(14) For section 855(1) (meaning of “investment”) substitute —
“(1) In this Chapter, and section 876, “investment” means a deposit with a deposit-taker.”
(15) Section 856 (meaning of “relevant investment”) is amended in accordance with paragraphs (16) and (17).
(16) In subsection (1), for “this Chapter” substitute “section 876”.
(17) In subsection (2) (exceptions), for “858” substitute “863”.
(18) In section 857 (treating investments as being or not being relevant investments) omit “or building society” in each place.
(a) sections 858 to 861 (investments which are not relevant investments and in relation to which duty under section 874 does not apply), and
(b) the italic heading preceding section 858.
(20) In the italic heading preceding section 863, for “Other investments” substitute “Investments”.
(21) In sections 863, 864, 865 and 868(4) (investments with deposit-takers or building societies) omit “or building society” in each place.
(22) Omit sections 868(3), 869 and 870(2) (investments with building societies).
(23) Omit section 871 (power to make regulations to give effect to Chapter).
(24) In section 872 (power to amend Chapter)—
(a) in subsection (2) (different provision for different deposit- takers)—
(i) for “which amends this Chapter in its application to deposit-takers may do so” substitute “may amend this Chapter”, and
(ii) in each of paragraphs (a) and (b), for “relation” substitute “its application”, and
(b) omit subsections (4) and (5).
(25) Omit section 873(3) to (6) (interpretation of section 861).
(26) In Schedule 12 to the Finance Act 1988 (transfer of building society’s business to a company), in paragraph 6(1) (treatment for tax purposes of benefits conferred in connection with a transfer) omit—
(b) paragraph (b) (benefit not to be subject to deduction of tax under Chapter 2 of Part 15 of the Income Tax Act 2007), and the “or” preceding it.
(27) In section 564Q(1) of the Income Tax Act 2007 (alternative finance return: deduction of income tax at source under Chapter 2 of Part 15)—
(a) after “Chapter 2 of Part 15” insert “and section 876”,
(b) for “deduction by deposit-takers and building societies” substitute “exception for deposit-takers”, and
(c) after “Chapter 2 of that Part” insert “and section 876”.
(28) In section 564Q(5) of the Income Tax Act 2007 (alternative finance return: deduction of income tax at source under Chapters 3 to 5 of Part 15)—
(a) after “of Part 15” insert “except section 876”, and
(b) for “those Chapters” substitute “those provisions”.
(29) In section 847 of the Income Tax Act 2007 (overview of Part 15)—
(a) in subsection (2) omit paragraph (a) (which introduces Chapter 2), and
22 Mar 2016 : Column 1506
(b) in subsection (5) (which introduces Chapters containing provision connected with the duties to deduct), before paragraph (a) insert—
“(za) Chapter 2 (interpretation of section 876 in Chapter 3: exception for deposit-takers),”.
(30) In section 946 of the Income Tax Act 2007 (collection of tax deducted at source: payments to which Chapter applies) omit paragraph (a) (payments from which deductions required to be made under section 851).
(31) In Schedule 2 to the Income Tax Act 2007 omit paragraphs 154 to 156 (transitioned provisions related to Chapter 2 of Part 15 of that Act).
(32) In Schedule 4 to the Income Tax Act 2007 (index of defined expressions)—
(a) omit the entry for “beneficiary under a discretionary or accumulation settlement (in Chapter 2 of Part 15)”,
(b) in the entry for “deposit-taker (in Chapter 2 of Part 15)”, after “Part 15” insert “and section 876”,
(c) omit the entry for “dividend (in Chapter 2 of Part 15)”,
(d) in the entry for “investment (in Chapter 2 of Part 15)”, after “Part 15” insert “and section 876”, and
(e) omit the entry for “relevant investment (in Chapter 2 of Part 15)”.
(33) In consequence of the amendments made by paragraphs (1) and (3) to (32)—
(a) in Schedule 1 to the Income Tax Act 2007 omit paragraph 277,
(b) in Schedule 1 to the Finance Act 2008 omit paragraph 25,
(c) in Schedule 46 to the Finance Act 2013—
(i) in paragraph 68(1) omit paragraph (a) including the “and” at the end,
(ii) in paragraph 69(1) omit paragraph (a) including the “and” at the end,
(iii) omit paragraph 70(1), and
(iv) in paragraph 71(3) omit paragraph (b) and the “and” preceding it, and
(d) in the Finance Act 2014 omit section 3(4).
