House of Commons Amendments

Session 2012 - 13
Internet Publications
Other Bills before Parliament

Public Bill Committee: 14 June 2012
163

Finance Bill, continued

(ii)
so far as not covered by sub-paragraph (i), an

arrangement intended to produce for any person a

return in relation to any amount which it is reasonable

to suppose would be a return by reference to the time

value of that amount of money.’.

David Gauke

103

Schedule  20,  page  508,  line  37,  leave out ‘they’ and insert ‘the assets’.

David Gauke

104

Schedule  20,  page  511,  leave out line 19 and insert—

‘(3)
For section 371IA(5) there is to be substituted—

“(5)
75% of the profits of each qualifying loan relationship are

“exempt” under this Chapter.”

(3A)
In section 371IA(9)(a) the words “or Chapter 8 (solo consolidation)”

are to be omitted.

(3B)
Sections 371IB to 371IE are to be omitted.

(3C)
Section 371IH(9)(a) is to be read ignoring the modification in section

18HC(b) above.’.

David Gauke

105

Schedule  20,  page  511,  line  21,  after ‘X’ insert ‘and subsection (5) is to be

omitted’.

David Gauke

106

Schedule  20,  page  513,  leave out lines 17 to 19 and insert—

‘(4)
For the purposes of step 3 in section 371NB(1) the amount of the

corresponding UK tax for the accounting period is to be determined in

accordance with subsection (5) below; and section 371NE is to be

omitted accordingly.

(5)
“The corresponding UK tax” is the amount of corporation tax which

would be payable in respect of the adjusted relevant profits amount if

it were subject in full to corporation tax, ignoring any credit which

would be allowed against it under section 18(3) of TIOPA 2010 and

assuming, where there is more than one rate of corporation tax

applicable to period X, that it were chargeable at the average rate over

period X.”’.

David Gauke

107

Schedule  20,  page  517,  line  13,  leave out from ‘paragraph’ to end of line 16 and

insert ‘(b), and

(b)
before paragraph (k) (as inserted by paragraph 136 of Schedule 16 to

this Act) insert—

Public Bill Committee: 14 June 2012
164

Finance Bill, continued

“(ja)
Part 9A of that Act (controlled foreign

companies),”.’.

David Gauke

108

Schedule  20,  page  518,  line  44,  leave out from beginning to ‘references’ in line 7

on page 519 and insert—

‘(4)
Section 371RB of TIOPA 2010 (read with section 371RD of that Act)

applies for the purposes of this section.

(5)
Section 371RD of TIOPA 2010 applies for the purpose of determining

if the requirements of subsection (3)(b) and (c) are met in any case.

(6)
In subsections (4) and (5)’.

David Gauke

109

Schedule  20,  page  519,  line  32,  at end insert—

‘38A (1)
Section 938M (group mismatch schemes: controlled foreign companies) is

amended as follows.

      (2)
In subsection (1) for the words from the beginning to “company” substitute

“Section 371SL(1) of TIOPA 2010 (assumption that a CFC”.

      (3)
In subsection (2)—

(a)
for “chargeable profits” substitute “assumed taxable total profits”, and

(b)
for “Chapter 4 of Part 17 of ICTA” substitute “Part 9A of TIOPA

2010”.’.

David Gauke

110

Schedule  20,  page  519,  line  40,  at end insert—

‘40A (1)
Section 179 (compensating payment if advantaged person is controlled foreign

company) is amended as follows.

      (2)
For subsection (1) substitute—

“(1)
Subsection (2) applies if—

(a)
the actual provision is provision made or imposed in relation

to a CFC,

(b)
for the purpose of determining the CFC’s assumed taxable

total profits for an accounting period, the CFC’s profits and

losses are to be calculated in accordance with section 147(3)

or (5) in the case of that provision,

(c)
in relation to the accounting period, sums are charged on

chargeable companies at step 5 in section 371BC(1), and

(d)
in consequence of the application of section 147(3) or (5) as

mentioned in paragraph (b), the total of those sums is more

than it would otherwise be.”

