HC Deb 07 July 1997 vol 297 cc733-7

Motion made, and Question put,

That—

(1) In section 231 of the Income and Corporation Taxes Act 1988—

  1. (a) in subsection (2) for "Subject to section 241(5)" there shall be substituted "Subject to sections 231A and 241(5)"; and
  2. (b) at the beginning of subsection (3) there shall be inserted "Subject to section 231A,".

(2) After section 231 of the Income and Corporation Taxes Act 1988 there shall be inserted—

"Restrictions on the use of tax credits by pension funds

231A.—(1) No claim shall be made under section 231(2) for payment of the amount of a tax credit if or to the extent that the qualifying distribution to which the credit relates is income of a pension fund.

(2) In the case of any pension fund, for any year of assessment the aggregate amount of the tax credits in respect of which claims are made under section 231(3) must not exceed the aggregate amount of the tax credits in respect of the qualifying distributions comprised in the income of the pension fund and brought into charge to tax.

(3) Accordingly, no payment shall be made under section 231(3) in respect of so much of the excess there mentioned as is referable to a tax credit in respect of a qualifying distribution if or to the extent that the qualifying distribution is income of a pension fund.

(4) In this section—

(5) For convenience of identification only, the schemes, funds or other arrangements which are "pension funds" for the purposes of this section by virtue of the definition of that expression in subsection (4) above include, in particular, those whose income is, in whole or in part, exempt, or eligible for exemption, from tax under or by virtue of any of the following provisions—

  1. (a) section 512(2);
  2. (b) section 592(2);
  3. (c) section 608(2)(a);
  4. (d) section 613(4);
  5. (e) section 614(2), (3), (4) or (5);
  6. (f) section 620(6);
  7. (g) section 643(2).

(6) The preceding provisions of this section do not have effect in relation to—

  1. (a) claims made in respect of tax credits to which entitlement arises by virtue of section 232(3); or
    2. 734
  2. (b) claims made by virtue of arrangements having effect under section 788."

(3) This Resolution has effect in relation to qualifying distributions made on or after 2nd July 1997.

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 332, Noes 199.