(34) Chapter 5 of Part 15 of the Income Tax Act 2007 (deduction from payments of UK public revenue
dividends) is amended in accordance with paragraphs (35) and (36).
(35) In section 893(2) (securities which are gross-paying government securities)—
(a) before the “or” at the end of paragraph (a) insert—
“(aa) securities, so far as they are not gilt-edged securities, issued or treated as issued under—
(i) the National Loans Act 1939, or
(ii) the National Loans Act 1968,”, and
(b) in paragraph (b), for “894(1) or (3)” substitute “894(3)”.
(36) In section 894 (power to direct that securities are gross-paying government securities)—
(a) omit subsections (1) and (2) (power in relation to securities within the new section 893(2)(aa)), and
(b) in subsection (5) omit “(1) or”.
(37) The amendments made by paragraphs (1) and (3) to (33) have effect in relation to—
(a) interest paid or credited on or after 6 April 2016, and
(b) dividends or other distributions paid by a building society on or after that date.
(38) Paragraph (37) does not apply to—
(a) the repeals in Schedule 12 to the Finance Act 1988;
(b) the amendments in section 564Q of the Income Tax Act 2007;
(c) the repeal of paragraph 277 of Schedule 1 to the Income Tax Act 2007.
22 Mar 2016 : Column 1507
(39) The repeals mentioned in paragraph (38)(a) and (c) have effect in relation to benefits conferred on or after 6 April 2016.
(40) The amendments mentioned in paragraph (38) (b) have effect in relation to alternative finance return paid on or after 6 April 2016.
(41) The amendments made by paragraph (2), and the amendments made by this Resolution in sections 893 and 894 of the Income Tax Act 2007, have effect in relation to interest paid on or after 6 April 2016.
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.
23. Deduction of income tax at source (tax avoidance)
That—
(1) In Part 15 of the Income Tax Act 2007 (deduction of income tax at source), after section 917 insert—
917A Tax avoidance arrangements
(1) This section applies if and to the extent that—
(a) a person (“the payer”) makes an intellectual property royalty payment,
(b) the payment is received by a person (“the payee”) who is connected with the payer, and
(c) the payment is made under DTA tax avoidance arrangements.
(2) Any duty under Chapter 6 or 7 to deduct a sum representing income tax at any rate applies without regard to any double taxation arrangements.
(3) Any income tax deducted by virtue of subsection (2) may not be set off under section 967 or 968 of CTA 2010.
“arrangements” (except in the phrase “double taxation arrangements”) includes any agreement, understanding, scheme, transaction or series of transactions, whether or not legally enforceable;
“DTA tax avoidance arrangements” means arrangements where, having regard to all the circumstances, it is reasonable to conclude that—
(a) the main purpose, or one of the main purposes, of the arrangements was to obtain a tax advantage by virtue of any provisions of a double taxation arrangement, and
(b) obtaining that tax advantage is contrary to the object and purpose of those provisions;
“intellectual property royalty payment” means—
(a) a payment of a royalty or other sum in respect of the use of a patent,
(b) a payment specified in section 906(l)(a), or
(c) a payment which is a “qualifying annual payment” for the purposes of Chapter 6 by virtue of section 899(3)(a)(ii) (royalties etc from intellectual property);
(b) by one payment or by a series of payments;
“tax advantage” is to be construed in accordance with section 208 of FA 2013.
(5) For the purposes of this section the payer is connected with the payee if the participation condition is met as between them.
(6) Section 148 of TIOPA 2010 (when the participation condition is met) applies for the purposes of subsection (5) as for the purposes of section 147(l)(b) of that Act, but as if references to the actual provision were to the provision made or imposed between the payer and the payee in respect of the arrangements under which the payment is made.”
22 Mar 2016 : Column 1508
(2) The amendment made by this Resolution has effect in respect of a payment made on or after 17 March 2016 under arrangements entered into at any time (including arrangements entered into before that date).
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.
24. Corporation tax (charge for financial year 2017)
That corporation tax is charged for the financial year 2017.
25. Expenditure on research and development
That provision may be made about tax relief for expenditure on research and development.
26. Loan relationships and derivative contracts
That provision may be made amending Parts 5 and 7 of the Corporation Tax Act 2009.
