§ Motion made, and Question put,
§ That—
§
(1) The following shall be substituted for section 1(2)(aa) of the Income and Corporation Taxes Act 1988—
(aa) in respect of so much of an individual's total income as does not exceed £1,500, at such rate as Parliament may determine to be the starting rate for that year;".
§
(2) The following shall be substituted for section 1(2A) of that Act—
(2A) The amount up to which an individual's income is by virtue of subsection (2) above chargeable for any year at the starting rate shall be known as the starting rate limit.
§ (3) In section 1(3) of that Act, for "lower rate" there shall be substituted "starting rate".
§ (4) Section 1(4) of that Act, so far as it relates to section 1(2)(aa), shall not apply for the year 1999–00.
§ (5) In section I (6A) of that Act, for "lower rate" there shall be substituted "starting rate".
§
(6) The following shall be inserted before section 1A(2) of that Act—
(1B) In relation to any year of assessment for which income tax is charged the lower rate is 20 per cent. or such other rate as Parliament may determine.
§
(7) The following shall be inserted after section 1A(6) of that Act—
(6A) Where income tax at the basic rate has been borne on income chargeable at the lower rate any necessary repayment of tax shall be made on the making of a claim.
§ (8) In sections 547(5)(c) and 550(3) of that Act, for "lower rate" there shall be substituted "starting rate".
§ (9) In sections 549(2), 699(2) and 819(2) of that Act, for "at the lower rate by virtue of section 1(2)(aa)" there shall be substituted "at the starting rate".
827§ (10) In section 832(1) of that Act—
§
(a) the following shall be substituted for the definition of "lower rate"—
lower rate', in relation to the charging of income tax for any year of assessment, means the rate of income tax specified in or determined in pursuance of section 1A(1B);", and
§
(b) the following shall be inserted after the definition of "Schedule A business"—
`starting rate', in relation to the charging of income tax for any year of assessment, means the rate of income tax determined in pursuance of section 1(2)(aa), and any reference to the starting rate limit shall be construed in accordance with section 1 (2A);".
§ (11) In section 7(6) of the Taxes Management Act 1970, for "or the lower rate" there shall be substituted ", the lower rate or the starting rate".
§ (12) In section 91(3)(c) of that Act, for "or the lower rate" there shall be substituted ", the lower rate or the starting rate".
§ (13) The preceding paragraphs apply for the year 1999–00 and subsequent years of assessment.
§ (14) 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.
§ The House divided: Ayes 334, Noes 40.
830| Division No. 99] | [10.43 pm |
| AYES | |
| Abbott, Ms Diane | Campbell, Mrs Anne (C'bridge) |
| Adams, Mrs Irene (Paisley N) | Campbell, Ronnie (Blyth V) |
