Amendment of the Law Debate
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John Bercow
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(9 years, 1 month ago)
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Stephen Twigg
That is not what the Leader of the Opposition has said. I worked on that policy. We want to ensure that apprenticeships are high quality, learning from the countries I mentioned that have a great track record in this area. Our policy is not the policy to which the hon. Gentleman referred.
I appear not to have received the extra minute for the intervention that I think I should have had, Mr Speaker. Should I have that extra minute?
Mr Speaker
Yes. I would not want the hon. Gentleman to be denied, and I think that in the interim the appropriate adjustment has been made. I am glad that he is alert to his rights.
Stephen Twigg
I am immensely grateful to you, Mr Speaker.
To get this right, we need to give priority to spending on education. That is why the commitment that the Labour party has made to protect the entire budget of the Department for Education, including early years and 16 to 19, is so important. That contrasts significantly with the Conservative policy, which does not protect early years and 16 to 19. Those are precisely the areas that have faced the biggest cuts over the past five years, and they would face even bigger cuts were the Conservatives to win again. Investment in education and fairness in the jobs market should be features of a Budget, but they were not features of this one.
Chris Leslie
I commend to Conservative Members, who should have a good read of it, this very authoritative document with very carefully crafted figures:
“Source: Chief Secretary to the Treasury”.
It was a classic. My hon. Friend knows that the real Budget was in the Red Book. Shall I pass it to him? Perhaps not.
The Chancellor told us in the Budget that everything was sunshine and roses, but in coalition Britain, 900,000 people use food banks, 600,000 people are affected by the bedroom tax, the typical working person is £1,600 a year worse off and the NHS is in crisis. The Chancellor tried to find the best statistic, however obscure, to muddy the waters and deny what most working people know, which is that their wages have eroded year after year as we have experienced the longest period of prices exceeding income since the 1920s. He did that by relying on a forecast for this year, rather than real data, and by adding university and charitable income, as well as what are known as imputed rents from homes even if they are not actually rented. That was basically designed to say, “If you stand on one leg and squint a little, there you are—you’re back to 2010 levels of affluence and incomes.” Even on that statistical measure, from election date to election date—rather than the start of the calendar year, as the Chancellor tried to use—people are still worse off than they were. Of course, all that does nothing to change the burden of higher taxes and lower tax credits that have seen families worse off by more than £1,000 a year. As ever, the Chancellor may give a little with one hand, but he takes away much more with the other.
By the way, now that the Chancellor has taken the time to enter the Chamber, it would be interesting to know whether he has spotted the Prime Minister’s announcement this afternoon. I understand that the Prime Minister has indicated that he will not stand for election again after this general election. He has said tonight that he is likely to be gone in a couple of years’ time, so what will the country be voting for at the next election? I can see the poster now—“Vote Cameron, get Osborne”—and all the right-wing agenda that would go with it. A Prime Minister who did not win his first election, and had not won a second election, would be saying that he would not win a third.
Of course there were a few give-away measures in the Budget, and we welcome anything that helps those on lower and middle incomes. Why, however, does the Chancellor still stand by the biggest give-away of them all? His tax cut for the wealthiest 1%—those earning £150,000—means that someone earning £1 million each year gets an annual tax cut of £42,000. That is simply unfair and unacceptable, and that is why we will vote against those income tax plans this evening. We will vote against the Government’s Budget plans for public services and public investment, because although we must balance the books as soon as possible in the next Parliament, going so far beyond that—with cuts over the next three years that are twice as deep as those of the past three years—means extreme cuts to services on a scale not experienced for generations. [Interruption.]
Mr Speaker
Order. There is a most discourteous exchange taking place between those on the two Front Benches while the hon. Gentleman the shadow Chief Secretary is addressing the House. Modesty forbids me from naming the errant Members, but I feel sure that they will correct their behaviour at once.
Chris Leslie
Perhaps we can ask Hansard for a transcript later. I would certainly be interested to read that.
When we look at the Chancellor’s plans—and those of the Secretary of State for Work and Pensions—we see that he is thinking about cutting for the next three years at twice the level we have seen over the past three years. The Chancellor realised how toxic his plans were shortly after the autumn statement, when he published the trajectory that showed he would take Britain back to 1930s levels of public investment as a share of national income. In the days running up to the Budget, we were therefore told that he had had a change of heart on public spending—coincidentally, it was just weeks before an election campaign. Sure enough, the figures for 2019-20 were shuffled around in the Budget. However, in the end, he just could not fight his gut instinct, so all he did was to front-load the cuts on to the first three years of the next Parliament and hope that nobody would notice.
