Skip to main content

8 Vehicles Excise Duty (Exceptional Loads, Etc)

Volume 130: debated on Monday 21 March 1988

The text on this page has been created from Hansard archive content, it may contain typographical errors.

Resolved,

That the Vehicles (Excise) Act 1971 ("the 1971 Act") and the Vehicles (Excise) Act (Northern Ireland) 1972 ("the 1972 Act") shall have effect, as from 1st June 1988, with the amendments set out below.
But this Resolution shall not authorise the making of amendments which would result in different provisions being in force in different parts of Great Britain.
And it is hereby 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.

(1) In section 1(2) of each Act (charge of duty), for the words "the first five Schedules" there shall be substituted the words "Schedules 1 to 5".
(2) In Part I of Schedule 3 to each Act (annual rates of duty on tractors etc.), in paragraph 6 (definition of "haulage vehicle"), after the words "other than one" there shall be inserted the words "to which Schedule 4A to this Act applies or which is".
(3) In Part I of Schedule 4 to each Act (annual rates of duty on goods vehicles), in paragraph 15—
  • (a) in sub-paragraph (1), in the definition of "goods vehicle", after the word "means" there shall be inserted the words "subject to sub-paragraph (1A) below"; and
  • (b) after that sub-paragraph there shall be inserted—
  • "(1A) In this Schedule 'goods vehicle' does not include a vehicle to which Schedule 4A to this Act applies."
    (4) After Schedule 4 to the 1971 Act there shall be inserted—

    "Schedule 4A Annual Rates Of Duty On Vehicles Used For Carrying Or Drawing Exceptional Loads

    1. This Schedule applies to a vehicle—
  • (a)which is a heavy motor car used for the carriage of exceptional loads; or
  • (b) which is a heavy locomotive, light locomotive or motor tractor used to draw trailers carrying such loads,
  • and which, when so used, is authorised for use on roads by virtue of an order under section 42 of the Road Traffic Act 1972.

    2. The annual rate of duty applicable to a vehicle to which this Schedule applies shall be £1,600.

    3. Where a vehicle—
  • (a) to which this Schedule applies; and
  • (b) which would, but for paragraphs 5 and 15(1A) of Schedule 4 to this Act, be a goods vehicle of a description to which a higher rate of duty is applicable under this Act,
  • is at any time used on roads otherwise than as mentioned in paragraph 1 above, section 18 of this Act shall apply as if that vehicle were then being used in a manner or for a purpose which brings it within that description of vehicle.

    4. In this Schedule—
    'exceptional load' means a load which—
  • (a) by reason of its dimensions, cannot be carried by a heavy motor car or trailer, or a combination of a heavy motor car and trailer, which (in either case) complies in all respects with requirements of regulations under section 40 of the Road Traffic Act 1972; or
  • (b) by reason of its weight, cannot be carried by a heavy motor car or trailer, or a combination of a heavy motor car and trailer, which (in either case) has a total laden weight of not more than the specified amount and complies in all respects with such requirements;
  • 'specified amount' means—
  • (a) in relation to any time before 1st October 1989, 32,520 kilograms;
  • (b) in relation to any time on or after that date, 38,000 kilograms;
  • and other expressions which are also used in the Road Traffic Act 1972 have the same meanings as in that Act."

    (5) The provisions set out in paragraph (4) above shall also be inserted after Schedule 4 to the 1972 Act, but modified for that purpose by the substitution for any reference to the Road Traffic Act 1972, or to section 40 or 42 of that Act, of a reference to the Road Traffic (Northern Ireland) Order 1981, or to Article 28 or 29(3) of that Order.
    (6) Section 2(1)(c) of the 1971 Act and section 2(1)(c) and (d) of the 1972 Act (seven day licences) shall cease to have effect.—[Mr. Lawson.]

    9 Vehicles Excise Duty (Recovery Vehicles)

    Resolved,

    That provision may be made amending paragraph 8 of Part 1 of Schedule 3 to each of the Vehicles (Excise) Act 1971 and the Vehicles (Excise) Act (Northern Ireland) 1972.—[Mr. Lawson.]

    10 Value Added Tax (Registration)

    Resolved,

    That provision may be made as to registration and the cancellation of registrations under the Value Added Tax Act 1983.—[Mr. Lawson.]

    11 Income Tax (Charge And Rates For 1988–89)

    Question put,

    That—
  • (1) Income tax shall be charged for the year 1988–89—
  • (a) at the basic rate of 25 per cent, and
  • (b) in respect of so much of an individual's total income as exceeds £19,300, at the rate of 40 per cent.
  • (2) The additional rate income tax for the year 1988–89 shall be 10 per cent.
  • (3) Section 1(4) of the Income and Corporation Taxes Act 1988 (indexation) shall not apply for the year 1988–89.
  • (4) This Resolution shall not require any change to be made in the amounts deductible or repayable under section 203 of the Act (pay as you earn) before 15th June 1988.
  • And it is hereby 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.—[Mr. Lawson.]

    The House divided: Ayes 335, Noes 223.

    Division No. 218]

    [10.15 pm

    AYES

    Adley, RobertBrooke, Rt Hon Peter
    Aitken, JonathanBrown, Michael (Grigg & Cl't's)
    Alexander, RichardBrowne, John (Winchester)
    Alison, Rt Hon MichaelBruce, Ian (Dorset South)
    Allason, RupertBuchanan-Smith, Rt Hon Alick
    Amess, DavidBuck, Sir Antony
    Amos, AlanBudgen, Nicholas
    Arbuthnot, JamesBurns, Simon
    Arnold, Jacques (Gravesham)Burt, Alistair
    Arnold, Tom (Hazel Grove)Butcher, John
    Ashby, DavidButler, Chris
    Aspinwall, JackButterfill, John
    Atkins, RobertCarlisle, John, (Luton N)
    Baker, Rt Hon K. (Mole Valley)Carlisle, Kenneth (Lincoln)
    Baker, Nicholas (Dorset N)Carrington, Matthew
    Baldry, TonyCarttiss, Michael
    Banks, Robert (Harrogate)Cash, William
    Batiste, SpencerChannon, Rt Hon Paul
    Beaumont-Dark, AnthonyChapman, Sydney
    Bellingham, HenryChope, Christopher
    Bendall, VivianChurchill, Mr
    Bennett, Nicholas (Pembroke)Clark, Hon Alan (Plym'th S'n)
    Benyon, W.Clark, Dr Michael (Rochford)
    Bevan, David GilroyClark, Sir W. (Croydon S)
    Biggs-Davison, Sir JohnClarke, Rt Hon K. (Rushcliffe)
    Blackburn, Dr John G.Colvin, Michael
    Blaker, Rt Hon Sir PeterConway, Derek
    Bonsor, Sir NicholasCoombs, Anthony (Wyre F'rest)
    Bottomley, PeterCoombs, Simon (Swindon)
    Bottomley, Mrs VirginiaCope, John
    Bowden, A (Brighton K'pto'n)Cormack, Patrick
    Bowden, Gerald (Dulwich)Cran, James
    Bowis, JohnCritchley, Julian
    Boyson, Rt Hon Dr Sir RhodesCurrie, Mrs Edwina
    Braine, Rt Hon Sir BernardDavies, Q. (Stamf'd & Spald'g)
    Brandon-Bravo, MartinDavis, David (Boothferry)
    Brazier, JulianDay, Stephen
    Bright, GrahamDevlin, Tim
    Brittan, Rt Hon LeonDickens, Geoffrey

    Dorrell, StephenJanman, Tim
    Douglas-Hamilton, Lord JamesJessel, Toby
    Dover, DenJohnson Smith, Sir Geoffrey
    Dunn, BobJones, Gwilym (Cardiff N)
    Durant, TonyJones, Robert B (Herts W)
    Eggar, TimJopling, Rt Hon Michael
    Emery, Sir PeterKellett-Bowman, Dame Elaine
    Evans, David (Welwyn Hatf'd)King, Roger (B'ham N'thfield)
    Evennett, DavidKirkhope, Timothy
    Fairbairn, NicholasKnapman, Roger
    Fallon, MichaelKnight, Greg (Derby North)
    Farr, Sir JohnKnight, Dame Jill (Edgbaston)
    Favell, TonyKnowles, Michael
    Fenner, Dame PeggyKnox, David
    Field, Barry (Isle of Wight)Lamont, Rt Hon Norman
    Fookes, Miss JanetLang, Ian
    Forman, NigelLatham, Michael
    Forsyth, Michael (Stirling)Lawrence, Ivan
    Forth, EricLawson, Rt Hon Nigel
    Fowler, Rt Hon NormanLee, John (Pendle)
    Franks, CecilLeigh, Edward (Gainsbor'gh)
    Freeman, RogerLennox-Boyd, Hon Mark
    French, DouglasLester, Jim (Broxtowe)
    Fry, PeterLightbown, David
    Gale, RogerLilley, Peter
    Gardiner, GeorgeLloyd, Sir Ian (Havant)
    Gill, ChristopherLloyd, Peter (Fareham)
    Gilmour, Rt Hon Sir IanLord, Michael
    Glyn, Dr AlanLuce, Rt Hon Richard
    Goodhart, Sir PhilipLyell, Sir Nicholas
    Goodlad, AlastairMcCrindle, Robert
    Goodson-Wickes, Dr CharlesMacfarlane, Sir Neil
    Gorman, Mrs TeresaMacGregor, Rt Hon John
    Gorst, JohnMacKay, Andrew (E Berkshire)
    Gow, IanMaclean, David
    Gower, Sir RaymondMcLoughlin, Patrick
    Grant, Sir Anthony (CambsSW)McNair-Wilson, M. (Newbury)
    Greenway, Harry (Ealing N)McNair-Wilson, P. (New Forest)
    Greenway, John (Ryedale)Madel, David
    Gregory, ConalMajor, Rt Hon John
    Griffiths, Sir Eldon (Bury St E')Malins, Humfrey
    Griffiths, Peter (Portsmouth N)Mans, Keith
    Grist, IanMaples, John
    Ground, PatrickMarland, Paul
    Grylls, MichaelMarshall, John (Hendon S)
    Hamilton, Hon Archie (Epsom)Marshall, Michael (Arundel)
    Hamilton, Neil (Tatton)Martin, David (Portsmouth S)
    Hampson, Dr KeithMates, Michael
    Hanley, JeremyMaude, Hon Francis
    Hannam, JohnMaxwell-Hyslop, Robin
    Hargreaves, A. (B'ham H'll Gr')Mayhew, Rt Hon Sir Patrick
    Hargreaves, Ken (Hyndburn)Mellor, David
    Harris, DavidMeyer, Sir Anthony
    Hawkins, ChristopherMiller, Hal
    Hayes, JerryMills, Iain
    Hayhoe, Rt Hon Sir BarneyMiscampbell, Norman
    Hayward, RobertMitchell, Andrew (Gedling)
    Heath, Rt Hon EdwardMitchell, David (Hants NW)
    Heathcoat-Amory, DavidMoate, Roger
    Heddle, JohnMonro, Sir Hector
    Heseltine, Rt Hon MichaelMontgomery, Sir Fergus
    Hicks, Mrs Maureen (Wolv' NE)Moore, Rt Hon John
    Higgins, Rt Hon Terence L.Morris, M (N'hampton S)
    Hind, KennethMorrison, Hon Sir Charles
    Hogg, Hon Douglas (Gr'th'm)Moss, Malcolm
    Holt, RichardMoynihan, Hon Colin
    Hordern, Sir PeterNeale, Gerrard
    Howard, MichaelNeedham, Richard
    Howarth, Alan (Strat'd-on-A)Nelson, Anthony
    Howarth, G. (Cannock & B'wd)Neubert, Michael
    Howell, Ralph (North Norfolk)Newton, Rt Hon Tony
    Hughes, Robert G. (Harrow W)Nicholson, David (Taunton)
    Hunt, David (Wirral W)Nicholson, Emma (Devon West)
    Hunt, John (Ravensbourne)Onslow, Rt Hon Cranley
    Hunter, AndrewOppenheim, Phillip
    Hurd, Rt Hon DouglasPage, Richard
    Irvine, MichaelPaice, James
    Irving, CharlesParkinson, Rt Hon Cecil
    Jack, MichaelPatnick, Irvine
    Jackson, RobertPatten, John (Oxford W)

    Pattie, Rt Hon Sir GeoffreyStewart, Andy (Sherwood)
    Pawsey, JamesStewart, Ian (Hertfordshire N)
    Peacock, Mrs ElizabethStokes, John
    Porter, Barry (Wirral S)Stradling Thomas, Sir John
    Porter, David (Waveney)Sumberg, David
    Portillo, MichaelTapsell, Sir Peter
    Powell, William (Corby)Taylor, Ian (Esher)
    Price, Sir DavidTaylor, John M (Solihull)
    Raffan, KeithTebbit, Rt Hon Norman
    Raison, Rt Hon TimothyTemple-Morris, Peter
    Rathbone, TimThatcher, Rt Hon Margaret
    Redwood, JohnThompson, D. (Calder Valley)
    Renton, TimThompson, Patrick (Norwich N)
    Rhodes James, RobertThorne, Neil
    Rhys Williams, Sir BrandonThornton, Malcolm
    Riddick, GrahamThurnham, Peter
    Ridley, Rt Hon NicholasTownend, John (Bridlington)
    Ridsdale, Sir JulianTownsend, Cyril D. (B'heath)
    Roberts, Wyn (Conwy)Tracey, Richard
    Roe, Mrs MarionTredinnick, David
    Rossi, Sir HughTrippier, David
    Rost, PeterTrotter, Neville
    Rowe, AndrewTwinn, Dr Ian
    Rumbold, Mrs AngelaVaughan, Sir Gerard
    Ryder, RichardWaddington, Rt Hon David
    Sackville, Hon TomWakeham, Rt Hon John
    Sainsbury, Hon TimWaldegrave, Hon William
    Sayeed, JonathanWalden, George
    Scott, NicholasWalker, Bill (T'side North)
    Shaw, David (Dover)Walker, Rt Hon P. (W'cester)
    Shaw, Sir Giles (Pudsey)Waller, Gary
    Shaw, Sir Michael (Scarb')Walters, Dennis
    Shelton, William (Streatham)Ward, John
    Shephard, Mrs G. (Norfolk SW)Wardle, Charles (Bexhill)
    Shepherd, Colin (Hereford)Warren, Kenneth
    Shepherd, Richard (Aldridge)Watts, John
    Shersby, MichaelWheeler, John
    Sims, RogerWhitney, Ray
    Skeet, Sir TrevorWiddecombe, Ann
    Smith, Tim (Beaconsfield)Wilkinson, John
    Soames, Hon NicholasWilshire, David
    Speed, KeithWolfson, Mark
    Speller, TonyWood, Timothy
    Spicer, Sir Jim (Dorset W)Woodcock, Mike
    Spicer, Michael (S Worcs)Yeo, Tim
    Squire, RobinYoung, Sir George (Acton)
    Stanbrook, Ivor
    Steen, AnthonyTellers for the Ayes:
    Stern, MichaelMr. Robert Boscawen and
    Stevens, LewisMr. Tristan Garel-Jones.
    Stewart, Allan (Eastwood)

