division_name: Budget Resolutions and Economic Situation - 21. Rates of capital gains tax
motion: <p>Resolved, 
  <p>That--
   
  
    <p> 
  (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.
  <p>Resolved, 
  <p>That--
   
  
  <p> 
   
  (1) For the year 1999-00 the amounts specified in subsections (2) and (3) of section 257 of the Income and Corporation Taxes Act 1988 shall be taken to be &#163;5,720 and &#163;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 1999-00.
   
  
   
  (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.
  <p>Resolved, 
  <p>That--
   
  
  <p> 
   
  (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.
  <p>Resolved, 
  <p>That provision may be made about the rates of capital gains tax.
  <p>
    22. Corporation tax (charge and rate for financial year 2000)   
  <p>Resolved, 
  <p>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 1999-00)   
  <p>Resolved, 
  <p>That, for the year 1999-00, the qualifying maximum defined in section 367(5) of the Income and Corporation Taxes Act 1988 shall be &#163;30,000.
  <p> 
   
  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)   
  <p>Motion made, and Question put ,
  <p>That--
   
  
  <p> 
   
  (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:  Ayes 324, Noes 191.
  <p> 
    