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House of Commons
Session 2001- 02
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House of Commons Votes and Proceedings
Tuesday 23rd April 2002

The House met at half-past Two o'clock.

PRAYERS.

1    Greenham and Crookham Commons Bill,-The House proceeded to consider the Lords Amendments to the Greenham and Crookham Commons Bill; and the same were agreed to.

2    Second Standing Committee on Delegated Legislation,-Mr David Amess reported from the Second Standing Committee on Delegated Legislation the draft Court of Appeal (Appeals from Proscribed Organisations Appeal Commission) Rules 2002.

    Minutes of Proceedings of the Committee to lie upon the Table.

3    Third Standing Committee on Delegated Legislation,-Mr Joe Benton reported from the Third Standing Committee on Delegated Legislation the Local Government Finance (England) Special Grant Report (No. 97) (House of Commons Paper No. 721), on Local Government On-Line Funding to Local Authorities

    Minutes of Proceedings of the Committee to lie upon the Table.

4    Sixth Standing Committee on Delegated Legislation,-Mr Joe Benton reported from the Sixth Standing Committee on Delegated Legislation the Local Government Finance (England) Special Grant Report (No. 98) (House of Commons Paper No. 727) on Maintenance of Roads Grant 2002-03.

    Minutes of Proceedings of the Committee to lie upon the Table.

5    European Standing Committee A,-Miss Anne Begg reported from European Standing Committee A the following Resolution:

    That the Committee takes note of European Union Documents No. 14130/01, draft Council Regulation fixing for 2002 the fishing opportunities and associated conditions for certain fish stocks and groups of fish stocks, applicable in Community waters and, for Community vessels, in waters where limitations in catch are required, No. 15238/01, draft Council Regulation fixing for 2002 the fishing opportunities for deep-sea fish stocks, and No. 6918/02, draft Council Regulation establishing specific access requirements and associated conditions applicable to fishing for deep-sea stocks; recognises that a number of fish stocks have fallen to particularly low levels; notes the Government's success in negotiating TACs which take full account of scientific advice while securing the best possible fishing opportunities for UK fishermen; recognises that action is required to constrain fishing effort in relation to deep-sea species; and supports the Government's attempts to secure a European agreement that will return these species to long-term viability.

    Report, together with Resolution, to lie upon the Table.

6    Annuities (Competition) Bill,-Mr Frank Field presented a Bill to require pension providers to provide information from the Financial Services Authority on annuity rates to all holders of personal pensions policies which allow the purchase of an annuity from any provider: And the same was read the first time; and ordered to be read a second time on Friday 19th July and to be printed [Bill 123].

7    Alcohol Services,-Ordered, That leave be given to bring in a Bill to require local authorities and health authorities to provide alcohol services in their areas to address the needs of people with alcohol problems, to produce joint five-year strategic projections and annual service evaluations and plans, and to establish joint commissioning arrangements in their areas for the purchase of alcohol services: And that Ross Cranston, Mr Kelvin Hopkins, Mrs Marion Roe, Bob Russell, Mr Russell Brown, Jon Cruddas, Mr David Amess, Mr David Drew, Mrs Betty Williams, Mr Sin Simon, The Reverend Martin Smyth and Fiona Mactaggart do prepare and bring it in.

8    Alcohol Services Bill,-Ross Cranston accordingly presented a Bill to require local authorities and health authorities to provide alcohol services in their areas to address the needs of people with alcohol problems, to produce joint five-year strategic projections and annual service evaluations and plans, and to establish joint commissioning arrangements in their areas for the purchase of alcohol services: And the same was read the first time; and ordered to be read a second time on Friday 19th July and to be printed [Bill 124].

9    Ways and Means,-Amendment of the Law,-The Order of the day being read, for resuming the adjourned Debate on the Question proposed on 18th April-

    (1) That it is expedient to amend the law with respect to the National Debt and the public revenue and to make further provision in connection with finance.

    (2) Subject to paragraph (3) below, this Resolution does not extend to the making of any amendment with respect to value added tax so as to provide-

      (a) for zero-rating or exempting a supply, acquisition or importation;

      (b) for refunding an amount of tax;

      (c) for any relief, other than a relief that-

        (i) so far as it is applicable to goods, applies to goods of every description, and

        (ii) so far as it is applicable to services, applies to services of every description.

    (3) Paragraph (2) above does not exclude the making of amendments with respect to value added tax providing for relief on the acquisition from another member State of any goods in relation to which, if they were imported from a place outside the member States, relief would be given by an order under section 37 of the Value Added Tax Act 1994;

    And the Question being again proposed:-The House resumed the adjourned Debate.

    And the Question being put;

    The House divided.

      Tellers for the Ayes, Mrs Anne McGuire, Mr Nick Ainger: 408.

      Tellers for the Noes, Mrs Cheryl Gillan, Dr Julian Lewis: 155.

    So the Question was agreed to.

    The Speaker then, pursuant to paragraph (3) of Standing Order No. 51 (Ways and means motions), put forthwith the Question necessary to dispose of the further Motions which were made by Mr Chancellor of the Exchequer.

2. Rates of tobacco products duty

    Resolved, That-

    (1) For the Table of rates of duty in Schedule 1 to the Tobacco Products Duty Act 1979 there shall be substituted-

TABLE
1.   Cigarettes      An amount equal to 22 per cent of the retail price
2.   Cigars      137.26 per kilogram.
3.   Hand-rolling tobacco      98.66 per kilogram.
4.   Other smoking tobacco and
      chewing tobacco
      60.34 per kilogram.

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

3. Rates of duty on cider

    Resolved, That-

    (1) In section 62(1A) of the Alcoholic Liquor Duties Act 1979-

      (a) in paragraph (b), for "39.21" there shall be substituted "38.43";

      (b) in paragraph (c), for "26.13" there shall be substituted "25.61".

    (2) This Resolution shall have effect as from 28th 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.

4. Duty on beverages made with spirits

    Resolved, That-

    (1) Section 1(9) of the Alcoholic Liquor Duties Act 1979 shall be omitted.

    (2) This Resolution shall come into force on 28th 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.

5. Beer (small breweries: reduced rates of duty)

    Resolved, That-

    (1) In subsection (1) of section 36 of the Alcoholic Liquor Duties Act 1979, for "at the rate of 11.89 per hectolitre per cent of alcohol in the beer" there shall be substituted "at the rates specified in subsection (1AA) below".

    (2) In that section, after that subsection there shall be inserted-

      "(1AA) The rates at which the duty shall be charged are-

      (a) in the case of beer that is not small brewery beer, 11.89 per hectolitre per cent of alcohol in the beer;

      (b) in the case of small brewery beer produced in a singleton brewery, the rate per hectolitre per cent of alcohol in the beer that is given by section 36D below;

      (c) in the case of small brewery beer produced in a co-operated brewery, the rate per hectolitre per cent of alcohol in the beer that is given by section 36F below.".

    (3) In that Act, after that section (and before the heading "Reliefs from excise duty") there shall be inserted-

"Reduced rates of excise duty

      36A Beer from small breweries: introductory

      (1) For the purposes of section 36(1AA) above (but subject to subsection (2) below)-

        (a) whether beer produced in a singleton brewery is "small brewery beer" is determined in accordance with section 36C below, and

        (b) whether beer produced in a co-operated brewery is "small brewery beer" is determined in accordance with section 36E below.

