Session 2012 - 13
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Notices of Amendments: 15 April 2013                  

1162

 

Finance (N, continued

 
 

(f)    

evidence as to the intent of the parties, irrespective of the outcome of the

 

arrangements.’.

 


 

Application for clearance of transactions

 

Mr Michael Meacher

 

Caroline Lucas

 

Michael Connarty

 

Mr Frank Field

 

Kelvin Hopkins

 

NC13

 

Parliamentary Star    

To move the following Clause:—

 

‘(1)    

A person may provide the Commissioners for Her Majesty’s Revenue and

 

Customs with particulars of a transaction or transactions effected or to be effected

 

by the person in order to obtain a notification about them under this section.

 

(2)    

If the Commissioners consider that the particulars, or any further information

 

provided under this subsection, are insufficient for the purposes of this section,

 

they must notify the person what further information they require for those

 

purposes within 30 days of receiving the particulars or further information.

 

(3)    

If any such further information is not provided within 30 days from the

 

notification, or such further time as the Commissioners allow, they need not

 

proceed further under this section.

 

(4)    

The Commissioners must notify the person whether they are satisfied that the

 

transaction or transactions, as described in the particulars, were or will be such

 

that no counteraction notice ought to be served about the transaction or

 

transactions under the provisions of section [Counteracting the tax advantages]

 

of this Act.

 

(5)    

The notification must be given within 30 days of receipt of the particulars, or, if

 

subsection (2) applies, of all further information required but subject to the

 

conditions of subsection (6) having been met.

 

(6)    

The person making application for a notification under this section shall

 

specify—

 

(a)    

the amount of tax that they estimate might be due as a result of making

 

the arrangement, or

 

(b)    

if that arrangement shall be continuing within the two-year period

 

following its commencement, and

 

(c)    

shall pay a fee in respect of the notification to be supplied under section

 

(4) prior to that notification being supplied of not less than—

 

(i)    

£1,000, or

 

(ii)    

five per cent of the estimated tax due as a result of making this

 

arrangement, whichever shall be the greater,

 

    

such charge to be subject to value added tax and to be due whether or not

 

the requested notification can be supplied or not,

 

(d)    

HMRC shall have power to substitute such other sum that it thinks

 

appropriate for those sums notified under subsections (a) and (b) if it

 

thinks those estimates unrealistic,

 

(e)    

if HMRC makes use of the powers in subsection (d) it shall notify the

 

person within 30 days of its intent to do so and provide its estimate of the

 

tax that might be due under the arrangement with reasons stated, with the


 
 

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Finance (N, continued

 
 

person having 30 days thereafter to appeal against the same or let their

 

applications lapse.

 

(f)    

HMRC may publish its notifications issued under this section so long as

 

the taxpayer’s identity is anonymised.’.

 


 

Effect of clearance notification under section [Application for clearance of transactions]

 

Mr Michael Meacher

 

Caroline Lucas

 

Michael Connarty

 

Mr Frank Field

 

Kelvin Hopkins

 

NC14

 

Parliamentary Star    

To move the following Clause:—

 

‘(1)    

This section applies if the Commissioners for Her Majesty’s Revenue and

 

Customs notify a person under section [Application for clearance of

 

transactions] that they are satisfied that a transaction or transactions, as

 

described in the particulars provided under that section, were or will be such that

 

no counteraction notice under the provisions of section [Counteracting tax

 

advantages] of this Act ought to be served about the transaction or transactions.

 

(2)    

No such notice may then be served on the person in respect of the transaction or

 

transactions.

 

(3)    

But the notification does not prevent such a notice being served on the person in

 

respect of transactions including not only the ones to which the notification

 

relates but also others.

 

(4)    

The notification is void if the particulars and any further information given under

 

section [Application for clearance of transactions] about the transaction or

 

transactions do not fully and accurately disclose all facts and considerations

 

which are material for the purposes of that section.’.