    NOES

    Abbott, Ms DianeBruce, Malcolm (Gordon)
    Adams, Allen (Paisley N)Buchan, Norman
    Allen, GrahamCaborn, Richard
    Alton, DavidCallaghan, Jim
    Archer, Rt Hon PeterCampbell, Menzies (Fife NE)
    Armstrong, HilaryCampbell, Ron (Blyth Valley)
    Ashdown, PaddyCampbell-Savours, D. N.
    Ashley, Rt Hon JackCanavan, Dennis
    Ashton, JoeCarlile, Alex (Mont'g)
    Banks, Tony (Newham NW)Cartwright, John
    Barnes, Harry (Derbyshire NE)Clark, Dr David (S Shields)
    Barnes, Mrs Rosie (Greenwich)Clarke, Tom (Monklands W)
    Barron, KevinClay, Bob
    Battle, JohnClelland, David
    Beckett, MargaretClwyd, Mrs Ann
    Beith, A. J.Cohen, Harry
    Bell, StuartColeman, Donald
    Benn, Rt Hon TonyCook, Frank (Stockton N)
    Bennett, A. F. (D'nt'n & R'dish)Cook, Robin (Livingston)
    Bermingham, GeraldCorbyn, Jeremy
    Bidwell, SydneyCousins, Jim
    Blair, TonyCox, Tom
    Boyes, RolandCrowther, Stan
    Bradley, KeithCryer, Bob
    Bray, Dr JeremyCummings, John
    Brown, Gordon (D'mline E)Cunliffe, Lawrence
    Brown, Nicholas (Newcastle E)Cunningham, Dr John

    Dalyell, TamMcAvoy, Thomas
    Darling, AlistairMcCartney, Ian
    Davies, Rt Hon Denzil (Llanelli)Macdonald, Calum A.
    Davies, Ron (Caerphilly)McFall, John
    Davis, Terry (B'ham Hodge H'I)McGrady, Eddie
    Dewar, DonaldMcKay, Allen (Barnsley West)
    Dixon, DonMcKelvey, William
    Dobson, FrankMcLeish, Henry
    Doran, FrankMcNamara, Kevin
    Douglas, DickMcTaggart, Bob
    Duffy, A. E. P.McWilliam, John
    Dunnachie, JimmyMadden, Max
    Dunwoody, Hon Mrs GwynethMahon, Mrs Alice
    Eadie, AlexanderMarek, Dr John
    Eastham, KenMarshall, David (Shettleston)
    Evans, John (St Helens N)Marshall, Jim (Leicester S)
    Ewing, Harry (Falkirk E)Martin, Michael J. (Springburn)
    Ewing, Mrs Margaret (Moray)Maxton, John
    Fatchett, DerekMeacher, Michael
    Faulds, AndrewMichie, Bill (Sheffield Heeley)
    Fearn, RonaldMichie, Mrs Ray (Arg'l & Bute)
    Field, Frank (Birkenhead)Millan, Rt Hon Bruce
    Fields, Terry (L'pool B G'n)Mitchell, Austin (G't Grimsby)
    Fisher, MarkMoonie, Dr Lewis
    Flannery, MartinMorgan, Rhodri
    Flynn, PaulMorris, Rt Hon J. (Aberavon)
    Foot, Rt Hon MichaelMowlam, Marjorie
    Foster, DerekMullin, Chris
    Foulkes, GeorgeMurphy, Paul
    Fraser, JohnNellist, Dave
    Galbraith, SamOakes, Rt Hon Gordon
    Galloway, GeorgeO'Neill, Martin
    Garrett, John (Norwich South)Orme, Rt Hon Stanley
    George, BruceOwen, Rt Hon Dr David
    Gilbert, Rt Hon Dr JohnParry, Robert
    Godman, Dr Norman A.Patchett, Terry
    Golding, Mrs LlinPendry, Tom
    Gordon, MildredPike, Peter L.
    Gould, BryanPrescort, John
    Grant, Bernie (Tottenham)Primarolo, Dawn
    Griffiths, Nigel (Edinburgh S)Quin, Ms Joyce
    Griffiths, Win (Bridgend)Randall, Stuart
    Grocott, BruceRedmond, Martin
    Hattersley, Rt Hon RoyRees, Rt Hon Merlyn
    Healey, Rt Hon DenisReid, Dr John
    Heffer, Eric S.Richardson, Jo
    Henderson, DougRoberts, Allan (Bootle)
    Hinchliffe, DavidRobertson, George
    Hogg, N. (C'nauld & Kilsyth)Robinson, Geoffrey
    Holland, StuartRogers, Allan
    Home Robertson, JohnRooker, Jeff
    Howarth, George (Knowsley N)Ross, Ernie (Dundee W)
    Howell, Rt Hon D. (S'heath)Rowlands, Ted
    Howells, GeraintRuddock, Joan
    Hoyle, DougSedgemore, Brian
    Hughes, John (Coventry NE)Sheerman, Barry
    Hughes, Robert (Aberdeen N)Sheldon, Rt Hon Robert
    Hughes, Roy (Newport E)Shore, Rt Hon Peter
    Hughes, Sean (Knowsley S)Short, Clare
    Hughes, Simon (Southwark)Skinner, Dennis
    Hume, JohnSmith, Andrew (Oxford E)
    Illsley, EricSmith, C. (Isl'ton & F'bury)
    Ingram, AdamSmith, Cyril (Rochdale)
    Janner, GrevilleSmith, Rt Hon J. (Monk'ds E)
    John, BrynmorSnape, Peter
    Jones, Barry (Alyn & Deeside)Soley, Clive
    Jones, Ieuan (Ynys Môn)Steel, Rt Hon David
    Kaufman, Rt Hon GeraldStott, Roger
    Kennedy, CharlesStrang, Gavin
    Kinnock, Rt Hon NeilStraw, Jack
    Kirkwood, ArchyTaylor, Mrs Ann (Dewsbury)
    Leadbitter, TedTaylor, Matthew (Truro)
    Leighton, RonThomas, Dr Dafydd Elis
    Lestor, Joan (Eccles)Turner, Dennis
    Lewis, TerryVaz, Keith
    Livingstone, KenWall, Pat
    Livsey, RichardWalley, Joan
    Lloyd, Tony (Stretford)Wardell, Gareth (Gower)
    Lofthouse, GeoffreyWareing, Robert N.
    McAllion, JohnWelsh, Andrew (Angus E)

    Welsh, Michael (Doncaster N)Worthington, Tony
    Wigley, DafyddYoung, David (Bolton SE)
    Williams, Rt Hon Alan
    Williams, Alan W. (Carm'then)Tellers for the Noes:
    Wilson, BrianMr. Ray Powell and
    Winnick, DavidMr. Frank Haynes.
    Wise, Mrs Audrey

    Question accordingly agreed to.

    12 Income Tax (Personal Reliefs)

    Resolved,

    That—
  • (1) In section 257 of the Income and Corporation Taxes Act 1988 (personal reliefs)—
  • (a) in subsection (1)(a) (married allowance) for "£3,795" there shall be substituted "£4,095";
  • (b) in subsections (1)(b) (single allowance) and (6) (wife's earned income relief) for "£2,425" there shall be substituted "£2,605";
  • (c) in subsection (2)(a) (married allowance: age 65 to 79), for "£4,675" there shall be substituted "£5,035";
  • (d) in subsection (2)(b) (single allowance: age 65 to 79), for "£2,960" there shall be substituted "£3,180";
  • (e) in subsection (3)(a) (married allowance: age 80 and over), for "£4,845" there shall be substituted "£5,205";
  • (f) in subsection (3)(b) (single allowance: age 80 and over), for "£3,070" there shall be substituted "£3,310";
  • (g) in subsection (5) (income limit for age allowance), for "£9,800" there shall be substituted "£10,600".
  • (2) Section 257(9) of that Act (indexation) shall not apply for the year 1988–89.
  • (3) This Resolution shall not require any change to be made in the amounts deductible or repayable under section 203 of that Act (pay as you earn) before 15th June 1988.
  • And it is hereby 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.—[Mr. Lawson.]

    13 Corporation Tax (Charge And Rate For Financial Year 1988)

    Resolved,

    That corporation tax shall he charged for the financial year 1988 at the rate of 35 per cent.—[Mr. Lawson.]

    14 Corporation Tax (Small Companies)

    Resolved,

    That—
  • (a) the small companies rate for the financial year 1988 shall be 25 per cent.; and
  • (b) the fraction mentioned in section 13(2) of the Income and Corporation Taxes Act 1988, and in section 95(2) of the Finance Act 1972, shall be one fortieth.—[Mr. Lawson.]
  • 15 Income Tax (Minor Personal Allowances)

    Question put,

    That—
  • (1) Sections 258, 263 and 264 of the Income and Corporation Taxes Act 1988 (housekeeper allowance, dependent relative allowance and son's or daughter's allowance) shall not have effect for the year 1988–89 or any subsequent year of assessment.
  • (2) This Resolution shall not require any change to be made in the amounts deductible or repayable under section 203 of that Act (pay as you earn) before 15th June 1988.
  • And it is hereby 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.—[Mr. Lawson.]

    The House divided: Ayes 334, Noes 228.

    Division No. 219]

    [10.30 pm

    AYES

    Adley, RobertDorrell, Stephen
    Aitken, JonathanDouglas-Hamilton, Lord James
    Alexander, RichardDover, Den
    Alison, Rt Hon MichaelDunn, Bob
    Allason, RupertDurant, Tony
    Amess, DavidEggar, Tim
    Amos, AlanEmery, Sir Peter
    Arbuthnot, JamesEvans, David (Welwyn Hatf'd)
    Arnold, Jacques (Gravesham)Evennett, David
    Arnold, Tom (Hazel Grove)Fairbairn, Nicholas
    Ashby, DavidFallon, Michael
    Aspinwall, JackFarr, Sir John
    Atkins, RobertFavell, Tony
    Baker, Rt Hon K. (Mole Valley)Fenner, Dame Peggy
    Baker, Nicholas (Dorset N)Field, Barry (Isle of Wight)
    Baldry, TonyFookes, Miss Janet
    Banks, Robert (Harrogate)Forman, Nigel
    Batiste, SpencerForsyth, Michael (Stirling)
    Beaumont-Dark, AnthonyForth, Eric
    Bellingham, HenryFowler, Rt Hon Norman
    Bendall, VivianFranks, Cecil
    Bennett, Nicholas (Pembroke)Freeman, Roger
    Benyon, W.French, Douglas
    Bevan, David GilroyFry, Peter
    Biffen, Rt Hon JohnGale, Roger
    Biggs-Davison, Sir JohnGardiner, George
    Blackburn, Dr John G.Gill, Christopher
    Blaker, Rt Hon Sir PeterGilmour, Rt Hon Sir Ian
    Bonsor, Sir NicholasGlyn, Dr Alan
    Bottomley, PeterGoodhart, Sir Philip
    Bottomley, Mrs VirginiaGoodlad, Alastair
    Bowden, A (Brighton K'pto'n)Goodson-Wickes, Dr Charles
    Bowden, Gerald (Dulwich)Gorman, Mrs Teresa
    Bowis, JohnGorst, John
    Boyson, Rt Hon Dr Sir RhodesGow, Ian
    Braine, Rt Hon Sir BernardGower, Sir Raymond
    Brandon-Bravo, MartinGrant, Sir Anthony (CambsSW)
    Brazier, JulianGreenway, Harry (Ealing N)
    Bright, GrahamGreenway, John (Ryedale)
    Brittan, Rt Hon LeonGregory, Conal
    Brooke, Rt Hon PeterGriffiths, Sir Eldon (Bury St E')
    Brown, Michael (Brigg & Cl't's)Griffiths, Peter (Portsmouth N)
    Browne, John (Winchester)Grist, Ian
    Buchanan-Smith, Rt Hon AlickGround, Patrick
    Buck, Sir AntonyGrylls, Michael
    Budgen, NicholasHamilton, Hon Archie (Epsom)
    Burns, SimonHamilton, Neil (Tatton)
    Burt, AlistairHampson, Dr Keith
    Butcher, JohnHanley, Jeremy
    Butler, ChrisHannam, John
    Butterfill, JohnHargreaves, A. (B'ham H'll Gr')
    Carlisle, John, (Luton N)Hargreaves, Ken (Hyndburn)
    Carlisle, Kenneth (Lincoln)Harris, David
    Carrington, MatthewHawkins, Christopher
    Carttiss, MichaelHayes, Jerry
    Cash, WilliamHayhoe, Rt Hon Sir Barney
    Channon, Rt Hon PaulHayward, Robert
    Chapman, SydneyHeath, Rt Hon Edward
    Chope, ChristopherHeathcoat-Amory, David
    Churchill, MrHeddle, John
    Clark, Hon Alan (Plym'th S'n)Heseltine, Rt Hon Michael
    Clark, Dr Michael (Rochford)Hicks, Mrs Maureen (Wolv' NE)
    Clark, Sir W. (Croydon S)Higgins, Rt Hon Terence L.
    Clarke, Rt Hon K. (Rushcliffe)Hind, Kenneth
    Colvin, MichaelHogg, Hon Douglas (Gr'th'm)
    Conway, DerekHolt, Richard
    Coombs, Anthony (Wyre F'rest)Hordern, Sir Peter
    Coombs, Simon (Swindon)Howard, Michael
    Cope, JohnHowarth, Alan (Strat'd-on-A)
    Cormack, PatrickHowarth, G. (Cannock & B'wd)
    Cran, JamesHowell, Ralph (North Norfolk)
    Critchley, JulianHughes, Robert G. (Harrow W)
    Currie, Mrs EdwinaHunt, David (Wirral W)
    Davies, Q. (Stamf'd & Spald'g)Hunt, John (Ravensbourne)
    Davis, David (Boothferry)Hunter, Andrew
    Day, StephenHurd, Rt Hon Douglas
    Devlin, TimIrvine, Michael
    Dickens, GeoffreyIrving, Charles

