Budget Resolutions and Economic Situation — 23 Apr 2002 at 22:53

Question accordingly agreed to.

43. Films: restriction of relief

Resolved,

That provision may be made restricting relief under the following provisions-

(a) section 40D of the Finance (No.2) Act 1992;

(b) section 41 of that Act;

(c) section 42 of that Act;

(d) section 48 of the Finance (No.2) Act 1997.

44. Distributions (reasonable commercial return for use of principal secured)

Resolved,

That provision may be made as to the cases in which any interest or other distribution out of assets of a company is a distribution, within the meaning of the Corporation Tax Acts, by virtue of section 209(2)(d) of the Income and Corporation Taxes Act 1988.

45. References to accounting practice etc

Resolved,

That provision (including provision having retrospective effect) may be made standardising references in the Tax Acts to accounting practice and periods of account.

46. Discounted securities etc

Resolved,

That provision (including provision having retrospective effect) may be made amending Schedule 13 to the Finance Act 1996.

47. Valuation of trading stock

Resolved,

That provision may be made as to the valuation of trading stock sold or transferred together with other assets.

48. Manufactured dividends and interest

Resolved,

That provision may be made amending Schedule 23A to the Income and Corporation Taxes Act 1988.

49. Venture capital trusts (winding up, mergers and further share issues)

Resolved,

That provision (including provision having retrospective effect) may be made-

(a) for cases where venture capital trusts are wound up;

(b) for mergers (including takeovers) of venture capital trusts;

(c) for disapplying, or restricting the application of, section 842AA(5B) of the Income and Corporation Taxes Act 1988.

50. Stamp duty (land in disadvantaged areas)

Resolved,

That provision may be made about stamp duty on a conveyance or transfer of an estate or interest in land situated wholly or partly in a disadvantaged area, or on a lease of such land.

51. Stamp duty (withdrawal of group relief)

Resolved,

That the following provisions shall have effect for the period beginning with 24th April 2002 and ending 31 days after the earliest of the dates mentioned in section 50(2) of the Finance Act 1973-

(1) Paragraph (2) of this Resolution shall apply where-

(a) an instrument ("the relevant instrument") transferring land in the United Kingdom from one company ("the transferor company") to another ("the transferee company") has been stamped on the basis that group relief applies,

(b) before the end of the period of two years beginning with the date on which the instrument was executed the transferee company ceases to be a member of the same group as the transferor company, and

(c) at the time when it ceases to be a member of the same group as the transferor company it holds an estate or interest in land-

(i) that was transferred to it by the relevant instrument, or

(ii) that is derived from an estate or interest that was so transferred,

and that was not subsequently transferred to it by a duly stamped instrument for which group relief was not claimed.

(2) In those circumstances-

(a) group relief in relation to the relevant instrument, or an appropriate proportion of it, is withdrawn, and

(b) the stamp duty that would have been payable on stamping the relevant instrument but for group relief if the estate or interest in land transferred by that instrument had been transferred at market value, or an appropriate proportion of the duty that would have been so paid, is payable by the transferee company within 30 days after that company ceases to be a member of the same group as the transferor company.

(3) In paragraph (2) of this Resolution "an appropriate proportion" means an appropriate proportion having regard to what was transferred by the relevant instrument and what the transferee company holds at the time it ceases to be a member of the same group as the transferor company.

(4) In this Resolution "group relief" means relief under any of the following provisions-

(a) section 42 of the Finance Act 1930 or section 11 of the Finance Act (Northern Ireland) 1954;

(b) section 151 of the Finance Act 1995.

(5) In this Resolution-

(a) references to the transfer of land include the grant or surrender of an estate or interest in or over land;

(b) "company" includes any body corporate; and

(c) references to a company being in the same group as another company are to the companies being associated bodies corporate within the meaning of the relevant group relief provision.

(6) Where the relevant instrument transfers land in the United Kingdom together with other property, the provisions of this Resolution apply as if there were two separate instruments, one relating to land in the United Kingdom and the other relating to other property.

