Steve Barclay
Main Page: Steve Barclay (Conservative - North East Cambridgeshire)Department Debates - View all Steve Barclay's debates with the Department for Transport
(4 years, 8 months ago)
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Neil Parish
The hon. Member has very much made his point, and I suspect that our Ministers and the Secretary of State have listened to what he said, and I suspect that there will be complete clarity from the Government, as I would expect nothing else.
Neil Parish
And, of course, I know the Chief Secretary very well.
I am encouraged by the tireless efforts of NHS staff, and I very much pay tribute to what the hon. Member for Lewisham East (Janet Daby) said: we need to thank medical staff throughout the NHS for all the excellent work that they are doing to tackle coronavirus because it is unprecedented, though we can make all sorts of predictions. We need to be out there and sort it out. That is why the Government have introduced clear measures that will help.
We are going to come under greater pressure over the coming weeks and months, so I welcome the £5 billion emergency response outlined in the Budget. The funding will ensure that the NHS will receive the support that it needs. Even with that large sum of money, we will probably need to keep it under review. I welcome, too, the Government’s commitment to support local councils—the £500 million hardship fund will help local authorities to protect the most vulnerable members of our community. The Government, however, must ensure that that funding is readily available and distributed quickly. We must cut bureaucracy to ensure that individuals and businesses get the support that they need. Very often, we are laudable in this place—Governments of all colours always want to take action—but we must make sure that we take action quickly.
Many local businesses have contacted me rightly to express concern about how covid-19 will affect them. Government measures to suspend business rates and refund sick-pay payments for smaller firms are welcome, but the Government need to be ready to provide more emergency payments to support those businesses. My fear, especially for smaller and, indeed, all types of businesses, is that if they cannot pay their bills the knock-on effect on all other businesses and employees will be huge. This is unprecedented, and we need to take action.
The scientific knowledge and understanding of the virus are constantly changing. We need to ensure that the Government have the flexibility to adapt as the situation unfolds. Across Devon, we have seen an outpouring of offers of support for all those affected. I wish all charities and organisations well across the country, especially in my constituency, so that they come together and keep communities together, because we will very much need to do so through this very, very challenging time. As many Members have said in the House, it is probably the most challenging time that anyone has experienced in living memory, especially because the virus has the potential to lay the whole economy low.
In the Budget, we predicted that the economy would grow by 1.1% this year. It will be interesting to see the effect of coronavirus on that. I would say to the Opposition, who will naturally pour a little doubt on the economy, that in both the coalition and Conservative Governments we have turned the country round with the hard work of the British people. We have turned the economy round, so that we can go forward and spend this money on infrastructure in particular. At the moment, interest rates are low, and we have the ability, according to the Chancellor, to take up loans over 15 years, so we can set reasonably low interest rates for them, all being well, over that period. We need to upgrade our rail and road infrastructure, and deliver broadband across the country, and now is the time to do it. I have said in three or four elections that I am going to deliver broadband to the whole constituency, but I think my constituents are still waiting. I do not want to have to go to them in another election and say about the promise of broadband, “It’s coming—it’s still definitely coming!” Seriously, we have to make sure that we deliver that, as the issue has a huge effect on our economy and businesses as well as on our ability to deliver good business opportunities in the countryside. With the right broadband infrastructure and a very good broadband connection, many businesses can be run anywhere in the countryside.
Naturally, I am delighted that the Chancellor maintained the availability of red diesel for farmers in particular, but also for commercial ferries and fishing boats. It is absolutely vital that we maintain that at this particular moment. Agriculture has seen one of the wettest, if not the wettest, winter of all time, and there are huge challenges. That brings me neatly to the doubling of the money for flood defences to £5.2 billion over the next five years. We have to work out what we are going to do about flood protection. The Environment Agency needs to be absolutely clear about what it is and is not going to defend. We may have long periods of dry weather, but when we have rain it comes quickly and we get a lot of flooding. I look forward to putting the money to good use, but we must be clear about where we are going to spend it.
I am happy to see that £2.5 billion will be made available to fix potholes. Perhaps not at the moment, given the coronavirus, but in normal times, believe it or not, one gets as many letters about potholes as anything else. There are as many roads in Devon as in the whole of Belgium, so imagine the number of potholes. One or two constituents have lost wheels and various other parts of their cars going over them, so it becomes a major issue.
I was very keen to see the money for the A303 and the tunnel under Stonehenge. If my hon. Friend the Member for Salisbury (John Glen) were here, he would be delighted. Edward du Cann talked about the A303 in 1958, and it has still not been dualled. We now have the opportunity to build the tunnel and the rest of the dualling from Andover right the way down to Ilminster. I would then like the last piece from Ilminster to Honiton to be done, but I will wait for that to happen. We must get the diggers actually digging the road and delivering. It is important that not only do we put these roads and rail in our Budgets but that we actually deliver them. That is what people want.
I welcome the £1.5 billion in capital spending on further education colleges. There are FE colleges in Axminster, Honiton, Cullompton and Tiverton, and they provide a very good education, including for those who left school young and perhaps did not know exactly what they wanted to do with their lives. They go to further education colleges later in life and do good things for themselves, their families and the country.
The Chief Secretary to the Treasury (Steve Barclay)
I thank the hon. Member for Bootle (Peter Dowd) for his warm welcome to me in my new role. I join him in paying tribute to the number of excellent maiden speeches that we have heard today. The first was by my hon. Friend the Member for South West Hertfordshire (Mr Mohindra). It was fitting that he paid tribute to his predecessor David Gauke, who was not only respected across the House but very much liked and respected within the Treasury as an institution.
In an excellent speech, my hon. Friend the Member for Blyth Valley (Ian Levy) spoke about his personal experience of working for two decades in our NHS. He must be particularly proud of everything that the NHS is now doing as we face the challenges ahead.
The hon. Member for Liverpool, West Derby (Ian Byrne) gave a strong speech about the need for bold action on covid-19. I assure him that the Chancellor will be true to his word when he says that we will do everything needed in response to the situation. The hon. Gentleman’s speech shows that he will be a valuable colleague representing Liverpool, together with his Front-Bench colleagues.
In a first-class speech, my hon. Friend the Member for Bolton North East (Mark Logan) said that this great House exists exactly for times like these. I could not agree with him more. He will be a fantastic addition to the House, and in particular his experience from his time in the Foreign Office will be valuable in the weeks and months ahead.
My hon. Friend the Member for Derbyshire Dales (Miss Dines) pointed out that she is the first woman to represent her constituency, just as you, Madam Deputy Speaker, were the first woman to chair a Budget. My hon. Friend invited my right hon. Friend the Prime Minister to join in with the Shrovetide football next year. I appreciate that my right hon. Friend the Prime Minister has quite a lot on, but knowing my hon. Friend the Member for Chatham and Aylesford (Tracey Crouch) as I do, I am sure that there will be colleagues in the House keen to partake of any football with my hon. Friend the Member for Derbyshire Dales.
The hon. Member for Luton South (Rachel Hopkins) gave an excellent speech about her commitment to her constituency and highlighted issues such as housing, railway electrification, bus routes and the climate emergency. It is clear from the range of contributions from new Members that they will all contribute considerably to the House in the weeks and months ahead.
