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Consideration of Bill: 4 July 2011                     

2524

 

Finance (No. 3) Bill, continued

 
 

Ian Swales

 

Tim Farron

 

21

 

Page  45,  line  5  [Clause  78],  at end insert—

 


 

‘The Schedule shall come into force on a date specified by the Treasury by an order made

 

by Statutory Instrument, which may not be made until an agreed packaged of mitigation

 

measures for energy-intensive industries has been laid before the House of Commons and

 

approved by a resolution of the House of Commons. The dates specified in paragraphs

 

8(3) and 9(5) of the Schedule shall be replaced by the date specified in the order under this

 

section if it is later.’.

 


 

Mr Chancellor of the Exchequer

 

1

 

Page  48,  line  16  [Clause  87],  leave out subsection (4).

 


 

Mr Chancellor of the Exchequer

 

22

 

Page  166  [Schedule  7],  leave out line 18 and insert ‘day specified in the election as the

 

day on which it takes effect (which must be later than the day on which the election is

 

made).’.

 

Mr Chancellor of the Exchequer

 

23

 

Page  166,  line  21  [Schedule  7],  leave out subsection (3) and insert—

 

‘(2A)    

An election under section 9A(2)(a) may be revoked by notice of the revocation

 

being given to an officer of Revenue and Customs before the election takes effect.

 

(3)    

Subject to that, an election has effect until immediately before—

 

(a)    

the day on which another election by X takes effect, or

 

(b)    

the day on which a revocation event occurs,

 

    

(whichever first occurs).’.

 

Mr Chancellor of the Exchequer

 

24

 

Page  166,  line  41  [Schedule  7],  at end insert—

 

‘(5A)    

Subsections (5B) and (5C) apply if a period of account of X (“the straddling

 

period of account”) begins before, and ends on or after, the day on which—

 

(a)    

an election under section 9A(2)(a) takes effect, or

 

(b)    

a revocation event occurs.

 

(5B)    

It is to be assumed, for the purposes of this Chapter, that the straddling period of

 

account consists of two separate periods of account—

 

(a)    

the first beginning with the straddling period of account and ending

 

immediately before that day, and

 

(b)    

the second beginning with that day and ending with the straddling period

 

of account,


 
 

Consideration of Bill: 4 July 2011                     

2525

 

Finance (No. 3) Bill, continued

 
 

    

and X’s profits and losses are to be computed accordingly for the purposes of

 

corporation tax.

 

(5C)    

For those purposes, it is to be assumed—

 

(a)    

that X prepares its accounts for each of the two periods in the same

 

currency, and otherwise on the same basis, as it prepares its accounts for

 

the straddling period of account, and

 

(b)    

that if the accounts for the straddling period of account, in accordance

 

with generally accepted accounting practice, identify a currency as X’s

 

functional currency, the accounts for each of the two periods do

 

likewise.’.

 


 

Mr Chancellor of the Exchequer

 

25

 

Page  167,  line  28  [Schedule  7],  leave out from ‘but’ to end of line 37 and insert ‘for

 

a change in the company’s functional currency (within the meaning of section 17(4) of

 

that Act) as between—

 

(a)    

the period of account of the company in which the gain or loss arises, and

 

(b)    

a period of account of the company ending in the 12 months immediately

 

preceding that period.”’.

 

Mr Chancellor of the Exchequer

 

26

 

Page  167,  line  44  [Schedule  7],  leave out from ‘but’ to end of line 9 on page 168

 

and insert ‘for a change in the company’s functional currency (within the meaning of

 

section 17(4) of that Act) as between—

 

(a)    

the period of account of the company in which the gain or loss arises, and

 

(b)    

a period of account of the company ending in the 12 months immediately

 

preceding that period.”’.

 


 

Mr Chancellor of the Exchequer

 

27

 

Page  168,  line  14  [Schedule  7],  at end insert—

 

      ‘()  

Where an election made by a company before 27 June 2011 does not specify

 

the day on which it takes effect, the election is to be treated as if it specified

 

the first day of the first period of account of the company beginning after the

 

election was made.’.

 


 

Mr Chancellor of the Exchequer

 

28

 

Page  209,  line  39  [Schedule  13],  leave out from ‘company’ to end of line 40 and

 

insert ‘beginning on or after the relevant day.


 
 

Consideration of Bill: 4 July 2011                     

2526

 

Finance (No. 3) Bill, continued

 
 

(1A)    

“The relevant day” is the day on which, at the time of the election, the

 

accounting period following that in which the election is made is

 

expected to begin.

 

(1B)    

Subsection (1C) applies if an accounting period of the company (“the

 

straddling period”) begins before, and ends on or after, the relevant

 

day.

 

(1C)    

It is to be assumed, for the purposes of the Corporation Tax Acts, that

 

the straddling period consists of two separate accounting periods—

 

(a)    

the first beginning with the straddling period and ending

 

immediately before the relevant day, and

 

(b)    

the second beginning with that day and ending with the

 

straddling period.

