Session 2012 - 13
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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Withdrawn  32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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