It is no surprise to me, in closing the debate on the Budget, that many of the contributions from Members from all parties have focused less on the text from last week and more on the national challenge of our economic response to coronavirus. Both my right hon. Friend the Secretary of State for Transport and the shadow Secretary of State, the hon. Member for Middlesbrough (Andy McDonald), struck a constructive tone in their opening remarks, recognising their collaboration in meeting the challenge. Many other Secretaries of State have been similarly collaborating with their counterparts. On behalf of the Government, I should say that their approach has been much appreciated.
I very much agree with the hon. Member for Middlesbrough that our focus today is, as he said, primarily on the challenge, nationally and internationally, of fighting the virus. He was also right to recognise that it is no fault of the Chancellor that much has happened since last week and that since the Budget we have needed to move further. My right hon. Friend the Chancellor will update the House shortly and will respond to the legitimate point that the hon. Gentleman raised in his opening remarks.
At the Budget, my right hon. Friend the Chancellor said that he would do
“everything we can to keep this country, and our people, healthy and financially secure.”—[Official Report, 11 March 2020; Vol. 673, c. 278.]
At that time, less than a week ago, that involved a £12 billion temporary and targeted set of measures to respond to coronavirus, supporting public services, individuals and businesses. My right hon. Friend will shortly update the House on the further measures required to provide a comprehensive, co-ordinated and coherent response to the serious and evolving situation that we face.
As my right hon. Friend has said, we will do whatever it takes to give the British people the tools to get through this challenge. I can also announce that the Government are postponing the reforms to the off-payroll working rules IR35 from April 2020 to 6 April 2021. The Government will therefore not move the original resolution tonight, but will shortly table an additional resolution confirming that we will reintroduce the off-payroll working rules provisions by amending the Bill, with a commencement date of the 6 April 2021. This is a deferral in response to the ongoing spread of covid-19 to help businesses and individuals. This is a deferral, not a cancellation, and the Government remain committed to reintroducing this policy to ensure that people who are working like employees, but through their own limited company, pay broadly the same tax as those employed directly.
Let me turn in the remaining time to a number of key measures within the Budget, which, for understandable reasons, have perhaps received less focus in the course of the debate in light of recent events. [Interruption.] In particular, infrastructure links people to jobs, delivers products to markets and underpins supply chains and, indeed, supports domestic and international trade. Better roads, better rail and better internet connections enable businesses and individuals to work more quickly, cheaply and efficiently. While more quality infrastructure boosts social well-being, it means less time stuck on motorways—[Interruption.]
Madam Deputy Speaker (Dame Eleanor Laing)
Order. The House is too noisy. As I said with regard to Mr Dowd, the House must listen to the Minister.
Steve Barclay
Infrastructure is an issue that concerns all Members of the House. We are committed in this Budget to boosting productivity and to levelling up opportunity across all regions within our United Kingdom. Indeed, my right hon. Friend the Chancellor set out half a trillion pounds of investment in our public sector, and the Government will bring those plans together in the forthcoming national infrastructure strategy. We already know a lot of the details. For example, there is the commitment to the Northern Powerhouse Rail to enable faster more frequent services between northern cities. In February, the Prime Minister announced that we will proceed with High Speed 2, and last Wednesday, the Chancellor confirmed a £27 billion investment in strategic roads and motorways, the UK’s biggest ever outlay.
At the same time, we are investing £5 billion to support the roll-out of gigabit-capable broadband, starting with rural communities that have felt excluded up to now, binding all parts of the country closer together in the virtual realm and connecting global Britain to the global marketplace.
Alongside the big ticket eye-catching projects, the Budget also focused on meeting the most pressing local needs, whether that is the £2.5 billion for potholes, the £1.2 billion to support local transport infrastructures or, indeed, the funding for bus routes, trunk roads, cycle paths, trams, and park-and-ride schemes that all have the potential to make a transformative difference at a local level. Together it represents an infrastructure transformation that brings faster speeds and greater capacity and that would breathe new life into communities across our United Kingdom.
This transformation is not only about making every town and city more productive, but about recognising their uniqueness of character. Each place in this country has its own quirks and curiosities, traditions and traits that people depend on and draw strength from. Levelling up is about respecting and retaining those brilliant characteristics and making sure that each town keeps hold of its civic soul, while helping every region and nation of the United Kingdom make of its best. The Government know that civic pride and regional identity matter, and we want to bring about a strong and vibrant connected community where people choose to live and work. It is for that reason that my right hon. Friend the Chancellor set out in the Budget the largest affordable homes programme in a decade, with £12 billion in additional funding to support home ownership. My right hon. Friend the Secretary of State for Housing, Communities and Local Government has already laid out our proposals to bring Britain’s planning system into the 21st century.
Although this is the end of the Budget debate from last week, many of the speeches have looked forward to the challenges ahead posed by covid-19 and its impact on our health, our businesses and our resolve. Much has changed over the past week and people are worried and their livelihoods are at risk. That is why my right hon. Friend the Chancellor will update the House shortly on the further measures that we intend to take. I commend this Budget to the House.
Question put and agreed to.
Resolved,
That income tax is charged for the tax year 2020-21.
And it is 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 Deputy Speaker put forthwith the Questions necessary to dispose of the motions made in the name of the Chancellor of the Exchequer (Standing Order No. 51(3))
Madam Deputy Speaker (Dame Eleanor Laing)
I must inform the House that for the purposes of Standing Order 83U and on the basis of material put before him, Mr Speaker has certified that in his opinion motion No. 2 on income tax main rates relates to England, Wales and Northern Ireland, and is within devolved legislative competence. If the House should decide to divide on this motion, it will be subject to double majority voting. “Car Appropriate percentage Car with CO2 emissions figure of 0 0% Car with CO2 emissions figure of 1 - 50 Car with electric range figure of 130 or more Car with electric range figure of 70 - 129 Car with electric range figure of 40 - 69 Car with electric range figure of 30 - 39 Car with electric range figure of less than 30 0% 3% 6% 10% 12% Car with CO2 emissions figure of 51 - 54 13% Car with CO2 emissions figure of 55 - 59 14% Car with CO2 emissions figure of 60 - 64 15% Car with CO2 emissions figure of 65 - 69 16% Car with CO2 emissions figure of 70 - 74 17%” “Disability assistance for children and young people SS(S)A 2018 Sections 24 and 31” “Job start ETA 1973 Section 2”. “Scottish child payment SS(S)A 2018 Section 79”. 1 Cigarettes An amount equal to the higher of— (a) 16.5% of the retail price plus £237.34 per thousand cigarettes, or (b) £305.23 per thousand cigarettes. 2 Cigars £296.04 per kilogram 3 Hand-rolling tobacco £253.33 per kilogram 4 Other smoking tobacco and chewing tobacco £130.16 per kilogram 5 Tobacco for heating £243.95 per kilogram” “CO2 emissions figure Rate (1) (2) (3) (4) Exceeding Not exceeding Reduced rate Standard rate g/km g/km £ £ 100 110 10 20 110 120 20 30 120 130 115 125 130 140 140 150 140 150 155 165 150 165 195 205 165 175 230 240 175 185 255 265 185 200 295 305 200 225 320 330 225 255 555 565 255 — 570 580”. “CO2 emissions figure Rate (1) (2) (3) (4) Exceeding Not exceeding Reduced rate Standard rate g/km g/km £ £ 0 50 0 10 50 75 15 25 75 90 100 110 90 100 125 135 100 110 145 155 110 130 165 175 130 150 205 215 150 170 530 540 170 190 860 870 190 225 1295 1305 225 255 1840 1850 255 — 2165 2175”. “CO2emissions figure Rate (1) (2) (3) Exceeding Not exceeding Rate g/km g/km £ 0 50 25 50 75 110 75 90 135 90 100 155 100 110 175 110 130 215 130 150 540 150 170 870 170 190 1305 190 225 1850 225 255 2175 255 — 2175”. Taxable commodity supplied Rate at which levy payable if supply is not a reduced-rate supply Electricity £0.00811 per kilowatt hour Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility £0.00406 per kilowatt hour Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state £0.02175 per kilogram Any other taxable commodity £0.03174 per kilogram”.