 

(1D)    

Where for those purposes it is necessary to apportion the profits and

 

losses for the straddling period to different parts of the period, that

 

apportionment is to be made on a just and reasonable basis.’.

 

Mr Chancellor of the Exchequer

 

29

 

Page  209,  line  41  [Schedule  13],  leave out from ‘before’ to end of line 42 and insert

 

‘the relevant day.’.

 


 

Ed Balls

 

Ms Angela Eagle

 

Mr David Hanson

 

Chris Leslie

 

Kerry McCarthy

 

11

 

Page  226,  line  13  [Schedule  13],  leave out ‘on the day on which this Act is passed’

 

and insert ‘when a full impact assessment on developing countries’ tax revenue has been

 

laid before and approved by resolution of the House of Commons.’.

 


 

Mr Chancellor of the Exchequer

 

32

 

Page  315,  line  34  [Schedule  19],  leave out paragraph (b) and insert—

 

‘(b)    

M, or another member of the relevant group, has assets which

 

correspond to liabilities which N, or another entity which is not a

 

member of the group, has to M or (as the case may be) that other

 

member (“N’s liabilities”),’.

 

Mr Chancellor of the Exchequer

 

33

 

Page  315,  line  36  [Schedule  19],  leave out ‘between M and N’.


 
 

Consideration of Bill: 4 July 2011                     

2527

 

Finance (No. 3) Bill, continued

 
 

Mr Chancellor of the Exchequer

 

34

 

Page  315,  line  37  [Schedule  19],  at end insert ‘, and liabilities of other members of

 

the group to N or another entity which is not a member of the group,’.

 


 

Mr Chancellor of the Exchequer

 

35

 

Page  316,  line  1  [Schedule  19],  leave out paragraph (d) and insert—

 

‘(d)    

“the netting event occurs” if the insolvency or bankruptcy of—

 

(i)    

M, or another member of the relevant group which has assets

 

which correspond to a liability covered by the provision

 

mentioned in sub-paragraph (1)(c), or

 

(ii)    

N, or another entity which is not a member of the group and

 

which has such a liability,

 

    

gives rise to the termination of any arrangements under which such a

 

liability arises.’.

 

Mr Chancellor of the Exchequer

 

36

 

Page  316,  line  23  [Schedule  19],  leave out ‘M’s assets’ and insert ‘the assets of M,

 

or of another member of the relevant group,’.

 

Mr Chancellor of the Exchequer

 

37

 

Page  316,  line  24  [Schedule  19],  at end insert—

 

      ‘()  

But if this paragraph applies in relation to more than one member of the

 

relevant group, no part of an asset may be included in the net settlement assets

 

of more than one such member.’.

 


 

Mr Chancellor of the Exchequer

 

38

 

Page  320,  line  11  [Schedule  19],  leave out paragraph (b) and insert—

 

‘(b)    

M, or another entity within sub-paragraph (9), has assets which

 

correspond to liabilities which N, or another entity not within that sub-

 

paragraph, has to M or (as the case may be) to that other entity within

 

that sub-paragraph (“N’s liabilities”),’.

 

Mr Chancellor of the Exchequer

 

39

 

Page  320,  line  13  [Schedule  19],  leave out ‘between M and N’.

 

Mr Chancellor of the Exchequer

 

40

 

Page  320,  line  14  [Schedule  19],  at end insert ‘, and liabilities of other entities

 

within sub-paragraph (9) to N or another entity which is not within that sub-paragraph,’.


 
 

Consideration of Bill: 4 July 2011                     

2528

 

Finance (No. 3) Bill, continued

 
 

Mr Chancellor of the Exchequer

 

41

 

Page  320,  line  35  [Schedule  19],  leave out paragraph (e) and insert—

 

‘(e)    

“the netting event occurs” if the insolvency or bankruptcy of—

 

(i)    

M, or another entity within sub-paragraph (9) which has assets

 

which correspond to a liability covered by the provision

 

mentioned in sub-paragraph (8)(c), or

 

(ii)    

N, or another entity not within sub-paragraph (9) which has

 

such a liability,

 

    

gives rise to the termination of any arrangements under which such a

 

liability arises.’.

 


 

Mr Chancellor of the Exchequer

 

42

 

Page  321,  line  6  [Schedule  19],  leave out ‘M’s assets’ and insert ‘the assets of M,

 

or of another entity within sub-paragraph (9),’.

 

Mr Chancellor of the Exchequer

 

43

 

Page  321,  line  7  [Schedule  19],  at end insert—

 

      ‘()  

But—

 

(a)    

if N’s net settlement liabilities include liabilities of a relevant foreign

 

bank covered by paragraph 17(17), X% (as determined at Step 2 in

 

paragraph 24(1)) of the assets corresponding to the liabilities of the

 

relevant foreign bank are to be disregarded for the purposes of sub-

 

paragraph (14), and

 

(b)    

if sub-paragraph (12) applies in relation to more than one entity within

 

sub-paragraph (9), no part of an asset may be included in the net

 

settlement assets of more than one such entity.’.