      (2) Beer is not small brewery beer if it is produced by a person on any premises in circumstances in which he is required to be, but is not, registered under section 47 below in respect of those premises.

      36B Interpretation of provisions relating to small brewery beer

      (1) The following provisions of this section have effect for the purposes of section 36(1AA) above, section 36A above, this section and sections 36C to 36F below.

      (2) A brewery is a "singleton brewery" at any particular time in a calendar year if it is not a co-operated brewery at that time.

      (3) A brewery is a "co-operated brewery" at any particular time in a calendar year if-

        (a) a person who produces beer in the brewery at that time or any earlier time in that year, or

        (b) a person connected with such a person,

      also produces beer in any other brewery at that time or any earlier time in that year.

      (4) "Brewery" means premises (whether or not in the United Kingdom) on which beer is produced and that are situated physically apart from any other premises on which beer is produced.

      (5) "The standard beer duty rate" means the rate of duty specified by section 36(1AA)(a) above.

      (6) References to "the grossed-up amount" of an estimate of the amount of a brewery's production in a calendar year are to the amount given by-

E

     x     365
(365  -  N)

      where-

      E is the amount of the estimate, and

      N is the number of days (if any) in the calendar year before the brewery begins to be used as beer-production premises.

      (7) References to a brewery being used as beer-production premises are, in the case of a brewery in the United Kingdom, to there being at least one person who is required to be registered under section 47 below in respect of the brewery.

      (8) Any question whether a person is connected with another shall be determined in accordance with section 839 of the Income and Corporation Taxes Act 1988.

      36C Meaning of "small brewery beer": beer from singleton breweries

      (1) This section applies to beer produced in a brewery at a time in a calendar year ("the current year") when the brewery is a singleton brewery.

      (2) The beer is "small brewery beer" if the following conditions are satisfied; but this is subject to subsections (9) and (10) below.

      (3) The first condition is that either-

        (a) no beer was produced in the brewery in the previous calendar year ("the previous year"), or

        (b) the amount of beer produced in the brewery in the previous year was not more than 30,000 hectolitres.

      (4) For the purposes of subsection (3)(b) above, where the brewery was in use as beer-production premises during part only of the previous year, the amount of beer produced in the previous year in the brewery shall be taken to have been-

A

     x     365
D

      A is the amount of beer actually produced in the previous year in the brewery, and

      D is the number of days in that part of the previous year.

      (5) The second condition is that the amount of the estimate under subsection (9) below of the brewery's production in the current year is not more than 30,000 hectolitres.

      (6) The third condition is that if the brewery begins to be used as beer-production premises part-way through the current year, the grossed-up amount of that estimate is not more than 30,000 hectolitres.

      (7) The fourth condition is that less than half of the beer produced in the brewery in the previous year was produced under licence.

      (8) The fifth condition is that the beer is not produced under licence.

      (9) Beer produced in the brewery in the current year before the person who first produces beer in the brewery in that year has made a reasonable estimate of the amount of beer that will be produced in the brewery in that year is not small brewery beer.

      (10) Beer produced in the brewery in the current year after the amount of beer produced in the brewery in the current year has reached 30,000 hectolitres is not small brewery beer.

      (11) Subsection (10) above is without prejudice to section 167(4) of the Customs and Excise Management Act 1979 (recovery of duty unpaid by reason of untrue document or statement).

      36D Rate of duty for small brewery beer from singleton breweries

      (1) This section applies to small brewery beer produced in a brewery at a time in a calendar year ("the current year") when the brewery is a singleton brewery.

      (2) The rate of duty in the case of that beer ("the brewery rate") is determined in accordance with this section.

      (3) Subsection (4) below applies if-

        (a) beer was produced in the brewery in the previous calendar year ("the previous year") and the amount produced in the brewery in that year was not more than 5,000 hectolitres, or

        (b) no beer was produced in the brewery in the previous year and the grossed-up amount of the estimate under section 36C(9) above of the brewery's production in the current year is not more than 5,000 hectolitres.

      (4) If this subsection applies, "the brewery rate" is 50% of the standard beer duty rate at the time concerned; but this is subject to rounding under subsection (7) below.

      (5) Subsection (6) below applies if-

        (a) beer was produced in the brewery in the previous year and the amount produced in the brewery in that year was more than 5,000 hectolitres but not more than 30,000 hectolitres, or

        (b) no beer was produced in the brewery in the previous year and the grossed-up amount of the estimate under section 36C(9) above of the brewery's production in the current year is more than 5,000 hectolitres but not more than 30,000 hectolitres.

      (6) If this subsection applies, "the brewery rate" is, subject to rounding under subsection (7) below, given by-

P  -2,500  

     x     the standard beer duty at the time concerned
P

    where--

      if this subsection applies by reason of subsection (5)(a) above, P is the amount, in hectolitres, of beer produced in the brewery in the previous year, and

      if this subsection applies by reason of subsection (5)(b) above, P is the grossed-up amount (expressed in hectolitres) mentioned in subsection (5)(b).

      (7) Where a rate given by subsection (4) or (6) above would (apart from this subsection) not be a whole number of pennies, the rate given by that subsection shall be taken to be the rate actually given by that subsection rounded up to the nearest penny.

      (8) Where the brewery was in use as beer-production premises during part only of the previous year, for the purposes of subsections (3)(a), (5)(a) and (6) above the amount of beer produced in the brewery in the previous year shall be taken to have been-

A

     x     365
D

    where-

      A is the amount of beer actually produced in the previous year in the brewery, and

      D is the number of days in that part of the previous year.

      36E Meaning of "small brewery beer": beer from co-operated breweries

      (1) This section applies to beer produced in a brewery at a time in a calendar year ("the current year") when the brewery is a co-operated brewery.

      (2) The beer is "small brewery beer" if the following conditions are satisfied; but this is subject to subsections (10) and (11) below.

      (3) In this section-

      "the group" means the group of breweries consisting of-

        (a) the co-operated brewery, and

        (b) every brewery (other than the co-operated brewery) in which beer is produced at the time mentioned in subsection (1) above, or at any earlier time in the current year, by-

          (i) a person who produces beer in the co-operated brewery at the time so mentioned or at any earlier time in the current year, or

          (ii) a person connected with such a person;

        "group brewery" means a brewery that is in the group;

        "the previous year" means the calendar year immediately preceding the current year.

        (4) The first condition is that either-

          (a) no beer was produced in the previous year in the group, or

          (b) the amount given by PY + GE is not more than 30,000 hectolitres, where-

        PY is the amount of beer produced in the previous year in the group, and

        GE is the aggregate of the grossed-up amount of each estimate that-

          (i) is an estimate for the purposes of subsection (10) below of the amount of the production in the current year in a group brewery in which no beer was produced in the previous year, and

          (ii) is made no later than the time mentioned in subsection (1) above.

        (5) For the purposes of subsection (4)(b) above, where a group brewery was in use as beer-production premises during part only of the previous year, the amount of beer produced in the previous year in that brewery shall be taken to have been-

    A

         x     365
    D

      where-

        A is the amount of beer actually produced in the previous year in that brewery, and

        D is the number of days in that part of the previous year.

        (6) The second condition is that the aggregate of each estimate that-

          (a) is an estimate for the purposes of subsection (10) below of the amount of a group brewery's production in the current year, and

          (b) is made no later than the time mentioned in subsection (1) above,

        is not more than 30,000 hectolitres.