2. Income tax (main rates)
Resolved,
That for the tax year 2020-21 the main rates of income tax are as follows—
(a) the basic rate is 20%,
(b) the higher rate is 40%, and
(c) the additional rate is 45%.
And it is 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.
3. Income tax (default and savings rates)
Resolved,
That—
(1) For the tax year 2020-21 the default rates of income tax are as follows—
(a) the default basic rate is 20%,
(b) the default higher rate is 40%, and
(c) the default additional rate is 45%.
(2) For the tax year 2020-21 the savings rates of income tax are as follows—
(a) the savings basic rate is 20%,
(b) the savings higher rate is 40%, and
(c) the savings additional rate is 45%.
And it is 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.
4. Income tax (starting rate limit for savings)
Resolved,
That section 21 of the Income Tax Act 2007 (indexation) does not apply in relation to the starting rate limit for savings for the tax year 2020-21 (so that the starting rate limit for savings remains at £5,000 for that tax year).
And it is 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.
5. Main rate of corporation tax for financial year 2020
Resolved,
That—
(1) For the financial year 2020 the main rate of corporation tax is 19%.
(2) Accordingly, omit section 7(2) of the Finance (No.2) Act 2015 (which is superseded by the provision made by paragraph (1) of this Resolution).
And it is 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.
6. Corporation tax (charge and main rate for financial year 2021)
Resolved,
That (notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills) provision may be made—
(a) for corporation tax to be charged for the financial year 2021, and
(b) for the main rate of corporation tax for that year to be 19%.
8. Taxable benefits (appropriate percentage for a car: tax year 2020-21 onwards)
Resolved,
That—
(1) Chapter 6 of Part 3 of the Income Tax (Earnings and Pensions) Act 2003 (taxable benefits: cars etc) is amended as follows.
(2) In section 136 (car with a CO2 emissions figure: post- September 1999 registration)—
(a) in subsection (2A)—
(i) after “figure” insert “in a case where the car is first registered before 6 April 2020”,
(ii) for “light-duty” substitute “light”, and
(iii) for “an EC certificate of conformity” substitute “the EC certificate of conformity or UK approval certificate”, and
(b) after subsection (2A) insert—
“(2B) For the purpose of determining the car’s CO2 emissions figure in a case where the car is first registered on or after 6 April 2020, ignore any values specified in the EC certificate of conformity or UK approval certificate that are not WLTP (worldwide harmonised light vehicle test procedures) values.”
(3) In section 137 (car with a CO2 emissions figure: bi-fuel cars)—
(a) in subsection (2A)—
(i) after “figure” insert “in a case where the car is first registered before 6 April 2020”,
(ii) for “light-duty” substitute “light”, and
(iii) for “an EC certificate of conformity” substitute “the EC certificate of conformity or UK approval certificate”, and
(b) after subsection (2A) insert—
“(2B) For the purpose of determining the car’s CO2 emissions figure in a case where the car is first registered on or after 6 April 2020, ignore any values specified in the EC certificate of conformity or UK approval certificate that are not WLTP (worldwide harmonised light vehicle test procedures) values.”
(4) In section 139 (car with a CO2 emissions figure)—
(a) for subsection (2) substitute—
“(2) For the purposes of subsection (1) and the table—
(a) if a CO2 emissions figure is not a whole number, round it down to the nearest whole number, and
(b) if an electric range figure is not a whole number, round it up to the nearest whole number.”, and
(b) after subsection (5) insert—
“(5A) For the purpose of determining the electric range figure for a car first registered before 6 April 2020, ignore any WLTP (worldwide harmonised light vehicle test procedures) values specified in an EC certificate of conformity, an EC type approval certificate or a UK approval certificate.
(5B) For the purpose of determining the electric range figure for a car first registered on or after 6 April 2020, ignore any values specified in an EC certificate of conformity, an EC type approval certificate or a UK approval certificate that are not WLTP (worldwide harmonised light vehicle test procedures) values.”
(5) The amendments made by this Resolution have effect for the tax year 2020-21 and subsequent tax years.
And it is 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.
9. Taxable benefits (appropriate percentage for a car: tax year 2020-21 only)
Resolved,
That—
(1) For the tax year 2020-21, Chapter 6 of Part 3 of the Income Tax (Earnings and Pensions) Act 2003 (taxable benefits: cars etc) has effect with the following modifications.
(2) In section 139 (car with a CO2 emissions figure: the appropriate percentage)—
(a) in the table in subsection (1), in the second column of the entry for a car with a CO2 emissions figure of 0, for “2%” substitute “0%”, and (b) in subsection (7) before paragraph (a) insert—
“(za) section 139A (recently registered cars),”.
(3) After section 139 insert—
“139A Section 139: recently registered car with CO2 emissions figure
In its application in relation to a car that is first registered on or after 6 April 2020, section 139 has effect as if—
for the table in subsection (1) there were substituted—
(b) in subsection (3)(a) for “20%” there were substituted “18%”.”
(4) In section 140 (car without a CO2 emissions figure: the appropriate percentage) in subsection (3)(a) for “2%” substitute “0%”.
And it is 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.
10. Taxable benefits (cars)
Resolved,
That (notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills) provision taking effect in a future year may be made amending the provisions of Chapter 6 of Part 3 of the Income Tax (Earnings and Pensions) Act 2003 that concern the determination of the appropriate percentage for a car.
11. Income tax (apprenticeship bursaries paid to persons leaving local authority care)
Resolved,
That provision may be made providing that no liability to income tax arises on certain bursaries paid to persons leaving care and starting an apprenticeship.
12. Income tax (certain Scottish social security benefits)
Resolved,
That—
(1) Table B in section 677(1) of the Income Tax (Earnings and Pensions) Act 2003 (UK social security benefits wholly exempt from income tax) is amended as follows.
(2) In Part 1 (benefits payable under primary legislation etc), insert each of the following at the appropriate place—
(3) In Part 2 (benefits payable under regulations), insert the following at the appropriate place—
(4) The amendments made by this Resolution have effect for the tax year 2020-21 and subsequent tax years.
And it is 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.
13. Income tax (social security benefits)
Resolved,
That provision may be made conferring power on the Treasury to exempt certain social security benefits from income tax.
14. Income tax (payments in respect of expenses of voluntary office-holders)
Resolved,
That—
(1) After section 299A of the Income Tax (Earnings and Pensions) Act 2003 insert—
“299B Voluntary office-holders: payments in respect of expenses
(1) No liability to income tax arises in respect of a payment to a person who holds a voluntary office if the payment is in respect of reasonable expenses incurred in carrying out the duties of that office.
(2) It does not matter whether—
(a) the payment is an advance payment or a reimbursement;
(b) the person who makes the payment is the person with whom the office is held.
(3) Subsections (2) and (3) of section 299A apply for the purposes of subsection (1) of this section as they apply for the purposes of subsection (1) of that section.”
