Session 2012 - 13
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15

 

House of Commons

 
 

Thursday 14 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)


 

[ELEVENTH AND Twelfth SITTINGS]


 

Clause 33 Agreed to.

 


 

Ed Balls

 

Rachel Reeves

 

Cathy Jamieson

 

Catherine McKinnell

 

Chris Leslie

 

Negatived on division  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.’.

 

Clause Agreed to.

 

Clauses 35, 36, 215 and 37 Agreed to.

 


 

Grahame M. Morris

 

Not selected  186

 

Parliamentary Star - white    

Clause  38,  page  26,  line  13,  at end add—

 

‘(2)    

The Chancellor of the Exchequer shall review the impact of this provision on

 

businesses in each region of the UK. A copy of the report shall be placed in the

 

House of Commons Library.’.


 
 

Public Bill Committee Proceedings: 14 June 2012            

16

 

Finance Bill, continued

 
 

Clause Agreed to.

 


 

David Gauke

 

Agreed to  148

 

Schedule  6,  page  211,  line  14,  leave out ‘in consequence’ and insert ‘, nor any

 

money raised by the issue spent, in consequence or anticipation’.

 

David Gauke

 

Agreed to  149

 

Schedule  6,  page  211,  leave out lines 17 to 27 and insert—

 

‘(a)    

the main purpose, or one of the main purposes, of the arrangements is to

 

secure—

 

(i)    

that a qualifying business activity is or will be carried on by the

 

issuing company or a qualifying 90% subsidiary of that

 

company, and

 

(ii)    

that one or more persons (whether or not including any party to

 

the arrangements) may obtain relevant tax relief in respect of

 

shares issued by the issuing company which raise money for the

 

purposes of that activity or that such shares may comprise part of

 

the qualifying holdings of a VCT,

 

(aa)    

that activity is the relevant qualifying business activity,’.

 

David Gauke

 

Agreed to  150

 

Schedule  6,  page  211,  line  33,  leave out from ‘is’ to end of line 34 and insert ‘, in

 

the course of the arrangements, paid to or for the benefit of a relevant person or relevant

 

persons.’.

 

David Gauke

 

Agreed to  151

 

Schedule  6,  page  211,  line  36,  after ‘that’ insert ‘the whole or greater part of’.

 

David Gauke

 

Agreed to  152

 

Schedule  6,  page  211,  line  38,  leave out from ‘by’ to end of line 39 and insert ‘a

 

relevant person or relevant persons.’.

 

David Gauke

 

Agreed to  153

 

Schedule  6,  page  212,  line  6,  at end insert—

 

‘“relevant person” means a person who is a party to the arrangements or a

 

person connected with such a party;’.

 

David Gauke

 

Agreed to  154

 

Schedule  6,  page  248,  leave out lines 20 and 21.


 
 

Public Bill Committee Proceedings: 14 June 2012            

17

 

Finance Bill, continued

 
 

David Gauke

 

Agreed to  155

 

Schedule  6,  page  248,  leave out lines 24 and 25.

 

David Gauke

 

Agreed to  156

 

Schedule  6,  page  258,  line  20,  at end insert—

 

‘   (1)  

Schedule 4 (index of defined expressions) is amended as follows.

 

      (2)  

Insert the following entries at the appropriate places—

 

“arrangements (in Part 5A)

section 257HJ(1)”

 
 

“associate (in Part 5A)

section 257HJ(1)”

 
 

“bonus shares (in Part 5A)

section 257HJ(1)”

 
 

“compliance certificate (in Part 5A)

section 257EC(1)”

 
 

“compliance statement (in Part 5A)

section 257ED(1)”

 
 

“director (in Part 5A)

section 257HJ(1)”

 
 

“disposal of shares (in Part 5A)

section 257HH”

 
 

“EIS relief (in Part 5A)

section 257HJ(1)”

 
 

“group (in Part 5A)

section 257HJ(1)”

 
 

“group company (in Part 5A)

section 257HJ(1)”

 
 

