House of Commons Amendments

Session 2013 - 14
Internet Publications
Other Bills before Parliament

137

House of Commons

Notices of Amendments

given on

Thursday 13 June 2013

For other Amendment(s) see the following page(s):

Finance Bill Committee 128-135

Public Bill Committee

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 Sched

ules, 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)

Mr David Gauke

110

Schedule  42,  page  486,  line  27,  leave out ‘or payment’ and insert ‘, payment or

increased pension’.

Mr David Gauke

111

Schedule  42,  page  486,  line  31,  after ‘72(8)’ insert ‘, 104(3)’.

Mr David Gauke

112

Schedule  42,  page  486,  line  32,  after ‘72(8)’ insert ‘, 104(3)’.

Mr David Gauke

113

Schedule  42,  page  486,  line  37,  leave out ‘or payment’ and insert ‘, payment or

increased pension’.

Mr David Gauke

114

Schedule  42,  page  486,  line  42,  at end insert—

Notices of Amendments: 13 June 2013
138

Finance Bill, continued

‘(iv)
articles 61 and 64 of the Personal Injuries (Civilians) Scheme

1983 (S.I. 1983/686),

(v)
article 53 of the Naval, Military and Air Forces etc. (Disablement

and Death) Service Pensions Order 2006 (S.I. 2006/606), and

(vi)
article 42 of the Armed Forces and Reserve Forces

(Compensation Scheme) Order 2011 (S.I. 2011/517).’.

Mr David Gauke

115

Schedule  42,  page  487,  line  44,  at end insert—

    ‘(7)
In the heading, for the words following “person” substitute “expected to fall

within the definition of “disabled person”’.

Mr David Gauke

116

Schedule  42,  page  488,  line  14,  at end insert—

‘9A(1)
In section 89B (meaning of “disabled person’s interest”), in subsection (1)(c)

after “2006” insert “if the trusts on which the settled property is held secure

that, if any of the settled property is applied during the disabled person’s life

for the benefit of a beneficiary, it is applied for the benefit of the disabled

person”.

      (2)
After that section insert—

“89C
Disabled person’s interest: powers of advancement etc

(1)
The trusts on which settled property is held are not to be treated for the

purposes of section 89B(1)(c) or (d) (meaning of “disabled person’s

interest”: cases involving an interest in possession) as failing to secure

that the settled property is applied for the benefit of a beneficiary by

reason only of—

(a)
the trustees’ having powers that enable them to apply

otherwise than for the benefit of the beneficiary amounts

(whether consisting of income or capital, or both) not

exceeding the annual limit,

(b)
the trustees’ having the powers conferred by section 32 of the

Trustee Act 1925 (powers of advancement),

(c)
the trustees’ having those powers but free from, or subject to

a less restrictive limitation than, the limitation imposed by

proviso (a) of subsection (1) of that section,

(d)
the trustees’ having the powers conferred by section 33 of the

Trustee Act (Northern Ireland) 1958 (corresponding provision

for Northern Ireland),

(e)
the trustees’ having those powers but free from, or subject to

a less restrictive limitation than, the limitation imposed by

subsection (1)(a) of that section, or

(f)
the trustees’ having powers to the like effect as the powers

mentioned in any of paragraphs (b) to (e).

(2)
For the purposes of this section, the “annual limit” is whichever is the

lower of the following amounts—

(a)
£3,000, and

(b)
3% of the amount that is the maximum value of the settled

property during the period in question.

Notices of Amendments: 13 June 2013
139

Finance Bill, continued

(3)
For those purposes the annual limit applies in relation to each period

of 12 months that begins on 6 April.

(4)
The Treasury may by order made by statutory instrument—

(a)
specify circumstances in which subsection (1)(a) is, or is not,

to apply in relation to a trust, and

(b)
amend the definition of “the annual limit” in subsection (2).

(5)
An order under subsection (4) may—

(a)
make different provision for different cases, and

(b)
contain transitional and saving provision.

(6)
A statutory instrument containing an order under subsection (4) may

not be made unless a draft of the instrument has been laid before, and

approved by a resolution of, the House of Commons.”

      (3)
The amendments made by this paragraph have effect in relation to property

transferred into settlement on or after the day on which this Act is passed.

      (4)
Nothing in this paragraph is to be read as preventing property transferred into

a settlement to which sub-paragraph (5) applies from being settled property for

the purposes of section 89B(1)(c) or (d) of IHTA 1984.

      (5)
This sub-paragraph applies to a settlement—

(a)
created before the day on which this Act is passed the trusts of which

have not been altered on or after that day, or

(b)
arising on or after the day on which this Act is passed under the will

of a testator, if—

(i)
the will was executed before the day on which this Act is

passed and its provisions, so far as relating to the settlement,

have not been altered on or after that day, or

(ii)
the will was executed or confirmed on or after the day on

which this Act is passed and its provisions, so far as relating

to the settlement, are in the same terms as those contained in

a will executed by the same testator before that day.’.

Mr David Gauke

117

Schedule  42,  page  493,  line  24,  at end insert—

‘(da)
a person in receipt of an increased disablement pension,’.

Mr David Gauke

118

Schedule  42,  page  493,  line  30,  leave out from ‘that’ to end of line 36 and insert ‘he

or she would be entitled to receive attendance allowance but for—

‘( )
the conditions as to residence and presence prescribed under section

64(1) of SSCBA 1992 or section 64(1) of SSCB(NI)A 1992,’.

