House of Commons Amendments

Session 2010 - 12
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Other Bills before Parliament

2473

House of Commons

Tuesday 28 June 2011

Consideration of Bill

Finance (No. 3) Bill, As Amended

New Clauses

Medical insurance (pensioner tax relief)

Sir Paul Beresford

Mr Christopher Chope

Oliver Heald

NC1

To move the following Clause:—

‘(1)
This section applies where—

(a)
on or after 6 April 2012 an individual makes a payment in respect of a

premium under a contract of private medical insurance (whenever

issued),

(b)
the contract meets the requirement in subsection (2) below as to the

person or persons insured,

(c)
at the time the payment is made the contract is an eligible contract,

(d)
the individual making the payment does not make it out of resources

provided by another person for the purpose of enabling it to be made, and

(e)
the individual making the payment is not entitled to claim any relief or

deduction in respect of it under any other provision of the Tax Acts.

(2)
The requirement mentioned in subsection (1)(b) above is that the contract

insures—

(a)
an individual who at the time the payment is made is aged 65 or over and

resident in the United Kingdom,

(b)
individuals each of whom at that time is aged 65 or over and resident in

the United Kingdom, or

(c)
two individuals who are married to each other at that time, at least one of

whom is aged 65 or over at that time, and each of whom is resident in the

United Kingdom at that time.

(3)
If the payment is made by an individual who at the time it is made is resident in

the United Kingdom (whether or not he is the individual or one of the individuals

insured by the contract) it shall be deducted from or set off against his income for

the year of assessment in which it is made; but relief under this subsection shall

be given only on a claim made for the purpose, except where subsections (4) to

(6) below apply.

Consideration of Bill: 28 June 2011
2474

Finance (No. 3) Bill Continued

(4)
In such cases and subject to such conditions as the Commissioners of Her

Majesty’s Revenue and Customs (“the Commissioners”) may specify in

regulations, relief under subsection (3) above shall be given in accordance with

subsections (5) and (6) below.

(5)
An individual who is entitled to such relief in respect of a payment may deduct

and retain out of it an amount equal to income tax on it at the basic rate for the

year of assessment in which it is made.

(6)
The person to whom the payment is made—

(a)
shall accept the amount paid after deduction in discharge of the

individual’s liability to the same extent as if the deduction had not been

made, and

(b)
may, on making a claim, recover from the Commissioners an amount

equal to the amount deducted.

(7)
The Treasury may make regulations providing that in circumstances prescribed

in the regulations—

(a)
an individual who has made a payment in respect of a premium under a

contract of private medical insurance shall cease to be and be treated as

not having been entitled to relief under subsection (3) above; and

(b)
he or the person to whom the payment was made (depending on the terms

of the regulations) shall account to the Commissioners for tax from which

relief has been given on the basis that the individual was so entitled.

(8)
Regulations under subsection (7) above may include provision adapting or

modifying the effect of any enactment relating to income tax in order to secure

the performance of any obligation imposed under paragraph (b) of that

subsection.

(9)
In this section references to a premium, in relation to a contract of insurance, are

to any amount payable under the contract to the insurer.’.

Eligible medical insurance contracts

Sir Paul Beresford

Mr Christopher Chope

Oliver Heald

NC2

To move the following Clause:—

‘(1)
This section has effect to determine whether a contract is at a particular time (the

relevant time) an eligible contract for the purposes of section [Medical insurance

(pensioner tax relief)].

(2)
A contract is an eligible contract at the relevant time if—

(a)
it was entered into by an insurer who at the time it was entered into was

a qualifying insurer and was approved by the Commissioners for the

purposes of this section,

(b)
the period of insurance under the contract does not exceed one year

(commencing with the date it was entered into),

(c)
the contract is not connected with any other contract at the relevant time

and has not been connected with any other contract at any time since it

was entered into,

(d)
no benefit has been provided by virtue of the contract other than an

approved benefit, and

Consideration of Bill: 28 June 2011
2475

Finance (No. 3) Bill Continued

(e)
the contract meets one or more of the three conditions set out below.

(3)
The first condition is that the contract is certified by the Commissioners under

section [Certification of contracts] at the relevant time.

(4)
The second condition is that, at the time the contract was entered into, it

conformed with a standard form certified by the Commissioners as a standard

form of eligible contract.

