Budget Resolutions and Economic Situation — 16. Value added tax (meaning of "business") — 15 Mar 1999

Resolved,

That--

(1) In section 7(1) of the Betting and Gaming Duties Act 1981, for "26.50 per cent." there shall be substituted "17.50 per cent."

(2) This Resolution has effect in relation to bets the stake money on which is paid on or after 28th March 1999.

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 sub-paragraph (2) of paragraph 1 of Schedule 1 to the Vehicle Excise and Registration Act 1994, for "£150" there shall be substituted "£155".

(2) This Resolution has effect in relation to licences issued after 9th March 1999.

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,

(3) In sections 13(3)(b), 35A(5)(b) and 36(3)(b) of that Act, and in section 13(4)(b) of that Act as substituted under paragraph 8 of Schedule 4 to that Act, for the words "paragraph 1 of Schedule 1", in each place where they occur, there shall be substituted "paragraph 1(2) of Schedule 1".

(4) This Resolution has effect in relation to any licence taken out for a period beginning on or after 1st June 1999.

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 Schedule 1 to the Vehicle Excise and Registration Act 1994 be amended as follows--

(1) In sub-paragraph (2A)(b) of paragraph 6, for "£4,670" there shall be substituted "£4,170".

(2) In sub-paragraph (3) of that paragraph, for "38,000 kilograms" there shall be substituted "41,000 kilograms".

(3) For the Table in paragraph 9(1) there shall be substituted--

Revenue weight of vehicle Rate

(1) Exceeding (2) Not exceeding (3) Two axle vehicle (4) Three axle vehicle (5) Four or more axle vehicle

kgs kgs £ £ £

3,500 7,500 160 160 160

7,500 12,000 300 300 300

12,000 13,000 470 490 350

13,000 14,000 650 490 350

14,000 15,000 840 490 350

15,000 17,000 1,320 490 350

17,000 19,000 1,600 850 350

19,000 21,000 1,600 1,020 350

21,000 23,000 1,600 1,470 510

23,000 25,000 1,600 2,320 830

25,000 27,000 1,600 2,340 1,470

27,000 29,000 1,600 2,340 2,320

29,000 31,000 1,600 2,340 3,360

31,000 44,000 1,600 2,340 4,400

(4) In paragraph 9A(3), for "£4,670" there shall be substituted "£4,170".

(5) For the Table in paragraph 9B there shall be substituted--

Revenue weight of vehicle Rate

(1) Exceeding (2) Not exceeding (3) Two axle vehicle (4) Three axle vehicle (5) Four or more axle vehicle

kgs kgs £ £ £

3,500 7,500 155 155 155

7,500 12,000 155 155 155

12,000 13,000 155 155 155

13,000 14,000 155 155 155

14,000 15,000 155 155 155

15,000 17,000 320 155 155

17,000 19,000 600 155 155

19,000 21,000 600 155 155

21,000 23,000 600 470 155

23,000 25,000 600 1,230 155

25,000 27,000 600 1,340 470

27,000 29,000 600 1,340 1,320

29,000 31,000 600 1,340 2,360

31,000 44,000 600 1,340 3,400

(6) For the Table in paragraph 11(1) there shall be substituted--

Revenue weight of tractive unit Rate for tractive unit with two axles Rate for tractive unit with three or more axles

(1) (2) (3) (4) (5) (6) (7) (8)

