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29

 

House of Commons

 
 

Thursday 26 April 2012

 

Public Bill Committee

 

New Amendments handed in are marked thus Parliamentary Star

 

Parliamentary Star - whiteAmendments 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 Order of the

 

Committee [24 April 2012].

 


 

Clause No. 3.

 

Amendment (No. 10) proposed, in 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.’.—(Owen

 

Smith).

 

Question proposed, That the Amendment be made.

 


 

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.’.


 
 

Public Bill Committee: 26 April 2012                  

30

 

Finance (No. 4) Bill, continued

 
 

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.’.

 


 

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.’.

 



 
 

Public Bill Committee: 26 April 2012                  

31

 

Finance (No. 4) Bill, continued

 
 

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.’.

 


 

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—


 
 

Public Bill Committee: 26 April 2012                  

32

 

Finance (No. 4) Bill, continued

 
 

“(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).

 


 

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).


 
 

Public Bill Committee: 26 April 2012                  

33

 

Finance (No. 4) Bill, continued

 
 

      (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—

 

(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.’.


 
 

Public Bill Committee: 26 April 2012                  

34

 

Finance (No. 4) Bill, continued

 
 

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

 

Ian Swales

 

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

 

with the Department for International Development reviewing the effect on

 

developing countries’ tax revenue, and details of aid and technical assistance

 

being provided to developing countries in order to increase the capability and

 

technical expertise in their tax regimes to collect the taxes that are due in their

 

countries, has been laid before and approved by the House of Commons.’.

 

Mark Durkan

 

Caroline Lucas

 

1

 

Page  105,  line  13,  leave out Clause 180.

 


 

Stephen Williams

 

Mark Durkan

 

Caroline Lucas

 

3

 

Schedule  20,  page  520,  line  31,  at end insert—

 

‘42A      

Notwithstanding the provisions of this Part, this Schedule will not come into

 

force until a full impact assessment has been prepared in conjunction with the

 

Department for International Development reviewing the effect on developing

 

countries’ tax revenue, and details of aid and technical assistance being

 

provided to developing countries in order to increase the capability and

 

technical expertise in their tax regimes to collect the taxes that are due in their

 

countries, has been laid before and approved by the House of Commons.’.

 



 
 

Public Bill Committee: 26 April 2012                  

35

 

Finance (No. 4) Bill, continued

 
 

NEW CLAUSES

 

Bingo Duty

 

John Hemming

 

NC1

 

To move the following Clause:—

 

‘(1)    

BGDA 1981 is amended as follows.

 

(2)    

In section 17(1)(b) of BGDA 1981 (bingo duty chargeable at 20 per cent of bingo

 

promotion profits), for “20” substitute “15”.

 

(3)    

The amendment made by subsection (2) has effect in relation to accounting

 

periods beginning on or after 30 April 2012.’.

 


 

Levy on obligated energy suppliers

 

Caroline Lucas

 

NC2

 

To move the following Clause:—

 

‘The Treasury shall prepare a report on the introduction of a levy on the profits of

 

obligated energy suppliers, with money raised to be put towards a country-wide

 

domestic energy efficiency programme prioritising those in fuel poverty, and

 

report to Parliament with proposals within three months of Royal Assent to this

 

Act.’.

 

 

Order of the House [16 April 2012]

 

That the following provisions shall apply to the Finance (No. 4) Bill:

 

Commital

 

1.    

The following shall be committed to a Committee of the whole House—

 

(a)    

Clauses 1, 4, 8, 189 and 209;

 

(b)    

Schedules 1, 23 and 33;

 

(c)    

any new Clauses and any new Schedules, first appearing on the Order

 

Paper not later than Tuesday 17 April 2012 and relating to value

 

added tax.

 

2.    

The remainder of the Bill shall be committed to a Public Bill Committee.

 

Proceedings in Committee

 

3.      (1)    

Proceedings in Committee of the whole House shall be completed in

 

two days.

 

(2)    

Those proceedings shall be taken on each of those days as shown in

 

the first column of the following table and in the order so shown.

 

(3)    

Each part of the proceedings shall (so far as not previously

 

concluded) be brought to a conclusion at the time specified in

 

relation to it in the second column of the Table.

 

(4)    

Standing Order No. 83B (Programming committees) shall not apply


 
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Revised 26 April 2012