House of Commons Amendments

Session 2012 - 13
Internet Publications
Other Bills before Parliament

71

House of Commons

Tuesday 4 June 2013

Public Bill Committee

New Amendments handed in are marked thus

Amendments which will comply with the required notice period at their next appearance

Finance Bill

(Except Clauses 1, 3, 16, 183, 184 and 200 to 212; Schedules 3 and 41; any new Clauses, and

any new Schedules, first appearing on the Order Paper not later than Tuesday 16 April 2013

and relating to tax measures concerning housing; and any new Clauses, and any new

Schedules, relating to value added tax or the bank levy or air passenger duty or the subject

matter of Clauses 1 and 16 and Schedule 3 or the subject matter of Clause 3 or the subject

matter of Clauses 203 to 212 and Schedule 41)

Note

The Amendments have been arranged in accordance with the Order of the

Committee [23 April 2013].

Mr David Gauke

23

Schedule  14,  page  246,  line  41,  at end insert—


‘If the amount remaining after step 1 is greater than the net value of the set-off

amount (see subsection (2A)), that amount is to be reduced to the net value of the

set-off amount.


For provision about the treatment of the amount deducted under this step from the

amount remaining after step 1, see section 104NA.


Step 3’.

Mr David Gauke

24

Schedule  14,  page  247,  line  1,  leave out ‘step 1’ and insert ‘step 2’.

Mr David Gauke

25

Schedule  14,  page  247,  line  6,  leave out from ‘(b)’ to ‘is’ in line 7 and insert ‘the

amount deducted under paragraph (a) from the amount remaining after step 2’.

Public Bill Committee: 4 June 2013
72

Finance Bill, continued

Mr David Gauke

26

Schedule  14,  page  247,  line  11,  leave out ‘step 3’ and insert ‘step 4’.

Mr David Gauke

27

Schedule  14,  page  247,  line  12,  leave out ‘Step 3’ and insert ‘Step 4’.

Mr David Gauke

28

Schedule  14,  page  247,  line  13,  leave out ‘step 2’ and insert ‘step 3’.

Mr David Gauke

29

Schedule  14,  page  247,  line  16,  leave out ‘step 4’ and insert ‘step 5’.

Mr David Gauke

30

Schedule  14,  page  247,  line  17,  leave out ‘Step 4’ and insert ‘Step 5’.

Mr David Gauke

31

Schedule  14,  page  247,  line  19,  leave out ‘step 3’ and insert ‘step 4’.

Mr David Gauke

32

Schedule  14,  page  247,  line  22,  leave out ‘step 5’ and insert ‘step 6’.

Mr David Gauke

33

Schedule  14,  page  247,  leave out lines 23 to 36.

Mr David Gauke

34

Schedule  14,  page  247,  line  46,  at end insert—

‘(2A)
To determine the net value of the set-off amount for the purposes of step 2 in

subsection (2), deduct from the set-off amount amount A and, in the case of a ring

fence trade, amount B.


Amount A is the amount equal to the corporation tax that would be chargeable on

the set-off amount if—

(a)
it did not include any amount treated as an amount of R&D expenditure

credit for the accounting period by virtue of step 3 in subsection (2), and

(b)
it was an amount of profits (or in the case of a ring fence trade, ring fence

profits) of the company for the accounting period and corporation tax on

such profits was chargeable at the main rate.


Amount B is the amount equal to the supplementary charge that would be

chargeable on the set-off amount if—

(a)
it did not include any amount treated as an amount of R&D expenditure

credit for the accounting period by virtue of step 3 in subsection (2), and

(b)
it was an amount of adjusted ring fence profits for the accounting

period.’.

Public Bill Committee: 4 June 2013
73

Finance Bill, continued

Mr David Gauke

35

Schedule  14,  page  248,  line  12,  at end insert—

‘104NA
Amounts deducted by way of tax adjustment

(1)
This section applies if—

(a)
a company is entitled to an R&D expenditure credit for an

accounting period under this Chapter, and

(b)
the amount of the set-off amount remaining after step 1 in

section 104N(2) is greater than the net value of the set-off

amount.

