6. Corporation tax (small companies' rates and fractions for financial year 2008)
Amendment of the Law
9:41 pm

Motion made, and Question put,

That—

(1) For the financial year 2008 the small companies' rate is—

(a) 21% on profits of companies other than ring fence profits, and

(b) 19% on ring fence profits of companies, and

(2) For the financial year 2008 the fraction mentioned in section 13(2) of the Income and Corporation Taxes Act 1988 is—

(a) 7/400ths in relation to profits of companies other than ring fence profits, and

(b) 11/400ths in relation to ring fence profits of companies.

The House divided: Ayes 301, Noes 245.

Division number 126

See full list of votes (From The Public Whip)

Question accordingly agreed to.

7. Chargeable gains

Motion made, and Question put ,

That provision may be made amending, or making amendments connected with, the Taxation of Chargeable Gains Act 1992.

The House divided: Ayes 300, Noes 244.

Division number 127

See full list of votes (From The Public Whip)

Question accordingly agreed to.

8. Rates of duty on alcoholic liquor

Mo tion made, and Question put ,

That—

(1) The Alcoholic Liquor Duties Act 1979 is amended as follows.

(2) In section 5 (rate of duty on spirits), for "£19.56" substitute "£21.35".

(3) In section 36(1AA)(a) (standard rate of duty on beer), for "£13.71" substitute "£14.96".

(4) In section 62(1A) (rates of duty on cider)—

(a) in paragraph (a) (rate of duty per hectolitre in the case of sparkling cider of a strength exceeding 5.5 per cent), for "£172.33" substitute "£188.10",

(b) in paragraph (b) (rate of duty per hectolitre in the case of cider of a strength exceeding 7.5 per cent which is not sparkling cider), for "£39.73" substitute "£43.37", and

(c) in paragraph (c) (rate of duty per hectolitre in any other case), for "£26.48" substitute "£28.90".

(5) For the table in Schedule 1 substitute—

"Table of Rates of Duty on Wine and Made-wine
Part 1
Wine or Made-wine of a Strength not Exceeding 22 per cent
Description of wine or made-wine Rates of duty per hectolitre £
Wine or made-wine of a strength not exceeding 4 per cent 59.87
Wine or made-wine of a strength exceeding 4 per cent but not exceeding 5.5 per cent 82.32
Wine or made-wine of a strength exceeding 5.5 per cent but not exceeding 15 per cent and not being sparkling 194.28
Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent but less than 8.5 per cent 188.10
Sparkling wine or sparkling made-wine of a strength of 8.5 per cent or of a strength exceeding 8.5 per cent but not exceeding 15 per cent 248.85
Wine or made-wine of a strength exceeding 15 per cent but not exceeding 22 per cent 259.02
Part 2
Wine or Made-wine of a Strength Exceeding 22 per cent
Description of wine or made-wine Rates of duty per litre of alcohol in the wine or made-wine £
Wine or made-wine of a strength exceeding 22 per cent 21.35"

(6) The amendments made by this Resolution come into force on 17 March 2008.

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

The House divided: Ayes 302, Noes 240.

Division number 128

See full list of votes (From The Public Whip)

Question accordingly agreed to.

9. Rates of tobacco products duty

Resolved,

That—

(1) For the table in Schedule 1 to the Tobacco Products Duty Act 1979 substitute—

"Table
1. Cigarettes An amount equal to 22 per cent of the retail price plus £112.07 per thousand cigarettes
2. Cigars £163.22 per kilogram
3. Hand-rolling tobacco £117.32 per kilogram
4. Other smoking tobacco and chewing tobacco £71.76 per kilogram"

(2) The amendment made by this Resolution comes into force at 6 p.m. on 12 March 2008.

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

10. Fuel duty rates and rebates (simplification)

Resolved,

That—

(1) The Hydrocarbon Oil Duties Act 1979 is amended as follows.

(2) In section 6 (hydrocarbon oil: rates of duty), for subsection (1A) substitute—

" (1A) The rates are—

(a) £0.5035 a litre in the case of unleaded petrol,

(b) £0.6007 a litre in the case of light oil other than unleaded petrol, and

(c) £0.5035 a litre in the case of heavy oil."

(3) In section 6AB(5) (duty on bioblend), omit the words from "of the description" to the end.

(4) In section 11(1) (rebate on heavy oil)—

(a) in paragraph (b), omit "which is not ultra low sulphur diesel", and

(b) omit paragraph (ba).

(5) In section 13AA(6) (restrictions on use of rebated kerosene), omit "which is not ultra low sulphur diesel or sulphur-free diesel".

(6) Omit section 13A (rebate on unleaded petrol).

(7) In section 20AAA(4)(a) (mixing of rebated oil), for "section 6(1A)(d)" substitute "section 6A(1A)(c)".

(8) In Article 21(7) of the Renewable Transport Fuel Obligations Order 2007, for "sulphur-free petrol" substitute "unleaded petrol".

(9) The amendments made by this Resolution come into force on 1 April 2008.

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.

11. Fuel duty (biodiesel and bioblend)

Resolved,

That—

(1) The Hydrocarbon Oil Duties Act 1979 is amended as follows.

(2) Section 1 (hydrocarbon oil) is amended as follows.

(3) In subsection (1), for "Subsections (2) to (7) below" substitute "The following provisions".

(4) After subsection (7) insert—

" (8) "Kerosene" means heavy oil of which more than 50% by volume distils at a temperature of 240(o)C or less."

(5) Section 2A (power to amend definitions) is amended as follows.

(6) In subsection (1), for paragraphs (a) to (e) substitute—

" (a) biodiesel;

(b) bioethanol;

(c) unleaded petrol."

(7) Omit subsections (1A) and (1B).

(8) In section 6AA (excise duty on biodiesel), after subsection (3) insert—

" (4) See section 14A (biodiesel used other than as fuel for road vehicles) for rebates on duty charged under this section."