(2) In section 299A(3)(a) of the Income Tax (Earnings and Pensions) Act 2003 (voluntary office-holders: compensation for lost employment income) after “payment” insert “(whether an advance payment or a reimbursement)”.
(3) The amendments made by this Resolution have effect for the tax year 2020-21 and subsequent tax years.
And it is 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.
15. Loan charge
Resolved,
That provision may be made—
(a) substituting a reference to 9 December 2010 for the reference to 6 April 1999 in paragraph 1(1)(b) of Schedule 11 to the Finance (No.2) Act 2017 and in paragraph 1(2)(a)(i) of Schedule 12 to that Act,
(b) enabling a person to elect for the tax consequences of Schedules 11 and 12 to the Finance (No.2) Act 2017 to be split over three tax years,
(c) eliminating or reducing the tax consequences for a person of Schedules 11 and 12 to the Finance (No.2) Act 2017 in certain cases where the person was chargeable to income tax for the tax year 2015-16 or an earlier tax year on an amount that was referable to a loan or quasi-loan,
(d) providing relief from late payment interest for a person who is chargeable to income tax on an amount by reason of Schedule 11 or 12 to the Finance (No.2) Act 2017 or who would be so chargeable but for the provision mentioned in paragraph (a) or (c),
(e) substituting a reference to 1 October 2020 for the reference to 1 October 2019 in paragraph 35C(2)(b) of Schedule 11 to the Finance (No.2) Act 2017 and in paragraph 22(2)(b) of Schedule 12 to that Act, and
(f) enabling the Commissioners for Her Majesty’s Revenue and Customs to repay, or waive the payment of, certain amounts that—
(i) have been paid to them, have been treated as paid to them, or are due to be paid to them under certain agreements made with them in a specified period commencing no earlier than 16 March 2016 and ending no later than 10 March 2020, and
(ii) are referable to certain loans or quasi-loans made on or after 6 April 1999 and before 6 April 2016.
16. Pensions annual allowance charge (tapered reduction of allowance)
Resolved,
That provision may be made about the reduction of the annual allowance in the case of high-income individuals.
17. Capital gains tax (entrepreneurs’ relief)
Resolved,
That provision may be made about relief under Chapter 3 of Part 5 of the Taxation of Chargeable Gains Act 1992.
18. Capital gains tax (relief on disposal of private residence)
Resolved,
That—
(1) The Taxation of Chargeable Gains Act 1992 is amended as follows.
(2) In section 222 (relief on disposal of private residence)—
(a) after subsection (5) insert—
“(5A) But a notice or further notice under subsection (5)(a) determining which of 2 or more residences is an individual’s main residence for any period may be given more than 2 years from the beginning of the period if during the period the individual has not held an interest of more than a negligible market value in more than one of the residences.”,
(b) in subsection (7) (a) (disposal of dwelling-house to a spouse or civil partner)—
(i) for “the dwelling-house” substitute “a dwelling-house”, and
(ii) omit “which is their only or main residence”,
(c) in subsection (8A) (when living accommodation is job-related for a person) after paragraph (b) insert “; or
(c) an armed forces accommodation allowance for or towards costs of the accommodation is paid to, or in respect of, the person or the person’s spouse or civil partner”, and
(d) in subsection (8D) (interpretation) after paragraph (b) insert “; and
(c) “armed forces accommodation allowance” means an allowance which is exempt from income tax by reason of section 297D of ITEPA 2003.”
(3) In section 223 (amount of relief)—
(a) in subsections (1) and (2)(a) for “18 months” substitute “9 months”, and
(b) omit subsection (4).
(4) After section 223 insert—
“223ZA Amount of relief: individual’s residency delayed by certain events
(1) Subsection (4) below applies where—
(a) a gain to which section 222 applies accrues to an individual on the disposal of, or of an interest in, a dwelling-house or part of a dwelling-house,
(b) the time at which the dwelling-house or the part of the dwelling-house first became the individual’s only or main residence (“the moving-in time”) was within the first 24 months of the individual’s period of ownership,
(c) at no time during the period beginning with the individual’s period of ownership and ending with the moving-in time was the dwelling-house or the part of the dwelling-house another person’s residence, and
(d) during the period beginning with the individual’s period of ownership and ending with the moving-in time a qualifying event occurred.
(2) The following are qualifying events—
(a) the completion of the construction, renovation, redecoration or alteration of the dwelling-house or the part of the dwelling house mentioned in subsection (1);
(b) the disposal by the individual of, or of an interest in, any other dwelling-house or part of a dwelling-house that immediately before the disposal was the individual’s only or main residence.
(3) In determining whether and, if so, when a qualifying event within subsection (2)(b) occurred, ignore section 28 (time of disposal where asset disposed of under contract).
(4) For the purposes of subsections (1) and (2) of section 223, as they have effect in relation to the gain, the dwelling-house or the part of the dwelling-house mentioned in subsection (1) above is to be treated as having been the individual’s only or main residence from the beginning of the individual’s period of ownership until the moving-in time.”
(5) After section 223A insert—
“223B Additional relief: part of private residence let as accommodation
(1) Where—
(a) a gain to which section 222 applies accrues to an individual on the disposal of, or of an interest in, a dwelling-house or part of a dwelling-house, and
(b) at any time in the individual’s period of ownership the condition in subsection (2) is met in respect of the dwelling house, the part of the gain that is within subsection (3) is a chargeable gain only to the extent, if any, to which it exceeds the amount in subsection (4).
(2) The condition is that—
(a) part of the dwelling-house is the individual’s only or main residence, and
(b) another part of the dwelling-house is being let by the individual as residential accommodation.
(3) The part of the gain that is within this subsection is the part that (but for subsection (1)) would be a chargeable gain by reason of the fact that, at the times in the individual’s period of ownership when the condition in subsection (2) is met, the individual’s only or main residence does not include the part of the dwelling-house that is being let as residential accommodation.
(4) The amount is whichever is the lesser of—
(a) the amount of the gain that is not a chargeable gain by virtue of section 223, and
(b) £40,000.
(5) Where by reason of section 222(7)(a) the individual’s period of ownership mentioned in subsection (1) begins with the beginning of the period of ownership of another person, any question whether the condition in subsection (2) is met at a time that is within both those periods of ownership is to be determined as if the references in subsection (2) to the individual were to that other person.”
(6) In section 224 (amount of relief: further provisions)—
(a) in the heading for “Amount of relief” substitute “Relief under sections 223 and 223B”,
(b) in subsection (1)—
(i) for “the gain”, in the first place those words occur, substitute “a gain to which section 222 applies”,
(ii) for “section 223” substitute “sections 223 and 223B”,
(c) in subsection (2) for “section 223” substitute “sections 223 and 223B”, and
(d) in subsection (3) for “Section 223” substitute “Sections 223 and 223B”.
(7) In section 225E (disposals by disabled persons or persons in care homes etc) in subsection (4) for “18 months” substitute “9 months”.
(8) In section 248E(6) (relief on disposal of joint interests in private residence) for “and 223” substitute “, 223 and 223B”.
(9) The amendment made by paragraph (2)(a) of this Resolution has effect in relation to a notice given on or after 6 April 2020.
(10) The amendments made by paragraph (2)(b) of this Resolution have effect in a case where the disposal or death mentioned in subsection (7)(a) of section 222 of the Taxation of Chargeable Gains Act 1992 is made or occurs on or after 6 April 2020.
(11) The amendments made by paragraphs (3) to (8) of this Resolution have effect in relation to disposals made on or after 6 April 2020.
And it is 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.
