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House of Commons
Session 1998-99
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House of Commons Votes and Proceedings
Monday 15th March 1999

The House met at half-past Two o'clock.
PRAYERS.
1European Common Fisheries Policy (Referendum),—A Motion was made, and the Question being proposed, That leave be given to bring in a Bill to make provision for the holding of a referendum on the United Kingdom's participation in the European Common Fisheries Policy; and for connected purposes—(Mr John Wilkinson.)
 
        And the Motion being opposed, after a brief explanatory statement from the Member who made the Motion and from a Member who opposed it, the Deputy Speaker put the Question, pursuant to Standing Order No. 23 (Motions for leave to bring in bills and nomination of select committees at commencement of public business):—It was agreed to.
 
        Ordered, That Mr John Wilkinson, Sir Richard Body, Mr Christopher Gill, Mrs Angela Browning, Mr John Townend, Sir Teddy Taylor, Mr Richard Shepherd, Mrs Teresa Gorman, Mr Michael Fabricant, Mr Gerald Howarth, Mr Owen Paterson and Mr Graham Brady do prepare and bring in the Bill.
2European Common Fisheries Policy (Referendum) Bill,—Mr John Wilkinson accordingly presented a Bill to make provision for the holding of a referendum on the United Kingdom's participation in the European Common Fisheries Policy; and for connected purposes: And the same was read the first time; and ordered to be read a second time on Friday 23rd April and to be printed [Bill 63].
3Ways and Means,—Amendment of the Law,—The Order of the day being read, for resuming the adjourned Debate on the Question proposed [9th March], 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; but 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 varying any rate at which that tax is at any time chargeable; or
 
        (d) for any relief, other than a relief which—
 
          (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;
 
        And the Question being again proposed:—The House resumed the adjourned Debate.
 
        And the Question being put:—It was agreed to.
 
        The Speaker then, pursuant to paragraph (3) of Standing Order No. 51 (Ways and means motions), put forthwith the Questions necessary to dispose of the further Motions, which were made by Mr Chancellor of the Exchequer.
2. Sparkling cider (rate of duty)
 
        The Question being put, That,—
 
        (1) In section 62(1A)(a) of the Alcoholic Liquor Duties Act 1979, for "£45.05" there shall be substituted "£161.20".
 
        (2) This Resolution shall have effect as from 6 o'clock in the evening of 9th March 1999.
 
        And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
 
        The House divided.
 
          Tellers for the Ayes, Mr David Jamieson, Mr David Hanson: 331.
 
          Tellers for the Noes, Mr Tim Collins, Mr James Cran: 195.
 
        So the Question was agreed to.
3. Hydrocarbon oil duties (rates and rebates)
 
        The Question being put, That,—
 
        (1) In section 6(1A) of the Hydrocarbon Oil Duties Act 1979—
 
          (a) in paragraph (a), for "£0.4926" there shall be substituted "£0.5288";
 
          (b) in paragraph (b), for "£0.4299" there shall be substituted "£0.4721"; and
 
          (c) in paragraph (c), for "£0.4499" there shall be substituted "£0.5021".
 
        (2) In section 8(3) of that Act, for "£0.2113" there shall be substituted "£0.1500".
 
        (3) In section 11(1) of that Act—
 
          (a) in paragraph (a), for "£0.0218" there shall be substituted "£0.0265"; and
 
          (b) in each of paragraphs (b) and (ba), for "£0.0282" there shall be substituted "£0.0303".
 
        (4) In section 13A(1A) of that Act—
 
          (a) in paragraph (a), for "£0.0050" there shall be substituted "£0.0055"; and
 
          (b) in paragraph (b), for "£0.0527" there shall be substituted "£0.0567".
 
        (5) In section 14(1) of that Act, for "£0.0218" there shall be substituted "£0.0265".
 
        (6) This Resolution shall have effect as from 6 o'clock in the evening of 9th March 1999.
 
        And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
 
        The House divided.
 
          Tellers for the Ayes, Mr David Hanson, Mr David Jamieson: 329.
 
          Tellers for the Noes, Mr Tim Collins, Mr Stephen Day: 196.
 
        So the Question was agreed to.
4. Hydrocarbon oil duties (drawback)
 
        Resolved, That provision may be made about the drawback of excise duty on hydrocarbon oil.
5. Tobacco products duty (rates)
 
        The Question being put, 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. CigarettesAn amount equal to 22 per cent. of the
retail price plus £82.59 per thousand
cigarettes.
2. Cigars£122.06 per kilogram.
3. Hand-rolling tobacco£87.74 per kilogram.
4. Other smoking tobacco and
    chewing tobacco
£53.66 per kilogram.
 
        (2) This Resolution shall have effect as from 6 o'clock in the evening of 9th March 1999.
 
        And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
 
        The House divided.
 
          Tellers for the Ayes, Mr David Hanson, Mr David Jamieson: 380.
 
          Tellers for the Noes, Mr Tim Collins, Mr Stephen Day: 143.
 
