House of Commons Amendments

Session 2012 - 13
Internet Publications
Other Bills before Parliament

83

House of Commons

Notices of Amendments

given on

Thursday 7 June 2012

For other Amendment(s) see the following page(s):

Finance Bill Committee 55-65 and 67-82

Public Bill Committee

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)

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

(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.’.

Notices of Amendments: 7 June 2012
84

Finance Bill, continued

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).

David Gauke

126

Schedule  13,  page  324,  line  31,  leave out ‘sub-paragraphs (4)(b) to (d) and (7)(b) to

(d)’ and insert ‘sub-paragraph (4)(b) to (d)’.

David Gauke

127

Schedule  13,  page  324,  line  33,  after ‘arrangement’ insert ‘or any other

arrangement’.

David Gauke

128

Schedule  13,  page  328,  line  2,  leave out from second ‘E,’ to end of line 4 and insert

‘makes—

(a)
to the lender, or a person connected with the lender, in order to reverse

the relevant change in relation to the partnership, or

(b)
otherwise to a responsible authority in order to buy out the authority’s

interest in any partnership involved in the asset-backed arrangement.’.

Notices of Amendments: 7 June 2012
85

Finance Bill, continued

David Gauke

129

Schedule  13,  page  328,  line  25,  leave out from ‘not’ to end of line 30 and insert

‘include a responsible authority.’.

David Gauke

130

Schedule  13,  page  343,  line  12,  leave out ‘under’ and insert ‘in connection with’.

David Gauke

131

Schedule  13,  page  343,  line  45,  leave out ‘under’ and insert ‘in connection with’.

David Gauke

132

Schedule  13,  page  344,  line  21,  leave out from ‘including’ to end of line 22 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

133

Schedule  13,  page  344,  line  25,  at end insert—

  ‘(9A)
For the purposes of sub-paragraphs (3)(a) and (6)(b) a person is entitled to a

payment “in connection with” the asset-backed arrangement if the person is

entitled to the payment directly or indirectly in consequence of the

arrangement or otherwise in connection with the arrangement.’.

David Gauke

134

Schedule  13,  page  344,  line  28,  after ‘arrangement’ insert ‘or any other

arrangement’.

David Gauke

135

Clause  126,  page  76,  line  13,  leave out from ‘any’ to end of line 15 and insert

‘relevant non-trading deficit which the company has for the accounting period.’.

David Gauke

136

Clause  126,  page  76,  line  15,  at end insert—

‘(2)
The reference to a relevant non-trading deficit for an accounting period is a

reference to the non-trading deficit which the company would have under section

388 of CTA 2009 (loan relationships and derivative contracts) if credits and

debits given in respect of the company’s creditor relationships (within the

meaning of Part 5 of that Act) were ignored.’.

Notices of Amendments: 7 June 2012
86

Finance Bill, continued

David Gauke

137

Clause  129,  page  78,  line  19,  at end insert—

‘(5A)
But if there is a difference between—

(a)
the net amount recognised by the transferee in respect of the transfer of

contracts of long-term insurance or contracts made in the course of

capital redemption business, and

(b)
the net amount recognised by the transferor in respect of the transfer of

those contracts,


the amount of the difference is to be taken into account for the purpose of

calculating the BLAGAB trade profit or loss of the transferee for the accounting

period in which those contracts are transferred.

(5B)
The difference is to be taken into account—

(a)
as a receipt (if, when added to the net amount in subsection (5A)(b), the

result is the net amount in subsection (5A)(a)), and

(b)
as an expense (if, when subtracted from the net amount in subsection

(5A)(b), the result is the net amount in subsection (5A)(a)).

(5C)
The net amount recognised by an insurance company in respect of the transfer of

the contracts is determined by subtracting—

(a)
the total amount in respect of liabilities relating to the contracts that is or

would be recognised for the purposes of a balance sheet drawn up at the

relevant time by the company in accordance with generally accepted

accounting practice, from

(b)
the total amount in respect of assets relating to the contracts that is or

would be recognised for those purposes,


and “the relevant time” means the time immediately before the transfer (in the

case of the transferor) and the time immediately after it (in the case of the

transferee).

(5D)
The Treasury may by order amend any of subsections (5A) to (5C).’.

David Gauke

138

Clause  129,  page  78,  line  19,  at end insert—

‘(5E)
This section does not apply to any amount that arises in respect of a transfer so

far as the transfer consists of a with-profits fund transfer.


The reference here to a with-profits fund transfer is a reference to—

(a)
a transfer of business from a with-profits fund to a fund that is not a with-

profits fund, or

(b)
a transfer of business from a fund that is not a with-profits fund to a with-

profits fund.’.