19. Corporate capital losses
Resolved,
That provision (including provision having retrospective effect) may be made relating to capital losses made by companies.
20. Corporation tax (instalment payments)
Resolved,
That provision may be made amending regulation 3 of the Corporation Tax (Instalment Payments) Regulations 1998.
21. Relief from capital gains tax for loans to traders
Resolved,
That provision may be made restricting the operation of section 253(1)(b) of the Taxation of Chargeable Gains Act 1992 to loans made before 24 January 2019.
22. Corporation tax (research and development expenditure credit)
Resolved,
That (notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills) provision may be made increasing the percentage in section 104M(3) of the Corporation Tax Act 2009 to 13%.
23. Capital allowances (structures and buildings allowances)
Resolved,
That provision (including provision having retrospective effect) may be made in relation to allowances under Part 2A of the Capital Allowances Act 2001.
24. Intangible fixed assets (pre-FA 2002 assets etc)
Resolved,
That provision may be made—
(a) amending Chapter 16 of Part 8 of the Corporation Tax Act 2009, and
(b) restricting the debits to be brought into account by a company for tax purposes in respect of certain intangible fixed assets acquired on or after 1 July 2020.
25. UK property businesses etc carried on by non-UK resident companies
Resolved,
That provision (including provision having retrospective effect) may be made, in consequence of Schedule 1 or 5 to the Finance Act 2019, in relation to non-UK resident companies that carry on UK property businesses or have other income relating to land in the United Kingdom.
26. Surcharge on banking companies (transferred-in losses)
Resolved,
That provision may be made about the treatment of losses transferred to a banking company from a non-banking company in calculating the surcharge profits of the banking company under Chapter 4 of Part 7A of the Corporation Tax Act 2010.
27. Corporation tax (payment of tax on certain transactions with EEA residents)
Resolved,
That provision (including provision having retrospective effect) may be made for the deferral of the payment of corporation tax arising in connection with certain transactions involving companies resident in an EEA state.
28. Changes to accounting standards affecting leases
Resolved,
That provision (including provision having retrospective effect) may be made amending paragraphs 13(1) and 14 of Schedule 14 to the Finance Act 2019.
29. Enterprise investment scheme (approved investment fund as nominee)
Resolved,
That provision may be made amending section 251 of the Income Tax Act 2007.
30. Gains from contracts for life insurance etc (top slicing relief)
Resolved,
That provision (including provision having retrospective effect) may be made amending sections 535 to 537 of the Income Tax (Trading and Other Income) Act 2005.
31. Losses on disposals of shares
Resolved,
That provision (including provision having retrospective effect) may be made repealing section 134(5) of the Income Tax Act 2007 and section 78(5) of the Corporation Tax Act 2010.
32. Digital services tax
Resolved,
That provision may be made imposing a tax on revenues arising in connection with the provision of a social media service, internet search engine, online marketplace or associated online advertising service.
33. Inheritance tax (property comprised in settlements)
Resolved,
That provision may be made amending the Inheritance Tax Act 1984 in relation to cases where property becomes comprised in a settlement.
34. Inheritance tax (payments to victims of persecution during Second World War)
Resolved,
That provision (including provision having retrospective effect) may be made about inheritance tax relief in respect of payments to victims of persecution during the Second World War era.
35. Stamp duty (unlisted securities and connected persons)
Resolved,
That provision may be made for the purposes of stamp duty in relation to transfers of unlisted securities involving connected persons.
36. Stamp duty reserve tax (unlisted securities and connected persons)
Resolved,
That provision may be made about the application of sections 87, 93 and 96 of the Finance Act 1986 in relation to transfers of unlisted securities involving connected persons.
37. Stamp duty (acquisition of target company’s share capital)
Resolved,
That provision may be made amending section 77A of the Finance Act 1986.
38. Value added tax (call-off stock arrangements)
Resolved,
That—
(1) The Value Added Tax Act 1994 is amended as follows.
(2) After section 14 insert—
“Goods supplied between the UK and member States under call-off stock arrangements
14A Call-off stock arrangements
Schedule 4B (call-off stock arrangements) has effect.”
(3) In section 69 (breaches of regulatory provisions)—
(a) in subsection (1)(a) for “or paragraph 5 of Schedule 3A” substitute “, paragraph 5 of Schedule 3A or paragraph 9(1) or (2)(a) of Schedule 4B”, and
(b) in subsection (2) after “under” insert “paragraph 8 or 9(2)(b) of Schedule 4B or”.
(4) In Schedule 4 (matters to be treated as a supply of goods or services) in
paragraph 6, after sub-paragraph (2) insert—
“(3) Sub-paragraph (1) above is subject to paragraph 2 of Schedule 4B (calloff
stock arrangements).”
(5) After Schedule 4A insert—
“SCHEDULE 4B
Section 14A
CALL-OFF STOCK ARRANGEMENTS
Where this Schedule applies
1 (1) This Schedule applies where—
(a) on or after 1 January 2020 goods forming part of the assets of any business are removed—
(i) from the United Kingdom for the purpose of being taken to a place in a member State, or
(ii) from a member State for the purpose of being taken to a place in the United Kingdom,
(b) the goods are removed in the course or furtherance of that business by or under the directions of the person carrying on that business (“the supplier”),
(c) the goods are removed with a view to their being supplied in the destination State, at a later stage and after their arrival there, to another person (“the customer”),
(d) at the time of the removal the customer is entitled to take ownership of the goods in accordance with an agreement existing between the customer and the supplier,
(e) at the time of the removal the supplier does not have a business establishment or other fixed establishment in the destination State,
(f) at the time of the removal the customer is identified for the purposes of VAT in accordance with the law of the destination State and both the identity of the customer and the number assigned to the customer for the purposes of VAT by the destination State are known to the supplier,
(g) as soon as reasonably practicable after the removal the supplier records the removal in the register provided for in Article 243(3) of Council Directive 2006/112/EC of 28
November 2006 on the common system of value added tax, and
(h) the supplier includes the number mentioned in paragraph (f) in the recapitulative statement provided for in Article 262(2) of Council Directive 2006/112/EC.
(2) In this Schedule—
“the destination State” means—
(a) in a case within paragraph (i) of sub-paragraph (1)(a), the member State concerned, and
(b) in a case within paragraph (ii) of sub-paragraph (1) (a), the United Kingdom, and
“the origin State” means—
(a) in a case within paragraph (i) of sub-paragraph (1) (a), the United Kingdom, and
(b) in a case within paragraph (ii) of sub-paragraph (1 )(a), the member State concerned.
Removal of the goods not to be treated as a supply
2 The removal of the goods from the origin State is not to be treated by reason of paragraph 6(1) of Schedule 4 as a supply of goods by the supplier.
Goods supplied to the customer within 12 months of arrival
3 (1) The rules in sub-paragraph (2) apply if—
(a) during the period of 12 months beginning with the day the goods arrive in the destination State the supplier transfers the whole property in the goods to the customer, and
(b) during the period beginning with the day the goods arrive in the destination State and ending immediately before the time of that transfer no relevant event occurs.
(2) The rules are that—
(a) a supply of the goods in the origin State is deemed to be made by the supplier,
(b) the deemed supply is deemed to involve the removal of the goods from the origin State at the time of the transfer mentioned in sub-paragraph (1),
(c) the consideration given by the customer for the transfer mentioned in sub-paragraph (1) is deemed to have been given for the deemed supply, and
(d) an acquisition of the goods by the customer in pursuance of the deemed supply is deemed to take place in the destination State.
