division_name: Budget Resolutions and Economic Situation
motion: <p pid="c.804.1/1" pwmotiontext="yes">Question accordingly agreed to.</p>
  
  <p pid="c.804.1/2" pwmotiontext="yes">48. Securitisation companies</p>
  
  <p class="italic" pid="c.804.1/3" pwmotiontext="yes">Resolved,</p>
  
  <p class="indent" pid="c.804.1/4" pwmotiontext="yes">That provision (including provision having retrospective effect) may be made about the taxation of securitisation companies.</p>
  
  <p pid="c.804.1/5" pwmotiontext="yes">49. Real Estate Investment Trusts</p>
  
  <p class="italic" pid="c.804.1/6" pwmotiontext="yes">Resolved,</p>
  
  <p class="indent" pid="c.804.1/7" pwmotiontext="yes">That provision may be made enabling companies which carry on property rental business to acquire a status that provides certain exemptions and liabilities (in relation to companies and shareholders).</p>
  
  <p pid="c.804.1/8" pwmotiontext="yes">50. Oil (market value)</p>
  
  <p class="italic" pid="c.804.1/9" pwmotiontext="yes">Resolved,</p>
  
  <p class="indent" pid="c.804.1/10" pwmotiontext="yes">That provision may be made in relation to the market value of oil (within the meaning of Part 1 of the Oil Taxation Act 1975).</p>
  
  <p pid="c.804.1/11" pwmotiontext="yes">51. Oil (nominated contracts and blended oil)</p>
  
  <p class="italic" pid="c.804.1/12" pwmotiontext="yes">Resolved,</p>
  
  <p class="indent" pid="c.804.1/13" pwmotiontext="yes">That provision may be made&#8212;</p>
  
  <p pid="c.804.1/14" pwmotiontext="yes">      (a) for allocating blended oil to different fields for the purposes of section 2 of the Oil Taxation Act 1975, and</p>
  
  <p pid="c.804.1/15" pwmotiontext="yes">      (b) amending section 61 of and Schedule 10 to the Finance Act 1987.</p>
  
  <p pid="c.804.1/16" pwmotiontext="yes">52. Ring fence trades (rate of supplementary charge)</p>
  
  <p class="italic" pid="c.804.1/17" pwmotiontext="yes">Motion made, and Question put,</p>
  
  <p class="indent" pid="c.804.1/18" pwmotiontext="yes">That&#8212;</p>
  
  <p class="indent" pid="c.804.1/19" pwmotiontext="yes">(1) In section 501A of the Income and Corporation Taxes Act 1988, in subsection (1), for "10 per cent" there shall be substituted "20 per cent".</p>
  
  <p class="indent" pid="c.804.1/20" pwmotiontext="yes">(2) The amendment made by paragraph (1) shall have effect in relation to any accounting period beginning on or after 1st January 2006 (but see also paragraph (3)).</p>
  
  <p class="indent" pid="c.804.1/21" pwmotiontext="yes">(3) For the purpose of calculating the amount of the supplementary charge on a company for an accounting period (a "straddling period") beginning before 1st January 2006 and ending on or after that date&#8212;</p>
  
  <p pid="c.804.1/22" pwmotiontext="yes">      (a) so much of the straddling period as falls before 1st January 2006, and so much of the straddling period as falls on or after that date, shall be treated as separate accounting periods, and</p>
  
  <p pid="c.804.1/23" pwmotiontext="yes">      (b) the company's adjusted ring fence profits for the straddling period shall be apportioned to the two separate accounting periods in proportion to the number of days in those periods.</p>
  
  <p class="indent" pid="c.804.1/24" pwmotiontext="yes">(4) The amount of the supplementary charge on the company for the straddling period shall be the sum of the amounts of supplementary charge that would, in accordance with paragraph (3), be chargeable on the company for those separate accounting periods.</p>
  
  <p class="indent" pid="c.804.1/25" pwmotiontext="yes">(5) In the case of a company's straddling period&#8212;</p>
  