        So the Question was agreed to.
6. Pool betting duty (rate)
 
        Resolved, That,—
 
        (1) In section 7(1) of the Betting and Gaming Duties Act 1981, for "26.50 per cent." there shall be substituted "17.50 per cent."
 
        (2) This Resolution has effect in relation to bets the stake money on which is paid on or after 28th March 1999.
 
        And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
7. Vehicle excise duty (increase in general rate)
 
        Resolved, That,—
 
        (1) In sub-paragraph (2) of paragraph 1 of Schedule 1 to the Vehicle Excise and Registration Act 1994, for "£150" there shall be substituted "£155".
 
        (2) This Resolution has effect in relation to licences issued after 9th March 1999.
 
        And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
8. Vehicle excise duty (splitting of general rate)
 
        Resolved, That,—
 
        (1) In sub-paragraph (2) of paragraph 1 of Schedule 1 to the Vehicle Excise and Registration Act 1994, for the word "The" at the beginning there shall be substituted "Except in the case of a vehicle having an engine with a cylinder capacity not exceeding 1,100 cubic centimetres, the".
 
        (2) After that sub-paragraph there shall be inserted the following sub-paragraph—
 
          "(2A) In the case of a vehicle having an engine with a cylinder capacity not exceeding 1,100 cubic centimetres, the general rate is £100."
 
        (3) In sections 13(3)(b), 35A(5)(b) and 36(3)(b) of that Act, and in section 13(4)(b) of that Act as substituted under paragraph 8 of Schedule 4 to that Act, for the words "paragraph 1 of Schedule 1", in each place where they occur, there shall be substituted "paragraph 1(2) of Schedule 1".
 
        (4) This Resolution has effect in relation to any licence taken out for a period beginning on or after 1st June 1999.
 
        And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
9. Vehicle excise duty (rates for goods vehicles etc.)
 
        Resolved, That Schedule 1 to the Vehicle Excise and Registration Act 1994 be amended as follows—
 
        (1) In sub-paragraph (2A)(b) of paragraph 6, for "£4,670" there shall be substituted "£4,170".
 
        (2) In sub-paragraph (3) of that paragraph, for "38,000 kilograms" there shall be substituted "41,000 kilograms".
 
        (3) For the Table in paragraph 9(1) there shall be substituted—
Revenue weight of vehicleRate
(1) Exceeding(2) Not Exceeding(3) Two axle vehicle(4) Three axle vehicle(5) Four or more axle vehicle
kgskgs
3,5007,500160160160
7,50012,000300300300
12,00013,000470490350
13,00014,000650490350
14,00015,000840490350
15,00017,0001,320490350
17,00019,0001,600850350
19,00021,0001,6001,020350
21,00023,0001,6001,470510
23,00025,0001,6002,320830
25,00027,0001,6002,3401,470
27,00029,0001,6002,3402,320
29,00031,0001,6002,3403,360
31,00044,0001,6002,3404,400

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

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

Revenue weight of vehicleRate
(1) Exceeding(2) Not Exceeding(3) Two axle vehicle(4) Three axle vehicle(5) Four or more axle vehicle
kgskgs
3,5007,500155155155
7,50012,000155155155
12,00013,000155155155
13,00014,000155155155
14,00015,000155155155
15,00017,000320155155
17,00019,000600155155
19,00021,000600155155
21,00023,000600470155
23,00025,0006001,230155
25,00027,0006001,340470
27,00029,0006001,3401,320
29,00031,0006001,3402,360
31,00044,0006001,3403,400

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

Revenue weight of tractive unitRate for tractive unit with two axlesRate for tractive unit with three or more axles
(1) Exceeding(2) Not exceeding(3) Any no. of semi-trailer axles(4) 2 or more semi-trailer axles(5) 3 or more semi-trailer axles(6) Any no. of semi-trailer axles(7) 2 or more semi-trailer axles(8) 3 or more semi-trailer axles
kgskgs
3,5007,500160160160160160160
7,50012,000300300300300300300
12,00016,000460460460460460460
16,00020,000520460460460460460
20,00023,000810460460460460460
23,00026,0001,190590460590460460
26,00028,0001,1901,1304601,130460460
28,00031,0001,7401,7401,0901,740660460
31,00033,0002,5302,5301,7402,5301,000460
33,00034,0005,1705,1701,7402,5301,470570
34,00035,0005,1705,1702,8402,5302,100860
35,00036,0006,7506,7502,8402,5302,100860
36,00038,0009,2509,2503,2102,8202,8201,280
38,00041,0009,2509,2505,7504,2504,2502,500
41,00044,0009,2509,2505,7507,2507,2501,280
    (7) In paragraph 11A(3), for "4,670" there shall be substituted "4,170".

