House of Commons Amendments

Session 2010 - 12
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Other Bills before Parliament

19

House of Commons

Tuesday 24 April 2012

Public Bill Committee

New Amendments handed in are marked thus

Amendments which will comply with the required notice period at their next appearance

Finance (No. 4) Bill

(Except Clauses 1, 4, 8, 189 and 209, Schedules 1, 23 and 33,

and any new Clauses and new Schedules first appearing on the Order Paper not later than

Tuesday 17 April 2012 and relating to value added tax)

Note

The Amendments have been arranged in accordance with the Resolution of the

Programming Sub-Committee.

Resolution of the Programming Sub-Committee

That—

(1)
the Committee shall (in addition to its first meeting at 10.30 am on Tuesday

24 April) meet—

(a)
at 4.30 pm on Tuesday 24 April;

(b)
at 9.00 am and 1.00 pm on Thursday 26 April;

(c)
at 10.30 am and 4.30 pm on Tuesday 22 May;

(d)
at 9.00 am and 1.00 pm on Thursday 24 May;

(e)
at 10.30 am and 4.30 pm on Tuesday 12 June;

(f)
at 9.00 am and 1.00 pm on Thursday 14 June;

(g)
at 10.30 am and 4.30 pm on Tuesday 19 June;

(h)
at 9.00 am and 1.00 pm on Thursday 21 June;

(i)
at 10.30 am and 4.30 pm on Tuesday 26 June;

(2)
proceedings on consideration of the Bill in Committee shall be taken in the

following order: Clauses 2 and 3; Clauses 5 to 7; Clauses 9 to 19; Schedule

2; Clause 20; Schedule 3; Clause 21; Schedule 4; Clauses 22 to 31; Schedule

5; Clauses 32 to 36; Clause 215; Clauses 37 and 38; Schedule 6; Clause 39;

Schedule 7; Clause 40; Schedule 8; Clauses 41 and 42; Schedule 9; Clause

43; Schedule 10; Clause 44; Schedule 11; Clauses 45 to 47; Schedule 12;

Clause 48; Schedule 13; Clause 49; Schedule 14; Clauses 50 and 51;

Schedule 15; Clauses 52 to 146; Schedule 16; Clause 147; Schedule 17;

Clauses 148 to 176; Schedule 18; Clause 177; Schedule 19; Clauses 178 to

180; Schedule 20; Clauses 181 to 183; Schedule 21; Clause 184; Schedule 22;

Public Bill Committee: 24 April 2012
20

Finance (No. 4) Bill, continued

Clauses 185 to 188; Clause 190; Schedule 24; Clauses 191 to 193; Schedule

25; Clauses 194 and 195; Schedule 26; Clauses 196 to 201; Schedule 27;

Clause 202; Schedule 28; Clauses 203 to 205; Schedules 29 to 31; Clauses

206 and 207; Schedule 32; Clause 208; Clauses 210 to 212; Schedule 34;

Clauses 213 and 214; Clause 216; Schedule 35; Clauses 217 and 218;

Schedule 36; Clauses 219 to 221; Schedule 37; Clauses 222 to 225; Schedule

38; Clauses 226 and 227; new Clauses other than those first appearing on the

Order Paper not later than Tuesday 17 April and relating to value added tax;

new Schedules other than those first appearing on the Order Paper not later

than Tuesday 17 April and relating to value added tax; remaining proceedings

on the Bill;

(3)
the proceedings shall (so far as not previously concluded) be brought to a

conclusion at 9.00 pm on Tuesday 26 June.

David Gauke has given notice of his intention to move a motion in the terms of the

Resolution of the Programming Sub-Committee (Standing Order No. 83C).

David Gauke

That, subject to the discretion of the Chair, any written evidence received by the

Committee shall be reported to the House for publication.

Ed Balls

Rachel Reeves

Owen Smith

Cathy Jamieson

Chris Leslie

8

Clause  2,  page  2,  line  27,  at end add—

‘(3)
The Chancellor of the Exchequer shall review the impact of the setting of the

basic rate limit on increasing the number of higher rate income tax payers and

place a copy of the review in the Library of the House of Commons.’.

Ed Balls

Rachel Reeves

Owen Smith

Cathy Jamieson

Chris Leslie

9

Clause  2,  page  2,  line  27,  at end add—

‘(3)
The Chancellor of the Exchequer shall review the impact that setting the basic

rate limit will have on average tax rates paid by total income and a copy of the

report shall be placed in the House of Commons Library.’.

