division_name: Budget Resolutions and Economic Situation - 16. Value added tax (meaning of "business")
motion: <p>Resolved, 
  <p>That--
   
  
    <p>  
  (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.
  <p>Resolved, 
  <p>That--
   
  
  <p> 
   
  (1) In sub-paragraph (2) of paragraph 1 of Schedule 1 to the Vehicle Excise and Registration Act 1994, for "&#163;150" there shall be substituted "&#163;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.
  <p>Resolved, 
  <p>
   
  (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.
  <p>Resolved, 
  <p>That Schedule 1 to the Vehicle Excise and Registration Act 1994 be amended as follows--
  <p> 
   
  (1) In sub-paragraph (2A)(b) of paragraph 6, for "&#163;4,670" there shall be substituted "&#163;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--
  <p> 
  
      Revenue weight of vehicle     Rate
   
  
     (1) Exceeding     (2) Not exceeding     (3) Two axle vehicle     (4) Three axle vehicle     (5) Four or more axle vehicle 
    
  
   
  
     
     kgs    kgs    &#163;     &#163;     &#163; 
     
     3,500    7,500    160     160     160 
     
     7,500    12,000    300     300     300 
     
     12,000    13,000    470     490     350
     
     13,000    14,000    650     490     350 
     
     14,000    15,000    840     490     350 
     
     15,000    17,000    1,320     490     350 
     
     17,000    19,000    1,600     850     350 
     
     19,000    21,000    1,600     1,020     350 
     
     21,000    23,000    1,600     1,470     510 
     
     23,000    25,000    1,600     2,320     830 
     
     25,000    27,000    1,600     2,340     1,470
     
     27,000    29,000    1,600     2,340     2,320
     
     29,000    31,000    1,600     2,340     3,360
     
     31,000    44,000    1,600     2,340     4,400
    
   
  
   
  (4) In paragraph 9A(3), for "&#163;4,670" there shall be substituted "&#163;4,170".
   
  
   
  (5) For the Table in paragraph 9B there shall be substituted--
   
  
  
   
  
  <p>Revenue weight of vehicle     Rate
   
  
     (1) Exceeding     (2) Not exceeding     (3) Two axle vehicle     (4) Three axle vehicle     (5) Four or more axle vehicle 
    
  
   
  
     
     kgs    kgs    &#163;     &#163;     &#163;
     
     3,500    7,500    155     155     155
     
     7,500    12,000    155     155     155 
     
     12,000    13,000    155     155     155
     
     13,000    14,000    155     155     155
     
     14,000    15,000    155     155     155
     
     15,000    17,000    320     155     155
     
     17,000    19,000    600     155     155
     
     19,000    21,000    600     155     155 
     
     21,000    23,000    600     470     155 
     
     23,000    25,000    600     1,230     155 
     
     25,000    27,000    600     1,340     470 
     
     27,000    29,000    600     1,340     1,320
     
     29,000    31,000    600     1,340     2,360 
     
     31,000    44,000    600     1,340     3,400 
     
   
  
   
  
  
  
   
  
  
  
   
  
  
  
   
  
  <p>
  
   
  (6) For the Table in paragraph 11(1) there shall be substituted--
   
  
  <p>
  
   
      Revenue weight of tractive unit    Rate for tractive unit with two axles     Rate for tractive unit with three or more axles 
   
  
     (1)     (2)     (3)     (4)     (5)     (6)     (7)     (8) 
     
     Exceeding    Not exceeding    Any number of semi-trailer axles     2 or more semi-trailer axles     3 or more semi-trailer axles     Any number of semi-trailer axles     2 or more semi-trailer axles     3 or more semi-trailer axles 
     
     kgs    kgs    &#163;    &#163;    &#163;    &#163;    &#163;    &#163;
     
     3,500    7,500    160    160    160    160    160    160
     
     7,500    12,000    300    300    300    300    300    300
     
     12,000    16,000    460    460    460    460    460    460
     
     16,000    20,000    520    460    460    460    460    460
     
     20,000    23,000    810    460    460    460    460    460
     
     23,000    26,000    1,190    590    460    590    460    460
     
     26,000    28,000    1,190    1,130    460    1,130    460    460
     
     28,000    31,000    1,740    1,740    1,090    1,740    660    460
     
     31,000    33,000    2,530    2,530    1,740    2,530    1,000    460
     
     33,000    34,000    5,170    5,170    1,740    2,530    1,470    570
     
     34,000    35,000    5,170    5,170    2,840    2,530    2,100    860
     
     35,000    36,000    6,750    6,750    2,840    2,530    2,100    860
     
     36,000    38,000    9,250    9,250    3,210    2,820    2,820    1,280
     
     38,000    41,000    9,250    9,250    5,750    4,250    4,250    2,500
     
     41,000    44,000    9,250    9,250    5,750    7,250    7,250    1,280
     
   
  