(7) Paragraph (2) of this Resolution does not apply if the transferee company ceases to be a member of the same group as the transferor company by reason of the latter company leaving the group.

(8) The transferor company is regarded as leaving the group if the companies cease to be members of the same group by reason of a transaction relating to shares in-

(a) the transferor company, or

(b) another company that as a result of the transaction ceases to be a member of the same group as the transferee company.

(9) Paragraph (2) of this Resolution does not apply if-

(a) the transferee company ceases to be a member of the same group as the transferor company as a result of an acquisition of shares by another company ("the parent company") in relation to which acquisition relief applies, and

(b) the transferee company is immediately after that acquisition a member of the same group as the parent company ("the new group").

(10) For this purpose-

(a) "acquisition relief" means relief under section 75 of the Finance Act 1986; and

(b) references to an acquisition in relation to which such relief applies are to an acquisition such that an instrument effecting the transfer of the shares is exempt from stamp duty by virtue of that provision.

(11) But if before the end of the period of two years beginning with the date on which the relevant instrument was executed-

(a) the transferee company ceases to be a member of the new group, and

(b) at the time when it ceases to be a member of the new group it holds an estate or interest in land that-

(i) was transferred to it by the relevant instrument, or

(ii) is derived from an estate or interest that was so transferred,

and that was not subsequently transferred to it by a duly stamped instrument for which group relief was not claimed,

the provisions of this Resolution shall apply as if the company had then ceased to be a member of the same group as the transferor company.

(12) Where an amount of duty is payable under this Resolution, interest on that amount is payable as from the end of the period of 30 days from the day on which the relevant instrument was executed.

(13) The provisions of section 15A(3) to (5) of the Stamp Act 1891 apply in relation to interest under paragraph (13) of this Resolution.

(14) The transferee company shall, within the period of 30 days mentioned in paragraph (2)(b) of this Resolution within which payment is to be made, notify the Commissioners of-

(a) the date on which it ceased to be a member of the same group as the transferor company,

(b) the relevant land held by it at that time,

(c) the nature of the relevant instrument, the date on which it was executed, the parties to the instrument and the date on which the instrument was stamped,

(d) the market value of the land transferred to it by the relevant instrument at the date on which that instrument was executed, and

(e) the amount of duty and interest payable by it under this Resolution.

(15) In paragraph (14)(b) of this Resolution the "relevant land" held by the transferee company means every estate or interest in relation to which paragraph (1)(c) of this Resolution applies.

(16) Section 98 of the Taxes Management Act 1970 shall have effect as if a reference to paragraph (14) of this Resolution were inserted in the second column of the Table in subsection (5) of that section.

(17) The provisions of regulations under section 98 of the Finance Act 1986, and the provisions of the Taxes Management Act 1970 applied by those regulations, have effect with the necessary modifications in relation to-

(a) the determination by the Commissioners of the duty payable under this Resolution or the interest payable thereon,

(b) appeals against any such determination, and

(c) the collection and recovery of any such duty or interest,

as if it were an amount of stamp duty reserve tax.

(18) This paragraph applies where-

(a) an amount is payable under this Resolution by the transferee company,

(b) a notice of determination of the amount payable has been issued by the Commissioners, and

(c) the whole or part of that amount is unpaid six months after the date on which it became payable.

(19) The following persons may, by notice under paragraph (22) of this Resolution, be required to pay the unpaid amount-

(a) any company that at any relevant time was a member of the same group as the transferee company, and

(b) any person who at any relevant time was a controlling director of the transferee company or of a company having control of the transferee company.

(20) For this purpose a "relevant time" means any time between the execution of the relevant instrument and the transferee company ceasing to be a member of the same group as the transferor company.

(21) In paragraph (19) of this Resolution-

(a) "director", in relation to a company, has the meaning given by section 168(8) of the Income and Corporation Taxes Act 1988 (read with subsection (9) of that section) and includes any person falling within section 417(5) of that Act (read with subsection (6) of that section); and

(b) "controlling director", in relation to a company, means a director of the company who has control of it (construing control in accordance with section 416 of that Act).