        (7) The third condition is that if any group brewery begins to be used as beer-production premises part-way through the current year, the aggregate of the grossed-up amount of each estimate that-

          (a) is an estimate for the purposes of subsection (10) below of the amount of a group brewery's production in the current year, and

          (b) is made no later than the time mentioned in subsection (1) above,

        is not more than 30,000 hectolitres.

        (8) The fourth condition is that less than half of the beer produced in the previous year in each group brewery was produced under licence.

        (9) The fifth condition is that the beer is not produced under licence.

        (10) Beer produced in the co-operated brewery at an unestimated time is not small brewery beer; and here "unestimated time" means a time in the current year when there is a group brewery for which there does not exist a reasonable estimate, made by the person who first produces beer in that brewery in that year, of the amount of beer that will be produced in that brewery in that year.

        (11) Beer produced in the co-operated brewery in the current year after the amount of beer produced in the group in the current year has reached 30,000 hectolitres is not small brewery beer.

        (12) Subsection (11) above is without prejudice to section 167(4) of the Customs and Excise Management Act 1979 (recovery of duty unpaid by reason of untrue document or statement).

        36F Rate of duty for small brewery beer from co-operated breweries

        (1) This section applies to small brewery beer produced in a brewery at a time in a calendar year ("the current year") when the brewery is a co-operated brewery.

        (2) The rate of duty in the case of that beer ("the brewery rate") is determined in accordance with this section.

        (3) In this section-

        "the group" means the group of breweries consisting of-

        (a) the co-operated brewery, and

        (b) every brewery (other than the co-operated brewery) in which beer is produced at the time mentioned in subsection (1) above, or at any earlier time in the current year, by-

        (i) a person who produces beer in the co-operated brewery at the time so mentioned or at any earlier time in the current year, or

        (ii) a person connected with such a person;

        "group brewery" means a brewery that is in the group;

        "the previous year" means the calendar year immediately preceding the current year;

        "the notional previous year's production" has the meaning given by subsection (4) below.

        (4) In this section "the notional previous year's production" means the amount, in hectolitres, given by PY + GE where-

        PY is the amount of beer produced in the group in the previous year, and

        GE is the aggregate of the grossed-up amount of each estimate that-

        (a) is an estimate for the purposes of section 36E(10) above of the amount of the production in the current year in a group brewery in which no beer was produced in the previous year, and

        (b) is made no later than the time mentioned in subsection (1) above.

        (5) Where a group brewery was in use as beer-production premises during part only of the previous year, in calculating PY for the purposes of subsection (4) above the amount of beer produced in that brewery in the previous year shall be taken to have been-

    A

         x     365
    D

      where-

        A is the amount of beer actually produced in the previous year in that brewery, and

        D is the number of days in that part of the previous year.

        (6) Subsection (7) below applies if-

        (a) beer was produced in at least one group brewery in the previous year and the notional previous year's production is not more than 5,000 hectolitres, or

        (b) no beer was produced in the group in the previous year and the aggregate of each estimate that-

        (i) is an estimate for the purposes of section 36E(10) above of the amount of a group brewery's production in the current year, and

        (ii) is made no later than the time mentioned in subsection (1) above,

        is not more than 5,000 hectolitres.

        (7) If this subsection applies, "the brewery rate" is 50% of the standard rate at the time mentioned in subsection (1) above; but this is subject to rounding under subsection (10) below.

        (8) Subsection (9) below applies if-

        (a) beer was produced in at least one group brewery in the previous year and the notional previous year's production is more than 5,000 hectolitres but not more than 30,000 hectolitres, or

        (b) no beer was produced in the group in the previous year and the aggregate mentioned in subsection (6)(b) above is more than 5,000 hectolitres but not more than 30,000 hectolitres.

        (9) If this subsection applies, "the brewery rate" is, subject to rounding under subsection (10) below, given by-

    P  -  2,500

         x     the standard rate
    P

      where-

        if this subsection applies by reason of subsection (8)(a) above, P is the previous year's notional production,

        if this subsection applies by reason of subsection (8)(b) above, P is the amount, in hectolitres, of the aggregate mentioned in subsection (6)(b) above, and

        "the standard rate" means the standard beer duty rate at the time mentioned in subsection (1) above.

        (10) Where a rate given by subsection (7) or (9) above would (apart from this subsection) not be a whole number of pennies, the rate given by that subsection shall be taken to be the rate actually given by that subsection rounded up to the nearest penny.

        36G Assessments where incorrectly low rate of duty applied

        (1) Subsection (3) below applies if-

        (a) duty is charged by section 36 above on any beer, and

        (b) it appears at the excise duty point that the beer is small brewery beer for the purposes of section 36(1AA) above, but

        (c) it turns out that the beer was not small brewery beer for those purposes (because, for example, circumstances were not as they appeared at that point or they subsequently changed).

        (2) Subsection (3) below also applies if-

        (a) duty is charged by section 36 above on any beer that is small brewery beer for the purposes of section 36(1AA) above, and

        (b) the rate of duty that at the excise duty point appeared to be the correct rate turns out to have been lower than the correct rate (because, for example, circumstances were not as they appeared at that point or they subsequently changed).

        (3) In any such case the Commissioners-

        (a) may assess the amount that is the difference between-

        (i) the actual amount of the duty charged on the beer by section 36 above, and

        (ii) the lower amount that, at the excise duty point, appeared to be the amount charged,

        as being excise duty due from the person liable to pay the duty charged on the beer by section 36 above, and

        (b) may notify him or his representative accordingly.

        (4) Where two or more persons are liable to pay the duty charged on the beer-

        (a) the reference in subsection (3)(a) above to the person liable to pay the duty is to any one or more of those persons, and

        (b) the reference in subsection (3)(b) above to notifying the person liable or his representative is to notifying each person assessed or his representative.".

      (4) In the Finance Act 1994-

        (a) in section 12A(3)(bb), for "or 11" there shall be substituted ", 11 or 36G";

        (b) in section 12B(2), after paragraph (eb) there shall be inserted-

        "(ec) in the case of an assessment under section 36G of that Act, the time at which the requirement to pay the duty took effect (which time, in a case where there was an excise duty point for the beer fixed under section 1 of the Finance (No. 2) Act 1992, is that excise duty point);"; and

        (c) in section 14(1)(ba), for "or 11" there shall be substituted ", 11 or 36G".

      (5) This Resolution shall come into force on 1st June 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.

    6. Biodiesel

      Resolved, That provision may be made-

        (a) imposing excise duty on biodiesel and mixtures containing biodiesel,

        (b) for the application in relation to biodiesel and such mixtures of the provisions of the enactments relating to hydrocarbon oil or any description of hydrocarbon oil, and

        (c) defining biodiesel for those purposes and conferring power to amend the definition by order.

    7. Hydrocarbon oil duties (rebates)

      Resolved, That provision may be made as to the meaning of references to "rebate" in provisions of the Hydrocarbon Oil Duties Act 1979.

    8. Hydrocarbon oil duties (fuel substitutes)

      Resolved, That provision may be made amending section 6A of the Hydrocarbon Oil Duties Act 1979 and section 10 of the Finance Act 1993.

    9. Amusement machine licences (excepted machines)

      Resolved, That-

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

        "(c) a fifty-penny machine that is not a gaming machine.".

      (2) For subsection (3B) of that section there shall be substituted-

        "(3B) For the purposes of this section an amusement machine is a fifty-penny machine if, and only if-

        (a) where it is a machine on which a game can be played solo, the price for a solo game does not exceed 50p; and

        (b) where it is a machine on which a game can be played by more than one person at a time, the price to participate in such a game does not exceed 50p.".