Unfortunately for the Chancellor, the Office for Budget Responsibility did notice. It said that his plans will mean
“a much sharper squeeze on real spending in 2016-17 and 2017-18 than anything seen over the past five years”
and
“a sharp acceleration in the pace of implied real cuts to day-to-day spending on public services”.
That will create what the OBR calls
“a rollercoaster profile for implied public services spending through the next Parliament”.
We remain with a path of public spending that is based on ideology and political game playing, rather than a Budget for our public services based on what the economy requires and what our country needs.
I ask my hon. Friends to imagine the impact these extreme plans will have, especially on the public services that the Government say are unprotected—the police, bus and rail services, the Army and our defences—and on all those who depend on tax credits to make ends meet. I encourage my hon. Friends to take a moment to look at exactly what those extreme cuts will mean. They are not just statistics in the Red Book; they will have real consequences for real people’s lives.
To take social care as an example, in the past five years, the number of vulnerable people who receive social care support has fallen by 500,000 and the number of home-delivered meals—meals on wheels—has fallen by 59%. Of course, there has also been a rise in the peremptory 15-minute visits. That is just what has happened so far, before the Government tip social care over the precipice of the rollercoaster. Just imagine what the next three years could bring. Care cuts like this are health service cuts. As my hon. Friend the Member for Birmingham, Edgbaston (Ms Stuart) said, our health services will be placed in real jeopardy in that scenario. It says everything one needs to know about this Chancellor that the battle of Agincourt got twice as many references in the Budget speech as the NHS. When I look at the Government’s Budget, it is not so much “Henry V” that comes to mind as “The Comedy of Errors”.
This path of spending—extreme and unnecessary, going way beyond tackling the deficit—is why we will vote against the Budget resolutions tonight. This is a Budget that delivered little, but revealed much. It revealed the Conservatives’ ideological obsession with shrinking public services in preparation for a privatised society. There is no support for those struggling on low incomes and in insecure work, no credible action to tackle tax avoidance and close the tax gap, nothing to reverse their tax cut for millionaires and no help for the NHS. We have a Chancellor who is full of spin but is fooling no one, and a Chief Secretary who is enjoying his final days in office but not in power.
What we need is a Labour Government who will put the interests of the British people first; who will balance the books in a fair way; who will help small businesses with a cut in business rates, rather than simply helping the largest corporations; who will raise living standards by raising the minimum wage and expanding free child care; and who will govern for the many and not for the few, because Britain succeeds when working people succeed. That would be a better plan and a better Budget. That is why I urge my hon. Friends to reject the Budget of this failing Government.
Mr Speaker
With the leave of the House, I will put the remaining motions together.
6. Taxable Benefits (diesel cars)
Resolved,
That—
(1) In section 141(2) of the Income Tax (Earnings and Pensions) Act 2003 (diesel cars: the appropriate percentage), in Step 3, for “35%” substitute “37%”.
(2) The amendment made by paragraph (1) has effect for the tax year 2015-16.
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. Taxable Benefits (vans)
Resolved,
That—
(1) The Income Tax (Earnings and Pensions) Act 2003 is amended as follows.
(2) In section 155 (cash equivalent of the benefit of a van), for subsections (1) and (2) substitute—
“(1) The cash equivalent of the benefit of a van for a tax year is calculated as follows.
(1A) If the restricted private use condition is met in relation to the van for the tax year, the cash equivalent is nil.
(1B) If that condition is not met in relation to the van for the tax year—
(a) if the van cannot in any circumstances emit CO2 by being driven and the tax year is any of the tax years 2015-16 to 2019-20, the cash equivalent is the appropriate percentage of £3,150, and
(b) in any other case, the cash equivalent is £3,150.
(1C) The appropriate percentage for the purposes of subsection (1B)(a) is—
(a) 20% for the tax year 2015-16,
(b) 40% for the tax year 2016-17,
(c) 60% for the tax year 2017-18,
(d) 80% for the tax year 2018-19, and
(e) 90% for the tax year 2019-20.”
(3) In section 156(1) (reduction for periods when van unavailable), for “155(1)” substitute “155”.
(4) In section 158(1) (reduction for payments for private use), for “155(1)” substitute “155”.
(5) In section 160(1)(c) (benefit of fuel treated as earnings), for “section 155(1)(b)” substitute “section 155(1B)(b)”.
(6) In section 170 (orders etc relating to Chapter 6 of Part 3), for subsection (1A) substitute—
“(1A) The Treasury may by order substitute a different amount for the amount for the time
being specified in—
(a) section 155(1A) (cash equivalent where van subject only to restricted private use by
employee),
(b) section 155(1B)(a) (cash equivalent for zero-emission van), and
(c) section 155(1B)(b) (cash equivalent in other cases).”
(7) Article 3 of the Van Benefit and Car and Van Fuel Benefit Order 2014 (S.I. 2014/2896) is revoked.
