House of Commons Amendments

Session 2012 - 13
Internet Publications
Other Bills before Parliament

Public Bill Committee: 12 June 2012
102

Finance Bill, continued

David Gauke

158

Schedule  7,  page  261,  leave out lines 19 to 29 and insert—

‘(a)
the main purpose, or one of the main purposes, of the arrangements is to

secure—

(i)
that a qualifying business activity is or will be carried on by the

issuing company or a qualifying 90% subsidiary of that

company, and

(ii)
that one or more persons (whether or not including any party to

the arrangements) may obtain relevant tax relief in respect of

shares issued by the issuing company which raise money for the

purposes of that activity or that such shares may comprise part of

the qualifying holdings of a VCT,

(aa)
that activity is the relevant qualifying business activity,’.

David Gauke

159

Schedule  7,  page  261,  line  35,  leave out from ‘is’ to end of line 36 and insert ‘, in

the course of the arrangements, paid to or for the benefit of a relevant person or relevant

persons.’.

David Gauke

160

Schedule  7,  page  261,  line  38,  after ‘that’ insert ‘the whole or greater part of’.

David Gauke

161

Schedule  7,  page  261,  line  40,  leave out from ‘by’ to end of line 41 and insert ‘a

relevant person or relevant persons.’.

David Gauke

162

Schedule  7,  page  262,  line  10,  at end insert—

‘“relevant person” means a person who is a party to the arrangements or a

person connected with such a party;’.

David Gauke

163

Schedule  7,  page  266,  line  33,  leave out ‘in consequence’ and insert ‘, nor any

money raised by the issue employed, in consequence or anticipation’.

David Gauke

164

Schedule  7,  page  266,  line  36,  leave out from beginning to ‘and’ in line 8 on page

267 and insert—

‘(a)
the main purpose, or one of the main purposes, of the arrangements is to

secure—

(i)
that a qualifying business activity is or will be carried on by the

company or a qualifying 90% subsidiary of the company, and

(ii)
that one or more persons (whether or not including any party to

the arrangements) may obtain relevant tax relief in respect of

shares issued by the company which raise money for the

Public Bill Committee: 12 June 2012
103

Finance Bill, continued

purposes of that activity or that such shares may comprise part of

the qualifying holdings of a venture capital trust,

(aa)
that activity is the relevant qualifying business activity,’.

David Gauke

165

Schedule  7,  page  267,  line  13,  leave out from ‘is’ to end of line 14 and insert ‘, in

the course of the arrangements, paid to or for the benefit of a relevant person or relevant

persons.’.

David Gauke

166

Schedule  7,  page  267,  line  16,  after ‘that’ insert ‘the whole or greater part of’.

David Gauke

167

Schedule  7,  page  267,  line  18,  leave out from ‘by’ to end of line 19 and insert ‘a

relevant person or relevant persons.’.

David Gauke

168

Schedule  7,  page  267,  line  36,  at end insert—

‘“relevant person” means a person who is a party to the arrangements or a

person connected with such a party;’.

Ed Balls

Rachel Reeves

Cathy Jamieson

Catherine McKinnell

Chris Leslie

44

Schedule  8,  page  270,  line  37,  leave out ‘£5 million’ and insert ‘£10 million’.

David Gauke

169

Schedule  8,  page  271,  line  30,  leave out ‘in consequence’ and insert ‘, nor any

money raised by the issue employed, in consequence or anticipation’.

David Gauke

170

Schedule  8,  page  271,  line  33,  leave out from beginning to end of line 1 on page

272 and insert—

‘(a)
the main purpose, or one of the main purposes, of the arrangements is to

secure—

(i)
that a qualifying activity is or will be carried on by the relevant

company or a qualifying 90% subsidiary of that company, and

(ii)
that shares or securities issued by the relevant company may be

comprised in any company’s qualifying holdings or that one or

more persons may obtain relevant tax relief in respect of such

Public Bill Committee: 12 June 2012
104

Finance Bill, continued

shares which raise money for the purposes of that qualifying

activity,

(aa)
that qualifying activity is the relevant qualifying activity by reference to

which the requirement in section 293(1)(b) (money raised to be

employed within two years for relevant qualifying activity) is met in

relation to the relevant holding,’.