      (3) In subsection (3C) of that section, for "35p", in both places where it occurs, there shall be substituted "50p".

      (4) In section 25 of that Act, in subsections (4) and (6), for "an excepted video machine falling within section 21(3A)(d) above" there shall be substituted "a fifty-penny machine within section 21(3B) above".

      (5) This Resolution shall have effect in relation to the provision of an amusement machine at any time on or after 1st May 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.

    10. Amusement machine licence duty (rates)

      Resolved, That-

      (1) In the Table in section 23(2) of the Betting and Gaming Duties Act 1981, for columns (4) and (6) there shall be substituted-

    (4) (6)
    Category C Category E
    80 225
    160 435
    235 630
    305 820
    370 990
    430 1155
    485 1300
    535 1440
    585 1560
    625 1675
    665 1775
    695 1860
      (2) Paragraph (1) above shall apply in relation to any amusement machine licence for which an application is received by the Commissioners of Customs and Excise after 30th 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.

    11. Gaming duty (sic bo and three card poker)

      Resolved, That-

      (1) In section 10(2) of the Finance Act 1997-

        (a) after "American roulette" there shall be inserted "sic bo";

        (b) after "super pan 9" there shall be inserted "three card poker".

      (2) This Resolution shall have effect in relation to games begun 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.

    12. Pool betting duty etc

      Resolved, That-

      (1) The Betting and Gaming Duties Act 1981 shall be amended in accordance with paragraphs (2) to (10).

      (2) For sections 6 to 8 there shall be substituted-

    "Pool betting duty

      6 The duty

        A duty of excise to be known as pool betting duty shall be charged in accordance with sections 7 to 8C.

      7 Duty charged on net pool betting receipts

        (1) If the amount of a person's net pool betting receipts for an accounting period is greater than zero, pool betting duty is charged on those receipts.

        (2) The amount of that duty is 15 per cent of the amount of the receipts.

      7A Calculating net pool betting receipts

        For the purposes of section 7, the amount of a person's net pool betting receipts for an accounting period is-

      S + E - W

      where-

        S is the aggregate of amounts falling due to the person in the accounting period in respect of dutiable pool bets,

      E is the aggregate of expenses and profits falling within section 7E(2) that are attributable to the accounting period, and

      W is the aggregate of amounts paid by the person in the accounting period by way of winnings on dutiable pool bets (irrespective of when the bets were made or determined).

      7B Net pool betting receipts: meaning of "dutiable pool bet"

        (1) For the purposes of a calculation under section 7A of the amount of a person's net pool betting receipts for any accounting period, a bet (wherever made) is a "dutiable pool bet" if-

        (a) the bet is made by way of pool betting, and

        (b) the following conditions are satisfied.

        (2) The first condition is that-

        (a) the bet is made by means of a totalisator situated in the United Kingdom and that person is the operator, or

        (b) the bet is made otherwise than by means of a totalisator and that person is the promoter and is in the United Kingdom.

        (3) The second condition is that the bet is not-

      (a) made by way of sponsored pool betting,

      (b) made as mentioned in section 4(3), or

      (c) made for community benefit.

        (4) The third condition is that if the bet was made before 31st March 2002, at least one event to which it relates takes place on or after that date.

      7C Net pool betting receipts: calculating stake money

        (1) This section applies for the purpose of calculating S in a calculation under section 7A.

        (2) Any payment that entitles a person to make a bet shall, if he makes the bet, be treated as stake money on the bet.

        (3) All payments made-

        (a) for or on account of or in connection with bets that are dutiable pool bets for the purposes of the calculation,

        (b) in addition to the stake money, and

        (c) by the persons making the bets,

        shall be treated as amounts due in respect of the bets except in so far as the contrary is proved by the person whose net pool betting receipts are being calculated.

      7D Net pool betting receipts: when stakes etc fall due

        (1) Subsections (2) to (5) apply for the purpose of calculating S in a calculation under section 7A.

        (2) Where-

        (a) a person makes a bet, and

        (b) the bet relates to a single event, or to two or more events all taking place on the same day,

        any sum due to a person in respect of the bet shall be treated as falling due on the day on which the event or events take place.

        (3) Where-

        (a) a person makes a bet, and

        (b) subsection (2) does not apply,

        any sum due to a person in respect of the bet shall (subject to subsection (5)) be treated as falling due when the bet is made.

        (4) Subsections (2) and (3) have effect in relation to a sum irrespective of when it is actually paid or required to be paid (even where a sum that those subsections require to be treated as falling due on or after 31st March 2002 was actually paid, or required to be paid, before that date).

        (5) As respects a bet made before 31st March 2002 that relates to events at least one of which takes place before that date and at least one of which takes place on or after that date, any sum paid on or after that date in respect of the bet shall be treated as falling due when it is paid.

      7E Net pool betting receipts: expenses and profits

        (1) Subsections (2) and (3) apply for the purpose of calculating E in a calculation under section 7A.

        (2) The expenses and profits falling within this subsection are (subject to subsection (3))-

        (a) those of the person whose net pool betting receipts are being calculated, and

        (b) those of any other person concerned with or benefiting from the promotion of the betting concerned.

        (3) Expenses and profits do not fall within subsection (2) so far as they are-

        (a) provided out of amounts due, in respect of bets that are dutiable pool bets for the purposes of the calculation, to the person whose net pool betting receipts are being calculated, or

        (b) referable to matters other than-

        (i) the promotion or management of the betting concerned, or

        (ii) activities ancillary to, or connected with, such promotion or management.

      7F Net pool betting receipts: calculating winnings

        (1) Subsections (2) to (5) apply for the purpose of calculating W in a calculation under section 7A.

        (2) The reference to paying an amount to a person includes a reference to holding it in an account if the person is notified that the amount is being held for him in the account and that he is entitled to withdraw it on demand.

        (3) The return of a stake shall be treated as a payment by way of winnings.

        (4) Only payments of money shall be taken into account.

        (5) Where a bet made before 31st March 2002 relates to events at least one of which takes place before that date and at least one of which takes place on or after that date, no account shall be taken of any payment by way of winnings on the bet.

      8 Payment and recovery

        (1) Pool betting duty charged on a person's net pool betting receipts for an accounting period-

        (a) becomes due at the end of the period,

        (b) shall be paid by the person, and

        (c) shall, subject to any directions under paragraph 3 of Schedule 1 to this Act, be paid when it becomes due.

        (2) Pool betting duty that is due to be paid may be recovered from the following persons as if they were jointly and severally liable to pay the duty-

        (a) the person on whose net pool betting receipts the duty is charged ("the primary payer");

        (b) a person responsible for the management of any business in the course of which any bets have been made that are dutiable pool bets for the purposes of calculations under section 7A of the amount of the primary payer's net pool betting receipts for any accounting period;

        (c) a person responsible for the management of any totalisator used for the purposes of any such business;

        (d) where a person within any of paragraphs (a) to (c) is a company, a director.

      8A Meaning of "bet made for community benefit" in sections 6 to 8

        (1) For the purposes of sections 6 to 8 (but subject to any direction under subsection (3)), a bet is made "for community benefit" if-

        (a) the promoter of the betting concerned is a community society or is bound to pay all benefits accruing from the betting to such a society, and

        (b) the person making the bet knows, when making it, that the purpose of the betting is to benefit such a society.

