Provisional Collection of Taxes Act 1968 section 5

House of Commons resolution giving provisional effect to motions affecting taxation

Section 5 provides a mechanism allowing the House of Commons to give provisional (temporary) legal effect to tax motions before they are formally debated and agreed, subject to confirmation within a strict time limit.

• The House of Commons may resolve that provisional statutory effect be given to one or more tax motions to be moved by the Chancellor or another Minister, provided those motions, if agreed, would qualify under section 1 or section 3 of the Act.
• Once such a resolution is passed, the relevant tax motions are treated as though they have already been agreed by the House, and the main provisions of the Act (sections 1 to 3) and section 822 of the Income and Corporation Taxes Act 1988 (concerning over-deductions from preference dividends) apply accordingly.
• If a motion is not confirmed by a further House of Commons resolution (a "confirmatory resolution") within the next ten sitting days, the provisional effect ceases, and all necessary adjustments must be made — including repayments of tax and release of securities — to restore the position as if the provisional effect had never applied.
• Where a confirmatory resolution is passed within the ten-sitting-day window, it is treated as having taken effect from the date of the original provisional resolution; however, if the confirmed proposals differ from the original motion, appropriate adjustments must be made, such as further assessments, repayments, or changes to security terms.

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