| Ainsworth, Robert (Cov'try NE) | Canavan, Dennis |
| Alexander, Douglas | Caplin, Ivor |
| Allen, Graham | Casale, Roger |
| Anderson, Janet (Rossendale) | Caton, Martin |
| Armstrong, Ms Hilary | Cawsey, Ian |
| Atherton, Ms Candy | Chapman, Ben (Wirral S) |
| Atkins, Charlotte | Chaytor, David |
| Austin, John | Chisholm, Malcolm |
| Banks, Tony | Clapham, Michael |
| Barnes, Harry | Clark, Rt Hon Dr David (S Shields) |
| Barron, Kevin | Clark, Dr Lynda (Edinburgh Pentlands) |
| Bayley, Hugh | |
| Beard, Nigel | Clarke, Charles (Norwich S) |
| Beckett, Rt Hon Mrs Margaret | Clarke, Rt Hon Tom (Coatbridge) |
| Begg, Miss Anne | Clarke, Tony (Northampton S) |
| Bell, Stuart (Middlesbrough) | Clelland, David |
| Benton, Joe | Clwyd, Ann |
| Bermingham, Gerald | Coaker, Vernon |
| Best, Harold | Coffey, Ms Ann |
| Blears, Ms Hazel | Coleman, lain |
| Blizzard, Bob | Connarty, Michael |
| Blunkett, Rt Hon David | Cook, Frank (Stockton N) |
| Boateng, Paul | Cook, Rt Hon Robin (Livingston) |
| Borrow, David | Cooper, Yvette |
| Bradley, Keith (Withington) | Corbett, Robin |
| Bradley, Peter (The Wrekin) | Corbyn, Jeremy |
| Bradshaw, Ben | Corston, Ms Jean |
| Brinton, Mrs Helen | Cranston, Ross |
| Brown, Rt Hon Gordon (Dunfermline E) | Crausby, David |
| Cryer, Mrs Ann (Keighley) | |
| Brown, Rt Hon Nick (Newcastle E) | Cryer, John (Hornchurch) |
| Brown, Russell (Dumfries) | Cummings, John |
| Browne, Desmond | Cunningham, Rt Hon Dr Jack (Copeland) |
| Buck, Ms Karen | |
| Burden, Richard | Cunningham, Jim (Cov'try S) |
| Burgon, Colin | Cunningham, Ms Roseanna (Perth) |
| Butler, Mrs Christine | |
| Campbell, Alan (Tynemouth) | Dalyell, Tam |
| Darling, Rt Hon Alistair | Jamieson, David |
| Darvill, Keith | Jenkins, Brian |
| Davidson, Ian | Johnson, Alan (Hull W & Hessle) |
| Davies, Rt Hon Denzil (Llanelli) | Johnson, Miss Melanie (Welwyn Hatfield) |
| Davies, Geraint (Croydon C) | |
| Dawson, Hilton | Jones, Helen (Warrington N) |
| Dean, Mrs Janet | Jones, leuan Wyn (Ynys Môn) |
| Denham, John | Jones, Ms Jenny (Wolverh'ton SW) |
| Dismore, Andrew | |
| Dobbin, Jim | Jones, Jon Owen (Cardiff C) |
| Dobson, Rt Hon Frank | Jones, Dr Lynne (Selly Oak) |
| Donohoe, Brian H | Jones, Martyn (Clwyd S) |
| Doran, Frank | Kaufman, Rt Hon Gerald |
| Dowd, Jim | Keeble, Ms Sally |
| Drew, David | Keen, Alan (Fettham & Heston) |
| Dunwoody, Mrs Gwyneth | Keen, Ann (Brentford & Isleworth) |
| Eagle, Angela (Wallasey) | Kelly, Ms Ruth |
| Eagle, Maria (L'pool Garston) | Kemp, Fraser |
| Efford, Clive | Kennedy, Jane (Wavertree) |
| Ellman, Mrs Louise | Khabra, Piara S |
| Ennis, Jeff | Kidney, David |
| Etherington, Bill | Kilfoyle, Peter |
| Ewing, Mrs Margaret | King, Andy (Rugby & Kenilworth) |
| Field, Rt Hon Frank | King, Ms Oona (Bethnal Green) |
| Fisher, Mark | Kingham, Ms Tess |