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

Revenue weight of tractive unitRate for tractive unit with two axlesRate for tractive unit with three or more axles
(1) Exceeding(2) Not exceeding(3) Any no. of semi-trailer axles(4) 2 or more semi-trailer axles(5) 3 or more semi-trailer axles(6) Any no. of semi-trailer axles(7) 2 or more semi-trailer axles(8) 3 or more semi-trailer axles
kgskgs
3,5007,500155155155155155155
7,50012,000155155155155155155
12,00016,000155155155155155155
16,00020,000155155155155155155
20,00023,000155155155155155155
23,00026,000190155155155155155
26,00028,000190155155155155155
28,00031,000740740155740155155
31,00033,0001,5301,5307401,530155155
33,00034,0004,1704,1707401,530470155
34,00035,0004,1704,1701,8401,5301,100155
35,00036,0005,7505,7501,8401,5301,100155
36,00038,0008,2508,2502,2101,8201,820280
38,00041,0008,2508,2504,7503,2503,2501,500
41,00044,0008,2508,2504,7506,2506,250280
 
         (9) Subject to the following paragraphs of this Resolution, the preceding paragraphs apply in relation to licences taken out after 9th March 1999.
 
        (10) Paragraph (11) below applies where—
 
          (a) a pre-commencement licence was taken out for a goods vehicle at a rate applicable to a vehicle with a revenue weight falling within a specified range of weights; and
 
          (b) the revenue weight of the vehicle at any time on or after 17th April 1999 (though still within the specified range of weights mentioned in paragraph (a) above) is one which, for the purposes of taking out a licence for that vehicle after 9th March 1999, would fall in a range of weights attracting a rate of duty higher than that attracted by the vehicle's licensed weight.
 
        (11) For the purposes of section 15 of the Vehicle Excise and Registration Act 1994 any use of the vehicle on a public road at a time on or after 17th April 1999 when its revenue weight falls within paragraph (10)(b) above shall be treated as a use of the vehicle so as to subject it to a rate of duty higher than that at which the pre-commencement licence was taken out.
 
        (12) Paragraph (13) below applies where—
 
          (a) a pre-commencement licence was taken out for a goods vehicle at a rate applicable to a vehicle with a revenue weight falling within a specified range of weights;
 
          (b) the revenue weight of the vehicle is increased at a time after 9th March 1999; and
 
          (c) the revenue weight of the vehicle immediately after the increase (though still within the specified range of weights mentioned in paragraph (a) above) is one which, for the purposes of taking out a licence for that vehicle after 9th March 1999, would fall in a range of weights attracting a rate of duty higher than that attracted by the vehicle's licensed weight.
 
        (13) For the purposes of section 15 of the Vehicle Excise and Registration Act 1994 any use of the vehicle on a public road after the increase in its revenue weight shall be treated (if it would not otherwise be so treated by virtue of paragraph (11) above) as a use of the vehicle so as to subject it to a rate of duty higher than that at which the pre-commencement licence was taken out.
 
        (14) In this Resolution—
 
          "licensed weight", in relation to a vehicle, means the revenue weight of the vehicle at the time when the pre-commencement licence for that vehicle was taken out; and
 
          "pre-commencement licence" means a licence taken out on or before 9th March 1999 and in force after that date.
 
        And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
10. Drawback of excise duty on goods shipped as stores etc.
 
        Resolved, That provision may be made about the drawback of excise duty on goods shipped as stores or warehoused in an excise warehouse for use as stores.
11. Value added tax (gold)
 
        Resolved, That provision may be made about value added tax in respect of supplies or importations which relate to gold.
12. Value added tax (bad debt relief: assignment)
 
        Resolved, That,—
 
        (1) In section 36 of the Value Added Tax Act 1994, for subsection (3) there shall be substituted—
 
          "(3) In subsection (2) above 'the outstanding amount' means—
 
            (a) if at the time of the claim no part of the consideration written off in the claimant's accounts as a bad debt has been received, an amount equal to the amount of the consideration so written off;
 
            (b) if at that time any part of the consideration so written off has been received, an amount by which that part is exceeded by the amount of the consideration written off;
 
    and in this subsection 'received' means received either by the claimant or, except in such circumstances as may be prescribed, by a person to whom has been assigned a right to receive the whole or any part of the consideration written off.".
 
        (2) Until such day as the Commissioners may specify in regulations made under section 36 of that Act, Part XIX of the Value Added Tax Regulations 1995, except regulation 171, shall be read as if a reference to a payment being received by the claimant were a reference to a payment being received either by the claimant or by a person to whom a right to receive it has been assigned.
 
        (3) This Resolution has effect for the purposes of the making of any refund or repayment after 9th March 1999, but does not have effect in relation to anything received on or before that day.
 
        And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
13. Value added tax (bad debt relief: regulations)
 
        Resolved, That provision may be made amending section 36(5) of the Value Added Tax Act 1994.
14. Value added tax (groups of companies)
 
        Resolved, That provision may be made about groups of companies in relation to value added tax.
15. Value added tax (repayment supplement)
 
        Resolved, That,—
 
        (1) Section 79 of the Value Added Tax Act 1994 shall be amended as follows.
 
        (2) In subsection (2)(b), for the words "the period of 30 days beginning on the date of the receipt by the Commissioners of that return or claim" there shall be substituted "the relevant period".
 
