Orders of the Day — 17. Income Tax (Starting Rate)

– in the House of Commons at 9:40 pm on 15th March 1999.

Alert me about debates like this

Motion made, and Question put,

That—

(1) The following shall be substituted for section 1(2)(aa) of the Income and Corporation Taxes Act 1988— (aa) in respect of so much of an individual's total income as does not exceed £1,500, at such rate as Parliament may determine to be the starting rate for that year;".

(2) The following shall be substituted for section 1(2A) of that Act— (2A) The amount up to which an individual's income is by virtue of subsection (2) above chargeable for any year at the starting rate shall be known as the starting rate limit.

(3) In section 1(3) of that Act, for "lower rate" there shall be substituted "starting rate".

(4) Section 1(4) of that Act, so far as it relates to section 1(2)(aa), shall not apply for the year 1999–00.

(5) In section I (6A) of that Act, for "lower rate" there shall be substituted "starting rate".

(6) The following shall be inserted before section 1A(2) of that Act— (1B) In relation to any year of assessment for which income tax is charged the lower rate is 20 per cent. or such other rate as Parliament may determine.

(7) The following shall be inserted after section 1A(6) of that Act— (6A) Where income tax at the basic rate has been borne on income chargeable at the lower rate any necessary repayment of tax shall be made on the making of a claim.

(8) In sections 547(5)(c) and 550(3) of that Act, for "lower rate" there shall be substituted "starting rate".

(9) In sections 549(2), 699(2) and 819(2) of that Act, for "at the lower rate by virtue of section 1(2)(aa)" there shall be substituted "at the starting rate".

(10) In section 832(1) of that Act—

(a) the following shall be substituted for the definition of "lower rate"— lower rate', in relation to the charging of income tax for any year of assessment, means the rate of income tax specified in or determined in pursuance of section 1A(1B);", and

(b) the following shall be inserted after the definition of "Schedule A business"— `starting rate', in relation to the charging of income tax for any year of assessment, means the rate of income tax determined in pursuance of section 1(2)(aa), and any reference to the starting rate limit shall be construed in accordance with section 1 (2A);".

(11) In section 7(6) of the Taxes Management Act 1970, for "or the lower rate" there shall be substituted ", the lower rate or the starting rate".

(12) In section 91(3)(c) of that Act, for "or the lower rate" there shall be substituted ", the lower rate or the starting rate".

(13) The preceding paragraphs apply for the year 1999–00 and subsequent years of assessment.

(14) Nothing in this Resolution shall require any change to be made in the amounts deductible or repayable under section 203 of the Income and Corporation Taxes Act 1988 before 18th May 1999.

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.

The House divided: Ayes 334, Noes 40.