(8) The amendments made by this Resolution have effect for the tax year 2015-16 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.
10. Income Tax (PAYE)
Resolved,
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.
11. dISTRIBUTIONS
Resolved,
That provision may be made amending Chapter 3 of Part 4 of the Income Tax (Trading and Other Income) Act 2005.
12. Disguised investment management fees
Resolved,
That provision may be made about sums arising to individuals who perform investment management services.
13. Losses from miscellaneous transactions
Resolved,
That provision (including provision having retrospective effect) may be made amending Chapter 7 of Part 4 of the Income Tax Act 2007.
14. Remittance basis of taxation
That provision may be made increasing the remittance basis charge.
15. Loan relationships
Resolved,
That provision (including provision having retrospective effect) may be made amending Part 5 of the Corporation Tax Act 2009.
16. Intangible fixed assets
Resolved,
That provision (including provision having retrospective effect) may be made amending Part 8 of the Corporation Tax Act 2009.
17. Expenditure on research and development
Resolved,
That provision may be made about tax relief for expenditure on research and development.
18. Deductions for carried-forward losses
Resolved,
That provision (including provision having retrospective effect) may be made for and in connection with restricting the deductions that may be made by companies in respect of losses carried forward from earlier accounting periods when calculating their profits for the purposes of corporation tax.
19. Pensions
Resolved,
That provision may be made in connection with the taxation of pensions.
20. Pension Flexibility (beneficiaries’ annuities etc)
Resolved,
That—
(1) Part 4 of the Finance Act 2004 is amended as follows.
(2) Section 167(1) (the pension death benefit rules) is amended as follows.
(3) In pension death benefit rule 3A (payments that may, by way of exception, be made to a nominee) after “other than” insert “a nominees’ annuity in respect of a money purchase arrangement or”.
(4) In pension death benefit rule 3B (payments that may, by way of exception, be made to a successor) after “other than” insert “a successors’ annuity in respect of a money purchase arrangement or”.
(5) Part 2 of Schedule 28 (interpretation of the pension death benefit rules) is amended as follows.
(6) After paragraph 27A insert—
“Nominees’ annuity
27AA(1) For the purposes of this Part an annuity payable to a nominee is a nominees’ annuity if—
(a) either—
(i) it is purchased together with a lifetime annuity payable to the member and the
member becomes entitled to that lifetime annuity on or after 6 April 2015, or
(ii) it is purchased after the member’s death, the member dies on or after 3 December
2014 and the nominee becomes entitled to the annuity on or after 6 April 2015,
(b) it is payable by an insurance company, and
(c) it is payable until the nominee’s death or until the earliest of the nominee’s marrying, entering into a civil partnership or dying.
(2) For the purposes of sub-paragraph (1)(a) a nominees’ annuity is purchased together with a lifetime annuity if the nominees’ annuity is related to the lifetime annuity.”
(7) After paragraph 27F insert—
“Successors’ annuity
27FA (1) For the purposes of this Part an annuity payable to a successor is a successors’ annuity if—
(a) the successor becomes entitled to it on or after 6 April 2015,
(b) it is payable by an insurance company,
(c) it is payable until the successor’s death or until the earliest of the successor’s marrying, entering into a civil partnership or dying,
(d) it is purchased after the death of a dependant, nominee or successor of the member (“the beneficiary”),
(e) it is purchased using undrawn funds, and
(f) the beneficiary dies on or after 3 December 2014.
(2) For the purposes of sub-paragraph (1)(e), sums or assets held for the purposes of an arrangement after the beneficiary’s death are undrawn funds if—
(a) immediately before the beneficiary’s death, they were held for the purposes of the arrangement and, as the case may be, represented (alone or with other sums or assets) the beneficiary’s—
(i) dependant’s flexi-access drawdown fund,
(ii) dependant’s drawdown pension fund,
(iii) nominee’s flexi-access drawdown fund, or
(iv) successor’s flexi-access drawdown fund,
in respect of the arrangement, or
(b) they arise, or (directly or indirectly) derive, from undrawn funds under paragraph (a) or from sums or assets which so arise or derive.”
(8) In section 216(1) (benefit crystallisation events and amounts crystallised) the table is amended as follows.
(9) In the second column of the entry relating to benefit crystallisation event 4, after “any related dependants’ annuity” insert “and any related nominees’ annuity”.
(10) After the entry relating to benefit crystallisation event 5C insert—
“5D. A person becoming entitled, on or after 6 April 2015 but before the end of the relevant two-year period, to a dependants’ annuity or nominees’ annuity in respect of the individual if— (a) the annuity is purchased using (whether or not exclusively) relevant unused uncrystallised funds, and (b) the individual died on or after 3 December 2014 | The aggregate of— (a) the amount of such of the sums, and (b) the market value of such of the assets, applied to purchase the annuity as are relevant unused uncrystallised funds” |
(11) Section 217 (persons liable to lifetime allowance charge) is amended as follows.