(22) The Commissioners may serve a notice on a person within paragraph (19) of this Resolution requiring him, within 30 days of the service of the notice, to pay the amount that remains unpaid.

(23) Any such notice must be served before the end of the period of three years beginning with the date on which the notice of determination mentioned in paragraph (18)(b) of this Resolution is issued.

(24) The notice must state the amount required to be paid by the person on whom the notice is served.

(25) The notice has effect-

(a) for the purposes of the recovery from that person of the amount required to be paid and of interest on that amount, and

(b) for the purposes of appeals,

as if it were a notice of determination and that amount were an amount of stamp duty reserve tax due from that person.

(26) A person who has paid an amount in pursuance of a notice under paragraph (22) of this Resolution may recover that amount from the transferee company.

(27) A payment in pursuance of such a notice is not allowed as a deduction in computing any income, profits or losses for any tax purposes.

(28) The Commissioners may by notice require any person to furnish them within such time, not being less than 30 days, as may be specified in the notice with such information (including documents or records) as the Commissioners may reasonably require for the purposes of this Resolution.

(29) A barrister or solicitor shall not be obliged in pursuance of a notice under paragraph (28) of this Resolution to disclose, without his client's consent, any information with respect to which a claim to professional privilege could be maintained.

(30) Section 98 of the Taxes Management Act 1970 shall have effect as if a reference to paragraph (28) of this Resolution were inserted in the first column of the Table in subsection (5) of that section.

(31) This Resolution shall be construed as one with the Stamp Act 1891.

(32) This Resolution shall apply where the relevant instrument is executed after 23rd April 2002.

(33) But this Resolution does not apply to an instrument giving effect to a contract made on or before 17th April 2002, unless-

(a) the instrument is made in consequence of the exercise after that date of any option, right of pre-emption or similar right, or

(b) the instrument transfers the property in question to, or vests it in, a person other than the purchaser under the contract because of an assignment (or, in Scotland, assignation) or further contract made after that date.

(34) This Resolution shall come into force on 24th April 2002.

And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of section 50 of the Finance Act 1973.

52. Stamp duty (restriction of relief for company acquisitions)

Resolved,

That the following provisions shall have effect for the period beginning with 24th April 2002 and ending 31 days after the earliest of the dates mentioned in section 50(2) of the Finance Act 1973-

(1) Section 76 of the Finance Act 1986 shall be amended as follows.

(2) In subsection (2) for "the condition mentioned in subsection (3) below" substitute "the first and second conditions (as defined below)".

(3) In subsection (3) for "The condition" substitute "The first condition".

(4) After subsection (3) insert-

"(3A) The second condition applies only in relation to an instrument transferring land in the United Kingdom and is that the acquiring company is not associated with another company that is a party to arrangements with the target company relating to shares of the acquiring company issued in connection with the transfer of the undertaking or part.

(3B) Where an instrument transfers land in the United Kingdom together with other property, the provisions of this section apply as if there were two separate instruments, one relating to land in the United Kingdom and the other relating to other property.".

(5) In subsection (5) for "subsection (2) above" (twice) substitute "this section".

(6) After subsection (6) insert-

"(6A) For the purposes of subsection (3A) above-

(a) companies are associated if one has control of the other or both are controlled by the same person or persons, and

(b) "arrangements" includes any scheme, agreement or understanding, whether or not legally enforceable.".

The references in paragraph (a) above to control shall be construed in accordance with section 416 of the Taxes Act 1988.".

(7) This Resolution shall apply to instruments executed after 23rd April 2002.

(8) But this Resolution does not apply to an instrument giving effect to a contract made on or before 17th April 2002, unless-

(a) the instrument is made in consequence of the exercise after that date of any option, right of pre-emption or similar right, or

(b) the instrument transfers the property in question to, or vests it in, a person other than the purchaser under the contract because of an assignment (or, in Scotland, assignation) or further contract made after that date.

(9) This Resolution shall come into force on 24th April 2002.

