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39. Pension schemes

Volume 526: debated on Tuesday 29 March 2011

Resolved,

That provision may be made in relation to pension schemes.

40. The bank levy

Resolved,

That provision (including provision having retrospective effect) may be made for and in connection with the bank levy.

41. Value added tax (business samples)

Resolved,

That provision may be made amending the Value Added Tax Act 1994 in relation to business samples.

42. Value added tax (splitting of supplies)

Resolved,

That provision may be made about supplies of goods within Group 3 of Schedule 8 to the Value Added Tax Act 1994.

43. Value added tax (Academies)

Resolved,

That provision may be made about refunds of value added tax to proprietors of Academies.

44. Value added tax (imported goods of low value)

Resolved,

That provision may be made restricting the relief from value added tax that is available in respect of imports of consignments of goods not exceeding a certain value.

45. Climate change levy (production of electricity)

Resolved,

That provision may be made for and in connection with the charging of climate change levy on supplies of commodities to be used in producing electricity.

46. Climate change levy (Northern Ireland gas supplies)

Resolved,

That—

(1) In Schedule 6 to the Finance Act 2000 (climate change levy), omit paragraph 11A (exemption for Northern Ireland gas supplies).

(2) Paragraph (3) of this Resolution applies to a supply of gas if—

(a) the supply is made by a gas utility (within the meaning of that Schedule (see paragraph 147)),

(b) the person to whom the supply is made intends to cause the gas to be burned in Northern Ireland, and

(c) the supply is treated as taking place on or after 1 April 2011 but before 1 November 2013.

(3) Paragraph 42 of that Schedule (amount payable by way of levy) has effect as

if—

(a) for sub-paragraphs (1) and (1A) there were substituted—

“(1) The amount payable by way of levy on a taxable supply is—

(a) if the supply is treated as taking place before 1 April 2012, £0.00059 per kilowatt hour, and

(b) if the supply is treated as taking place on or after that date, £0.00062 per kilowatt hour.”, and

(b) in sub-paragraph (3) the reference to a reduced-rate supply were a reference to a supply to which this paragraph applies.

(4) In the Finance Act 2001, omit section 105(2) (which inserted paragraph 11A of that Schedule).

(5) The amendments made by paragraphs (1) and (4) of this Resolution have effect in relation to a supply of gas to a person if the gas is actually supplied to the person on or after 1 April 2011.

(6) Paragraphs (2) and (3) of this Resolution come into force on 1 April 2011.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

47. Climate change levy (supplies used in transport)

Resolved,

That—

(1) The Treasury may by order provide that paragraph 12 of Schedule 6 to the Finance Act 2000 (climate change levy: exemption for supplies used in transport) does not apply in relation to any supply of a taxable commodity which—

(a) is made on or after 1 April 2011, and

(b) is of a description specified in the order.

(2) Any revocation order made under this Resolution may provide for the revocation to have effect in relation to supplies made on or after a day which is earlier than the day on which the revocation order is made.

(3) In this Resolution a “revocation order” is an order revoking the whole or any part of an order containing the provision mentioned in paragraph (1).

(4) The power to make an order under this Resolution, other than a revocation order, may not be exercised after 31 March 2012.

(5) The power to make an order under this Resolution is exercisable by statutory instrument.

(6) A statutory instrument containing an order under this Resolution is subject to annulment in pursuance of a resolution of the House of Commons.

(7) Any reference in this Resolution to the time at which a supply of a taxable commodity is made is to be read as a reference to the time at which the taxable commodity is actually supplied.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

48. Climate change levy (supplies used in recycling processes)

Resolved,

That—

(1) The Treasury may by order provide that Schedule 6 to the Finance Act 2000 (climate change levy) is to have effect in relation to any supply of a taxable commodity made on or after 1 April 2011 as if—

(a) paragraph 18A (exemption: supply for use in recycling processes), and

(b) any reference to that paragraph, were omitted.

(2) An order made under this Resolution may apply—

(a) generally, or

(b) only in relation to supplies of a description specified in the order.

(3) Any revocation order made under this Resolution may provide for the revocation to have effect in relation to supplies made on or after a day which is earlier than the day on which the revocation order is made.

(4) In this Resolution a “revocation order” is an order revoking the whole or any part of an order containing the provision mentioned in paragraph (1).

(5) The power to make an order under this Resolution, other than a revocation order, may not be exercised after 31 March 2012.

(6) The power to make an order under this Resolution is exercisable by statutory instrument.

(7) A statutory instrument containing an order under this Resolution is subject to annulment in pursuance of a resolution of the House of Commons.

(8) Any reference in this Resolution to the time at which a supply of a taxable commodity is made is to be read as a reference to the time at which the taxable commodity is actually supplied.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

49. Stamp duty land tax (prevention of avoidance)

Resolved,

That—

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

(2) In section 45 (contract and conveyance: effect of transfer of rights), in subsection (3), for the words from “subsection (3)” to the end substitute “any of sections 71A to 73 (which relate to alternative property finance)”.

(3) Omit sections 71A(8), 72(7), 72A(8) and 73(5)(a) (which contain definitions of “financial institution” for the purposes of provisions relating to alternative property finance).

(4) After section 73B insert—

“73BA Meaning of “financial institution”

(1) In sections 71A to 73B “financial institution” has the meaning given by section 564B of the Income Tax Act 2007.

(2) For this purpose section 564B(1) applies as if paragraph (d) were omitted.”

(5) Paragraph 5 of Schedule 4 (chargeable consideration: exchanges) is amended in accordance with paragraphs (6) and (7) of this Resolution.