(12) In subsection (2A) (cases where dependant or nominee liable) after “event 5C,” insert “or by reason of a person becoming entitled to an annuity as mentioned in the description of benefit crystallisation event 5D,”.
(13) In subsection (4A) (events 5C and 7 are “relevant post-death” events) after “benefit crystallisation event 5C” insert “, 5D”.
(14) In section 219(7A) (events 5C and 7 are “relevant post-death” events) after “benefit crystallisation event 5C” insert “, 5D”.
(15) In Schedule 32 (supplementary provisions about benefit crystallisation events)—
(a) in paragraph 1 (meaning of “the relevant pension schemes”: in certain cases means schemes of which the individual was a member immediately before death) after “5C” insert “or 5D”,
(b) in paragraph 4(1) (further provision about benefit crystallisation event 4) for the words from “if” to “purchased” substitute “if—
(a) the lifetime annuity or a related dependants’ annuity or a related nominees’ annuity is, or
(b) the lifetime annuity and a related dependants’ annuity are, or
(c) the lifetime annuity and a related nominees’ annuity are, or
(d) a related dependants’ annuity and a related nominees’ annuity are, or
(e) the lifetime annuity and a related dependants’ annuity and a related nominees’ annuity are, purchased”,
(c) in paragraph 14B (event 5C: meaning of “relevant two-year period”), and in the italic heading before that paragraph, for “event 5C” substitute “events 5C and 5D”, and
(d) in paragraph 14C(1) (event 5C: meaning of “relevant unused uncrystallised funds”), and in the italic heading before paragraph 14C, for “event 5C” substitute “events 5C and 5D”.
(16) In section 172(6A)(b) (“benefit” in section 172 includes rights to payments under certain annuities) after “lifetime annuity or dependants’ annuity” insert “, or nominees’ annuity or successors’ annuity,”.
(17) Section 172A (surrenders of benefits and rights) is amended as follows.
(18) In subsection (1)(aa) (surrender of rights to payments under certain annuities triggers operation of subsection (2)) after “lifetime annuity or dependants’ annuity” insert “, or nominees’ annuity or successors’ annuity,”.
(19) In subsection (9A)(b) (references to benefits include references to rights to payments under certain annuities) after “lifetime annuity or dependants’ annuity” insert “, or nominees’ annuity or successors’ annuity,”.
(20) Section 172B (increase of rights of connected person on death) is amended as follows.
(21) In subsection (2)(aa) (relevant member includes person who has rights to payments under certain annuities) after “lifetime annuity or dependants’ annuity” insert “, or nominees’ annuity or successors’ annuity,”.
(22) In subsection (7A) (section does not apply to certain increases in rights) after “dependants’ annuity”, in both places, insert “, nominees’ annuity, successors’ annuity”.
(23) In subsection (7B)(b) (“benefit” in section 172B includes rights to payments under certain annuities) after “lifetime annuity or dependants’ annuity” insert “, or nominees’ annuity or successors’ annuity,”.
(24) In section 273B(1) (power of trustees or managers to make certain payments) after paragraph (f) insert—
“(fa) paid to purchase a nominees’ annuity,
(fb) paid to purchase a successors’ annuity,”.
(25) Schedule 28 (interpretation of the pension rules and the pension death benefit rules) is amended as follows.
(26) In paragraph 3(2B)(a) (power to make regulations about cases where lifetime annuity ceases to be payable by insurance company) after “dependants’ annuity” insert “, nominees’ annuity”.
(27) In paragraph 6(1B)(a) (power to make regulations about cases where short-term annuity ceases to be payable by insurance company) after “dependants’ annuity” insert “, nominees’ annuity”.
(28) In paragraph 27E(3) (meaning of “unused drawdown funds”)—
(a) in paragraph (b), for “derive.” substitute “derive,”, and
(b) after paragraph (b) (but not as part of it) insert—
“and since the member’s death they have not been designated as available for the payment of dependants’ drawdown pension, not been designated as available for the payment of nominees’ drawdown pension, not been applied towards the provision of a dependants’ annuity, not been applied towards the provision of a nominees’ annuity and not been applied towards the provision of a dependants’ scheme pension.”
(29) In paragraph 27E(4)(b) and (5) (meaning of “unused uncrystallised funds”) after “not been applied towards the provision of a dependants’ annuity” insert “, not been applied towards the provision of a nominees’ annuity”.
