House of Commons Public Bill Committee Proceedings

Session 2012 - 13
Internet Publications
Other Bills before Parliament

11

House of Commons

Tuesday 12 June 2012

Public Bill Committee Proceedings

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)

[NiNTH AND TenTH SITTINGS]

Ed Balls

Rachel Reeves

Cathy Jamieson

Owen Smith

Chris Leslie

Negatived on division  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.’.

Clause Agreed to.

Ed Balls

Rachel Reeves

Cathy Jamieson

Owen Smith

Chris Leslie

Negatived on division  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.’.

Clause Agreed to.

Public Bill Committee Proceedings: 12 June 2012
12

Finance Bill, continued

Schedule 2 Agreed to.

Nigel Mills

Withdrawn  32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.’.

Clause Agreed to.

Nigel Mills

Not selected  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”.’.

Schedule Agreed to.

Clause 21 Agreed to.

Schedule 4 Agreed to.

Clause 22 Agreed to.

Nigel Mills

Withdrawn  13

Clause  23,  page  14,  line  36,  leave out subsections (8) to (12).

Clause Agreed to.

Public Bill Committee Proceedings: 12 June 2012
13

Finance Bill, continued

David Gauke

Agreed to  15

Clause  24,  page  15,  line  32,  leave out ‘moving into tonnage tax’ and insert ‘joining

tonnage tax group’.

David Gauke

Agreed to  16

Clause  24,  page  15,  line  34,  leave out ‘moving into tonnage tax’ and insert

‘joining tonnage tax group’.

David Gauke

Agreed to  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.”’.

David Gauke

Agreed to  18

Clause  24,  page  16,  line  26,  leave out ‘moving into tonnage tax’ and insert ‘joining

tonnage tax group’.

David Gauke

Agreed to  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—

Public Bill Committee Proceedings: 12 June 2012
14

Finance Bill, continued

(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

Agreed to  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,

(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

Agreed to  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

Agreed to  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.’.

Clause, as amended, Agreed to.

Clauses 25 to 31 Agreed to.

Schedule 5 Agreed to.

Clause 32 Agreed to.

[Adjourned until Thursday at 9.00 am



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