House of Commons Amendments

Session 2012 - 13
Internet Publications
Other Bills before Parliament

Public Bill Committee: 14 June 2012
142

Finance Bill, continued

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’.

David Gauke

31

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

    ‘(2)
Those amendments 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’.

Public Bill Committee: 14 June 2012
143

Finance Bill, continued

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,’.

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’.

Public Bill Committee: 14 June 2012
144

Finance Bill, continued

Ed Balls

Rachel Reeves

Chris Leslie

Cathy Jamieson

Catherine McKinnell

180

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

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.’.

Public Bill Committee: 14 June 2012
145

Finance Bill, continued

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.’.

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).’.

Public Bill Committee: 14 June 2012
146

Finance Bill, continued

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.’.

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

35

Schedule  13,  page  330,  line  33,  leave out from ‘year’ to end of line 35 and insert

‘(but allowing for payments otherwise due to arise on a non-working day to arise on the

next working day),’.

David Gauke

36

Schedule  13,  page  330,  line  49,  at end insert—

‘(4A)
For the purposes of subsection (4)(b) the first payment is to arise no

later than one year after the day on which the advance is paid.’.

David Gauke

37

Schedule  13,  page  333,  line  22,  leave out from ‘year’ to end of line 24 and insert

‘(but allowing for determinations otherwise due to be made on a non-working day to be

made on the next working day),’.

David Gauke

38

Schedule  13,  page  333,  line  40,  at end insert—

‘(4A)
For the purposes of subsection (4)(c) the first determination is to be

made no later than one year after the day on which the advance is

paid.’.

Public Bill Committee: 14 June 2012
147

Finance Bill, continued

David Gauke

39

Schedule  13,  page  336,  line  11,  leave out from ‘year’ to end of line 13 and insert

‘(but allowing for determinations otherwise due to be made on a non-working day to be

made on the next working day),’.

David Gauke

40

Schedule  13,  page  336,  line  29,  at end insert—

‘(4A)
For the purposes of subsection (4)(c) the first determination is to be

made no later than one year after the day on which the advance is

paid.’.

David Gauke

41

Schedule  13,  page  342,  line  17,  at end insert—

    ‘(3)
For the purposes of sub-paragraph (1)(d), in sections 196C(4A), 196E(4A) and

196G(4A) the reference to one year is to be read as a reference to 18 months.’.

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’.

Public Bill Committee: 14 June 2012
148

Finance Bill, continued

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.’.

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—



© Parliamentary copyright	Revised 14 June 2012