(5)
The third condition is that, at the time the contract was entered into, it conformed

with a form varying from a standard form so certified in no other respect than by

making additions—

(a)
which were (at the time the contract was entered into) certified by the

Commissioners as compatible with an eligible contract when made to

standard form, and

(b)
which (at that time) satisfied any conditions subject to which the

additions were so certified.

(6)
Where a contract is varied, and the relevant time falls after the time the variation

takes effect, subsections (1) to (5) above shall have effect as if “entered into” read

“varied” in each place where it occurs in subsections (4) and (5) above.

(7)
For the purposes of this section a contract is connected with another contract at

any time if—

(a)
they are simultaneously in force at that time,

(b)
either of them was entered into with reference to the other, or with a view

to enabling the other to be entered into on particular terms, or with a view

to facilitating the other being entered into on particular terms, and

(c)
the terms on which either of them was entered into would have been

significantly less favourable to the insured if the other had not been

entered into.

(8)
For the purposes of this section each of the following is a qualifying insurer—

(a)
an insurer lawfully carrying on in the United Kingdom business relating

to insurance;

(b)
an insurer not carrying on business in the United Kingdom but carrying

on business in another member State and being either a national of a

member State or a company or partnership formed under the law of any

part of the United Kingdom or another member State and having its

registered office, central administration or principal place of business in

a member State.

(9)
For the purposes of this section a benefit is an approved benefit if it is provided

in pursuance of a right of a description mentioned in section [Certification of

contracts] (3)(a).’.

Consideration of Bill: 28 June 2011
2476

Finance (No. 3) Bill Continued

Certification of contracts

Sir Paul Beresford

Mr Christopher Chope

Oliver Heald

NC3

To move the following Clause:—

‘(1)
The Commissioners shall certify a contract under this section if it satisfies the

conditions set out in subsection (3) below; and the certification shall be expressed

to take effect from the time the conditions are satisfied, and shall take effect

accordingly.

(2)
The Commissioners shall revoke a certification of a contract under this section if

it comes to their notice that the contract has ceased to satisfy the conditions set

out in subsection (3) below; and the revocation shall be expressed to take effect

from the time the conditions ceased to be satisfied, and shall take effect

accordingly.

(3)
The conditions referred to above are that—

(a)
the contract either provides indemnity in respect of all or any of the costs

of all or any of the treatments, medical services and other matters for the

time being specified in regulations made by the Treasury, or in addition

to providing indemnity of that description provides cash benefits falling

within rules for the time being so specified,

(b)
the contract does not confer any right other than such a right as is

mentioned in paragraph (a) above or is for the time being specified in

regulations made by the Treasury,

(c)
the premium under the contract is in the Commissioners’ opinion

reasonable, and

(d)
the contract satisfies such other requirements as are for the time being

specified in regulations made by the Treasury.

(4)
The certification of a contract by the Commissioners under this section shall

cease to have effect if the contract is varied; but this is without prejudice to the

application of the preceding provisions of this section to the contract as varied.

(5)
Where the Commissioners refuse to certify a contract under this section, or they

revoke a certification, an appeal may be made to the relevant Tribunal by—

(a)
the insurer, or

(b)
any person who (if the policy were certified) would be entitled to relief

under section 1 above.

(6)
Where a contract is certified under this section, or a certification is revoked or

otherwise ceases to have effect, any adjustments resulting from the certification

or from its revocation or ceasing to have effect shall be made.

(7)
Subsection (6) above applies where a certification or revocation takes place on

appeal as it applies in the case of any other certification or revocation.

(8)
In this section the reference to a premium, in relation to a contract of insurance,

is to any amount payable under the contract to the insurer.’.

Consideration of Bill: 28 June 2011
2477

Finance (No. 3) Bill Continued

Medical insurance: supplementary

Sir Paul Beresford

Mr Christopher Chope

Oliver Heald

NC4

To move the following Clause:—

‘(1)
The Commissioners may by regulations—

(a)
provide that a claim under section [Medical insurance (pensioner tax

relief)] (3) or (6)(b) shall be made in such form and manner, shall be

made at such time, and shall be accompanied by such documents, as may

be prescribed;

(b)
make provision, in relation to payments in respect of which a person is

entitled to relief under section [Medical insurance (pensioner tax relief)],

for the giving by insurers in such circumstances as may be prescribed of

certificates of payment in such form as may be prescribed to such persons

as may be prescribed;

(c)
provide that a person who provides (or has at any time provided)

insurance under contracts of private medical insurance shall comply with

any notice which is served on him by the Commissioners and which

requires him within a prescribed period to make available for the

Commissioners inspection documents (of a prescribed kind) relating to

such contracts;

