HC Deb 07 July 1997 vol 297 cc728-32

Motion made, and Question put,

That—

(1) Subject to paragraphs (2) and (3) below, relief under section 54 of the Finance Act 1989 shall not be given in respect of any payment where either—

  1. (a) the premium in respect of which the payment is made is a premium under a contract entered into on or after 2nd July 1997; or
  2. (b) the payment is received by the insurer on or after 6th April 1999.

(2) Paragraph (1) above shall not affect the giving of relief in respect of a payment received by an insurer before 6th April 1999 where—

  1. (a) the premium in respect of which the payment is made is a premium under a contract entered into on or after 2nd July 1997 but before 1st August 1997;
  2. (b) the contract is one entered into in pursuance of a written proposal received by or on behalf of the insurer before 2nd July 1997;
  3. (c) the contract is not a contract entered into by way of the renewal of an earlier contract; and
  4. (d) if the payment is not itself a payment received before 1st August 1997, the insurer had before 1st August 1997 received an earlier payment in respect of a premium under the contract in question.

(3) Paragraph (1) above shall not affect the giving of relief in respect of a payment received by an insurer before 6th April 1999 where—

  1. (a) the premium in respect of which the payment is made is a premium under a contract entered into on or after 2nd July 1997 but before 1st August 1997;
  2. (b) that contract is one entered into by way of the renewal of an earlier contract;
  3. (c) the period of insurance under the earlier contract ended before 2nd July 1997; and
  4. (d) if the payment is not itself a payment received before 1st August 1997, the insurer had before 1st August 1997 received an earlier payment in respect of a premium under the renewal contract.

(4) For the purposes of the preceding provisions of this Resolution a contract shall be taken to have been entered into by way of the renewal of an earlier contract only if—

  1. (a) it was entered into by way of the renewal of a contract which was an eligible contract for the purposes of section 54 of the Finance Act 1989 when that earlier contract was entered into;
  2. (b) the insurer under the earlier contract and the insurer under the contract by which it has been renewed are the same; and
  3. (c) the period of insurance under the earlier contract ended immediately before the beginning of the period of insurance under the contract by which it has been renewed.

(5) This Resolution has effect for the year 1997–98 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 377, Noes 113.

