Chapter 5 — Supplementary provisions

Finance Bill (Ways and Means) (Payment of Corporation Tax) – in the House of Commons at 5:30 pm on 26th October 2015.

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Votes in this debate

  • Division number 89
    A majority of MPs voted against charging the first year rate of vehicle tax, which varies substantially based on carbon dioxide emissions, for the subsequent two years as well; against a variable rate of vehicle tax based on carbon dixoide emissions for vehicles registered on or after 1 April 2017 and to charge additional tax on vehicles costing over £40,000.

357YU  Interpretation

(1) In this Part “court” includes a tribunal.

(2) In this Part “statutory rate” (in relation to interest) means a rate which is equal to a rate specified—

(a) for purposes relating to taxation, and

(b) in, or in a provision made under, an Act.

357YV  Relationship of Part with other corporation tax provisions

(1) So far as restitution interest is charged to corporation tax under this Part it is not chargeable to corporation tax under any other provision.

(2) This Part has effect regardless of section 464(1) of CTA 2009 (priority of loan relationship provisions).

357YW  Power to amend

(1) The Treasury may by regulations amend this Part (apart from this section).

(2) Regulations under this section—

(a) may not widen the description of the type of payments that are chargeable to corporation tax under this Part;

(b) may not remove or prejudice any right of appeal;

(c) may not increase the rate at which tax is charged on restitution interest under this Part;

(d) may not enable any provision of this Part to have effect in relation to the subject matter of any claim which has been finally determined before 21 October 2015.

(3) Subject to subsection (2), regulations under this section may have retrospective effect.

(4) For the purposes of this section a claim is “finally determined” if a court has disposed of the claim by a final determination or the claimant and the Commissioners for Her Majesty’s Revenue and Customs have entered into an agreement in final settlement of the claim.

(5) Section 357YC(8) (which defines when a determination made by a court is final) has effect for the purposes of this section as for the purposes of section 357YC.

(6) Regulations under this section may include incidental, supplementary or transitional provision.

(7) A statutory instrument containing regulations under this section must be laid before the House of Commons.

(8) The regulations cease to have effect at the end of the period of 28 days beginning with the day on which they are made unless, during that period, the regulations are approved by a resolution of the House of Commons.

(9) In reckoning the 28-day period, no account is to be taken of any time during which—

(a) Parliament is dissolved or prorogued, or

(b) the House of Commons is adjourned for more than 4 days.

(10) Regulations ceasing to have effect by virtue of subsection (8) does not affect—

(a) anything previously done under the regulations, or

(b) the making of new regulations.”

(4) In TMA 1970, in section 59D (general rule as to when corporation tax is due and payable)—

(a) in subsection (3) after “with” insert “the first to fourth steps of”;

(b) in subsection (5) after “59E” insert “and section 357YQ of CTA 2010 (assessment of tax chargeable on restitution interest)”.

(5) Paragraph 8 Schedule 18 to FA 1998 (company tax returns, assessments etc: calculation of tax payable) is amended as follows—

(a) in paragraph 2 of the first step, after “company” insert “(other than the restitution payments rate)”;

(b) After the fourth step insert—

Fifth step

Calculate the corporation tax chargeable on any profits of the company that are charged as restitution interest.

1. Find the amount in respect of which the company is chargeable for the period under the charge to corporation tax on income under Part 8C of CTA 2010.

2. Apply the restitution payments rate in accordance with section 357YK(1) of that Act. The amount of tax payable for the accounting period is the sum of the amounts resulting from the first to fourth steps and this step.”

(6) Schedule 56 to FA 2009 (penalty for failure to make payments on time) is amended in accordance with subsections (7) and (8).

(7) In paragraph 1, in the table after item 6 insert—

“6ZZA Corporation tax Amount payable under section 357YQ of CTA 2010 The end of the period within which, in accordance with section 357YQ(5), the amount must be paid.”

(8) In paragraph 4(1), for “or 6” substitute “, 6 or 6ZZA”.

(9) The amendments made by subsections (1) to (8) have effect in relation to interest (whether arising before or on or after 21 October 2015) which falls within subsection (11).

(10) Section 357YO of CTA 2010, and the amendments made by subsections (1) to (8) so far as relating to the deduction of tax under section 357YO, have effect in relation to payments of interest made on or after 26 October 2015.

This rule is not limited by the rule in subsection (9).

(11) Interest arising to a company falls within this subsection if—

(a) a determination made by a court that the Commissioners for Her Majesty’s Revenue and Customs are liable to pay the interest becomes final on or after 21 October 2015, or

(b) on or after 21 October 2015 the Commissioners and a company enter into an agreement in final settlement of a claim for restitution, under which the company is entitled to be paid, or to retain, the interest.

(12) In subsections (9) to (11)—

(a) the reference to a determination made by a court becoming “final” is to be interpreted in accordance with section 357YC of CTA 2010;

(b) the references to “interest” are to be interpreted in accordance with section 357YC of CTA 2010.”—(Mr Gauke.)

Brought up, read the First and Second time, and added to the Bill.

Amendment proposed: 93,page 58, clause 42, leave out from beginning of line 1 to end of line 37 on page 60 and insert—

“Graduated rates of duty payable on first vehicle licence

For the purpose of determining the rate at which vehicle excise duty is to be paid on each of the first three years of vehicle licence for a vehicle to which this Part of this Schedule applies, the annual rate of duty applicable to the vehicle shall be determined in accordance with the following table by reference to the applicable CO2 emissions figure.

Table
Carbon Dioxide emissions Rate
(1)Exceeding g/km (2)Not exceeding g/km (3)First full year (£) (4)Second full year (£) (5)Third full year
0 0 0 0 0
0 50 10 10 10
50 75 25 25 25
75 90 100 100 100
90 100 120 120 120
100 110 140 140 140
110 130 160 160 160
130 150 200 200 200
150 170 500 500 500
170 190 800 800 800
190 225 1,200 1,200 1,200
225 255 1,700 1,700 1,700
255 - 2,000 2,000 2,000

Rates of duty payable on any other vehicle licence

1GD For the purpose of determining the rate at which vehicle excise duty is to be paid on any other vehicle licence for a vehicle to which this Part of this Schedule applies, the annual rate of vehicle excise applicable to the vehicle shall be determined in accordance with the following table by reference to the applicable CO2 emissions figure.

Table
Carbon Dioxide emissions Rate
(1)Exceeding g/km (2)Not exceeding g/km (3)Standard rate (£)
0 0 20
0 50 40
50 75 60
75 90 80
90 100 100
100 110 120
110 130 140
130 150 160
150 170 180
170 190 200
190 225 220
225 255 240
255 - 260”

—(Rebecca Long Bailey.)

Question put, That the amendment be made.

The House divided:

Ayes 255, Noes 308.

Division number 89 Finance Bill — Clause 42 — Vehicle Tax — Relation to Carbon Dioxide Emissions — Surcharge for Vehicles Costing Over Forty Thousand Pounds

A majority of MPs voted against charging the first year rate of vehicle tax, which varies substantially based on carbon dioxide emissions, for the subsequent two years as well; against a variable rate of vehicle tax based on carbon dixoide emissions for vehicles registered on or after 1 April 2017 and to charge additional tax on vehicles costing over £40,000.

Aye: 255 MPs

No: 308 MPs

Ayes: A-Z by last name

Tellers

Nos: A-Z by last name

Tellers

Absent: 82 MPs

Absents: A-Z by last name

Question accordingly negatived.