Session 2012 - 13
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Other Bills before Parliament


 
 

87

 

House of Commons

 
 

Thursday 6 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].

 


 

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                     

90

 

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

 

Parliamentary Star - white    

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                     

91

 

Finance Bill, continued

 
 

Mr David Gauke

 

61

 

Parliamentary Star - white    

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

 

‘during that period’.

 

Mr David Gauke

 

62

 

Parliamentary Star - white    

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

 

Parliamentary Star - white    

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

 

Parliamentary Star - white    

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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