 


 

Mr Chancellor of the Exchequer

 

44

 

Page  324,  line  38  [Schedule  19],  leave out paragraph (b) and insert—

 

‘(b)    

M, or another entity within sub-paragraph (9), has assets which

 

correspond to liabilities which N, or another entity not within that sub-

 

paragraph, has to M or, as the case may be, to that other entity within

 

that sub-paragraph (“N’s liabilities”),’.

 

Mr Chancellor of the Exchequer

 

45

 

Page  324,  line  40  [Schedule  19],  leave out ‘between M and N’.


 
 

Consideration of Bill: 4 July 2011                     

2529

 

Finance (No. 3) Bill, continued

 
 

Mr Chancellor of the Exchequer

 

46

 

Page  324,  line  41  [Schedule  19],  at end insert ‘, and liabilities of other entities

 

within sub-paragraph (9) to N or another entity which is not within that sub-paragraph,’.

 


 

Mr Chancellor of the Exchequer

 

47

 

Page  325,  line  15  [Schedule  19],  leave out paragraph (e) and insert—

 

‘(e)    

“the netting event occurs” if the insolvency or bankruptcy of—

 

(i)    

M, or another entity within sub-paragraph (9) which has assets

 

which correspond to a liability covered by the provision

 

mentioned in sub-paragraph (8)(c), or

 

(ii)    

N, or another entity not within sub-paragraph (9) which has

 

such a liability,

 

    

gives rise to the termination of any arrangements under which such a

 

liability arises.’.

 

Mr Chancellor of the Exchequer

 

48

 

Page  325,  line  36  [Schedule  19],  leave out ‘M’s assets’ and insert ‘the assets of M,

 

or of another entity within sub-paragraph (9),’.

 

Mr Chancellor of the Exchequer

 

49

 

Page  325,  line  37  [Schedule  19],  at end insert—

 

      ‘()  

But—

 

(a)    

if N’s net settlement liabilities include liabilities of a relevant foreign

 

bank covered by paragraph 19(17), X% (as determined at Step 2 in

 

paragraph 24(1)) of the assets corresponding to the liabilities of the

 

relevant foreign bank are to be disregarded for the purposes of sub-

 

paragraph (14), and

 

(b)    

if sub-paragraph (12) applies in relation to more than one entity within

 

sub-paragraph (9), no part of an asset may be included in the net

 

settlement assets of more than one such entity.’.

 


 

Mr Chancellor of the Exchequer

 

50

 

Page  336,  line  33  [Schedule  19],  at end insert—

 

‘Netting agreements

 

    (1)  

The Treasury may by order add to, repeal or otherwise amend any of

 

paragraphs 16, 18(8) to (16), 20(8) to (16), 22 and 25.

 

      (2)  

An order under this paragraph may make consequential amendments of this

 

Schedule.

 

      (3)  

An order under this paragraph may have retrospective effect in relation to—

 

(a)    

any chargeable period in which the order is made, or


 
 

Consideration of Bill: 4 July 2011                     

2530

 

Finance (No. 3) Bill, continued

 
 

(b)    

in the case of an order made on or before 31 December 2011, any

 

chargeable period ending on or after 1 January 2011.

 

      (4)  

Orders under this paragraph are to be made by statutory instrument.

 

      (5)  

A statutory instrument containing an order under this paragraph may not be

 

made unless a draft has been laid before, and approved by a resolution of, the

 

House of Commons.’.

 


 

Mr Chancellor of the Exchequer

 

2

 

Page  390,  line  29  [Schedule  25],  leave out ‘other than excluded matters’.

 

Mr Chancellor of the Exchequer

 

3

 

Page  390,  line  31  [Schedule  25],  leave out ‘other than excluded matters’.

 

Mr Chancellor of the Exchequer

 

4

 

Page  390,  line  32  [Schedule  25],  leave out sub-paragraphs (3) and (4).

 


 

Mr Chancellor of the Exchequer

 

5

 

Page  391,  line  18  [Schedule  25],  leave out sub-paragraph (4).

 


 

Mr Chancellor of the Exchequer

 

6

 

Page  393,  line  15  [Schedule  25],  at end insert—

 

‘(ca)    

if the foreign claim relates to an agricultural levy and the steps are ones

 

to be taken in or in relation to Scotland, the Commissioners

 

concurrently with the Scottish Ministers;’.

 

Mr Chancellor of the Exchequer

 

7

 

Page  393,  line  42  [Schedule  25],  leave out sub-paragraph (2).

 


 

Mr Chancellor of the Exchequer

 

8

 

Page  395,  line  26  [Schedule  25],  leave out sub-paragraph (3).

 


 
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