(9) In section 6AB (excise duty on bioblend), for subsections (3) and (4) substitute—

" (3) The rate per litre of duty under this section on any bioblend is the sum of—

(a) HO% of the rate per litre of duty under section 6 in the case of heavy oil, and

(b) BD% of the rate per litre of duty under section 6AA.

(4) In subsection (3)—

"HO%" means the percentage of the bioblend that is heavy oil, and

"BD%" means the percentage of the bioblend that is biodiesel,

where the percentages are by volume to the nearest 0.001%.

(4A) See section 14B (bioblend used other than as fuel for road vehicles) for rebates on duty charged under this section."

(10) In section 8 (excise duty on road fuel gas)—

(a) in subsection (2), for "in" substitute "for", and

(b) omit subsection (6).

(11) In section 10 (restrictions on use of duty-free oil), omit subsection (8).

(12) In section 12 (rebate not allowed on fuel for road vehicles), omit subsection (3).

(13) In section 13 (penalties for misuse of rebated heavy oil), omit subsection (7).

(14) In section 13AA (restrictions on use of rebated kerosene), omit subsection (5).

(15) In section 13AB (penalties for misuse of kerosene), omit subsections (3) and (4).

(16) In section 14 (rebate on light oil for use as furnace fuel), omit subsection (9).

(17) After that section insert—

"14A Rebate on biodiesel used other than as fuel for road vehicles

(1) This section applies if, at the excise duty point, it is intended that biodiesel on which duty under section 6AA is charged will not be—

(a) used as fuel for a road vehicle, or

(b) used as an additive or extender in any substance so used.

(2) A rebate of duty is to be allowed on the biodiesel at a rate of £0.0969 a litre less than the rate of duty under section 6AA.

(3) In this section "the excise duty point" has the same meaning as in section 1 of the Finance (No. 2) Act 1992.

14B Rebate on bioblend used other than as fuel for road vehicles

(1) This section applies if, on the delivery for home use of bioblend on which duty under section 6AB is charged—

(a) it is intended that the bioblend will not be—

(i) used as fuel for a road vehicle, or

(ii) used as an additive or extender in any substance so used, and

(b) if the heavy oil used to produce the bioblend was kerosene, it is intended that the bioblend will not be—

(i) used as fuel for an engine within paragraph (a) or (b) of section 13AA(1), or

(ii) used as an additive or extender in any substance so used.

(2) A rebate of duty is to be allowed on the bioblend.

(3) The rate per litre of the rebate is the sum of—

(a) HO% of the relevant hydrocarbon rebate rate, and

(b) BD% of the relevant biodiesel rebate rate.

(4) "The relevant hydrocarbon rebate rate" is the rate specified in section 11(1) for the kind of heavy oil used to produce the bioblend.

(5) "The relevant biodiesel rebate rate" is—

(a) if the heavy oil used to produce the bioblend was kerosene, the rate of duty under section 6AA, and

(b) otherwise, the rate of the rebate under section 14A.

(6) Section 6AB(4) (meaning of "HO%" and "BD%") applies for the purposes of subsection (3).

14C Restrictions on use of rebated biodiesel and bioblend

(1) Rebated biodiesel or bioblend must not be—

(a) used as fuel for a road vehicle,

(b) used as an additive or extender in any substance so used, or

(c) taken into a road vehicle as fuel or as an additive or extender in any substance used as fuel.

(2) Rebated bioblend that was produced by mixing kerosene and biodiesel must not be—

(a) used as fuel for an engine within paragraph (a) or (b) of section 13AA(1),

(b) used as an additive or extender in any substance so used, or

(c) taken into the fuel supply of such an engine.

(3) Subsections (1) and (2) do not apply to a quantity of biodiesel or bioblend if the amount specified in subsection (4) has been paid to the Commissioners, in accordance with regulations, in respect of it.

(4) The amount is—

Q x R

where—

Q is the quantity (in litres) of the biodiesel or bioblend, and

R is the rate of the rebate under section 14A or 14B at the time of payment.

(5) In subsection (3) "regulations" means regulations under section 24(1) made for the purposes of this section.

14D Penalties for misuse of rebated biodiesel or bioblend

(1) If biodiesel or bioblend is used or taken into a road vehicle in contravention of section 14C(1) or (2), the Commissioners may assess the amount specified in section 14C(4) as being excise duty due from any person who—

(a) used the biodiesel or bioblend, or

(b) was liable for it being taken into the vehicle,

and may notify the person or the person's representative accordingly.

(2) Conduct within any of the following paragraphs attracts a penalty under section 9 of the Finance Act 1994 (civil penalties)—

(a) using biodiesel or bioblend in contravention of section 14C(1) or (2),

(b) becoming liable for biodiesel or bioblend being taken into a vehicle or the fuel supply of an engine in contravention of section 14C(1) or (2), and

(c) supplying biodiesel or bioblend, intending that it will be put to a particular use that is a prohibited use.

(3) A person commits an offence if—

(a) the person intentionally uses biodiesel or bioblend in contravention of section 14C(1) or (2),

(b) the person is liable for biodiesel or bioblend being taken into a vehicle or the fuel supply of an engine in contravention of section 14C(1) or (2), and knows that the taking in is in contravention of that provision, or

(c) the person supplies biodiesel or bioblend, intending that it will be put to a particular use that is a prohibited use.

(4) "Prohibited use" means a use that would contravene section 14C(1) or (2) if no payment under section 14C(3) were made in respect of the biodiesel or bioblend.

(5) A person guilty of an offence under this section is liable—

(a) on summary conviction, to—

(i) a fine not exceeding the statutory maximum or (if it is greater) 3 times the value of the biodiesel or bioblend in question, or

(ii) imprisonment for a term not exceeding 12 months,

or both, and

(b) on conviction on indictment, to a fine or imprisonment for a term not exceeding 7 years or both.

