House of Commons Amendments

Session 2013 - 14
Internet Publications
Other Bills before Parliament

103

House of Commons

Tuesday 11 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

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

Public Bill Committee: 11 June 2013
104

Finance Bill, continued

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.’.

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—

Public Bill Committee: 11 June 2013
105

Finance Bill, continued

“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);

“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.’.

Mr David Gauke

65

Schedule  28,  page  373,  line  9,  leave out from ‘3B’ to ‘loans’ in line 10 and insert

‘makes provision about the treatment of certain repayments and return payments made in

respect of’.

Public Bill Committee: 11 June 2013
106

Finance Bill, continued

Mr David Gauke

66

Schedule  28,  page  375,  line  18,  leave out from beginning to end of line 12 on page

376 and insert—

‘464C
Treatment of certain repayments and return payments

(1)
Where—

(a)
within any period of 30 days—

(i)
the qualifying amount of repayments made to a close company

in respect of one or more chargeable payments made by the

company to a person totals £5,000 or more, and

(ii)
the available amount of the relevant chargeable payments made

by the company to the person or an associate of the person totals

£5,000 or more, and

(b)
the relevant chargeable payments are made in an accounting period

subsequent to that in which the chargeable payments mentioned in

paragraph (a)(i) were made,


the qualifying amount of the repayments, so far as not exceeding the available

amount of the relevant chargeable payments, is to be treated for the purposes of

this Chapter as a repayment of the relevant chargeable payments.

(2)
A chargeable payment is a relevant chargeable payment for the purposes of

subsection (1) if (or to the extent that) it is not repaid within the period of 30 days

mentioned in that subsection.

(3)
Where—

(a)
immediately before a repayment is made in respect of one or more

chargeable payments made by a close company to a person, the total

amount amount owed to the company by the person in respect of

chargeable payments is £15,000 or more,

(b)
at the time the repayment is made, arrangements had been made for one

or more chargeable payments to be made to replace some or all of the

amount repaid, and

(c)
the available amount of the chargeable payments made by the company

to the person or an associate of the person under the arrangements totals

£5,000 or more,


the qualifying amount of the repayment, so far as not exceeding the available

amount of the chargeable payments mentioned in paragraph (c), is to be treated

for the purposes of this Chapter as a repayment of those chargeable payments.

(4)
An amount contained in a charg eable payment is an available amount—

(a)
for the purposes of subsection (1), to the extent that no repayment has

been treated as made in respect of it by the previous operation of that

subsection, and

(b)
for the purposes of subsection (3), to the extent that no repayment has

been treated as made in respect of it—

(i)
by the operation of subsection (1), or

(ii)
by the previous operation of subsection (3).

(5)
An amount contained in a repayment is a qualifying amount to the extent that it

has not been treated by the previous operation of this section as a repayment of a

chargeable payment.

(6)
This section does not apply in relation to a repayment which gives rise to a charge

to income tax on the participator or associate by reference to whom the loan,

advance or benefit was a chargeable payment.

(7)
The Treasury may by order vary a sum specified in subsection (1) or (3).

Public Bill Committee: 11 June 2013
107

Finance Bill, continued

(8)
An order under subsection (7) may contain incidental, supplemental,

consequential and transitional provision and savings.’.

Mr David Gauke

67

Schedule  28,  page  376,  line  15,  leave out ‘464C(4)’ and insert 464C(1) and (3)’.

Mr David Gauke

68

Schedule  28,  page  376,  line  18,  leave out ‘464C(4)’ and insert 464C(1) or (3)’.

Mr David Gauke

69

Schedule  28,  page  376,  line  23,  leave out ‘464C(4)’ and insert ‘464C(1) or (3)’.

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.’.

David Gauke

70


Clause  107,  page  63,  line  8,  at end insert—

‘(1A)
This subsection provides for an exception to subsection (1).


Where P is an individual, C is not treated on the day in question as entitled to P’s

single-dwelling interest unless on that day C is entitled to a single-dwelling

interest in the dwelling that is a freehold or leasehold interest with a taxable value

of more than £500,000.’.

David Gauke

71


Clause  107,  page  63,  line  36,  at end insert—

‘(6)
In the application of this section to Scotland—

(a)
the reference to a freehold interest is to the interest of the owner;

(b)
the reference to a leasehold interest is to a tenant’s right over or interest

in property subject to a lease.’.

Public Bill Committee: 11 June 2013
108

Finance Bill, continued

David Gauke

72


Page  63,  line  37,  leave out Clause 108.

David Gauke

73


Clause  109,  page  64,  line  7,  leave out from ‘interest’ to ‘section’ in line 11 and

insert ‘if—

(a)
the day in question is relievable with respect to that interest by virtue of

section 150 (providers of social housing),

(b)
by virtue of section 148 (charitable companies) the ownership condition

is regarded as not met with respect to the interest on that day, or

(c)
the taxable value of the interest on that day is taken to be zero by virtue

of’.

David Gauke

74


Clause  114,  page  66,  line  33,  after ‘if’ insert ‘(a)’.

David Gauke

75


Clause  114,  page  66,  line  35,  at end insert ‘or

(b)
the ownership condition is, by virtue of section 148 (charitable

companies), regarded as not being met on that day with respect to one or

the other of those interests.’.

David Gauke

76


Clause  114,  page  67,  leave out line 2.

David Gauke

77


Clause  115,  page  68,  line  1,  after ‘if’ insert ‘(a)’.

David Gauke

78


Clause  115,  page  68,  line  3,  at end insert ‘or

(b)
(in a case where paragraph (a) of subsection (2) applies) the ownership

condition is, by virtue of section 148 (charitable companies), regarded as

not being met on that day with respect to one or the other of the

chargeable interests mentioned in that paragraph.’.

Public Bill Committee: 11 June 2013
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Finance Bill, continued

David Gauke

79


Clause  115,  page  68,  leave out line 15.

David Gauke

80


Clause  130,  page  76,  leave out line 31.

David Gauke

81


Clause  134,  page  79,  line  32,  leave out subsection (2).

David Gauke

82


Clause  148,  page  88,  line  35,  leave out subsection (1) and insert—

‘(1)
A charitable company that is entitled to a single-dwelling interest is regarded as

not meeting the ownership condition with respect to the interest on any day on

which the interest is held by the company for qualifying charitable purposes,

other than an excluded day.’.

David Gauke

83


Clause  148,  page  89,  leave out lines 1 to 27 and insert—

‘(3)
A day is an “excluded day” if the following conditions are met—

(a)
a person (“the donor”) has on or before that day made, or agreed to make,

a gift to the charitable company or to a charity that is connected with it,

(b)
there exist on that day arrangements under which or as a result of which

a linked individual is permitted, or is to be or may in the future be

permitted, to occupy the dwelling, and

(c)
it is reasonable to assume from either or both of—

(i)
the likely effects of the gift and the arrangements, or

(ii)
the circumstances in which the gift was made and the

circumstances in which the arrangements were entered into,


that the gift would not have been made and the arrangements would not

have been entered into independently of one another;


but see the exception in subsection (5).

(4)
In subsection (3)(b) “linked individual” means an individual who—

(a)
is the donor, or

(b)
was, when the arrangements were entered into, an associate of the donor.

(5)
A day is not an “excluded day” if the first, second or third condition is met on that

day.



© Parliamentary copyright	Revised 11 June 2013