Session 2012 - 13
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Other Bills before Parliament


 
 

71

 

House of Commons

 
 

Tuesday 4 June 2013

 

Public Bill Committee

 

New Amendments handed in are marked thus Parliamentary Star

 

Parliamentary Star - whiteAmendments 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


 
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Revised 4 June 2013