(6) Subsection (5)(a)(ii) has effect as if the reference there to 12 months were to 6 months—

(a) in this section as it extends to England and Wales, in relation to offences committed before the commencement of section 282 of the Criminal Justice Act 2003 (increase in maximum term that may be imposed on summary conviction of offence triable either way), and

(b) in this section as it extends to Northern Ireland."

(18) Omit section 17A (repayment of part of duty where biodiesel used otherwise than as road fuel).

(19) Section 20A (mixing: adjustment of duty) is amended as follows.

(20) For subsections (1) to (4) substitute—

" (1) Subsections (2) and (3) apply if—

(a) a relevant substance upon which duty under this Act has been charged is mixed in a pipe-line with another kind of relevant substance upon which such duty has been charged, and

(b) the mixing is approved mixing (see subsection (5)).

(2) If the Commissioners are of the opinion that—

(a) the amount of duty that would be charged on the mixture (if duty were charged at the time of mixing), is greater than

(b) the total amount of duty charged as mentioned in subsection (1)(a),

they may charge under this section a duty of excise on the mixture of an amount equal to the difference.

(3) If the Commissioners are of the opinion that the amount mentioned in subsection (2)(a) is less than the amount mentioned in subsection (2)(b), they may make under this section an allowance of an amount equal to the difference.

(4) Where a charge or allowance is made under this section, any relief or rebate which was permitted or allowed in respect of the charges mentioned in subsection (1)(a) is for the purposes of this Act to be disregarded.

(4A) In this section "relevant substance" means biodiesel, bioethanol, bioblend, bioethanol blend or hydrocarbon oil.

(4B) The cases that fall within subsection (1)(a) include cases where one kind of hydrocarbon oil is mixed with another kind of hydrocarbon oil."

(21) In subsection (5)(a), for the words from "in" to "only)" substitute "relevant substances (or specified kinds of relevant substances) in a pipe-line".

(22) Section 20AAA (mixing of rebated oil) is amended as follows.

(23) Omit subsections (3) and (5).

(24) In subsection (9), for ", (2)(a) or (3)" substitute "or (2)(a)".

(25) In section 20AA(1) (power to allow reliefs), after "12(2)" (in both places) insert "or 14C(3)".

(26) Before section 21 (but after the heading " Administration and enforcement") insert—

"20AC Determination by Commissioners of composition of substance

(1) The Commissioners may, for any prescribed purpose, determine in such way as they consider appropriate the proportion of any substance that is biodiesel or bioethanol.

(2) In subsection (1) "prescribed purpose" means a purpose, prescribed by regulations made by the Commissioners, that relates to any duty under this Act."

(27) In section 23 (prohibition on use etc of road fuel gas on which duty has not been paid), omit subsection (2).

(28) Section 24 (control of duty-free and rebated oil) is amended as follows.

(29) In subsection (1), for the words from "section 11," to "section 14(1)," substitute "any of sections 11 to 14C,".

(30) In subsection (2)—

(a) for the words from the beginning to "above" substitute "The regulations", and

(b) for the words from "subsection (2)" to the end substitute "section 12(2), 13AA(3) or 14C(3) are to be effective for the purposes of those provisions."

(31) In subsection (3)—

(a) after "hydrocarbon oil" insert ", biodiesel or bioblend", and

(b) in paragraph (b), for "or rebated light oil" substitute ", rebated light oil, rebated biodiesel or rebated bioblend".

(32) In subsection (4A)(a), after "oil" insert ", biodiesel or bioblend".

(33) In subsection (5), after "oil" insert ", biodiesel or bioblend".

(34) In section 24A (penalties for misuse of marked oil), omit subsection (4).

(35) Section 27 (interpretation) is amended as follows.

(36) In subsection (1)—

(a) in the definition of "controlled oil", after "13AA" insert "or biodiesel or bioblend in respect of which a rebate has been allowed under section 14A or 14B",

(b) after that definition insert—

""excepted vehicle" means a vehicle that is an excepted vehicle within the meaning of Schedule 1;",

(c) after the definition of "hydrocarbon oil" insert—

""kerosene" has the meaning given by section 1(8);",

(d) in the definition of "rebate", after "14" insert ", 14A, 14B", and

(e) in the definition of "road vehicle", for the words from "vehicle which" to the end substitute "excepted vehicle;".

(37) After that subsection insert—

" (1ZA) For the purposes of this Act, a substance is used as fuel for a vehicle if (and only if) it is used as fuel for—

(a) the engine provided for propelling the vehicle, or

(b) an engine which draws fuel from the same supply as that engine.

(1ZB) For those purposes, a substance is taken into a vehicle as fuel, or as an additive or extender in any fuel, if (and only if) it is taken into the vehicle as part of the supply from which the engine provided for propelling the vehicle draws fuel.

(1ZC) For those purposes, the following persons are liable for a substance being taken into a vehicle or into the fuel supply of an engine—

(a) the person who has charge of the vehicle or engine at the time the substance is taken in, and

(b) the owner of the vehicle or engine at that time (or, if another person is entitled to possession of it at that time, that other person).

(1ZD) Subsection (1ZC) applies in relation to appliances and storage tanks as it applies in relation to vehicles."

(38) In Schedule 4 (regulations under section 24), in paragraph 22 (interpretation), omit the words from "and section 12(3)(a)" to the end.

(39) In Schedule 5 (sampling), in paragraph 3(1), omit "of oil".

(40) The amendments made by this Resolution come into force—

(a) so far as they confer a power to make regulations, on 19 March 2008, and

(b) for all other purposes, on 1 April 2008.

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.

12. Fuel duty (other provision)

Resolved,

That provision may be made amending the Hydrocarbon Oil Duties Act 1979.

