Schedule 3

Finance Bill – in a Public Bill Committee at 10:15 am on 21st May 2009.

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VAT: supplementary charge and orders changing rate

Photo of David Gauke David Gauke Shadow Minister (Treasury)

I beg to move amendment 5, in schedule 3, page 75, line 7, at end insert—

‘(10) Paragraphs 2(3) and (4) shall not apply where the supplier can demonstrate that the terms of its contract does not permit additional VAT to be charged (i.e. if the contract provides otherwise for the purposes of paragraph 21(2) of this Schedule) and that at the time the contract was entered into the supplier had no intention or knowledge that it would become connected with the person to whom the supply is made.’.

Photo of Nicholas Winterton Nicholas Winterton Conservative, Macclesfield

With this it will be convenient to discuss the following: amendment 6, in schedule 3, page 77, line 8, after ‘persons)’, insert ‘save for section 839(5)(b)’.

Amendment 7, in schedule 3, page 77, line 19, at end insert—

‘(c) may only apply to supplies made after the date of such order or where supplies have been contracted to be made prior to such order and the contract allows for additional consideration to be paid’.

Photo of David Gauke David Gauke Shadow Minister (Treasury)

It is a pleasure to be called by you, Sir Nicholas, to serve under your chairmanship, and to move our debate on from the perils of the interweb thingy.

As you said, Sir Nicholas, clause 9, which relates to the temporary VAT reduction, was debated in the Committee of the whole House. We discussed when we should return to a rate of 17.5 per cent. I have no intention, as you have already guided us, Sir Nicholas, to run over the discussions that we had about the effectiveness or otherwise of the reduction, nor about whether 1 January is the appropriate date to return to 17.5 per cent, as we had a full and interesting discussion about that subject on the Floor of the House.

Schedule 3 contains a number of detailed provisions required by the structure created and the Government’s policy of reducing VAT and then returning it to a higher level over time. I look forward to debating the details this afternoon, Sir Nicholas.

The Chairman adjourned the Committee without Question put (Standing Order No. 88).

Adjourned till this day at One o’clock.