    Jack, MichaelPatnick, Irvine
    Jackson, RobertPatten, John (Oxford W)
    Janman, TimPattie, Rt Hon Sir Geoffrey
    Jessel, TobyPawsey, James
    Johnson Smith, Sir GeoffreyPeacock, Mrs Elizabeth
    Jones, Gwilym (Cardiff N)Porter, Barry (Wirral S)
    Jones, Robert B (Herts W)Porter, David (Waveney)
    Jopling, Rt Hon MichaelPortillo, Michael
    Kellett-Bowman, Dame ElainePowell, William (Corby)
    King, Roger (B'ham N'thfield)Price, Sir David
    Kirkhope, TimothyRaffan, Keith
    Knapman, RogerRaison, Rt Hon Timothy
    Knight, Greg (Derby North)Rathbone, Tim
    Knight, Dame Jill (Edgbaston)Redwood, John
    Knowles, MichaelRenton, Tim
    Knox, DavidRhodes James, Robert
    Lamont, Rt Hon NormanRhys Williams, Sir Brandon
    Lang, IanRiddick, Graham
    Latham, MichaelRidley, Rt Hon Nicholas
    Lawrence, IvanRidsdale, Sir Julian
    Lawson, Rt Hon NigelRoberts, Wyn (Conwy)
    Lee, John (Pendle)Roe, Mrs Marion
    Leigh, Edward (Gainsbor'gh)Rossi, Sir Hugh
    Lennox-Boyd, Hon MarkRost, Peter
    Lester, Jim (Broxtowe)Rowe, Andrew
    Lightbown, DavidRumbold, Mrs Angela
    Lilley, PeterRyder, Richard
    Lloyd, Sir Ian (Havant)Sackville, Hon Tom
    Lloyd, Peter (Fareham)Sainsbury, Hon Tim
    Lord, MichaelSayeed, Jonathan
    Luce, Rt Hon RichardScott, Nicholas
    Lyell, Sir NicholasShaw, David (Dover)
    McCrindle, RobertShaw, Sir Giles (Pudsey)
    Macfarlane, Sir NeilShaw, Sir Michael (Scarb')
    MacGregor, Rt Hon JohnShelton, William (Streatham)
    MacKay, Andrew (E Berkshire)Shephard, Mrs G. (Norfolk SW)
    Maclean, DavidShepherd, Colin (Hereford)
    McLoughlin, PatrickShepherd, Richard (Aldridge)
    McNair-Wilson, M. (Newbury)Shersby, Michael
    McNair-Wilson, P. (New Forest)Sims, Roger
    Madel, DavidSkeet, Sir Trevor
    Major, Rt Hon JohnSmith, Tim (Beaconsfield)
    Malins, HumfreySoames, Hon Nicholas
    Mans, KeithSpeed, Keith
    Maples, JohnSpeller, Tony
    Marland, PaulSpicer, Sir Jim (Dorset W)
    Marshall, John (Hendon S)Spicer, Michael (S Worcs)
    Marshall, Michael (Arundel)Squire, Robin
    Martin, David (Portsmouth S)Stanbrook, Ivor
    Mates, MichaelSteen, Anthony
    Maude, Hon FrancisStern, Michael
    Maxwell-Hyslop, RobinStevens, Lewis
    Mayhew, Rt Hon Sir PatrickStewart, Allan (Eastwood)
    Mellor, DavidStewart, Andy (Sherwood)
    Meyer, Sir AnthonyStewart, Ian (Hertfordshire N)
    Miller, HalStokes, John
    Mills, IainStradling Thomas, Sir John
    Miscampbell, NormanSumberg, David
    Mitchell, Andrew (Gedling)Tapsell, Sir Peter
    Mitchell, David (Hants NW)Taylor, Ian (Esher)
    Moate, RogerTaylor, John M (Solihull)
    Monro, Sir HectorTebbit, Rt Hon Norman
    Montgomery, Sir FergusTemple-Morris, Peter
    Moore, Rt Hon JohnThatcher, Rt Hon Margaret
    Morris, M (N'hampton S)Thompson, D. (Calder Valley)
    Morrison, Hon Sir CharlesThompson, Patrick (Norwich N)
    Moss, MalcolmThorne, Neil
    Moynihan, Hon ColinThornton, Malcolm
    Neale, GerrardThurnham, Peter
    Needham, RichardTownend, John (Bridlington)
    Nelson, AnthonyTownsend, Cyril D. (B'heath)
    Neubert, MichaelTracey, Richard
    Newton, Rt Hon TonyTredinnick, David
    Nicholson, David (Taunton)Trippier, David
    Nicholson, Emma (Devon West)Trotter, Neville
    Onslow, Rt Hon CranleyTwinn, Dr Ian
    Oppenheim, PhillipVaughan, Sir Gerard
    Page, RichardWaddington, Rt Hon David
    Paice, JamesWakeham, Rt Hon John
    Parkinson, Rt Hon CecilWaldegrave, Hon William

    Walden, GeorgeWilkinson, John
    Walker, Bill (T'side North)Wilshire, David
    Waller, GaryWolfson, Mark
    Walters, DennisWood, Timothy
    Ward, JohnWoodcock, Mike
    Wardle, Charles (Bexhill)Yeo, Tim
    Warren, KennethYoung, Sir George (Acton)
    Watts, John
    Wheeler, JohnTellers for the Ayes:
    Whitney, RayMr. Robert Boscawen and
    Widdecombe, AnnMr. Tristan Garel-Jones.

    NOES

    Abbott, Ms DianeEastham, Ken
    Adams, Allen (Paisley N)Evans, John (St Helens N)
    Allen, GrahamEwing, Harry (Falkirk E)
    Alton, DavidEwing, Mrs Margaret (Moray)
    Archer, Rt Hon PeterFatchett, Derek
    Armstrong, HilaryFaulds, Andrew
    Ashdown, PaddyFearn, Ronald
    Ashley, Rt Hon JackField, Frank (Birkenhead)
    Ashton, JoeFields, Terry (L'pool B G'n)
    Banks, Tony (Newham NW)Fisher, Mark
    Barnes, Harry (Derbyshire NE)Flannery, Martin
    Barron, KevinFlynn, Paul
    Battle, JohnFoot, Rt Hon Michael
    Beckett, MargaretForsythe, Clifford (Antrim S)
    Beggs, RoyFoster, Derek
    Beith, A. J.Foulkes, George
    Bell, StuartFraser, John
    Benn, Rt Hon TonyGalbraith, Sam
    Bennett, A. F. (D'nt'n & R'dish)Galloway, George
    Bermingham, GeraldGarrett, John (Norwich South)
    Bidwell, SydneyGeorge, Bruce
    Blair, TonyGilbert, Rt Hon Dr John
    Boyes, RolandGodman, Dr Norman A.
    Bradley, KeithGolding, Mrs Llin
    Bray, Dr JeremyGordon, Mildred
    Brown, Gordon (D'mline E)Gould, Bryan
    Brown, Nicholas (Newcastle E)Grant, Bernie (Tottenham)
    Bruce, Malcolm (Gordon)Griffiths, Nigel (Edinburgh S)
    Buchan, NormanGriffiths, Win (Bridgend)
    Caborn, RichardGrocott, Bruce
    Callaghan, JimHattersley, Rt Hon Roy
    Campbell, Menzies (Fife NE)Healey, Rt Hon Denis
    Campbell, Ron (Blyth Valley)Heffer, Eric S.
    Campbell-Savours, D. N.Henderson, Doug
    Canavan, DennisHinchliffe, David
    Carlile, Alex (Mont'g)Hogg, N. (C'nauld & Kilsyth)
    Clark, Dr David (S Shields)Holland, Stuart
    Clarke, Tom (Monklands W)Home Robertson, John
    Clay, BobHowarth, George (Knowsley N)
    Clelland, DavidHowell, Rt Hon D. (S'heath)
    Clwyd, Mrs AnnHowells, Geraint
    Cohen, HarryHoyle, Doug
    Coleman, DonaldHughes, John (Coventry NE)
    Cook, Frank (Stockton N)Hughes, Robert (Aberdeen N)
    Cook, Robin (Livingston)Hughes, Roy (Newport E)
    Corbyn, JeremyHughes, Sean (Knowsley S)
    Cousins, JimHughes, Simon (Southwark)
    Cox, TomHume, John
    Crowther, StanIllsley, Eric
    Cryer, BobIngram, Adam
    Cummings, JohnJanner, Greville
    Cunliffe, LawrenceJohn, Brynmor
    Cunningham, Dr JohnJones, Barry (Alyn & Deeside)
    Dalyell, TamJones, Ieuan (Ynys Môn)
    Darling, AlistairKaufman, Rt Hon Gerald
    Davies, Rt Hon Denzil (Llanelli)Kennedy, Charles
    Davies, Ron (Caerphilly)Kilfedder, James
    Davis, Terry (B'ham Hodge H'I)Kinnock, Rt Hon Neil
    Dewar, DonaldKirkwood, Archy
    Dixon, DonLeadbitter, Ted
    Dobson, FrankLeighton, Ron
    Doran, FrankLestor, Joan (Eccles)
    Douglas, DickLewis, Terry
    Duffy, A. E. P.Livingstone, Ken
    Dunnachie, JimmyLivsey, Richard
    Dunwoody, Hon Mrs GwynethLloyd, Tony (Stretford)
    Eadie, AlexanderLofthouse, Geoffrey

    McAllion, JohnRobertson, George
    McAvoy, ThomasRobinson, Geoffrey
    McCartney, IanRogers, Allan
    Macdonald, Calum A.Rooker, Jeff
    McFall, JohnRoss, Ernie (Dundee W)
    McGrady, EddieRoss, William (Londonderry E)
    McKay, Allen (Barnsley West)Rowlands, Ted
    McKelvey, WilliamRuddock, Joan
    McLeish, HenrySedgemore, Brian
    McNamara, KevinSheerman, Barry
    McTaggart, BobSheldon, Rt Hon Robert
    McWilliam, JohnShore, Rt Hon Peter
    Madden, MaxShort, Clare
    Maginnis, KenSkinner, Dennis
    Mahon, Mrs AliceSmith, Andrew (Oxford E)
    Marek, Dr JohnSmith, C. (Isl'ton & F'bury)
    Marshall, David (Shettleston)Smith, Cyril (Rochdale)
    Marshall, Jim (Leicester S)Smith, Rt Hon J. (Monk'ds E)
    Martin, Michael J. (Springburn)Smyth, Rev Martin (Belfast S)
    Maxton, JohnSnape, Peter
    Meacher, MichaelSoley, Clive
    Michie, Bill (Sheffield Heeley)Steel, Rt Hon David
    Michie, Mrs Ray (Arg'l & Bute)Stott, Roger
    Millan, Rt Hon BruceStrang, Gavin
    Mitchell, Austin (G't Grimsby)Straw, Jack
    Molyneaux, Rt Hon JamesTaylor, Mrs Ann (Dewsbury)
    Moonie, Dr LewisTaylor, Matthew (Truro)
    Morgan, RhodriThomas, Dr Dafydd Elis
    Morris, Rt Hon J. (Aberavon)Turner, Dennis
    Mowlam, MarjorieVaz, Keith
    Mullin, ChrisWalker, A. Cecil (Belfast N)
    Murphy, PaulWall, Pat
    Nellist, DaveWalley, Joan
    Oakes, Rt Hon GordonWardell, Gareth (Gower)
    O'Neill, MartinWareing, Robert N.
    Orme, Rt Hon StanleyWelsh, Andrew (Angus E)
    Parry, RobertWelsh, Michael (Doncaster N)
    Patchett, TerryWigley, Dafydd
    Pendry, TomWilliams, Rt Hon Alan
    Pike, Peter L.Williams, Alan W. (Carm'then)
    Prescott, JohnWilson, Brian
    Primarolo, DawnWinnick, David
    Quin, Ms JoyceWise, Mrs Audrey
    Randall, StuartWorthington, Tony
    Redmond, MartinYoung, David (Bolton SE)
    Rees, Rt Hon Merlyn
    Reid, Dr JohnTellers for the Noes:
    Richardson, JoMr. Ray Powell and
    Roberts, Allan (Bootle)Mr. Frank Haynes.

    Question accordingly agreed to.

    16 Covenants And Maintenance, Etc

    Resolved,

    That—
    (1) The following sections shall be inserted at the beginning of Part IX of the Income and Corporation Taxes Act 1988—

    "General rule

    347A.—(1) A payment to which this section applies shall not be a charge on the income of the person liable to make it, and accordingly—

  • (a) his income shall he computed without any deduction being made on account of the payment, and
  • (b) the payment shall not form part of the income of the person to whom it is made or of any other person.
  • (2) This section applies to any annual payment made by an individual which would otherwise be within the charge to tax under Case III of Schedule D except—

  • (a) a payment of interest;
  • (b) a covenanted payment to charity (within the meaning given by section 660(3));
  • (c) a payment made for bona fide commercial reasons in connection with the individual's trade, profession or vocation; and
  • (d) a payment to which section 125(1) applies.
  • (3) This section applies to a payment made by personal representatives (within the meaning given in section 701(4)) where—

  • (a) the deceased would have been liable to make the payment if he had not died, and
  • (b) this section would have applied to the payment if he had made it.
  • (4) A maintenance payment arising outside the United Kingdom shall not be within the charge to tax under Case V of Schedule D if, because of this section, it would not have been within the charge to tax under Case III if it had arisen in the United Kingdom; and for this purpose "maintenance payment" means a periodical payment (not being an instalment of a lump sum) which satisfies the conditions set out in paragraphs (a) and (b) of section 347B(5).

    (5) No deduction shall be made under section 65(1)(b) on account of an annuity or other annual payment which would not have been within the charge to tax under Case III of Schedule D if it had arisen in the United Kingdom.

    Qualifying maintenance payments

    347B. — (1) In this section "qualifying maintenance payment" means a periodical payment which—

  • (a) is made under an order by a court in the United Kingdom, or under a written agreement the proper law of which is the law of a part of the United Kingdom,
  • (b) is made by one of the parties to a marriage (including a marriage which has been dissolved or annulled) either—
  • (i) to or for the benefit of the other party and for the maintenance of the other party, or
  • (ii) to the other party for the maintenance by the other party of any child of the family,
  • (c) is due at a time when—
  • (i) the two parties are not a married couple living together, and
  • (ii) the party to whom or for whose benefit the payment is made has not remarried, and
  • (d) is not a payment in respect of which relief from tax is available to the person making the payment under any provision of the Income Tax Acts other than this section.
  • (2) Notwithstanding section 347A(1)(a) but subject to subsections (3) and (4) below, a person making a claim for the purpose shall be entitled, in computing his total income for a year of assessment, to deduct an amount equal to the aggregate amount of any qualifying maintenance payments made by him which fall due in that year.

    (3) The amount which may be deducted under this section by a person in computing his total income for a year of assessment shall not exceed the amount of the difference between the higher (married person's) relief and the lower (single person's) relief under subsection (1) of section 257 as it applies for the year to a person not falling within subsection (2) or (3) of that section.

    (4) Where qualifying maintenance payments falling due in a year of assessment are made by a person who also makes other maintenance payments attracting relief for that year, subsection (3) above shall apply as if the limit imposed by it were reduced by an amount equal to the aggregate amount of those other payments.

    (5) The reference in subsection (4) above to other maintenance payments attracting relief for a year is a reference to periodical payments which—

  • (a) are made under an order made by a court (whether in the United Kingdom or elsewhere) or under a written or oral agreement, and
  • (b) are made by a person—
  • (i) as one of the parties to a marriage (including a marriage which has been dissolved or annulled) to or for the benefit of the other party to the marriage and for the maintenance of the other party, or
  • (ii) to any person under 21 years of age for his own benefit, maintenance or education, or
  • (iii) to any person for the benefit, maintenance or education of a person under 21 years of age, and in respect of which the person making them is entitled otherwise than under this section to make a deduction in computing his income for the year.
  • (6) The reference in subsection (1) above to a married couple living together shall be construed in accordance with section 282(1), but section 282(2) shall not apply for the purposes of this section.