13. Rates of vehicle excise duty

Motion made, and Question put,

That—

(1) Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty) is amended as follows.

(2) In paragraph 1 (general)—

(a) in sub-paragraph (2) (vehicle not covered elsewhere in Schedule otherwise than with engine cylinder capacity not exceeding 1,549cc), for "£180" substitute "£185", and

(b) in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for "£115" substitute "£120".

(3) In paragraph 1B (graduated rates for light passenger vehicles), for the table substitute—

"Table
CO 2 emissions figure Rate
(1) (2) (3) (4)
Exceeding Not exceeding Reduced rate Standard rate
g/km g/km £ £
100 120 15 35
120 150 100 120
150 165 125 145
165 185 150 170
185 225 195 210
225 385 400

The table has effect in relation to vehicles first registered before 23 March 2006 as if—

(a) in column (3), in the last row, "195" were substituted for "385", and

(b) in column (4), in the last row, "210" were substituted for "400"."

(4) In paragraph 1J (light goods vehicles)—

(a) in sub-paragraph (a) (vehicle which is not lower-emission van), for "£175" substitute "£180", and

(b) in sub-paragraph (b) (lower-emission van), for "£115" substitute "£120".

(5) In paragraph 2(1) (motorcycles)—

(a) in paragraph (b) (motorbicycle and engine's cylinder capacity more than 150cc but not more than 400cc), for "£32" substitute "£33",

(b) in paragraph (c) (motorbicycle and engine's cylinder capacity more than 400cc but not more than 600cc), for "£47" substitute "£48", and

(c) in paragraph (d) (any other case), for "£64" substitute "£66".

(6) The amendments made by this Resolution have effect in relation to licences taken out on or after 13 March 2008.

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

The House divided: Ayes 364, Noes 177.

Division number 129

See full list of votes (From The Public Whip)

Question accordingly agreed to.

14. Standard rate of landfill tax

Resolved,

That provision may be made about the standard rate of landfill tax.

15. Rates of climate change levy

Resolved,

That provision may be made about the rates of climate change levy.

16. Rate of aggregates levy

Resolved,

That provision may be made about the rate of aggregates levy.

17. Carbon reduction trading schemes

Resolved,

That provision may be made for the imposition of charges by the allocation of carbon reduction trading scheme allowances in return for payment.

18. Amusement machine licence duty

Resolved,

That—

(1) In section 23(2) of the Betting and Gaming Duties Act 1981 (amount of duty payable on amusement machine licence), for the table substitute—

"Table
Months for which licence granted Category A Category B1 Category B2 Category B3 Category B4 Category C
£ £ £ £ £ £
1 455 230 180 180 165 70
2 905 450 355 355 320 135
3 1355 675 535 535 485 200
4 1805 905 710 710 645 265
5 2260 1130 890 890 805 335
6 2710 1355 1065 1065 965 400
7 3160 1580 1245 1245 1125 465
8 3610 1805 1420 1420 1290 530
9 4065 2030 1600 1600 1450 600
10 4515 2260 1775 1775 1610 665
11 4965 2485 1955 1955 1770 730
12 5160 2580 2030 2030 1840 760".

(2) The amendment made by paragraph (1) has effect in relation to cases where the application for the amusement machine licence is received by the Commissioners for Her Majesty's Revenue and Customs after 4 p.m. on 14 March 2008.

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.

19. Residence

Resolved,

That provision may be made about the residence of individuals in the United Kingdom.

20. Persons not domiciled or not ordinarily resident in the United Kingdom

Resolved,

That provision may be made about persons not domiciled or not ordinarily resident in the United Kingdom.

21. Expenditure on research and development

Resolved,

That provision may be made about tax relief for expenditure on research and development.

22. Venture capital schemes

Resolved,

That provision may be made about the corporate venturing scheme, the enterprise investment scheme and venture capital trusts.

23. Enterprise management incentives

Resolved,

That provision may be made amending Schedule 5 to the Income Tax (Earnings and Pensions) Act 2003.

24. Company gains from investment life insurance contracts

Resolved,

That provision may be made about gains by companies from investment life insurance contracts.

25. Changes in trading stock

Resolved,

That provision may be made about the effect of certain changes in trading stock on the calculation of profits of trades for the purposes of income tax or corporation tax.

26. Investment managers

Resolved,

That provision may be made about investment managers who act on behalf of non-residents.

27. Offshore funds

Resolved,

That provision (including provision having retrospective effect) may be made about offshore funds and participants in them.

28. Insurance companies etc.

Resolved,

That provision (including provision having retrospective effect) may be made about insurance companies, friendly societies and companies which have mutual business.

29. Employment-related securities etc.

Resolved,

That—

(1) The Income Tax (Earnings and Pensions) Act 2003 is amended as follows.

(2) In section 428(2)(b) as originally enacted (conditional interests in shares: amount of charge), insert at the end "(other than an amount of exempt income)".

(3) In section 428(7)(b) (restricted securities: amount of charge), insert at the end "(other than an amount of exempt income)".

(4) In section 446T(3)(b) (securities acquired for less than market value: amount of charge), insert at the end "(other than an amount of exempt income)".

(5) In section 480(5)(a) (securities options: deductible amounts), insert at the end "(other than an amount of exempt income)".

(6) The amendment made by paragraph (2) has effect in relation to events within section 427(1)(a) or (b) of the Income Tax (Earnings and Pensions) Act 2003 (as originally enacted) occurring on or after 12 March 2008.

(7) The amendments made by paragraphs (3) and (5) have effect in relation to chargeable events occurring on or after that date.

(8) The amendment made by paragraph (4) has effect in relation to employment-related securities acquired (or treated as acquired) on or after that date.

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

30. Relief for employee share acquisition

Resolved,

That provision may be made amending Schedule 23 to the Finance Act 2003.

