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†
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2
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WAYS AND MEANS: Adjourned debate on Question [12th March].
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[Until 10.00 p.m.]
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(1)
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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.
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(2)
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This Resolution does not extend to the making of any amendment with respect to value added tax so as to provide—
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(a)
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for zero-rating or exempting a supply, acquisition or importation,
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(b)
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for refunding an amount of tax,
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(c)
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for any relief, other than a relief that—
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(i)
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so far as it is applicable to goods, applies to goods of every description, and
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(ii)
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so far as it is applicable to services, applies to services of every description.
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The Remaining Motions in this item, numbered 2 to 58, and those relating to Procedure and Finance (Money) are to be moved
at the conclusion of the Budget Debate after the decision on the Motion before the House. They will be decided without debate
(Standing Order No. 51(3)).
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2. Income tax (charge and main rates for 2008-09)
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(1)
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Income tax is charged for the tax year 2008-09.
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(a)
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the basic rate is 20%, and
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(b)
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the higher rate is 40%.
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And it is 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.
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3. Income tax (personal allowances for those aged 65 or over)
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(1)
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For the tax year 2008-09—
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(a)
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the amount specified in section 36(1) of the Income Tax Act 2007 and section 257(2) of the Income and Corporation Taxes Act
1988 (personal allowance for those aged 65 to 74) is replaced with “£9,030”, and
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(b)
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the amount specified in section 37(1) of the Income Tax Act 2007 and section 257(3) of the Income and Corporation Taxes Act
1988 (personal allowance for those aged 75 and over) is replaced with “£9,180”.
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(a)
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section 57 of the Income Tax Act 2007 (indexation), so far as relating to the amounts specified in sections 36(1) and 37(1)
of that Act, and
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(b)
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section 257C of the Income and Corporation Taxes Act 1988, so far as relating to the amounts specified in section 257(2) and
(3) of that Act,
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(indexation) do not apply for the tax year 2008-09.
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And it is 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.
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4. Income tax (abolition of starting rate)
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(1)
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In section 6 of the Income Tax Act 2007 (rates at which income tax is charged)—
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(a)
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in subsection (1), omit paragraph (a), and
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(b)
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in subsection (2), omit “starting rate,”,
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and accordingly, in the title, omit “starting rate,”.
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(2)
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In section 10 of that Act (income charged at main rates: individuals)—
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(b)
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for subsection (2) substitute—
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“ (2)
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Income tax on an individual’s income up to the basic rate limit is charged at the basic rate (except to the extent that, in
accordance with section 12, it is charged at the starting rate for savings).”,
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(c)
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in subsection (4), omit the entry relating to section 12, and
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(d)
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for subsection (5) substitute—
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“ (5)
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The basic rate limit is £36,000.
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(6)
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The basic rate limit is increased in some circumstances: see—
(a) section 414(2) (gift aid relief), and
(b) section 192(4) of FA 2004 (relief for pension contributions).",
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and accordingly, in the title, omit “starting,”.
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(3)
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Omit section 20 (starting rate limit and basic rate limit).
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(4)
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The amendments made by this Resolution have effect for the tax year 2008-09 and subsequent tax years.
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And it is 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.
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5. Corporation tax (charge and main rates for financial year 2009)
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(1)
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Corporation tax is charged for the financial year 2009.
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(2)
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For that year the rate of corporation tax is—
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(a)
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28% on profits of companies other than ring fence profits, and
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(b)
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30% on ring fence profits of companies.
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6. Corporation tax (small companies’ rates and fractions for financial year 2008)
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(1)
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For the financial year 2008 the small companies’ rate is—
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(a)
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21% on profits of companies other than ring fence profits, and
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(b)
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19% on ring fence profits of companies, and
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(2)
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For the financial year 2008 the fraction mentioned in section 13(2) of the Income and Corporation Taxes Act 1988 is—
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(a)
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7/400ths in relation to profits of companies other than ring fence profits, and
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(b)
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11/400ths in relation to ring fence profits of companies.
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That provision may be made amending, or making amendments connected with, the Taxation of Chargeable Gains Act 1992.
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8. Rates of duty on alcoholic liquor
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(1)
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The Alcoholic Liquor Duties Act 1979 is amended as follows.
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(2)
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In section 5 (rate of duty on spirits), for “£19.56” substitute “£21.35”.
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(3)
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In section 36(1AA)(a) (standard rate of duty on beer), for “£13.71” substitute “£14.96”.
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(4)
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In section 62(1A) (rates of duty on cider)—
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(a)
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in paragraph (a) (rate of duty per hectolitre in the case of sparkling cider of a strength exceeding 5.5 per cent), for “£172.33”
substitute “£188.10”,
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(b)
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in paragraph (b) (rate of duty per hectolitre in the case of cider of a strength exceeding 7.5 per cent which is not sparkling
cider), for “£39.73” substitute “£43.37”, and
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(c)
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in paragraph (c) (rate of duty per hectolitre in any other case), for “£26.48” substitute “£28.90”.
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(5)
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For the table in Schedule 1 substitute—
"TABLE OF RATES OF DUTY ON WINE AND MADE-WINE PART 1 WINE OR MADE-WINE OF A STRENGTH NOT EXCEEDING 22 PER CENT
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Description of wine or made-wine
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Rates of duty per hectolitre £
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Wine or made-wine of a strength not exceeding 4 per cent
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59.87
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Wine or made-wine of a strength exceeding 4 per cent but not exceeding 5.5 per cent
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82.32
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Wine or made-wine of a strength exceeding 5.5 per cent but not exceeding 15 per cent and not being sparkling
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194.28
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Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent but less than 8.5 per cent
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188.10
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Sparkling wine or sparkling made-wine of a strength of 8.5 per cent or of a strength exceeding 8.5 per cent but not exceeding
15 per cent
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248.85
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Wine or made-wine of a strength exceeding 15 per cent but not exceeding 22 per cent
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259.02
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PART 2 WINE OR MADE-WINE OF A STRENGTH EXCEEDING 22 PER CENT
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Description of wine or made-wine
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Rates of duty per litre of alcohol in the wine or made-wine £
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Wine or made-wine of a strength exceeding 22 per cent
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21.35”
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(6)
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The amendments made by this Resolution come into force on 17 March 2008.
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And it is 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.
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9. Rates of tobacco products duty
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(1)
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For the table in Schedule 1 to the Tobacco Products Duty Act 1979 substitute—
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"TABLE
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1.Cigarettes
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An amount equal to 22 per cent of the retail price plus £112.07 per thousand cigarettes
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2.Cigars
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£163.22 per kilogram
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3.Hand-rolling tobacco
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£117.32 per kilogram
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4.Other smoking tobacco and chewing tobacco
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£71.76 per kilogram”
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