House of Commons Amendments

Session 2012 - 13
Internet Publications
Other Bills before Parliament

159

House of Commons

Notices of Amendments

given on

Wednesday 27 June 2012

For other Amendment(s) see the following page(s) of Supplement to Votes:

157

Consideration of Bill

Finance Bill, As Amended

Mr Frank Field

Mr John McDonnell

Mr David Blunkett

3

Page  1,  line  10  [Clause  1],  at end insert—

‘(1A)
Any public sector employee whose earned income did not exceed £21,000 in the

tax years 2010-11 or 2011-12 and did not receive a £250 pay increase in either or

both of those tax years shall be entitled to a £250 reduction in tax liability for each

tax year.’.

Pension death benefits in higher education

Mr Frank Field

NC2

To move the following Clause:—

‘(1)
Section 15 of FA 2004 (meaning of “dependant”) is amended as follows.

(2)
In subsection (2)(a) at end insert—


“has reached that age and is studying full-time for a higher education

qualification in medicine, veterinary science or architecture or such other

vocational courses as the Treasury may prescribe by regulations, or”.’.

Sixth form colleges (exemption from VAT)

Mr Frank Field

NC3

To move the following Clause:—

‘In Schedule 9 to the Value Added Tax Act 1994 (Exemptions), in Group 6

(Education), the following shall be added at the end of Note (1) (description of

eligible body)—

Notices of Amendments: 27 June 2012
160

Finance Bill, continued

“(g)
a sixth form college”.’.

Mr Chancellor of the Exchequer

4

Page  550,  line  41  [Schedule  23],  leave out from ‘subsection’ to end of line 8 on

page 551 and insert ‘(5) insert—

“(5A)
In relation to the carriage of a chargeable passenger on an aircraft to

which section 30(4F) applies—

(a)
if the rate which (apart from this subsection) would apply is

the rate set for the purposes of subsection (3)(a) or (b), the

following rate is to apply instead—

(i)
the rate set by an Act of the Northern Ireland

Assembly for the purposes of this paragraph, or

(ii)
if no rate is so set for the purposes of this paragraph,

a rate equal to twice the rate set for the purposes of

subsection (3)(b),

(b)
if the rate which (apart from this subsection) would apply is

the rate set for the purposes of subsection (4)(a) or (b), the

following rate is to apply instead—

(i)
the rate set by an Act of the Northern Ireland

Assembly for the purposes of this paragraph, or

(ii)
if no rate is so set for the purposes of this paragraph,

a rate equal to twice the rate set for the purposes of

subsection (4)(b), and

(c)
if the rate which (apart from this subsection) would apply is

the rate set for the purposes of subsection (5)(a) or (b), the

following rate is to apply instead—

(i)
the rate set by an Act of the Northern Ireland

Assembly for the purposes of this paragraph, or

(ii)
if no rate is so set for the purposes of this paragraph,

a rate equal to twice the rate set for the purposes of

subsection (5)(b).”.’.

Face-value vouchers

Mr Chancellor of the Exchequer

NC4

To move the following Clause:—

‘(1)
In Schedule 10A to VATA 1994 (face-value vouchers), after paragraph 7 insert—

“Exclusion of single purpose vouchers

7A
Paragraphs 2 to 4, 6 and 7 do not apply in relation to the issue, or any

subsequent supply, of a face-value voucher that represents a right to

receive goods or services of one type which are subject to a single rate

of VAT.”

(2)
The amendment made by subsection (1) has effect in relation to supplies of face-

value vouchers issued on or after 10 May 2012.

(3)
Subsection (4) applies where—

(a)
a face-value voucher issued before 10 May 2012 is used on or after that

date to obtain goods or services,

Notices of Amendments: 27 June 2012
161

Finance Bill, continued

(b)
paragraphs 2 to 4, 6 and 7 of Schedule 10A to VATA 1994 would not

have applied in relation to the issue, or any subsequent supply, of the

voucher because of paragraph 7A of that Schedule if the voucher had

been issued on or after 10 May 2012, and

(c)
VAT is not payable under the law of another member State on the supply

of the voucher to the user.

(4)
The use of the voucher is to be treated for the purposes of VATA 1994 as a supply

of the goods or services by the person from whom they are obtained to the user of

the voucher.’.

Mr Chancellor of the Exchequer

5

Page  120,  line  19  [Clause  208],  at end insert—

‘( )
in subsection (1), after paragraph (c) insert “or,

(d)
in a case where paragraphs (a), (b) and (d) of section

74A(1) are satisfied—

(i)
it is a reversionary interest, in the relevant

settled property, to which the individual is

beneficially entitled, and

(ii)
the individual has or is able to acquire (directly

or indirectly) another interest in that relevant

settled property.


Terms used in paragraph (d) have the same meaning as in section

74A.”.’.

Mr Chancellor of the Exchequer

6

Page  120,  line  23  [Clause  208],  leave out from beginning to end of line 30 on page

121 and insert—

‘“(3D)
Where paragraphs (a) to (d) of section 74A(1) are satisfied, subsection

(3)(a) above does not apply at the time they are first satisfied or any later

time to make the relevant settled property (within the meaning of section

74A) excluded property.”.’.