Division No. 45] [10.43 pm
AYES
Abbott, Ms Diane Breed, Colin
Adams, Mrs Irene (Paisley N) Brinton, Mrs Helen
Ainger, Nick Brown, Rt Hon Gordon (Dunfermline E)
Ainsworth, Robert (Cov'try NE)
Allan, Richard (Shef'ld Hallam) Brown, Rt Hon Nick (Newcastle E)
Allen, Graham (Nottingham N) Brown, Russell (Dumfries)
Anderson, Janet (Rossendale) Browne, Desmond (Kilmarnock)
Armstrong, Ms Hilary Bruce, Malcolm (Gordon)
Ashdown, Rt Hon Paddy Burden, Richard
Ashton, Joe Burgon, Colin
Atherton, Ms Candy Burstow, Paul
Atkins, Charlotte Butler, Christine
Austin, John Byers, Stephen
Ballard, Mrs Jackie Caborn, Richard
Banks, Tony Campbell, Alan (Tynemouth)
Barnes, Harry Campbell, Mrs Anne (C'bridge)
Barron, Kevin Campbell, Menzies (NE Fife)
Bayley, Hugh Campbell-Savours, Dale
Beard, Nigel Cann, Jamie
Beckett, Rt Hon Mrs Margaret Caplin, Ivor
Begg, Miss Anne (Aberd'n S) Casale, Roger
Beith, Rt Hon A J Cawsey, Ian
Bennett, Andrew F Chapman, Ben (Wirral S)
Bermingham, Gerald Chidgey, David
Berry, Roger Clapham, Michael
Best, Harold Clark, Rt Hon Dr David (S Shields)
Betts, Clive Clark, Dr Lynda (Edinburgh Pentlands)
Blackman, Liz
Blears, Ms Hazel Clark, Paul (Gillingham)
Blizzard, Bob Clarke, Charles (Norwich S)
Blunkett, Rt Hon David Clarke, Eric (Midlothian)
Borrow, David Clarke, Rt Hon Tom (Coatbridge)
Bradley, Keith (Withington) Clarke, Tony (Northampton S)
Bradley, Peter (The Wrekin) Clelland, David
Bradshaw, Ben Coaker, Vernon
Brake, Thomas Coffey, Ms Ann
Brand, Dr Peter Colman, Tony (Putney)
Connarty, Michael Harman, Rt Hon Ms Harriet
Cooper, Yvette Harris, Dr Evan
Corbett, Robin Harvey, Nick
Corbyn, Jeremy Heal, Mrs Sylvia
Corston, Ms Jean Healey, John
Cotter, Brian Henderson, Doug (Newcastle N)
Cousins, Jim Henderson, Ivan (Harwich)
Cranston, Ross Hepburn, Stephen
Crausby, David Heppell, John
Cryer, Mrs Ann (Keighley) Hesford, Stephen
Cryer, John (Hornchurch) Hewitt, Ms Patricia
Cummings, John Hill, Keith
Cunliffe, Lawrence Hodge, Ms Margaret
Cunningham, Jim (Cov'try S) Home Robertson, John
Cunningham, Rt Hon Dr John (Copeland) Hood, Jimmy
Hoon, Geoffrey
Curtis-Thomas, Mrs Claire Hope, Phil
Dafis, Cynog Hopkins, Kelvin
Dalyell, Tam Howarth, Alan (Newport E)
Darling, Rt Hon Alistair Howarth, George (Knowsley N)
Darvill, Keith Howells, Dr Kim
Davey, Edward (Kingston) Hoyle, Lindsay
Davey, Valerie (Bristol W) Hughes, Ms Beverley (Stretford)
Davidson, Ian Hughes, Simon (Southwark N)
Davies, Rt Hon Denzil (Llanelli) Humble, Mrs Joan
Davies, Geraint Hurst, Alan
Dawson, Hilton Hutton, John
Dean, Mrs Janet Iddon, Dr Brian
Denham, John Illsley, Eric
Dismore, Andrew Jackson, Ms Glenda (Hampstead)
Dobson, Rt Hon Frank Jackson, Helen (Hillsborough)
Donohoe, Brian H Jamieson, David
Doran, Frank Jenkins, Brian (Tamworth)
Drew, David Johnson, Miss Melanie (Welwyn Hatfield)
Drown, Ms Julia
Dunwoody, Mrs Gwyneth Jones, Ms Fiona (Newark)
Eagle, Angela (Wallasey) Jones, Ieuan Wyn (Ynys Môn)
Edwards, Huw Jones, Jon Owen (Cardiff C)
Efford, Clive Jones, Dr Lynne (Selly Oak)
Ellman, Ms Louise Jones, Martyn (Clwyd S)
Ennis, Jeff Jowell, Ms Tessa
Etherington, Bill Keeble, Ms Sally
Ewing, Mrs Margaret Keen, Alan (Feltham & Heston)
Fatchett, Derek Keen, Mrs Ann (Brentford)
Feam, Ronnie Keetch, Paul
Field, Rt Hon Frank Kemp, Fraser