        (2) In the case of a bet made by means of a totalisator, the reference in subsection (1) to the promoter of the betting concerned is a reference to the operator.

        (3) The Commissioners may direct that any bet specified by the direction, or of a description so specified, is not a bet made for community benefit.

        (4) The power conferred by subsection (3) may not be exercised unless the Commissioners consider that an unreasonably large part of the amounts paid in respect of the bets concerned will, or may, be applied otherwise than-

        (a) in the payment of winnings, or

        (b) for the benefit of a community society.

        (5) In this section "community society" means-

        (a) a society established and conducted for charitable purposes only, or

        (b) a society established and conducted wholly or mainly for the support of athletic sports or athletic games and not established or conducted for purposes of private gain.

        (6) In this section "society" includes any club, institution, organisation or association of persons, by whatever name called.

      8B Meaning of "accounting period" in sections 6 to 8

        For the purposes of sections 6 to 8, each period that ends with the last Saturday in a calendar month, and begins with the Sunday immediately following the previous such Saturday, is an accounting period.

      8C Meaning of "bet" in sections 6 to 8A

        (1) For the purposes of sections 6 to 8A, "bet" does not include the taking of a ticket or chance in a lottery.

        (2) Where payments are made for the chance of winning any money or money's worth on terms under which the persons making the payments have a power of selection that may (directly or indirectly) determine the winner, those payments shall be treated as bets for the purposes of sections 6 to 8A notwithstanding that the power is not exercised.

        (3) Subsection (2) has effect subject to section 12(3).

        (4) Where any payment entitles a person to take part in a transaction that is, on his part only, not a bet made by way of pool betting by reason of his not in fact making any stake as if the transaction were such a bet, the transaction shall be treated as such a bet for the purposes of pool betting duty (and section 7C(3) shall apply to any such payment).".

      (3) In section 2(2)-

        (a) in paragraph (b), after "bet," there shall be inserted "or", and

        (b) paragraph (d), and the word "or" immediately preceding it, shall be omitted.

      (4) In section 4(6), for the words from "do not apply" to the end there shall be substituted "do not apply to on-course bets.".

      (5) In section 9(2), the words "or coupon betting" shall be omitted (in both places).

      (6) In section 9(3)-

        (a) in paragraph (a), the words "or coupon betting" shall be omitted,

        (b) for sub-paragraphs (i) to (iv) of paragraph (a) there shall be substituted-

        "(i) the bet is not made by means of a totalisator, and

        (ii) the promoter is in the Isle of Man; or", and

        (c) in paragraph (aa)(i), the words "or coupon betting" shall be omitted.

      (7) For section 9(6) there shall be substituted-

        "(6) Section 8C(1) to (3) above shall have effect for the purposes of subsections (2)(a) and (5) above as it has effect for the purposes of sections 6 to 8A above.".

      (8) Section 11 shall be omitted.

      (9) In section 12(3), the words "(except in sections 6, 7, 8, 9(2)(a) and 9(5) in their application to coupon betting)" shall be omitted.

      (10) Schedule 1 shall be amended as follows-

        (a) in paragraph 1, in the definition of "pool betting business", at the end there shall be inserted "or would or might involve such sums becoming so payable if receipts from bets made for community benefit (as defined by section 8A of this Act) were not excluded from that duty.";

        (b) in paragraph 4(2), for "sub-paragraphs (3) and (4)" there shall be substituted "sub-paragraph (3)";

        (c) paragraph 4(4) to (6) shall be omitted;

        (d) in paragraph 5(1), for "made entry or given notice in accordance with paragraph 4(2) or (4)" there shall be substituted "made entry in accordance with paragraph 4(2)";

        (e) paragraph (b) of paragraph 5(2) shall be renumbered as paragraph 5(3);

        (f) in what remains of paragraph 5(2) after that renumbering, for the words from "paragraph 12(3) below, except that" to the end there shall be substituted "sub-paragraph (3) below.";

        (g) in paragraph 6(2), paragraph (b) shall be omitted;

        (h) paragraphs 8 and 12 shall be omitted;

        (i) in paragraph 14(1), the words after paragraph (b) shall be omitted; and

        (j) in paragraph 15(4), for "the said Schedule 1" there shall be substituted "Schedule 1 to the Betting, Gaming and Lotteries Act 1963".

      (11) In section 1(3) of the Excise Duties (Surcharges or Rebates) Act 1979, the words from ", except that if the duty is pool betting duty" to the end shall be omitted.

      (12) In paragraph 6 of Schedule 5 to the Finance Act 1994, after sub-paragraph (2) there shall be inserted-

        "(3) Any decision consisting in the giving of a direction under section 8A(3) of the Betting and Gaming Duties Act 1981 (pool betting duty: direction that bet is not made for community benefit).".

      (13) If-

        (a) stake money is paid before 31st March 2002 in respect of a bet to which paragraph (17) applies, and

        (b) pool betting duty charged on that money before that date is not paid before 24th April 2002,

      that duty ceases on 24th April 2002 to be charged on that money.

      (14) If-

        (a) stake money is paid before 31st March 2002 in respect of a bet to which paragraph (17) applies, and

        (b) pool betting duty charged on that money before that date is paid before 24th April 2002,

      the person who paid that duty becomes entitled on 24th April 2002 to a credit equal to the amount of the duty.

      (15) Effect is given to such a credit by setting it (until fully utilised) against pool betting duty that the person is liable to pay in respect of accounting periods beginning on or after 31st March 2002 (taking earlier such periods before later ones).

      (16) Such a credit does not-

        (a) carry interest,

        (b) affect the payability of the duty mentioned in paragraph (14), or

        (c) entitle any person to any payment in respect of the credit.

      (17) This paragraph applies to a bet if-

        (a) it is a dutiable pool bet for the purposes of a calculation, under the section 7A of the Betting and Gaming Duties Act 1981 inserted by this Resolution, of the amount of a person's net pool betting receipts for any accounting period, and

        (b) it is made before 31st March 2002 but all the events to which it relates take place on or after that date.

      (18) Any notification under paragraph 4(4) of Schedule 1 to the Betting and Gaming Duties Act 1981 that is effective immediately before 24th April 2002 shall on and after that date have effect (until withdrawn) as a notification made on 31st March 2002 under paragraph 4(3) of that Schedule.

      (19) The amendments made by paragraph (2) shall have effect for the purposes of accounting periods beginning on or after 31st March 2002.

      (20) The amendments made by paragraphs (3) and (4) shall apply to bets made on or after 31st March 2002.

      (21) Subject to paragraph (22), this Resolution shall be deemed to have come into force on 31st March 2002.

      (22) Paragraphs (5), (6)(a) and (c) and (7) to (18) 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 the Provisional Collection of Taxes Act 1968.

    13. General betting duty (spread bets)

      Resolved, That provision may be made as to the bets that are spread bets for the purposes of general betting duty.

    14. Vehicle excise duty (cars registered on or after 1st March 2001)

      Resolved, That-

      (1) For the Table in paragraph 1B of Schedule 1 to the Vehicle Excise and Registration Act 1994 there shall be substituted-

    CO2 emissions figure Rate
    (1) (2) (3) (4) (5)
    Exceeding Not exceeding Reduced rate Standard Rate Premium rate
    g/km g/km
    - 120 60 70 80
    120 150 90 100 110
    150 165 110 120 130
    165 185 130 140 150
    185 - 150 155 160

      (2) This Resolution shall apply to any licence taken out on or after 18th April 2002 for a period beginning on or after 1st May 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.