  <p pid="c.804.1/26" pwmotiontext="yes">      (a) the Instalment Payments Regulations shall apply as if the amendment made by paragraph (1) had not been made, but</p>
  
  <p pid="c.804.1/27" pwmotiontext="yes">      (b) those Regulations shall also apply separately, in accordance with the following paragraph, in relation to the increase in the amount of any supplementary charge on the company for that period that arises as a result of that amendment.</p>
  
  <p class="indent" pid="c.804.1/28" pwmotiontext="yes">(6) In that separate application of those Regulations as mentioned in paragraph (5)(b), those Regulations shall have effect as if, for the purposes of those Regulations,&#8212;</p>
  
  <p pid="c.804.1/29" pwmotiontext="yes">      (a) the straddling period were an accounting period beginning on 1st January 2006,</p>
  
  <p pid="c.804.1/30" pwmotiontext="yes">      (b) supplementary charge were chargeable on the company for that period, and</p>
  
  <p pid="c.804.1/31" pwmotiontext="yes">      (c) the amount of that charge were equal to the increase in the amount of the supplementary charge for the straddling period that arises as a result of the amendment made by paragraph (1).</p>
  
  <p class="indent" pid="c.804.1/32" pwmotiontext="yes">(7) Any reference in the Instalment Payments Regulations to the total liability of a company shall, accordingly, be read&#8212;</p>
  
  <p pid="c.804.1/33" pwmotiontext="yes">      (a) in their application as a result of paragraph (5)(a), as a reference to the amount that would be the company's total liability for the straddling period if the amendment made by paragraph (1) had not been made, and</p>
  
  <p pid="c.804.1/34" pwmotiontext="yes">      (b) in their application as a result of paragraph (5)(b), as a reference to the amount of the supplementary charge on the company for the deemed accounting period under paragraph (6)(a).</p>
  
  <p class="indent" pid="c.804.1/35" pwmotiontext="yes">(8) For the purposes of the Instalment Payments Regulations&#8212;</p>
  
  <p pid="c.804.1/36" pwmotiontext="yes">      (a) a company shall be regarded as a large company as respects the deemed accounting period under paragraph (6)(a) if (and only if) it is a large company for those purposes as respects the straddling period, and</p>
  
  <p pid="c.804.1/37" pwmotiontext="yes">      (b) any question whether a company is a large company as respects the straddling period shall be determined as it would have been determined if the amendment made by paragraph (1) had not been made.</p>
  
  <p class="indent" pid="c.804.1/38" pwmotiontext="yes">(9) If the Instalment Payments Regulations&#8212;</p>
  
  <p pid="c.804.1/39" pwmotiontext="yes">      (a) apply in relation to a company's liability to supplementary charge for the deemed accounting period under paragraph (6)(a), and</p>
  
  <p pid="c.804.1/40" pwmotiontext="yes">      (b) would (but for this paragraph) treat any instalment payment in respect of that liability as being due and payable on a date falling on or before 22nd March 2006,</p>
  
  <p class="indent" pid="c.804.1/41" pwmotiontext="yes">those Regulations shall have effect as if the payment were due and payable instead at the end of the period of 14 days beginning with that date.</p>
  
  <p class="indent" pid="c.804.1/42" pwmotiontext="yes">(10) In this Resolution&#8212;</p>
  
  <p pid="c.804.1/43" pwmotiontext="yes">      (a) "adjusted ring fence profits" has the meaning given by section 501A of the Income and Corporation Taxes Act 1988,</p>
  
  <p pid="c.804.1/44" pwmotiontext="yes">      (b) "the Instalment Payments Regulations" means the Corporation Tax (Instalment Payments) Regulations 1998,</p>
  
  <p pid="c.804.1/45" pwmotiontext="yes">      (c) "supplementary charge" means any sum chargeable under section 501A(1) of the Income and Corporation Taxes Act 1988 as if it were an amount of corporation tax.</p>
  
  <p class="indent" pid="c.804.1/46" pwmotiontext="yes">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>
  
  <p pid="c.804.1/47" pwmotiontext="yes"><i>The House divided:</i> Ayes 320, Noes 75.</p>