        (3) After subsection (2) there shall be inserted—
 
          "(2A) The relevant period in relation to a return or claim is the period of 30 days beginning with the later of—
 
            (a) the day after the last day of the prescribed accounting period to which the return or claim relates, and
 
            (b) the date of the receipt by the Commissioners of the return or claim.".
 
        (4) In subsections (3) and (7), for "subsection (2)(b)" there shall be substituted "subsection (2A)"; and regulations under subsection (3) shall be construed accordingly.
 
        (5) This Resolution has effect in relation to returns and claims received by the Commissioners on or after 9th March 1999.
 
        And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
16. Value added tax (meaning of "business")
 
        Resolved, That provision may be made for the repeal of section 94(3) of the Value Added Tax Act 1994.
17. Income tax (starting rate)
 
        The Question being put, That,—
 
        (1) The following shall be substituted for section 1(2)(aa) of the Income and Corporation Taxes Act 1988—
 
          "(aa) in respect of so much of an individual's total income as does not exceed £1,500, at such rate as Parliament may determine to be the starting rate for that year;".
 
        (2) The following shall be substituted for section 1(2A) of that Act—
 
          "(2A) The amount up to which an individual's income is by virtue of subsection (2) above chargeable for any year at the starting rate shall be known as the starting rate limit.".
 
        (3) In section 1(3) of that Act, for "lower rate" there shall be substituted "starting rate".
 
        (4) Section 1(4) of that Act, so far as it relates to section 1(2)(aa), shall not apply for the year 1999-2000.
 
        (5) In section 1(6A) of that Act, for "lower rate" there shall be substituted "starting rate".
 
        (6) The following shall be inserted before section 1A(2) of that Act—
 
          "(1B) In relation to any year of assessment for which income tax is charged the lower rate is 20 per cent. or such other rate as Parliament may determine.".
 
        (7) The following shall be inserted after section 1A(6) of that Act—
 
          "(6A) Where income tax at the basic rate has been borne on income chargeable at the lower rate any necessary repayment of tax shall be made on the making of a claim.".
 
        (8) In sections 547(5)(c) and 550(3) of that Act, for "lower rate" there shall be substituted "starting rate".
 
        (9) In sections 549(2), 699(2) and 819(2) of that Act, for "at the lower rate by virtue of section 1(2)(aa)" there shall be substituted "at the starting rate".
 
        (10) In section 832(1) of that Act—
 
          (a) the following shall be substituted for the definition of "lower rate"—
 
          "'lower rate', in relation to the charging of income tax for any year of assessment, means the rate of income tax specified in or determined in pursuance of section 1A(1B);", and
 
          (b) the following shall be inserted after the definition of "Schedule A business"—
 
          "'starting rate', in relation to the charging of income tax for any year of assessment, means the rate of income tax determined in pursuance of section 1(2)(aa), and any reference to the starting rate limit shall be construed in accordance with section 1(2A);".
 
        (11) In section 7(6) of the Taxes Management Act 1970, for "or the lower rate" there shall be substituted ", the lower rate or the starting rate".
 
        (12) In section 91(3)(c) of that Act, for "or the lower rate" there shall be substituted ", the lower rate or the starting rate".
 
        (13) The preceding paragraphs apply for the year 1999-2000 and subsequent years of assessment.
 
        (14) Nothing in this Resolution shall require any change to be made in the amounts deductible or repayable under section 203 of the Income and Corporation Taxes Act 1988 before 18th May 1999.
 
        And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
 
        The House divided.
 
          Tellers for the Ayes, Mr Mike Hall, Mr Clive Betts: 334.
 
          Tellers for the Noes, Mr Edward Davey, Mr Adrian Sanders: 40.
 
        So the Question was agreed to.
18. Income tax (charge and rates for 1999-2000)
 
        Resolved, That,—
 
        (1) Income tax shall be charged for the year 1999-00, and for that year—
 
          (a) the starting rate shall be 10 per cent.;
 
          (b) the basic rate shall be 23 per cent.; and
 
          (c) the higher rate shall be 40 per cent.
 
        (2) Nothing in this Resolution shall require any change to be made in the amounts deductible or repayable under section 203 of the Income and Corporation Taxes Act 1988 before 18th May 1999.
 
        And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
19. Income tax (personal allowances for those aged 65 or more)
 
        Resolved, That,—
 
        (1) For the year 1999-2000 the amounts specified in subsections (2) and (3) of section 257 of the Income and Corporation Taxes Act 1988 shall be taken to be £5,720 and £5,980, respectively.
 
        (2) Accordingly, section 257C(1) of that Act, so far as it relates to the amounts so specified, shall not apply for the year 1999-2000.
 
        (3) Nothing in paragraph (1) of this Resolution above shall require any change to be made in the amounts deductible or repayable under section 203 of that Act before 18th May 1999.
 
