House of Commons Amendments

Session 2012 - 13
Internet Publications
Other Bills before Parliament

87

House of Commons

Thursday 6 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].

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.’.

Public Bill Committee: 6 June 2013
88

Finance Bill, continued

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.’.

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.’.

Public Bill Committee: 6 June 2013
89

Finance Bill, continued

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

(b)
the payment or reimbursement, in accordance with section

205A(7) of the Employment Rights Act 1996, of any

reasonable costs incurred in obtaining relevant advice.

(2)
“Relevant advice” means—

(a)
advice, other than tax advice, which is provided for the

purposes of section 205A(6)(a) of that Act (advice as to terms

and effect of employee shareholder agreement), and

(b)
tax advice which is so provided and consists only of an

explanation of the tax effects of employee shareholder

agreements generally.

(3)
In this section—

“employee shareholder agreement” means an agreement by virtue of

which an employee is an employee shareholder (see section

205A(1)(a) to (d) of that Act);

Public Bill Committee: 6 June 2013
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Finance Bill, continued

“relevant independent adviser” has the meaning that it has for the

purposes of section 203(3)(c) of that Act.”’.

Ian Mearns

50

Clause  67,  page  35,  line  37,  leave out subsection (2).

Ed Balls

Cathy Jamieson

Chris Leslie

Catherine McKinnell

54

Clause  67,  page  36,  line  15,  at end add—

‘(9)
The Chancellor of the Exchequer shall review the overall impact of the

Government’s overall budgetary and policy decisions on support for the low

emitting vehicles industry, and the sales of these vehicles, and place a copy of this

review in the Library of the House of Commons within six months of Royal

Assent.’.

Ed Balls

Chris Leslie

Cathy Jamieson

Catherine McKinnell

15

Clause  91,  page  54,  line  2,  at end add—

‘(10)
The Treasury shall within three months of Royal Assent of this Act publish an

assessment of the impact of the charge to tax in this section if subsection (2)(b)

did not apply.’.

John Pugh

20

Clause  177,  page  105,  line  25,  leave out paragraph (b).

Mr David Gauke

60


Clause  192,  page  113,  line  26,  after ‘rights)’ insert—

‘(a)
has effect subject to the amendment in subsection (1A) in relation to

agreements for the grant or assignment of an option that are entered into

during the period beginning with 21 March 2012 and ending immediately

before the day on which this Act is passed, and’.

Public Bill Committee: 6 June 2013
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Finance Bill, continued

Mr David Gauke

61


Clause  192,  page  113,  line  28,  leave out from ‘into’ to end of line 29 and insert

‘during that period’.

Mr David Gauke

62


Clause  192,  page  113,  line  29,  at end insert—

‘(1A)
At the end of subsection (1A) insert “or an agreement for the future grant or

assignment of an option”.’.

Mr David Gauke

63


Clause  192,  page  114,  line  30,  at end insert—

‘(6A)
Subsections (8) to (10) apply where—

(a)
as a result of subsection (1A) of this section, section 45 of FA 2003 does

not apply in relation to a contract of the kind mentioned in subsection

(1)(a) of that section (“the original contract”),

(b)
the original contract was substantially performed or completed (or, in a

case that would have fallen within subsection (5) of that section,

substantially performed or completed so far as relating to the relevant

part of the subject-matter of the original contract) at the same time as, and

in connection with, the substantial performance or completion of an

agreement for the grant or assignment of an option, and

(c)
that time fell before the day on which this Act is passed.’.

Mr David Gauke

64


Clause  192,  page  114,  line  31,  leave out from beginning to ‘apply’ and insert

‘Subsections (8) to (10) also’.

Ed Balls

Cathy Jamieson

Chris Leslie

Catherine McKinnell

52

Clause  225,  page  132,  line  43,  at end add—

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

impact of the recent withdrawal of merchant acquiring facilities by banks from

small enterprises and in particular travel agencies. The review shall specifically

consider—

(a)
the impact on the ability of targeted businesses to continue to trade where

customers are unable to pay securely for transactions by debit or credit

card; and

(b)
the risks of increased levels of activity in the hidden economy and the

potential costs to the Exchequer.’.

