I move Financial Resolution No. 7:
(1) THAT section 203 of the Finance Act, 1992 (No. 9 of 1992), be amended by the addition of the following subsection after subsection (9):
"(10) Where a promoter changes its accounting period and, as a result, stamp duty under this section would not be chargeable or payable in the year 1993 or in any subsequent year (in this section referred to as ‘the relevant year'), then the following provisions shall apply:
(a) duty shall be chargeable and payable in the relevant year as if the accounting period had not been changed,
(b) duty shall also be chargeable and payable within one month of the date of the end of the accounting period ending in the relevant year, and
(c) the duty chargeable and payable by virtue of paragraph (b) shall, subject to the proviso contained in subsection (2), be chargeable and payable in respect of cash cards issued at any time by the promoter and which are valid at any time during the period from the due date as determined by paragraph (a) to the due date as determined by paragraph (b).”.
(2) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).
This resolution provides for an increase in the levy charged on premiums in respect of certain classes of non-life insurance. The levy is at present 1 per cent of premiums received and it is proposed to increase this to 2 per cent. The increase will apply to premiums received on and from 25 February 1993. The yield is expected to be £9 million in 1993 and £11 million in a full year. This measure will not mean a cost increase for policyholders relative to the position in 1992 as the special 1 per cent levy in respect of the insurance compensation fund terminated on 31 December.
This resolution is essentially a technical amendment to section 203 of the Finance Act, 1992, which provides for a stamp duty of £2 on certain ATM cash cards. The duty is charged in respect of the accounting period of the bank or building society as the case may be, and is payable within one month of the end of that period. This arrangement was set up to facilitate banks and building societies in the administration of the tax following discussions with them. As enacted section 203 did not provide for a situation where as a result of a change in the accounting period of a bank or building society the duty could be avoided in a particular year. This has now occurred with one of the major banks. The effect of this resolution is to ensure that the cash card levy will be payable by customers of all banks and all building societies in 1993.