31. Leases of plant or machinery

Resolved,

That provision (including provision having retrospective effect) may be made about leases of plant or machinery.

32. Double taxation relief

Resolved,

That provision (including provision having retrospective effect) may be made about double taxation relief.

33. Restrictions on trade loss relief for individuals

Resolved,

That provision may be made restricting reliefs for losses made by individuals carrying on trades otherwise than in partnership.

34. Restrictions on trade loss relief for partners

Resolved,

That provision may be made amending section 103B(2) of the Income Tax Act 2007.

35. Financial arrangements avoidance

Resolved,

That provision (including provision having retrospective effect) may be made amending—

(a) sections 785A and 807A of the Income and Corporation Taxes Act 1988,

(b) Chapter 2 of Part 4 of the Finance Act 1996,

(c) Schedule 26 to the Finance Act 2002, and

(d) section 384 of the Income Tax Act 2007.

36. Manufactured payments

Resolved,

That provision (including provision having retrospective effect) may be made about manufactured payments (including deemed manufactured payments).

37. Controlled foreign companies

Resolved,

That provision may be made about controlled foreign companies.

38. Intangible fixed assets

Resolved,

That provision may be made amending Schedule 29 to the Finance Act 2002.

39. Payments on account of income tax

Resolved,

That provision may be made repealing section 964(5) of the Income Tax Act 2007.

40. Capital allowances

Resolved,

That provision may be made about capital allowances.

41. Pension schemes

Resolved,

That provision (including provision having retrospective effect) may be made about pension schemes.

42. Stamp duty land tax (notification and registration of transactions)

Resolved,

That—

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

(2) For section 77 substitute—

" 77 Notifiable transactions

(1) A land transaction is notifiable if it is—

(a) an acquisition of a major interest in land that does not fall within one or more of the exceptions in section 77A,

(b) an acquisition of a chargeable interest other than a major interest in land where there is chargeable consideration in respect of which tax is chargeable at a rate of 1% or higher or would be so chargeable but for a relief,

(c) a land transaction that a person is treated as entering into by virtue of section 44A(3), or

(d) a notional land transaction under section 75A.

(2) This section has effect subject to—

(a) sections 71A(7) and 72A(7), and

(b) paragraph 30 of Schedule 15.

(3) In this section "relief" does not include an exemption from charge under Schedule 3.

77A Exceptions for certain acquisitions of major interests in land

(1) The exceptions referred to in section 77(1)(a) are as follows.

1. An acquisition which is exempt from charge under Schedule 3.
2. An acquisition (other than the grant, assignment or surrender of a lease) where the chargeable consideration for that acquisition, together with the chargeable consideration for any linked transactions, is less than £40,000.
3. The grant of a lease for a term of 7 years or more where any chargeable consideration other than rent is (a) less than £40,000, and the relevant (b) rent is less than £1,000.
4. The assignment or surrender of a lease where the lease was (a) originally granted for a term of 7 years or more, (b) the chargeable consideration for the assignment or surrender, other than any rent, is less than £40,000, and (c) the relevant rent is less than £1,000.
5. The grant of a lease for a term of less than 7 years where the chargeable consideration does not exceed the zero rate threshold.
6. The assignment or surrender of a lease where (a) the lease was originally granted for a term of less than 7 years, and (b) the chargeable consideration does not exceed the zero rate threshold.

(2) Chargeable consideration for an acquisition does not exceed the zero rate threshold if it does not consist of or include—

(a) any amount in respect of which tax is chargeable at a rate of 1% or higher, or

(b) any amount in respect of which tax would be so chargeable but for a relief.

(3) In this section—

"annual rent" has the meaning given in paragraph 9A of Schedule 5,

"relevant rent" means—

(a) the annual rent, or

(b) in the case of the grant of a lease to which paragraph 11 or 19 of Schedule 15 applies, the relevant chargeable proportion of the annual rent (as calculated in accordance with that paragraph), and

"relief" does not include an exemption from charge under Schedule 3."

(3) In section 79(2) (registration of land transactions), after "every" insert "notifiable".

(4) In section 122 (index of defined expressions), in the definition of "notifiable (in relation to a land transaction)" after "72A(7)" insert "and paragraph 30 of Schedule 15".

(5) In Part 4 of Schedule 6 (SDLT: disadvantaged areas relief), in paragraph 13, for "section 77 (which specifies" substitute "sections 77 and 77A (which specify".

(6) In Schedule 17A (SDLT: further provisions relating to leases), in paragraphs 3(2) and (5) and 4(1) and (4A), for "section 77" substitute "sections 77 and 77A".

(7) The amendments made by this Resolution have effect in relation to transactions with an effective date on or after 12 March 2008.

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.

43. Stamp duty land tax (charge where consideration includes rent)

Resolved,

That—

(1) Schedule 5 to the Finance Act 2003 (amount of SDLT chargeable: rent) is amended as follows.

(2) In paragraph 9 (SDLT chargeable in respect of consideration other than rent)—

(a) in sub-paragraph (1), insert at the end "(but see paragraph 9A)", and

(b) omit sub-paragraphs (2), (2A) and (3),

and accordingly, in the heading before that paragraph, insert at the end " : general".

(3) After that paragraph insert—

"Tax chargeable in respect of consideration other than rent: 0% band

(1) 9A This paragraph applies in the case of a transaction to which this Schedule applies where there is chargeable consideration other than rent.

(2) If—

(a) the relevant land consists entirely of land that is non-residential property, and

(b) the relevant rent is at least £1,000,

the 0% band in Table B in section 55(2) does not apply in relation to the consideration other than rent and any case that would have fallen within that band is treated as falling within the 1% band.