    (7) In this section—

  • (a) "child of the family", in relation to the parties to a marriage, means a person under 21 years of age—
  • (i) who is a child of both those parties, or
  • (ii) who (not being a person who has been boarded out with them by a public authority or voluntary organisation) has been treated by both of them as a child of their family; and
  • (b) "periodical payment" does not include an instalment of a lump sum."
  • (2) The following sections shall be inserted at the beginning of Part II of the Income and Corporation Taxes Act 1970—

    "General rule.

    51 (A). —(1) A payment to which this section applies shall not be a charge on the income of the person liable to make it, and accordingly—

  • (a) his income shall be computed without any deduction being made on account of the payment, and
  • (b) the payment shall not form part of the income of the person to whom it is made or of any other person.
  • (2) This section applies to any annual payment made by an individual which would otherwise be within the charge to tax under Case III of Schedule D except—

  • (a) a payment of interest;
  • (b) a covenanted payment to charity (within the meaning given by section 434(2) below);
  • (c) a payment made for bona fide commercial reasons in connection with the individual's trade, profession or vocation; and
  • (d) a payment to which section 48(1) of the Finance Act 1977 applies.
  • (3) This section applies to a payment made by personal representatives (within the meaning given in section 432(4) below) where—

  • (a) the deceased would have been liable to make the payment if he had not died, and
  • (b) this section would have applied to the payment if he had made it.
  • (4) A maintenance payment arising outside the United Kingdom shall not be within the charge to tax under Case V of Schedule D if, because of this section, it would not have been within the charge to tax under Case III if it had arisen in the United Kingdom; and for this purpose "maintenance payment" means a periodical payment (not being an instalment of a lump sum) which satisfies the conditions set out in paragraphs (a) and (b) of section 51 B(5) below.

    (5) No deduction shall be made under section 122(1)(b) below on account of an annuity or other annual payment which would not have been within the charge to tax under Case III of Schedule D if it had arisen in the United Kingdom.

    Qualifying maintenance payments

    51B. — (1) In this section "qualifying maintenance payment" means a periodical payment which—

  • (a) is made under an order made by a court in the United Kingdom, or under a written agreement the proper law of which is the law of a part of the United Kingdom,
  • (b) is made by one of the parties to a marriage (including a marriage which has been dissolved or annulled) either—
  • (i) to or for the benefit of the other party and for the maintenance of the other party, or
  • (ii) to the other party for the maintenance by the other party of any child of the family,
  • (c) is due at at time when—
  • (i) the two parties are not a married couple living together, and
  • (ii) the party to whom or for whose benefit the payment is made has not remarried, and
  • (d) is not a payment in respect of which relief from tax is available to the person making the payment under any provision of the Income Tax Acts other than this section.
  • (2) Notwithstanding section 51A(1)(a) above but subject to subsections (3) and (4) below, a person making a claim for the purpose shall be entitled, in computing his total income for the year 1987–88, to deduct an amount equal to the aggregate amount of any qualifying maintenance payments made by him which fall due in that year.

    (3) The amount which may be deducted under this section by a person in computing his total income for the year 1987–88 shall not exceed £1,370.

    (4) Where qualifying maintenance payments falling due in the year 1987–88 are made by a person who also makes other maintenance payments attracting relief for that year, subsection (3) above shall apply as if the limit imposed by it were reduced by an amount equal to the aggregate amount of those other payments.

    (5) The reference in subsection (4) above to other maintenance payments attracting relief for the year 1987–88 is a reference to periodical payments which—

  • (a) are made under an order made by a court (whether in the United Kingdom or elsewhere) or under a written or oral agreement, and
  • (b) are made by a person—
  • (i) as one of the parties to a marriage (including a marriage which has been disolved or annulled) to or for the benefit of the other party to the marriage and for the maintenance of the other party, or
  • (ii) to any person under 21 years of age for his own benefit, maintenance or education, or
  • (iii) to any person for the benefit, maintenance or education of a person under 21 years of age,
  • and in respect of which the person making them is entitled otherwise than under this section to make a deduction in computing his income for the year.

    (6) The reference in subsection (1) above to a married couple living together shall be construed in accordance with section 42(1) above, but section 42(2) above shall not apply for the purposes of this section.

    (7) In this section—

  • (a) "child of the family", in relation to the parties to a marriage, means a person under 21 years of age—
  • (i) who is a child of both those parties, or
  • (ii) who (not being a person who has been hoarded out with them by a public authority or voluntary organisation) has been treated by both of them as a child of their family, and
  • (b) "periodical payment" does not include an instalment of a lump sum."
  • (3) This Resolution shall have effect in relation to any payment falling due on or after 15th March 1988 unless it is made in pursuance of an existing obligation.

    (4) In paragraph (3) above "existing obligation" means a binding obligation—

  • (a) under an order made by a court (whether in the United Kingdom or elsewhere) before 15th March 1988, or before the end of June 1988 on an application made on or before 15th March 1988;
  • (b) under a deed executed or written agreement made before 15th March 1988 and received by an inspector before the end of June 1988;
  • (c) under an oral agreement made before 15th March 1988, written particulars of which have been received by an inspector before the end of June 1988; or
  • (d) under an order made by a court (whether in the United Kingdom or elsewhere) on or after 15th March 1988, or under a written agreement made on or after that date, where the order or agreement replaces, varies or supplements an order or agreement within this subsection;
  • but subject to paragraph (5) below.

    (5) An obligation within paragraph (4)(d) above is an existing obligation only if—

  • (a) it is an obligation to make periodical payments (not being instalments of a lump sum) which arc made by a person—
  • (i) as one of the parties to a marriage (including a marriage which has been dissolved or annulled) to or for the benefit of the other party to the marriage and for the maintenance of the other party, or
  • (ii) to any person under 21 years of age for his own benefit, maintenance or education, or
  • (iii) to any person for the benefit, maintenance or education of a person under 21 years of age, and
  • (b) the order or agreement replaced, varied or supplemented provided for such payments to be made for the benefit, maintenance or, as the case may be, education of the same person.
  • (6) Section 351 of the Income and Corporation Taxes Act 1988 and section 65 of the Income and Corporation Taxes Act 1970 shall not apply to any payment in relation to which this Resolution has effect.

    And it is hereby 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.—[Mr. Lawson.]

    17 Relief For Interest (Limit For 1988–89)

    Resolved,

    That, for the year 1988–89, the qualifying maximum referred to in sections 357 and 365(3) of the Income and Corporation Taxes Act 1988 (limit on relief for interest on certain loans) shall be £30,000.
    And it is hereby 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 1986.—[Mr. Lawson.]

    18 Relief For Interest (Home Loans)

    Resolved,

    That provision may be made about relief for interest paid in relation to any land, caravan or house-boat used or to be used as an only or main residence.—[Mr. Lawson.]

    19 Relief For Interest (Home Improvements)

    Question put,

    That—

    (1) In relation to payments of interest made on or after 6th April 1988 section 355 of the Income and Corporation Taxes Act 1988 (limitations on relief for loans for purchase or improvement of land etc.) shall have effect with the insertion of the following subsections after subsection (2)—

    "(2A) Section 354 shall not apply by virtue of subsection (1)(a) above where the interest is paid on a home improvement loan unless the loan was made before 6th April 1988.
    (2B) In subsection (2A) above "home improvement loan" means—
  • (a) a loan to defray money applied in improving or developing land or buildings on land, otherwise than by the erection of a new building (which is not part of an existing residence) on land which immediately before the improvement or development began had no building on it, or
  • (b) a loan replacing (whether directly or indirectly) a loan within paragraph (a) above.
  • (2C) Where it is proved by written evidence that a loan made on or after 6th April 1988 was made in pursuance of an offer made by the lender before that date and that the offer either was in writing or was evidenced by a note or memorandum made by the lender before that date, the loan shall be deemed for the purposes of subsection (2A) above to have been made before that date."

    (2) In relation to payments of interest made on or after 6th April 1988 section 356 of that Act (job-related accommodation) shall have effect with the insertion of the following subsection after subsection (1)—

    "(1A) Subsection (1) above shall not apply where the interest is paid on a home improvement loan (as defined in section 355 (2B)) unless the loan was made before 6th April 1988; and section 355 (2C) shall have effect for the purposes of this subsection as for those of section 355 (2A)."

    (3) Interest paid by a housing association on a home improvement loan made on or after 6th April 1988 shall not be relevant loan interest for the purposes of Part IX of that Act; and for the purposes of this paragraph—

  • (a) "housing association" means a housing association for the time being approved for the purposes of section 488 of that Act or a self-build society for the time being approved for the purposes of section 489,
  • (b) "home improvement loan" has the same meaning as in subsection (2B) of section 355 of that Act, and
  • (c) subsection (2C) of that section shall have effect as it does for the purposes of subsection (2A) of that section.
  • And it is hereby 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.—[Mr. Lawson.]

    The House divided: Ayes 335, Noes 218.

    Division No. 220]

    [10.42 pm

    AYES

    Adley, RobertBaker, Rt Hon K. (Mole Valley)
    Aitken, JonathanBaker, Nicholas (Dorset N)
    Alexander, RichardBaldry, Tony
    Alison, Rt Hon MichaelBanks, Robert (Harrogate)
    Allason, RupertBatiste, Spencer
    Amess, DavidBeaumont-Dark, Anthony
    Amos, AlanBellingham, Henry
    Arbuthnot, JamesBendall, Vivian
    Arnold, Jacques (Gravesham)Bennett, Nicholas (Pembroke)
    Arnold, Tom (Hazel Grove)Benyon, W.
    Ashby, DavidBevan, David Gilroy
    Aspinwall, JackBiffen, Rt Hon John
    Atkins, RobertBiggs-Davison, Sir John

    Blackburn, Dr John G.Glyn, Dr Alan
    Blaker, Rt Hon Sir PeterGoodhart, Sir Philip
    Bonsor, Sir NicholasGoodlad, Alastair
    Bottomley, PeterGoodson-Wickes, Dr Charles
    Bottomley, Mrs VirginiaGorman, Mrs Teresa
    Bowden, A (Brighton K'pto'n)Gorst, John
    Bowden, Gerald (Dulwich)Gow, Ian
    Bowis, JohnGower, Sir Raymond
    Boyson, Rt Hon Dr Sir RhodesGrant, Sir Anthony (CambsSW)
    Braine, Rt Hon Sir BernardGreenway, Harry (Ealing N)
    Brandon-Bravo, MartinGreenway, John (Ryedale)
    Brazier, JulianGregory, Conal
    Bright, GrahamGriffiths, Sir Eldon (Bury St E')
    Brittan, Rt Hon LeonGriffiths, Peter (Portsmouth N)
    Brooke, Rt Hon PeterGrist, Ian
    Brown, Michael (Brigg & Cl't's)Ground, Patrick
    Browne, John (Winchester)Grylls, Michael
    Buchanan-Smith, Rt Hon AlickHamilton, Hon Archie (Epsom)
    Buck, Sir AntonyHamilton, Neil (Tatton)
    Budgen, NicholasHampson, Dr Keith
    Burns, SimonHanley, Jeremy
    Burt, AlistairHannam, John
    Butcher, JohnHargreaves, A. (B'ham H'll Gr')
    Butler, ChrisHargreaves, Ken (Hyndburn)
    Butterfill, JohnHarris, David
    Carlisle, John, (Luton N)Hawkins, Christopher
    Carlisle, Kenneth (Lincoln)Hayes, Jerry
    Carrington, MatthewHayhoe, Rt Hon Sir Barney
    Carttiss, MichaelHayward, Robert
    Cash, WilliamHeath, Rt Hon Edward
    Channon, Rt Hon PaulHeathcoat-Amory, David
    Chapman, SydneyHeddle, John
    Chope, ChristopherHeseltine, Rt Hon Michael
    Churchill, MrHicks, Mrs Maureen (Wolv' NE)
    Clark, Hon Alan (Plym'th S'n)Higgins, Rt Hon Terence L.
    Clark, Dr Michael (Rochford)Hind, Kenneth
    Clark, Sir W. (Croydon S)Hogg, Hon Douglas (Gr'th'm)
    Clarke, Rt Hon K. (Rushcliffe)Holt, Richard
    Colvin, MichaelHordern, Sir Peter
    Conway, DerekHoward, Michael
    Coombs, Anthony (Wyre F'rest)Howarth, Alan (Strat'd-on-A)
    Coombs, Simon (Swindon)Howarth, G. (Cannock & B'wd)
    Cormack, PatrickHowell, Ralph (North Norfolk)
    Cran, JamesHughes, Robert G. (Harrow W)
    Critchley, JulianHunt, David (Wirral W)
    Currie, Mrs EdwinaHunt, John (Ravensbourne)
    Davies, Q. (Stamf'd & Spald'g)Hunter, Andrew
    Davis, David (Boothferry)Hurd, Rt Hon Douglas
    Day, StephenIrvine, Michael
    Devlin, TimIrving, Charles
    Dickens, GeoffreyJack, Michael
    Dorrell, StephenJackson, Robert
    Douglas-Hamilton, Lord JamesJanman, Tim
    Dover, DenJessel, Toby
    Dunn, BobJohnson Smith, Sir Geoffrey
    Durant, TonyJones, Gwilym (Cardiff N)
    Eggar, TimJones, Robert B (Herts W)
    Emery, Sir PeterJopling, Rt Hon Michael
    Evans, David (Welwyn Hatf'd)Kellett-Bowman, Dame Elaine
    Evennett, DavidKilfedder, James
    Fairbairn, NicholasKing, Roger (B'ham N'thfield)
    Fallon, MichaelKirkhope, Timothy
    Farr, Sir JohnKnapman, Roger
    Favell, TonyKnight, Greg (Derby North)
    Fenner, Dame PeggyKnight, Dame Jill (Edgbaston)
    Field, Barry (Isle of Wight)Knowles, Michael
    Fookes, Miss JanetKnox, David
    Forman, NigelLamont, Rt Hon Norman
    Forsyth, Michael (Stirling)Lang, Ian
    Forth, EricLatham, Michael
    Fowler, Rt Hon NormanLawrence, Ivan
    Franks, CecilLawson, Rt Hon Nigel
    Freeman, RogerLee, John (Pendle)
    French, DouglasLeigh, Edward (Gainsbor'gh)
    Fry, PeterLester, Jim (Broxtowe)
    Gale, RogerLightbown, David
    Gardiner, GeorgeLilley, Peter
    Garel-Jones, TristanLloyd, Sir Ian (Havant)
    Gill, ChristopherLord, Michael
    Gilmour, Rt Hon Sir IanLuce, Rt Hon Richard