        And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
20. Income tax (operative date of indexation for PAYE)
 
        Resolved, That,—
 
        (1) In section 1 of the Income and Corporation Taxes Act 1988, after subsection (4) there shall be inserted—
 
          "(5A) Subsection (4) above shall not require any change to be made in the amounts deductible or repayable under section 203 during the period beginning with 6th April and ending with 17th May in the year of assessment.".
 
        (2) In section 257C of that Act, after subsection (1) there shall be inserted—
 
          "(2A) Subsection (1) above shall not require any change to be made in the amounts deductible or repayable under section 203 during the period beginning with 6th April and ending with 17th May in the year of assessment.".
 
        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.
21. Rates of capital gains tax
 
        Resolved, That provision may be made about the rates of capital gains tax.
22. Corporation tax (charge and rate for financial year 2000)
 
        Resolved, That, for the financial year 2000, corporation tax shall be charged at the rate of 30 per cent.
23. Relief for interest payments (limit for 1999-2000)
 
        Resolved, That, for the year 1999-2000, the qualifying maximum defined in section 367(5) of the Income and Corporation Taxes Act 1988 shall be £30,000.
 
        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.
24. Interest on loans for life annuities (withdrawal of relief)
 
        The Question being put, That,—
 
        (1) In section 365 of the Income and Corporation Taxes Act 1988, in subsection (1), before paragraph (a) there shall be inserted the following paragraph—
 
            "(aa) that the loan was made before 9th March 1999;".
 
        (2) After subsection (1) of that section there shall be inserted the following subsection—
 
          "(1AA) Where—
 
          (a) a loan made on or after 9th March 1999 was made in pursuance of an offer made by the lender before that date; and
 
          (b) the offer was either in writing or evidenced by a note or memorandum made by the lender before that date,
 
      the loan shall be deemed for the purposes of subsection (1)(aa) above to have been made before that date.".
 
        (3) The preceding paragraphs have effect for the year 1998-99 and subsequent years of assessment.
 
        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 Mike Hall, Mr Clive Betts: 324.
 
          Tellers for the Noes, Mrs Eleanor Laing, Sir David Madel: 191.
 
        So the Question was agreed to.
25. Cars available for private use
 
        The Question being put, That,—
 
        (1) Schedule 6 to the Income and Corporation Taxes Act 1988 shall be amended as follows.
 
        (2) In paragraph 2(1)—
 
          (a) for "in the year concerned" substitute "in a year", and
 
          (b) for "the amount ascertained under paragraph 1 above, reduced by two thirds" substitute "15 per cent. of the price of the car as regards the year".
 
        (3) In paragraph 2(2)—
 
          (a) for "in the year concerned" substitute "in a year", and
 
          (b) for "the amount ascertained under paragraph 1 above, reduced by one third" substitute "25 per cent. of the price of the car as regards the year".
 
        (4) For paragraph 4(a) substitute—
 
          "(a) paragraph 2(1) above shall have effect as if for '15 per cent.' there were substituted '25 per cent.'".
 
        (5) In paragraph 5, for "one third" substitute "one quarter".
 
        (6) The preceding paragraphs have effect for the year 1999-2000 and subsequent years of assessment.
 
        (7) This Resolution shall not require any change to be made in the amounts deductible or repayable under section 203 of the Income and Corporation Taxes Act 1988 before 18th May 1999.
 
        And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
 
        The House divided.
 
          Tellers for the Ayes, Mr Mike Hall, Mr Clive Betts: 372.
 
          Tellers for the Noes, Mrs Eleanor Laing, Sir David Madel: 137.
 
        So the Question was agreed to.
26. Tax treatment of reverse premiums etc.
 
        Resolved, That provision may be made with respect to the tax treatment of payments or other benefits received in consideration of, or in connection with, a transaction being entered into under which the person receiving the payment or other benefit, or a person connected with that person, becomes entitled to an estate or interest in, or a right in or over, land.
27. Vocational training relief
 
        Resolved, That,—
 
        (1) For subsection (2) of section 32 of the Finance Act 1991 there shall be substituted—
 
          "(2) The individual shall be entitled to relief under this subsection in respect of the payment for the year of assessment in which it is made; but relief under this subsection shall be given only on a claim made for the purpose, except where subsections (3) to (5) below apply.
 
          (2A) Where an individual is entitled to relief under subsection (2) above in respect of any payment made in a year of assessment, the amount of his liability for that year to income tax on his total income shall be the amount to which he would be liable apart from this section less whichever is the smaller of—
 
          (a) the amount which is equal to such percentage of the amount of the payment as is the basic rate for the year; and
 
          (b) the amount which reduces his liability to nil.
 
          (2B) In determining for the purposes of subsection (2A) above the amount of income tax to which a person would be liable apart from this section, no account shall be taken of—
 
          (a) any income tax reduction under Chapter I of Part VII of the Taxes Act 1988 or under section 347B of that Act;
 
          (b) any income tax reduction under section 353(1A) of the Taxes Act 1988;
 
          (c) any relief by way of a reduction of liability to tax which is given in accordance with any arrangements having effect by virtue of section 788 of the Taxes Act 1988 or by way of a credit under section 790(1) of that Act;
 
          (d) any tax at the basic rate on so much of that person's income as is income the income tax on which he is entitled to charge against any other person or to deduct, retain or satisfy out of any payment.".
 
