John Bercow
Main Page: John Bercow (Speaker - Buckingham)Department Debates - View all John Bercow's debates with the HM Treasury
(9 years, 4 months ago)
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Mr Speaker
I call the Minister to move the motion. Table A: Residential Part of relevant consideration Rate So much as does not exceed £125,000 0% So much as exceeds £125,000 but does not exceed £250,000 2% So much as exceeds £250,000 but does not exceed £925,000 5% So much as exceeds £925,000 but does not exceed £1,500,000 10% The remainder (if any) 12%
Is the Minister not present? [Hon. Members: “No.”] In that case, I call the Minister for Pensions to move the motion.
Motion made, and Question proposed,
That, pursuant to section 5 of the Provisional Collection of Taxes Act 1968, provisional statutory effect shall be given to the following motion:
Stamp duty land tax (residential property transactions)
That—
(1) Part 4 of the Finance Act 2003 (stamp duty land tax) is amended as follows.
(2) Section 55 (general rules on calculating the amount of stamp duty land tax chargeable) is amended as follows.
(3) In subsection (1) for “a percentage of the chargeable consideration for the transaction” substitute “determined in accordance with subsections (IB), (1C) and (2)”.
(4) After subsection (1A) insert—
“(IB) If the relevant land consists entirely of residential property and the transaction is not one of a number of linked transactions, the amount of tax chargeable is determined as follows—
Step 1
Apply the rates specified in the second column of Table A below to the parts of the relevant consideration specified in the first column of that Table.
Step 2
Add together the amounts calculated at Step 1 (if there are two or more such amounts).
(1C) If the relevant land consists entirely of residential property and the transaction is one of a number of linked transactions, the amount of tax chargeable in respect of the particular transaction under consideration is determined as follows—
Step 1
Apply the rates specified in the second column of Table A in subsection (IB) to the parts of the relevant consideration specified in the first column of that Table.
Step 2
Add together the amounts calculated at Step 1 (if there are two or more such amounts).
Step 3
Multiply the amount given by Step 1 or Step 2, as the case may be, by—
where—
C is the chargeable consideration for the transaction, and
R is the relevant consideration.”
(5) In subsection (2) for the words from the beginning of that subsection to the end of Table A substitute—
“If the relevant land consists of or includes land that is not residential property, the amount of tax chargeable is the percentage of the chargeable consideration for the transaction determined in accordance with Table B below by reference to the amount of the relevant consideration.”
(6) In subsection (3) for “subsection (2)” substitute “subsections (IB) and (2)”.
(7) In subsection (4) at the beginning insert “For the purposes of subsections (1C) and (2),”.
(8) Omit subsection (7).
(9) Section 74 (exercise of collective rights by tenants of flats) is amended as follows.
(10) In subsection (1A)—
(a) in the opening words, for “rate” substitute “amount”,
(b) in Step 2—
(i) for “rate of tax and the” substitute “amount of', and
(ii) for “subsections (2) and (3)” substitute “subsection (IB)”,
(c) in Step 3—
(i) for “rate of tax and the” substitute “amount of”, and
(ii) for “subsections (2) and (3)” substitute “subsection (IB)”, and
(d) in Step 4 for “subsections (2) and (3) do” substitute “subsection (IB) does”.
(11) For subsections (2) and (3) substitute—
“(IB) Where step 2 or 3 of subsection (1A) requires the amount of tax chargeable to be determined in accordance with this subsection, it is determined as follows.
Step 1
Determine the amount of tax chargeable under section 55 as if the relevant consideration for the chargeable transaction were the fraction of the relevant consideration calculated under step 1 of subsection (1A).
Step 2
Multiply the amount determined at step 1 by the number of qualifying flats contained in the premises.”
(12) In section 75 (crofting community right to buy) for subsections (2) and (3) substitute—
“(1A) In that case, the amount of tax is determined as follows—
Step 1
Determine the amount of tax chargeable under section 55 as if the relevant consideration for the chargeable transaction were the fraction of the relevant consideration produced by dividing the total amount of that consideration by the number of crofts being bought.
Step 2
Multiply the amount determined at step 1 by the number of crofts being bought under that transaction.”
(13) In section 77(l)(b) (notifiable transactions) for “which tax is chargeable at a rate of 1 % or higher” substitute “any part of which tax is chargeable at a rate of more than 0%”.
(14) In section 77A(2)(a) (notifiable transactions: exception of certain acquisitions of major interests in land: interpretation) for “1% or higher” substitute “more than 0%”.
(15) In section 80(2) (requirement to make return where contingency ceases, or consideration is ascertained, and tax or additional tax is payable etc)—
(a) in the opening words, after “before” insert “(calculated in either case according to the effective date of the transaction)”, and
(b) omit paragraph (c), but not the “and” at the end.