(30) In paragraph 27K(3) (meaning of “unused drawdown funds of the beneficiary’s”)—
(a) in paragraph (b) for “derive.” substitute “derive,”, and
(b) after paragraph (b) (but not as part of it) insert—
“and since the beneficiary’s death they have not been designated as available for the payment of successors’ drawdown pension and not been applied towards the provision of a successors’ annuity.”
(31) Paragraph 3 of Schedule 29 (interpretation of the lump sum rule: meaning of “the applicable amount”) is amended as follows.
(32) In sub-paragraph (4) (amount applied to purchase certain annuities) after “any related dependants’ annuity” insert “and any related nominees’ annuity”.
(33) After sub-paragraph (4A) (when a dependants’ annuity is related to a lifetime annuity) insert—
“(4B) For the purposes of this Part a nominees’ annuity is related to a lifetime annuity payable to a member of a registered pension scheme—
(a) if they are purchased either in the form of a joint life annuity or separately in circumstances in which the day on which the one is purchased is no earlier than seven days before, and no later than seven days after, the day on which the other is purchased, and
(b) the nominees’ annuity will be payable to a nominee of the member.”
(34) In sub-paragraph (5) (deductions in calculating applicable amount) after “any related dependants’ annuity”, in both places, insert “or any related nominees’ annuity”.
(35) In paragraph 15(2)(a) of Schedule 29 (uncrystallised funds lump sum death benefit is sum paid in respect of funds not spent on certain annuities and other pensions) after “lifetime annuity,” insert “a nominees’ annuity,”.
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.
21. Enterprise investment scheme
Resolved,
That provision may be made about the enterprise investment scheme.
22. Venture Capital Trusts
Resolved,
That provision may be made about venture capital trusts.
23. Investment reliefs (social investments)
Resolved,
That provision (including provision having retrospective effect) may be made for amending the categories of excluded activities for the purposes of tax relief for social investments.
24. Chargeable Gains
Resolved,
That provision (including provision having retrospective effect) may be made amending, or making amendments connected with, the Taxation of Chargeable Gains Act 1992.
25. Capital Allowances
Resolved,
That provision (including provision having retrospective effect) may be made about capital allowances.
26. Allowances relating to oil activities
Resolved,
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.
27. Alcoholic liquor duties (rates)
Resolved,
That—
(1) The Alcoholic Liquor Duties Act 1979 is amended as follows.
(2) In section 5 (rate of duty on spirits), for “£28.22” substitute “£27.66”.
(3) In section 36(1AA) (rates of general beer duty)—
(a) in paragraph (za) (rate of duty on lower strength beer), for “£8.62” substitute “£8.10”, and
(b) in paragraph (a) (standard rate of duty on beer), for “£18.74” substitute “£18.37”.
(4) In section 37(4) (rate of high strength beer duty), for “£5.29” substitute “£5.48”.
(5) In section 62(1A) (rates of duty on cider)—
(a) in paragraph (b) (cider of strength exceeding 7.5% which is not sparkling cider) for “£59.52” substitute “£58.75”, and
(b) in paragraph (c) (other cider), for “£39.66” substitute “£38.87”.
(6) For Part 2 of the table in Schedule 1 substitute—
“PART 2
WINE OR MADE-WINE OF A STRENGHT EXCEEDING 22 PER CENT
Description of wine or made-wine | Rates of duty per litre of alcohol in wine or made-wine £ |
Wine or made-wine of a strength exceeding 22 per cent | 27.66”. |
(7) The amendments made by this Resolution come into force on 23 March 2015.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
28. Tobacco products duty (rates)
Resolved,
That—
(1) For the table in Schedule 1 to the Tobacco Products Duty Act 1979 substitute—
“TABLE
1. Cigarettes | An amount equal to 16.5 per cent of the retail price plus £189.49 per thousand cigarettes |
2. Cigars | £236.37 per kilogram |
3. Hand-rolling tobacco | £185.74 per kilogram |
4. Other smoking tobacco and chewing tobacco | £103.91 per kilogram”. |
(2) The amendments made by this Resolution come into force at 6 pm on 18 March 2015.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
30. Vehicle excise duty (rates for light passenger vehicles etc)
Resolved,
That—
(1) Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty) is amended as follows.