    Lyell, Sir NicholasSackville, Hon Tom
    McCrindle, RobertSainsbury, Hon Tim
    Macfarlane, Sir NeilSayeed, Jonathan
    MacGregor, Rt Hon JohnScott, Nicholas
    MacKay, Andrew (E Berkshire)Shaw, David (Dover)
    McLoughlin, PatrickShaw, Sir Giles (Pudsey)
    McNair-Wilson, M. (Newbury)Shaw, Sir Michael (Scarb')
    McNair-Wilson, P. (New Forest)Shelton, William (Streatham)
    Madel, DavidShephard, Mrs G. (Norfolk SW)
    Major, Rt Hon JohnShepherd, Colin (Hereford)
    Malins, HumfreyShepherd, Richard (Aldridge)
    Mans, KeithShersby, Michael
    Maples, JohnSims, Roger
    Marland, PaulSkeet, Sir Trevor
    Marshall, John (Hendon S)Smith, Tim (Beaconsfield)
    Marshall, Michael (Arundel)Soames, Hon Nicholas
    Martin, David (Portsmouth S)Speed, Keith
    Mates, MichaelSpeller, Tony
    Maude, Hon FrancisSpicer, Sir Jim (Dorset W)
    Maxwell-Hyslop, RobinSpicer, Michael (S Worcs)
    Mayhew, Rt Hon Sir PatrickSquire, Robin
    Mellor, DavidStanbrook, Ivor
    Meyer, Sir AnthonySteen, Anthony
    Miller, HalStern, Michael
    Mills, IainStevens, Lewis
    Miscampbell, NormanStewart, Allan (Eastwood)
    Mitchell, Andrew (Gedling)Stewart, Andy (Sherwood)
    Mitchell, David (Hants NW)Stewart, Ian (Hertfordshire N)
    Moate, RogerStokes, John
    Monro, Sir HectorStradling Thomas, Sir John
    Montgomery, Sir FergusSumberg, David
    Moore, Rt Hon JohnTapsell, Sir Peter
    Morris, M (N'hampton S)Taylor, Ian (Esher)
    Morrison, Hon Sir CharlesTaylor, John M (Solihull)
    Moss, MalcolmTebbit, Rt Hon Norman
    Moynihan, Hon ColinTemple-Morris, Peter
    Neale, GerrardThatcher, Rt Hon Margaret
    Needham, RichardThompson, D. (Calder Valley)
    Nelson, AnthonyThompson, Patrick (Norwich N)
    Neubert, MichaelThorne, Neil
    Newton, Rt Hon TonyThornton, Malcolm
    Nicholson, David (Taunton)Thurnham, Peter
    Nicholson, Emma (Devon West)Townend, John (Bridlington)
    Onslow, Rt Hon CranleyTownsend, Cyril D. (B'heath)
    Oppenheim, PhillipTracey, Richard
    Page, RichardTredinnick, David
    Paice, JamesTrippier, David
    Parkinson, Rt Hon CecilTrotter, Neville
    Patnick, IrvineTwinn, Dr Ian
    Patten, John (Oxford W)Vaughan, Sir Gerard
    Pattie, Rt Hon Sir GeoffreyWaddington, Rt Hon David
    Pawsey, JamesWakeham, Rt Hon John
    Peacock, Mrs ElizabethWaldegrave, Hon William
    Porter, Barry (Wirral S)Walden, George
    Porter, David (Waveney)Walker, Bill (T'side North)
    Portillo, MichaelWaller, Gary
    Powell, William (Corby)Walters, Dennis
    Price, Sir DavidWard, John
    Raffan, KeithWardle, Charles (Bexhill)
    Raison, Rt Hon TimothyWarren, Kenneth
    Rathbone, TimWatts, John
    Redwood, JohnWheeler, John
    Renton, TimWhitney, Ray
    Rhodes James, RobertWiddecombe, Ann
    Rhys Williams, Sir BrandonWilkinson, John
    Riddick, GrahamWilshire, David
    Ridley, Rt Hon NicholasWolfson, Mark
    Ridsdale, Sir JulianWood, Timothy
    Roberts, Wyn (Conwy)Woodcock, Mike
    Roe, Mrs MarionYeo, Tim
    Rossi, Sir HughYoung, Sir George (Acton)
    Rost, Peter
    Rowe, AndrewTellers for the Ayes:
    Rumbold, Mrs AngelaMr. Mark Lennox-Boyd and
    Ryder, RichardMr. Peter Lloyd.

    NOES

    Abbott, Ms DianeAlton, David
    Adams, Allen (Paisley N)Archer, Rt Hon Peter
    Allen, GrahamArmstrong, Hilary

    Ashdown, PaddyGolding, Mrs Llin
    Ashley, Rt Hon JackGordon, Mildred
    Ashton, JoeGould, Bryan
    Banks, Tony (Newham NW)Grant, Bernie (Tottenham)
    Barnes, Harry (Derbyshire NE)Griffiths, Nigel (Edinburgh S)
    Barron, KevinGriffiths, Win (Bridgend)
    Battle, JohnGrocott, Bruce
    Beckett, MargaretHattersley, Rt Hon Roy
    Beith, A. J.Haynes, Frank
    Bell, StuartHealey, Rt Hon Denis
    Benn, Rt Hon TonyHeffer, Eric S.
    Bennett, A. F. (D'nt'n & R'dish)Henderson, Doug
    Bermingham, GeraldHinchliffe, David
    Bidwell, SydneyHogg, N. (C'nauld & Kilsyth)
    Blair, TonyHolland, Stuart
    Boyes, RolandHome Robertson, John
    Bradley, KeithHowarth, George (Knowsley N)
    Bray, Dr JeremyHowell, Rt Hon D. (S'heath)
    Brown, Gordon (D'mline E)Howells, Geraint
    Brown, Nicholas (Newcastle E)Hoyle, Doug
    Bruce, Malcolm (Gordon)Hughes, John (Coventry NE)
    Buchan, NormanHughes, Robert (Aberdeen N)
    Caborn, RichardHughes, Roy (Newport E)
    Callaghan, JimHughes, Sean (Knowsley S)
    Campbell, Menzies (Fife NE)Hughes, Simon (Southwark)
    Campbell, Ron (Blyth Valley)Hume, John
    Campbell-Savours, D. N.Illsley, Eric
    Canavan, DennisIngram, Adam
    Carlile, Alex (Mont'g)Janner, Greville
    Clark, Dr David (S Shields)John, Brynmor
    Clarke, Tom (Monklands W)Jones, Barry (Alyn & Deeside)
    Clay, BobJones, leuan (Ynys Môn)
    Clelland, DavidKaufman, Rt Hon Gerald
    Clwyd, Mrs AnnKennedy, Charles
    Cohen, HarryKinnock, Rt Hon Neil
    Coleman, DonaldKirkwood, Archy
    Cook, Frank (Stockton N)Leadbitter, Ted
    Cook, Robin (Livingston)Leighton, Ron
    Corbyn, JeremyLestor, Joan (Eccles)
    Cousins, JimLewis, Terry
    Cox, TomLivingstone, Ken
    Crowther, StanLivsey, Richard
    Cryer, BobLloyd, Tony (Stretford)
    Cummings, JohnLofthouse, Geoffrey
    Cunlirfe, LawrenceMcAllion, John
    Cunningham, Dr JohnMcAvoy, Thomas
    Dalyell, TarnMcCartney, Ian
    Darling, AlistairMacdonald, Calum A.
    Davies, Ron (Caerphilly)McFall, John
    Davis, Terry (B'ham Hodge H'I)McGrady, Eddie
    Dewar, DonaldMcKay, Allen (Barnsley West)
    Dixon, DonMcKelvey, William
    Dobson, FrankMcLeish, Henry
    Doran, FrankMcNamara, Kevin
    Douglas, DickMcTaggart, Bob
    Duffy, A. E. P.McWilliam, John
    Dunnachie, JimmyMadden, Max
    Dunwoody, Hon Mrs GwynethMahon, Mrs Alice
    Eadie, AlexanderMarek, Dr John
    Eastham, KenMarshall, David (Shettleston)
    Evans, John (St Helens N)Marshall, Jim (Leicester S)
    Ewing, Harry (Falkirk E)Martin, Michael J. (Springburn)
    Ewing, Mrs Margaret (Moray)Maxton, John
    Fatchett, DerekMeacher, Michael
    Faulds, AndrewMichie, Bill (Sheffield Heeley)
    Field, Frank (Birkenhead)Millan, Rt Hon Bruce
    Fields, Terry (L'pool B G'n)Mitchell, Austin (G't Grimsby)
    Fisher, MarkMoonie, Dr Lewis
    Flannery, MartinMorgan, Rhodri
    Flynn, PaulMorris, Rt Hon J. (Aberavon)
    Foot, Rt Hon MichaelMowlam, Marjorie
    Foster, DerekMullin, Chris
    Foulkes, GeorgeMurphy, Paul
    Fraser, JohnNellist, Dave
    Galbraith, SamOakes, Rt Hon Gordon
    Galloway, GeorgeO'Neill, Martin
    Garrett, John (Norwich South)Orme, Rt Hon Stanley
    George, BruceParry, Robert
    Gilbert, Rt Hon Dr JohnPatchett, Terry
    Godman, Dr Norman A.Pendry, Tom

    Pike, Peter L.Steel, Rt Hon David
    Powell, Ray (Ogmore)Stott, Roger
    Prescott, JohnStrang, Gavin
    Primarolo, DawnStraw, Jack
    Quin, Ms JoyceTaylor, Mrs Ann (Dewsbury)
    Randall, StuartTaylor, Matthew (Truro)
    Redmond, MartinThomas, Dr Dafydd Elis
    Rees, Rt Hon MerlynTurner, Dennis
    Reid, Dr JohnVaz, Keith
    Richardson, JoWall, Pat
    Robertson, GeorgeWalley, Joan
    Robinson, GeoffreyWardell, Gareth (Gower)
    Rogers, AllanWareing, Robert N.
    Rooker, JeffWelsh, Andrew (Angus E)
    Ross, Ernie (Dundee W)Welsh, Michael (Doncaster N)
    Rowlands, TedWigley, Dafydd
    Sedgemore, BrianWilliams, Rt Hon Alan
    Sheerman, BarryWilliams, Alan W. (Carm'then)
    Sheldon, Rt Hon RobertWilson, Brian
    Shore, Rt Hon PeterWinnick, David
    Short, ClareWise, Mrs Audrey
    Skinner, DennisWorthington, Tony
    Smith, Andrew (Oxford E)Young, David (Bolton SE)
    Smith, C. (Isl'ton & F'bury)
    Smith, Cyril (Rochdale)Tellers for the Noes:
    Smith, Rt Hon J. (Monk'ds E)Mrs. Ray Michie and
    Snape, PeterMr. Ronnie Fearn.
    Soley, Clive

    Question accordingly agreed to.

    May I have the leave of the House to put motions 20, 21 and 22 together? There does not appear to be any objection to that being done.

    20 Relief For Interest (Dependent Relative's Residence)

    Resolved,

    That—
  • (1) In sections 355(1)(a) and 357(2)(a) of the Income and Corporation Taxes Act 1988 the words "or of a dependent relative or former or separated spouse of his." shall not have effect in relation to payments of interest made on or after 6th April 1988.
  • (2) Paragraph (1) above shall not apply where the interest is paid on a loan made before 6th April 1988 if interest paid on it at a relevant time was eligible for relief under section 353 of that Act only because the land, caravan or house-boat concerned was used as the only or main residence of the same dependent relative or former or separated spouse.
  • (3) In paragraph (2) above "relevant time" means—
  • (a) the last time when interest was paid on the loan before 6th April 1988, or
  • (b) if no interest was paid on it before that date, any time within the period of 12 months (or any longer period substituted in relation to the case under section 355(2) of that Act) after the date on which the loan was made;
  • but sub-paragraph (b) above shall not apply if at any time after the date on which the loan was made and before the date on which the land, caravan or house-boat was first used as mentioned in paragraph (2) above, the land, caravan or house-boat was used for any other purpose.
  • (4) In section 358(4)(a) of that Act (relief where borrower deceased) the words "or of any dependent relative of the deceased" shall not have effect in relation to payments of interest made on or after 6th April 1988 unless—
  • (a) the deceased died before that date, and
  • (b) the land, caravan or house-boat was used as the only or main residence of the dependent relative before that date.
  • (5) Where it is proved by written evidence that a loan made on or after 6th April 1988 was made in pursuance of an offer made by the lender before that date and that the offer either was in writing or was evidenced by a note or memorandum made by the lender before that date, the loan shall be deemed for the purposes of this Resolution to have been made before that date.
  • (6) Interest paid by a housing association shall not be relevant loan interest for the purposes of Part IX of that Act where by virtue of this Resolution it would not be relevant loan interest if paid by a member of the association; and in this paragraph "housing association" means a housing association for the time being approved for the purposes of section 488 of that Act or a self-build society for the time being approved for the purposes of section 489.
  • And it is hereby 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.—[Mr. Lawson.]

    21 Benefits In Kind (Cars)

    Resolved,

    That—
  • (1) For the year 1988–89 and subsequent years of assessment, Schedule 6 to the Income and Corporation Taxes Act 1988 (taxation of directors and others in respect of cars) shall have effect with the substitution for Part I (tables of flat rate cash equivalents) of the following—
  • PART I
    TABLES OF FLAT RATE CASH EQUIVALENTS
    TABLE A
    Cars with an original market value up to £19,250 and having a cylinder capacity
    Cylinder capacity of car in cubic centimetresAge of car at end of relevant year of assessment
    Under 4 years4 years or more
    1400 or less… … … … … … … … … … …£1,050£700
    More than 1400 but not more than 2000… … … …£1,400£940
    More than 2000… … … … … … … … … …£2,200£1,450

    TABLE B
    Cars with an original market value up to £19,250 and not having a cylinder capacity
    Original market value of carAge of car at end of relevant year of assessment
    Under 4 years4 years or more
    Less than £6,000 … … … … … … … … … …£1,050£700
    £6,000 or more but less than £8,500… … … … … …£1,400£940
    £8,500 or more but not more than £19,250… … … … …£2,200£1,450

    TABLE C
    Cars with an original market value of more than £19,250
    Original market value of carAge of car at end of relevant year of assessment
    Under 4 years4 years or more
    More than £19,250 but not more than £29,000£2,900£1,940
    More than £29,000… … … … … … … … …£4,600£3,060

    (2) This Resolution shall not require any change to be made in the amounts deductible or repayable under section 203 of the Income and Corporation Taxes Act 1988 (pay as you earn) before 15th June 1988.

    And it is hereby 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.— [Mr. Lawson.]

    22 Woodlands

    Resolved,

    That provision may be made about the commercial occupation of woodlands.—[Mr. Lawson.]

    23 Business Expansion Scheme

    Question put,

    That provision may be made amending Chapter III of Part VII of the Income and Corporation Taxes Act 1988 and the corresponding enactments repealed by that Act. —[Mr. Lawson.]

    The House divided: Ayes 335, Noes 218.