Public Bill Committee: 6 June 2013
92

Finance Bill, continued

NEW CLAUSES OTHER THAN THOSE RELATING TO TAX MEASURES CONCERNING

HOUSING AND FIRST APPEARING ON THE ORDER PAPER NOT LATER THAN TUESDAY 16

APRIL OR 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

Contribution allowances: plant and machinery

Mr David Gauke

NC4

To move the following Clause:—

‘(1)
Section 538 of CAA 2001 (contribution allowances: plant and machinery) is

amended as follows.

(2)
In subsection (1), omit the “and” at the end of paragraph (a) and after that

paragraph insert—

“(aa)
C’s contribution is to expenditure on the provision of plant or

machinery, and”.

(3)
In subsection (2)—

(a)
in paragraph (a), for “asset provided by means of C’s contribution”

substitute “plant or machinery”,

(b)
in paragraph (b), for “asset” substitute “plant or machinery”, and

(c)
in paragraph (c)—

(i)
for “asset” substitute “plant or machinery”, and

(ii)
after “times” insert “plant or machinery”.

(4)
The amendments made by this section have effect in relation to expenditure

pooled, and to claims made, on or after 29 May 2013 (“the commencement

date”).

(5)
In relation to such expenditure and claims, when determining for the purposes of

section 536(3)(a) of CAA 2001 whether an allowance can be made under Chapter

2 of Part 11 of that Act, the amendments made by this section are to be treated as

always having had effect.

(6)
Nothing in this section applies to a claim by a person for a contribution allowance

under Part 2 of CAA 2001 in respect of a contribution made before the

commencement date.

(7)
Subsection (8) applies if—

(a)
expenditure which a person has been regarded as having incurred

(despite section 532(1) of CAA 2001) by virtue of section 536(1) has

been pooled by virtue of section 53—

(i)
on or after 1 January 2013 but before the commencement date, or

(ii)
before 1 January 2013 in circumstances where no claim was

made in respect of the expenditure before that date, and

(b)
had the amendments made by this section had effect at the time the

expenditure was incurred, that person would not have been regarded as

having incurred that expenditure (“the relevant expenditure”).

(8)
Part 2 of CAA 2001 has effect as if an event had occurred as a result of which the

person is required to bring into account as a disposal receipt under that Part, for

the chargeable period in which the commencement date falls, a disposal value of

an amount equal to E-A.

(9)
For the purposes of subsection (8)—

E is the amount of the relevant expenditure, and

Public Bill Committee: 6 June 2013
93

Finance Bill, continued

A is the total amount of writing-down allowances made in respect of the

relevant expenditure.

(10)
For the purpose of calculating A, the total amount of writing-down allowances

made in respect of expenditure on an item of plant or machinery is to be

determined as if that item were the only item of plant or machinery in relation to

which Chapter 5 of Part 2 of CAA 2001 had effect.

(11)
The event mentioned in subsection (8) is not to be regarded as a disposal event

for the purposes of section 60(3) of CAA 2001.’.

Abolition of retrospective application of section 58(4) of the Finance Act 2008

Steve Baker

Mr Dominic Raab

NC1

To move the following Clause:—

‘(1)
Section 58 of the Finance Act 2008 (UK residents and foreign partnerships) is

amended as follows.

(2)
In subsection (4), delete “always having had effect” and insert “having effect

from 12 March 2008.”.’.

Stamp duty and stamp duty reserve tax: unit trusts

Ed Balls

Cathy Jamieson

Chris Leslie

Catherine McKinnell

NC2

To move the following Clause:—

‘(1)
The Chancellor shall, within six months of Royal Assent, publish and lay before

the House of Commons a report detailing the distributional impact of any changes

to or abolition of Schedule 19 to the Finance Act 1999.

(2)
No amendment may be made to Schedule 19 to the Finance Act 1999 within two

years of Royal Assent, unless the report set out in subsection (1) has been

published and laid before the House of Commons.’.



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