      (3)
In subsection (2) for “controlled foreign company” substitute “CFC”.

      (4)
In subsection (3)—

(a)
in paragraph (a) for “companies mentioned in subsection (1)(c)”

substitute “chargeable companies on which a sum is charged”, and

(b)
in paragraph (b) for “tax chargeable under section 747(4) of ICTA”

substitute “the CFC charge”.

Public Bill Committee: 14 June 2012
165

Finance Bill, continued

      (5)
For subsection (4) substitute—

“(4)
In this section terms which are defined in Part 9A have the same

meaning as they have in that Part.

(5)
For the purposes of subsections (1)(c) and (d) and (3)(a) assume that

any claims made under Chapter 9 of Part 9A for the accounting period

were not made.”’.

David Gauke

111

Schedule  20,  page  520,  line  21,  after ‘371BC(3)’ insert ‘, subject to sections

371BG(3)(a) and 371BH(2A)(b)’.

David Gauke

112

Schedule  20,  page  520,  line  23,  leave out from ‘9A’ to ‘by’ in line 24 and insert ‘or

which are qualifying loan relationship profits is limited to amounts—

(a)
which so fall or which are such profits’.

David Gauke

113

Schedule  20,  page  520,  line  28,  at end insert—

‘Insurance Companies (Reserve) (Tax) Regulations 1996 (S.I. 1996/2991)

42A
The Insurance Companies (Reserve) (Tax) Regulations 1996 (S.I. 1996/2991)

are amended as follows.

42B(1)
Regulation 8A is amended as follows.

      (2)
In paragraph (1)—

(a)
in sub-paragraph (a) for “controlled foreign company” substitute

“CFC (within the meaning of Part 9A of the Taxation (International

and Other Provisions) Act 2010)”, and

(b)
in sub-paragraph (b) for “controlled foreign company” substitute

“CFC”.

      (3)
In paragraph (4)—

(a)
for “controlled foreign company’s” substitute “CFC’s”, and

(b)
for “the company” substitute “the CFC”.

42C
In regulation 8B for “controlled foreign company” substitute “CFC (within the

meaning of Part 9A of the Taxation (International and Other Provisions) Act

2010)”.’.

Stephen Williams

Mark Durkan

Caroline Lucas

3

Schedule  20,  page  520,  line  31,  at end insert—

‘42A
Notwithstanding the provisions of this Part, this Schedule will not come into

force until a full impact assessment has been prepared in conjunction with the

Department for International Development reviewing the effect on developing

countries’ tax revenue, and details of aid and technical assistance being

provided to developing countries in order to increase the capability and

technical expertise in their tax regimes to collect the taxes that are due in their

countries, has been laid before and approved by the House of Commons.’.

Public Bill Committee: 14 June 2012
166

Finance Bill, continued

David Gauke

114

Schedule  20,  page  521,  line  26,  leave out ‘and 38’ and insert ‘, 38, 38A, 40A, 42B

and 42C’.

David Gauke

115

Schedule  20,  page  522,  line  4,  at end insert—

‘First accounting periods

49A(1)
This paragraph applies in relation to a CFC the first accounting period of which

is determined in accordance with paragraph 43(2) or 44(4) above.

      (2)
For the purposes of sections 371SD(6), 371SK(3) and 371SM(3) of TIOPA

2010, assume that the CFC became a CFC at the time mentioned in paragraph

43(2) or 44(4) (as the case may be).