        (2) This Resolution has effect in relation to payments made on or after 6th April 1999.
 
        (3) This Resolution shall not require any change to be made in the amounts deductible or repayable under section 203 of the Income and Corporation Taxes Act 1988 before 18th May 1999.
 
        And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
28. Settlements
 
        Resolved, That provision may be made amending section 660B of the Income and Corporation Taxes Act 1988.
29. Enterprise investment scheme
 
        Resolved, That provision may be made amending Chapter III of Part VII of the Income and Corporation Taxes Act 1988 and Schedule 5B to the Taxation of Chargeable Gains Act 1992.
30. Venture capital trusts
 
        Resolved, That provision may be made amending Schedule 15B to the Income and Corporation Taxes Act 1988.
31. Court common investment funds
 
        Resolved, That provision may be made for the purposes of income tax and corporation tax about common investment funds established under section 42 of the Administration of Justice Act 1982.
32. Discounted securities etc.
 
        Resolved, That provision (including provision having retrospective effect) may be made—
 
        (a) amending paragraph 3 of Schedule 13 to the Finance Act 1996, paragraphs 19 and 20 of Schedule 15 to that Act and sections 64 and 65 of the Finance Act 1993; and
 
        (b) modifying section 116 of the Taxation of Chargeable Gains Act 1992.
33. Chargeable gains (value shifting)
 
        Resolved, That provision may be made about value shifting in relation to the taxation of chargeable gains.
34. Chargeable gains (concessions that defer a charge)
 
        Resolved, That provision may be made about cases where, after a relief in respect of a chargeable gain has been obtained in reliance on a concession, a charge to tax would arise if the concession were an enactment to the corresponding effect.
35. Pension sharing
 
        Resolved, That provision may be made, for purposes connected with the sharing of pensions between ex-spouses, with respect to pensions and annuities.
36. Purchased life annuities
 
        Resolved, That section 657(2) of the Income and Corporation Taxes Act 1988 shall have effect, and shall be deemed always to have had effect, with the substitution of the following paragraph for the "or" at the end of paragraph (d)—
 
          "(da) to any annuity purchased under or for the purposes of a scheme approved by virtue of section 591 or in pursuance of any obligation imposed, or offer or invitation made, under or in connection with any such scheme;".
 
        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.
37. Extra-statutory arrangements for insurance groups
 
        Resolved, That provision may be made, in relation to accounting periods beginning on or after 1st January 1999, about disposals of assets the acquisition cost of which has been disregarded on a previous occasion under extra-statutory arrangements relating to groups of insurance companies.
38. Lloyd's
 
        Resolved, That provision may be made about rights under syndicates held by a member of Lloyd's under a members' agent pooling arrangement.
39. Advance pricing agreements
 
        Resolved, That provision may be made for the effect in any person's case of paragraphs 6 and 7 of Schedule 28AA to the Income and Corporation Taxes Act 1988 to be modified by an agreement to which he is not a party.
40. Controlled foreign companies
 
        Resolved, That provision may be made amending Part I of Schedule 25 to the Income and Corporation Taxes Act 1988.
41. Group relief (consequential provision)
 
        Resolved, That provision may be made with respect to the consequences of a reduction in the amount available for surrender by way of group relief.
42. Inheritance tax (gifts)
 
        Resolved, That provision may be made as to the circumstances in which gifts of land are gifts of property subject to a reservation for the purposes of inheritance tax.
43. Stamp duty (conveyances and transfers on sale)
 
        The Question being put, That the following provisions shall have effect for the period beginning with 16th March 1999 and ending 31 days after the earliest of the dates mentioned in section 50(2) of the Finance Act 1973—
 
        (1) Section 55 of the Finance Act 1963 and section 4 of the Finance Act (Northern Ireland) 1963 shall each be amended in accordance with paragraphs (2) and (3) below.
 
        (2) In subsection (1)(d), for "£2" there shall be substituted "£2.50p".
 
        (3) In subsection (1)(e), for "£3" there shall be substituted "£3.50p".
 
        (4) This Resolution applies to instruments executed on or after 16th March 1999, except where the instrument in question is executed in pursuance of a contract made on or before 9th March 1999.
 
        And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of section 50 of the Finance Act 1973.
 
        the House divided.
 
          Tellers for the Ayes, Mr Kevin Hughes, Mr Keith Hill: 365.
 
          Tellers for the Noes, Mrs Eleanor Laing, Sir David Madel:137.
 