Fisher, Mark Kennedy, Charles (Ross Skye)
Fitzpatrick, Jim Kennedy, Jane (Wavertree)
Flint, Caroline Khabra, Piara S
Flynn, Paul Kidney, David
Follett, Barbara Kilfoyle, Peter
Foster, Rt Hon Derek King, Andy (Rugby & Kenilworth)
Foster, Don (Bath) King, Ms Oona (Bethnal Green)
Foster, Michael John (Worcester) Kirkwood, Archy
Foulkes, George Kumar, Dr Ashok
Fyfe, Maria Ladyman, Dr Stephen
Galloway, George Lawrence, Ms Jackie
Gardiner, Barry Laxton, Bob
George, Andrew (St Ives) Lepper, David
Gerrard, Neil Levitt, Tom
Gibson, Dr Ian Lewis, Ivan (Bury S)
Godman, Dr Norman A Lewis, Terry (Worsley)
Godsiff, Roger Liddell, Mrs Helen
Goggins, Paul Linton, Martin
Golding, Mrs Llin Livingstone, Ken
Gordon, Mrs Eileen Livsey, Richard
Gorrie, Donald Lloyd, Tony (Manchester C)
Grant, Bernie Llwyd, Elfyn
Griffiths, Jane (Reading E) Love, Andrew
Grocott, Bruce McAvoy, Thomas
Grogan, John McCabe, Stephen
Gunnell, John McCafferty, Ms Chris
Hall, Mike (Weaver Vale) McCartney, Ian (Makerfield)
Hall, Patrick (Bedford) McDonagh, Siobhain
Hancock, Mike McDonnell, John
Hanson, David McFall, John
McGuire, Mrs Anne Salmond, Alex
McKenna, Ms Rosemary Salter, Martin
McNulty, Tony Sanders, Adrian
Mactaggart, Fiona Savidge, Malcolm
McWalter, Tony Sawford, Phil
McWiliam, John Sedgemore, Brian
Mahon, Mrs Alice Sheerman, Barry
Mallaber, Judy Sheldon, Rt Hon Robert
Marek, Dr John Shipley, Ms Debra
Marsden, Paul (Shrewsbury) Simpson, Alan (Nottingham S)
Marshall, David (Shettleston) Singh, Marsha
Marshall-Andrews, Robert Skinner, Dennis
Martlew, Eric Smith, Rt Hon Andrew (Oxford E)
Maxton, John Smith, Angela (Basildon)
Meacher, Rt Hon Michael Smith, Rt Hon Chris (Islington S)
Meale, Alan Smith, Miss Geraldine (Morecambe & Lunesdale)
Merron, Gillian
Michael, Alun Smith, Jacqui (Redditch)
Michie, Bill (Shef'ld Heeley) Smith, John (Glamorgan)
Michie, Mrs Ray (Argyll & Bute) Smith, Llew (Blaenau Gwent)
Milburn, Alan Smith, Sir Robert (W Ab'd'ns)
Mitchell, Austin Snape, Peter
Moffatt, Laura Soley, Clive
Moore, Michael Southworth, Ms Helen
Morgan, Ms Julie (Cardiff N) Spellar, John
Morgan, Rhodri (Cardiff W) Squire, Ms Rachel
Morris, Ms Estelle (B'ham Yardley) Starkey, Dr Phyllis
Morris, Rt Hon John (Aberavon) Steinberg, Gerry
Mountford, Kali Stevenson, George
Mudie, George Stewart, David (Inverness E)
Mullin, Chris Stewart, Ian (Eccles)
Murphy, Denis (Wansbeck) Stinchcombe, Paul
Murphy, Jim (Eastwood) Stoate, Dr Howard
Naysmith, Dr Doug Stott, Roger
Norris, Dan Strang, Rt Hon Dr Gavin
Oaten, Mark Straw, Rt Hon Jack
Öpik, Lambit Stringer, Graham
O'Brien, Bill (Normanton) Stuart, Ms Gisela (Edgbaston)
O'Brien, Mike (N Warks) Stunell, Andrew
O'Hara, Edward Sutcliffe, Gerry
Olner, Bill Swinney, John
O'Neill, Martin Taylor, Rt Hon Mrs Ann (Dewsbury)
Organ, Mrs Diana
Osborne, Mrs Sandra Taylor, David (NW Leics)
Pearson, Ian Taylor, Matthew (Truro)
Pendry, Tom Thomas, Gareth R (Harrow W)
Pickthall, Colin Timms, Stephen
Pike, Peter L Tipping, Paddy
Plaskitt, James Todd, Mark
Pollard, Kerry Touhig, Don
Pond, Chris Trickett, Jon
Pope, Greg Turner, Dennis (Wolverh'ton SE)
Pound, Stephen Turner, Dr George (NW Norfolk)
Prentice, Ms Bridget (Lewisham E) Twigg, Derek (Halton)
Prentice, Gordon (Pendle) Twigg, Stephen (Enfield)