27. Sections 455 and 464A of the Corporation Tax Act 2010 (rates)
That provision may be made about the rates of tax charged under sections 455 and 464A of the Corporation Tax Act 2010.
28. Intangible fixed assets
That provision (including provision having retrospective effect) may be made amending Part 8 of the Corporation Tax Act 2009.
29. Banking companies
That provision may be made amending Part 7A of the Corporation Tax Act 2010.
30. Allowances relating to oil activities
That provision (including provision having retrospective effect) may be made about the allowances that reduce adjusted ring fence profits under Part 8 of the Corporation Tax Act 2010.
31. Profits arising from the exploitation of patents
That provision may be made amending Part 8A of the Corporation Tax Act 2010.
32. Hybrid and other mismatches
That—
(1) Provision may be made for, and in connection with, the counteraction of certain cases that would otherwise give rise to—
22 Mar 2016 : Column 1509
(a) an amount being deductible from a person’s income for tax purposes—
(i) without a corresponding amount of income arising to a person for tax purposes, or
(ii) where an amount of income would arise to a person for tax purposes but would not be taxed at an appropriate rate, or
(i) being deductible from more than one person’s income for tax purposes, or
(ii) being deductible from a person’s income for the purposes of more than one tax.
(2) In this Resolution “tax” includes foreign tax.
33. Insurance companies
That provision may be made amending Part 2 of the Finance Act 2012.
34. Consideration for taking over payment obligations of lessee under a lease of plant or machinery
That provision (including provision having retrospective effect) may be made about consideration for taking over payment obligations of the lessee under a lease of plant or machinery.
35. Capital allowances
That provision (including provision having retrospective effect) may be made about capital allowances.
36. Trade and property business profits
That provision may be made amending Parts 2 and 3 of the Income Tax (Trading and Other Income) Act 2005 and Parts 3 and 4 of the Corporation Tax Act 2009.
37. Transfer pricing
That provision may be made about the application of OECD principles in relation to transfer pricing.
38. Capital gains tax
That provision (including provision having retrospective effect) may be made about capital gains tax.
The House divided:
Ayes 311, Noes 274.
Division No. 223]
[
7.10 pm
AYES
Adams, Nigel
Afriyie, Adam
Aldous, Peter
Allan, Lucy
Allen, Heidi
Amess, Sir David
Andrew, Stuart
Ansell, Caroline
Argar, Edward
Atkins, Victoria
Bacon, Mr Richard
Baker, Mr Steve
Baldwin, Harriett
Barclay, Stephen
Baron, Mr John
Barwell, Gavin
Bebb, Guto
Bellingham, Sir Henry
Benyon, Richard
Beresford, Sir Paul
Berry, Jake
Bingham, Andrew
Blackman, Bob
Blunt, Crispin
Boles, Nick
Bone, Mr Peter
Borwick, Victoria
Bottomley, Sir Peter
Bradley, Karen
Brady, Mr Graham
Brazier, Mr Julian
Bridgen, Andrew
Brine, Steve
Brokenshire, rh James
Bruce, Fiona
Buckland, Robert
Burns, Conor
Burns, rh Sir Simon
Burrowes, Mr David
Burt, rh Alistair
Cairns, Alun
Campbell, Mr Gregory
Carmichael, Neil
Cartlidge, James
Cash, Sir William
Caulfield, Maria
Chalk, Alex
Chishti, Rehman
Chope, Mr Christopher
Churchill, Jo
Clark, rh Greg
Clarke, rh Mr Kenneth
Cleverly, James
Clifton-Brown, Geoffrey
Coffey, Dr Thérèse
Collins, Damian
Colvile, Oliver
Costa, Alberto
Cox, Mr Geoffrey
Crabb, rh Stephen
Davies, Byron
Davies, Chris
Davies, David T. C.
Davies, Glyn
Davies, Dr James
Davies, Mims
Davies, Philip
Davis, rh Mr David
Dinenage, Caroline
Djanogly, Mr Jonathan
Dodds, rh Mr Nigel
Donaldson, rh Mr Jeffrey M.