    Division No. 221]

    [10.54 pm

    AYES

    Adley, RobertBatiste, Spencer
    Aitken, JonathanBeaumont-Dark, Anthony
    Alexander, RichardBellingham, Henry
    Alison, Rt Hon MichaelBendall, Vivian
    Allason, RupertBennett, Nicholas (Pembroke)
    Amess, DavidBenyon, W.
    Amos, AlanBevan, David Gilroy
    Arbuthnot, JamesBiffen, Rt Hon John
    Arnold, Jacques (Gravesham)Biggs-Davison, Sir John
    Arnold, Tom (Hazel Grove)Blackburn, Dr John G.
    Ashby, DavidBlaker, Rt Hon Sir Peter
    Aspinwall, JackBonsor, Sir Nicholas
    Atkins, RobertBoscawen, Hon Robert
    Baker, Rt Hon K. (Mole Valley)Bottomley, Peter
    Baker, Nicholas (Dorset N)Bottomley, Mrs Virginia
    Baldry, TonyBowden, A (Brighton K'pto'n)
    Banks, Robert (Harrogate)Bowden, Gerald (Dulwich)

    Bowis, JohnCope, John
    Boyson, Rt Hon Dr Sir RhodesCormack, Patrick
    Brandon-Bravo, MartinCran, James
    Brazier, JulianCritchley, Julian
    Bright, GrahamCurrie, Mrs Edwina
    Brittan, Rt Hon LeonDavies, Q. (Stamf'd & Spald'g)
    Brooke, Rt Hon PeterDavis, David (Boothferry)
    Brown, Michael (Brigg & Cl't's)Day, Stephen
    Browne, John (Winchester)Devlin, Tim
    Bruce, Ian (Dorset South)Dickens, Geoffrey
    Buchanan-Smith, Rt Hon AlickDorrell, Stephen
    Buck, Sir AntonyDouglas-Hamilton, Lord James
    Budgen, NicholasDover, Den
    Burns, SimonDunn, Bob
    Burt, AlistairDurant, Tony
    Butcher, JohnEggar, Tim
    Butler, ChrisEmery, Sir Peter
    Butterfill, JohnEvans, David (Welwyn Hatf'd)
    Carlisle, John, (Luton N)Evennett, David
    Carlisle, Kenneth (Lincoln)Fairbairn, Nicholas
    Carrington, MatthewFallon, Michael
    Carttiss, MichaelFarr, Sir John
    Cash, WilliamFavell, Tony
    Channon, Rt Hon PaulFenner, Dame Peggy
    Chapman, SydneyField, Barry (Isle of Wight)
    Chope, ChristopherFookes, Miss Janet
    Churchill, MrForman, Nigel
    Clark, Hon Alan (Plym'th S'n)Forsyth, Michael (Stirling)
    Clark, Dr Michael (Rochford)Forth, Eric
    Clark, Sir W. (Croydon S)Fowler, Rt Hon Norman
    Clarke, Rt Hon K. (Rushcliffe)Franks, Cecil
    Colvin, MichaelFreeman, Roger
    Conway, DerekFrench, Douglas
    Coombs, Anthony (Wyre F'rest)Fry, Peter
    Coombs, Simon (Swindon)Gale, Roger

    Gardiner, GeorgeLilley, Peter
    Garel-Jones, TristanLloyd, Sir Ian (Havant)
    Gill, ChristopherLord, Michael
    Gilmour, Rt Hon Sir IanLuce, Rt Hon Richard
    Glyn, Dr AlanLyell, Sir Nicholas
    Goodhart, Sir PhilipMcCrindle, Robert
    Goodlad, AlastairMacfarlane, Sir Neil
    Goodson-Wickes, Dr CharlesMacGregor, Rt Hon John
    Gorman, Mrs TeresaMacKay, Andrew (E Berkshire)
    Gorst, JohnMaclean, David
    Gow, IanMcLoughlin, Patrick
    Gower, Sir RaymondMcNair-Wilson, M. (Newbury)
    Grant, Sir Anthony (CambsSW)McNair-Wilson, P. (New Forest)
    Greenway, Harry (Ealing N)Madel, David
    Greenway, John (Ryedale)Major, Rt Hon John
    Gregory, ConalMalins, Humfrey
    Griffiths, Sir Eldon (Bury St E')Mans, Keith
    Griffiths, Peter (Portsmouth N)Maples, John
    Grist, IanMarland, Paul
    Ground, PatrickMarshall, John (Hendon S)
    Grylls, MichaelMarshall, Michael (Arundel)
    Hamilton, Hon Archie (Epsom)Martin, David (Portsmouth S)
    Hamilton, Neil (Tatton)Mates, Michael
    Hampson, Dr KeithMaude, Hon Francis
    Hanley, JeremyMaxwell-Hyslop, Robin
    Hannam, JohnMayhew, Rt Hon Sir Patrick
    Hargreaves, A. (B'ham H'll Gr')Mellor, David
    Hargreaves, Ken (Hyndburn)Meyer, Sir Anthony
    Harris, DavidMiller, Hal
    Hawkins, ChristopherMills, Iain
    Hayes, JerryMiscampbell, Norman
    Hayhoe, Rt Hon Sir BarneyMitchell, Andrew (Gedling)
    Hayward, RobertMitchell, David (Hants NW)
    Heath, Rt Hon EdwardMoate, Roger
    Heathcoat-Amory, DavidMonro, Sir Hector
    Heddle, JohnMontgomery, Sir Fergus
    Heseltine, Rt Hon MichaelMoore, Rt Hon John
    Hicks, Mrs Maureen (Wolv' NE)Morris, M (N'hampton S)
    Higgins, Rt Hon Terence L.Morrison, Hon Sir Charles
    Hind, KennethMoss, Malcolm
    Hogg, Hon Douglas (Gr'th'm)Moynihan, Hon Colin
    Holt, RichardNeale, Gerrard
    Hordern, Sir PeterNeedham, Richard
    Howard, MichaelNelson, Anthony
    Howarth, Alan (Strat'd-on-A)Neubert, Michael
    Howarth, G. (Cannock & B'wd)Newton, Rt Hon Tony
    Howell, Ralph (North Norfolk)Nicholson, David (Taunton)
    Hughes, Robert G. (Harrow W)Nicholson, Emma (Devon West)
    Hunt, David (Wirral W)Onslow, Rt Hon Cranley
    Hunt, John (Ravensbourne)Oppenheim, Phillip
    Hunter, AndrewPage, Richard
    Hurd, Rt Hon DouglasPaice, James
    Irvine, MichaelParkinson, Rt Hon Cecil
    Irving, CharlesPatnick, Irvine
    Jack, MichaelPatten, John (Oxford W)
    Jackson, RobertPattie, Rt Hon Sir Geoffrey
    Janman, TimPawsey, James
    Jessel, TobyPeacock, Mrs Elizabeth
    Johnson Smith, Sir GeoffreyPorter, Barry (Wirral S)
    Jones, Gwilym (Cardiff N)Porter, David (Waveney)
    Jones, Robert B (Herts W)Portillo, Michael
    Jopling, Rt Hon MichaelPowell, William (Corby)
    Kellett-Bowman, Dame ElainePrice, Sir David
    Kilfedder, JamesRaffan, Keith
    King, Roger (B'ham N'thfield)Raison, Rt Hon Timothy
    Kirkhope, TimothyRathbone, Tim
    Knapman, RogerRedwood, John
    Knight, Greg (Derby North)Renton, Tim
    Knight, Dame Jill (Edgbaston)Rhodes James, Robert
    Knowles, MichaelRhys Williams, Sir Brandon
    Knox, DavidRiddick, Graham
    Lamont, Rt Hon NormanRidley, Rt Hon Nicholas
    Lang, IanRidsdale, Sir Julian
    Latham, MichaelRoberts, Wyn (Conwy)
    Lawrence, IvanRoe, Mrs Marion
    Lawson, Rt Hon NigelRossi, Sir Hugh
    Lee, John (Pendle)Rost, Peter
    Leigh, Edward (Gainsbor'gh)Rowe, Andrew
    Lester, Jim (Broxtowe)Rumbold, Mrs Angela
    Lightbown, DavidRyder, Richard

    Sackville, Hon TomThompson, Patrick (Norwich N)
    Sainsbury, Hon TimThorne, Neil
    Sayeed, JonathanThornton, Malcolm
    Scott, NicholasThurnham, Peter
    Shaw, David (Dover)Townend, John (Bridlington)
    Shaw, Sir Giles (Pudsey)Townsend, Cyril D. (B'heath)
    Shaw, Sir Michael (Scarb')Tracey, Richard
    Shelton, William (Streatham)Tredinnick, David
    Shephard, Mrs G. (Norfolk SW)Trippier, David
    Shepherd, Colin (Hereford)Trotter, Neville
    Shepherd, Richard (Aldridge)Twinn, Dr Ian
    Shersby, MichaelVaughan, Sir Gerard
    Sims, RogerWaddington, Rt Hon David
    Skeet, Sir TrevorWakeham, Rt Hon John
    Smith, Tim (Beaconsfield)Waldegrave, Hon William
    Soames, Hon NicholasWalden, George
    Speed, KeithWalker, Bill (T'side North)
    Speller, TonyWaller, Gary
    Spicer, Sir Jim (Dorset W)Walters, Dennis
    Spicer, Michael (S Worcs)Ward, John
    Squire, RobinWardle, Charles (Bexhill)
    Stanbrook, IvorWarren, Kenneth
    Steen, AnthonyWatts, John
    Stern, MichaelWheeler, John
    Stevens, LewisWhitney, Ray
    Stewart, Allan (Eastwood)Widdecombe, Ann
    Stewart, Andy (Sherwood)Wilkinson, John
    Stewart, Ian (Hertfordshire N)Wilshire, David
    Stokes, JohnWolfson, Mark
    Stradling Thomas, Sir JohnWood, Timothy
    Sumberg, DavidWoodcock, Mike
    Tapsell, Sir PeterYeo, Tim
    Taylor, Ian (Esher)Young, Sir George (Acton)
    Taylor, John M (Solihull)
    Tebbit, Rt Hon NormanTellers for the Ayes:
    Temple-Morris, PeterMr. Mark Lennox-Boyd and
    Thatcher, Rt Hon MargaretMr. Peter Lloyd.
    Thompson, D. (Calder Valley)

    NOES

    Abbott, Ms DianeCohen, Harry
    Adams, Allen (Paisley N)Coleman, Donald
    Allen, GrahamCook, Frank (Stockton N)
    Alton, DavidCook, Robin (Livingston)
    Archer, Rt Hon PeterCorbyn, Jeremy
    Armstrong, HilaryCousins, Jim
    Ashdown, PaddyCox, Tom
    Ashley, Rt Hon JackCrowther, Stan
    Ashton, JoeCryer, Bob
    Banks, Tony (Newham NW)Cummings, John
    Barnes, Harry (Derbyshire NE)Cunliffe, Lawrence
    Barron, KevinCunningham, Dr John
    Battle, JohnDalyell, Tam
    Beckett, MargaretDarling, Alistair
    Beith, A. J.Davies, Ron (Caerphilly)
    Bell, StuartDavis, Terry (B'ham Hodge H'I
    Benn, Rt Hon TonyDewar, Donald
    Bennett, A. F. (D'nt'n &ish)Dixon, Don
    Bermingham, GeraldDobson, Frank
    Bidwell, SydneyDoran, Frank
    Blair, TonyDouglas, Dick
    Boyes, RolandDuffy, A. E. P.
    Bradley, KeithDunnachie, Jimmy
    Bray, Dr JeremyDunwoody, Hon Mrs Gwyneth
    Brown, Gordon (D'mline E)Eadie, Alexander
    Brown, Nicholas (Newcastle E)Eastham, Ken
    Bruce, Malcolm (Gordon)Evans, John (St Helens N)
    Buchan, NormanEwing, Harry (Falkirk E)
    Caborn, RichardEwing, Mrs Margaret (Moray)
    Callaghan, JimFatchett, Derek
    Campbell, Menzies (Fife NE)Faulds, Andrew
    Campbell, Ron (Blyth Valley)Fearn, Ronald
    Campbell-Savours, D. N.Field, Frank (Birkenhead)
    Canavan, DennisFields, Terry (L'pool B G'n)
    Carlile, Alex (Mont'g)Fisher, Mark
    Clark, Dr David (S Shields)Flannery, Martin
    Clarke, Tom (Monklands W)Flynn, Paul
    Clay, BobFoot, Rt Hon Michael
    Clelland, DavidFoster, Derek
    Clwyd, Mrs AnnFoulkes, George

    Fraser, JohnMichie, Mrs Ray (Arg'l & Bute)
    Galbraith, SamMillan, Rt Hon Bruce
    Galloway, GeorgeMitchell, Austin (G't Grimsby)
    Garrett, John (Norwich South)Moonie, Dr Lewis
    George, BruceMorgan, Rhodri
    Gilbert, Rt Hon Dr JohnMorris, Rt Hon J. (Aberavon)
    Godman, Dr Norman A.Mowlam, Marjorie
    Golding, Mrs LlinMullin, Chris
    Gordon, MildredMurphy, Paul
    Gould, BryanNellist, Dave
    Grant, Bernie (Tottenham)Oakes, Rt Hon Gordon
    Griffiths, Nigel (Edinburgh S)O'Neill, Martin
    Griffiths, Win (Bridgend)Orme, Rt Hon Stanley
    Grocott, BruceParry, Robert
    Hattersley, Rt Hon RoyPatchett, Terry
    Healey, Rt Hon DenisPendry, Tom
    Heffer, Eric S.Pike, Peter L.
    Henderson, DougPrescott, John
    Hinchliffe, DavidPrimarolo, Dawn
    Hogg, N. (C'nauld & Kilsyth)Quin, Ms Joyce
    Holland, StuartRandall, Stuart
    Home Robertson, JohnRedmond, Martin
    Howarth, George (Knowsley N)Rees, Rt Hon Merlyn
    Howell, Rt Hon D. (S'heath)Reid, Dr John
    Howells, GeraintRichardson, Jo
    Hoyle, DougRobertson, George
    Hughes, John (Coventry NE)Robinson, Geoffrey
    Hughes, Robert (Aberdeen N)Rogers, Allan
    Hughes, Roy (Newport E)Rooker, Jeff
    Hughes, Sean (Knowsley S)Ross, Ernie (Dundee W)
    Hughes, Simon (Southwark)Rowlands, Ted
    Hume, JohnRuddock, Joan
    Illsley, EricSedgemore, Brian
    Ingram, AdamSheerman, Barry
    Janner, GrevilleSheldon, Rt Hon Robert
    John, BrynmorShore, Rt Hon Peter
    Jones, Barry (Alyn & Deeside)Short, Clare
    Jones, leuan (Ynys Môn)Skinner, Dennis
    Kaufman, Rt Hon GeraldSmith, Andrew (Oxford E)
    Kennedy, CharlesSmith, C. (Isl'ton & F'bury)
    Kinnock, Rt Hon NeilSmith, Cyril (Rochdale)
    Kirkwood, ArchySmith, Rt Hon J. (Monk'ds E)
    Leadbitter, TedSnape, Peter
    Leighton, RonSoley, Clive
    Lestor, Joan (Eccles)Steel, Rt Hon David
    Lewis, TerryStott, Roger
    Livingstone, KenStrang, Gavin
    Livsey, RichardStraw, Jack
    Lloyd, Tony (Stretford)Taylor, Mrs Ann (Dewsbury)
    Lofthouse, GeoffreyTaylor, Matthew (Truro)
    McAllion, JohnThomas, Dr Dafydd Elis
    McAvoy, ThomasTurner, Dennis
    McCartney, IanVaz, Keith
    Macdonald, Calum A.Wall, Pat
    McFall, JohnWalley, Joan
    McGrady, EddieWarden, Gareth (Gower)
    McKay, Allen (Barnsley West)Wareing, Robert N.
    McKelvey, WilliamWelsh, Andrew (Angus E)
    McLeish, HenryWelsh, Michael (Doncaster N)
    McNamara, KevinWigley, Dafydd
    McTaggart, BobWilliams, Rt Hon Alan
    McWilliam, JohnWilliams, Alan W. (Carm'then)
    Madden, MaxWilson, Brian
    Mahon, Mrs AliceWinnick, David
    Marek, Dr JohnWise, Mrs Audrey
    Marshall, David (Shettleston)Worthington, Tony
    Marshall, Jim (Leicester S)Young, David (Bolton SE)
    Martin, Michael J. (Springburn)
    Maxton, JohnTellers for the Noes:
    Meacher, MichaelMr. Frank Haynes and
    Michie, Bill (Sheffield Heeley)Mr. Ray Powell.