    15. Vehicle excise duty (motorcycles)

      Resolved, That-

      (1) For paragraph 2(1) to (1B) of Schedule 1 to the Vehicle Excise and Registration Act 1994 there shall be substituted-

        "2(1) The annual rate of vehicle excise duty applicable to a motorcycle that does not exceed 450 kilograms in weight unladen is-

        (a) if the cylinder capacity of the engine does not exceed 150 cubic centimetres, 15;

        (b) if the vehicle is a motorbicycle and the cylinder capacity of the engine exceeds 150 cubic centimetres but does not exceed 400 cubic centimetres, 30;

        (c) if the vehicle is a motorbicycle and the cylinder capacity of the engine exceeds 400 cubic centimetres but does not exceed 600 cubic centimetres, 45;

        (d) in any other case, 60.".

      (2) In sections 13(3)(a), 35A(5)(b) and 36(3)(b) of that Act, and in section 13(4)(a) of that Act as substituted under paragraph 8 of Schedule 4 to that Act, for "(1)(c)" there shall be substituted "(1)(d)".

      (3) Paragraph (1) of this Resolution, and the amendments in section 13 of that Act, shall apply to any licence taken out on or after 18th April 2002 for a period beginning on or after 1st May 2002.

      (4) The amendments in sections 35A and 36 of that Act shall apply where the relevant period begins on or after 1st May 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.

    16. Vehicle excise duty (registered vehicles etc)

      The Question being put, That provision may be made for vehicle excise duty to be charged in respect of-

        (a) vehicles registered under the Vehicle Excise and Registration Act 1994 that are neither used nor kept on a public road (within the meaning of that Act);

        (b) things that have been but have ceased to be mechanically propelled vehicles;

      The House divided.

        Tellers for the Ayes, Mr Nick Ainger, Mrs Anne McGuire: 397.

        Tellers for the Noes, Mrs Cheryl Gillan, Dr Julian Lewis: 155.

      So the Question was agreed to.

    17. Vehicle excise duty (calculation of cylinder capacity)

      Resolved, That provision may be made for the calculation of the cylinder capacity of engines for purposes of vehicle excise duty.

    18. Value added tax (disallowance of input tax where consideration not paid)

      Resolved, That provision may be made about entitlement to credit for input tax where some or all of the consideration for the supply is not paid within a certain period.

    19. Value added tax (flat-rate scheme)

      Resolved, That-

      (1) Before section 27 of the Value Added Tax Act 1994 there shall be inserted-

      "26B Flat-rate scheme

        (1) The Commissioners may by regulations make provision under which, where a taxable person so elects, the amount of his liability to VAT in respect of his relevant supplies in any prescribed accounting period shall be the appropriate percentage of his relevant turnover for that period.

        A person whose liability to VAT is to any extent determined as mentioned above is referred to in this section as participating in the flat-rate scheme.

        (2) For the purposes of this section-

        (a) a person's "relevant supplies" are all supplies made by him except supplies made at such times or of such descriptions as may be specified in the regulations;

        (b) the "appropriate percentage" is the percentage so specified for the category of business carried on by the person in question;

        (c) a person's "relevant turnover" is the total of-

        (i) the value of those of his relevant supplies that are taxable supplies, together with the VAT chargeable on them, and

        (ii) the value of those of his relevant supplies that are exempt supplies.

        (3) The regulations may designate certain categories of business as categories in relation to which the references in subsection (1) above to liability to VAT are to be read as references to entitlement to credit for VAT.

        (4) The regulations may provide for persons to be eligible to participate in the flat-rate scheme only in such cases and subject to such conditions and exceptions as may be specified in, or determined by or under, the regulations.

        (5) Subject to such exceptions as the regulations may provide for, a participant in the flat-rate scheme shall not be entitled to credit for input tax.

        This is without prejudice to subsection (3) above.

        (6) The regulations may-

        (a) provide for the appropriate percentage to be determined by reference to the category of business that a person is expected, on reasonable grounds, to carry on in a particular period;

        (b) provide, in such circumstances as may be prescribed, for different percentages to apply in relation to different parts of the same prescribed accounting period;

        (c) make provision for determining the category of business to be regarded as carried on by a person carrying on businesses in more than one category.

        (7) The regulations may provide for the following matters to be determined in accordance with notices published by the Commissioners-

        (a) when supplies are to be treated as taking place for the purposes of ascertaining a person's relevant turnover for a particular period;

        (b) the method of calculating any adjustments that fall to be made in accordance with the regulations in a case where a person begins or ceases to participate in the flat-rate scheme.

        (8) The regulations may make provision enabling the Commissioners-

        (a) to authorise a person to participate in the flat-rate scheme with effect from-

        (i) a day before the date of his election to participate, or

        (ii) a day that is not earlier than that date but is before the date of the authorisation;

        (b) to direct that a person shall cease to be a participant in the scheme with effect from a day before the date of the direction.

        The day mentioned in paragraph (a)(i) above may be a day before the date on which the regulations come into force.

        (9) Regulations under this section-

        (a) may make different provision for different circumstances;

        (b) may make such incidental, supplemental, consequential or transitional provision as the Commissioners think fit, including provision disapplying or applying with modifications any provision contained in or made under this Act.".

      (2) In section 83 of that Act, after paragraph (f) there shall be inserted-

        "(fza) a decision of the Commissioners-

        (i) refusing or withdrawing authorisation for a person's liability to pay VAT (or entitlement to credit for VAT) to be determined as mentioned in subsection (1) of section 26B;

        (ii) as to the appropriate percentage or percentages (within the meaning of that section) applicable in a person's case.".

      (3) In section 84 of that Act, after subsection (4) there shall be inserted-

        "(4ZA) Where an appeal is brought-

        (a) against such a decision as is mentioned in section 83(fza), or

        (b) to the extent that it is based on such a decision, against an assessment,

        the tribunal shall not allow the appeal unless it considers that the Commissioners could not reasonably have been satisfied that there were grounds for the decision.".

      (4) 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 the Provisional Collection of Taxes Act 1968.

    20. Value added tax (invoices)

      Resolved, That provision may be made about VAT invoices.

    21. Income tax (charge and rates for 2002-03)

      The Question being put, That income tax shall be charged for the year 2002-03, and for that year-

        (a) the starting rate shall be 10%;

        (b) the basic rate shall be 22%;

        (c) the higher rate shall be 40%;

      The House divided.

        Tellers for the Ayes, Mrs Anne McGuire, Mr Nick Ainger: 344.

        Tellers for the Noes, Bob Russell, Sir Robert Smith: 56.

      So the Question was agreed to.

      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.

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

      Resolved, That for the year 2002-03-

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

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

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

      And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

    23. Corporation tax (charge and rate for 2003)

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

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

      Resolved, That for the financial year 2002-

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

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

      And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

    25. Corporation tax (starting rate)

      Resolved, That for the financial year 2002-

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

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

      And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

    26. Statutory paternity pay and statutory adoption pay

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

    27. Schedule E charge

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

    28. Deductions under the Construction Industry Scheme

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

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

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

        (a) restricting allowable losses, and

        (b) restricting the operation of relieving provisions.

    30. Chargeable gains (miscellaneous amendments)

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

        (a) share exchanges and company reconstructions;

        (b) taper relief.

