House of Commons Amendments

Session 2012 - 13
Internet Publications
Other Bills before Parliament

95

House of Commons

Tuesday 12 June 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 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].

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—

Public Bill Committee: 12 June 2012
96

Finance Bill, continued

‘(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

32

Clause  20,  page  12,  line  3,  at end add—

‘(2)
The Chancellor of the Exchequer shall review the extent to which intellectual

property created as a result of research and development expenditure which falls

within Part 13 of CTA 2009 is vested in companies whose income is not within

the charge to corporation tax, and place a copy of the report 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).

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’.

Public Bill Committee: 12 June 2012
97

Finance Bill, continued

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—

(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).”’.

Public Bill Committee: 12 June 2012
98

Finance Bill, continued

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.’.

Ed Balls

Rachel Reeves

Cathy Jamieson

Catherine McKinnell

Chris Leslie

42

Clause  34,  page  24,  line  2,  at end add—

‘(8)
The Chancellor of the Exchequer shall review the impact of this section on the

number of taxpayers brought into Capital Gains Tax, and will lay a report of his

review in the House of Commons Library.’.

David Gauke

148

Schedule  6,  page  211,  line  14,  leave out ‘in consequence’ and insert ‘, nor any

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

Public Bill Committee: 12 June 2012
99

Finance Bill, continued

David Gauke

149

Schedule  6,  page  211,  leave out lines 17 to 27 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

150

Schedule  6,  page  211,  line  33,  leave out from ‘is’ to end of line 34 and insert ‘, in

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

persons.’.

David Gauke

151

Schedule  6,  page  211,  line  36,  after ‘that’ insert ‘the whole or greater part of’.

David Gauke

152

Schedule  6,  page  211,  line  38,  leave out from ‘by’ to end of line 39 and insert ‘a

relevant person or relevant persons.’.

David Gauke

153

Schedule  6,  page  212,  line  6,  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

154

Schedule  6,  page  248,  leave out lines 20 and 21.

David Gauke

155

Schedule  6,  page  248,  leave out lines 24 and 25.

David Gauke

156

Schedule  6,  page  258,  line  20,  at end insert—

‘   (1)
Schedule 4 (index of defined expressions) is amended as follows.

      (2)
Insert the following entries at the appropriate places—

“arrangements (in Part 5A)
section 257HJ(1)”

Public Bill Committee: 12 June 2012
100

Finance Bill, continued

“associate (in Part 5A)
section 257HJ(1)”

“bonus shares (in Part 5A)
section 257HJ(1)”

“compliance certificate (in Part 5A)
section 257EC(1)”

“compliance statement (in Part 5A)
section 257ED(1)”

“director (in Part 5A)
section 257HJ(1)”

“disposal of shares (in Part 5A)
section 257HH”

“EIS relief (in Part 5A)
section 257HJ(1)”

“group (in Part 5A)
section 257HJ(1)”

“group company (in Part 5A)
section 257HJ(1)”

“issue of shares (in Part 5A)
section 257HI”

“market value (in Part 5A)
section 257HJ(6)”

“new qualifying trade (in Part 5A)
section 257HF”

“ordinary shares (in Part 5A)
section 257HJ(1)”

“parent company (in Part 5A)
section 257HJ(1)”

Public Bill Committee: 12 June 2012
101

Finance Bill, continued

“period A, period B (in Part 5A)
section 257AC”

“permanent establishment (in Part 5A)
section 257HJ(1)”

“qualifying business activity (in Part 5A)
section 257HG”

“qualifying subsidiary (in Part 5A)
section 257HJ(1)”

“qualifying 90% subsidiary (in Part 5A)
section 257HJ(1)”

“research and development (in Part 5A)
section 257HJ(1)”

“SEIS (in Part 5A)
section 257A(2)”

“single company (in Part 5A)
section 257HJ(1)”

      (3)
In the entry for “control”, in the second column, after “257(3),” insert

“257HJ(3),”.’

Ed Balls

Rachel Reeves

Cathy Jamieson

Catherine McKinnell

Chris Leslie

43

Schedule  7,  page  260,  line  34,  leave out ‘£5 million’ and insert ‘£10 million’.

David Gauke

157

Schedule  7,  page  261,  line  16,  leave out ‘in consequence’ and insert ‘, nor any

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



© Parliamentary copyright	Revised 12 June 2012