(3) Sub-paragraphs (4) and (5) apply if—

(a) the relevant land is partly residential property and partly non-residential property, and

(b) the relevant rent attributable, on a just and reasonable apportionment, to the land that is non-residential property is at least £1,000.

(4) For the purpose of determining the amount of tax chargeable under section 55 in relation to the consideration other than rent, the transaction (or, where it is one of a number of linked transactions, that set of transactions) is treated as if it were two separate transactions (or sets of linked transactions), namely—

(a) one whose subject-matter consists of all of the interests in land that is residential property, and

(b) one whose subject-matter consists of all of the interests in land that is non-residential property.

(5) For that purpose, the chargeable consideration attributable to each of those separate transactions (or sets of linked transactions) is the chargeable consideration so attributable on a just and reasonable apportionment.

(6) In this paragraph, "the relevant rent" means—

(a) the annual rent in relation to the transaction in question, or

(b) if that transaction is one of a number of linked transactions for which the chargeable consideration consists of or includes rent, the total of the annual rents in relation to all of those transactions.

(7) In sub-paragraph (6), the "annual rent" means the average annual rent over the term of the lease or, if—

(a) different amounts of rent are payable for different parts of the term, and

(b) those amounts (or any of them) are ascertainable at the effective date of the transaction,

the average annual rent over the period for which the highest ascertainable rent is payable.

(8) In this paragraph, "relevant land" has the meaning given in section 55(3) and (4)."

(4) Each of the following provisions of Schedule 6 to that Act (SDLT: disadvantaged areas relief) is amended in accordance with paragraph (5) of this Resolution—

(a) paragraph 5(4) (residential land wholly situated in disadvantaged area),

(b) paragraph 6(6) (mixed land wholly situated in disadvantaged area),

(c) paragraph 9(4) (residential land partly situated in disadvantaged area), and

(d) paragraph 10(6) (mixed land wholly partly situated in disadvantaged area).

(5) In those provisions—

(a) in paragraph (a), omit sub-paragraph (i) (and the "and" after it), and

(b) omit paragraph (b).

(6) In paragraph 12 of that Schedule (rent and annual rent) for "9(2)" substitute "9A".

(7) In Schedule 8 to that Act (SDLT: charities relief) in paragraph 3—

(a) in sub-paragraph (3)(b), for "does not exceed £600" substitute "is less than £1,000", and

(b) in sub-paragraph (5), for "9(2)" substitute "9A".

(8) In Schedule 15 to that Act (SDLT: partnerships)—

(a) in paragraph 11(2B)(a), for "9(2A)" substitute "9A(6)",

(b) in paragraph 19(2B), for "9(2A)" substitute "9A(6)", and

(c) in paragraph 23(3)(c), for "9(2)" substitute "9A".

(9) In Schedule 17A to that Act (SDLT: further provisions relating to leases) in paragraph 18A(5)(a)—

(a) for "9(2)" substitute "9A",

(b) for "the Tables" substitute "Table B", and

(c) for "the relevant rental figure exceeds £600" substitute "the relevant rent attributable to non-residential property is not less than £1,000".

(10) The amendments made by this Resolution have effect in relation to transactions with an effective date on or after 12 March 2008.

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.

44. Stamp duty land tax (withdrawal of group relief)

Resolved,

That—

(1) Part 1 of Schedule 7 to the Finance Act 2003 (group relief) is amended as follows.

(2) In paragraph 3(5), for "paragraph 4" substitute "paragraphs 4 and 4ZA".

(3) In paragraph 4 (cases in which group relief not withdrawn)—

(a) omit sub-paragraphs (2) and (3), and

(b) in sub-paragraph (5), for "sub-paragraphs (3) and (4)" substitute "sub-paragraph (4)".

(4) After that paragraph insert—

"Group relief not withdrawn where vendor leaves group

(1) 4ZA Group relief is not withdrawn under paragraph 3 where the purchaser ceases to be a member of the same group as the vendor because the vendor leaves the group.

(2) The vendor is regarded as leaving the group if the companies cease to be members of the same group by reason of a transaction relating to shares in—

(a) the vendor, or

(b) another company that—

(i) is above the vendor in the group structure, and

(ii) as a result of the transaction ceases to be a member of the same group as the purchaser.

(3) For the purpose of sub-paragraph (2) a company is "above" the vendor in the group structure if the vendor, or another company that is above the vendor in the group structure, is a 75% subsidiary of the company.

(4) But if there is a change in the control of the purchaser after the vendor leaves the group, paragraphs 3, 4(6) and (7), 5 and 6 have effect as if the purchaser had then ceased to be a member of the same group as the vendor.

(5) For the purposes of this paragraph there is a change in the control of the purchaser if—

(a) a person who controls the purchaser (alone or with others) ceases to do so,

(b) a person obtains control of the purchaser (alone or with others), or

(c) the purchaser is wound up.

(6) For the purposes of sub-paragraph (5) a person does not control, or obtain control of, the purchaser if that person is under the control of another person or other persons.

(7) In this paragraph references to "control" shall be interpreted in accordance with section 416 of the Taxes Act 1988 (subject to sub-paragraph (6))."

(5) In paragraph 4A(1) (withdrawal of group relief in certain cases involving successive transactions), in the words following paragraph (d), for "and 4" substitute ", 4 and 4ZA".

(6) The amendments made by this Resolution have effect—

(a) in relation to transactions with an effective date on or after 13 March 2008, and

(b) (subject to paragraph (7)) in relation to transactions with an effective date before that day if, on or after that day, there is a change in the control of the purchaser (within the meaning of paragraph 4ZA(5) of Schedule 7 to the Finance Act 2003, inserted by this Resolution).

(7) The amendments made by this Resolution do not have effect by virtue of paragraph (6)(b) where the change of control takes place in pursuance of a contract entered into before 13 March 2008.

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.