(16) In section 80(4) (cases where less tax payable) after “in respect of a transaction” insert “(calculated according to its effective date)”.
(17) In section 81ZA(l)(c) (alternative finance arrangements: additional tax where reliefs withdrawn to be calculated by reference to effective date) for “by reference to the rates in force at” substitute “according to”.
(18) In section 81A(1) (requirement to make return in consequence of later linked transactions where tax or additional tax is payable etc)—
(a) in the opening words, after “before” insert “(calculated in either case according to the effective date of the earlier transaction)”, and
(b) omit paragraph (c), but not the “and” at the end.
(19) In section 109(2)(b) (general power to vary Part 4 of the 2003 Act: power to alter descriptions of transaction chargeable at any existing rate or amount) after “amount” insert “, or in respect of which tax is calculated in accordance with any particular provision”.
(20) In section 122 omit the entry for “rate of tax”.
(21) In paragraph 3(l)(b) of Schedule 4A (certain high-value transactions not linked to other transactions for purposes of section 55(4)) for “55(4)” substitute “55(1B), (1C) and (4)”.
(22) Schedule 6B (transfers involving multiple dwellings) is amended as follows.
(23) For paragraph 4(1) substitute—
“(1) If relief under this Schedule is claimed for a relevant transaction, the amount of tax chargeable in respect of the transaction is the sum of—
(a) the tax related to the consideration attributable to dwellings (see paragraph 5(1) and (2)), and
(b) the tax related to the remaining consideration (if any) (see paragraph 5(7)).”
(24) Omit paragraph 4(4).
(25) For the italic heading before paragraph 5 substitute “The amount of tax chargeable”.
(26) For paragraph 5(1) and (2) substitute—
“(1) For the purposes of paragraph 4(l)(a), “the tax related to the consideration attributable to dwellings” is determined as follows—
Step 1
Determine the amount of tax that would be chargeable under section 55 on the assumption that—
(a) the relevant land consisted entirely of residential property, and
(b) the relevant consideration were the fraction produced by dividing total dwellings consideration by total dwellings.
Step 2
Multiply the amount determined at Step 1 by total dwellings.
Step 3
If the relevant transaction is one of a number of linked transactions, go to Step 4.
Otherwise, the amount found at Step 2 is the tax related to the consideration attributable to dwellings.
Step 4
Multiply the amount found at Step 2 by—
where—
“CD” is the consideration attributable to dwellings for the relevant transaction, and “TDC” is total dwellings consideration.
(2) But if the amount found at Step 2 of sub-paragraph (1) is less than 1% of total dwellings consideration, for the purposes of paragraph 4(l)(a) “the tax related to the consideration attributable to dwellings” is an amount equal to 1% of the consideration attributable to dwellings.”
(27) For paragraph 5(7) substitute—
“(7) For the purposes of paragraph 4(l)(b), “the tax related to the remaining consideration” is the appropriate fraction of the amount of tax which (but for this Schedule) would be due in respect of the relevant transaction.
(8) In subsection (7) “the appropriate fraction” means—
where—
“RC” is the remaining consideration for the relevant transaction,
“TDC” is total dwellings consideration, and
“TRC” is total remaining consideration.
(9) For a transaction that is not one of a number of linked transactions, “total remaining consideration” is the remaining consideration for that transaction (see paragraph 4(3)).
(10) For one of a number of linked transactions, “total remaining consideration” is—
(a) the total of the chargeable consideration for all those transactions, less
(b) total dwellings consideration.”
(28) In paragraph 6(1) (change of circumstances after relief given) for paragraph (c) substitute—
“(c) had the event occurred immediately before the effective date of the transaction, more tax (calculated according to the effective date of the transaction) would have been payable, whether because the transaction would not have been a relevant transaction or otherwise.”
(29) In paragraph 6(3) (requirement to make return where more tax payable than was paid) omit paragraph (c), but not the “and” at the end.
(30) In paragraph 8(1) of Schedule 7 (acquisition relief)—
(a) for “rate” substitute “amount”, and
(b) for “0.5%” substitute “an amount equal to 0.5% of the chargeable consideration for the transaction”.
(31) In paragraph 4B(1) of Schedule 9 (shared ownership transactions) for “rate” substitute “amount”.
(32) In paragraph 12 of Schedule 9 (shared ownership trusts) for “rate” substitute “amount”.
(33) In paragraph 30(2) of Schedule 15 (partnerships) in paragraph (a) for “rate of tax chargeable under that section is 1% or higher” substitute “amount of tax chargeable under that section is not zero”.