| Fitzpatrick, Jim | Kumar, Dr Ashok |
| Fitzsimons, Lorna | Ladyman, Dr Stephen |
| Flint, Caroline | Laxton, Bob |
| Follett, Barbara | Leslie, Christopher |
| Foster, Rt Hon Derek | Levitt, Tom |
| Foster, Michael Jabez (Hastings) | Lewis, Terry (Worsley) |
| Foster, Michael J (Worcester) | Linton, Martin |
| Galbraith, Sam | Livingstone, Ken |
| Galloway, George | Lloyd, Tony (Manchester C) |
| Gerrard, Neil | Llwyd, Elfyn |
| Gibson, Dr Ian | Lock, David |
| Gilroy, Mrs Linda | Love, Andrew |
| Godman, Dr Norman A | McAllion, John |
| Godsiff, Roger | McAvoy, Thomas |
| Goggins, Paul | McCabe, Steve |
| Golding, Mrs Llin | McCafferty, Ms Chris |
| Griffiths, Jane (Reading E) | McDonagh, Siobhain |
| Griffiths, Nigel (Edinburgh S) | Macdonald, Calum |
| Griffiths, Win (Bridgend) | McDonnell, John |
| Grocott, Bruce | McGuire, Mrs Anne |
| Grogan, John | Mclsaac, Shona |
| Hall, Patrick (Bedford) | McKenna, Mrs Rosemary |
| Hanson, David | Mackinlay, Andrew |
| Harman, Rt Hon Ms Harriet | McNulty, Tony |
| Heal, Mrs Sylvia | Mactaggart, Fiona |
| Henderson, Ivan (Harwich) | McWalter, Tony |
| Hepburn, Stephen | Mahon, Mrs Alice |
| Heppell, John | Mallaber, Judy |
| Hesford, Stephen | Mandelson, Rt Hon Peter |
| Hewitt, Ms Patricia | Marek, Dr John |
| Hill, Keith | Marsden, Gordon (Blackpool S) |
| Hinchliffe, David | Marsden, Paul (Shrewsbury) |
| Hodge, Ms Margaret | Marshall, David (Shettleston) |
| Hoey, Kate | Marshall-Andrews, Robert |
| Home Robertson, John | Martlew, Eric |
| Hoon, Geoffrey | Maxton, John |
| Hope, Phil | Meacher, Rt Hon Michael |
| Hopkins, Kelvin | Michie, Bill (Shef'ld Heeley) |
| Howarth, Alan (Newport E) | Milburn, Rt Hon Alan |
| Howarth, George (Knowsley N) | Miller, Andrew |
| Howells, Dr Kim | Mitchell, Austin |
| Hoyle, Lindsay | Moonie, Dr Lewis |
| Hughes, Ms Beverley (Stretford) | Moran, Ms Margaret |
| Hughes, Kevin (Doncaster N) | Morgan, Alasdair (Galloway) |
| Humble, Mrs Joan | Morgan, Ms Julie (Cardiff N) |
| Hurst, Alan | Morgan, Rhodri (Cardiff W) |
| Hutton, John | Morley, Elliot |
| Iddon, Dr Brian | Morris, Ms Estelle (B'ham Yardley) |
| Illsley, Eric | Morris, Rt Hon John (Aberavon) |
| Jackson, Ms Glenda (Hampstead) | Mountford, Kali |
| Jackson, Helen (Hillsborough) | Mudie, George |
| Mullin, Chris | Smith, Jacqui (Redditch) |
| Murphy, Denis (Wansbeck) | Smith, John (Glamorgan) |
| Naysmith, Dr Doug | Smith, Llew (Blaenau Gwent) |
| O'Brien, Bill (Normanton) | Snape, Peter |
| O'Brien, Mike (N Warks) | Soley, Clive |
| O'Hara, Eddie | Southworth, Ms Helen |
| Olner, Bill | Spellar, John |
| O'Neill, Martin | Squire, Ms Rachel |
| Organ, Mrs Diana | Starkey, Dr Phyllis |
| Osborne, Ms Sandra | Stevenson, George |
| Palmer, Dr Nick | Stewart, David (Inverness E) |
| Pearson, Ian | Stewart, Ian (Eccles) |
| Pickthall, Colin | Stinchcombe, Paul |