(6) In sub-paragraph (3)—

(a) for paragraph (a)(i) and (ii) substitute—

“(i) the amount determined under sub-paragraph (3A) in respect of the acquisition, or

(ii) if greater, the amount which would be the chargeable consideration for the acquisition ignoring paragraph 5;”, and

(b) for paragraph (b)(i) and (ii) substitute—

“(i) the amount determined under sub-paragraph (3A) in respect of that acquisition, or

(ii) if greater, the amount which would be the chargeable consideration for that acquisition ignoring paragraph 5;”.

(7) After that sub-paragraph insert—

“(3A) The amount mentioned in sub-paragraph (3)(a)(i) and (b)(i) is—

(a) the market value of the subject-matter of the acquisition, and

(b) if the acquisition is the grant of a lease at a rent, that rent.”

(8) Subject to what follows, the amendments made by paragraphs (2) and (5) to (7) of this Resolution have effect in relation to any transaction the effective date of which is on or after 24 March 2011.

(9) The amendments do not have effect in relation to any transaction (other than a notional transaction under section 75A of the Finance Act 2003)—

(a) which is effected in pursuance of a contract entered into and substantially performed before 24 March 2011, or

(b) which is effected in pursuance of a contract entered into before 24 March 2011 and which is not excluded by paragraph (11) of this Resolution.

(10) The amendments do not have effect in relation to any notional transaction under section 75A of the Finance Act 2003 if any scheme transaction—

(a) is completed before 24 March 2011,

(b) is effected in pursuance of a contract entered into and substantially performed before 24 March 2011, or

(c) is effected in pursuance of a contract entered into before 24 March 2011 and is not excluded by paragraph (11) of this Resolution.

(11) A transaction effected in pursuance of a contract entered into before 24 March 2011 is excluded by this paragraph if—

(a) there is any variation of the contract, or assignment of rights under the contract, on or after 24 March 2011,

(b) the transaction is effected in consequence of the exercise on or after 24 March 2011 of any option, right of pre-emption or similar right, or

(c) on or after 24 March 2011, there is an assignment, sub-sale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.

(12) Terms used in paragraphs (8) to (11) of this Resolution have the same meaning as in Part 4 of the Finance Act 2003.

(13) The amendments made by paragraphs (3) and (4) of this Resolution come into force on 24 March 2011.

(14) But those amendments—

(a) do not have effect for the purposes of any of sections 71A to 73B of the Finance Act 2003 (other than those provisions mentioned in sub-paragraph (b) below) if the arrangements referred to in section 71A(1), 72(1), 72A(1) or 73(1) (as the case may be) were entered into before 24 March 2011, and

(b) do not have effect for the purposes of section 71A(2)(b), 72(2)(b), 72A(2)(b) or 73(2)(b) of that Act if the arrangements referred to there were entered into before 24 March 2011.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

50. Specified investments

Resolved,

That provision (including provision having retrospective effect) may be made about investments specified for the purposes of section 22 of the Financial Services and Markets Act 2000.

51. National Savings Bank ordinary account interest

Resolved,

That provision may be made abolishing relief from income tax on interest on deposits in National Savings Bank ordinary accounts.

52. Relief from tax (incidental and consequential charges)

Resolved,

That it is expedient to authorise any incidental or consequential charges to any duty or tax (including charges having retrospective effect) that may arise from provisions designed in general to afford relief from taxation.

PROCEDURE (FUTURE TAXATION)

Resolved,

That, notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills, any Finance Bill of the present Session may contain the following provisions taking effect in a future year—

(a) provision for corporation tax to be charged for the financial year 2012,

(b) provision about indexation of the annual exempt amount,

(c) provision about the rates of climate change levy,

(d) provision about the standard rate of landfill tax,

(e) provision about taxable benefits in respect of cars with a CO2 emissions figure,

(f) provision about qualifying holiday accommodation,

(g) provision about the lifetime allowance charge,

(h) provision for and in connection with the charging of climate change levy on supplies of commodities to be used in producing electricity, and

(i) provision for and in connection with data-gathering powers.

PROCEDURE (DATA-GATHERING POWERS IN CONNECTION WITH CERTAIN FOREIGN TAXES)

Resolved,

That, notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills, any Finance Bill of the present Session may make provision about obtaining data in connection with—

(a) a tax of a member State, other than the United Kingdom, which is covered by the provisions for the exchange of information under the Directive of the Council of the European Communities No. 77/799/EEC (as amended from time to time),

(b) taxes and duties imposed under the law of a territory outside the United Kingdom and covered by arrangements having effect by virtue of section 173 of the Finance Act 2006, and

(c) value added tax charged in accordance with the law of a member State, other than the United Kingdom.

PROCEDURE (MUTUAL ASSISTANCE IN RECOVERY OF TAXES, DUTIES ETC)

Resolved,

That, notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills, any Finance Bill of the present Session may make provision for giving effect to Council Directive 2010/24/EU and any amendments, extensions or replacements of that Directive.

FINANCE (MONEY)

Queen’s Recommendation signified.

Resolved,

That, for the purposes of any Act of the present Session relating to finance, it is expedient to authorise the payment out of money provided by Parliament of sums incurred by the Commissioners for Her Majesty’s Revenue and Customs in preparing for the introduction of a new duty chargeable in respect of games played on machines.

Ordered,

That a Bill be brought in upon the foregoing Resolutions;

That the Chairman of Ways and Means, the Prime Minister, the Deputy Prime Minister, Mr Chancellor of the Exchequer, Secretary Vince Cable, Mr Secretary Duncan Smith, Secretary Chris Huhne, Danny Alexander, Mr Mark Hoban, Justine Greening and Mr David Gauke bring in the Bill.

Finance (No. 3) Bill

Presentation and First Reading

Mr David Gauke 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.

Bill read the First time; to be read a Second time tomorrow, and to be printed (Bill 175) with explanatory notes (Bill 175-EN).