Elections under section 9A of CTA 2010

49B(1)
This paragraph applies if—

(a)
during a company’s accounting period within the meaning of Chapter

4 of Part 17 of ICTA a notice is given in relation to the company under

paragraph 4(2C) of Schedule 24 to ICTA,

(b)
as a result of that, the company is to be assumed under paragraph

4(2C) of Schedule 24 to ICTA to have made an election under section

9A of CTA 2010,

(c)
the assumed election—

(i)
does not cease to have effect before the end of the company’s

last accounting period within the meaning of Chapter 4 of Part

17 of ICTA to begin before 1 January 2013, and

(ii)
apart from the repeal of that Chapter by paragraph 14 above,

would not have ceased to have effect at the end of that period,

and

(d)
the company is a CFC immediately after the end of its last accounting

period mentioned in paragraph (c) and its first accounting period

within the meaning of Part 9A of TIOPA 2010 begins at that time

accordingly.

      (2)
In the application of Part 9A of TIOPA 2010 in relation to the company as a

CFC, the assumption mentioned in sub-paragraph (1)(b) is to continue to be

made as if it were required to be made by section 371SH(2) of TIOPA 2010.’.

David Gauke

116

Schedule  20,  page  522,  line  10,  leave out from ‘exempt’ to end of line 12 and insert

‘period—

(i)
does not end before the end of the company’s last accounting

period within the meaning of Chapter 4 of Part 17 of ICTA to

begin before 1 January 2013, and

(ii)
apart from the repeal of that Chapter by paragraph 14 above,

would not have ended at the end of that period, and’.

Public Bill Committee: 14 June 2012
167

Finance Bill, continued

David Gauke

117

Schedule  20,  page  522,  line  29,  after ‘exemption’ insert ‘or section 371JE of

TIOPA 2010’.

NEW CLAUSES

Bingo Duty

John Hemming

NC1

To move the following Clause:—

‘(1)
BGDA 1981 is amended as follows.

(2)
In section 17(1)(b) of BGDA 1981 (bingo duty chargeable at 20 per cent of bingo

promotion profits), for “20” substitute “15”.

(3)
The amendment made by subsection (2) has effect in relation to accounting

periods beginning on or after 30 April 2012.’.

Levy on obligated energy suppliers

Caroline Lucas

Katy Clark

Kate Hoey

Kelvin Hopkins

Mr Dai Havard

Mark Durkan

NC2

To move the following Clause:—

‘The Treasury shall prepare a report on the introduction of a levy on the profits of

obligated energy suppliers, with money raised to be put towards a country-wide

domestic energy efficiency programme prioritising those in fuel poverty, and

report to Parliament with proposals within three months of Royal Assent to this

Act.’.

Order of the House [16 April 2012]

That the following provisions shall apply to the Finance (No. 4) Bill:

Commital

1.
The following shall be committed to a Committee of the whole House—

(a)
Clauses 1, 4, 8, 189 and 209;

(b)
Schedules 1, 23 and 33;

Public Bill Committee: 14 June 2012
168

Finance Bill, continued

(c)
any new Clauses and any new Schedules, first appearing on the Order

Paper not later than Tuesday 17 April 2012 and relating to value

added tax.

2.
The remainder of the Bill shall be committed to a Public Bill Committee.

Proceedings in Committee

3.      (1)
Proceedings in Committee of the whole House shall be completed in

two days.

(2)
Those proceedings shall be taken on each of those days as shown in

the first column of the following table and in the order so shown.

(3)
Each part of the proceedings shall (so far as not previously

concluded) be brought to a conclusion at the time specified in

relation to it in the second column of the Table.

(4)
Standing Order No. 83B (Programming committees) shall not apply

to proceedings in Committee of the whole House.

              TABLE

Proceedings
Time for conclusion of proceedings

First day

Clause 1
Three hours after the commencement

of proceedings on the Bill.

Clause 209 and Schedule 33
Five hours after the commencement

of proceedings on the Bill.

New Clauses or new
Seven hours after the

Schedules first appearing on
commencement of proceedings on

the Order paper not later than
the Bill.

Tuesday 17 April 2012 and

relating to value added tax.