Public Bill Committee: 24 April 2012
21

Finance (No. 4) Bill, continued

Ed Balls

Rachel Reeves

Owen Smith

Cathy Jamieson

Chris Leslie

10

Clause  3,  page  2,  line  33,  at end add—

‘(3)
The Chancellor of the Exchequer shall review the overall impact on families of

this section compared with other measures the Government is introducing and

place a copy of the review in the Library of the House of Commons.’.

Ed Balls

Rachel Reeves

Owen Smith

Cathy Jamieson

Chris Leslie

4

Clause  5,  page  4,  line  12,  at end add—

‘(3)
The Chancellor of the Exchequer shall review the impact of the corporate tax

structure including the principal rates and investment allowances on the level of

business investment, and place a copy of the review in the Library of the House

of Commons.’.

Ed Balls

Rachel Reeves

Owen Smith

Cathy Jamieson

Chris Leslie

11

Clause  5,  page  4,  line  12,  at end add—

‘(3)
The Chancellor of the Exchequer shall review the impact of the corporate tax

structure on different sectors and place a copy of the review in the Library of the

House of Commons’.

Ed Balls

Rachel Reeves

Owen Smith

Cathy Jamieson

Chris Leslie

12

Clause  5,  page  4,  line  12,  at end add—

‘(3)
The Chancellor of the Exchequer shall review the impact of the corporation tax

rate on growth, jobs, and investment in the economy, and produce a plan for jobs

and growth, which he shall lay before the House of Commons.’.

Public Bill Committee: 24 April 2012
22

Finance (No. 4) Bill, continued

Ed Balls

Rachel Reeves

Owen Smith

Cathy Jamieson

Chris Leslie

5

Clause  6,  page  4,  line  19,  at end add—

‘(4)
The Chancellor of the Exchequer shall review the evidence in favour of using

reductions in the headline rate of corporation tax as a means of promoting long

term international competitiveness and place a copy of the review in the Library

of the House of Commons.’.

Ed Balls

Rachel Reeves

Owen Smith

Cathy Jamieson

Chris Leslie

6

Clause  7,  page  4,  line  28,  at end add—

‘(4)
The Chancellor of the Exchequer shall review the impact of the corporate tax

structure on businesses of different sizes, and shall place a copy of the review in

the Library of the House of Commons.’.

Ed Balls

Rachel Reeves

Owen Smith

Cathy Jamieson

Chris Leslie

7

Clause  9,  page  5,  line  44,  at end add—

‘(9)
The Chancellor of the Exchequer shall review the ability of HMRC to deliver the

anti-avoidance measures contained in this section and lay a report of his review

before Parliament.’.

Public Bill Committee: 24 April 2012
23

Finance (No. 4) Bill, continued

Ed Balls

Rachel Reeves

Cathy Jamieson

Owen Smith

Chris Leslie

23


Clause  18,  page  11,  line  30,  at end add—

‘(3)
HM Revenue and Customs shall draw up plans to ensure that investors who are

eligible to receive interest payments gross are made aware of the need to register

with their account provider, to ensure that they do not overpay income tax.’.

Ed Balls

Rachel Reeves

Cathy Jamieson

Owen Smith

Chris Leslie

24


Clause  19,  page  11,  line  36,  at end add—

‘(2)
The Chancellor of the Exchequer shall review the impact of this provision on

businesses and shall consider where there are other opportunities to introduce

targeted support for business. A copy of the report shall be placed in the House of

Commons Library.’.

Nigel Mills

14

Schedule  3,  page  185,  line  3,  at end insert—

‘37A (1)
Section 1074 (“Additional deduction in calculating profits of trade”) is

amended as follows.

      (2)
In section (i) leave out “and C” and insert “C and D”.

      (3)
After subsection (4) insert—

“(4A)
Condition D is that any intellectual property created as a result of the

research and development is or will be vested in a company whose

income is within the change to corporation tax”.’.

Nigel Mills

13

Clause  23,  page  14,  line  36,  leave out subsections (8) to (12).

Public Bill Committee: 24 April 2012
24

Finance (No. 4) Bill, continued

David Gauke

15


Clause  24,  page  15,  line  32,  leave out ‘moving into tonnage tax’ and insert ‘joining

tonnage tax group’.