And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of section 50 of the Finance Act 1973.

53. Stamp duty (withdrawal of relief for company acquisitions)

Resolved,

That the following provisions shall have effect for the period beginning with 24th April 2002 and ending 31 days after the earliest of the dates mentioned in section 50(2) of the Finance Act 1973-

(1) Paragraph (2) of this Resolution shall apply where-

(a) an instrument ("the relevant instrument") transferring land in the United Kingdom from one company to another company ("the acquiring company") has been stamped on the basis that relief under section 76 of the Finance Act 1986 ("section 76 relief") applies,

(b) before the end of the period of two years beginning with the date on which the instrument was executed control of the acquiring company changes, and

(c) at the time control of that company changes the acquiring company holds an estate or interest in land-

(i) that was transferred to it by the relevant instrument, or

(ii) that is derived from an estate or interest so transferred,

and that was not subsequently transferred to it by a duly stamped instrument on which ad valorem duty was paid and in relation to which section 76 relief was not claimed.

(2) In those circumstances-

(a) section 76 relief in relation to the relevant instrument, or an appropriate proportion of it, is withdrawn, and

(b) the additional stamp duty that would have been payable on stamping the relevant instrument but for section 76 relief if the estate or interest in land transferred by that instrument had been transferred at market value, or an appropriate proportion of that additional duty, is payable by the acquiring company within 30 days after control of that company changes.

(3) In paragraph (2) of this Resolution "an appropriate proportion" means an appropriate proportion having regard to what was transferred by the relevant instrument and what the acquiring company holds at the time control of it changes.

(4) In this Resolution-

(a) references to the transfer of land include the grant or surrender of an estate or interest in or over land;

(b) "control" shall be construed in accordance with section 416 of the Income and Corporation Taxes Act 1988; and

(c) references to control of a company changing are to the company becoming controlled-

(i) by a different person,

(ii) by a different number of persons, or

(iii) by two or more persons at least one of whom is not the person, or one of the persons, by whom the company was previously controlled.

(5) Where the relevant instrument transfers land in the United Kingdom together with other property, the provisions of this Resolution apply as if there were two separate instruments, one relating to land in the United Kingdom and the other relating to other property.

(6) Paragraph (2) of this Resolution does not apply by reason of control of the acquiring company changing as a result of any of the transactions listed in the Schedule to the Stamp Duty (Exempt Instruments) Regulations 1987.

(7) Paragraph (2) of this Resolution does not apply by reason of control of the acquiring company changing as a result of a transfer of shares ("the intra-group transfer") in relation to which group relief applies.

(8) For this purpose-

(a) "group relief" means relief under section 42 of the Finance Act 1930 or section 11 of the Finance Act (Northern Ireland) 1954; and

(b) references to a transfer in relation to which group relief applies are to a transfer such that an instrument effecting the transfer is exempt from stamp duty by virtue of either of the group relief provisions.

(9) But if before the end of the period of two years beginning with the date on which the relevant instrument was executed-

(a) a company ("company B") holding shares in the acquiring company to which the intra-group share transfer related, or that are derived from shares to which that instrument related, ceases to be a member of the same group as the company referred to in section 76 as the target company ("company C"), and

(b) the acquiring company, at that time, holds an estate or interest in land-

(i) that was transferred to it by the relevant instrument, or

(ii) that is derived from an estate or interest so transferred,

and that was not subsequently transferred to it by a duly stamped instrument on which ad valorem duty was paid and in relation to which section 76 relief was not claimed,

the following provisions apply.

(10) In those circumstances-

(a) section 76 relief in relation to the relevant instrument (or an appropriate proportion of that relief) is withdrawn, and

(b) the additional stamp duty that would have been paid on stamping the relevant instrument but for that relief if the land in question had been transferred by that instrument at market value, or an appropriate proportion of that amount, is payable by the acquiring company within 30 days after company B ceases to be a member of the same group as company C.

(11) In paragraphs (7) to (10) of this Resolution-

(a) "company" includes any body corporate; and

(b) references to a company being in the same group as another company are to the companies being associated bodies corporate within the meaning of the relevant group relief provision.

