House of Commons Amendments

Session 2012 - 13
Internet Publications
Other Bills before Parliament

135

House of Commons

Thursday 14 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

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.’.

Public Bill Committee: 14 June 2012
136

Finance Bill, continued

Grahame M. Morris

186


Clause  38,  page  26,  line  13,  at end add—

‘(2)
The Chancellor of the Exchequer shall review the impact of this provision on

businesses in each region of the UK. A copy of the report shall be placed 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’.

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;’.

Public Bill Committee: 14 June 2012
137

Finance Bill, continued

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)”

“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”

Public Bill Committee: 14 June 2012
138

Finance Bill, continued

“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)”

“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),”.’

Public Bill Committee: 14 June 2012
139

Finance Bill, continued

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’.

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’.

Public Bill Committee: 14 June 2012
140

Finance Bill, continued

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

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’.

Public Bill Committee: 14 June 2012
141

Finance Bill, continued

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

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’.



© Parliamentary copyright	Revised 14 June 2012