Double, Steve
Dowden, Oliver
Doyle-Price, Jackie
Drax, Richard
Drummond, Mrs Flick
Duddridge, James
Duncan, rh Sir Alan
Duncan Smith, rh Mr Iain
Dunne, Mr Philip
Elliott, Tom
Ellis, Michael
Ellison, Jane
Ellwood, Mr Tobias
Elphicke, Charlie
Eustice, George
Evans, Graham
Evennett, rh Mr David
Fabricant, Michael
Fallon, rh Michael
Fernandes, Suella
Field, rh Mark
Foster, Kevin
Frazer, Lucy
Freeman, George
Freer, Mike
Fuller, Richard
Fysh, Marcus
Gale, Sir Roger
Garnier, rh Sir Edward
Garnier, Mark
Gauke, Mr David
Ghani, Nusrat
Gibb, Mr Nick
Gillan, rh Mrs Cheryl
Glen, John
Goodwill, Mr Robert
Gove, rh Michael
Graham, Richard
Grant, Mrs Helen
Gray, Mr James
Grayling, rh Chris
Green, Chris
Green, rh Damian
Greening, rh Justine
Grieve, rh Mr Dominic
Griffiths, Andrew
Gummer, Ben
Gyimah, Mr Sam
Halfon, rh Robert
Hall, Luke
Hammond, Stephen
Hancock, rh Matthew
Hands, rh Greg
Harper, rh Mr Mark
Harrington, Richard
Harris, Rebecca
Haselhurst, rh Sir Alan
Hayes, rh Mr John
Heald, Sir Oliver
Heappey, James
Heaton-Harris, Chris
Heaton-Jones, Peter
Henderson, Gordon
Herbert, rh Nick
Hermon, Lady
Hinds, Damian
Hoare, Simon
Hollingbery, George
Hollinrake, Kevin
Hollobone, Mr Philip
Holloway, Mr Adam
Hopkins, Kris
Howarth, Sir Gerald
Howell, John
Howlett, Ben
Huddleston, Nigel
Hunt, rh Mr Jeremy
Jackson, Mr Stewart
James, Margot
Javid, rh Sajid
Jayawardena, Mr Ranil
Jenkin, Mr Bernard
Jenkyns, Andrea
Jenrick, Robert
Johnson, Boris
Johnson, Gareth
Johnson, Joseph
Jones, Andrew
Jones, rh Mr David
Jones, Mr Marcus
Kawczynski, Daniel
Kennedy, Seema
Kinahan, Danny
Knight, rh Sir Greg
Knight, Julian
Kwarteng, Kwasi
Lancaster, Mark
Latham, Pauline
Lee, Dr Phillip
Lefroy, Jeremy
Leigh, Sir Edward
Leslie, Charlotte
Letwin, rh Mr Oliver
Lewis, Brandon
Lewis, rh Dr Julian
Lidington, rh Mr David
Lilley, rh Mr Peter
Loughton, Tim
Lumley, Karen
Mackinlay, Craig
Mackintosh, David
Main, Mrs Anne
Malthouse, Kit
Mann, Scott
Mathias, Dr Tania
Maynard, Paul
McCartney, Jason
McCartney, Karl
McLoughlin, rh Mr Patrick
McPartland, Stephen
Menzies, Mark
Mercer, Johnny
Merriman, Huw
Metcalfe, Stephen
Miller, rh Mrs Maria
Milling, Amanda
Mills, Nigel
Milton, rh Anne
Mitchell, rh Mr Andrew
Mordaunt, Penny
Morgan, rh Nicky
Morris, Anne Marie
Morris, David
Morris, James
Morton, Wendy
Mowat, David
Mundell, rh David
Murray, Mrs Sheryll
Murrison, Dr Andrew
Neill, Robert
Nokes, Caroline
Norman, Jesse
Nuttall, Mr David
Offord, Dr Matthew
Opperman, Guy
Osborne, rh Mr George
Paisley, Ian
Parish, Neil
Patel, rh Priti
Paterson, rh Mr Owen
Pawsey, Mark
Penning, rh Mike
Penrose, John
Perry, Claire
Phillips, Stephen
Philp, Chris
Pickles, rh Sir Eric
Pincher, Christopher
Poulter, Dr Daniel
Pow, Rebecca
Prentis, Victoria
Prisk, Mr Mark
Pursglove, Tom
Quin, Jeremy
Quince, Will
Raab, Mr Dominic
Redwood, rh John
Rees-Mogg, Mr Jacob
Robertson, Mr Laurence
