Budget Resolutions and Economic Situation — 21. Value added tax (long leases in Scotland) — 23 Mar 1998

Resolved,

That--

(1) In section 1 of the Hydrocarbon Oil Duties Act 1979, for subsection (6) there shall be substituted the following subsection--

"(6) 'Ultra low sulphur diesel' means gas oil--

(a) the sulphur content of which does not exceed 0.005 per cent. by weight or is nil;

(b) the density of which does not exceed 835 kilograms per cubic metre at a temperature of 15° C; and

(c) of which not less than 95 per cent. by volume distils at a temperature not exceeding 345° C."

(2) This Resolution shall have effect as from 6 o'clock in the evening of 17th March 1998.

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.

Resolved,

(5) In paragraph 9 of that Schedule, after sub-paragraph (1) there shall be inserted the following sub-paragraph--

"(1A) Subject to paragraph 10 below, duty charged under subsection (2A) of section 20AAA of this Act shall be charged at the rate for heavy oil in force at the time when the mixture is produced."

(6) This Resolution shall have effect as from 6 o'clock in the evening of 17th March 1998.

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.

Resolved,

That provision may be made increasing the rates of duty set out in the Table in Schedule 1 to the Tobacco Products Duty Act 1979.

12. Rates of gaming duty

Resolved,

That provision may be made increasing the rates at which gaming duty is charged.

13. Amusement machine licence duty (rates of duty)

Resolved,

That--

(1) In section 23 of the Betting and Gaming Duties Act 1981, for the Table in subsection (2) there shall be substituted the following Table--

TABLE

( 1 ) ( 2 ) ( 3 ) ( 4 )

Period (in months) for which licence granted Machines that are not gaming machines Gaming machines that are small-prize machines or are five-penny machines without being small-prize machines Other machines

£ £ £

1 30 80 220

2 50 150 425

3 75 220 615

4 95 285 800

5 120 345 970

6 140 400 1,125

7 160 450 1,270

8 185 500 1,405

9 205 540 1,525

10 225 580 1,635

11 240 615 1,730

12 250 645 1,815

(2) This Resolution shall apply in relation to any amusement machine licence for which an application is received by the Commissioners of Customs and Excise after 17th March 1998.

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.

Resolved,

That--

(1) In section 21(3A) of the Betting and Gaming Duties Act 1981, for paragraphs (b) and (c) there shall be substituted the following paragraphs--

"(b) a five-penny machine which is a small prize machine; or

(c) a thirty-five-penny machine which is not a prize machine or which, if it is a prize machine, is not a gaming machine.".

(2) This Resolution has effect in relation to the provision of an amusement machine at any time on or after 1st April 1998.

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.

Resolved,

That provision may be made confining the exemption in paragraph 1A of Schedule 2 to the Vehicle Excise and Registration Act 1994 to vehicles constructed before 1st January 1973.

16. Vehicle excise duty (payments in respect of void licences)

Resolved,

That provision may be made amending section 35A of the Vehicle Excise and Registration Act 1994.

17. Assessments for excise duty purposes

Resolved,

That provision may be made about assessing and recovering amounts for purposes of excise duty.

18. Value added tax (deemed supplies)

Resolved,

That--

(1) Paragraph 5 of Schedule 4 to the Value Added Tax Act 1994 shall be amended as follows.

(2) In sub-paragraph (2)(a), for "is" there shall be substituted "of acquiring or, as the case may be, producing the goods was".

(3) After sub-paragraph (2) there shall be inserted the following sub-paragraph--

"(2A) For the purposes of determining the cost to the donor of acquiring or producing goods of which he has made a gift, where--

(a) the acquisition by the donor of the goods, or anything comprised in the goods, was by means of a transfer of a business, or a part of a business, as a going concern,

(b) the assets transferred by that transfer included those goods or that thing, and

(c) the transfer of those assets is one falling by virtue of an order under section 5(3) (or under an enactment re-enacted in section 5(3)) to be treated as neither a supply of goods nor a supply of services,

the donor and his predecessor or, as the case may be, all of his predecessors shall be treated as if they were the same person."

(4) In sub-paragraph (5), for "is" there shall be substituted "or any of his predecessors is a person who (disregarding this paragraph) has or will become".

(5) After that sub-paragraph there shall be inserted the following sub-paragraph--

"(5A) In relation to any goods or anything comprised in any goods, a person is the predecessor of another for the purposes of this paragraph if--

(a) that other person is a person to whom he has transferred assets of his business by a transfer of that business, or a part of it, as a going concern;

(b) those assets consisted of or included those goods or that thing; and

(c) the transfer of the assets is one falling by virtue of an order under section 5(3) (or under an enactment re-enacted in section 5(3)) to be treated as neither a supply of goods nor a supply of services;

and references in this paragraph to a person's predecessors include references to the predecessors of his predecessors through any number of transfers."

(6) The preceding provisions of this Resolution apply to any case where the time when the goods are transferred or disposed of or, as the case may be, put to use, used or made available for use is on or after 17th March 1998.

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.

Resolved,

That--

(1) In the Value Added Tax Act 1994 the following section shall be inserted after section 97--

"Place of supply orders: transitional provision

97A.--(1) This section shall have effect for the purpose of giving effect to any order made on or after 17th March 1998 under section 7(11), if--

(a) the order provides for services of a description specified in the order to be treated as supplied in the United Kingdom;

(b) the services would not have fallen to be so treated apart from the order;

(c) the services are not services that would have fallen to be so treated under any provision re-enacted in the order; and

(d) the order is expressed to come into force in relation to services supplied on or after a date specified in the order ('the commencement date'). (2) Invoices and other documents provided to any person before the commencement date shall be disregarded in determining the time of the supply of any services which, if their time of supply were on or after the commencement date, would be treated by virtue of the order as supplied in the United Kingdom. (3) If there is a payment in respect of any services of the specified description that was received by the supplier before the commencement date, so much (if any) of that payment as relates to times on or after that date shall be treated as if it were a payment received on the commencement date. (4) If there is a payment in respect of services of the specified description that is or has been received by the supplier on or after the commencement date, so much (if any) of that payment as relates to times before that date shall be treated as if it were a payment received before that date. (5) Subject to subsection (6) below, a payment in respect of any services shall be taken for the purposes of this section to relate to the time of the performance of those services. (6) Where a payment is received in respect of any services the performance of which takes place over a period a part of which falls before the commencement date and a part of which does not--

(a) an apportionment shall be made, on a just and reasonable basis, of the extent to which the payment is attributable to so much of the performance of those services as took place before that date;

(b) the payment shall, to that extent, be taken for the purposes of this section to relate to a time before that date; and

(c) the remainder, if any, of the payment shall be taken for those purposes to relate to times on or after that date."

(2) In section 6 of the Value Added Tax Act 1994, after subsection (14) there shall be inserted the following subsection--

"(14A) In relation to any services of a description specified in an order under section 7(11), this section and any regulations under this section or section 8(4) shall have effect subject to section 97A."

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.

Resolved,

That provision may be made amending section 36 of the Value Added Tax Act 1994.

Resolved,

That provision may be made amending section 96 of the Value Added Tax Act 1994.

22. Income tax (charge and rates for 1998-99)

Motion made, and Question put,

That income tax shall be charged for the year 1998-99, and for that year--

(a) the lower rate shall be 20 per cent.;

(b) the basic rate shall be 23 per cent.; and

(c) the higher rate shall be 40 per cent.

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 proceeded to a Division--

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