        So the Question was agreed to.
44. Stamp duty and stamp duty reserve tax
 
        Resolved, That provision may be made in relation to stamp duty and stamp duty reserve tax.
45. Ring fence profits
 
        Resolved, That provision may be made about persons carrying on activities which fall within any of paragraphs (a) to (c) of subsection (1) of section 492 of the Income and Corporation Taxes Act 1988.
46. Petroleum revenue tax (allowable expenditure)
 
        Resolved, That provision may be made restricting the expenditure that is allowable for the purposes of petroleum revenue tax.
47. Petroleum revenue tax (assessments)
 
        Resolved, That provision may be made about the times when an assessment may be made to petroleum revenue tax.
48. Landfill tax
 
        The Question being put, That,—
 
        (1) In section 42 of the Finance Act 1996 (amount of landfill tax), in subsections (1)(a) and (2), for "£7", in each place where it occurs, there shall be substituted "£10".
 
        (2) This Resolution has effect in relation to taxable disposals made, or treated as made, on or after 1st April 1999.
 
        And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
 
        the House divided.
 
          Tellers for the Ayes, Mr Kevin Hughes, Mr Keith Hill: 350.
 
          Tellers for the Noes, Sir David Madel, Mrs Caroline Spelman:142.
 
        So the Question was agreed to.
49. Insurance premium tax (standard rate)
 
        The Question being put, That,—
 
        (1) In section 51(2)(b) of the Finance Act 1994, for "4 per cent." there shall be substituted "5 per cent."
 
        (2) Paragraph (1) above has effect in relation to a premium which falls to be regarded for the purposes of Part III of the Finance Act 1994 as received under a taxable insurance contract by an insurer on or after 1st July 1999.
 
        (3) Paragraph (1) above does not have effect in relation to a premium which—
 
          (a) is in respect of a contract made before 1st July 1999, and
 
          (b) falls to be regarded for the purposes of Part III of that Act as received under the contract by the insurer on a date before 1st January 2000, by virtue of regulations under section 68 of that Act.
 
        (4) Paragraph (3) above does not apply in relation to a premium which—
 
          (a) is an additional premium under a contract,
 
          (b) falls to be regarded for the purposes of Part III of that Act as received under the contract by the insurer on or after 1st July 1999, by virtue of regulations under section 68 of that Act, and
 
          (c) is in respect of a risk which was not covered by the contract before 1st July 1999.
 
        (5) In the application of sections 67A to 67C of that Act in relation to the increase under paragraph (1) above and the exception under paragraph (3) above—
 
          (a) the announcement for the purpose of sections 67A(1) and 67B(1) shall be taken to have been made on 9th March 1999,
 
          (b) the date of the change is 1st July 1999, and
 
          (c) the concessionary date is 1st January 2000.
 
        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 Kevin Hughes, Mr Keith Hill: 350.
 
          Tellers for the Noes, Sir David Madel, Mrs Caroline Spelman:140.
 
        So the Question was agreed to.
50. 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) which may arise from provisions designed in general to afford relief from taxation.
 
        Procedure (VAT Liabilities of Government Departments),—Resolved, That, notwithstanding anything to the contrary in the practice of the House relating to the matters which may be included in Finance Bills, any Finance Bill of the present Session may contain provision (including provision having retrospective effect) for allowing deductions to be made in respect of value added tax liabilities before the receipts of a Government department are paid into the Consolidated Fund.
 
        Procedure (Future Taxation),—Resolved, That, notwithstanding anything to the contrary in the practice of the House relating to the matters which 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 indexation of the limits for rates of income tax;
 
        (b) provision for corporation tax to be charged for the financial year 2000;
 
        (c) provision as to the rates at which corporation tax is charged;
 
        (d) provision for the introduction of a tax credit in respect of children;
 
        (e) provision about married couple's allowance;
 
        (f) provision for and in connection with the abolition of widow's bereavement allowance and additional relief in respect of children;
 
        (g) provision about maintenance payments and other annual payments;
 
        (h) provision relating to income tax relief for interest payments;
 
        (i) provision amending section 548 of the Income and Corporation Taxes Act 1988;
 
        (j) provision abolishing vocational training relief under sections 32 and 33 of the Finance Act 1991;
 
        (k) provision amending section 48(2)(a) of the Finance (No. 2) Act 1997.
 
        Finance [Money],—Her Majesty's Recommendation having been signified to the proposed Motion relating to Finance [Money];
 
        The Question being put, That, for the purposes of any Act of the present Session relating to finance, it is expedient to authorise—
 
          (a) the payment out of money provided by Parliament of sums required by the Commissioners of Inland Revenue and the Commissioners of Customs and Excise in order to secure that, if the United Kingdom were to move to the third stage of economic and monetary union, they would be able to exercise their functions relating to taxes and duties (including agricultural levies of the European Community);
 
          (b) any increase attributable to any provision of that Act relating to the Debt Management Account in the sums payable out of or into the National Loans Fund or the Consolidated Fund; and
 
          (c) any payments out of or into that Account.
 
        The House proceeded to a division.
 
Tuesday 16th March 1999
 
          Tellers for the Ayes, Jane Kennedy, Mr Robert Ainsworth: 351.
 
          Tellers for the Noes, Mr Tim Collins, Mrs Caroline Spelman:132.
 
        So the Question was agreed to.
 