Robinson, Gavin
Robinson, Mary
Rosindell, Andrew
Rudd, rh Amber
Rutley, David
Sandbach, Antoinette
Scully, Paul
Selous, Andrew
Shannon, Jim
Shapps, rh Grant
Sharma, Alok
Simpson, rh Mr Keith
Smith, Chloe
Smith, Henry
Smith, Julian
Smith, Royston
Soames, rh Sir Nicholas
Solloway, Amanda
Soubry, rh Anna
Spelman, rh Mrs Caroline
Spencer, Mark
Stephenson, Andrew
Stevenson, John
Stewart, Iain
Stewart, Rory
Streeter, Mr Gary
Stride, Mel
Sturdy, Julian
Sunak, Rishi
Swayne, rh Mr Desmond
Swire, rh Mr Hugo
Syms, Mr Robert
Thomas, Derek
Throup, Maggie
Timpson, Edward
Tolhurst, Kelly
Tomlinson, Justin
Tomlinson, Michael
Tracey, Craig
Tredinnick, David
Trevelyan, Mrs Anne-Marie
Truss, rh Elizabeth
Tugendhat, Tom
Turner, Mr Andrew
Tyrie, rh Mr Andrew
Vaizey, Mr Edward
Vara, Mr Shailesh
Vickers, Martin
Villiers, rh Mrs Theresa
Walker, Mr Charles
Walker, Mr Robin
Wallace, Mr Ben
Warburton, David
Warman, Matt
Watkinson, Dame Angela
Wharton, James
Whately, Helen
White, Chris
Whittaker, Craig
Whittingdale, rh Mr John
Wiggin, Bill
Williams, Craig
Williamson, rh Gavin
Wilson, Mr Rob
Wilson, Sammy
Wollaston, Dr Sarah
Wood, Mike
Wragg, William
Wright, rh Jeremy
Zahawi, Nadhim
Tellers for the Ayes:
Sarah Newton
and
Simon Kirby
NOES
Abbott, Ms Diane
Abrahams, Debbie
Ahmed-Sheikh, Ms Tasmina
Alexander, Heidi
Ali, Rushanara
Anderson, Mr David
Arkless, Richard
Ashworth, Jonathan
Bardell, Hannah
Barron, rh Kevin
Beckett, rh Margaret
Benn, rh Hilary
Berger, Luciana
Betts, Mr Clive
Black, Mhairi
Blackford, Ian
Blackman, Kirsty
Blenkinsop, Tom
Blomfield, Paul
Boswell, Philip
Bradshaw, rh Mr Ben
Brake, rh Tom
Brennan, Kevin
Brock, Deidre
Brown, Alan
Brown, Lyn
Brown, rh Mr Nicholas
Buck, Ms Karen
Burden, Richard
Burgon, Richard
Burnham, rh Andy
Butler, Dawn
Byrne, rh Liam
Cadbury, Ruth
Cameron, Dr Lisa
Campbell, rh Mr Alan
Campbell, Mr Ronnie
Carmichael, rh Mr Alistair
Champion, Sarah
Chapman, Douglas
Chapman, Jenny
Cherry, Joanna
Clegg, rh Mr Nick
Clwyd, rh Ann
Coffey, Ann
Cooper, Julie
Cooper, Rosie
Cooper, rh Yvette
Corbyn, rh Jeremy
Cowan, Ronnie
Cox, Jo
Coyle, Neil
Crawley, Angela
Creagh, Mary
Creasy, Stella
Cruddas, Jon
Cryer, John
Cummins, Judith
Cunningham, Alex
Cunningham, Mr Jim
Dakin, Nic
Danczuk, Simon
Davies, Geraint
Day, Martyn
De Piero, Gloria
Docherty-Hughes, Martin
Donaldson, Stuart Blair
Doughty, Stephen
Dowd, Jim
Dowd, Peter
Dromey, Jack
Dugher, Michael
Durkan, Mark
Eagle, Ms Angela
Eagle, Maria
Efford, Clive
Elliott, Julie
Ellman, Mrs Louise
Esterson, Bill
Evans, Chris
Farrelly, Paul
Farron, Tim
Fellows, Marion
Ferrier, Margaret
Field, rh Frank
Fitzpatrick, Jim
Fletcher, Colleen
Flint, rh Caroline
Flynn, Paul
Fovargue, Yvonne
Foxcroft, Vicky
Gapes, Mike
Gardiner, Barry
Gethins, Stephen
Gibson, Patricia
Glass, Pat
Glindon, Mary
Godsiff, Mr Roger
Goodman, Helen
Grady, Patrick
Grant, Peter
Gray, Neil
Green, Kate