(34) In paragraph 3(3) of Schedule 17A (leases that continue after a fixed term: additional tax to be calculated by reference to effective date)—
(a) in the opening words, after “before” insert “(calculated in either case according to the effective date of the transaction)”, and
(b) omit paragraph (c), but not the “and” at the end.
(35) In paragraph 4(3) of Schedule 17A (treatment of leases for indefinite term: additional tax to be calculated by reference to effective date)—
(a) in the opening words, after “before” insert “(calculated in either case according to the effective date of the transaction)”, and
(b) omit paragraph (c), but not the “and” at the end.
(36) In paragraph 7(1) of Schedule 19 (old linked transactions relevant to rate of tax) for “rate” substitute “amount”.
(37) In paragraph 9(4) of Schedule 19 (exercise of option or right of pre-emption acquired before implementation date) for “rate” substitute “amount”.
(38) In consequence of amendments made by preceding provisions of this Resolution—
(a) in the Finance Act 2006, omit section 162(1),
(b) in the Finance Act 2010, omit section 7(1), and
(c) in the Finance Act 2012—
(d) omit section 213(1), and
(e) in Schedule 35, omit paragraphs 2(4) and (6) and 5(3).
(39) The amendments made by this Resolution have effect in relation to any land transaction of which the effective date is, or is after, 4 December 2014.
(40) But those amendments do not have effect in relation to a transaction if the purchaser so elects and either—
(a) the transaction is effected in pursuance of a contract entered into and substantially performed before 4 December 2014, or
(b) the transaction is effected in pursuance of a contract entered into before that date and is not excluded by paragraph (42).
(41) An election under paragraph (40)—
(a) must be included in the land transaction return made in respect of the transaction or in an amendment of that return, and
(b) must comply with any requirements specified by the Commissioners for Her Majesty's Revenue and Customs as to its form or the manner of its inclusion.
(42) A transaction effected in pursuance of a contract entered into before 4 December 2014 is excluded by this paragraph if—
(a) there is any variation of the contract, or assignment (or assignation) of rights under the contract, on or after 4 December 2014,
(b) the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or
(c) on or after that date there is an assignment (or assignation), subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.
(43) In paragraphs (40) to (42)—
“land transaction return”, in relation to a transaction, means the return under section 76 of the Finance Act 2003 in respect of that transaction;
“purchaser” has the same meaning as in Part 4 of that Act (see section 43(4) of that Act);
“substantially performed”, in relation to a contract, has the same meaning as in that Part (see section 44(5) of that Act).
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.—(Steve Webb.)
Mr Speaker
I am sure that the Minister who should be here is exceptionally grateful to the Minister for Pensions. I now call Shabana Mahmood.
Thomas Docherty (Dunfermline and West Fife) (Lab)
On a point of order, Mr Speaker. As far as I can see, no Minister is present. [Interruption.] I mean that no Treasury Minister is present. Is this normal practice? How can my hon. Friend the Member for Birmingham, Ladywood (Shabana Mahmood) proceed with her speech when there is no Treasury Minister here to respond?
Mr Speaker
Let me say to the hon. Gentleman, on the strength of having been in the House for 17 years, that I have from time to time observed quite a lot of things that do not constitute normal practice. Let me also say to him, for the avoidance of doubt, that government is seamless in procedural terms, and any Minister can move the motion on the Order Paper.
Is it commonplace for the Minister who has direct responsibility to be absent at the material moment? It is not, although, in fairness, it having happened now under this Government, I should point out that it did happen on one occasion under the last. It is an irregular state of affairs, but the Minister who should be here will, as I have said, be immensely grateful to the Minister for Pensions, both for his presence and for his quickness of mind and fleetness of foot in taking to the Dispatch Box. I think that we will leave it there for now.
It must be said that this sort of thing is to be deprecated—very strongly deprecated—but it does not happen very often, and I hope that it will not happen again. No doubt words can be had. It is everyone’s responsibility to keep an eye on the Annunciator. The Minister has a duty to be present at the appointed moment, and the appointed moment can be a movable feast. It is the responsibility of the Minister and the Whips to make sure that the Minister is present. He or she was not present, but the Minister for Pensions has helped out.
Steve McCabe (Birmingham, Selly Oak) (Lab)
On a point of order, Mr Speaker. I just want to clarify something. If the Minister eventually manages to turn up, will it be seemly for him to take part in the debate, having not been here at the beginning?
Mr Speaker
The point about being here at the start relates to statements. I hope that the hon. Gentleman does not feel too sore about that.
Mr Speaker
I am grateful to the hon. Gentleman for his rather adroit piece of time-wasting.