(12) Paragraph (2) of this Resolution does not apply by reason of control of the acquiring company changing as a result of a transfer of shares ("the exempt transfer") to another company ("the parent company") in relation to which share acquisition relief applies.

(13) For this purpose-

(a) "share acquisition relief" means relief under section 77 of the Finance Act 1986; and

(b) references to a transfer in relation to which such relief applies are to a transfer such that an instrument effecting the transfer is exempt from stamp duty by virtue of that provision.

(14) But if before the end of the period of two years beginning with the date on which the relevant instrument was executed-

(a) control of the parent company changes at a time when that company holds any shares transferred to it by the exempt transfer, or any shares derived from shares so transferred, and

(b) the acquiring company, at that time, holds an estate or interest in land-

(i) that was transferred to it by the relevant instrument, or

(ii) that is derived from an estate or interest so transferred,

and that was not subsequently transferred to it by a duly stamped instrument on which ad valorem duty was paid and in relation to which section 76 relief was not claimed,

the following provisions apply.

(15) In those circumstances-

(a) section 76 relief in relation to the relevant instrument (or an appropriate proportion of that relief) is withdrawn, and

(b) the additional stamp duty that would have been paid on stamping the relevant instrument but for that relief if the land in question had been transferred by that instrument at market value, or an appropriate proportion of that additional duty, is payable by the acquiring company within 30 days after control of the parent company changed.

(16) Where an amount of duty is payable under this Resolution, interest on that amount is payable as from the end of the period of 30 days from the day on which the relevant instrument was executed.

(17) The provisions of section 15A(3) to (5) of the Stamp Act 1891 apply in relation to interest under paragraph (16) of this Resolution.

(18) The acquiring company shall, within the period of 30 days within which payment is to be made, notify the Commissioners of-

(a) the date on which the event occurred by reason of which it is liable to make a payment of duty under this Resolution,

(b) the relevant land held by it at that time,

(c) the nature of the relevant instrument, the date on which it was executed, the parties to the instrument and the date on which the instrument was stamped,

(d) the market value of the land transferred to it by the relevant instrument at the date on which that instrument was executed, and

(e) the amount of duty and interest payable by it.

(19) In paragraph (18)(b) of this Resolution the "relevant land" held by the acquiring company means every estate or interest in relation to which paragraph (1)(c) of this Resolution applies.

(20) Section 98 of the Taxes Management Act 1970 shall have effect as if a reference to paragraph (18) of this Resolution were inserted in the second column of the Table in subsection (5) of that section.

(21) The provisions of regulations under section 98 of the Finance Act 1986, and the provisions of the Taxes Management Act 1970 applied by those regulations, have effect with the necessary modifications in relation to-

(a) the determination by the Commissioners of the duty payable under this Resolution or the interest payable thereon,

(b) appeals against any such determination, and

(c) the collection and recovery of any such duty or interest,

as if it were an amount of stamp duty reserve tax.

(22) This paragraph applies where-

(a) an amount is payable under this Resolution by the acquiring company,

(b) a notice of determination of the amount payable has been issued by the Inland Revenue, and

(c) the whole or part of that amount is unpaid six months after the date on which it became payable.

(23) The following persons may, by notice under paragraph (26) of this Resolution, be required to pay the unpaid amount-

(a) any company that at any relevant time was a member of the same group as the acquiring company, and

(b) any person who at any relevant time was a controlling director of the acquiring company or of a company having control of the acquiring company.

(24) For this purpose a "relevant time" means any time between the execution of the relevant instrument and the change of control by virtue of which the liability to pay the amount arises.

(25) In paragraph (23) of this Resolution-

(a) references to companies being in the same group are to one company having control of the other or both companies being under the control of the same person or persons;

(b) "director", in relation to a company, has the meaning given by section 168(8) of the Income and Corporation Taxes Act 1988 (read with subsection (9) of that section) and includes any person falling within section 417(5) of that Act (read with subsection (6) of that section); and

(c) "controlling director", in relation to a company, means a director of the company who has control of it.