Greenwood, Lilian
Greenwood, Margaret
Griffith, Nia
Hamilton, Fabian
Hanson, rh Mr David
Harman, rh Ms Harriet
Harris, Carolyn
Hayes, Helen
Healey, rh John
Hendrick, Mr Mark
Hendry, Drew
Hepburn, Mr Stephen
Hillier, Meg
Hodgson, Mrs Sharon
Hoey, Kate
Hollern, Kate
Hopkins, Kelvin
Hosie, Stewart
Howarth, rh Mr George
Hunt, Tristram
Huq, Dr Rupa
Hussain, Imran
Irranca-Davies, Huw
Jarvis, Dan
Johnson, rh Alan
Jones, Gerald
Jones, Helen
Jones, Mr Kevan
Jones, Susan Elan
Kane, Mike
Kaufman, rh Sir Gerald
Keeley, Barbara
Kendall, Liz
Kerevan, George
Kerr, Calum
Khan, rh Sadiq
Kinnock, Stephen
Kyle, Peter
Lamb, rh Norman
Lavery, Ian
Law, Chris
Leslie, Chris
Lewell-Buck, Mrs Emma
Lewis, Clive
Lewis, Mr Ivan
Long Bailey, Rebecca
Lucas, Caroline
Lucas, Ian C.
MacNeil, Mr Angus Brendan
Mactaggart, rh Fiona
Madders, Justin
Mahmood, Mr Khalid
Mahmood, Shabana
Malhotra, Seema
Mann, John
Marris, Rob
Marsden, Mr Gordon
Maskell, Rachael
Matheson, Christian
Mc Nally, John
McCabe, Steve
McCaig, Callum
McCarthy, Kerry
McDonagh, Siobhain
McDonald, Andy
McDonald, Stewart Malcolm
McDonald, Stuart C.
McDonnell, Dr Alasdair
McDonnell, John
McFadden, rh Mr Pat
McGarry, Natalie
McGinn, Conor
McGovern, Alison
McInnes, Liz
McKinnell, Catherine
McLaughlin, Anne
McMahon, Jim
Meale, Sir Alan
Mearns, Ian
Miliband, rh Edward
Monaghan, Carol
Monaghan, Dr Paul
Moon, Mrs Madeleine
Morden, Jessica
Mulholland, Greg
Mullin, Roger
Murray, Ian
Nandy, Lisa
Newlands, Gavin
Nicolson, John
O'Hara, Brendan
Onn, Melanie
Onwurah, Chi
Osamor, Kate
Oswald, Kirsten
Owen, Albert
Paterson, Steven
Pearce, Teresa
Pennycook, Matthew
Phillips, Jess
Phillipson, Bridget
Powell, Lucy
Pugh, John
Qureshi, Yasmin
Rayner, Angela
Reed, Mr Jamie
Reed, Mr Steve
Rees, Christina
Reeves, Rachel
Reynolds, Emma
Reynolds, Jonathan
Rimmer, Marie
Ritchie, Ms Margaret
Robertson, rh Angus
Robinson, Mr Geoffrey
Rotheram, Steve
Salmond, rh Alex
Saville Roberts, Liz
Sharma, Mr Virendra
Sheerman, Mr Barry
Sheppard, Tommy
Sherriff, Paula
Shuker, Mr Gavin
Siddiq, Tulip
Skinner, Mr Dennis
Slaughter, Andy
Smeeth, Ruth
Smith, rh Mr Andrew
Smith, Angela
Smith, Cat
Smith, Jeff
Smith, Nick
Smith, Owen
Smyth, Karin
Spellar, rh Mr John
Starmer, Keir
Stephens, Chris
Stevens, Jo
Streeting, Wes
Stringer, Graham
Tami, Mark
Thewliss, Alison
Thomas, Mr Gareth
Thomas-Symonds, Nick
Thompson, Owen
Thomson, Michelle
Thornberry, Emily
Timms, rh Stephen
Trickett, Jon
Turley, Anna
Turner, Karl
Twigg, Derek
Twigg, Stephen
Umunna, Mr Chuka
Vaz, rh Keith
Vaz, Valerie
Weir, Mike
West, Catherine
Whiteford, Dr Eilidh
Whitehead, Dr Alan
Whitford, Dr Philippa
Williams, Hywel
Williams, Mr Mark
Wilson, Corri
Wilson, Phil
Winnick, Mr David
Winterton, rh Dame Rosie
Wishart, Pete
Woodcock, John
Wright, Mr Iain
Zeichner, Daniel
Tellers for the Noes:
Sue Hayman
and
Grahame M. Morris
Question accordingly agreed to.