(2) In paragraph 1B (graduated rates of duty for light passenger vehicles)—
(a) for the tables substitute—
“TABLE 1
RATES PAYABLE ON FIRST VEHICLE LICENCE FOR VEHICLE
(1) | (2) | (3) | (4) |
|---|---|---|---|
Exceeding | Not Exceeding | Reduced Rate | Standard Rate |
g/km | g/km | £ | £ |
130 | 140 | 120 | 130 |
140 | 150 | 135 | 145 |
150 | 165 | 170 | 180 |
165 | 175 | 285 | 295 |
175 | 185 | 340 | 350 |
185 | 200 | 480 | 490 |
200 | 225 | 630 | 640 |
225 | 255 | 860 | 870 |
255 | — | 1090 | 1100 |
TABLE 2
RATES PAYABLE ON ANY OTHER VEHICLE LICENCE FOR VEHICLE
(1) | (2) | (3) | (4) |
|---|---|---|---|
Exceeding | Not Exceeding | Reduced Rate | Standard Rate |
g/km | g/km | £ | £ |
100 | 110 | 10 | 20 |
110 | 120 | 20 | 30 |
120 | 130 | 100 | 110 |
130 | 140 | 120 | 130 |
(1) | (2) | (3) | (4) |
|---|---|---|---|
Exceeding | Not Exceeding | Reduced Rate | Standard Rate |
g/km | g/km | £ | £ |
140 | 150 | 135 | 145 |
150 | 165 | 170 | 180 |
165 | 175 | 195 | 205 |
175 | 185 | 215 | 225 |
185 | 200 | 255 | 265 |
200 | 225 | 280 | 290 |
225 | 255 | 480 | 490 |
255 | — | 495 | 505”; |
(b) in the sentence immediately following the tables, for paragraphs (a) and (b) substitute—
“(a) in column (3), in the last two rows, “280” were substituted for “480” and “495”, and
(b) in column (4), in the last two rows, “290” were substituted for “490” and “505”.”
(3) In paragraph 2(1) (VED rates for motorcycles)—
(a) in paragraph (c), for “£58” substitute “£59”, and
(b) in paragraph (d), for “£80” substitute “£81”.
(4) The amendments made by this Resolution have effect in relation to licences taken out on or after 1 April 2015.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
31. Climate Change Levy (Rates)
Resolved,
That provision may be made about the rates of climate change levy.
32. Climate Change Levy (combined heat and power stations)
Resolved,
That—
(1) Schedule 6 to the Finance Act 2000 (climate change levy) is amended as follows.
(2) In paragraph 24B (deemed taxable supply: commodities to be used in combined heat and power station)—
(a) in sub-paragraph (2), at the end insert “to which sub-paragraph (2A) does not apply”,
(b) after that sub-paragraph insert—
“(2A) This sub-paragraph applies to electricity so far as—
(a) it is included in the CHP Qualifying Power Output of the combined heat and power station’s CHPQA scheme, and
(b) either condition A or B is met.
(2B) Condition A is that the producer of the electricity makes no supply of it to another person, but causes it to be consumed in the United Kingdom.
(2C) Condition B is that the electricity is supplied (within the meaning of Part 1 of the Electricity Act 1989 (see section 64 of that Act)) by a person who is an exempt unlicensed electricity supplier.”,
(c) in sub-paragraph (3), after “electricity” insert “to which sub-paragraph (2A) does not apply”, and
(d) for sub-paragraph (7) substitute—
“(7) For the purposes of this paragraph—
“CHP Qualifying Power Output” has the meaning given by section 4 of the Combined Heat and Power Quality Assurance Standard, Issue 5 (November 2013), prepared by the Department of Energy and Climate Change or, if that issue of the Standard has been replaced by another issue, by the current issue of the Standard (taking account, in either case, of any amendment which has been made to the issue);
“CHPQA scheme”, in relation to a combined heat and power station, means the scheme in relation to which the station’s CHPQA certificate was issued;
“CHPQA site”, in relation to a fully exempt combined heat and power station or a partly exempt combined heat and power station, means the site of the CHPQA scheme.”
(3) In paragraph 24C (initial determination under paragraph 24B(3) superseded by later determination), in sub-paragraph (1)—
(a) in paragraph (a), at the end insert “to which paragraph 24B(2A) does not apply”, and
(b) in paragraph (c)(i), after “electricity” insert “to which paragraph 24B(2A) does not apply”.
(4) In paragraph 62 (tax credits), in sub-paragraph (1)(bb), after “electricity”, in both places, insert “to which paragraph 24B(2A) does not apply”.
(5) The amendments made by this Resolution have effect in relation to carbon price support rate commodities brought onto, or arriving at, a CHPQA site of a combined heat and power station in Great Britain on or after 1 April 2015.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
33. Landfill Tax (Rates)
Resolved,
That provision may be made about the rates of landfill tax.
34. Landfill Tax (Materials consisting of fines)
Resolved,
That—
(1) Part 3 of the Finance Act 1996 (landfill tax) is amended as follows.
(2) Section 42 (amount of tax charged on a taxable disposal) is amended as follows.
(3) In subsection (2), after “qualifying material” insert “or qualifying fines”.
