House of Commons Amendments

Session 2010 - 12
Internet Publications
Other Bills before Parliament

29

House of Commons

Thursday 26 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 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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