Provisional Collection of Taxes Act 1968 section 1

Temporary statutory effect of House of Commons resolutions affecting income tax, purchase tax or customs or excise duties

Section 1 establishes how House of Commons resolutions on tax changes can be given temporary legal force before the Finance Act is passed, and sets out the taxes covered, the time limits, and what happens if the resolution lapses.

• The section applies to a wide range of taxes including income tax, capital gains tax, corporation tax, VAT, stamp duty land tax, customs and excise duties, and many others such as the bank levy, digital services tax, plastic packaging tax, and multinational top-up tax.
• A House of Commons resolution that renews, varies, or abolishes a tax can have temporary force of law for up to seven months, provided it includes a declaration that this is expedient in the public interest.
• The resolution loses its temporary legal effect if a relevant Bill is not progressed within 30 sitting days, if Parliament is dissolved or prorogued (subject to carry-over provisions), or if the relevant provisions are rejected during the Bill's passage.
• If the resolution lapses before an Act is passed, any tax paid under it must be repaid, and any deductions made are treated as unauthorised; similarly, if the final Act differs from the resolution, overpaid amounts must be refunded.