Prescott, Rt Hon John Tyler, Paul
Primarolo, Dawn Vaz, Keith
Prosser, Gwyn Vis, Dr Rudi
Purchase, Ken Wallace, James
Quin, Ms Joyce Walley, Ms Joan
Radice, Giles Watts, David
Rammell, Bill Webb, Professor Steve
Rapson, Syd Welsh, Andrew
Raynsford, Nick White, Brian
Reid, Dr John (Hamilton N) Whitehead, Dr Alan
Robinson, Geoffrey (Cov'try NW) Wicks, Malcolm
Roche, Mrs Barbara Wigley, Dafydd
Rogers, Allan Williams, Rt Hon Alan (Swansea W)
Rooney, Terry
Ross, Ernie (Dundee W) Williams, Alan W (E Carmarthen)
Rowlands, Ted Williams, Mrs Betty (Conwy)
Roy, Frank Wills, Michael
Ruane, Chris Winnick, David
Ruddock, Ms Joan Winterton, Ms Rosie (Doncaster C)
Russell, Bob (Colchester) Wood, Mike
Ryan, Ms Joan Woolas, Phil
Worthington, Tony Wyatt, Derek
Wray, James Tellers for the Ayes:
Wright, Dr Tony (Cannock) Mr. Jim Dowd and
Wright, Tony D (Gt Yarmouth) Mr. Kevin Hughes.
NOES
Atkinson, David (Bour'mth E) Lidington, David
Atkinson, Peter (Hexham) Lloyd, Rt Hon Sir Peter (Fareham)
Baldry, Tony Lyell, Rt Hon Sir Nicholas
Bell, Martin (Tatton) MacGregor, Rt Hon John
Blunt, Crispin McIntosh, Miss Anne
Body, Sir Richard McLoughlin, Patrick
Bottomley, Peter (Worthing W) Madel, Sir David
Brady, Graham Malins, Humfrey
Brazier, Julian Maples, John
Brooke, Rt Hon Peter Maude, Rt Hon Francis
Browning, Mrs Angela Mawhinney, Rt Hon Dr Brian
Bruce, Ian (S Dorset) May, Mrs Theresa
Butterfill, John Merchant, Piers
Chapman, Sir Sydney (Chipping Barnet) Norman, Archie
Page, Richard
Chope, Christopher Paice, James
Clappison, James Paterson, Owen
Clifton-Brown, Geoffrey Pickles, Eric
Collins, Tim Prior, David
Colvin, Michael Redwood, Rt Hon John
Cormack, Sir Patrick Robathan, Andrew
Cran, James Robertson, Laurence (Tewk'b'ry)
Davis, Rt Hon David (Haltemprice) Roe, Mrs Marion (Broxboume)
Davies, Quentin (Grantham) Rowe, Andrew (Faversham)
Dorrell, Rt Hon Stephen Ruffley, David
Evans, Nigel Shephard, Rt Hon Mrs Gillian
Faber, David Shepherd, Richard (Aldridge)
Fabricant, Michael Simpson, Keith (Mid-Norfolk)
Flight, Howard Spelman, Mrs Caroline
Forth, Rt Hon Eric Spicer, Sir Michael
Fowler, Rt Hon Sir Norman Spring, Richard
Fraser, Christopher Stanley, Rt Hon Sir John
Gale, Roger Steen, Anthony
Garnier, Edward Swayne, Desmond
Gill, Christopher Syms, Robert
Gillan, Mrs Cheryl Tapsell, Sir Peter
Goodlad, Rt Hon Alastair Taylor, Ian (Esher & Walton)
Gorman, Mrs Teresa Taylor, John M (Solihull)
Gray, James Temple-Morris, Peter
Green, Damian Townend, John
Greenway, John Tredinnick, David
Grieve, Dominic Trend, Michael
Gummer, Rt Hon John Tyrie, Andrew
Hamilton, Rt Hon Sir Archie Viggers, Peter
Hammond, Philip Walter, Robert
Hayes, John Wardle, Charles
Heath, Rt Hon Sir Edward Wells, Bowen
Heathcoat-Amory, Rt Hon David Whitney, Sir Raymond
Hogg, Rt Hon Douglas Widdecombe, Rt Hon Miss Ann
Horam, John Wilshire, David
Howarth, Gerald (Aldershot) Winterton, Mrs Ann (Congleton)
Hunter, Andrew Winterton, Nicholas (Macclesfield)
Jackson, Robert (Wantage) Woodward, Shaun
Jenkin, Bernard (N Essex) Yeo, Tim
King, Rt Hon Tom (Bridgwater) Young, Rt Hon Sir George
Kirkbride, Miss Julie
Laing, Mrs Eleanor Tellers for the Noes:
Lansley, Andrew Mr. Richard Ottaway and
Leigh, Edward Mr. John Whittingdale.

Question accordingly agreed to.