Clause 189 and Schedule 23
Eight and a quarter hours after the

commencement of proceedings on

the Bill.

Second day

Clause 4
Three hours after the commencement

of proceedings on the Bill.

Clause 8 and Schedule 1
At 6.00 pm on the second day.

4.      (1)
Proceedings in the Public Bill Committee shall (so far as not

previously concluded) be brought to a conclusion on Tuesday 26

June 2012.

(2)
The Public Bill Committee shall have leave to sit twice on the first

day on which it meets.

5.
When the provisions of the Bill considered, respectively, by the Committee

of the whole House and by the Public Bill Committee have been reported to

the House, the Bill shall be proceeded with as if it had been reported as a

whole to the House from the Public Bill Committee.

Public Bill Committee: 14 June 2012
169

Finance Bill, continued

Consideration and Third Reading

6.
Proceedings on Consideration and on Third Reading shall be completed in

two days.

7.
Standing Order No. 83B (Programming committees) shall not apply to

proceedings on Consideration and Third Reading.

Order of the Committee [24 APRIL 2012]

That—

(1)
the Committee shall (in addition to its first meeting at 10.30 am on Tuesday

24 April) meet—

(a)
at 4.30 pm on Tuesday 24 April;

(b)
at 9.00 am and 1.00 pm on Thursday 26 April;

(c)
at 10.30 am and 4.30 pm on Tuesday 22 May;

(d)
at 9.00 am and 1.00 pm on Thursday 24 May;

(e)
at 10.30 am and 4.30 pm on Tuesday 12 June;

(f)
at 9.00 am and 1.00 pm on Thursday 14 June;

(g)
at 10.30 am and 4.30 pm on Tuesday 19 June;

(h)
at 9.00 am and 1.00 pm on Thursday 21 June;

(i)
at 10.30 am and 4.30 pm on Tuesday 26 June;

(2)
proceedings on consideration of the Bill in Committee shall be taken in the

following order: Clauses 2 and 3; Clauses 5 to 7; Clauses 9 to 19; Schedule

2; Clause 20; Schedule 3; Clause 21; Schedule 4; Clauses 22 to 31; Schedule

5; Clauses 32 to 36; Clause 215; Clauses 37 and 38; Schedule 6; Clause 39;

Schedule 7; Clause 40; Schedule 8; Clauses 41 and 42; Schedule 9; Clause

43; Schedule 10; Clause 44; Schedule 11; Clauses 45 to 47; Schedule 12;

Clause 48; Schedule 13; Clause 49; Schedule 14; Clauses 50 and 51;

Schedule 15; Clauses 52 to 146; Schedule 16; Clause 147; Schedule 17;

Clauses 148 to 176; Schedule 18; Clause 177; Schedule 19; Clauses 178 to

180; Schedule 20; Clauses 181 to 183; Schedule 21; Clause 184; Schedule 22;

Clauses 185 to 188; Clause 190; Schedule 24; Clauses 191 to 193; Schedule

25; Clauses 194 and 195; Schedule 26; Clauses 196 to 201; Schedule 27;

Clause 202; Schedule 28; Clauses 203 to 205; Schedules 29 to 31; Clauses

206 and 207; Schedule 32; Clause 208; Clauses 210 to 212; Schedule 34;

Clauses 213 and 214; Clause 216; Schedule 35; Clauses 217 and 218;

Schedule 36; Clauses 219 to 221; Schedule 37; Clauses 222 to 225; Schedule

38; Clauses 226 and 227; new Clauses other than those first appearing on the

Order Paper not later than Tuesday 17 April and relating to value added tax;

new Schedules other than those first appearing on the Order Paper not later

than Tuesday 17 April and relating to value added tax; remaining proceedings

on the Bill;

(3)
the proceedings shall (so far as not previously concluded) be brought to a

conclusion at 9.00 pm on Tuesday 26 June.



© Parliamentary copyright	Revised 14 June 2012