    Question accordingly agreed to.

    With the leave of the House, I shall put together motions Nos. 24 to 34.

    24 Payments On Termina'rion Of Employment, Etc

    Resolved,

    That provision may be made abolishing relief under paragraphs 4 to 7 of Schedule 11 to the Income and Corporation Taxes Act 1988.—[Mr. Lawson.]

    25 Oil Licences

    Resolved,

    That provision may he made with respect to the application of—
  • (a) the Capital Gains Tax Act 1979 and any enactment which falls to be construed as one with that Act,
  • (b) certain provisions of the Capital Allowances Act 1968, and
  • (c) section 55 of and Schedules 13 and 14 to the Finance Act 1986 (capital allowances in respect of mineral extraction),
  • in relation to certain disposals (including part disposals) of licences under the Petroleum (Production) Act 1934 and the Petroleum (Production) Act (Northern Ireland) 1964, being disposals occurring before as well as after the passing of this Resolution.—[Mr. Lawson.]

    26 Company Residence And Migration

    Resolved,

    That charges to corporation tax may be imposed by provisions for determining whet her or not a company is to be regarded as resident in the United Kingdom, and provisions relating to companies ceasing to be resident there.—[Mr. Lawson.]

    27 Charities

    Resolved,

    That, for the year 1988–89 and subsequent years of assessment, section 202(7) of the Income and Corporation Taxes Act 1988 (which limits to £120 the deductions attracting relief) shall have effect with the substitution of "£240" for "£120".
    And it is hereby 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.—[Mr. Lawson.]

    28 Entertainment Expenses

    Resolved,

    That provision may be made repealing section 577(2) of the Income and Corporation Taxes Act 1988. —[Mr. Lawson.]

    29 Premiums For Leases, Etc

    Resolved,

    That provision may be made abolishing relief under Schedule 2 to the Income and Corporation Taxes Act 1988. —[Mr. Lawson.]

    30 Underwriters

    Resolved,

    That provision (including provision for the years of assessment 1985–86, 1986–87 and 1987–88) may be made about underwriters.—[Mr. Lawson.]

    31 Foreign Public Revenue Dividends

    Resolved,

    That provision may be made about dividends payable out of any public revenue, within the meaning of Part III of the Income and Corporation Taxes Act 1988, other than the public revenue of the United Kingdom.—[Mr. Lawson.]

    32 Employee Share Acquisitions

    Resolved,

    That provision (including provision having retrospective effect) may be made about the acquisition of shares or interests in shares by directors or employees (or prospective or former directors or employees).—[Mr. Lawson.]

    33 Capital Allowances

    Resolved,

    That provision may be made with respect to allowances under the Capital Allowances Act 1968 or Chapter I of Part III of the Finance Act 1971.—[Mr. Lawson.]

    34 Capital Gains Tax (Rates)

    Resolved,

    That provision may be made about the rates at which capital gains tax is chargeable and for related purposes.—[Mr. Lawson.]

    35 Capital Gains (Assets Held On 31St March 1982)

    Question put,

    That provision may be made as to the taxation of capital gains and losses on the disposal of assets acquired on or before 31st March 1982, and as to related matters.—[Mr. Lawson.]

    The House divided: Ayes 358, Noes 191.

    Division No. 222]

    [11.06 pm

    AYES

    Adley, RobertBruce, Ian (Dorset South)
    Aitken, JonathanBruce, Malcolm (Gordon)
    Alexander, RichardBuchanan-Smith, Rt Hon Alick
    Alison, Rt Hon MichaelBuck, Sir Antony
    Allason, RupertBudgen, Nicholas
    Alton, DavidBurns, Simon
    Amess, DavidBurt, Alistair
    Amos, AlanButcher, John
    Arbuthnot, JamesButler, Chris
    Arnold, Jacques (Gravesham)Butterfill, John
    Arnold, Tom (Hazel Grove)Campbell, Menzies (Fife NE)
    Ashby, DavidCarlile, Alex (Mont'g)
    Ashdown, PaddyCarlisle, John, (Luton N)
    Aspinwall, JackCarlisle, Kenneth (Lincoln)
    Atkins, RobertCarrington, Matthew
    Baker, Rt Hon K. (Mole Valley)Carttiss, Michael
    Baker, Nicholas (Dorset N)Cash, William
    Baldry, TonyChannon, Rt Hon Paul
    Banks, Robert (Harrogate)Chapman, Sydney
    Batiste, SpencerChope, Christopher
    Beaumont-Dark, AnthonyChurchill, Mr
    Beggs, RoyClark, Hon Alan (Plym'th S'n)
    Beith, A. J.Clark, Dr Michael (Rochford)
    Bellingham, HenryClark, Sir W. (Croydon S)
    Bendall, VivianClarke, Rt Hon K. (Rushcliffe)
    Bennett, Nicholas (Pembroke)Colvin, Michael
    Benyon, W.Conway, Derek
    Bevan, David GilroyCoombs, Anthony (Wyre F'rest)
    Biffen, Rt Hon JohnCoombs, Simon (Swindon)
    Biggs-Davison, Sir JohnCope, John
    Blackburn, Dr John G.Cormack, Patrick
    Blaker, Rt Hon Sir PeterCran, James
    Bonsor, Sir NicholasCritchley, Julian
    Boscawen, Hon RobertCurrie, Mrs Edwina
    Bottomley, PeterDavies, Q. (Stamf'd & Spald'g)
    Bottomley, Mrs VirginiaDavis, David (Boothferry)
    Bowden, A (Brighton K'pto'n)Day, Stephen
    Bowden, Gerald (Dulwich)Devlin, Tim
    Bowis, JohnDickens, Geoffrey
    Boyson, Rt Hon Dr Sir RhodesDorrell, Stephen
    Brandon-Bravo, MartinDouglas-Hamilton, Lord James
    Brazier, JulianDover, Den
    Bright, GrahamDunn, Bob
    Brittan, Rt Hon LeonDurant, Tony
    Brooke, Rt Hon PeterEggar, Tim
    Brown, Michael (Brigg & Cl't's)Emery, Sir Peter
    Browne, John (Winchester)Evans, David (Welwyn Hatf'd)

    Evennett, DavidJones, Gwilym (Cardiff N)
    Fairbairn, NicholasJones, Robert B (Herts W)
    Fallon, MichaelJopling, Rt Hon Michael
    Farr, Sir JohnKellett-Bowman, Dame Elaine
    Favell, TonyKennedy, Charles
    Fearn, RonaldKilfedder, James
    Fenner, Dame PeggyKing, Roger (B'ham N'thfield)
    Field, Barry (Isle of Wight)Kirkhope, Timothy
    Fookes, Miss JanetKirkwood, Archy
    Forman, NigelKnapman, Roger
    Forsyth, Michael (Stirling)Knight, Greg (Derby North)
    Forsythe, Clifford (Antrim S)Knight, Dame Jill (Edgbaston)
    Forth, EricKnowles, Michael
    Fowler, Rt Hon NormanKnox, David
    Franks, CecilLamont, Rt Hon Norman
    Freeman, RogerLang, Ian
    French, DouglasLatham, Michael
    Fry, PeterLawrence, Ivan
    Gale, RogerLawson, Rt Hon Nigel
    Gardiner, GeorgeLee, John (Pendle)
    Garel-Jones, TristanLeigh, Edward (Gainsbor'gh)
    Gill, ChristopherLester, Jim (Broxtowe)
    Gilmour, Rt Hon Sir IanLightbown, David
    Glyn, Dr AlanLilley, Peter
    Goodhart, Sir PhilipLivsey, Richard
    Goodlad, AlastairLloyd, Sir Ian (Havant)
    Goodson-Wickes, Dr CharlesLord, Michael
    Gorman, Mrs TeresaLuce, Rt Hon Richard
    Gorst, JohnLyell, Sir Nicholas
    Gow, IanMcCrindle, Robert
    Gower, Sir RaymondMacfarlane, Sir Neil
    Grant, Sir Anthony (CambsSW)MacGregor, Rt Hon John
    Greenway, Harry (Ealing N)MacKay, Andrew (E Berkshire)
    Greenway, John (Ryedale)Maclean, David
    Gregory, ConalMcLoughlin, Patrick
    Griffiths, Sir Eldon (Bury St E')McNair-Wilson, M. (Newbury)
    Griffiths, Peter (Portsmouth N)McNair-Wilson, P. (New Forest)
    Grist, IanMadel, David
    Ground, PatrickMaginnis, Ken
    Grylls, MichaelMajor, Rt Hon John
    Hamilton, Hon Archie (Epsom)Malins, Humfrey
    Hamilton, Neil (Tatton)Mans, Keith
    Hampson, Dr KeithMaples, John
    Hanley, JeremyMarland, Paul
    Hannam, JohnMarshall, John (Hendon S)
    Hargreaves, A. (B'ham H'll Gr')Marshall, Michael (Arundel)
    Hargreaves, Ken (Hyndburn)Martin, David (Portsmouth S)
    Harris, DavidMates, Michael
    Hawkins, ChristopherMaude, Hon Francis
    Hayes, JerryMaxwell-Hyslop, Robin
    Hayhoe, Rt Hon Sir BarneyMayhew, Rt Hon Sir Patrick
    Hayward, RobertMellor, David
    Heath, Rt Hon EdwardMeyer, Sir Anthony
    Heathcoat-Amory, DavidMichie, Mrs Ray (Arg'l & Bute)
    Heddle, JohnMiller, Hal
    Heseltine, Rt Hon MichaelMills, Iain
    Hicks, Mrs Maureen (Wolv' NE)Miscampbell, Norman
    Higgins, Rt Hon Terence L.Mitchell, Andrew (Gedling)
    Hind, KennethMitchell, David (Hants NW)
    Hogg, Hon Douglas (Gr'th'm)Moate, Roger
    Holt, RichardMolyneaux, Rt Hon James
    Hordern, Sir PeterMonro, Sir Hector
    Howard, MichaelMontgomery, Sir Fergus
    Howarth, Alan (Strat'd-on-A)Moore, Rt Hon John
    Howarth, G. (Cannock & B'wd)Morris, M (N'hampton S)
    Howell, Ralph (North Norfolk)Morrison, Hon Sir Charles
    Howells, GeraintMoss, Malcolm
    Hughes, Robert G. (Harrow W)Moynihan, Hon Colin
    Hughes, Simon (Southwark)Neale, Gerrard
    Hunt, David (Wirral W)Needham, Richard
    Hunt, John (Ravensbourne)Nelson, Anthony
    Hunter, AndrewNeubert, Michael
    Hurd, Rt Hon DouglasNewton, Rt Hon Tony
    Irvine, MichaelNicholson, David (Taunton)
    Irving, CharlesNicholson, Emma (Devon West)
    Jack, MichaelOnslow, Rt Hon Cranley
    Jackson, RobertOppenheim, Phillip
    Janman, TimPage, Richard
    Jessel, TobyPaice, James
    Johnson Smith, Sir GeoffreyParkinson, Rt Hon Cecil

    Patnick, IrvineStern, Michael
    Patten, John (Oxford W)Stevens, Lewis
    Pattie, Rt Hon Sir GeoffreyStewart, Allan (Eastwood)
    Pawsey, JamesStewart, Andy (Sherwood)
    Peacock, Mrs ElizabethStewart, Ian (Hertfordshire N)
    Porter, Barry (Wirral S)Stokes, John
    Porter, David (Waveney)Stradling Thomas, Sir John
    Portillo, MichaelSumberg, David
    Powell, William (Corby)Tapsell, Sir Peter
    Price, Sir DavidTaylor, Ian (Esher)
    Raffan, KeithTaylor, John M (Solihull)
    Raison, Rt Hon TimothyTaylor, Matthew (Truro)
    Rathbone, TimTebbit, Rt Hon Norman
    Redwood, JohnTemple-Morris, Peter
    Renton, TimThatcher, Rt Hon Margaret
    Rhodes James, RobertThompson, D. (Calder Valley)
    Rhys Williams, Sir BrandonThompson, Patrick (Norwich N)
    Riddick, GrahamThorne, Neil
    Ridley, Rt Hon NicholasThornton, Malcolm
    Ridsdale, Sir JulianThurnham, Peter
    Roberts, Wyn (Conwy)Townend, John (Bridlington)
    Roe, Mrs MarionTownsend, Cyril D. (B'heath)
    Ross, William (Londonderry E)Tracey, Richard
    Rossi, Sir HughTredinnick, David
    Rost, PeterTrippier, David
    Rowe, AndrewTrotter, Neville
    Rumbold, Mrs AngelaTwinn, Dr Ian
    Ryder, RichardVaughan, Sir Gerard
    Sackville, Hon TomWaddington, Rt Hon David
    Sainsbury, Hon TimWakeham, Rt Hon John
    Sayeed, JonathanWaldegrave, Hon William
    Scott, NicholasWalden, George
    Shaw, David (Dover)Walker, A. Cecil (Belfast N)
    Shaw, Sir Giles (Pudsey)Walker, Bill (T'side North)
    Shaw, Sir Michael (Scarb')Waller, Gary
    Shelton, William (Streatham)Walters, Dennis
    Shephard, Mrs G. (Norfolk SW)Ward, John
    Shepherd, Colin (Hereford)Wardle, Charles (Bexhill)
    Shepherd, Richard (Aldridge)Warren, Kenneth
    Shersby, MichaelWatts, John
    Sims, RogerWheeler, John
    Skeet, Sir TrevorWhitney, Ray
    Smith, Cyril (Rochdale)Widdecombe, Ann
    Smith, Tim (Beaconsfield)Wilkinson, John
    Smyth, Rev Martin (Belfast S)Wilshire, David
    Soames, Hon NicholasWolfson, Mark
    Speed, KeithWood, Timothy
    Speller, TonyWoodcock, Mike
    Spicer, Sir Jim (Dorset W)Yeo, Tim
    Spicer, Michael (S Worcs)Young, Sir George (Acton)
    Squire, Robin
    Stanbrook, IvorTellers for the Ayes:
    Steel, Rt Hon DavidMr. Mark Lennox-Boyd and
    Steen, AnthonyMr. Peter Lloyd.