David Gauke

171

Schedule  8,  page  272,  line  7,  leave out from ‘is’ to end of line 8 and insert ‘, in the

course of the arrangements, paid to or for the benefit of a relevant person or relevant

persons.’.

David Gauke

172

Schedule  8,  page  272,  line  10,  after ‘that’ insert ‘the whole or greater part of’.

David Gauke

173

Schedule  8,  page  272,  line  11,  leave out ‘business’.

David Gauke

174

Schedule  8,  page  272,  line  12,  leave out from ‘by’ to end of line 13 and insert ‘a

relevant person or relevant persons.’.

David Gauke

175

Schedule  8,  page  272,  line  26,  at end insert—

‘“relevant person” means a person who is a party to the arrangements or a

person connected with such a party;’.

David Gauke

176

Schedule  8,  page  272,  leave out lines 27 to 31 and insert—

‘“qualifying activity” has the same meaning as in section 291;”.

David Gauke

28

Schedule  8,  page  275,  line  16,  leave out ‘6 April 2012’ insert ‘the day on which this

Act is passed’.

David Gauke

29

Schedule  8,  page  275,  line  18,  leave out ‘date’ insert ‘day’.

David Gauke

30

Schedule  8,  page  275,  line  21,  leave out ‘date’ insert ‘day’.

Public Bill Committee: 12 June 2012
105

Finance Bill, continued

David Gauke

31

Schedule  8,  page  275,  line  31,  leave out sub-paragraph (2) and insert—

    ‘(2)
Those amendment have effect for the purpose of determining whether shares

or securities issued on or after 6 April 2012 are to be regarded as comprised in

a company’s qualifying holdings.’.

Nigel Mills

34

Clause  42,  page  27,  line  2,  at end add—

  ‘The Chancellor of the Exchequer shall instruct the Office of Tax

Simplification to prepare a report considering whether reforming the

capital allowances regime, including by switching to using accounts

depreciation, would be a more effective method of tackling avoidance.

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

Ed Balls

Rachel Reeves

Cathy Jamieson

Catherine McKinnell

Chris Leslie

45

Clause  44,  page  27,  line  8,  at end insert—

‘(2)
The Chancellor of the Exchequer shall review the impact of his capital

allowances policies on long-term investment, and will lay a report of his review

in the House of Commons Library.’.

David Gauke

25

Clause  46,  page  28,  line  28,  leave out ‘or’.

David Gauke

26

Clause  46,  page  28,  line  31,  at end insert—

‘(iii)
an initial payment or any other payment made under a relevant

superior lease to the person who is the lessor under that lease by

the person who is the lessee under that lease, or

(iv)
a payment to the seller of the proceeds of a sale of the plant or

machinery to which subsection (2FC) applies,’.

Public Bill Committee: 12 June 2012
106

Finance Bill, continued

David Gauke

27

Clause  46,  page  28,  leave out lines 36 to 38 and insert—

‘(2FB)
For the purposes of subsection (2FA)—

“payment” includes the provision of any benefit, the assumption of any

liability and any other transfer of money’s worth (and “payable” is to be

construed accordingly);

“relevant superior lease” means any lease of the plant or machinery to which

the long funding lease mentioned in subsection (1)(a) is inferior.

(2FC)
This subsection applies to a sale of the plant or machinery if—

(a)
a person has entered into a relevant transaction with another person in

respect of the plant or machinery for the purposes of Chapter 17 of this

Part (see section 213) and the sale is within section 213(1)(a),

(b)
the plant or machinery is within section 216(1)(b) (sale and lease back),

and

(c)
the conditions in section 227(2) are met.”’.

Ed Balls

Rachel Reeves

Chris Leslie

Cathy Jamieson

Catherine McKinnell

177


Schedule  12,  page  294,  line  27,  leave out ‘45’ and insert ‘30’.

Ed Balls

Rachel Reeves

Chris Leslie

Cathy Jamieson

Catherine McKinnell

178


Schedule  12,  page  294,  line  31,  leave out ‘45’ and insert ‘30’.