Division No. 99][10.43 pm
AYES
Abbott, Ms DianeCampbell, Mrs Anne (C'bridge)
Adams, Mrs Irene (Paisley N)Campbell, Ronnie (Blyth V)
Ainsworth, Robert (Cov'try NE)Canavan, Dennis
Alexander, DouglasCaplin, Ivor
Allen, GrahamCasale, Roger
Anderson, Janet (Rossendale)Caton, Martin
Armstrong, Ms HilaryCawsey, Ian
Atherton, Ms CandyChapman, Ben (Wirral S)
Atkins, CharlotteChaytor, David
Austin, JohnChisholm, Malcolm
Banks, TonyClapham, Michael
Barnes, HarryClark, Rt Hon Dr David (S Shields)
Barron, KevinClark, Dr Lynda (Edinburgh Pentlands)
Bayley, Hugh
Beard, NigelClarke, Charles (Norwich S)
Beckett, Rt Hon Mrs MargaretClarke, Rt Hon Tom (Coatbridge)
Begg, Miss AnneClarke, Tony (Northampton S)
Bell, Stuart (Middlesbrough)Clelland, David
Benton, JoeClwyd, Ann
Bermingham, GeraldCoaker, Vernon
Best, HaroldCoffey, Ms Ann
Blears, Ms HazelColeman, lain
Blizzard, BobConnarty, Michael
Blunkett, Rt Hon DavidCook, Frank (Stockton N)
Boateng, PaulCook, Rt Hon Robin (Livingston)
Borrow, DavidCooper, Yvette
Bradley, Keith (Withington)Corbett, Robin
Bradley, Peter (The Wrekin)Corbyn, Jeremy
Bradshaw, BenCorston, Ms Jean
Brinton, Mrs HelenCranston, Ross
Brown, Rt Hon Gordon (Dunfermline E)Crausby, David
Cryer, Mrs Ann (Keighley)
Brown, Rt Hon Nick (Newcastle E)Cryer, John (Hornchurch)
Brown, Russell (Dumfries)Cummings, John
Browne, DesmondCunningham, Rt Hon Dr Jack (Copeland)
Buck, Ms Karen
Burden, RichardCunningham, Jim (Cov'try S)
Burgon, ColinCunningham, Ms Roseanna (Perth)
Butler, Mrs Christine
Campbell, Alan (Tynemouth)Dalyell, Tam
Darling, Rt Hon AlistairJamieson, David
Darvill, KeithJenkins, Brian
Davidson, IanJohnson, Alan (Hull W & Hessle)
Davies, Rt Hon Denzil (Llanelli)Johnson, Miss Melanie (Welwyn Hatfield)
Davies, Geraint (Croydon C)
Dawson, HiltonJones, Helen (Warrington N)
Dean, Mrs JanetJones, leuan Wyn (Ynys Môn)
Denham, JohnJones, Ms Jenny (Wolverh'ton SW)
Dismore, Andrew
Dobbin, JimJones, Jon Owen (Cardiff C)
Dobson, Rt Hon FrankJones, Dr Lynne (Selly Oak)
Donohoe, Brian HJones, Martyn (Clwyd S)
Doran, FrankKaufman, Rt Hon Gerald
Dowd, JimKeeble, Ms Sally
Drew, DavidKeen, Alan (Fettham & Heston)
Dunwoody, Mrs GwynethKeen, Ann (Brentford & Isleworth)
Eagle, Angela (Wallasey)Kelly, Ms Ruth
Eagle, Maria (L'pool Garston)Kemp, Fraser
Efford, CliveKennedy, Jane (Wavertree)
Ellman, Mrs LouiseKhabra, Piara S
Ennis, JeffKidney, David
Etherington, BillKilfoyle, Peter
Ewing, Mrs MargaretKing, Andy (Rugby & Kenilworth)
Field, Rt Hon FrankKing, Ms Oona (Bethnal Green)
Fisher, MarkKingham, Ms Tess
Fitzpatrick, JimKumar, Dr Ashok
Fitzsimons, LornaLadyman, Dr Stephen
Flint, CarolineLaxton, Bob
Follett, BarbaraLeslie, Christopher
Foster, Rt Hon DerekLevitt, Tom
Foster, Michael Jabez (Hastings)Lewis, Terry (Worsley)
Foster, Michael J (Worcester)Linton, Martin
Galbraith, SamLivingstone, Ken
Galloway, GeorgeLloyd, Tony (Manchester C)
Gerrard, NeilLlwyd, Elfyn
Gibson, Dr IanLock, David
Gilroy, Mrs LindaLove, Andrew
Godman, Dr Norman AMcAllion, John
Godsiff, RogerMcAvoy, Thomas
Goggins, PaulMcCabe, Steve
Golding, Mrs LlinMcCafferty, Ms Chris
Griffiths, Jane (Reading E)McDonagh, Siobhain
Griffiths, Nigel (Edinburgh S)Macdonald, Calum
Griffiths, Win (Bridgend)McDonnell, John
Grocott, BruceMcGuire, Mrs Anne
Grogan, JohnMclsaac, Shona
Hall, Patrick (Bedford)McKenna, Mrs Rosemary
Hanson, DavidMackinlay, Andrew
Harman, Rt Hon Ms HarrietMcNulty, Tony
Heal, Mrs SylviaMactaggart, Fiona
Henderson, Ivan (Harwich)McWalter, Tony
Hepburn, StephenMahon, Mrs Alice
Heppell, JohnMallaber, Judy
Hesford, StephenMandelson, Rt Hon Peter
Hewitt, Ms PatriciaMarek, Dr John
Hill, KeithMarsden, Gordon (Blackpool S)
Hinchliffe, DavidMarsden, Paul (Shrewsbury)