Division No. 46] [10.57 pm
AYES
Abbott, Ms Diane Connarty, Michael
Adams, Mrs Irene (Paisley N) Cooper, Yvette
Ainger, Nick Corbett, Robin
Ainsworth, Robert (Cov'try NE) Corbyn, Jeremy
Allen, Graham (Nottingham N) Corston, Ms Jean
Anderson, Janet (Rossendale) Cousins, Jim
Armstrong, Ms Hilary Cranston, Ross
Ashton, Joe Crausby, David
Atherton, Ms Candy Cryer, Mrs Ann (Keighley)
Atkins, Charlotte Cryer, John (Hornchurch)
Austin, John Cummings, John
Banks, Tony Cunliffe, Lawrence
Barnes, Harry Cunningham, Jim (Cov'try S)
Barron, Kevin Cunningham, Rt Hon Dr John (Copeland)
Bayley, Hugh
Beard, Nigel Curtis-Thomas, Mrs Claire
Beckett, Rt Hon Mrs Margaret Dalyell, Tam
Begg, Miss Anne (Aberd'n S) Darling, Rt Hon Alistair
Bennett, Andrew F Darvil, Keith
Bermingham, Gerald Davey, Valerie (Bristol W)
Berry, Roger Davidson, Ian
Best, Harold Davies, Rt Hon Denzil (Llanelli)
Betts, Clive Davies, Geraint (Croydon C)
Blackman, Liz Dawson, Hilton
Blears, Ms Hazel Dean, Mrs Janet
Blizzard, Bob Denham, John
Borrow, David Dismore, Andrew
Bradley, Keith (Withington) Dobson, Rt Hon Frank
Bradley, Peter (The Wrekin) Donohoe, Brian H
Bradshaw, Ben Doran, Frank
Brinton, Mrs Helen Drew, David
Brown, Rt Hon Gordon (Dunfermline E) Drown, Ms Julia
Dunwoody, Mrs Gwyneth
Brown, Rt Hon Nick (Newcastle E) Eagle, Angela (Wallasey)
Brown, Russell (Dumfries) Edwards, Huw
Browne, Desmond (Kilmarnock) Efford, Clive
Burden, Richard Ellman, Ms Louise
Burgon, Colin Ennis, Jeff
Butler, Christine Etherington, Bill
Byers, Stephen Fatchett, Derek
Caborn, Richard Field, Rt Hon Frank
Campbell, Alan (Tynemouth) Fisher, Mark
Campbell, Mrs Anne (C'bridge) Fitzpatrick, Jim
Campbell, Ronnie (Blyth V) Flint, Caroline
Campbell-Savours, Dale Flynn, Paul
Cann, Jamie Follett, Barbara
Caplin, Ivor Foster, Rt Hon Derek
Casale, Roger Foster, Michael John (Worcester)
Cawsey, Ian Foulkes, George
Chapman, Ben (Wirral S) Fyfe, Maria
Clapham, Michael Galloway, George
Clark, Rt Hon Dr David (S Shields) Gardiner, Barry
Clark, Dr Lynda (Edinburgh Pentlands) Gerrard, Neil
Gibson, Dr Ian
Clark, Paul (Gillingham) Godman, Dr Norman A
Clarke, Charles (Norwich S) Godsiff, Roger
Clarke, Eric (Midlothian) Goggins, Paul
Clarke, Rt Hon Tom (Coatbridge) Golding, Mrs Llin
Clarke, Tony (Northampton S) Gordon, Mrs Eileen
Clelland, David Grant, Bernie
Coaker, Vernon Griffiths, Jane (Reading E)
Coffey, Ms Ann Grocott, Bruce
Colman, Tony (Putney) Grogan, John
Gunnell, John Mahon, Mrs Alice
Hall, Mike (Weaver Vale) Mallaber, Judy
Hall, Patrick (Bedford) Marek, Dr John
Hanson, David Marsden, Paul (Shrewsbury)
Harman, Rt Hon Ms Harriet Marshall, David (Shettleston)
Heal, Mrs Sylvia Marshall, Jim (Leicester S)
Healey, John Marshall-Andrews, Robert
Henderson, Doug (Newcastle N) Martlew, Eric
Henderson, Ivan (Harwich) Maxton, John
Hepburn, Stephen Meacher, Rt Hon Michael
Heppell, John Meale, Alan
Hesford, Stephen Merron, Gillian
Hewitt, Ms Patricia Michael, Alun
Hill, Keith Michie, Bill (Shef'ld Heeley)
Hodge, Ms Margaret Milburn, Alan
Home Robertson, John Mitchell, Austin
Hood, Jimmy Moffatt, Laura
Hoon, Geoffrey Morgan, Ms Julie (Cardiff N)
Hope, Phil Morgan, Rhodri (Cardiff W)
Hopkins, Kelvin Morris, Ms Estelle (B'ham Yardley)
Howarth, Alan (Newport E) Morris, Rt Hon John (Aberavon)
Howarth, George (Knowsley N) Mountford, Kali
Howells, Dr Kim Mudie, George
Hoyle, Lindsay Mullin, Chris
Hughes, Ms Boverley (Stretford) Murphy, Denis (Wansbeck)
Humble, Mrs Joan Murphy, Jim (Eastwood)
Hurst, Alan Naysmith, Dr Doug