“issue of shares (in Part 5A)

section 257HI”

 
 

“market value (in Part 5A)

section 257HJ(6)”

 

 
 

Public Bill Committee Proceedings: 14 June 2012            

18

 

Finance Bill, continued

 
 

“new qualifying trade (in Part 5A)

section 257HF”

 
 

“ordinary shares (in Part 5A)

section 257HJ(1)”

 
 

“parent company (in Part 5A)

section 257HJ(1)”

 
 

“period A, period B (in Part 5A)

section 257AC”

 
 

“permanent establishment (in Part 5A)

section 257HJ(1)”

 
 

“qualifying business activity (in Part 5A)

section 257HG”

 
 

“qualifying subsidiary (in Part 5A)

section 257HJ(1)”

 
 

“qualifying 90% subsidiary (in Part 5A)

section 257HJ(1)”

 
 

“research and development (in Part 5A)

section 257HJ(1)”

 
 

“SEIS (in Part 5A)

section 257A(2)”

 
 

“single company (in Part 5A)

section 257HJ(1)”

 
 

      (3)  

In the entry for “control”, in the second column, after “257(3),” insert

 

“257HJ(3),”.’

 

Schedule, as amended, Agreed to.

 

Clause 39 Agreed to.

 



 
 

Public Bill Committee Proceedings: 14 June 2012            

19

 

Finance Bill, continued

 
 

Ed Balls

 

Rachel Reeves

 

Cathy Jamieson

 

Catherine McKinnell

 

Chris Leslie

 

Not called  43

 

Schedule  7,  page  260,  line  34,  leave out ‘£5 million’ and insert ‘£10 million’.

 

David Gauke

 

Agreed to  157

 

Schedule  7,  page  261,  line  16,  leave out ‘in consequence’ and insert ‘, nor any

 

money raised by the issue employed, in consequence or anticipation’.

 

David Gauke

 

Agreed to  158

 

Schedule  7,  page  261,  leave out lines 19 to 29 and insert—

 

‘(a)    

the main purpose, or one of the main purposes, of the arrangements is to

 

secure—

 

(i)    

that a qualifying business activity is or will be carried on by the

 

issuing company or a qualifying 90% subsidiary of that

 

company, and

 

(ii)    

that one or more persons (whether or not including any party to

 

the arrangements) may obtain relevant tax relief in respect of

 

shares issued by the issuing company which raise money for the

 

purposes of that activity or that such shares may comprise part of

 

the qualifying holdings of a VCT,

 

(aa)    

that activity is the relevant qualifying business activity,’.

 

David Gauke

 

Agreed to  159

 

Schedule  7,  page  261,  line  35,  leave out from ‘is’ to end of line 36 and insert ‘, in

 

the course of the arrangements, paid to or for the benefit of a relevant person or relevant

 

persons.’.

 

David Gauke

 

Agreed to  160

 

Schedule  7,  page  261,  line  38,  after ‘that’ insert ‘the whole or greater part of’.

 

David Gauke

 

Agreed to  161

 

Schedule  7,  page  261,  line  40,  leave out from ‘by’ to end of line 41 and insert ‘a

 

relevant person or relevant persons.’.

 

David Gauke

 

Agreed to  162

 

Schedule  7,  page  262,  line  10,  at end insert—

 

‘“relevant person” means a person who is a party to the arrangements or a

 

person connected with such a party;’.

 

David Gauke

 

Agreed to  163

 

Schedule  7,  page  266,  line  33,  leave out ‘in consequence’ and insert ‘, nor any

 

money raised by the issue employed, in consequence or anticipation’.


