Budget Resolutions and Economic Situation — 23 Apr 2002 at 22:29

Question accordingly agreed to.

22. Indexed rate bands for 2002-03: PAYE deductions etc

Resolved,

That for the year 2002-03-

(a) section 1(5A) of the Income and Corporation Taxes Act 1988, and

(b) section 257C(2A) of that Act as it has effect for the application of sections 257AA(2) and 265 of that Act,

shall have effect as if "17th June" were substituted for "17th May".

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.

23. Corporation tax (charge and rate for 2003)

Resolved,

That corporation tax shall be charged for the financial year 2003 at the rate of 30%.

24. Corporation tax (small companies' rate for 2002)

Resolved,

That for the financial year 2002-

(a) the small companies' rate shall be 19%, and

(b) the fraction mentioned in section 13(2) of the Income and Corporation Taxes Act 1988 shall be 11/400ths.

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.

25. Corporation tax (starting rate)

Resolved,

That for the financial year 2002-

(a) the corporation tax starting rate shall be 0%, and

(b) the fraction mentioned in section 13AA(3) of the Income and Corporation Taxes Act 1988 shall be 19/400ths.

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.

26. Statutory paternity pay and statutory adoption pay

Resolved,

That provision may be made about the taxation of statutory paternity pay and statutory adoption pay.

27. Schedule E charge

Resolved,

That provision may be made amending Chapters 1 and 2 of Part 5, and section 595, of the Income and Corporation Taxes Act 1988.

28. Deductions under the Construction Industry Scheme

Resolved,

That provision may be made about the treatment of sums deducted under section 559 of the Income and Corporation Taxes Act 1988.

29. Chargeable gains (provision in connection with substantial shareholding exemption)

Resolved,

That provision may be made in connection with provision conferring exemptions for disposals by companies with a substantial shareholding in another company-

(a) restricting allowable losses, and

(b) restricting the operation of relieving provisions.

30. Chargeable gains (miscellaneous amendments)

Resolved,

That provision may be made amending the Taxation of Chargeable Gains Act 1992 with respect to-

(a) share exchanges and company reconstructions;

(b) taper relief.

31. Tax relief for R&D expenditure of small or medium-sized enterprises

Resolved,

That provision may be made amending Schedule 20 to the Finance Act 2000.

32. Change of basis of computation of profits

Resolved,

That provision (including provision having retrospective effect) may be made about the effect of a change of basis of computation of profits for tax purposes.

33. Deduction of expenditure involving crime

Resolved,

That provision may be made that, in calculating profits chargeable under Schedule D, no deduction shall be made for any expenditure incurred in making a payment outside the United Kingdom where the making of a corresponding payment in any part of the United Kingdom would constitute a criminal offence there.

34. Loan relationships etc

Resolved,

That provision (including provision having retrospective effect) may be made for the purposes of corporation tax in relation to-

(a) loan relationships; and

(b) other relationships where a company stands, or is treated as standing, in the position of a creditor or debtor in relation to a debt.

35. Foreign exchange gains and losses

Resolved,

That provision (including provision having retrospective effect) may be made for the purposes of corporation tax in relation to gains and losses arising as a result of comparing at different times the expression in one currency of the valuation put on an asset or liability by a company in another currency.

36. Corporation tax (currencies other than sterling)

Resolved,

That provision may be made in relation to the use of currencies other than sterling for purposes relating to corporation tax.

37. Derivative contracts

Resolved,

That provision (including provision having retrospective effect) may be made for the purposes of corporation tax in relation to-

(a) futures;

(b) options;

(c) contracts relating to fluctuations in the value or price of property or in an index or other factor;

(d) instruments entitling a person to subscribe for shares in a company or for assets representing a loan relationship of a company; and

(e) contracts which are qualifying contracts for the purposes of Chapter 2 of Part 4 of the Finance Act 1994.

38. Gains and losses from a company's intangible fixed assets

Resolved,

That provision may be made about the taxation of gains, and the allowing of losses, of a company from its intangible fixed assets, including-

(a) provision restricting capital gains roll-over relief on the disposal of existing assets, and

(b) provision affecting the value of an intangible fixed asset in the hands of a company's counter-party (as transferor or transferee) for any purposes of the Tax Acts.

39. Gains of insurance company from venture capital limited partnership

Resolved,

That provision may be made about the taxation of the gains of an insurance company from a limited partnership that invests in unquoted shares or securities.

40. Lloyd's underwriters

Resolved,

That provision be made about Lloyds's underwriters.

41. Controlled foreign companies

Motion made and Question put,

That provision may be made amending Chapter 4 of Part 17 of the Income and Corporation Taxes Act 1988.

The House divided: Ayes 387, Noes 151.

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