Exceeding Not exceeding Any number of semi-trailer axles 2 or more semi-trailer axles 3 or more semi-trailer axles Any number of semi-trailer axles 2 or more semi-trailer axles 3 or more semi-trailer axles

kgs kgs £ £ £ £ £ £

3,500 7,500 160 160 160 160 160 160

7,500 12,000 300 300 300 300 300 300

12,000 16,000 460 460 460 460 460 460

16,000 20,000 520 460 460 460 460 460

20,000 23,000 810 460 460 460 460 460

23,000 26,000 1,190 590 460 590 460 460

26,000 28,000 1,190 1,130 460 1,130 460 460

28,000 31,000 1,740 1,740 1,090 1,740 660 460

31,000 33,000 2,530 2,530 1,740 2,530 1,000 460

33,000 34,000 5,170 5,170 1,740 2,530 1,470 570

34,000 35,000 5,170 5,170 2,840 2,530 2,100 860

35,000 36,000 6,750 6,750 2,840 2,530 2,100 860

36,000 38,000 9,250 9,250 3,210 2,820 2,820 1,280

38,000 41,000 9,250 9,250 5,750 4,250 4,250 2,500

41,000 44,000 9,250 9,250 5,750 7,250 7,250 1,280

(8) For the Table in paragraph 11B there shall be substituted--

Revenue weight of tractive unit Rate for tractive unit with two axles Rate for tractive unit with three or more axles

(1) (2) (3) (4) (5) (6) (7) (8)

Exceeding Not exceeding Any number of semi-trailer axles 2 or more semi-trailer axles 3 or more semi-trailer axles Any number of semi-trailer axles 2 or more semi-trailer axles 3 or more semi-trailer axles

kgs kgs £ £ £ £ £ £

3,500 7,500 155 155 155 155 155 155

7,500 12,000 155 155 155 155 155 155

12,000 16,000 155 155 155 155 155 155

16,000 20,000 155 155 155 155 155 155

20,000 23,000 155 155 155 155 155 155

23,000 26,000 190 155 155 155 155 155

26,000 28,000 190 155 155 155 155 155

28,000 31,000 740 740 155 740 155 155

31,000 33,000 1,530 1,530 740 1,530 155 155

33,000 34,000 4,170 4,170 740 1,530 470 155

34,000 35,000 4,170 4,170 1,840 1,530 1,100 155

35,000 36,000 5,750 5,750 1,840 1,530 1,100 155

36,000 38,000 8,250 8,250 2,210 1,820 1,820 280

38,000 41,000 8,250 8,250 4,750 3,250 3,250 1,500

41,000 44,000 8,250 8,250 4,750 6,250 6,250 280

(9) Subject to the following paragraphs of this Resolution, the preceding paragraphs apply in relation to licences taken out after 9th March 1999.

(10) Paragraph (11) below applies where--

(a) a pre-commencement licence was taken out for a goods vehicle at a rate applicable to a vehicle with a revenue weight falling within a specified range of weights; and

(b) the revenue weight of the vehicle at any time on or after 17th April 1999 (though still within the specified range of weights mentioned in paragraph (a) above) is one which, for the purposes of taking out a licence for that vehicle after 9th March 1999, would fall in a range of weights attracting a rate of duty higher than that attracted by the vehicle's licensed weight.

(11) For the purposes of section 15 of the Vehicle Excise and Registration Act 1994 any use of the vehicle on a public road at a time on or after 17th April 1999 when its revenue weight falls within paragraph (10)(b) above shall be treated as a use of the vehicle so as to subject it to a rate of duty higher than that at which the pre-commencement licence was taken out.

(12) Paragraph (13) below applies where--

(a) a pre-commencement licence was taken out for a goods vehicle at a rate applicable to a vehicle with a revenue weight falling within a specified range of weights;

(b) the revenue weight of the vehicle is increased at a time after 9th March 1999; and

(c) the revenue weight of the vehicle immediately after the increase (though still within the specified range of weights mentioned in paragraph (a) above) is one which, for the purposes of taking out a licence for that vehicle after 9th March 1999, would fall in a range of weights attracting a rate of duty higher than that attracted by the vehicle's licensed weight.

(13) For the purposes of section 15 of the Vehicle Excise and Registration Act 1994 any use of the vehicle on a public road after the increase in its revenue weight shall be treated (if it would not otherwise be so treated by virtue of paragraph (11) above) as a use of the vehicle so as to subject it to a rate of duty higher than that at which the pre-commencement licence was taken out.