| Pike, Peter L | Stoate, Dr Howard |
| Plaskitt, James | Strang, Rt Hon Dr Gavin |
| Pollard, Kerry | Straw, Rt Hon Jack |
| Pond, Chris | Stringer, Graham |
| Pope, Greg | Stuart, Ms Gisela |
| Powell, Sir Raymond | Sutcliffe, Gerry |
| Prentice, Ms Bridget (Lewisham E) | Swinney, John |
| Prentice, Gordon (Pendle) | Taylor, Rt Hon Mrs Ann (NW Leics) |
| Primarolo, Dawn | |
| Purchase, Ken | Taylor, David (NW Leics) |
| Quin, Rt Hon Ms Joyce | Temple-Morris, Peter |
| Quinn, Lawrie | Thomas, Gareth (Clwyd W) |
| Radice, Giles | Thomas, Gareth R (Harrow W) |
| Rammell, Bill | Timms, Stephen |
| Rapson, Syd | Tipping, Paddy |
| Raynsford, Nick | Todd, Mark |
| Reid, Rt Hon Dr John (Hamilton N) | Touhig, Don |
| Robertson, Rt Hon George (Hamilton S) | Trickett, Jon |
| Truswell, Paul | |
| Robinson, Geoffrey (Cov'try NW) | Turner, Dr Desmond (Kemptown) |
| Roche, Mrs Barbara | Turner, Dr George (NW Norfolk) |
| Rooker, Jeff | Twigg, Derek (Halton) |
| Rooney, Terry | Twigg, Stephen (Enfield) |
| Ross, Ernie (Dundee W) | Vaz, Keith |
| Rowlands, Ted | Walley, Ms Joan |
| Roy, Frank | Ward, Ms Claire |
| Ruane, Chris | Wareing, Robert N |
| Ruddock, Joan | Watts, David |
| Russell, Ms Christine (Chester) | Welsh, Andrew |
| Ryan, Ms Joan | White, Brian |
| Salmond, Alex | Whitehead, Dr Alan |
| Salter, Martin | Wicks, Malcolm |
| Savidge, Malcolm | Wigley, Rt Hon Dafydd |
| Sawford, Phil | Williams, Alan W (E Carmarthen) |
| Sedgemore, Brian | Winnick, David |
| Sheerman, Barry | Winterton, Ms Rosie (Doncaster C) |
| Sheldon, Rt Hon Robert | Wise, Audrey |
| Shipley, Ms Debra | Woolas, Phil |
| Short, Rt Hon Clare | Worthington, Tony |
| Simpson, Alan (Nottingham S) | Wright, Anthony D (Gt Yarmouth) |
| Singh, Marsha | |
| Skinner, Dennis | Tellers for the Ayes: |
| Smith, Rt Hon Andrew (Oxford E) | Mr. Mike Hall and |
| Smith, Angela (Basildon) | Mr. Clive Betts. |
| NOES | |
| Allan, Richard | Harris, Dr Evan |
| Ashdown, Rt Hon Paddy | Harvey, Nick |
| Baker, Norman | Heath, David (Somerton & Frome) |
| Ballard, Jackie | Hughes, Simon (Southwark N) |
| Brake, Tom | Jones, Nigel (Cheltenham) |
| Brand, Dr Peter | Keetch, Paul |
| Breed, Colin | Kennedy, Charles (Ross Skye) |
| Bruce, Malcolm (Gordon) | Kirkwood, Archy |
| Burstow, Paul | Livsey, Richard |
| Cable, Dr Vincent | Maclennan, Rt Hon Robert |
| Campbell, Menzies (NE Fife) | Michie, Mrs Ray (Argyll & Bute) |
| Chidgey, David | Moore, Michael |
| Cotter, Brian | Oaten, Mark |
| Fearn, Ronnie | Öpik, Lembit |
| Foster, Don (Bath) | Rendel, David |
| George, Andrew (St Ives) | Russell, Bob (Colchester) |
| Gorrie, Donald | Smith, Sir Robert (W Ab'd'ns) |
| Taylor, Matthew (Truro) | Willis, Phil |
| Tonge, Dr Jenny | |
| Tyler, Paul | Tellers for the Noes: |
| Wallace, James | Mr. Edward Davey and |
| Webb, Steve | Mr. Adrian Sanders. |
§ Question accordingly agreed to.