 


 

Power to obtain information

 

Mr Michael Meacher

 

Caroline Lucas

 

Michael Connarty

 

Mr Frank Field

 

Kelvin Hopkins

 

NC15

 

Parliamentary Star    

To move the following Clause:—

 

‘(1)    

This section applies if it appears to an officer of Her Majesty’s Revenue and

 

Customs that a person may be a person to whom section [Counteracting tax

 

advantages] applies in respect of one or more transactions.

 

(2)    

The officer may serve a notice on the person requiring the person to give the

 

officer information in the person’s possession about the transaction or, if there are

 

two or more, about any of them.


 
 

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(3)    

That information must be information about matters that are relevant to the

 

question whether a counteraction notice should be served on the person.

 

(4)    

Those matters must be specified in the notice under subsection (2).

 

(5)    

That notice must require the information to be given within such period as is

 

specified in it.

 

(6)    

That period must be at least 30 days.’.

 


 

Interpretation

 

Mr Michael Meacher

 

Caroline Lucas

 

Michael Connarty

 

Mr Frank Field

 

Kelvin Hopkins

 

NC16

 

Parliamentary Star    

To move the following Clause:—

 

‘In this Part of this Act—

 

“arrangements” includes any agreement, understanding, scheme,

 

transaction or series of transactions (whether or not legally enforceable),

 

“connected” is defined by section 993 of the Income Tax Act 2007,

 

“the general anti-tax avoidance principle” has the meaning given by section

 

[General anti tax-avoidance principle],

 

“HMRC” means Her Majesty’s Revenue and Customs,

 

“notification” has the meaning given by section [Application for clearance

 

of transactions] (1),

 

“tax advantage” has the meaning given by section [Meaning of “tax

 

advantage”],

 

“tax arrangements” has the meaning given by section [Meaning of “tax

 

arrangements”] (1),

 

“tax avoidance” has the meaning given by section [Meaning of “tax

 

avoidance”], and

 

“taxes” has the meaning given to it by section [General anti-tax-avoidance

 

principle] (3).’.

 


 

Nigel Mills

 

11

 

Parliamentary Star    

Clause  203,  page  120,  line  1,  after ‘taxes, insert ‘provided the de minimis test in

 

subsection (4) is satisfied.’.

 

Ed Balls

 

Chris Leslie

 

Catherine McKinnell

 

Cathy Jamieson

 

3

 

Clause  203,  page  120,  line  9,  at end add—


 
 

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‘(4)    

Her Majesty’s Revenue and Customs shall review the possibility of bringing

 

forward measures to work in conjunction with other G8 countries to require

 

multi-national companies to publish a single easily comparable figure for the

 

amount of corporation tax they pay in the UK, and within six months of the

 

passage of this Act, place a copy of the review in the House of Commons Library.

 

(5)    

The Chancellor of the Exchequer shall review the effects of incorporating

 

measures into the general anti-abuse rule to require multi-national companies to

 

publish a single easily comparable figure for the amount of corporation tax they

 

pay in the UK on Treasury tax receipts within six months of the passage of this

 

Act and consult with G8 countries on their effectiveness, and place a copy of the

 

review in the House of Commons Library.’.

 

Ed Balls

 

Cathy Jamieson

 

Chris Leslie

 

Catherine McKinnell

 

6

 

Parliamentary Star    

Clause  203,  page  120,  line  9,  at end add—

 

‘(4)    

The Chancellor shall review the possibility of bringing forward a requirement for

 

UK companies to report their use of tax schemes which have an impact on

 

developing countries, including a review of the possibility of bringing forward

 

proposals to require that when such schemes are identified under those rules, Her

 

Majesty’s Government shall take steps to notify developing countries’ tax

 

authorities and assist in the recovery of that tax. A copy of the report shall be

 

placed in the House of Commons Library within six months of Royal Assent.’.

