House of Commons Amendments

Session 2012 - 13
Internet Publications
Other Bills before Parliament

43

House of Commons

Tuesday 22 May 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

Owen Smith

Cathy Jamieson

Chris Leslie

6

Clause  7,  page  4,  line  28,  at end add—

‘(4)
The Chancellor of the Exchequer shall review the impact of the corporate tax

structure on businesses of different sizes, and shall place a copy of the review in

the Library of the House of Commons.’.

Ed Balls

Rachel Reeves

Owen Smith

Cathy Jamieson

Chris Leslie

7

Clause  9,  page  5,  line  44,  at end add—

Public Bill Committee: 22 May 2012
44

Finance Bill, continued

‘(9)
The Chancellor of the Exchequer shall review the ability of HMRC to deliver the

anti-avoidance measures contained in this section and lay a report of his review

before Parliament.’.

Ed Balls

Rachel Reeves

Cathy Jamieson

Catherine McKinnell

Chris Leslie

33

Clause  10,  page  6,  line  43,  at end insert—

‘(5A)
The Chancellor of the Exchequer shall review how the targeted anti-avoidance

measure contained in this section will interact with the proposed General Anti-

Abuse Rule in Finance Bill 2013, and lay a report of his review in the House of

Commons Library.’.

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—

‘(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.’.

Public Bill Committee: 22 May 2012
45

Finance Bill, continued

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’.

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.”’.

Public Bill Committee: 22 May 2012
46

Finance Bill, continued

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).”’.

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,

Public Bill Committee: 22 May 2012
47

Finance Bill, continued

(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.’.

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’.

Public Bill Committee: 22 May 2012
48

Finance Bill, continued

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

28

Schedule  8,  page  275,  line  16,  leave out ‘6 April 2012’ insert ‘the day on which this

Act is passed’.

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 amendment 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—

Public Bill Committee: 22 May 2012
49

Finance Bill, continued

‘(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’.

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.”’.

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.’.



© Parliamentary copyright	Revised 22 May 2012