David Gauke

16


Clause  24,  page  15,  line  34,  leave out ‘moving into tonnage tax’ and insert

‘joining tonnage tax group’.

David Gauke

17


Clause  24,  page  15,  line  36,  leave out from ‘if’ to end of line 38 and insert ‘—

(a)
on that day A becomes a member of a tonnage tax group for the purposes

of Schedule 22 to FA 2000 without entering tonnage tax on that day, or

(b)
the day ends immediately before the day on which, for the purposes of

that Schedule, A both becomes a member of a tonnage tax group and

enters tonnage tax.”’.

David Gauke

18


Clause  24,  page  16,  line  26,  leave out ‘moving into tonnage tax’ and insert ‘joining

tonnage tax group’.

David Gauke

19


Clause  24,  page  16,  line  28,  at end insert—

‘(7A)
In Schedule 22 to FA 2000 (tonnage tax), after paragraph 79 insert—

“79A (1)
This paragraph applies if—

(a)
a balancing charge under this Part of this Schedule arises to

the company on the disposal of any plant or machinery, and

(b)
the plant or machinery is taken into account in calculating

income that the company is treated as receiving under section

383 or 417 of the Corporation Tax Act 2010 (sales of lessors)

as a result of section 394ZA of that Act (company joining

tonnage tax group).

      (2)
The balancing charge is to be reduced by the relevant part of the sales

of lessors expense so far as relief has not previously been given for that

expense (whether under this sub-paragraph or otherwise).

      (3)
“The sales of lessors expense” means—

(a)
the expense which the company is treated as incurring under

section 383 or 417 of the Corporation Tax Act 2010 as a result

of section 394ZA of that Act, or

(b)
if section 386 or 419 of that Act applies or has applied, the

expense which derives from the expense within paragraph (a).

      (4)
If the sales of lessors expense is incurred at a time when the company

is in tonnage tax, the “relevant part” of that expense is so much of it

as, on a just and reasonable basis, is attributable to the matters set out

in paragraph 56(1)(a) or (b).

      (5)
If—

Public Bill Committee: 24 April 2012
25

Finance (No. 4) Bill, continued

(a)
the sales of lessors expense is not incurred at a time when the

company is in tonnage tax,

(b)
that expense is taken into account in calculating a loss made

by the company in a trade, and

(c)
the loss is one to which paragraph 56 applies,


the “relevant part” of the sales of lessors expense is so much of the

apportioned loss as, on a just and reasonable basis, is derived from the

sales of lessors expense.

      (6)
The reference here to the apportioned loss is to the loss that is

attributable to the matters set out in paragraph 56(1)(a) or (b).”’.

David Gauke

20


Clause  24,  page  16,  line  30,  leave out paragraphs (a) and (b) and insert—

‘(a)
where the income arises as a result of a company becoming a member of

a tonnage tax group on or after 21 March 2012 and entering tonnage tax

at the same time,

(b)
where the income arises as a result of a company becoming a member of

a tonnage tax group on or after 23 April 2012 without entering tonnage

tax at the same time, or

(c)
where the relevant day is on or after 21 March 2012 (in any case not

within paragraph (a) or (b)).’.

David Gauke

21


Clause  24,  page  16,  line  33,  leave out from ‘(5)’ to end of line 35 and insert ‘and

(7A) have effect—

(a)
where a company becomes a member of a tonnage tax group on or after

21 March 2012 and enters tonnage tax at the same time, or

(b)
where a company becomes a member of a tonnage tax group on or after

23 April 2012 without entering tonnage tax at the same time.’.

David Gauke

22


Clause  24,  page  16,  line  36,  leave out from ‘effect’ to end of line 37 and insert ‘—

(a)
except in a case within paragraph (b), where the transfer day is on or after

21 March 2012, and

(b)
in a case where the relevant change in the relationship occurs as a result

of a company becoming a member of a tonnage tax group without

entering tonnage tax at the same time, where the transfer day is on or after

23 April 2012.’.

Stephen Williams

Mark Durkan

Caroline Lucas

2

Clause  180,  page  105,  line  19,  at end add—

‘(2)
Notwithstanding the provisions of Part 4 of Schedule 20, the Schedule will not

come into force until a full impact assessment has been prepared in conjunction



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