(3) For the meaning of a “relevant event”, see paragraph 7.
Relevant event occurs within 12 months of arrival
4 (1) The rules in sub-paragraph (2) apply (subject to paragraph 6) if—
(a) during the period of 12 months beginning with the day the goods arrive in the destination State a relevant event occurs, and
(b) during the period beginning with the day the goods arrive in the destination State and ending immediately before the time that relevant event occurs the supplier does not transfer the whole property in the goods to the customer.
(2) The rules are that—
(a) a supply of the goods in the origin State is deemed to be made by the supplier,
(b) that deemed supply is deemed to involve the removal of the goods from the origin State at the time the relevant event occurs, and
(c) an acquisition of the goods by the supplier in pursuance of that deemed supply is deemed to take place in the destination State.
(3) For the meaning of a “relevant event”, see paragraph 7.
Goods not supplied and no relevant event occurs within 12 months of arrival
5 (1) The rules in sub-paragraph (2) apply (subject to paragraph 6) if during the period of 12 months beginning with the day the goods arrive in the destination State the supplier does not transfer the whole property in the goods to the customer and no relevant event occurs.
(2) The rules are that—
(a) a supply of the goods in the origin State is deemed to be made by the supplier,
(b) the deemed supply is deemed to involve the removal of the goods from the origin State at the beginning of the day following the expiry of the period of 12 months mentioned in sub-paragraph (1), and
(c) an acquisition of the goods by the supplier in pursuance of the deemed supply is deemed to take place in the destination State.
(3) For the meaning of a “relevant event”, see paragraph 7.
Exception to paragraphs 4 and 5: goods returned to origin State
6 The rules in paragraphs 4(2) and 5(2) do not apply if during the period of 12 months beginning with the day the goods arrive in the destination State—
(a) the goods are returned to the origin State by or under the direction of the supplier, and
(b) the supplier records the return of the goods in the register provided for in Article 243 (3) of Council Directive 2006/112/EC.
Meaning of “relevant event”
7 (1) For the purposes of this Schedule each of the following events is a relevant event—
(a) the supplier forms an intention not to supply the goods to the customer (but see sub-paragraph (2)),
(b) the supplier forms an intention to supply the goods to the customer otherwise than in the destination State,
(c) the supplier establishes a business establishment or other fixed establishment in the destination State,
(d) the customer ceases to be identified for the purposes of VAT in accordance with the law of the destination State,
(e) the goods are removed from the destination State by or under the directions of the supplier otherwise than for the purpose of being returned to the origin State, or
(f) the goods are destroyed, lost or stolen.
(2) But the event mentioned in paragraph (a) of sub-paragraph (1) is not a relevant event for the purposes of this Schedule if—
(a) at the time that the event occurs the supplier forms an intention to supply the goods to another person (“the substitute customer”),
(b) at that time the substitute customer is identified for the purposes of VAT in accordance with the law of the destination State,
(c) the supplier includes the number assigned to the substitute customer for the purposes of VAT by the destination State in the recapitulative statement provided for in Article 262 (2) of Council Directive 2006/112/EC, and
(d) as soon as reasonably practicable after forming the intention to supply the goods to the substitute customer the supplier records that intention in the register provided for in Article 243 (3) of Council Directive 2006/112/EC.
(3) In a case where sub-paragraph (2) applies, references in this Schedule to the customer are to be then read as references to the substitute customer.
(4) In a case where the goods are destroyed, lost or stolen but it is not possible to determine the date on which that occurred, the goods are to be treated for the purposes of this Schedule as having been destroyed, lost or stolen on the date on which they were found to be destroyed or missing.
Record keeping by the supplier
8 In a case where the origin State is the United Kingdom, any record made by the supplier in pursuance of paragraph 1(1)(g), 6(b) or 7(2)(d) must be preserved for such period not exceeding 6 years as the Commissioners may specify in writing.
Record keeping by the customer
9 (1) In a case where the destination State is the United Kingdom, the customer must as soon as is reasonably practicable make a record of the information relating to the goods that is specified in Article 54A(2) of Council Implementing Regulation (EU) No. 282/2011 of 15 March 2011 laying down implementing measures for Directive 2006/112/EC on the common system of value added tax.
(2) A record made under this paragraph must—
(a) be made in a register kept by the customer for the purposes of this paragraph, and
(b) be preserved for such period not exceeding 6 years as the Commissioners may specify in writing.”
(6) In Schedule 6 (valuation of supplies: special cases) in paragraph 6(1) in paragraph (c) after “that Schedule” insert “; or
(d) paragraph 4(2)(a) or 5(2)(a) of Schedule 4B”.
(7) The Value Added Tax Regulations 1995 (S.I. 1995/2518) are amended as follows.
(8) In regulation 21 (interpretation of Part 4)—
(a) the existing text becomes paragraph (1), and
(b) after that paragraph insert—
“(2) For the purposes of this Part—
(a) goods are removed from the United Kingdom under call-off stock arrangements if they are removed from the United Kingdom in circumstances where the conditions in paragraphs (a) to (g) of paragraph 1 (1) of Schedule 4B to the Act are met,
(b) references to “the customer” or “the destination State”, in relation to goods removed from the United Kingdom under call-off stock arrangements, are to be construed in accordance with paragraph 1 of Schedule 4B to the Act, and
(c) “call-off stock goods”, in relation to a taxable person, means goods that have been removed from the United Kingdom under call-off stock arrangements by or under the directions of the taxable person.”
(9) After regulation 22 insert—
“22ZA(1) A taxable person must submit a statement to the Commissioners if any of the following events occurs—
(a) goods are removed from the United Kingdom under call-off stock arrangements by or under the directions of the taxable person;
(b) call-off stock goods are returned to the United Kingdom by or under the directions of the taxable person at any time during the period of 12 months beginning with their arrival in the destination State;
(c) the taxable person forms an intention to supply call-off stock goods to a person (“the substitute”) other than the customer in circumstances where—
(i) the taxable person forms that intention during the period of 12 months beginning with the arrival of the goods in the destination State, and
(ii) the substitute is identified for VAT purposes in accordance with the law of the destination State.
(2) The statement must—
(a) be made in the form specified in a notice published by the Commissioners,
(b) contain, in respect of each event mentioned in paragraph (1) which has occurred within the period in respect of which the statement is made, such information as may from time to time be specified in a notice published by the Commissioners, and
(c) contain a declaration that the information provided in the statement is true and complete.
(3) Paragraphs (3), (4) and (6) of regulation 22 have effect for the purpose of determining the period in respect of which the statement must be made, but as if—
(a) in paragraph (3)(a) of regulation 22, for “paragraphs (4) to (6)” there were substituted “paragraphs (4) and (6)”,
(b) in paragraph (3)(a) of regulation 22, for “the EU supply of goods is made” there were substituted “the event occurs”,
(c) in paragraph (4)(a) of regulation 22, for “the supply is made” there were substituted “the event occurs”, and
(d) in paragraph (6) of regulation 22, the reference to paragraph (1) of that regulation were a reference to paragraph (1) of this regulation.
(4) In determining the period in respect of which the statement must be made, the time at which an event mentioned in paragraph (1) (a) of this regulation is to be taken to occur is the time the goods concerned are removed from the United Kingdom (rather than the time the condition mentioned in paragraph (g) of paragraph 1 (1) to Schedule 4B to the Act is met in respect of the removal).”