45. Stamp duty (exemption from ad valorem duty for low value transactions)

Resolved,

That the following provisions shall have effect for the period beginning with 19 March 2008 and ending 31 days after the earliest of the dates mentioned in section 50(2) of the Finance Act 1973—

(1) Paragraph 1 of Schedule 13 to the Finance Act 1999 (charge to stamp duty on conveyance or transfer on sale) is amended as follows.

(2) In sub-paragraph (3), for "(4)" substitute "(3A)".

(3) After that sub-paragraph insert—

" (3A) Stamp duty is not chargeable under sub-paragraph (1) on a transfer of stock or marketable securities where—

(a) the amount or value of the consideration for the sale is £1,000 or under, and

(b) the instrument is certified at £1,000."

(4) In paragraph 6(1) of that Schedule (meaning of instrument being certified at an amount), for "paragraph" substitute "paragraphs 1(3A) and".

(5) The amendments made by this Resolution have effect in relation to instruments executed on or after 13 March 2008 and not stamped before 19 March 2008.

(6) 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 first execution), the law in force at the time of execution of an instrument—

(a) executed on or after 13 March 2008 but before 19 March 2008, and

(b) not stamped before 19 March 2008,

shall be deemed to be the law as varied in accordance with this Resolution.

And it is 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.

Stamp duty (abolition of fixed 46. duty on certain instruments)

That the following provisions shall have effect for the period beginning with 19 March 2008 and ending 31 days after the earliest of the dates mentioned in section 50(2) of the Finance Act 1973—

(1) In section 129(1) of the Finance Act 1982 (exemption from duty on grants, transfers to charities etc), omit ", or paragraph 16,".

(2) Part 3 of the Finance Act 1985 (stamp duty) is amended as follows.

(3) In section 83 (transfers in connection with divorce, dissolution of civil partnership, etc), omit subsection (2) (fixed duty).

(4) In section 84 (death: varying dispositions, and appropriations)—

(a) omit subsections (8) and (9) (fixed duty and adjudication), and

(b) in subsection (11) (commencement), omit from "and," to "subsection (8) above".

(5) Part 3 of the Finance Act 1986 (stamp duty) is amended as follows.

(6) In section 66 (company's purchase of own shares), omit subsection (2A) (fixed duty).

(7) In section 67 (stamp duty on certain transfers to depositary receipt systems)—

(a) in subsection (1), after "instrument" insert "(other than a bearer instrument)",

(b) in subsection (3), for the words from the beginning to "then," substitute "In any other case—

(a) stamp duty is chargeable on the instrument under this subsection, and

(b) ",

(c) in subsection (9) (transfer of securities between depositary receipt systems), for "the stamp duty chargeable on the instrument is £5" substitute "stamp duty is not chargeable on the instrument", and

(d) after subsection (9) insert—

" (9A) In this section "bearer instrument" has the meaning given in paragraph 3 of Schedule 15 to the Finance Act 1999."

(8) In section 70 (stamp duty on certain transfers to a clearance system)—

(a) in subsection (1), after "instrument" insert "(other than a bearer instrument)",

(b) in subsection (3), for the words from the beginning to "then," substitute "In any other case—

(a) stamp duty is chargeable on the instrument under this subsection, and

(b) ",

(c) in subsection (9) (transfer of securities between clearance systems), for "the stamp duty chargeable on the instrument is £5" substitute "stamp duty is not chargeable on the instrument", and

(d) after subsection (9) insert—

" (9A) In this section "bearer instrument" has the meaning given in paragraph 3 of Schedule 15 to the Finance Act 1999."

(9) In section 72A(1) (transfer of securities between depositary receipt system and clearance system), for paragraph (b) substitute—

" (b) stamp duty is not chargeable on the instrument."

(10) In Part 3 of the Finance Act 1987 (stamp duty and stamp duty reserve tax)—

(a) in section 50(1) (warrants to purchase Government stock, etc), omit ", or paragraph 16", and

(b) in section 55(1) (Crown exemption), omit ", or paragraph 16".

(11) Schedule 13 to the Finance Act 1999 (instruments chargeable to stamp duty and rates of duty) is amended as follows.

(12) In paragraph 1(5) (treasury shares), for the words from "any instrument" to the end substitute "sub-paragraph (1) does not apply to any instrument to which sub-paragraph (6) applies."

(13) In Part 3 (other instruments chargeable to stamp duty and rates of duty) omit—

(a) paragraph 16 (fixed duty on transfer otherwise than on sale) and the heading before it,

(b) paragraph 17 (fixed duty on declaration of use or trust) and the heading before it,

(c) paragraph 18(2) (fixed duty on disposition of certain property in Scotland),

(d) paragraph 19(1) (fixed duty on duplicate or counterpart),

(e) paragraph 21(3) (fixed duty on partition or division),

(f) paragraph 22 (fixed duty on release or renunciation) and the heading before it, and

(g) paragraph 23 (fixed duty on surrender) and the heading before it.

(14) Schedule 15 to the Finance Act 1999 (stamp duty: bearer instruments) is amended as follows.

(15) Omit paragraph 6 (fixed duty on instrument given in substitution for a like instrument stamped ad valorem).

(16) At the beginning of Part 2 (exemptions) insert—

"Substitute instruments

12A (1) Stamp duty is not chargeable on a substitute instrument.

(2) A substitute instrument is a bearer instrument given in substitution for a like instrument stamped ad valorem (whether under this Schedule or otherwise) ("the original instrument").

(3) The substitute instrument shall not be treated as duly stamped unless it appears by some stamp impressed on it that the full and proper duty has been paid on the original instrument."

(17) In paragraph 20 (variation of original terms or conditions), for paragraph (b) substitute—

" (b) has been stamped in accordance with paragraph 12A, or".

(18) In paragraph 26 (instruments treated as duly stamped), omit paragraph (b) (and the "or" before it).