(4) After subsection (3) insert—
“(3A) Qualifying fines are a mixture of—
(a) fines that consist of such qualifying material as is prescribed by order, and
(b) fines that consist of material that is not qualifying material, that satisfies all the requirements prescribed in an order.
(3B) An order under subsection (3A) relating to the mixture of fines may require, in particular—
(a) that fines that consist of material that is not qualifying material do not exceed a prescribed proportion;
(b) that the mixture of fines does not include prescribed materials or prescribed descriptions of materials;
(c) that the mixture of fines is such that, if subjected to a prescribed test, it would give a prescribed result;
(d) that the mixture of fines originates, or does not originate, in a prescribed way.”
(5) In subsection (4)(a), after “listed” insert “or what fines are to be qualifying fines”.
(6) In subsection (6), after “listed,” insert “or what fines are to be qualifying fines,”.
(7) In section 63 (qualifying material: special provisions), after subsection (4) insert—
“(4A) Subsections (2) to (4) do not apply where the material disposed of consists of qualifying fines.”
(8) After section 63 insert—
“63A Qualifying fines: special provisions
(1) This section applies for the purposes of section 42.
(2) An order may provide that fines must not be treated as qualifying fines unless prescribed conditions are met.
(3) A condition may relate to any matter the Treasury think fit.
(4) The conditions may include conditions making provision about—
(a) the production of a document which includes a statement of the nature of the fines;
(b) carrying out a specified test on fines proposed to be disposed of as qualifying fines;
(c) the frequency with which tests are to be carried out on any fines proposed to be disposed of as qualifying fines;
(d) the frequency with which tests are to be carried out on any fines that come from a particular source and are proposed to be disposed of as qualifying fines;
(e) the steps to be taken by operators of landfill sites in relation to persons sending fines to be disposed of as qualifying fines.
(5) The conditions may enable provision to be made by notices issued by the Commissioners in accordance with such provision as is made in the conditions.
(6) A notice issued as described in subsection (5) may be revoked by a notice issued in the same way.
(7) If an order includes provision falling within subsection (4)(b), the Commissioners may direct a person to carry out such a test in relation to any fines proposed to be disposed of as qualifying fines.
(8) In this section “specified” means specified in—
(a) a condition prescribed under subsection (2), or
(b) a notice issued as described in subsection (5).”
(9) In section 70(1) (interpretation), at the appropriate place insert—
““fines” means particles produced by a waste treatment process that involves an element of mechanical treatment;”.
(10) In section 71 (orders and regulations), subsection (7) is amended as follows.
(11) After paragraph (a) insert—
“(aa) an order under section 42(3A) providing for fines which would otherwise be qualifying fines not to be qualifying fines;”.
(12) After paragraph (c) insert—
“(cza) an order under section 63A(2) other than one which provides only that an earlier order under section 63A(2) is not to apply to fines;”.
(13) Schedule 5 (provision about information etc) is amended as follows.
(14) In the heading to Part 1, after “Information” insert “and samples”.
(15) After paragraph 2A insert—
“Information qualifying fines
2B (1) Regulations may make provision about giving the Commissioners information about fines proposed to be disposed of, or disposed of, as qualifying fines.
(2) Regulations under this paragraph may require a person to notify the Commissioners if the result of a test carried out on fines indicates that the fines are not qualifying fines.
Samples: qualifying fines
2C (1) Regulations may require persons—
(a) where a sample is taken from a quantity of fines in order to carry out a test on the fines, to retain a prescribed amount of that sample;
(b) to preserve fines retained under paragraph (a) for such period not exceeding three months as may be specified in the regulations.
(2) A duty under regulations under this paragraph to preserve fines may be discharged by taking such steps to preserve them as the Commissioners may specify in writing.”
(16) In paragraph 10 (power to take samples), after sub-paragraph (1) insert—
“(1A) An authorised person, if it appears to the person necessary for the protection of the revenue against mistake or fraud, may at any time take, from material which the person has reasonable cause to believe is an amount of fines retained under paragraph 2C(1)(a), such samples as the person may require with a view to determining how the fines tested ought to be or to have been treated for the purposes of tax.”
(17) In paragraph 12 (information)—
(a) in sub-paragraph (1)(b), after “2” insert “or 2A”;
(b) in sub-paragraph (3), for the words from “who” to “liable” substitute “who—
(a) fails to preserve records in compliance with any provision of regulations made under paragraph 2 (read with that paragraph and any direction given under the regulations), or
(b) fails to preserve records in compliance with any provision of regulations made under paragraph 2A (read with that paragraph and any direction given under the regulations),
is liable”.
(18) The amendments made by this Resolution have effect in relation to disposals that are—
(a) made in England and Wales or Northern Ireland, and
(b) made (or treated as made) on or after 1 April 2015.
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.