Hutton, John Norris, Dan
Iddon, Dr Brian O'Brien, Bill (Normanton)
Illsley, Eric O'Brien, Mike (N Warks)
Jackson, Ms Glenda (Hampstead) O'Hara, Edward
Jackson, Helen (Hillsborough) Olner, Bill
Jamieson, David O'Neill, Martin
Jenkins, Brian (Tamworth) Organ, Mrs Diana
Johnson, Miss Melanie (Welwyn Hatfield) Osborne, Mrs Sandra
Pearson, Ian
Jones, Ms Fiona (Newark) Pendry, Tom
Jones, Jon Owen (Cardiff C) Pickthall, Colin
Jones, Dr Lynne (Selly Oak) Pike, Peter L
Jones, Martyn (Clwyd S) Plaskitt, James
Jowell, Ms Tessa Pollard, Kerry
Keen, Alan (Feltham & Heston) Pond, Chris
Keen, Mrs Ann (Brentford) Pope, Greg
Kemp, Fraser Pound, Stephen
Kennedy, Jane (Wavertree) Prentice, Ms Bridget (Lewisham E)
Khabra, Piara S Prentice, Gordon (Pendle)
Kidney, David Prescott, Rt Hon John
Kilfoyle, Peter Primarolo, Dawn
King, Andy (Rugby & Kenilworth) Prosser, Gwyn
King, Ms Oona (Bethnal Green) Purchase, Ken
Kumar, Dr Ashok Quin, Ms Joyce
Ladyman, Dr Stephen Radice, Giles
Lawrence, Ms Jackie Rammell, Bill
Laxton, Bob Rapson, Syd
Lepper, David Raynsford, Nick
Levitt, Tom Reld, Dr John (Hamilton N)
Lewis, Ivan (Bury S) Robinson, Geoffrey (Cov'try NW)
Lewis, Terry (Worsley) Roche, Mrs Barbara
Liddell, Mrs Helen Rogers, Allan
Linton, Martin Rooney, Terry
Livingstone, Ken Ross, Ernie (Dundee W)
Lloyd, Tony (Manchester C) Rowlands, Ted
Love, Andrew Roy, Frank
McAvoy, Thomas Ruane, Chris
McCabe, Stephen Ruddock, Ms Joan
McCafferty, Ms Chris Ryan, Ms Joan
McCartney, Ian (Makerfield) Salter, Martin
McDonagh, Siobhain Savidge, Malcolm
McDonnell, John Sawford, Phil
McFall, John Sedgemore, Brian
McGuire, Mrs Anne Sheerman, Barry
McKenna, Ms Rosemary Sheldon, Rt Hon Robert
McNulty, Tony Shipley, Ms Debra
Mactaggart, Fiona Simpson, Alan (Nottingham S)
McWalter, Tony Singh, Marsha
McWilliam, John Skinner, Dennis
Smith, Rt Hon Andrew (Oxford E) Todd, Mark
Smith, Angela (Basildon) Touhig, Don
Smith, Rt Hon Chris (Islington S) Trickett, Jon
Smith, Miss Geraldine (Morecambe & Lunesdale) Turner, Dennis (Wolverh'ton SE)
Turner, Dr George (NW Norfolk)
Smith, Jacqui (Redditch) Twigg, Derek (Halton)
Smith, John (Glamorgan) Twigg, Stephen (Enfield)
Smith, Llew (Blaenau Gwent) Vaz, Keith
Snape, Peter Vis, Dr Rudi
Soley, Clive Walley, Ms Joan
Southworth, Ms Helen Watts, David
Spellar, John White, Brian
Squire, Ms Rachel Whitehead, Dr Alan
Starkey, Dr Phyllis Wicks, Malcolm
Steinberg, Gerry Williams, Rt Hon Alan (Swansea W)
Stevenson, George
Stewart, David (Inverness E) Williams, Alan W (E Carmarthen)
Stewart, Ian (Eccles) Williams, Mrs Betty (Conwy)
Stinchcombe, Paul Wills, Michael
Stoate, Dr Howard Winnick, David
Stott, Roger Winterton, Ms Rosie (Doncaster C)
Strang, Rt Hon Dr Gavin Wood, Mike
Straw, Rt Hon Jack Woolas, Phil
Stringer, Graham Worthington, Tony
Stuart, Ms Gisela (Edgbaston) Wray, James
Sutcliffe, Gerry Wright, Dr Tony (Cannock)
Taylor, Rt Hon Mrs Ann (Dewsbury) Wright, Tony D (Gt Yarmouth)
Wyatt, Derek
Taylor, David (NW Leics)
Thomas, Gareth R (Harrow W) Tellers for the Ayes:
Timms, Stephen Mr. Jim Dowd and
Tipping, Paddy Mr. Kevin Hughes.
NOES
Ainsworth, Peter (E Surrey) Clifton-Brown, Geoffrey
Allan, Richard (Shef'ld Hallam) Collins, Tim
Amess, David Colvin, Michael
Ancram, Rt Hon Michael Cormack, Sir Patrick
Arbuthnot, James Cotter, Brian
Ashdown, Rt Hon Paddy Cran, James
Atkinson, David (Bour'mth E) Curry, Rt Hon David
Atkinson, Peter (Hexham) Dafis, Cynog
Baker, Norman Davey, Edward (Kingston)
Baldry, Tony Davis, Rt Hon David (Haltemprice)
Ballard, Mrs Jackie Davies, Quentin (Grantham)