Mr Chancellor of the Exchequer

7

Page  121,  line  32  [Clause  208],  leave out from beginning to end of line 7 on page

122 and insert—

‘“74A
Arrangements involving acquisition of interest in settled property etc

(1)
This section applies where—

(a)
one or more persons enter into arrangements,

(b)
in the course of the arrangements—

(i)
an individual (“the individual”) domiciled in the United

Kingdom acquires or becomes able to acquire (directly

or indirectly) an interest in property comprised in a

settlement (“the relevant settled property”), and

(ii)
consideration in money or money’s worth is given by

one or more of the persons mentioned in paragraph (a)

(whether or not in connection with the acquisition of that

interest or the individual becoming able to acquire it),

Notices of Amendments: 27 June 2012
162

Finance Bill, continued

(c)
there is a relevant reduction in the value of the individual’s

estate, and

(d)
condition A or condition B is met.

(2)
Condition A is that—

(a)
the settlor was not domiciled in the United Kingdom at the time

the settlement was made, and

(b)
the relevant settled property is situated outside the United

Kingdom at any time during the course of the arrangements.

(3)
Condition B is that—

(a)
the settlor was not an individual or a close company at the time

the settlement was made, and

(b)
condition A is not met.’.

Mr Chancellor of the Exchequer

8

Page  123  [Clause  208],  leave out line 15 and insert—

‘74C
Interpretation of sections 74A and 74B

(1)
Subsections (2) to (4) have effect for the purposes of sections 74A and

74B.

(2)
An individual has an interest in property comprised in a settlement if—

(a)
the property, or any derived property, is or will or may become

payable to, or applicable for the benefit of—

(i)
the individual,

(ii)
the individual’s spouse or civil partner, or

(iii)
a close company in relation to which the individual or

the individual’s spouse or civil partner is a participator

or a company which is a 51% subsidiary of such a close

company,


in any circumstances whatsoever, or

(b)
a person within sub-paragraph (i), (ii) or (iii) of paragraph (a)

enjoys a benefit deriving (directly or indirectly) from the

property or any derived property.

(3)
A “relevant reduction” in the value of the individual’s estate occurs—

(a)
if and when the value of the individual’s estate first becomes less

than it would have been in the absence of the arrangements, and

(b)
on each subsequent occasion when the value of that estate

becomes less than it would have been in the absence of the

arrangements and that difference in value is greater than the sum

of any previous relevant reductions.

(4)
The amount of a relevant reduction is—

(a)
in the case of a reduction within subsection (3)(a), the difference

between the value of the estate and its value in the absence of the

arrangements, and

(b)
in the case of a reduction within subsection (3)(b), the amount by

which the difference in value mentioned in that provision

exceeds the sum of any previous relevant reductions.

(5)
In sections 74A and 74B and this section—

Notices of Amendments: 27 June 2012
163

Finance Bill, continued

“arrangements” includes any scheme, transaction or series of transactions,

agreement or understanding, whether or not legally enforceable, and any

associated operations;

“close company” has the meaning given in section 102;

“derived property”, in relation to any property, means—

(a)
income from that property,

(b)
property directly or indirectly representing—

(i)
proceeds of that property, or

(ii)
proceeds of income from that property, or

(c)
income from property which is derived property by virtue of

paragraph (b);

“operation” includes an omission;

“participator” has the meaning given in section 102;

“the relevant time” means—

(d)
the time the relevant reduction occurs, or

(e)
if later, the time section 74A first applied;

“51% subsidiary” has the same meaning as in the Corporation Tax Acts (see

Chapter 3 of Part 24 of the Corporation Tax Act 2010).”.’.

Mr Chancellor of the Exchequer

9

Page  123  [Clause  208],  leave out lines to 17 to 22 and insert—

‘“(4A)
Where—

(a)
a charge to tax arises under or by virtue of section 74A, or

(b)
in a case where paragraphs (a) to (d) of section 74A are satisfied, a charge

to tax arises under section 64 or 65 in respect of the relevant settled

property (within the meaning of section 74A),


subsection (1) of this section has effect as if the persons listed in that subsection

included the individual mentioned in section 74A(1)(b)(i).”.’.

Mr Chancellor of the Exchequer

10

Page  123,  line  23  [Clause  208],  leave out subsections (5) and (6) and insert—

‘(5)
The amendments made by this section are treated as having come into force on

20 June 2012 and have effect in relation to arrangements entered into on or after

that day.’.

Bingo duty

Philip Davies

NC5

To move the following Clause:—

‘(1)
BGDA 1981 is amended as follows.

(2)
In section 17(1)(b) of BGDA 1981 (bingo duty chargeable at 20 per cent of bingo

promotion profits), for “20” substitute “15”.

(3)
The amendment made by subsection (2) has effect in relation to accounting

periods beginning on or after 30 April 2012.’.



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