(26) The Commissioners may serve a notice on a person within paragraph (23) of this Resolution requiring him, within 30 days of the service of the notice, to pay the amount that remains unpaid.

(27) Any such notice must be served before the end of the period of three years beginning with the date on which the notice of determination mentioned in paragraph (22)(b) is issued.

(28) The notice must state the amount required to be paid by the person on whom the notice is served.

(29) The notice has effect-

(a) for the purposes of the recovery from that person of the amount required to be paid and of interest on that amount, and

(b) for the purposes of appeals,

as if it were a notice of determination and that amount were an amount of stamp duty reserve tax due from that person.

(30) A person who has paid an amount in pursuance of a notice under paragraph (26) of this Resolution may recover that amount from the acquiring company.

(31) A payment in pursuance of such a notice is not allowed as a deduction in computing any income, profits or losses for any tax purposes.

(32) The Commissioners may by notice require any person to furnish them within such time, not being less than 30 days, as may be specified in the notice with such information (including documents or records) as the Commissioners may reasonably require for the purposes of this Resolution.

(33) A barrister or solicitor shall not be obliged in pursuance of a notice under paragraph (32) of this Resolution to disclose, without his client's consent, any information with respect to which a claim to professional privilege could be maintained.

(34) Section 98 of the Taxes Management Act 1970 shall have effect as if a reference to paragraph (32) of this Resolution were inserted in the first column of the Table in subsection (5) of that section.

(35) This Resolution shall be construed as one with the Stamp Act 1891.

(36) This Resolution shall apply where the relevant instrument is executed after 23rd April 2002.

(37) But this Resolution does not apply to an instrument giving effect to a contract made on or before 17th April 2002, unless-

(a) the instrument is made in consequence of the exercise after that date of any option, right of pre-emption or similar right, or

(b) the instrument transfers the property in question to, or vests it in, a person other than the purchaser under the contract because of an assignment (or, in Scotland, assignation) or further contract made after that date.

(38) This Resolution shall come into force on 24th April 2002.

And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of section 50 of the Finance Act 1973.

54. Stamp duty (contracts for sale of land)

Resolved,

That provision may be made with respect to stamp duty on contracts or agreements for the sale of an estate or interest on land.

55. Stamp duty (abolition on instruments relating to goodwill)

Resolved,

That the following provisions shall have effect for the period beginning 23rd April 2002 and ending 31 days after the earliest of the dates mentioned in section 50(2) of the Finance Act 1973-

(1) No stamp duty shall be chargeable on an instrument for the sale, transfer or other disposition of goodwill.

(2) The provisions of paragraphs (3) to (7) of this Resolution shall apply where stamp duty under Part 1 of Schedule 13 to the Finance Act 1999 is chargeable on an instrument that relates partly to goodwill and partly to property other than goodwill.

(3) In such a case-

(a) the consideration in respect of which duty would otherwise be charged shall be apportioned, on a just and reasonable basis, as between the goodwill and the other property, and

(b) the instrument shall be charged only in respect of the consideration attributed to the other property.

(4) Where part of the property referred to in section 58(1) of the Stamp Act 1891 consists of goodwill, that provision shall have effect as if "the parties think fit" read "is just and reasonable".

(5) Where part of the property referred to in section 58(2) of the Stamp Act 1891 consists of goodwill, and both or (as the case may be) all the relevant persons are connected with one another, that provision shall have effect as if the words from "for distinct parts of the consideration" to the end of the subsection read ", the consideration shall be apportioned in such manner as is just and reasonable, so that a distinct consideration for each separate part or parcel is set forth in the conveyance relating thereto, and such conveyance is to be charged with ad valorem duty in respect of such distinct consideration.".

(6) In a case where paragraph (4) or (5) of this Resolution applies and the consideration is apportioned in a manner that is not just and reasonable, the enactments relating to stamp duty shall have effect as if-

(a) the consideration had been apportioned in a manner that is just and reasonable, and

(b) the amount of any distinct consideration set forth in any conveyance relating to a separate part or parcel of property were such amount as is found by a just and reasonable apportionment (and not the amount actually set forth).