35. Value added tax (refunds to certain charities)
Resolved,
That provision may be made for refunding value added tax to—
(a) charities that provide palliative care to people with a terminal illness,
(b) charities that provide air ambulance services,
(c) charities whose activities relate to searching for, and rescuing, people who are, or may be, at risk of death or serious injury, and
(d) charities whose activities relate to the transportation of items intended for use for medical purposes.
36. Value added tax (refunds to strategic highways companies)
Resolved,
That provision may be made for refunding value added tax to strategic highways companies.
37. Annual tax on enveloped dwellings (annual chargeable amounts)
Resolved,
That—
(1) In section 99 of the Finance Act 2013 (amount of tax chargeable), in the table in subsection (4), for the last four entries substitute—
“£23,350 | More than £2 million but not more than £5 million. |
£54,450 | More than £5 million but not more than £10 million. |
£109,050 | More than £10 million but not more than £20 million. |
£218,200 | More than £20 million.” |
(2) The amendment made by this Resolution has effect for the chargeable period beginning on 1 April 2015 and, subject to section 101 of the Finance Act 2013, for subsequent chargeable periods.
(3) Section 101(1) of the Finance Act 2013 does not apply in relation to the chargeable period beginning on 1 April 2015.
(4) Accordingly, the Treasury is not required to make an order under section 101(5) of the Finance Act 2013 in respect of that period.
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.
38. Annual tax on enveloped dwellings (5-yearly valuations)
Resolved,
That provision may be made amending section 102 of the Finance Act 2013.
39. Annual tax on enveloped dwellings (interests held by connected persons)
Resolved,
That—
(1) Section 110 of the Finance Act 2013 (interests held by connected persons) is amended as follows.
(2) In subsection (1), after “If on any day” insert “(“the relevant day”)”.
(3) In subsection (2)—
(a) omit “on the day in question”;
(b) after “P’s single dwelling interest” insert “on the relevant day”;
(c) for “£500,000” substitute “£250,000”.
(4) After subsection (2) insert—
“(2A) Subsection (2B) applies in any case where—
(a) C would (without subsection (2B)) be treated, as a result of subsection (1) (read with section 109), as entitled to a single-dwelling interest with a taxable value (on the relevant day) of more than £2 million, but
(b) C would not be so treated if the value specified in subsection (2) were £500,000 (instead of £250,000).
(2B) Subsection (2) has effect as if the value specified in it were £500,000 (instead of £250,000).”
(5) The amendments made by this Resolution have effect in relation to chargeable periods beginning on or after 1 April 2015.
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.
40. Bank Levy (Rates)
Resolved,
That provision may be made about the rates of the bank levy.
41. Diverted Profits Tax
Resolved,
That provision may be made for and in connection with the imposition of a new tax on profits arising to a company.
42. Accelerated Payments
Resolved,
That provision may be made amending Part 4 of the Finance Act 2014.
43. Relief from tax (incidental and consequential charges)
Resolved,
That it is expedient to authorise any incidental or consequential charges to any duty or tax (including charges having retrospective effect) that may arise from provisions designed in general to afford relief from taxation.
Mr Speaker
With the leave of the House I will put the four procedure motions together. The House will be intimately conscious that I am referring to the motions on future taxation, television tax relief, wholesalers of alcohol and country-by-country reporting referred to on page 21 of the Budget resolutions.
Procedure (future taxation)
Resolved,
That, notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills, any Finance Bill of the present Session may contain the following provisions taking effect in a future year—
(a) provision about the basic rate limit for the purposes of income tax,
(b) provision about personal allowances for the purposes of income tax,
(c) provision for corporation tax to be charged for the financial year 2016,
(d) provision about the tax treatment of certain employment-related expenses and benefits,
(e) provision amending the description of vehicles which are exempt vehicles for the purposes of the Vehicle Excise and Registration Act 1994,
(f) provision about the rates of climate change levy,
(g) provision about the rates of landfill tax, and
(h) provision about the taxable value of single-dwelling interests for the purposes of the annual tax on enveloped dwellings.
Procedure (television tax relief)
Resolved,
That, notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills, any Finance Bill of the present Session may contain provision for tax credits to be paid to television production companies in respect of expenditure or losses on television production activities in connection with further descriptions of programmes.
procedure (wholesalers of alcohol)
Resolved,
That, notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills, any Finance Bill of the present Session may make provision for the approval and registration of wholesalers of alcohol.
procedure (country-by-country reporting)
Resolved,
That, notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills, any Finance Bill of the present Session may contain provision enabling the implementation of the guidance on country-by-country reporting contained in the OECD’s Guidance on Transfer Pricing Documentation and Country-by-Country Reporting, published in 2014 (or any other document replacing that Guidance).