Beith, Rt Hon A J Dorrell, Rt Hon Stephen
Bercow, John Duncan, Alan
Beresford, Sir Paul Duncan Smith, Iain
Blunt, Crispin Evans, Nigel
Body, Sir Richard Ewing, Mrs Margaret
Boswell, Tim Faber, David
Bottomley, Peter (Worthing W) Fabricant, Michael
Bottomley, Rt Hon Mrs Virginia Fallon, Michael
Brady, Graham Feam, Ronnie
Brake, Thomas Flight, Howard
Brand, Dr Peter Forth, Rt Hon Eric
Brazier, Julian Foster, Don (Bath)
Breed, Colin Fowler, Rt Hon Sir Norman
Brooke, Rt Hon Peter Fox, Dr Liam
Browning, Mrs Angela Fraser, Christopher
Bruce, Ian (S Dorset) Gale, Roger
Bruce, Malcolm (Gordon) Garnier, Edward
Burnett, John George, Andrew (St Ives)
Burns, Simon Gibb, Nick
Burstow, Paul Gill, Christopher
Butterfill, John Gillan, Mrs Cheryl
Cable, Dr Vincent Goodlad, Rt Hon Alastair
Campbell, Menzies (NE Fife) Gorman, Mrs Teresa
Cash, William Gorrie, Donald
Chapman, Sir Sydney (Chipping Barnet) Gray, James
Green, Damian
Chidgey, David Greenway, John
Chope, Christopher Grieve, Dominic
Clappison, James Gummer, Rt Hon John
Clarke, Rt Hon Kenneth (Rushcliffe) Hague, Rt Hon William
Hamilton, Rt Hon Sir Archie
Hammond, Philip Prior, David
Hancock, Mike Redwood, Rt Hon John
Harris, Dr Evan Rendel, David
Harvey, Nick Robathan, Andrew
Hawkins, Nick Robertson, Laurence (Tewk'b'ry)
Hayes, John Roe, Mrs Marion (Broxboume)
Heath, Rt Hon Sir Edward Rowe, Andrew (Faversham)
Heathcoat-Amory, Rt Hon David Ruffley, David
Horam, John Russell, Bob (Colchester)
Howard, Rt Hon Michael St Aubyn, Nick
Howarth, Gerald (Aldershot) Salmond, Alex
Hughes, Simon (Southwark N) Sanders, Adrian
Hunter, Andrew Sayeed, Jonathan
Jack, Rt Hon Michael Shephard, Rt Hon Mrs Gillian
Jackson, Robert (Wantage) Shepherd, Richard (Aldridge)
Jenkin, Bernard (N Essex) Simpson, Keith (Mid-Norfolk)
Jones, Ieuan Wyn (Ynys Môn) Smith, Sir Robert (W Ab'd'ns)
Jones, Nigel (Cheltenham) Soames, Nicholas
Keetch, Paul Spelman, Mrs Caroline
Kennedy, Charles (Ross Skye) Spicer, Sir Michael
Key, Robert Spring, Richard
King, Rt Hon Tom (Bridgwater) Stanley, Rt Hon Sir John
Kirkbride, Miss Julie Steen, Anthony
Kirkwood, Archy Streeter, Gary
Laing, Mrs Eleanor Stunell, Andrew
Lansley, Andrew Swayne, Desmond
Leigh, Edward Swinney, John
Letwin, Oliver Syms, Robert
Lewis, Dr Julian (New Forest E) Tapsell, Sir Peter
Lidington, David Taylor, Ian (Esher & Walton)
Lilley, Rt Hon Peter Taylor, John M (Solihull)
Livsey, Richard Taylor, Matthew (Truro)
Lloyd, Rt Hon Sir Peter (Fareham) Temple-Morris, Peter
Llwyd, Elfyn Townend, John
Loughton, Tim Tredinnick, David
Luff, Peter Trend, Michael
Lyell, Rt Hon Sir Nicholas Tyler, Paul
MacGregor, Rt Hon John Tyrie, Andrew
McIntosh, Miss Anne Viggers, Peter
MacKay, Andrew Wallace, James
Maclean, Rt Hon David Walter, Robert
McLoughlin, Patrick Wardle, Charles
Madel, Sir David Waterson, Nigel
Malins, Humfrey Webb, Professor Steve
Maples, John Wells, Bowen
Maude, Rt Hon Francis Welsh, Andrew
Mawhinney, Rt Hon Dr Brian Whitney, Sir Raymond
May, Mrs Theresa Widdecombe, Rt Hon Miss Ann
Merchant, Piers Wigley, Dafydd
Michie, Mrs Ray (Argyll & Bute) Willetts, David
Moore, Michael Willis, Phil
Moss, Malcolm Wilshire, David
Nicholls, Patrick Winterton, Mrs Ann (Congleton)
Norman, Archie Winterton, Nicholas (Macclesfield)
Oaten, Mark Woodward, Shaun
Öpik, Lembit Yeo, Tim
Ottaway, Richard Young, Rt Hon Sir George
Page, Richard
Paice, James Tellers for the Noes:
Paterson, Owen Mr. Oliver Heald and
Pickles, Eric Mr. John Whittingdale.

Question accordingly agreed to.