 

Ed Balls

 

Cathy Jamieson

 

Chris Leslie

 

Catherine McKinnell

 

7

 

Parliamentary Star    

Clause  203,  page  120,  line  9,  at end add—

 

‘(4)    

The Chancellor shall make an assessment of the impact of changes to Controlled

 

Foreign Company Rules in the Finance Act 2012 and as a result of this Part of this

 

Act on the overall tax take of developing countries. A copy of the report shall be

 

placed in the House of Commons Library within six months of Royal Assent.’.

 

Ed Balls

 

Cathy Jamieson

 

Chris Leslie

 

Catherine McKinnell

 

8

 

Parliamentary Star    

Clause  203,  page  120,  line  9,  at end add—

 

‘(4)    

The Chancellor shall provide a report to Parliament within two years of the

 

passing of this Act, as part of a wider post-implementation review, into the scope

 

of GAAR, the application of the double reasonableness test and its deterrent

 

effect.’.

 

Nigel Mills

 

12

 

Parliamentary Star    

Clause  203,  page  120,  line  9,  at end add—

 

‘(4)    

The amount of the tax advantage arising from the tax arrangement must be equal

 

to or exceed the following amount for the relevant tax:

 

(a)    

for income tax the amount is £100,000,


 
 

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(b)    

for corporation tax, including any amount chargeable as if it were

 

corporation tax or treated as if it were corporation tax, the amount is

 

£250,000,

 

(c)    

for capital gains tax the amount is £100,000,

 

(d)    

for petroleum revenue tax the amount is £250,000,

 

(e)    

for inheritance tax the amount is £100,000

 

(f)    

for stamp duty land tax the amount is £40,000,

 

(g)    

for the annual tax on enveloped dwelling the amount is £40,000.

 

(5)    

For the purposes of subsection (4) the amount of the tax advantage shall be the

 

greatest of:

 

(a)    

the total tax advantage for all tax years in which it is reasonable to assume

 

that the tax arrangement was anticipated to be effective at the time the

 

arrangements were entered into;

 

(b)    

the total tax advantage for all tax years that would have arisen from the

 

tax arrangement other than for the provisions of this Part;

 

(c)    

the total tax advantage arising from all tax arrangements of the taxpayer

 

that were anticipated to be effective in the relevant tax year.

 

(6)    

For the purposes of subsection (5) the amount of the tax advantage shall include

 

any tax advantage obtained by the taxpayer or a related party of the taxpayer.’.

 


 

Ed Balls

 

Chris Leslie

 

Catherine McKinnell

 

Cathy Jamieson

 

1

 

Clause  1,  page  1,  line  7,  at end add—

 

‘(1)    

The Chancellor of the Exchequer shall, within three months of the passing of this

 

Act, publish a report on the additional rate of income tax.

 

(2)    

This report shall review the impact upon Exchequer receipts of setting the

 

additional rate to 50 per cent. in tax year 2014-15.

 

(3)    

The report shall review what impact reducing the additional rate for 2013-14 will

 

have on the amount of income tax currently paid by those with taxable incomes of

 

(a)    

over £150,000 per year; and

 

(b)    

over £1,000,000 per year.’.

 

Ed Balls

 

Cathy Jamieson

 

Chris Leslie

 

Catherine McKinnell

 

5

 

Clause  1,  page  1,  line  7,  at end add—

 

‘(2)    

Income tax is charged for the tax year 2013-14, and for that tax year—

 

(a)    

the basic rate is 20%,

 

(b)    

the higher rate is 40%, and

 

(c)    

the additional rate is 50%.

 

(3)    

Income tax is charged for the tax year 2014-15, and for that tax year—

 

(a)    

the basic rate is 20%,

 

(b)    

the higher rate is 40%, and


 
 

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(c)    

the additional rate is 50%.’.