            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 Straw, Mr Secretary Blunkett, Mr Secretary Dobson, Mr Secretary Darling, Mr Secretary Byers, Mr Alan Milburn, Dawn Primarolo, Mrs Barbara Roche and Ms Patricia Hewitt do prepare and bring it in.
4Finance Bill,—Mrs Barbara Roche accordingly presented a Bill to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with Finance: And the same was read the first time; and ordered to be read a second time this day and to be printed [Bill 62].
5Adjournment,—Resolved, That this House do now adjourn.—(Mr Kevin Hughes.)
 
        And accordingly the House, having continued to sit till twenty-seven minutes to One o'clock on Tuesday morning, adjourned till this day.
[Adjourned at 12.33 a.m.
Betty Boothroyd
Speaker        

Madam 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:
1Constitutional Law,—National Assembly for Wales (Day of First Ordinary Election) (Postponement of Community Councils Elections etc.) Order 1999 (S.I., 1999, No. 722), dated 9th March 1999 [by Act] [Mr Secretary Michael].
2Education,—Nursery Education (England) (Amendment) Regulations 1999 (S.I., 1999, No. 802), dated 12th March 1999 [by Act] [Mr Secretary Blunkett].
3Local Government,—Local Government Act 1988 (Defined Activities) (Exemption) (Burnley Borough Council and Epping Forest District Council) Order 1999 (S.I., 1999, No. 777), dated 11th March 1999 [by Act] [Mr Secretary Prescott].
4Medicines,—Medicines (Monitoring of Advertising) Amendment Regulations 1999 (S.I., 1999, No. 784), dated 9th March 1999 [by Act] [Mr Secretary Dobson].
5Merchant Shipping,—Merchant Shipping (Cargo Ship Construction) (Amendment) Regulations 1999 (S.I., 1999, No. 643), dated 8th March 1999 [by Act] [Mr Secretary Prescott].
6National Health Service,—(1) Road Traffic (NHS Charges) Regulations 1999 (S.I., 1999, No. 785), and
 
        (2) Road Traffic (NHS Charges) (Reviews and Appeals) Regulations 1999 (S.I., 1999, No. 786),
 
    dated 15th March 1999 [by Act] [Mr Secretary Dobson].
7Social Security,—(1) Social Security Benefits (Miscellaneous Amendments) Regulations 1999 (S.I., 1999, No. 714), dated 9th March 1999, and
 
        (2) Social Security (Contributions and Credits) (Miscellaneous Amendments) Regulations 1999 (S.I., 1999, No. 568), dated 5th March 1999
 
    [by Act] [Mr Secretary Darling].
Other Papers:
8Erskine Bridge Tolls,—Accounts of the Scottish Office Development Department: Erskine Bridge for 1997-98, with the Report of the Comptroller and Auditor General thereon [by Act]; to be printed [No. 320] [Clerk of the House].
9Miscellaneous (No. 19, 1999),—Notes exchanged at London on 9th December 1998 and 9th March 1999 between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Kingdom of the Netherlands concerning Privileges and Immunities for the Liaison Officers at Europol, with an Explanatory Memorandum [by Command] [Cm. 4290] [Mr Secretary Cook].
10National Audit,—Financial Auditing and Reporting: General Report of the Comptroller and Auditor General for 1997-98 [by Act]; to be printed [No. 1-XIX] [Mrs Barbara Roche].
11Salvage and Intervention,—Report of Lord Donaldson's Review of Salvage and Intervention and their Command and Control [by Command] [Cm. 4193] [Mr Secretary Prescott].
APPENDIX II
Standing Committees
1Mental Health (Amendment) (Scotland) Bill,—The Speaker has allocated the Bill to the Second Scottish Standing Committee.
2Breeding and Sale of Dogs (Welfare) Bill,—The Speaker has allocated the Bill to Standing Committee C.
3Draft Railways (Rateable Values) (Amendment) Order 1999,—The Committee of Selection has discharged Ms Beverley Hughes from the First Standing Committee on Delegated Legislation (nominated in respect of the draft Order); and nominated in substitution Mr Ben Chapman.
APPENDIX III
Reports from Select Committees
1Culture, Media and Sport,—Minutes of Evidence taken before the Culture, Media and Sport Committee [Staging International Sporting Events]; to be printed [No. 124-iv] [Mr Gerald Kaufman].
2Food Standards,—Minutes of Evidence taken before the Food Standards Committee [Draft Food Standards Bill]; to be printed [No. 276-viii] [Mr Kevin Barron].
3Public Accounts,—(1) Seventh Report from the Committee of Public Accounts [The Forensic Science Service]; to be printed, with the Minutes of Proceedings of the Committee relating to the Report [No. 321];
 
        (2) Eighth Report from the Committee [Ministry of Defence: Sales of the Royal Dockyards]; to be printed, with the Minutes of Proceedings of the Committee relating to the Report [No. 96]; and
 
        (3) Minutes of Evidence taken before the Committee [Council for the Central Laboratory of the Research Councils Accounts 1997-98]; to be printed [No. 332-i]
 
    [Mr David Davis].



 
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