(d)
provide that persons of such a description as may be prescribed shall,

within a prescribed period of being required to do so by the

Commissioners, furnish to the Commissioners information (of a

prescribed kind) about contracts of private medical insurance;

(e)
make provision with respect to the approval of insurers for the purposes

of section [Eligible medical insurance contracts] and the withdrawal of

approval for the purposes of that section;

(f)
make provision for and with respect to appeals against decisions of the

Commissioners with respect to the giving or withdrawal of approval of

insurers for the purposes of section [Eligible medical insurance

contracts];

(g)
make provision with resepect to the certification by the Commissioners

of standard forms of eligible contract and variations from standard forms

of eligible contract certified by them;

(h)
make provision for and with respect to appeals against decisions of the

Commissioners with respect to the certification of standard forms of

eligible contract or variations from standard forms of eligible contract

certified by them;

(i)
provide that certification, or the revocation of a certification, under

section [Certification of contracts] shall be carried out in such form and

manner as may be prescribed;

(j)
make provision with respect to appeals against decisions of the

Commissioners with respect to certification or the revocation of

certification under section [Certification of contracts];

(k)
make provision generally as to administration in connection with

sections [Medical insurance (pensioner tax relief)] to [Certification of

contracts].

(2)
In subsection (1) above—

“eligible contract” has the meaning given by section [Eligible medical

insurance contracts], and

Consideration of Bill: 28 June 2011
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Finance (No. 3) Bill Continued

“prescribed” means prescribed by or, in relation to form, under the

regulations.’.

Transfer of personal allowances between spouses

Fiona Bruce

John Glen

Mr David Amess

Mr Gary Streeter

Craig Whittaker

Priti Patel

Total signatories: 16

Jeremy Lefroy

NC5

To move the following Clause:—

‘After section 37 of the Income Tax Act 2007, insert—

“37A
Transfer of personal allowances between spouses

(1)
This section applies to an individual who is entitled to a personal

allowance under sections 35 to 37 for a tax year if—

(a)
the individual is a person whose spouse who is living with the

individual for the whole or any part of the tax year, and

(b)
the spouse meets the requirements of section 56 (residence, etc).

(2)
If—

(a)
the allowance exceeds the individual’s remaining relievable

income;

(b)
the individual makes an election, and

(c)
the individual’s spouse makes a claim,


the individual’s spouse is entitled to an allowance for the tax year equal

to the amount of the excess.

(3)
The individual’s remaining relievable income is found by—

(a)
taking the amount of the individual’s net income, and

(b)
subtracting any personal allowance to which the individual is

entitled for the tax year.”’.

Consideration of Bill: 28 June 2011
2479

Finance (No. 3) Bill Continued

Rate of value added tax

Jonathan Edwards

NC6

To move the following Clause:—

‘(1)
In section 2(1) of the Value Added Tax Act 1994 (rate of VAT), for “20 per cent”

substitute “17.5 per cent”.

(2)
In section 21(4) of that Act (restriction on value of imported goods), for “25 per

cent” substitute “28.58 per cent”.

(3)
The amendment made by subsections (1) and (2) has effect in relation to any

supply made on or after 30 August 2011 and any acquisition or importation taking

place on or after that date.’.

Transfer of powers over other taxes to Welsh Ministers

Jonathan Edwards

NC7

To move the following Clause:—

‘(1)
The Chancellor of the Exchequer shall make regulations to transfer to Welsh

Ministers powers relating to setting other taxes and environmental taxes in Wales.

(2)
“Other taxes and environmental taxes” shall include, but is not exclusive to—

(a)
landfill tax,

(b)
stamp duty land tax,

(c)
aggregates levy, and

(d)
air passenger duty.

(3)
Regulations made under subsection (1) must be laid within 12 months of the

passing of this Act and shall be subject to annulment in pursuance of a resolution

of either House of Parliament.’.

Transfer of Corporation Tax powers to Welsh Ministers

Jonathan Edwards

NC8

To move the following Clause:—

‘(1)
The Chancellor of the Exchequer shall make regulations to transfer to Welsh

Ministers powers relating to setting corporation tax in Wales.

(2)
Regulations made under subsection (1) must be laid within 12 months of the

passing of this Act and shall be subject to annulment in pursuance of a resolution

of either House of Parliament.’.



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