Mr Alan Reid (Argyll and Bute) (LD)
On a point of order, Mr Speaker. This is indeed a day on which we are witnessing parliamentary events that are not very common.
One possible reason for the Minister’s not being here on time is that he was caught unexpectedly—surprised—by the fact that only one Member of the Opposition asked a question in response to the statement by the Minister for Pensions. It is the first time in all my years in the House that I have been present when Opposition Members—apart from the Front-Bench spokesman—have had absolutely nothing to say in response to a statement. Is it not possible that the Minister was held up because he expected the statement to last for the normal length of time?
Mr Speaker
The hon. Gentleman is not only dexterous in parliamentary terms, but he is, in my experience, an unfailingly loyal man, and he has done his best to rescue those on the Treasury Bench in the current circumstances. All that I will say is that Ministers, in any Government, should not be surprised. They must not allow themselves to be put in a position in which they are surprised, and therefore not present. The Minister has not spoken, and therefore if the Minister turns up—and we are grateful to him or her if he or she does—the Minister will have an opportunity to speak.
Mr Speaker
I will take a point of order from the Secretary of State for Work and Pensions, but then we must proceed with Shabana Mahmood’s speech.
Mr Duncan Smith
On a point of order, Mr Speaker. May I, on behalf of the Government, unreservedly apologise to you if any indiscretion has been performed or any bad opinion has been made? This is not intentional. My Ministers and I will see this debate through to its conclusion on behalf of the Government.
Mr Speaker
I am very grateful to the Secretary of State. We will see whether the Treasury Minister turns up, but the willingness to help of the Secretary of State for Work and Pensions is noted and appreciated, and I thank him for his typical courtesy in what he has just said. Let us now proceed in a pragmatic way and listen to Shabana Mahmood.
Shabana Mahmood
Thank you, Mr Speaker. I am not sure that I can respond to an opening speech that I have not heard. [Interruption.] Well, the case has not been made by the Government—the motion has only been made formally—so may I take some guidance from you, Mr Speaker, on how best to proceed?
Mr Speaker
Yes, the hon. Lady is welcome to take guidance from me, and it is this: the hon. Lady’s responsibility is to speak to the motion on the Order Paper rather than to any particular speech that might be made, so while I understand that this is an unusual state of affairs, the responsibility is to speak to the motion. The hon. Lady knows what the purport of the motion is, so she should not unduly trouble herself by trying to anticipate what the Minister might say if he were here—because he can’t, because he isn’t.
Sir Oliver Heald (North East Hertfordshire) (Con)
On a point of order, Mr Speaker. Yesterday we heard from the Chancellor of the Exchequer about a change to stamp duty land tax on residential property transactions, and I notice that the information he gave yesterday is set out at step 2 of the motion before the House. Would it therefore be in order for the hon. Member for Birmingham, Ladywood (Shabana Mahmood), in making her speech and her remarks, to go through those points which are already clearly on the record and are contained in the motion?
Mr Speaker
It would be. It would be perfectly orderly, and it is good of the hon. and learned Gentleman to offer to help, but I think we can get by without his assistance for now.
I hope my guidance to the hon. Lady is clear. I realise this is an unusual situation for her to face, but if I remember rightly she is a product of Lincoln college, Oxford, so she is what they call prodigiously bright, and I am sure she can cope with the situation.
Shabana Mahmood
Thank you, Mr Speaker, and forgive me for seeking clarification on just one further point: I wonder whether it might be more helpful and conducive to bringing the debate along if I come in later, once the Minister has been able to present himself in the Chamber.
Mr Speaker
The answer is that the hon. Lady would need the leave of the House to proceed in that way, but my strong sense is that the leave of the House would be forthcoming. [Interruption.] I am in receipt of intelligence on this matter—[Interruption.] The Minister is here! I was just about to say he was a minute away. The Minister is with us and we are grateful to the Minister. [Interruption.] Order.
Mr Speaker
Mr Docherty, calm yourself. You are aspiring to be a statesman, but you have got some distance to travel.
If the Minister is content, he can now speak to his motion and the hon. Member for Birmingham, Ladywood (Shabana Mahmood), the shadow Minister, can then respond. I think that will be the most orderly way to proceed. I am trying to give the Minister, who has rushed to the Chamber, a chance to recover his breath. In fairness to the Minister, I should say that he came to see me about these matters the other day, displaying his usual courtesy, which was much appreciated by the Chair, and I know that it is inadvertent on his part that he is late. These things happen. We do not need to dwell on it. The Minister is here, and I thank him for that, and in the hope he has now recovered his breath, I look forward to him opening the debate on his own motion.