House of Commons Amendments

Session 2010 - 12
Internet Publications
Other Bills before Parliament

2533

House of Commons

Tuesday 5 July 2011

Consideration of Bill

Finance (No. 3) Bill, As Amended

John McDonnell

John Cryer

15

Page  2,  line  16  [Clause  4],  leave out ‘is treated as having come into force on 1 April

2011’ and insert ‘shall come into effect when legislation shall have been enacted requiring

that all public limited companies registered in the United Kingdom shall be required to

submit the arrangements for the payment of salaries and bonuses of their directors to a

binding vote of approval by their shareholders at an Annual General Meeting.’.

John McDonnell

John Cryer

20

Page  2,  line  16  [Clause  4],  leave out ‘is treated as having come into force on 1 April

2011’ and insert ‘shall come into effect when legislation shall have been enacted requiring

all public limited companies registered in the United Kingdom to publish the current

salaries and bonuses of their directors.’.

Malcolm Bruce

51

Page  4,  line  6  [Clause  7],  at end insert—

‘(10A)
The Chancellor shall produce, before 30 August 2011, a report on the

Government’s discussions with the industry on the implementation of the

increased charge’.

John McDonnell

John Cryer

16

Page  5,  line  8  [Clause  9],  leave out ‘on or after 6 April 2011’ and insert ‘when a

comprehensive report of HM Treasury on the impact of tax lost to HM Treasury as a result

of the striking off of companies from the Register of Companies, whether voluntarily or

as a result of the actions of the Registrar of Companies, is laid before this House with

recommendations being made on how the number of such companies struck off the

Register as a consequence of failure to comply with the requirements of the law can be

Consideration of Bill: 5 July 2011
2534

Finance (No. 3) Bill, continued

curtailed and how the resulting loss of taxation to the Exchequer can be minimised’.

John McDonnell

17

Page  27,  line  4  [Clause  42],  after ‘appoint’, insert ‘after a Report has been

submitted to the House of Commons detailing the number of EIS schemes previously

approved, their total cost in terms of tax relief, the number of jobs created by the

companies enjoying such relief and the number of companies that failed subsequent to

relief being granted allowing for an estimate to be made of the cost of each job created

under the terms of this scheme when compared to the cost of tax relief given.’.

Mr Tom Watson

9

Page  27,  line  35  [Clause  43],  at end insert—

‘(11A)
In section 1052 in subsection (2) after paragraph (a) insert—

“(e)
incurred on premises costs

(f)
incurred on design costs

(g)
incurred on patent, trade mark, registered design, copyright,

design right or plant breeder’s right (see section 1139)”.

(11B)
After section 1142 add—

“1142A
Premises costs

(1)
In this part “premises costs” means rents and business rates costs of the

studio where R&D is undertaken.

1142B
Design costs

(1)
In this Part “design costs” means—

(a)
user interface costs,

(b)
user testing costs,

(c)
aesthetic costs,

(d)
new business model costs.

(2)
In subsection (1)(a) “user interface costs” means—

(a)
costs occurred from designing the visual and functional

appearance of the application,

(b)
costs occurred from designing the code that reacts to user inputs.

(3)
In subsection (1)(b) “user testing costs” means—

(a)
costs occurred during product testing.

(4)
In subsection (1)(c) “aesthetic costs” means—

(a)
costs occurred from the artistic design of the product.

(5)
In subsection (1)(d) “new business model costs” means—

(a)
marketing of building a new business monetisation model,

(b)
marketing of testing a new business monetisation model.”’.

Consideration of Bill: 5 July 2011
2535

Finance (No. 3) Bill, continued

John McDonnell

John Cryer

18

Page  28,  line  14  [Clause  47],  at end insert ‘and shall have effect when a Report is

submitted to the House of Commons detailing progress made by HM Treasury in securing

powers to obtain information on the activities of UK resident taxpayers in tax havens,

progress made by the United Kingdom in securing rapid implementation of the proposed

changes to the European Union Savings Tax Directive and progress made in securing

information exchange under all tax information exchange agreements signed since 2005,

including the number of information exchanges made with each territory with which such

an agreement has been signed, the nature of the enquiry made in each case, the

approximate amount of tax involved and the success of the jurisdiction in question in

supplying the information requested.’.

John McDonnell

John Cryer

19

Page  42,  line  30  [Clause  73],  at end insert ‘and shall have effect when a

comprehensive report of HM Treasury on the potential for the introduction of a financial

transaction tax based upon an average rate of 0.05 per cent. applied to individuals and

institutions trading in financial products including stocks, bonds, currencies,

commodities, futures and options, is laid before this House.’.

Ed Balls

Ms Angela Eagle

Mr David Hanson

Chris Leslie

Kerry McCarthy

John Cryer

13

Page  42,  line  30  [Clause  73],  at end insert—

‘(2)
The Chancellor of the Exchequer shall review the possibility of incorporating a

bank payroll tax within the bank levy and publish a report, within six months of

the passing of this Act, on how the additional revenue raised would be invested

to create new jobs and tackle unemployment.’.

John McDonnell

John Cryer

31

Page  42,  line  30  [Clause  73],  at end insert—

‘(2)
The Chancellor of the Exchequer shall review the possibility of incorporating a

bank financial transaction tax within the bank levy, levied on trading in financial

products including stocks, bonds, currencies, commodities, futures and options

and publish a report within six months of the passing of this Act, on how the

additional revenue raised would be invested to tackle unemployment and reduce

poverty in the United Kingdom and to assist in tackling deprivation in the

developing world.’.

Consideration of Bill: 5 July 2011
2536

Finance (No. 3) Bill, continued

Ed Balls

Ms Angela Eagle

Mr David Hanson

Chris Leslie

Kerry McCarthy

Nic Dakin

Total signatories: 11

John Cryer

12

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

‘(2)
The Schedule shall not come into force except as specified in subsection (3)

below.

(3)
The Chancellor of the Exchequer shall bring the Schedule into force by order

within six months of the passing of this Act.

(4)
A statutory instrument containing an order under subsection (3) shall be

accompanied by a report which details—

(a)
any effective subsidy provided to, or additional profits accruing to,

operators of existing and new nuclear power stations as a result of the

provisions in the Schedule;

(b)
the immediate impact of the provisions in the Schedule on consumers and

on fuel poverty;

(c)
the immediate impact of the provisions in the Schedule on energy-using

manufacturing industries and on employment in those industries;

(d)
the expected effect of the provisions in the Schedule on investment in

new renewable power generation and on investment in new nuclear

power generation;

(e)
the measures that the Chancellor intends to adopt in a future Finance Bill

in order to recoup any effective subsidy to or additional profits accruing

to the nuclear industry as a result of the Schedule; and

(f)
how the monies raised by those measures will be used to mitigate the

immediate impact of the Schedule on consumers and on manufacturing

industries and to encourage green investment.’.

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.’.

Consideration of Bill: 5 July 2011
2537

Finance (No. 3) Bill, continued

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,


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.’.

Consideration of Bill: 5 July 2011
2538

Finance (No. 3) Bill, continued

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.

(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.’.

Consideration of Bill: 5 July 2011
2539

Finance (No. 3) Bill, continued

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

John Cryer

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’.

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.’.



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