(7) For the purposes of paragraph (5) of this Resolution-

(a) a person is a relevant person if he is a person by or for whom the property is contracted to be purchased;

(b) the question whether persons are connected with one another shall be determined in accordance with section 839 of the Income and Corporation Taxes Act 1988.

(8) Goodwill shall be disregarded for the purposes of paragraph 6 of Schedule 13 to the Finance Act 1999.

(9) Any statement as mentioned in paragraph 6(1) of that Schedule shall be construed as leaving out of account any matter which is to be so disregarded.

(10) Section 12 of the Finance Act 1895 does not require any person who is authorised to purchase any property as mentioned in that section after 23rd April 2002 to include any goodwill in the instrument of conveyance required by that section to be produced to the Commissioners.

(11) If the property consists wholly of goodwill no instrument of conveyance need be produced to the Commissioners under that section.

(12) Paragraphs (1) to (9) of this Resolution shall apply to instruments executed on or after 23rd April 2002.

(13) Paragraphs (10) and (11) of this Resolution shall apply where the Act mentioned in that section, and by virtue of which property is vested or a person is authorised to purchase property, is passed after 23rd April 2002.

(14) In this Resolution "the enactments relating to stamp duty" means the Stamp Act 1891 and any enactment amending that Act or that is to be construed as one with that Act.

And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of section 50 of the Finance Act 1973.

56. Inheritance tax (powers over settled property or a settlement)

Resolved,

That provision may be made amending the Inheritance Tax Act 1984 in relation to powers over, or exercisable (whether directly or indirectly) in relation to, settled property or a settlement.

57. Rate of landfill tax

Resolved,

That-

(1) In section 42(1)(a) and (2) of the Finance Act 1996, for "£12" there shall be substituted "£13".

(2) This Resolution shall have effect in relation to taxable disposals made, or treated as made, on or after 1st April 2002.

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.

58. Climate change levy (combined heat and power stations and renewable sources)

That provision may be made in relation to electricity produced in combined heat and power stations or from renewable sources.

59. Climate change levy (incorrect certificates)

Resolved,

That-

(1) In Schedule 6 to the Finance Act 2000, in sub-paragraph (2)(a) of paragraph 101-

(a) in sub-paragraph (ii) for "18 and 21, or" there shall be substituted "15, 18 and 21,";

(b) before the word "and" at the end of sub-paragraph (iii) there shall be inserted "or

(iv) a reduced-rate supply (or reduced-rate supplies),".

(2) This Resolution shall apply in relation to certificates given in respect of any supplies made on or after 24th April 2002.

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.

60. Climate change levy (invoices incorrectly showing levy due)

Resolved,

That provision may be made about the issuing of invoices that show an amount chargeable as climate change levy where no levy is chargeable in respect of the supply in question, or the amount so chargeable is less than the amount shown.

61. Aggregates tax (amendments to provisions exempting spoil etc)

Resolved,

That-

(1) In section 17(3) of the Finance Act 2001-

(a) in paragraph (e) after "or other by-products" there shall be inserted ", not including the overburden,";

(b) after that paragraph there shall be inserted-

"(f) it consists wholly of the spoil from any process by which-

(i) coal, lignite, slate or shale, or

(ii) a substance listed in section 18(3) below,

has been separated from other rock after being extracted or won with that other rock;".

(2) Section 17(4)(b) of that Act shall be omitted.

(3) This Resolution shall be deemed to have come into force on 1st April 2002.

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.

62. Aggregates levy (crushing and cutting rock)

Resolved,

That-

(1) The following provisions of the Finance Act 2001 shall be omitted-

(a) section 17(3)(a);

(b) in section 20(1)-

(i) the words "and is not rock" in paragraphs (a) and (b), and

(ii) paragraph (c);

(c) section 21(2)(b);

(d) section 24(6)(b) and (8)(a).