 
 

Public Bill Committee Proceedings: 14 June 2012            

20

 

Finance Bill, continued

 
 

David Gauke

 

Agreed to  164

 

Schedule  7,  page  266,  line  36,  leave out from beginning to ‘and’ in line 8 on page

 

267 and insert—

 

‘(a)    

the main purpose, or one of the main purposes, of the arrangements is to

 

secure—

 

(i)    

that a qualifying business activity is or will be carried on by the

 

company or a qualifying 90% subsidiary of the company, and

 

(ii)    

that one or more persons (whether or not including any party to

 

the arrangements) may obtain relevant tax relief in respect of

 

shares issued by the company which raise money for the

 

purposes of that activity or that such shares may comprise part of

 

the qualifying holdings of a venture capital trust,

 

(aa)    

that activity is the relevant qualifying business activity,’.

 

David Gauke

 

Agreed to  165

 

Schedule  7,  page  267,  line  13,  leave out from ‘is’ to end of line 14 and insert ‘, in

 

the course of the arrangements, paid to or for the benefit of a relevant person or relevant

 

persons.’.

 

David Gauke

 

Agreed to  166

 

Schedule  7,  page  267,  line  16,  after ‘that’ insert ‘the whole or greater part of’.

 

David Gauke

 

Agreed to  167

 

Schedule  7,  page  267,  line  18,  leave out from ‘by’ to end of line 19 and insert ‘a

 

relevant person or relevant persons.’.

 

David Gauke

 

Agreed to  168

 

Schedule  7,  page  267,  line  36,  at end insert—

 

‘“relevant person” means a person who is a party to the arrangements or a

 

person connected with such a party;’.

 

Schedule, as amended, Agreed to.

 

Clause 40 Agreed to.

 


 

Ed Balls

 

Rachel Reeves

 

Cathy Jamieson

 

Catherine McKinnell

 

Chris Leslie

 

Not called  44

 

Schedule  8,  page  270,  line  37,  leave out ‘£5 million’ and insert ‘£10 million’.


 
 

Public Bill Committee Proceedings: 14 June 2012            

21

 

Finance Bill, continued

 
 

David Gauke

 

Agreed to  169

 

Schedule  8,  page  271,  line  30,  leave out ‘in consequence’ and insert ‘, nor any

 

money raised by the issue employed, in consequence or anticipation’.

 

David Gauke

 

Agreed to  170

 

Schedule  8,  page  271,  line  33,  leave out from beginning to end of line 1 on page

 

272 and insert—

 

‘(a)    

the main purpose, or one of the main purposes, of the arrangements is to

 

secure—

 

(i)    

that a qualifying activity is or will be carried on by the relevant

 

company or a qualifying 90% subsidiary of that company, and

 

(ii)    

that shares or securities issued by the relevant company may be

 

comprised in any company’s qualifying holdings or that one or

 

more persons may obtain relevant tax relief in respect of such

 

shares which raise money for the purposes of that qualifying

 

activity,

 

(aa)    

that qualifying activity is the relevant qualifying activity by reference to

 

which the requirement in section 293(1)(b) (money raised to be

 

employed within two years for relevant qualifying activity) is met in

 

relation to the relevant holding,’.

 

David Gauke

 

Agreed to  171

 

Schedule  8,  page  272,  line  7,  leave out from ‘is’ to end of line 8 and insert ‘, in the

 

course of the arrangements, paid to or for the benefit of a relevant person or relevant

 

persons.’.

 

David Gauke

 

Agreed to  172

 

Schedule  8,  page  272,  line  10,  after ‘that’ insert ‘the whole or greater part of’.

 

David Gauke

 

Agreed to  173

 

Schedule  8,  page  272,  line  11,  leave out ‘business’.

 

David Gauke

 

Agreed to  174

 

Schedule  8,  page  272,  line  12,  leave out from ‘by’ to end of line 13 and insert ‘a

 

relevant person or relevant persons.’.

 

David Gauke

 

Agreed to  175

 

Schedule  8,  page  272,  line  26,  at end insert—

 

‘“relevant person” means a person who is a party to the arrangements or a

 

person connected with such a party;’.

 

David Gauke

 

Agreed to  176

 

Schedule  8,  page  272,  leave out lines 27 to 31 and insert—

 

‘“qualifying activity” has the same meaning as in section 291;”.


 
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Revised 15 June 2012