(10) In regulation 22B (EC sales statements: supplementary)—
(a) in paragraph (1) for the words from “statements”, in the first place it occurs, to “and” substitute “more than one statement is to be submitted under regulations 22 to”,
(b) in paragraph (2) after “22” insert “, 22ZA”, and
(c) in paragraph (3), in the words before paragraph (a), after “22” insert “, 22ZA”.
(11) Regulation 22ZA of the Value Added Tax Regulations 1995 (as inserted by paragraph (9) of this Resolution) is to be treated for the purposes of sections 65 and 66 of the Value Added Tax Act 1994 as having been made under paragraph 2(3) of Schedule 11 to that Act.
And it is 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.
39. Post-duty point dilution of wine or made-wine
Resolved,
That—
(1) After section 55 of the Alcoholic Liquor Duties Act 1979 insert—
“55ZA Post-duty point dilution of wine or made-wine
(1) This section applies if—
(a) wine or made-wine is imported into the United Kingdom or produced in the United Kingdom for sale,
(b) excise duty is chargeable on the wine or made-wine as a result of section 54 or 55,
(c) after the excise duty point in relation to that charge, a person mixes or otherwise adds, at any place in the United Kingdom, water or any other substance to the wine or made-wine in a case where what results (“the new product”) is intended for sale, and
(d) if the addition had taken place immediately before that duty point, the amount of the excise duty would have been greater than the amount actually payable.
(2) The addition attracts a penalty under section 9 of the Finance Act 1994 (civil penalties), and the new product is liable to forfeiture.
(3) This section has effect, despite section 8 of the Isle of Man Act 1979, as if a removal of wine or made-wine to the United Kingdom from the Isle of Man constituted its importation into the United Kingdom (and references to the charge to excise duty as a result of section 54 or 55 and to the excise duty point are to be read accordingly).”
(2) The amendment made by this Resolution has effect in relation to any addition of water or any other substance on or after 1 April 2020.
And it is 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.
40. Rates of tobacco products duty
That—
(1) In Schedule 1 to the Tobacco Products Duty Act 1979 (table of rates of tobacco products duty), for the Table substitute—
“TABLE
(2) The amendment made by this Resolution comes into force at 6pm on 11 March 2020.
And it is 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.
41. Vehicle excise duty (rates)
That—
(1) Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of vehicle excise duty) is amended as follows.
(2) In paragraph 1 (general rate)—
(a) in sub-paragraph (2) (vehicle not covered elsewhere in Schedule with engine cylinder capacity exceeding 1,549cc), for “£265” substitute “£270”, and
(b) in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£160” substitute “£165”.
(3) In paragraph 1B (graduated rates for light passenger vehicles registered before 1 April 2017), for the Table substitute—
(4) In the sentence immediately following the Table in that paragraph, for paragraphs (a) and (b) substitute—
“(a) in column (3), in the last two rows, “320” were substituted for “555” and “570”, and
(b) in column (4), in the last two rows, “330” were substituted for “565” and “580”.”
(5) In paragraph 1GC (graduated rates for first licence for light passenger vehicles registered on or after 1 April 2017), for Table 1 (vehicles other than higher rate diesel vehicles) substitute—
(6) In that paragraph, for Table 2 (higher rate diesel vehicles) substitute—
(7) In paragraph 1GD(1) (rates for any other licence for light passenger vehicles registered on or after 1 April 2017)—
(a) in paragraph (a) (reduced rate), for “£135” substitute “£140”, and
(b) in paragraph (b) (standard rate), for “£145” substitute “£150”.
(8) In paragraph 1GE(2) (rates for light passenger vehicles registered on or after 1 April 2017 with a price exceeding £40,000)—
(a) in paragraph (a), for “£440” substitute “£465”, and
(b) in paragraph (b), for “£450” substitute “£475”.
(9) In paragraph 1J(a) (rates for light goods vehicles that are not pre-2007 or post-2008 lower emission vans), for “£260” substitute “£265”.
(10) In paragraph 2(1) (rates for motorcycles)—
(a) in paragraph (b) (motorbicycles with engine cylinder capacity exceeding 150cc but not exceeding 400cc), for “£43” substitute “£44”,
(b) in paragraph (c) (motorbicycles with engine cylinder capacity exceeding 400cc but not exceeding 600cc), for “£66” substitute “£67”, and
(c) in paragraph (d) (other cases), for “£91” substitute “£93”.
(11) The amendments made by this Resolution have effect in relation to licences taken out on or after 1 April 2020.
And it is 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.
42. Vehicle excise duty (applicable CO2 emissions figure)
Resolved,
That—
(1) In Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty) in paragraph 1GA(5) (meaning of “the applicable CO2 emissions figure”)—
(a) omit “and” at the end of paragraph (a),
(b) in paragraph (b)—
(i) after “figure” insert “of a vehicle first registered before 1 April 2020”,
(ii) for “light-duty” substitute “light”, and
(iii) after “EU certificate of conformity” insert “or UK approval certificate”, and
(c) at the end of paragraph (b) insert “, and
(c) for the purpose of determining the applicable CO2 emissions figure of a vehicle first registered on or after 1 April 2020, ignore any values specified in an EU certificate of conformity or UK approval certificate that are not WLTP (worldwide harmonised light vehicle test procedures) values”.
(2) The amendments made by this Resolution have effect in relation to licences taken out on or after 1 April 2020.
And it is 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.
43. Vehicle excise duty (electric vehicles: extension of exemption)
Resolved,
That—
(1) The Vehicle Excise and Registration Act 1994 is amended as follows.
(2) In paragraph 25 of Schedule 2 (exempt vehicles: light passenger vehicles with low CO2 emissions) omit sub-paragraphs (5) and (6) (no exemption if vehicle price exceeds £40,000 etc).
(3) As a consequence, Part 1AA of Schedule 1 (annual rates of duty: light passenger vehicles registered on or after 1 April 2017) is amended as follows.
(4) In paragraph 1GB (exemption from paying duty on first vehicle licence for certain vehicles)—
(a) in sub-paragraph (1) omit “(2) or”, and
(b) omit sub-paragraph (2).
(5) In paragraph 1GD (rates of duty payable on any other vehicle licence for vehicle), in sub-paragraph (2) omit “or (4)”.
(6) In paragraph 1GE (higher rates of duty: vehicles with a price exceeding £40,000)—
(a) omit sub-paragraphs (3) and (4), and
(b) in sub-paragraph (5) for “sub-paragraphs (2) and (4) do” substitute “Sub-paragraph (2) does”.
(7) In paragraph 1GF (calculating the price of a vehicle), in sub-paragraph (1) omit “and (3)(a)”.
(8) The amendments made by this Resolution come into force on 1 April 2020 but do not apply in relation to licences in force immediately before that date.
And it is 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.
44. Vehicle excise duty (motor caravans)
Resolved,
That—
(1) In the Vehicle Excise and Registration Act 1994, in Part 1AA of Schedule 1 (annual rates of duty: light passenger vehicles registered on or after 1 April 2017), paragraph 1GA is amended as follows.
(2) After sub-paragraph (1) insert—
“(1A) But this Part of this Schedule does not apply to a motor caravan which is first registered, under this Act or under the law of a country or territory outside the United Kingdom, on or after 12 March 2020.”
(3) After sub-paragraph (2) insert—
“(2A) For the purposes of sub-paragraph (1A) a vehicle is a “motor caravan” if the certificate mentioned in sub-paragraph (1) (b) identifies the vehicle as a motor caravan within the meaning of Annex II to Directive 2007/46/EC.”