Hodge, Ms MargaretMarshall, David (Shettleston)
Hoey, KateMarshall-Andrews, Robert
Home Robertson, JohnMartlew, Eric
Hoon, GeoffreyMaxton, John
Hope, PhilMeacher, Rt Hon Michael
Hopkins, KelvinMichie, Bill (Shef'ld Heeley)
Howarth, Alan (Newport E)Milburn, Rt Hon Alan
Howarth, George (Knowsley N)Miller, Andrew
Howells, Dr KimMitchell, Austin
Hoyle, LindsayMoonie, Dr Lewis
Hughes, Ms Beverley (Stretford)Moran, Ms Margaret
Hughes, Kevin (Doncaster N)Morgan, Alasdair (Galloway)
Humble, Mrs JoanMorgan, Ms Julie (Cardiff N)
Hurst, AlanMorgan, Rhodri (Cardiff W)
Hutton, JohnMorley, Elliot
Iddon, Dr BrianMorris, Ms Estelle (B'ham Yardley)
Illsley, EricMorris, Rt Hon John (Aberavon)
Jackson, Ms Glenda (Hampstead)Mountford, Kali
Jackson, Helen (Hillsborough)Mudie, George
Mullin, ChrisSmith, Jacqui (Redditch)
Murphy, Denis (Wansbeck)Smith, John (Glamorgan)
Naysmith, Dr DougSmith, Llew (Blaenau Gwent)
O'Brien, Bill (Normanton)Snape, Peter
O'Brien, Mike (N Warks)Soley, Clive
O'Hara, EddieSouthworth, Ms Helen
Olner, BillSpellar, John
O'Neill, MartinSquire, Ms Rachel
Organ, Mrs DianaStarkey, Dr Phyllis
Osborne, Ms SandraStevenson, George
Palmer, Dr NickStewart, David (Inverness E)
Pearson, IanStewart, Ian (Eccles)
Pickthall, ColinStinchcombe, Paul
Pike, Peter LStoate, Dr Howard
Plaskitt, JamesStrang, Rt Hon Dr Gavin
Pollard, KerryStraw, Rt Hon Jack
Pond, ChrisStringer, Graham
Pope, GregStuart, Ms Gisela
Powell, Sir RaymondSutcliffe, Gerry
Prentice, Ms Bridget (Lewisham E)Swinney, John
Prentice, Gordon (Pendle)Taylor, Rt Hon Mrs Ann (NW Leics)
Primarolo, Dawn
Purchase, KenTaylor, David (NW Leics)
Quin, Rt Hon Ms JoyceTemple-Morris, Peter
Quinn, LawrieThomas, Gareth (Clwyd W)
Radice, GilesThomas, Gareth R (Harrow W)
Rammell, BillTimms, Stephen
Rapson, SydTipping, Paddy
Raynsford, NickTodd, Mark
Reid, Rt Hon Dr John (Hamilton N)Touhig, Don
Robertson, Rt Hon George (Hamilton S)Trickett, Jon
Truswell, Paul
Robinson, Geoffrey (Cov'try NW)Turner, Dr Desmond (Kemptown)
Roche, Mrs BarbaraTurner, Dr George (NW Norfolk)
Rooker, JeffTwigg, Derek (Halton)
Rooney, TerryTwigg, Stephen (Enfield)
Ross, Ernie (Dundee W)Vaz, Keith
Rowlands, TedWalley, Ms Joan
Roy, FrankWard, Ms Claire
Ruane, ChrisWareing, Robert N
Ruddock, JoanWatts, David
Russell, Ms Christine (Chester)Welsh, Andrew
Ryan, Ms JoanWhite, Brian
Salmond, AlexWhitehead, Dr Alan
Salter, MartinWicks, Malcolm
Savidge, MalcolmWigley, Rt Hon Dafydd
Sawford, PhilWilliams, Alan W (E Carmarthen)
Sedgemore, BrianWinnick, David
Sheerman, BarryWinterton, Ms Rosie (Doncaster C)
Sheldon, Rt Hon RobertWise, Audrey
Shipley, Ms DebraWoolas, Phil
Short, Rt Hon ClareWorthington, Tony
Simpson, Alan (Nottingham S)Wright, Anthony D (Gt Yarmouth)
Singh, Marsha
Skinner, DennisTellers for the Ayes:
Smith, Rt Hon Andrew (Oxford E)Mr. Mike Hall and
Smith, Angela (Basildon)Mr. Clive Betts.
NOES
Allan, RichardHarris, Dr Evan
Ashdown, Rt Hon PaddyHarvey, Nick
Baker, NormanHeath, David (Somerton & Frome)
Ballard, JackieHughes, Simon (Southwark N)
Brake, TomJones, Nigel (Cheltenham)
Brand, Dr PeterKeetch, Paul
Breed, ColinKennedy, Charles (Ross Skye)
Bruce, Malcolm (Gordon)Kirkwood, Archy
Burstow, PaulLivsey, Richard
Cable, Dr VincentMaclennan, Rt Hon Robert
Campbell, Menzies (NE Fife)Michie, Mrs Ray (Argyll & Bute)
Chidgey, DavidMoore, Michael
Cotter, BrianOaten, Mark
Fearn, RonnieÖpik, Lembit
Foster, Don (Bath)Rendel, David
George, Andrew (St Ives)Russell, Bob (Colchester)
Gorrie, DonaldSmith, Sir Robert (W Ab'd'ns)
Taylor, Matthew (Truro)Willis, Phil
Tonge, Dr Jenny
Tyler, PaulTellers for the Noes:
Wallace, JamesMr. Edward Davey and
Webb, SteveMr. Adrian Sanders.

Question accordingly agreed to.