  <p>
   
  (8) For the Table in paragraph 11B there shall be substituted--
   
  
  <p> 
      Revenue weight of tractive unit     Rate for tractive unit with two axles     Rate for tractive unit with three or more axles 
   
  
     (1)    (2)    (3)    (4)    (5)    (6)    (7)    (8)
     
     Exceeding    Not exceeding    Any number of semi-trailer axles     2 or more semi-trailer axles     3 or more semi-trailer axles     Any number of semi-trailer axles     2 or more semi-trailer axles     3 or more semi-trailer axles 
    
  
   
  
     
     kgs    kgs    &#163;    &#163;    &#163;    &#163;    &#163;    &#163;
     
     3,500    7,500    155    155    155    155    155    155
     
     7,500    12,000    155    155    155    155    155    155
     
     12,000    16,000    155    155    155    155    155    155
     
     16,000    20,000    155    155    155    155    155    155
     
     20,000    23,000    155    155    155    155    155    155
     
     23,000    26,000    190    155    155    155    155    155
     
     26,000    28,000    190    155    155    155    155    155
     
     28,000    31,000    740    740    155    740    155    155
     
     31,000    33,000    1,530    1,530    740    1,530    155    155
     
     33,000    34,000    4,170    4,170    740    1,530    470    155
     
     34,000    35,000    4,170    4,170    1,840    1,530    1,100    155
     
     35,000    36,000    5,750    5,750    1,840    1,530    1,100    155
     
     36,000    38,000    8,250    8,250    2,210    1,820    1,820    280
     
     38,000    41,000    8,250    8,250    4,750    3,250    3,250    1,500
     
     41,000    44,000    8,250    8,250    4,750    6,250    6,250    280
   
  
  
     
  
   
  
  
  
   
  
  <p>
   
  (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--
   
  
   
  <p>(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 <p>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.
  <p>Resolved, 
  <p>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.
    <p>Resolved, 
  <p>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)   
  <p>Resolved, 
  <p>That--
   
  
  <p> 
   
  (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.
  <p>Resolved, 
  <p>That provision may be made amending section 36(5) of the Value Added Tax Act 1994.
   
  
    14. Value added tax (groups of companies)   
  <p>Resolved, 
  <p>That provision may be made about groups of companies in relation to value added tax.
   
  
    15. Value added tax (repayment supplement)   
  <p>Resolved, 
  <p>That--
   
  
  <p> 
   
  (1) Section 79 of the Value Added Tax Act 1994 shall be amended as follows.
  <p>
   
  (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.
  <p>Resolved, 
  <p>That provision may be made for the repeal of section 94(3) of the Value Added Tax Act 1994.
   
  
    17. Income tax (starting rate)   
  <p>Motion made, and Question put, 
  <p>
   
  (10) In section 832(1) of that Act--
   
  
   
  (a) the following shall be substituted for the definition of "lower rate"--
   
  
   
  "'lower rate', in relation to the charging of income tax for any year of assessment, means the rate of income tax specified in or determined in pursuance of section 1A(1B);", and
   
  
   
  (b) the following shall be inserted after the definition of "Schedule A business"--
   
  
   
  "'starting rate', in relation to the charging of income tax for any year of assessment, means the rate of income tax determined in pursuance of section 1(2)(aa), and any reference to the starting rate limit shall be construed in accordance with section 1(2A);".
   
  
   
  (11) In section 7(6) of the Taxes Management Act 1970, for "or the lower rate" there shall be substituted ", the lower rate or the starting rate".
   
  
   
  (12) In section 91(3)(c) of that Act, for "or the lower rate" there shall be substituted ", the lower rate or the starting rate".
   
  
   
  (13) The preceding paragraphs apply for the year 1999-00 and subsequent years of assessment.
   
  
   
  (14) Nothing in this Resolution shall require any change to be made in the amounts deductible or repayable under section 203 of the Income and Corporation Taxes Act 1988 before 18th May 1999.
   
  
   
  And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
   The House divided:  Ayes 334, Noes 40.
  <p> 
    