    NOES

    Abbott, Ms DianeCaborn, Richard
    Adams, Allen (Paisley N)Callaghan, Jim
    Allen, GrahamCampbell, Ron (Blyth Valley)
    Archer, Rt Hon PeterCampbell-Savours, D. N.
    Armstrong, HilaryCanavan, Dennis
    Ashley, Rt Hon JackClark, Dr David (S Shields)
    Ashton, JoeClarke, Tom (Monklands W)
    Banks, Tony (Newham NW)Clay, Bob
    Barnes, Harry (Derbyshire NE)Clelland, David
    Barron, KevinClwyd, Mrs Ann
    Battle, JohnCohen, Harry
    Beckett, MargaretColeman, Donald
    Bell, StuartCook, Frank (Stockton N)
    Benn, Rt Hon TonyCook, Robin (Livingston)
    Bennett, A. F. (D'nt'n & R'dish)Corbyn, Jeremy
    Bermingham, GeraldCousins, Jim
    Bidwell, SydneyCox, Tom
    Blair, TonyCrowther, Stan
    Boyes, RolandCryer, Bob
    Bradley, KeithCummings, John
    Bray, Dr JeremyCunliffe, Lawrence
    Brown, Gordon (D'mline E)Cunningham, Dr John
    Brown, Nicholas (Newcastle E)Dalyell, Tam
    Buchan, NormanDarling, Alistair

    Davies, Ron (Caerphilly)McTaggart, Bob
    Davis, Terry (B'ham Hodge H'I)McWilliam, John
    Dewar, DonaldMadden, Max
    Dixon, DonMahon, Mrs Alice
    Dobson, FrankMarek, Dr John
    Doran, FrankMarshall, David (Shettleston)
    Douglas, DickMarshall, Jim (Leicester S)
    Duffy, A. E. P.Martin, Michael J. (Springburn)
    Dunnachie, JimmyMaxton, John
    Eadie, AlexanderMeacher, Michael
    Eastham, KenMichie, Bill (Sheffield Heeley)
    Evans, John (St Helens N)Millan, Rt Hon Bruce
    Ewing, Harry (Falkirk E)Mitchell, Austin (G't Grimsby)
    Fatchett, DerekMoonie, Dr Lewis
    Faulds, AndrewMorgan, Rhodri
    Field, Frank (Birkenhead)Morris, Rt Hon J. (Aberavon)
    Fields, Terry (L'pool B G'n)Mowlam, Marjorie
    Fisher, MarkMullin, Chris
    Flannery, MartinMurphy, Paul
    Flynn, PaulNellist, Dave
    Foot, Rt Hon MichaelOakes, Rt Hon Gordon
    Foster, DerekO'Neill, Martin
    Foulkes, GeorgeOrme, Rt Hon Stanley
    Fraser, JohnParry, Robert
    Galbraith, SamPatchett, Terry
    Galloway, GeorgePendry, Tom
    Garrett, John (Norwich South)Pike, Peter L.
    George, BrucePrescott, John
    Gilbert, Rt Hon Dr JohnPrimarolo, Dawn
    Godman, Dr Norman A.Quin, Ms Joyce
    Golding, Mrs LlinRandall, Stuart
    Gordon, MildredRedmond, Martin
    Gould, BryanFlees, Rt Hon Merlyn
    Grant, Bernie (Tottenham)Reid, Dr John
    Griffiths, Nigel (Edinburgh S)Richardson, Jo
    Griffiths, Win (Bridgend)Robertson, George
    Grocott, BruceRobinson, Geoffrey
    Hattersley, Rt Hon RoyRogers, Allan
    Healey, Rt Hon DenisRooker, Jeff
    Heffer, Eric S.Ross, Ernie (Dundee W)
    Henderson, DougRowlands, Ted
    Hinchliffe, DavidRuddock, Joan
    Hogg, N. (C'nauld & Kilsyth)Sedgemore, Brian
    Holland, StuartSheerman, Barry
    Home Robertson, JohnSheldon, Rt Hon Robert
    Howarth, George (Knowsley N)Shore, Rt Hon Peter
    Howell, Rt Hon D. (S'heath)Short, Clare
    Hoyle, DougSkinner, Dennis
    Hughes, John (Coventry NE)Smith, Andrew (Oxford E)
    Hughes, Robert (Aberdeen N)Smith, C. (Isl'ton & F'bury)
    Hughes, Roy (Newport E)Smith, Rt Hon J. (Monk'ds E)
    Hughes, Sean (Knowsley S)Snape, Peter
    Illsley, EricSoley, Clive
    Ingram, AdamStott, Roger
    Janner, GrevilleStrang, Gavin
    John, BrynmorStraw, Jack
    Jones, Barry (Alyn & Deeside)Taylor, Mrs Ann (Dewsbury)
    Kaufman, Rt Hon GeraldTurner, Dennis
    Kinnock, Rt Hon NeilWall, Pat
    Leadbitter, TedWalley, Joan
    Leighton, RonWardell, Gareth (Gower)
    Lestor, Joan (Eccles)Wareing, Robert N.
    Lewis, TerryWelsh, Michael (Doncaster N)
    Livingstone, KenWilliams, Rt Hon Alan
    Lloyd, Tony (Stretford)Williams, Alan W. (Carm'then)
    Lofthouse, GeoffreyWilson, Brian
    McAllion, JohnWinnick, David
    McAvoy, ThomasWise, Mrs Audrey
    McCartney, IanWorthington, Tony
    Macdonald, Calum A.Young, David (Bolton SE)
    McFall, John
    McKay, Allen (Barnsley West)Tellers for the Noes:
    McKelvey, WilliamMr. Frank Haynes and
    McLeish, HenryMr. Ray Powell.
    McNamara, Kevin

    Question accordingly agreed to.

    36 Capital Gains (Married Couples)

    Resolved,

    That provision may be made about chargeable gains of husbands and wives.—[Mr. Lawson.]

    37 Capital Gains (Annual Exempt Amount)

    Resolved,

    That provision may be made as to the operation of section 5 of the Capital Gains Tax Act 1979 for the year 1988–89.[Mr. Lawson.]

    38 Capital Gains (Dependent Relative's Residence)

    Resolved,

    That provision may be made removing the relief given by section 105 of the Capital Gains Tax Act 1979. —[Mr. Lawson.]

    39 Capital Gains (Indexation)

    Resolved,

    That provision (including provision having retrospective effect) may be made removing indexation allowance in the case of shares in building societies and industrial and provident societies and of certain disposals by companies of shares or debts.—[Mr. Lawson.]

    40 Transfers Within A Group

    Resolved,

    That provision may be made excluding certain cases from the operation of section 273 of the Income and Corporation Taxes Act 1970.—[Mr. Lawson.]

    41 Personal Equity Plans

    Resolved,

    That provision may be made enabling regulations under section 149D of the Capital Gains Tax Act 1979 to secure, in relation to disposals on or after 18th January 1988, that losses are in certain circumstances disregarded for the purposes of capital gains tax.—[Mr. Lawson.]

    42 Investment Trusts

    Resolved,

    That provision may be made amending the definition of "investment trust" in the Income and Corporation Taxes Act 1988 and treating section 93(6) of the Finance Act 1972 as not having been repealed.—[Mr. Lawson.]

    43 Assessment Procedure

    Resolved,

    That provision may be made about assessments relating to income arising in the year for which the assessments are made. —[Mr. Lawson.]

    44 Oil Allowance

    Resolved,

    That provision may be made reducing the oil allowance under section 8 of the Oil Taxation Act 1975 in respect of certain oil fields.[Mr. Lawson.]

    45 Stamp Duty (Abolition Of Capital Duty)

    Resolved,

    That the following provisions shall have effect for the period beginning with 22nd March 1988 and ending 31 days after the earliest of the dates mentioned in section 50(2) of the Finance Act 1973—
    (1) The stamp duties chargeable by virtue of section 47 of the Finance Act 1973 and Article 8 of the Finance (Miscellaneous Provisions) (Northern Ireland) Order 1973 (stamp duties on documents relating to chargeable transactions of capital companies) are abolished; and accordingly—
  • (a) that section, section 48 of that Act and Schedule 19 to that Act; and
  • (b) that Article, Article 9 of that Order and Schedule 2 to that Order,
  • shall cease to have effect.

    (2) Paragraph (1) above shall have effect in relation to—

  • (a) any transaction occurring on or after 22nd March 1988;
  • (b) any transaction occurring on or after 16th March 1988 in respect of which the relevant document is not stamped before 22nd March 1988;
  • (c) any exempt transaction occurring before 22nd March 1988 in respect of which a relevant event occurs on or after 22nd March 1988; and
  • (d) any exempt transaction occurring before 16th March 1988 in respect of which a relevant event occurs on or after 16th March 1988 and the relevant duty is not paid before 22nd March 1988.
  • (3) For the purposes of section 14(4) of the Stamp Act 1891 (instruments not to be given in evidence etc. unless stamped in accordance with the law in force at the time of execution), the law in force—

  • (a) in a case falling within paragraph (2)(b) above, at the time of execution of the relevant document; or
  • (b) in a case falling within paragraph (2)(d) above, on the date on which the relevant event occurs,
  • shall be deemed to be that as varied in accordance with this Resolution.

    (4) In this Resolution—

    "exempt transaction" means a transaction which is exempt by virtue of paragraph 10(1) of Schedule 19 to the Finance Act 1973.
    "relevant document" has the meaning given by section 47 of that Act;
    "relevant duty" means the duty payable under paragraph 10(4) of Schedule 19 to that Act;
    "relevant event" means such an event as is mentioned in paragraph 10(3)(a) or (b) of Schedule 19 to that Act;
    and any reference in this paragraph to section 47 of or Schedule 19 to that Act includes a reference to Article 8 of or Schedule 2 to the Finance (Miscellaneous Provisions) (Northern Ireland) Order 1973.
    And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of section 50 of the Finance Act 1973. —[Mr. Lawson.]

    46 Stamp Duty (Abolition Of Unit Trust Instrument Duty)

    Resolved,

    That the following provisions shall have effect for the period beginning with 22nd March 1988 and ending 31 days after the earliest of the dates mentioned in section 50(2) of the Finance Act 1973—
    (1) The stamp duty chargeable by virtue of the heading in Schedule 1 to the Stamp Act 1891 "Unit Trust Instrument" is abolished; and accordingly that heading and the following enactments, namely—
  • (a) section 53 of the Finance Act 1946;
  • (b) section 24 of the Finance (No. 2) Act (Northern Ireland) 1946;
  • (c) section 30 of the Finance Act 1962; and
  • (d) section 3 of the Finance Act (Northern Ireland) 1962,
  • shall cease to have effect.

    (2) Paragraph (1) above shall have effect in relation to—

  • (a) any trust instrument executed on or after 22nd March 1988;
  • (b) any trust instrument executed on or after 16th March 1988 which is not stamped before 22nd March 1988;
  • (c) any property becoming trust property on or after 22nd March 1988; and
  • (d) any property becoming trust property on or after 16th March 1988 in respect of which the trust instrument is not stamped before 22nd March 1988.
  • (3) For the purposes of section 14(4) of the Stamp Act 1891 (instruments not to be given in evidence etc. unless stamped in accordance with the law in force at the time of execution), the law in force—

  • (a) at the time of execution of a trust instrument falling within paragraph (2)(b) above; or
  • (b) on the day on which property falling within
  • paragraph (2)(d) above becomes trust property, shall be deemed to be that as varied in accordance with this Resolution.

    (4) In this Resolution "trust instrument" and "trust property" have the meanings given by section 57 of the Finance Act 1946 or section 28 of the Finance (No. 2) Act (Northern Ireland) 1946.
    And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of section 50 of the Finance Act 1973.—[Mr. Lawson.]

    47 Stamp Duty (Paired Shares)

    Resolved,

    That provision (including provision having retrospective effect) may be made with respect to stamp duty in cases where shares in a company incorporated in the United Kingdom and shares in a company not so incorporated may not be transferred except in units each comprising one share in each company.—[Mr. Lawson.]

    48 Stamp Duty Reserve Tax

    Resolved,

    That charges to stamp duty reserve tax may be imposed by provisions (including provisions having retrospective effect) relating to that tax.—[Mr. Lawson.]

    49 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) which may arise from provisions designed in general to afford relief from tax. — [Mr. Lawson.]

    Procedure (Further Taxation)

    Resolved,

    That, notwithstanding anything to the contrary in the practice of the House relating to matters which 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) provisions about the taxation of persons who are or have been married,
  • (b)provisions about the application of Chapter I of Part VII of the Income and Corporation Taxes Act 1988 to individuals not resident in the United Kingdom,
  • (c)provisions about relief under section 259 of that Act,
  • (d)provisions reducing the percentages specified in sections 266(5)(a) and 274(3)(a) of, and paragraph 3(3)(a) of Schedule 14 to, that Act, and
  • (e)provisions amending the Taxes Management Act 1970.—[Mr. Lawson.]
  • Finance (No 2) Bill Money:

    Queen's Recommendation having been signified

    Resolved,

    That, for the purposes of .any Act resulting from the Finance (No. 2) Bill, it is expedient to authorise the making out of money provided by Parliament of payments to General Commissioners acting for divisions in Northern Ireland and payments to or in respect of clerks and assistant clerks to such Commissioners.—[Mr. Lawson.]

    Ordered,

    That a Bill be brought in upon the foregoing resolutions: And that the Chairman of Ways and Means, Mr. Chancellor of the Exchequer, Mr. Secretary Fowler, Mr. Secretary Ridley, Mr. Kenneth Clarke, 14r. John MacGregor, Mr. Secretary Channon, Mr. Secretary Parkinson, Mr. John Major, Mr. Norman Lamont, Mr. Peter Brooke and Mr. Peter Lilley do prepare and bring it in.

    Finance (No 2) Bill

    Mr. Norman Lamont accordingly presented a Bill to grant certain duties, to alter other duties, and to amend the law relating to the national debt and the public revenue, and to make further provision in connection with finance : And the same was read the First time; and ordered to be read a Second time tomorrow and to be printed. [Bill 127.]

    11.20 pm

    On a point of order, Mr. Speaker. You may not have noticed that just before you called the 10 o'clock Division there was without a shadow of a doubt physical violence inflicted by the Patronage Secretary and the Leader of the House on the Chancellor of the Exchequer. I have not seen such violence in the House since the night on which the right hon. Member for Henley (Mr. Heseltine) ran about with the Mace, threatening to batter everyone over the head. Surely you have some obligation to control these Tory hooligans — [interruption.]—once and for all.