Ed Balls

Rachel Reeves

Chris Leslie

Cathy Jamieson

Catherine McKinnell

179


Schedule  12,  page  295,  line  1,  leave out ‘45’ and insert ‘30’.

Ed Balls

Rachel Reeves

Chris Leslie

Cathy Jamieson

Catherine McKinnell

180


Schedule  12,  page  295,  line  4,  leave out ‘45’ and insert ‘30’.

Public Bill Committee: 12 June 2012
107

Finance Bill, continued

Ed Balls

Rachel Reeves

Chris Leslie

Cathy Jamieson

Catherine McKinnell

181


Schedule  12,  page  295,  line  8,  leave out ‘45’ and insert ‘30’.

Ed Balls

Rachel Reeves

Chris Leslie

Cathy Jamieson

Catherine McKinnell

182


Schedule  12,  page  295,  line  10,  leave out ‘45’ and insert ‘30’.

Ed Balls

Rachel Reeves

Chris Leslie

Cathy Jamieson

Catherine McKinnell

183


Schedule  12,  page  295,  line  14,  leave out ‘45’ and insert ‘30’.

Ed Balls

Rachel Reeves

Chris Leslie

Cathy Jamieson

Catherine McKinnell

184


Schedule  12,  page  295,  line  21,  leave out ‘45’ and insert ‘30’.

Ed Balls

Rachel Reeves

Chris Leslie

Cathy Jamieson

Catherine McKinnell

185


Schedule  12,  page  310,  line  38,  at end add—

‘(2)
HMRC will monitor the extent to which income and chargeable gains used to

make qualifying investments under this Part of the Schedule have been taxed in

other jurisdictions and will assess the implications of this for UK domiciled

investors.’.

David Gauke

118

Schedule  13,  page  322,  line  39,  leave out from ‘is’ to end of line 43 and insert

‘“completed”—

(a)
when the share in the partnership’s profits of the person involved in the

relevant change is no longer to be determined under the asset-backed

arrangement (conditionally or unconditionally) by reference (wholly

or partly) to payments in respect of the security, or

Public Bill Committee: 12 June 2012
108

Finance Bill, continued

(b)
if earlier, when no responsible authority is any longer entitled

(conditionally or unconditionally) to any payments in connection with

the asset-backed arrangement.

      (6)
In sub-paragraph (5)(b) the reference to payments are to payments of any type

including drawings or distributions from a partnership, payments in respect of

the security and other payments in respect of an asset (as read in accordance

with section 776(4)(b) of CTA 2010).

      (7)
“Responsible authority” means—

(a)
the persons who from time to time are the trustees of the relevant

scheme, or

(b)
the persons who from time to time are the persons controlling the

management of the relevant scheme,


in their capacity as such.

      (8)
A responsible authority is entitled to a payment “in connection with” the asset-

backed arrangement if it is entitled to the payment directly or indirectly in

consequence of the arrangement or otherwise in connection with the

arrangement.’.

David Gauke

119

Schedule  13,  page  323,  line  7,  leave out ‘(2)’ and insert ‘(3)’.

David Gauke

120

Schedule  13,  page  323,  line  11,  leave out sub-paragraph (2).

David Gauke

121

Schedule  13,  page  323,  line  17,  leave out from ‘which’ to ‘the’ in line 18 and insert

‘a responsible authority is entitled in connection with’.

David Gauke

122

Schedule  13,  page  323,  line  38,  leave out sub-paragraphs (5) to (7).

David Gauke

123

Schedule  13,  page  324,  line  25,  leave out ‘and (6) and (7)’.

David Gauke

124

Schedule  13,  page  324,  line  26,  leave out from ‘including’ to end of line 27 and

insert ‘drawings or distributions from a partnership, payments in respect of the security

and other payments in respect of an asset (as read in accordance with section 776(4)(b) of

CTA 2010).’.

David Gauke

125

Schedule  13,  page  324,  line  28,  leave out sub-paragraph (9).



© Parliamentary copyright	Revised 12 June 2012