22 Mar 2016 : Column 1510
22 Mar 2016 : Column 1511
22 Mar 2016 : Column 1512
22 Mar 2016 : Column 1513
22 Mar 2016 : Column 1514
39. Inheritance tax
That provision (including provision having retrospective effect) may be made about inheritance tax.
40. Estate duty
That provision may be made about estate duty.
41. Apprenticeship levy
That provision may be made for and in connection with the imposition of a new tax in respect of payments of earnings to or for the benefit of employed earners.
42. Value added tax (refunds to specified persons)
That provision may be made for refunding value added tax to persons specified by the Treasury.
43. Value added tax (joint and several liability)
That provision may be made about joint and several liability for value added tax.
44. Value added tax (Isle of Man charities)
That provision may be made for the purposes of value added tax about charities subject to the control of the High Court of the Isle of Man.
45. Stamp duty land tax (calculating tax on non-residential and mixed transactions)
(1) Section 55 of the Finance Act 2003 (general rules on calculating the amount of stamp duty land tax chargeable) is amended in accordance with paragraphs (2) to (7).
(2) In subsection (1) for (1C) and (2)” substitute “and (1C)”.
(a) omit the words from “the relevant land” to “and”,
(i) for “Table A” substitute “the appropriate table”,
(ii) for “that Table” substitute “the appropriate table”,
(a) Table A, if the relevant land consists entirely of residential property, and
(b) Table B, if the relevant land consists of or includes land that is not residential property.”, and
22 Mar 2016 : Column 1515
“Table B: Non-residential or mixed
| Relevant consideration | Percentage |
| So much as does not exceed £150,000 So much as exceeds £150,000 but does not exceed £250,000 The remainder (if any) | 0% 2% 5%” |
(a) omit the words from “the relevant land” to “and” (in the first place it occurs),
(i) for “Table A” substitute “the appropriate table”,
(ii) for “that Table” substitute “the appropriate table”,
(a) Table A, if the relevant land consists entirely of residential property, and
(b) Table B, if the relevant land consists of or includes land that is not residential property.”
(a) in the words before paragraph (a), for “subsections (1B) and (2)” substitute “subsection (IB)”, and
(b) in paragraph (b) omit, “subject as follows”.
(a) in the words before paragraph (a), for the words from “subsections (1C)” to “linked transactions” substitute “subsection (1C)”, and
(b) in paragraph (a) for “those” substitute “the linked”.
(8) Schedule 5 to the Finance Act 2003 (rules on calculating the amount of stamp duty land tax chargeable in respect of transactions for which the consideration consists of or includes rent) is amended in accordance with paragraphs (9) to (11).
(9) In paragraph 2(3) (calculation of tax chargeable in respect of rent) in Table B (bands and percentages for non-residential or mixed property) for the final entry substitute
| “Over £150,000 but not over £5 million Over £5 million | 1% 2% |
(10) In paragraph 9 (tax chargeable in respect of consideration other than rent: general), in sub-paragraph (1), omit “(but see paragraph 9A)”.
(11) Omit paragraph 9A (calculation of tax chargeable in respect of consideration other than rent: 0% band) and the cross-heading preceding it.
(12) The amendments made by this Resolution have effect in relation to any land transaction of which the effective date is, or is after, 17 March 2016.
(13) 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 17 March 2016, or
(b) the transaction is effected in pursuance of a contract entered into before that date and is not excluded by paragraph (15).
(14) An election under paragraph (13)—
(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.
22 Mar 2016 : Column 1516
(15) A transaction effected in pursuance of a contract entered into before 17 March 2016 is excluded by this paragraph if—
(a) there is any variation of the contract, or assignment of rights under the . contract, on or after 17 March 2016,
(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, 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.
“land transaction return”, in relation to a transaction, means the return under section 76 of FA 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.