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

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

    32. Change of basis of computation of profits

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

      33. Deduction of expenditure involving crime

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

    34. Loan relationships etc

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

        (a) loan relationships; and

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

    35. Foreign exchange gains and losses

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

    36. Corporation tax (currencies other than sterling)

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

    37. Derivative contracts

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

        (a) futures;

        (b) options;

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

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

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

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

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

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

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

    39. Gains of insurance company from venture capital limited partnership

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

    40. Lloyd's underwriters

      Resolved, That provision may be made about Lloyd's underwriters.

    41. Controlled foreign companies

      The Question being put, That provision may be made amending Chapter 4 of Part 17 of the Income and Corporation Taxes Act 1988;

      The House divided.

        Tellers for the Ayes, Mr Nick Ainger, Mrs Anne McGuire: 387.

        Tellers for the Noes, Mrs Cheryl Gillan, Dr Julian Lewis: 151.

      So the Question was agreed to.

    42. Petroleum extraction activities (companies carrying on ring fence trades)

      The Question being put, That provision may be made in relation to companies carrying on ring fence trades, as defined in section 502(1) of the Income and Corporation Taxes Act 1988;

      The House divided.

        Tellers for the Ayes, Mr Tony McNulty, Mr Ian Pearson: 319.

        Tellers for the Noes, Mrs Cheryl Gillan, Dr Julian Lewis: 209.

      So the Question was 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 (12) 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)

      Resolved, 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)

      The Question being 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;

      The House divided.

        Tellers for the Ayes, Mr Tony McNulty, Mr Ian Pearson: 319.

        Tellers for the Noes, Mr Simon Thomas, Pete Wishart: 32.

      So the Question was agreed to.

    64. Aggregates levy (amendments to provisions about civil penalties)

      Resolved, That-

      (1) In Schedule 6 to the Finance Act 2001-

        (a) in sub-paragraph (1) of paragraph 7-

        (i) the word "and" shall be inserted at the end of paragraph (a);

        (ii) paragraph (b) and the words from "equal to the amount" to the end shall be omitted;

        (b) after that sub-paragraph there shall be inserted-

        "(1A) The amount of the penalty shall be-

        (a) equal to the amount of the levy evaded, or (as the case may be) intended to be evaded, by the person's conduct if at the time of engaging in that conduct he was or was required to be registered;

        (b) equal to twice that amount if at that time the person neither was nor was required to be registered.";

        (c) in sub-paragraph (3) and (4) of paragraph 7, for "sub-paragraph (1)" there shall be substituted "sub-paragraph (1A)";

        (d) after paragraph 9 there shall be inserted-

      "Incorrect records etc evidencing claim for tax credit

        9A(1) This paragraph applies where-

        (a) a claim is made for a tax credit in such a case as is mentioned in-

        (i) section 30(1)(c) of this Act (aggregate used in a prescribed industrial or agricultural process), or

        (ii) section 30A of this Act (transitional tax credit in Northern Ireland);

        (b) a record or other document is provided to the Commissioners as evidence for the claim; and

        (c) the record or document is incorrect.

        (2) The person who provided the document to the Commissioners, and any person who provided it to anyone else with a view to its being used as evidence for a claim for a tax credit, shall be liable to a penalty.

        (3) The amount of the penalty shall be equal to 105 per cent of the difference between-

        (a) the amount of tax credit that would have been due on the claim if the record or document had been correct, and

        (b) the amount (if any) of tax credit actually due on the claim.

        (4) The providing of a record or other document shall not give rise to a penalty under this paragraph if the person who provided it satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for his having provided it.

        (5) Where by reason of providing a record or other document-

        (a) a person is convicted of an offence (whether under this Act or otherwise), or

        (b) a person is assessed to a penalty under paragraph 7 or 9 above,

        that person shall not by reason of the providing of the record or document be liable also to a penalty under this paragraph.".

      (2) This Resolution shall come into force on 1st May 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.

    65. Relief from tax (incidental and consequential charges)

      Resolved, That it is expedient to authorise 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.

      Procedure (Amounts Deducted from Payments to Sub-contractors),-Resolved, That, notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills, any Finance Bill of the present Session may include provision authorising sums deducted and paid to the Commissioners of Inland Revenue under section 559 of the Income and Corporation Taxes Act 1988 to be treated as paid in respect of, or on account of, liabilities of the sub-contractor other than liabilities in respect of income tax or corporation tax.

      Procedure (R&D Tax Credits),-Resolved, That, notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills, any Finance Bill of the present Session may contain provision relating to R&D tax credits.

      Procedure (Tax Credit for Vaccine and Medicine Research),-Resolved, That, notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills, any Finance Bill of the present Session may contain provision for allowing tax credits to be paid to companies in respect of research and development expenditure relating to vaccines or medicines.

      Procedure (Recovery of Taxes etc Due in Other Member States),-Resolved, That, notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills, any Finance Bill of the present Session may include provision to give effect-

        (a) to Council Directive 76/308/EEC, as amended by Council Directive 2001/44/EC (the "Mutual Assistance Recovery Directive");

        (b) to any Commission Directive laying down detailed rules for implementing the Mutual Assistance Recovery Directive;

        (c) to any future amendments of the Mutual Assistance Recovery Directive.

      Procedure (Future Taxation),-Resolved, That, notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills, any Finance Bill of the present Session may contain the following provisions taking effect in a future year-

        (a) provision about income tax personal allowances for the year 2003-04;

        (b) provision for corporation tax to be charged for the financial year 2003;

        (c) provision amending section 158 of the Income and Corporation Taxes Act 1988;

        (d) provision amending the Taxation of Chargeable Gains Act 1992 and section 72 of the Finance Act 1991 with respect to claims to set trading losses against chargeable gains;

        (e) provision amending the Taxation of Chargeable Gains Act 1992 with respect to cases where chargeable gains are treated as accruing to a person under section 77 or 86 (read, where appropriate, with section 10A) of that Act;

        (f) provision for gifts made on or after 6th April 2003 to be treated for the purposes of section 25 of the Finance Act 1990 as made in the year of assessment prior to that in which they are in fact made;

        (g) provision about lorry road-user charge.

      Finance [Money],-Her Majesty's Recommendation having been signified to the proposed Motion relating to Finance [Money];

      That, for the purposes of any Act of the present Session relating to finance ("the Act"), it is expedient to authorise-

        (a) the payment out of money provided by Parliament of sums payable by the Secretary of State by virtue of any provisions of the Act relating to vehicle excise and registration;

        (b) any increase, attributable to any provisions of the Act relating to Schedule 20 to the Finance Act 2000, in the sums deducted from the gross revenues of the department of the Commissioners of Inland Revenue for the purpose of the payment of R&D tax credits;

        (c) the deduction of sums from those gross revenues for the purpose of the payment of tax credits in respect of research and development expenditure relating to vaccines or medicines;

        (d) the payment out of money provided by Parliament of any expenses of a relevant Minister within the meaning of section 6 of the European Communities Act 1972 resulting from any provisions of the Act relating to the recovery of amounts due in respect of agricultural levies of the European Community;

        (e) the payment out of money provided by Parliament of sums required by a Minister of the Crown or government department for preparing for the introduction of lorry road-user charge;

        (f) the payment out of the National Loans Fund with recourse to the Consolidated Fund of any expenses of the Treasury attributable to any provision of the Act relating to the administration of Government securities;

        (g) any increase in the sums paid out of the National Loans Fund or the Consolidated Fund in accordance with section 16(9) of the National Loans Act 1968.