(14) In this Resolution--

"licensed weight", in relation to a vehicle, means the revenue weight of the vehicle at the time when the

pre-commencement licence for that vehicle was taken out; and

"pre-commencement licence" means a licence taken out on or before 9th March 1999 and in force after that date.

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 about the drawback of excise duty on goods shipped as stores or warehoused in an excise warehouse for use as stores.

Resolved,

That provision may be made about value added tax in respect of supplies or importations which relate to gold.

12. Value added tax (bad debt relief: assignment)

Resolved,

That--

(1) In section 36 of the Value Added Tax Act 1994, for subsection (3) there shall be substituted--

"(3) In subsection (2) above 'the outstanding amount' means--

(a) if at the time of the claim no part of the consideration written off in the claimant's accounts as a bad debt has been received, an amount equal to the amount of the consideration so written off;

(b) if at that time any part of the consideration so written off has been received, an amount by which that part is exceeded by the amount of the consideration written off;

and in this subsection 'received' means received either by the claimant or, except in such circumstances as may be prescribed, by a person to whom has been assigned a right to receive the whole or any part of the consideration written off."

(2) Until such day as the Commissioners may specify in regulations made under section 36 of that Act, Part XIX of the Value Added Tax Regulations 1995, except regulation 171, shall be read as if a reference to a payment being received by the claimant were a reference to a payment being received either by the claimant or by a person to whom a right to receive it has been assigned.

(3) This Resolution has effect for the purposes of the making of any refund or repayment after 9th March 1999, but does not have effect in relation to anything received on or before that day.

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(5) of the Value Added Tax Act 1994.

14. Value added tax (groups of companies)

Resolved,

That provision may be made about groups of companies in relation to value added tax.

15. Value added tax (repayment supplement)

Resolved,

That--

(1) Section 79 of the Value Added Tax Act 1994 shall be amended as follows.

(2) In subsection (2)(b), for the words "the period of 30 days beginning on the date of the receipt by the Commissioners of that return or claim" there shall be substituted "the relevant period".

(3) After subsection (2) there shall be inserted--

"(2A) The relevant period in relation to a return or claim is the period of 30 days beginning with the later of--

(a) the day after the last day of the prescribed accounting period to which the return or claim relates, and

(b) the date of the receipt by the Commissioners of the return or claim."

(4) In subsections (3) and (7), for "subsection (2)(b)" there shall be substituted "subsection (2A)"; and regulations under subsection (3) shall be construed accordingly.

(5) This Resolution has effect in relation to returns and claims received by the Commissioners on or after 9th March 1999.

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 for the repeal of section 94(3) of the Value Added Tax Act 1994.

17. Income tax (starting rate)

Motion made, and Question put,

(10) In section 832(1) of that Act--

(a) the following shall be substituted for the definition of "lower rate"--

"'lower rate', in relation to the charging of income tax for any year of assessment, means the rate of income tax specified in or determined in pursuance of section 1A(1B);", and

(b) the following shall be inserted after the definition of "Schedule A business"--

"'starting rate', in relation to the charging of income tax for any year of assessment, means the rate of income tax determined in pursuance of section 1(2)(aa), and any reference to the starting rate limit shall be construed in accordance with section 1(2A);".

(11) In section 7(6) of the Taxes Management Act 1970, for "or the lower rate" there shall be substituted ", the lower rate or the starting rate".

(12) In section 91(3)(c) of that Act, for "or the lower rate" there shall be substituted ", the lower rate or the starting rate".

(13) The preceding paragraphs apply for the year 1999-00 and subsequent years of assessment.

(14) Nothing in this Resolution shall require any change to be made in the amounts deductible or repayable under section 203 of the Income and Corporation Taxes Act 1988 before 18th May 1999.

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 divided: Ayes 334, Noes 40.

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