David Gauke

139

Clause  130,  page  78,  line  27,  at beginning insert ‘either’.

David Gauke

140

Clause  130,  page  78,  line  28,  at end insert ‘or, if they are, the transfer consists of or

includes a with-profits fund transfer within the meaning of section 129(5E)’.

Notices of Amendments: 7 June 2012
87

Finance Bill, continued

David Gauke

141

Clause  130,  page  78,  line  31,  leave out ‘business (or part of the business)

transferred’ and insert ‘relevant transferred business’.

David Gauke

142

Clause  130,  page  78,  line  38,  at end insert—

‘(2A)
In subsection (1)(c) “the relevant transferred business” means—

(a)
if the transferor and transferee are not members of the same group of

companies when the transfer occurs, the business (or part of the business)

transferred under the insurance business transfer scheme, and

(b)
if the transfer consists of or includes a with-profits fund transfer, the

business transferred by the with-profits fund transfer.’.

David Gauke

143

Clause  130,  page  78,  line  41,  leave out from ‘apply’ to end of line 42 and insert ‘so

far as section 129(5) applies in relation to the transfer.’.

David Gauke

144

Schedule  16,  page  388,  line  41,  leave out paragraph (c) and insert—

‘(c)
in step 2, for paragraph (a) (together with the “and” at the end of it)

substitute—

“(a)
so much of the amount for the purposes of section

73 of FA 2012 of the adjusted BLAGAB

management expenses of the company for the

period as, on the assumption that the company had

no BLAGAB non-trading loan relationships profits

for the period, could be subtracted at step 6 under

that section without producing a negative amount,

and”,’.

David Gauke

145

Schedule  17,  page  417,  line  8,  leave out sub-paragraphs (2) to (5) and insert—

    ‘(2)
Each new holding is treated for the purposes of corporation tax on chargeable

gains as if it were a holding of the company with a base cost and an indexation

allowance as at 1 January 2013 equal to the total of the base costs and

indexation allowances of the old holdings that are carried into the new holding.

      (3)
In the case of securities (“new securities”) comprised in a new holding, the

amount of the base cost or indexation allowance of an old holding that is

carried into the new holding is equal to the proportion which the new securities

derived from the old holding bear to all of the securities comprised in the old

holding.

      (4)
For the purpose of calculating the indexation allowance of a new holding in

respect of any period falling on or after 1 January 2013, it is to be assumed that,

on that date, there had been a disposal of the holding for a consideration of such

amount as would secure that on the disposal neither a gain nor a loss would

accrue to the company.

      (5)
For the purposes of this paragraph—

(a)
references to a base cost are—

Notices of Amendments: 7 June 2012
88

Finance Bill, continued

(i)
in the case of a section 104 holding, references to the amount

of qualifying expenditure within the meaning of section 110

of TCGA 1992, and

(ii)
in the case of a 1982 holding, references to the amount of

expenditure that would fall to be deducted if the holding were

disposed of,

(b)
references to an indexation allowance are—

(i)
in the case of a section 104 holding, references to the

indexation allowance as found in accordance with section 110

of TCGA 1992, and

(ii)
in the case of a 1982 holding, references to the indexation

allowance within the meaning of Chapter 4 of Part 2 of that

Act,

(c)
the base cost and the indexation allowance of an old holding are

calculated on the assumption that the holding is disposed of

immediately before 1 January 2013,

(d)
“section 104 holding” has the same meaning as in section 104(3) of

TCGA 1992, and

(e)
“1982 holding” has the same meaning as in section 109 of that Act.’.

David Gauke

146

Schedule  20,  page  436,  leave out lines 36 and 37 and insert ‘by a UK connected

company.

(3)
In subsection (2)(b)(ii)—

“services” does not include services provided as part of insurance

business, and

“UK connected company” means—

(a)
a UK resident company connected with the CFC, or

(b)
a non-UK resident company connected with the CFC acting

through a UK permanent establishment.’.

David Gauke

147

Schedule  20,  page  451,  leave out lines 43 and 44 and insert ‘by a UK connected

company.

(2A)
In subsection (2)(b)(ii)—

“services” does not include services provided as part of insurance

business, and

“UK connected company” means—

(c)
a UK resident company connected with the CFC, or

(d)
a non-UK resident company connected with the CFC acting

through a UK permanent establishment.’.

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’.

Notices of Amendments: 7 June 2012
89

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)”



© Parliamentary copyright	Revised 13 June 2012