 


 

Ed Balls

 

Cathy Jamieson

 

Chris Leslie

 

Catherine McKinnell

 

9

 

Parliamentary Star    

Clause  16,  page  7,  line  20,  at end add—

 

‘(2)    

The Chancellor of the Exchequer shall assess the possibility of restricting

 

pensions tax relief for people paying the additional rate of income tax and how

 

the revenue raised from this measure could be used to guarantee jobs for adults

 

who are out of work for 24 months or more, and shall, within three months of the

 

passing of this Act, place a copy of the report in the House of Commons Library.’.

 


 

New Clauses and new Schedules relating to value added tax or the

 

subject matter of Clause 3

 

Rate of VAT

 

Ed Balls

 

Cathy Jamieson

 

Chris Leslie

 

Catherine McKinnell

 

NC2

 

To move the following Clause:—

 

‘(1)    

In section 2(1) of the Value Added Tax Act 1994 (Rate of VAT) for “20 per cent”

 

substitute “17.5 per cent”.

 

(2)    

Subsection (1) shall have effect from Royal Assent and shall expire at such time

 

as the Government presents to Parliament a report stating that the UK economy

 

has returned to strong growth.’.

 


 

Ed Balls

 

Chris Leslie

 

Catherine McKinnell

 

Cathy Jamieson

 

4

 

Clause  3,  page  2,  line  11,  at end add—

 

‘(3)    

The Chancellor of the Exchequer shall lay before Parliament proposals for an

 

income tax rate of 10 per cent on income above the personal allowance, with the

 

range of income covered by the 10 per cent rate being determined by the

 

Exchequer yield of a mansion tax and so that the full benefit of the 10 per cent

 

rate goes to basic rate taxpayers.’.


 
 

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Finance (N, continued

 
 

Ed Balls

 

Cathy Jamieson

 

Chris Leslie

 

Catherine McKinnell

 

10

 

Parliamentary Star    

Clause  3,  page  2,  line  11,  at end add—

 

‘(3)    

The Chancellor shall produce a report on subsection (1) which shall include an

 

assessment of the impact of changes to taxation on the living standards of basic

 

rate taxpayers which shall be placed in the House of Commons Library within

 

three months of Royal Assent.’.

 


 

New Clauses and New Schedules relating to air Passenger Duty

 

Long haul rates of duty (Scotland)

 

Mr Angus Brendan MacNeil

 

Angus Robertson

 

Stewart Hosie

 

Mr Mike Weir

 

Pete Wishart

 

Dr Eilidh Whiteford

 

NC3

 

To move the following Clause:—

 

‘After section 30A of the Finance act 1994 there shall be inserted—

 

“30B  

Scotland long haul rates of duty

 

(1)    

This section applies to the carriage of a chargeable passenger if—

 

(a)    

the carriage begins on or after the relevant day,

 

(b)    

the only flight, or the first flight, of the passenger’s journey

 

begins at an airport or aerodrome in Scotland,

 

(c)    

the passenger’s journey does not end at an airport or aerodrome

 

in the United Kingdom or a territory specified in Part 1 of

 

Schedule 5A, and

 

(d)    

if the passenger’s journey has more than one flight, the first flight

 

is not followed by a connected flight beginning at an airport or

 

aerodrome in the United Kingdom or a territory specified in Part

 

1 of Schedule 5a.

 

(2)    

Air passenger duty is chargeable on the carriage of the chargeable

 

passenger at the rate determined as follows.

 

(3)    

If the passenger’s journey ends at an airport or aerodrome in a territory

 

specified in Part 2 of Schedule 5A—

 

(a)    

if the passenger’s agreement for carriage provides for standard

 

class travel in relation to every flight on the passenger’s journey,

 

the rate is the rate set by an Act of the Scottish Parliament for the

 

purposes of this paragraph, and

 

(b)    

in any other case the rate if the rate set by an Act of the Scottish

 

Parliament for the purposes of this paragraph.


 
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Revised 16 April 2013