      Ordered, That a Bill be brought in upon the foregoing Resolutions: And that the Chairman of Ways and Means, Mr Chancellor of the Exchequer, Mr Secretary Prescott, Mr Secretary Blunkett, Mr Secretary Darling, Mr Secretary Byers, Mr Secretary Milburn, Ms Secretary Hewitt, Mr Andrew Smith, Dawn Primarolo, Mr Paul Boateng and Ruth Kelly do prepare and bring it in.

    10    Finance Bill,-Mr Paul Boateng accordingly presented a Bill to grant certain duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with finance: And the same was read the first time; and ordered to be read a second time to-morrow and to be printed [Bill 125].

    11    Deregulation,-A Motion was made, and the Question being put, pursuant to Standing Order No. 18 (Consideration of draft deregulation, etc., orders), That the draft Deregulation (Correction of Birth and Death Entries in Registers or Other Records) Order 2002, which was laid before this House on 11th March, be approved-(Mr John Heppell):-It was agreed to.

    12    Veterinary Surgeons,-A Motion was made, and the Question being put forthwith, pursuant to Standing Order No. 118 (Standing Committees on Delegated Legislation), That the draft Veterinary Surgeons Act 1966 (Schedule 3 Amendment) Order 2002, which was laid before this House on 21st March, be approved-(Mr John Heppell):-It was agreed to.

    13    Northern Ireland,-A Motion was made, and the Question being put forthwith, pursuant to Standing Order No. 118 (Standing Committees on Delegated Legislation), That the draft Northern Ireland Criminal Injuries Compensation Scheme 2002, which was laid before this House on 10th April, be approved-(Mr John Heppell):-It was agreed to.

    14    Adjournment (May),-A Motion was made, and the Question being put forthwith, pursuant to Standing Order No. 25 (Periodic adjournments), That this House, at its rising on Thursday 2nd May, do adjourn till Tuesday 7th May-(Mr John Heppell):-It was agreed to.

    15    Adjournment,-A Motion was made, and the Question being proposed, That this House do now adjourn-(Mr John Heppell);

      And the Motion having been made after Ten o'clock, and the Debate having continued for half an hour, the Deputy Speaker adjourned the House without Question put, pursuant to the Standing Order, it being then twelve minutes to Twelve o'clock, till to-morrow.

    [Adjourned at 11.48 p.m.

    Michael J. Martin
    Speaker


    Mr Speaker will take the Chair at half-past Two o'clock.


    APPENDIX I

    Papers presented or laid upon the Table:

    Papers subject to Negative Resolution:

    1    Consumer Protection,-Personal Protective Equipment Regulations 2002 (S.I., 2002, No. 1144), dated 20th April 2002 [by Act] [Ms Secretary Hewitt].

Other Papers:

2    Museums and Galleries,-Account of the Wallace Collection for 2000-01, with the Report of the Comptroller and Auditor General thereon [by Act]; to be printed [No. 784] [Clerk of the House].

3    National Audit,-Report by the Comptroller and Auditor General on Ministry of Defence: Major Repair and Overhaul of Land Equipment [by Act]; to be printed [No. 757] [Clerk of the House].

4    Public Petitions,-Observations by the Secretary of State for Environment, Food and Rural Affairs on the Petition [7th March] from residents of Brockenhurst against the creation of a campsite at New Park[by Standing Order]; to be printed [Clerk of the House].

APPENDIX II

Standing Committees

1    Draft Court of Appeal (Appeals from Proscribed Organisations Appeal Commission) Rules 2002,-The Committee of Selection has discharged Barbara Follett and Kate Hoey from the Second Standing Committee on Delegated Legislation (nominated in respect of the draft Rules); and nominated in substitution Ross Cranston and Jane Griffiths.

2    Police and Criminal Evidence Act 1984 (Codes of Practice) (Visual Recording of Interviews) Order 2002,-The Committee of Selection has discharged Mr William Cash, Mrs Anne McGuire and Mr Stephen O'Brien from the Seventh Standing Committee on Delegated Legislation (nominated in respect of the Order); and nominated in substitution Mrs Cheryl Gillan, Mr James Paice and Mr Gerry Sutcliffe.

APPENDIX III

Reports from Select Committees

    1    Environment, Food and Rural Affairs,-Minutes of Evidence taken before the Genetically-modified Organisms Sub-Committee of the Environment, Food and Rural Affairs Committee [Genetically-modified Organisms]; to be printed [No. 767-ii] [Mr Mark Todd].

    2    European Scrutiny,-(1) Twenty-fifth Report from the European Scrutiny Committee; to be printed, with the Minutes of Proceedings of the Committee relating to the Report [No. 152-xxv]; and

    (2) Minutes of Evidence taken before the Committee [Democracy and Accountability in the EU and the Role of National Parliaments]; to be printed [No. 347-xv]

    [Mr Jimmy Hood].

    3    Foreign Affairs,-(1) Sixth Report from the Foreign Affairs Committee [Turkey], together with Minutes of Evidence taken before the Committee and Appendices thereto; to be printed, with the Minutes of Proceedings of the Committee relating to the Report [No. 606]; and

    (2) Minutes of Evidence taken before the Committee [Foreign Policy Aspects of the War against Terrorism]; to be printed [No. 384-v]

    [Donald Anderson].

    4    International Development,-Minutes of Evidence taken before the International Development Committee [Financing for Development]; to be printed [No. 785-i] [Tony Baldry].

    5    Standards and Privileges,-(1) Eighth Report from the Committee on Standards and Privileges [Complaints against Mr Archy Kirkwood], together with an Appendix; to be printed, with the Minutes of Proceedings of the Committee relating to the Report [No. 755]; and

    (2) Ninth Report from the Committee [A new Code of Conduct and Guide to the Rules]; to be printed, with the Minutes of Proceedings of the Committee relating to the Report [No. 763]

    [Sir George Young].

    6    Statutory Instruments,-Twenty-sixth Report from the Joint Committee on Statutory Instruments, together with Memoranda laid before the Committee; to be printed [No. 135-xxvi] [Mr David Tredinnick].

    7    Transport, Local Government and the Regions,-Minutes of Evidence taken before the Urban Affairs Sub-Committee of the Transport, Local Government and the Regions Committee [How the Local Government Act 2000 is Working]; to be printed [No. 602-i] [Andrew Bennett].

    8    Treasury,-Minutes of Evidence taken before the Treasury Committee [Budget 2002]; to be printed [No. 780-ii] [Mr John McFall].

    9    Welsh Affairs,-(1) Minutes of Evidence taken before the Welsh Affairs Committee [Broadband Cabling in Wales]; to be printed [No. 676-iv]; and

    (2) Memorandum laid before the Committee [Government Response to the First Report from the Committee, Session 2001-02, on The Children's Society in Wales]

    [Mr Martyn Jones].


[W.H., No. 75]

Minutes of Proceedings of the Sitting in Westminster Hall
[pursuant to the Order of 20th November 2000]

The sitting commenced at half-past Nine o'clock.

    Adjournment,-Resolved, That the sitting be now adjourned.-(Mr Gerry Sutcliffe.)

    And accordingly the sitting was adjourned till to-morrow.

[Adjourned at 1.57 p.m.

Sir Alan Haselhurst
Deputy Speaker



 
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