(19) Paragraphs (1) to (4), (10)(b) and (11) to (13) do not have effect in relation to an instrument effecting a land transaction or a duplicate or counterpart of such an instrument.

(20) In paragraph (19) "land transaction" has the same meaning as in Part 4 of the Finance Act 2003, except that it does not include a transfer of an interest in a property-investment partnership (within the meaning of Schedule 15 of that Act).

(21) The amendments made by this Resolution have effect in relation to instruments executed on or after 13 March 2008 and not stamped before 19 March 2008.

(22) 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 first execution), the law in force at the time of execution of an instrument—

(a) executed on or after 13 March 2008 but before 19 March 2008, and

(b) not stamped before 19 March 2008,

shall be deemed to be the law as varied in accordance with this Resolution.

And it is 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.

47. Expenses of management of investment business (oil extraction etc)

Resolved,

That provision may be made about deduction of expenses of management of investment business from profits arising from oil extraction activities and oil rights.

48. Value added tax (time limits for assessments of excess credits etc)

Resolved,

That—

(1) In section 73 of the Value Added Tax Act 1994 (assessment of overpaid VAT credits etc), after subsection (6) insert—

" (6A) In the case of an assessment under subsection (2), the prescribed accounting period referred to in subsection (6)(a) and in section 77(1)(a) is the prescribed accounting period in which the repayment or refund of VAT, or the VAT credit, was paid or credited."

(2) Section 80 of that Act (credit for, or repayment of, overstated or overpaid VAT) is amended as follows.

(3) After subsection (4A) insert—

" (4AA) An assessment under subsection (4A) shall not be made more than 2 years after the later of—

(a) the end of the prescribed accounting period in which the amount was credited to the person, and

(b) the time when evidence of facts sufficient in the opinion of the Commissioners to justify the making of the assessment comes to the knowledge of the Commissioners."

(4) In subsection (4C), for "(2)" substitute "(3)".

(5) The amendments made by this Resolution come into force on 19 March 2008.

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. Value added tax (time limits for old claims)

Resolved,

That—

(1) The requirement in section 80(4) of the Value Added Tax Act 1994 that a claim under that section be made within 3 years of the relevant date does not apply to a claim in respect of an amount brought into account, or paid, for a prescribed accounting period ending before 4 December 1996 if the claim is made before 1 April 2009.

(2) The requirement in section 25(6) of the Value Added Tax Act 1994 that a claim for deduction of input tax be made at such time as may be determined by or under regulations does not apply to a claim for deduction of input tax that became chargeable, and in respect of which the claimant held the required evidence, in a prescribed accounting period ending before 1 May 1997 if the claim is made before 1 April 2009.

(3) In this Resolution—

"input tax" and "prescribed accounting period" have the same meaning as in the Value Added Tax Act 1994 (see section 96 of that Act), and

"the required evidence" means the evidence of the charge to value added tax specified in or under regulation 29(2) of the Value Added Tax Regulations 1995.

(4) This Resolution has effect on and after 19 March 2008.

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. Inheritance tax (interests in possession)

Resolved,

That provision may be made amending section 53 of the Inheritance Tax Act 1984.

51. Vehicle excise duty (rebates)

Resolved,

That provision may be made about rebates of vehicle excise duty.

52. Climate change levy (coal mine methane)

Resolved,

That provision may be made for coal mine methane to cease to be regarded as a renewable source for the purposes of climate change levy.

53. Landfill tax credit (withdrawing approval of environmental bodies)

Resolved,

That—

(1) Part 3 of the Finance Act 1996 (landfill tax) is amended as follows.

(2) In section 53(4)(d) (withdrawal of approval of environmental body or regulatory body), for "approval of an environmental body or the regulatory body to be withdrawn" substitute "the withdrawal of approval of an environmental body by the Commissioners or by the regulatory body, and the withdrawal of approval of the regulatory body by the Commissioners,".

(3) In section 54(1) (review of Commissioners' decisions), after paragraph (c) insert—

" (ca) a decision to withdraw approval of an environmental body under any provision contained in regulations by virtue of section 53(4)(d) above;".

(4) The amendments made by this Resolution come into force on 19 March 2008.

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.

54. Air passenger duty (standard class travel)

Resolved,

That provision may be made amending the definition of standard class travel for the purposes of air passenger duty.

55. Alternative property finance

Resolved,

That—

(1) The Finance Act 2003 is amended as follows.

(2) For the title of section 73A substitute "Sections 71A to 73: relationship with Schedule 7".

(3) After section 73A insert—

" 73AB Sections 71A to 72A: arrangements to transfer control of financial institution

(1) Section 71A, 72 or 72A does not apply to alternative finance arrangements if those arrangements, or any connected arrangements, include arrangements for a person to acquire control of the relevant financial institution.

(2) That includes arrangements for a person to acquire control of the relevant financial institution only if one or more conditions are met (such as the happening of an event or doing of an act).

(3) In this section—

"alternative finance arrangements" means the arrangements referred to in section 71A(1), 72(1) or 72A(1);

"arrangements" includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);

"connected arrangements" means any arrangements entered into in connection with the making of the alternative finance arrangements (including arrangements involving one or more persons who are not parties to the alternative finance arrangements);

"relevant financial institution" means the financial institution which enters into the alternative finance arrangements.

(4) Section 840 of the Taxes Act 1988 applies for the purposes of determining who has control of the relevant financial institution."

(4) The amendments made by this Resolution have effect in relation to alternative finance arrangements entered into on or after 12 March 2008.

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.

56. Alternative finance arrangements

Resolved,

That provision may be made for amending Chapter 5 of Part 2 of the Finance Act 2005 by order.

57. Duties (abolition of disregard of fractions of penny)

Resolved,

That provision may be made repealing section 137(4) of the Customs and Excise Management Act 1979.

58. 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.