And it is 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.
45. Vehicle excise duty (exemption in respect of medical courier vehicles)
Resolved,
That—
(1) Schedule 2 to the Vehicle Excise and Registration Act 1994 (exempt vehicles) is amended as follows.
(2) In the heading before paragraph 6, after “Ambulances” insert “, medical courier vehicles”.
(3) After paragraph 6 insert—
“6A (1) A vehicle is an exempt vehicle if—
(a) it is used primarily for the transportation of medical items,
(b) it is readily identifiable as a vehicle used for the transportation of medical items by being marked “Blood” on both sides, and
(c) it is registered under this Act in the name of a charity whose main purpose is to provide services for the transportation of medical items.
(2) In this paragraph—
“charity” means a charity as defined by paragraph 1 of Schedule 6 to the Finance Act 2010;
“medical items” means items intended for use for medical purposes, including in particular—
(a) blood;
(b) medicines and other medical supplies;
(c) items relating to people who are undergoing medical treatment;
“item” includes any substance.”
(4) The amendments made by this Resolution come into force on 1 April 2020.
And it is 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.
46. Hydrocarbon oil duties (private pleasure craft)
Resolved,
That provision may be made as regards the use of rebated fuels in private pleasure craft.
47. Rates of air passenger duty
Resolved,
That (notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills) provision may be made taking effect in a future year increasing the rates of air passenger duty.
48. Amounts of gross gaming yield charged to gaming duty
Resolved,
That provision may be made increasing the amounts of gross gaming yield specified in the table in section 11(2) of the Finance Act 1997.
49. Rates of climate change levy from April 2020
Resolved,
That—
(1) Paragraph 42 of Schedule 6 to the Finance Act 2000 (climate change levy: amount payable by way of levy) is amended as follows.
(2) In sub-paragraph (1), for the table substitute—
“TABLE
(3) In sub-paragraph (1)—
(a) in paragraph (ba) (reduced-rate supplies of electricity), for “7” substitute “8”,
(b) after that paragraph insert—
“(bb) if the supply is a reduced-rate of supply of any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state, 23 per cent of the amount that would be payable if the supply were a supply to which paragraph (a) applies;”, and
(c) in paragraph (c) (other reduced-rate supplies), for “22” substitute “19”.
(4) In consequence of the amendment made by paragraph (3) of this Resolution, in the Notes to paragraph 2 of Schedule 1 to the Climate Change Levy (General) Regulations 2001, for the definition of “r” substitute—
“r= 0.92 in the case of electricity; 0.77 in the case of any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state; and 0.81 in any other case.”
(5) The amendments made by this Resolution have effect in relation to supplies treated as taking place on or after 1 April 2020.
And it is 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.
50. Rates of climate change levy (future years)
Resolved,
That (notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills) provision may be made taking effect in a future year amending the rates of climate change levy.
51. Rates of landfill tax
Resolved,
That—
(1) Section 42 of the Finance Act 1996 (amount of landfill tax) is amended as follows.
(2) In subsection (1)(a) (standard rate), for “£91.35” substitute “£94.15”.
(3) In subsection (2) (reduced rate for certain disposals), in the words after paragraph (b)—
(a) for “£91.35” substitute “£94.15”, and
(b) for “£2.90” substitute “£3”.
(4) The amendments made by this Resolution have effect in relation to disposals made (or treated as made) on or after 1 April 2020.
And it is 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.
52. Carbon emissions tax
Resolved,
That provision may be made about carbon emissions tax.
53. Greenhouse gas emissions trading schemes
Resolved,
That provision may be made for the imposition of charges by the allocation, in return for payment, of allowances under paragraph 5 of Schedule 2 to the Climate Change Act 2008.
54. Import duty (international trade disputes)
Resolved,
That provision may be made amending section 15(1)(b) of the Taxation (Cross-border Trade) Act 2018.
55. Priority of certain HMRC debts on insolvency
Resolved,
That provision may be made conferring, on the insolvency of a person, a priority as regards an amount owed by the person to the Commissioners for Her Majesty’s Revenue and Customs in respect of—
(a) value added tax, or
(b) certain deductions that the person is required to make from a payment made to another person.
56. Joint and several liability of individuals for tax liabilities of companies etc
Resolved,
That provision may be made for individuals to be jointly and severally liable, in certain circumstances involving insolvency or potential insolvency, for amounts payable to the Commissioners for Her Majesty’s Revenue and Customs by bodies corporate or unincorporate.
57. Operation of the general anti-abuse rule
Resolved,
That provision may be made—
(a) about the procedural requirements and time limits for the making of adjustments by virtue of section 209 of the Finance Act 2013, and
(b) amending paragraph 5 of Schedule 43C to that Act.
58. Tax relief for scheme payments etc
Resolved,
That provision (including provision having retrospective effect) may be made for tax relief in respect of—
(a) payments made under or otherwise referable to the Windrush Compensation Scheme,
(b) payments under the Troubles Permanent Disablement Payment Scheme, and
(c) other compensation payments made by or on behalf of a government, public authority or local authority.
59. HMRC exercise of officer functions
Resolved,
That provision (including provision having retrospective effect) may be made about things done by Her Majesty’s Revenue and Customs in the exercise of functions conferred by or under enactments relating to taxation on officers of Revenue and Customs.
60. Tax returns (limited liability partnerships)
Resolved,
That provision (including provision having retrospective effect) may be made about tax returns in relation to limited liability partnerships that are not carrying on a trade, profession or business with a view to profit.
61. Preparatory expenditure on plastics tax
Resolved,
That provision may be made about preparations by the Commissioners for Her Majesty’s Revenue and Customs for the introduction of a new tax to be charged in respect of certain plastic packaging.
62. Limits on local loans
Resolved,
That (notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills) provision may be made increasing to £115 billion, with power to increase by order to £135 billion, the limit imposed by section 4 of the National Loans Act 1968 in relation to loans made in pursuance of section 3 of that Act.
63. Incidental provision etc
Resolved,
That it is expedient to authorise—
(a) any incidental or consequential charges to any duty or tax (including charges having retrospective effect) that may arise from provisions designed in general to afford relief from taxation, and
(b) any incidental or consequential provision (including provision having retrospective effect) relating to provision authorised by any other resolution.
Finance (Money)
Queen’s recommendation signified
Resolved,
That, for the purposes of any Act of the present Session relating to finance, it is expedient to authorise—
(a) the payment out of money provided by Parliament of sums incurred by the Commissioners for Her Majesty’s Revenue and Customs which is attributable to the increase in the percentage in section 104M(3) of the Corporation Tax Act 2009, and
(b) any increase in the sums payable out of or into the National Loans Fund which is attributable to increasing to £115 billion, with power to increase by order to £135 billion, the limit imposed by section 4 of the National Loans Act 1968 in relation to loans made in pursuance of section 3 of that Act.
Ordered,
That a Bill be brought in upon the foregoing Resolutions;
That the Chairman of Ways and Means, the Prime Minister, Mr Chancellor of the Exchequer, Secretary Matt Hancock, Secretary Alok Sharma, Secretary Grant Shapps, Steve Barclay, John Glen, Kemi Badenoch and Jesse Norman bring in the Bill.
Finance Bill
Jesse Norman accordingly presented a Bill to grant certain duties, to alter other duties and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with finance.
Bill read the First time; to be read a Second time tomorrow, and to be printed (Bill 114).