(2) In section 18(2)(a) of that Act, for "dimension stone" there shall be substituted "stone with one or more flat surfaces".

(3) This Resolution shall be deemed to have come into force on 1st April 2002.

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.

63. Aggregates levy (miscellaneous amendments)

Motion made, and Question put,

That-

(1) In section 197(2) of the Finance Act 1996, in paragraph (h)(ii) for "paragraph 8(3)(a)" there shall be substituted "paragraphs 6 and 8(3)(a)".

(2) In section 16(1) of the Finance Act 2001, for "A levy" there shall be substituted "A tax".

(3) In section 17 of that Act-

(a) for paragraph (2)(d) there shall be substituted-

"(d) it is aggregate that on the commencement date is on a site other than-

(i) its originating site, or

(ii) a site that is required to be registered under the name of a person who is the operator, or one of the operators, of that originating site.";

(b) in subsection (3)(d)(ii), for "otherwise than wholly or mainly" there shall be substituted "not";

(c) in subsection (4)(d)-

(i) after "the Petroleum Act 1998" there shall be inserted "or the Petroleum (Production) Act (Northern Ireland) 1964 (c. 28 (N.I.))";

(ii) the words from "otherwise" to the end shall be omitted.

(4) In section 18 of that Act-

(a) in subsection (2)(c), for "some other substance" there shall be substituted "anything else";

(b) in subsection (3), paragraphs (d) and (h) shall be omitted.

(5) In section 19 of that Act-

(a) in subsection (2)(b) for the words from "who is the operator" to the end there shall be substituted "under whose name that originating site is also registered";

(b) after subsection (3) there shall be inserted-

"(3A) For the purposes of subsection (3)(a) above "business" includes any activity of a Government department, local authority or charity.";

(c) in subsection (4), for the words "adjacent land" in both places there shall be substituted "other land".

(6) In section 22 of that Act, at the end of subsection (2) there shall be inserted-

"For the purposes of this subsection "business" includes any activity of a Government department, local authority or charity.".

(7) In section 24(6) of that Act, after paragraph (c) there shall be inserted-

"(ca) for mixing, otherwise than in permitted circumstances (within the meaning given by section 19(7)), any aggregate with any material or substance other than water,".

(8) In section 37(7) of that Act, paragraphs (g) to (j) shall be omitted.

(9) In paragraph 1 of Schedule 4 of that Act-

(a) for sub-paragraph (1) there shall be substituted-

"(1) An unregistered person who-

(a) is required to be registered for the purposes of aggregates levy, or

(b) has formed the intention of carrying out taxable activities that are registrable,

shall notify the Commissioners of that fact.

(1A) An unregistered person who-

(a) would be required to be registered for the purposes of aggregates levy but for an exemption by virtue of regulations under section 24(4) of this Act, or

(b) has formed the intention of carrying out taxable activities that would be registrable but for such an exemption,

shall, in such cases or circumstances as may be prescribed in the regulations, notify the Commissioners of that fact.

(1B) For the purposes of sub-paragraphs (1) and (1A) above, taxable activities are "registrable" if a person carrying them out is, by reason of doing so, required by section 24(2) of this Act to be registered for the purposes of aggregates levy.";

(b) in sub-paragraphs (2) and (5), after "sub-paragraph (1)" there shall be inserted "or (1A)".

(10) In paragraph 11(2) of Schedule 8 to that Act, paragraphs (f), (g) and (h) shall be omitted.

(11) This Resolution shall be deemed to have come into force on 1st April 2002.

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.

As an Amendment to Mr Chancellor of the Exchequer's proposed Motion (Aggregates Levy (miscellaneous amendments)):

Mr Alex Salmond

Mr Elfyn Llwyd

Leave out paragraph (11) and insert-

"( ) That any provision for the enforcement of the aggregates levy shall not have effect until a full environmental and economic impact assessment has been made relating to each country and region within the United Kingdom.".

The House divided: Ayes 319, Noes 32.

Debate in Parliament | Historical Hansard | Source |