Session 2012 - 13
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Public Bill Committee Proceedings: 19 June 2012            

50

 

Finance Bill, continued

 
 

Ed Balls

 

Rachel Reeves

 

Cathy Jamieson

 

Catherine McKinnell

 

Chris Leslie

 

Negatived on division  190

 

Schedule  20,  page  522,  line  2,  at end insert—

 

‘(3)    

HM Treasury and HM Revenue and Customs shall publish an assessment of the

 

implementation and impact of the changes made in this schedule each year from

 

commencement for the first three years of operation, including—

 

(a)    

the impact of the changes on developing countries and whether any

 

further aid or technical assistance needs to be provided to those countries

 

to safeguard their tax revenues;

 

(b)    

the cost of the changes to the Exchequer and whether they are consistent

 

with HM Treasury forecasts;

 

(c)    

whether the rules operate as expected and provide certainty to

 

companies.’.

 

David Gauke

 

Agreed to  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.’.


 
 

Public Bill Committee Proceedings: 19 June 2012            

51

 

Finance Bill, continued

 
 

David Gauke

 

Agreed to  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’.

 

David Gauke

 

Agreed to  117

 

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

 

TIOPA 2010’.

 

Schedule, as amended, Agreed to.

 

Clauses 181 to 183 Agreed to.

 

Schedule 21 Agreed to.

 

Clause 184 Agreed to.

 

Schedule 22 Agreed to.

 

Clause 185 Agreed to.

 


 

Graeme Morrice

 

Grahame M. Morris

 

Withdrawn  191

 

Clause  186,  page  107,  line  9,  at end insert—

 

‘(3A)    

The Chancellor of the Exchequer shall review the wider economic impact of the

 

duty increases imposed by subsection 3 on the beer and pub industry, and

 

consumers, and shall lay a report of his review in the House of Commons

 

Library.’.

 

Clause Agreed to.

 

Clauses 187, 188 and 190 Agreed to.

 


 

Graeme Morrice

 

Grahame M. Morris

 

Not called  193

 

Schedule  24,  page  542,  line  11,  leave out ‘20%’ and insert ‘15%’.


 
 

Public Bill Committee Proceedings: 19 June 2012            

52

 

Finance Bill, continued

 
 

Graeme Morrice

 

Grahame M. Morris

 

Not called  192

 

Schedule  24,  page  542,  line  34,  at end insert—

 

‘Allowable deductions from duty payable

 

11A(1)  

A taxable person shall be entitled to reduce the amount of duty payable in an

 

accounting period by an amount equal to the irrecoverable VAT brought about

 

solely as a result of changes to the VAT liability of income from Machine

 

Games resulting from the introduction of the duty (“Newly Irrecoverable

 

VAT”), to be calculated as follows:

 

      (2)  

“Newly Irrecoverable VAT” for the purposes of sub-paragraph (1) will be

 

calculated as follows:

 

(a)    

at the time the taxable person carries out the “longer period

 

adjustment” calculations and capital goods scheme adjustments for the

 

purposes of Part 14 to 16 of the VAT Regulations 1995, he shall, in

 

accordance with the method in place under those Parts, for that longer

 

period, identify—

 

(i)    

the amount of irrecoverable VAT incurred during that longer

 

period based on income from Machine Games being exempt

 

for VAT purposes; and

 

(ii)    

the amount of irrecoverable VAT that would be incurred had

 

income from Machine Games remained liable to VAT at the

 

standard rate;

 

(b)    

Newly Irrecoverable VAT will be calculated by subtracting the

 

amount under (ii) above from (i) above.

 

      (3)  

On each duty return in the year following the VAT longer period adjustment,

 

a taxable person shall be entitled to provisionally reduce the amount of duty

 

payable by an amount equal to one quarter of the amount calculated under sub-

 

paragraph (2) above.

 

      (4)  

At the end of the year in which provisional quarterly reductions have been

 

carried out under sub-paragraph (3) above, a taxable person shall carry out the

 

calculation under sub-paragraph (2) above and compare it to the total provision

 

reduction for the year. Any difference shall serve to increase, or decrease, the

 

duty due in the accounting period in which the calculation is made.

 

      (5)  

Should the reduction of the amount of duty payable arising from Newly

 

Irrecoverable VAT result in a negative amount of duty in any accounting

 

period the provisions of paragraph (10) (negative amounts of duty) shall apply.

 

      (6)  

For the purposes of this paragraph, any references to terms imported from Part

 

14 to 16 of the VAT Regulations 1995 shall have the same meaning as defined

 

in those Regulations.’.

 

Graeme Morrice

 

Grahame M. Morris

 

Not selected  194

 

Schedule  24,  page  557,  line  16,  at end insert—

 

‘49A      

In the Machine Games Duty (Exemptions) Order 2012, after Article 5, insert

 

the following—

 

“Skill with prize machines

 

6.1      

Playing a skill with prize game is to be a specified circumstance.


 
 

Public Bill Committee Proceedings: 19 June 2012            

53

 

Finance Bill, continued

 
 

6.2      

A game shall be a skill with prize game if it is not a game of chance

 

in accordance with Section 6(2) of the Gambling Act 2005.”’.

 

Schedule Agreed to.

 

Clauses 191 to 193 Agreed to.

 

Schedule 25 Agreed to.

 

Clause 194 Agreed to.

 

[Adjourned until Thursday at 9.00 am


 
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