(2)
An amount equal to the difference between—

(a)
the amount remaining after step 1 in section 104N(2), and

(b)
the net value of the set-off amount,


(“the step 2 amount”) is to be applied in discharging any liability of the

company to pay corporation tax for any subsequent accounting period.


This is subject to subsection (3).

(3)
If the company is a member of a group, it may surrender the whole or

any part of the step 2 amount to any other member of the group (the

“relevant group member”).


In such a case, section 104Q(3) applies to the amount surrendered as

it applies to an amount of R&D expenditure credit surrendered under

step 5 in section 104N(2).

(4)
If any of the amount surrendered under subsection (3) is remaining

after the operation of step 3 in section 104Q(3), it is to be treated for

the purposes of this section as if it had not been surrendered to the

relevant group member.

(5)
Any amounts to be applied under subsection (2) or (3) in discharging

any liability of a company to pay corporation tax for an accounting

period are to be so applied before any amounts that may be so applied

under step 1, 4 or 5 in section 104N(2).

(6)
The surrender by a company of the whole or any part of the step 2

amount to another company under this section—

(a)
is not to be taken into account in determining the profits or

losses of either company for corporation tax purposes, and

(b)
for corporation tax purposes is not to be regarded as the

making of a distribution.

(7)
Any reference in this section to the set-off amount, or the net value of

the set-off amount, is to be read in accordance with section 104N.’.

Mr David Gauke

36

Schedule  14,  page  249,  line  42,  leave out ‘step 4’ and insert ‘step 5’.

Mr David Gauke

37

Schedule  14,  page  250,  line  21,  leave out ‘step 4’ and insert ‘step 5’.

Public Bill Committee: 4 June 2013
74

Finance Bill, continued

Mr David Gauke

38

Schedule  14,  page  250,  line  27,  leave out from beginning to end of line 10 on page

251.

Mr David Gauke

39

Schedule  16,  page  296,  line  17,  at end insert—

‘( )
may provide for those amendments to be treated as having come into

force on a day earlier than the day on which the order is made or this

Act is passed;’.

Mr David Gauke

40

Schedule  16,  page  296,  line  22,  leave out ‘1 April 2013.’ and insert ‘the day

specified for the purposes of this paragraph in an order made by the Treasury (“the

specified day”).

      ()
An order under sub-paragraph (1) may specify a day earlier than the day on

which the order is made or this Act is passed.’.

Mr David Gauke

41

Schedule  16,  page  296,  line  24,  leave out ‘1 April 2013’ and insert ‘the specified

day’.

Mr David Gauke

42

Schedule  16,  page  296,  line  24,  leave out ‘date’ and insert ‘day’.

Mr David Gauke

43

Schedule  16,  page  296,  line  27,  leave out ‘1 April 2013’ and insert ‘the specified

day’.

Mr David Gauke

44

Schedule  16,  page  296,  line  28,  leave out ‘date’ and insert ‘day’.

Mr David Gauke

45

Schedule  16,  page  296,  line  33,  at end insert—

‘4  (1)
The Treasury may by order make such amendments of this Schedule as are

necessary for the purpose of complying with any undertakings given to the

European Commission, or any conditions imposed by the Commission, in

connection with an application for State aid approval.

      (2)
In this paragraph “State aid approval” means approval that the provision made

by Part 15B of CTA 2009, to the extent that it constitutes the granting of aid to

which any of the provisions of Article 107 or 108 of the Treaty on the

Functioning of the European Union applies, is, or would be, compatible with

the internal market, within the meaning of Article 107 of that Treaty.

Public Bill Committee: 4 June 2013
75

Finance Bill, continued

      (3)
An order under this paragraph may—

(a)
make incidental, supplemental, consequential, transitional or saving

provision, including provision amending Schedule 17;

(b)
contain provision having effect in relation to times before the order is

made or this Act is passed.

      (4)
A statutory instrument that contains (whether alone or with other provisions)

an order under this paragraph may not be made unless a draft of the instrument

has been laid before, and approved by a resolution of, the House of

Commons.’.

Mr David Gauke

46

Schedule  17,  page  307,  line  2,  at end insert—

‘( )
may provide for any of those amendments to be treated as having come

into force on a day earlier than the day on which the order is made or

this Act is passed;’.

