House of Commons Public Bill Committee Proceedings

Session 2012 - 13
Internet Publications
Other Bills before Parliament

Report Stage Proceedings: 3 July 2012
66

Finance Bill, continued

applies, consent for the approved alterations by a competent

body with the authority to approve alterations to such buildings,

or

(b)
in any other case, consent under any provision of—

(i)
Part 1 of the Planning (Listed Buildings and

Conservation Areas) Act 1990,

(ii)
Part 1 of the Planning (Listed Buildings and

Conservation Areas) (Scotland) Act 1997,

(iii)
Part 5 of the Planning (Northern Ireland) Order 1991,

(iv)
Part 1 of the Ancient Monuments and Archaeological

Areas Act 1979, or

(v)
Part 2 of the Historic Monuments and Archaeological

Objects (Northern Ireland) Order 1995.

    (10)
The Notes of Group 6 apply in relation to this paragraph as they apply in

relation to that Group, except that in applying Notes (9), (10) and (11),

references to item 2 are to be read as references to sub-paragraph (4) of this

paragraph.’.

Mr Chancellor of the Exchequer

Agreed to  18

Page  589,  line  16  [Schedule  26],  leave out sub-paragraph (1).

Mr Chancellor of the Exchequer

Agreed to  19

Page  589,  line  24  [Schedule  26],  after ‘a supply’ insert ‘of a description specified in

paragraph 3’.

Mr Chancellor of the Exchequer

Agreed to  20

Page  589,  line  28  [Schedule  26],  leave out ‘the order’ and insert ‘the amendments

made by Schedule (Categorisation of supplies)’.

Report Stage Proceedings: 3 July 2012
67

Finance Bill, continued

New Clauses and New Schedules relating to the taxation of banks and

employees of banks

Bank bonus tax

Ed Balls

Rachel Reeves

Catherine McKinnell

Chris Leslie

Cathy Jamieson

Negatived on division  NC13

To move the following Clause:—

‘The Chancellor of the Exchequer shall review how a bank bonus tax could be

repeated and place a report in the library of the House of Commons by 1

September 2012 on how the revenue raised could be invested in a Real Jobs

Guarantee to create new jobs and tackle unemployment.’.

REMAINING NEW CLAUSES AND AMENDMENTS TO CLAUSES

Pension death benefits in higher education

Mr Frank Field

Not called  NC2

To move the following Clause:—

‘(1)
Paragraph 15 of Schedule 28 to FA 2004 (meaning of “dependant”) is amended

as follows.

(2)
In sub-paragraph (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”.’.

Bingo duty

Philip Davies

Not called  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”.

Report Stage Proceedings: 3 July 2012
68

Finance Bill, continued

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

periods beginning on or after 30 April 2012.’.

Consultation on effect of Act and future Finance Bills on certain developing countries

Stephen Williams

Sheila Gilmore

Mark Durkan

Not called  NC6

To move the following Clause:—

‘With effect from the passing of this Act, HM Treasury shall consult the

Department for International Development on the impact of this Act and the

proposals in each succeeding Finance Bill on developing countries to which the

Department provides aid, and report to Parliament annually on the results of the

consultations.’.

General anti-tax avoidance principle

Mr Michael Meacher

Mark Durkan

Not called  NC7

To move the following Clause:—

‘That within two months of the granting of Royal assent to this Act, HM Revenue

and Customs shall report on progress on its consultation on its proposed general

anti-abuse rule.’.

Report Stage Proceedings: 3 July 2012
69

Finance Bill, continued

Impact of Budget measures on children, families and incentives to work

Ed Balls

Rachel Reeves

Catherine McKinnell

Chris Leslie

Cathy Jamieson

Mark Durkan

Not called  NC14

To move the following Clause:—

‘The Chancellor of the Exchequer shall review the impact of Budget measures

since 2010 on children, families and incentives to work, and place a copy of the

report in the Library of the House of Commons.’.

Mr Chancellor of the Exchequer

Agreed to  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

Agreed to  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.”.’.

Report Stage Proceedings: 3 July 2012
70

Finance Bill, continued

Mr Chancellor of the Exchequer

Agreed to  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),

(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

Agreed to  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

Report Stage Proceedings: 3 July 2012
71

Finance Bill, continued

(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—

“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

Agreed to  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).”.’.

Report Stage Proceedings: 3 July 2012
72

Finance Bill, continued

Mr Chancellor of the Exchequer

Agreed to  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.’.

REMAINING NEW SCHEDULES AND AMENDMENTS TO SCHEDULES

Mr Chancellor of the Exchequer

Agreed to  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).”.’.



© Parliamentary copyright	Revised 4 July 2012