Mr David Gauke

47

Schedule  17,  page  307,  line  7,  leave out ‘1 April 2013.’ and insert ‘the relevant

day.

      ()
“The relevant day” is—

(a)
in the case of amendments relating to Part 15A of CTA 2009, 1 April

2013, and

(b)
in the case of amendments relating to Part 15B of that Act, the day

specified by order for the purposes of paragraph 3 of Schedule 16.’.

Mr David Gauke

48

Schedule  17,  page  307,  line  9,  leave out ‘1 April 2013’ and insert ‘the relevant

day’.

Mr David Gauke

49

Schedule  17,  page  307,  line  9,  leave out ‘date’ and insert ‘day’.

Public Bill Committee: 4 June 2013
76

Finance Bill, continued

Ed Balls

Chris Leslie

Cathy Jamieson

Catherine McKinnell

11

Clause  42,  page  20,  line  8,  at end add—

‘(7)
The Treasury shall publish details of changes to tax revenues as a result of

amendments made by this section and of each other change in respect of the

treatment of regulatory capital requirements and tier one capital.’.

Ed Balls

Chris Leslie

Cathy Jamieson

Catherine McKinnell

14

Clause  48,  page  22,  line  33,  at end add—

‘(3)
The Treasury shall publish a review within six months of Royal Assent of the

impact of restricting or reducing exemptions from income tax of employee

contributions to pension schemes at the additional rate. The review shall assess

the impact that alternative uses for revenues currently committed to pensions tax

reliefs and exemptions for the additional rate of income tax could have on job

creation for the long-term unemployed.’.

Ed Balls

Chris Leslie

Cathy Jamieson

Catherine McKinnell

12

Clause  51,  page  24,  line  33,  at end add—

‘(13)
The Chancellor of the Exchequer shall publish a report to Parliament within three

months of Royal Assent of this Act on the impact of the abolition of contracting

out on lower earners, women born between 1951 and 1953, and individuals

without a continuous 35 years of employment.’.

Ed Balls

Chris Leslie

Cathy Jamieson

Catherine McKinnell

13

Clause  51,  page  24,  line  33,  at end add—

‘(13)
The Chancellor of the Exchequer shall publish an impact assessment of the

Single-Tier Pension proposals taking account of the implications of the changed

implementation timetable announced in the Budget Statement of March 2013 for

individuals, the pensions industry and employers, and place a copy of the

Assessment in the House of Commons Library.’.

Public Bill Committee: 4 June 2013
77

Finance Bill, continued

Mr David Gauke

56

Clause  54,  page  27,  line  5,  at end insert ‘and provision for an exemption from

income tax in connection with advice relating to proposed employee shareholder

agreements.’

Ed Balls

Cathy Jamieson

Chris Leslie

Catherine McKinnell

51

Clause  54,  page  27,  line  5,  at end add—

‘(2)
The Chancellor of the Exchequer shall review the impact of this section on tax

avoidance activity, and place a copy of this review in the Library of the House of

Commons within six months of Royal Assent.’.

Ed Balls

Cathy Jamieson

Chris Leslie

Catherine McKinnell

53

Clause  54,  page  27,  line  5,  at end add—

‘(2)
The Chancellor of the Exchequer shall review the impact of this section and

section 31 of the Growth and Infrastructure Act 2013, on employment rights and

on tax avoidance activity, and place a copy of this review in the Library of the

House of Commons within six months of Royal Assent.’.

Mr David Gauke

57

Schedule  22,  page  326,  line  31,  leave out ‘(c)’ and insert ‘(d)’.

Mr David Gauke

58

Schedule  22,  page  333,  line  18,  leave out ‘(c)’ and insert ‘(d)’.

Mr David Gauke

59

Schedule  22,  page  339,  line  8,  at end insert—

‘Part 3A

36B
In Chapter 11 of Part 4 of ITEPA (employment income: miscellaneous

exemptions), after section 326A insert—

“Employee shareholder agreements

326B
Advice relating to proposed employee shareholder agreements

(1)
No liability to income tax arises by virtue of—

(a)
the provision of relevant advice by a relevant independent

adviser, or



© Parliamentary copyright	Revised 4 June 2013