Mr David Gauke

119

Schedule  42,  page  494,  line  5,  leave out from ‘that’ to end of line 12 and insert ‘he

or she would be entitled to receive a disability living allowance by virtue of entitlement

to the care component at the highest or middle rate but for—

‘( )
the conditions as to residence and presence prescribed under section

71(6) of SSCBA 1992 or section 71(6) of SSCB(NI)A 1992,’.

Notices of Amendments: 13 June 2013
140

Finance Bill, continued

Mr David Gauke

120

Schedule  42,  page  494,  line  24,  leave out from ‘that’ to end of line 32 and insert ‘he

or she would be entitled to receive personal independence payment by virtue of

entitlement to the daily living component but for—

‘( )
the conditions as to residence and presence prescribed under section

77(3) of WRA 2012 or the corresponding provision having effect in

Northern Ireland,’.

Mr David Gauke

121

Schedule  42,  page  494,  line  43,  at end insert—

‘Increased disablement pension

7A
A person is to be treated as a disabled person under paragraph 1(da) if he or

she satisfies HMRC that he or she would be entitled to receive an increased

disablement pension but for—

(a)
conditions as to residence and presence that have effect in relation to

increased disablement pension by virtue of regulations under section

104(3) of SSCBA 1992 or section 104(3) of SSCB(NI)A 1992

(application of attendance allowance provisions),

(b)
provision made under section 67(1) or (2) of SSCBA 1992 or section

67(1) or (2) of SSCB(NI)A 1992 (non-satisfaction of conditions for

attendance allowance where person is undergoing treatment for renal

failure in hospital or is provided with certain accommodation) that has

effect in relation to increased disablement pension by virtue of such

regulations, or

(c)
section 113(1) of SSCBA 1992 or section 113(1) of SSCB(NI)A 1992

or provision made by regulations under section 113(2) of SSCBA

1992 or section 113(2) of SSCB(NI)A 1992 (general provisions as to

disqualification and suspension).

Constant attendance allowance

7B
A person is to be treated as a disabled person under paragraph 1(e) if he or she

satisfies HMRC that he or she would be entitled to receive constant attendance

allowance but for—

(a)
article 61 (residence outside United Kingdom) or article 64

(maintenance in hospital or institution) of the Personal Injuries

(Civilians) Scheme 1983 (S.I. 1983/686), or

(b)
article 53 (maintenance in hospital or institution) of the Naval,

Military and Air Forces etc. (Disablement and Death) Service

Pensions Order 2006 (S.I. 2006/606).

Armed forces independence payment

7C
A person is to be treated as a disabled person under paragraph 1(f) if he or she

satisfies HMRC that he or she would be entitled to receive armed forces

independence payment but for article 42 of the Armed Forces and Reserve

Forces (Compensation Scheme) Order 2011 (S.I. 2011/517) (cessation of

payment on admission to Royal Hospital, Chelsea).’.

Mr David Gauke

122

Schedule  42,  page  495,  line  5,  at end insert—

Notices of Amendments: 13 June 2013
141

Finance Bill, continued

‘(a)
article 14 of the Personal Injuries (Civilians) Scheme 1983 (S.I. 1983/

686), or

(b)
’.

Mr David Gauke

123

Schedule  42,  page  495,  line  12,  at end insert—

‘“increased disablement pension” means an increase of disablement

pension under—

(a)
section 104 of SSCBA 1992, or

(b)
section 104 of SSCB(NI)A 1992,’.

Mr David Gauke

124

Schedule  42,  page  495,  line  27,  leave out from ‘arising’ to end of line 28 and insert

‘on or after 8 April 2013 under the will of a testator, if—

(i)
the will was executed before 8 April 2013 and its provisions,

so far as relating to the settlement, have not been altered on or

after that date, or

(ii)
the will was executed or confirmed on or after 8 April 2013

and its provisions, so far as relating to the settlement, are in the

same terms as those contained in a will executed by the same

testator before that date.

      (2)
In this Schedule a reference to a will includes a reference to a codicil.’.

Mr David Gauke

125

Schedule  43,  page  497,  line  40,  leave out ‘in’ and insert ‘which falls in both that

period and’.

Mr David Gauke

126

Schedule  43,  page  498,  line  38,  at end insert ‘, and

(e)
if P had a home overseas during all or part of year X, P did not spend

a sufficient amount of time there in year X.

      (2)
In relation to a home of P’s overseas, P “spent a sufficient amount of time”

there in year X if—

(a)
there were at least 30 days in year X when P was present there on that

day for at least some of the time (no matter how short a time), or

(b)
P was present there for at least some of the time (no matter how short

a time) on each day of year X up to and including the day on which P

died.

      (3)
In sub-paragraph (2)—

(a)
the reference to 30 days is to 30 days in aggregate, whether the days

were consecutive or intermittent, and

(b)
the reference to P being present at the home is to P being present there

at a time when it was a home of P’s.

      (4)
If P had more than one home overseas—

(a)
each of those homes must be looked at separately to see if the

requirement of sub-paragraph (1)(e) is met, and

(b)
that requirement is then met so long as it is met in relation to each of

them.’.

Notices of Amendments: 13 June 2013
142

Finance Bill, continued

Mr David Gauke

127

Schedule  43,  page  508,  line  18,  after ‘even’ insert ‘if P’.

Mr David Gauke

128

Schedule  43,  page  514,  line  38,  after ‘taxpayer’ insert ‘—

(a)
’.

Mr David Gauke

129

Schedule  43,  page  514,  line  40,  at end insert ‘, but

(b)
was resident in the UK for one or more of the 4 tax years immediately

preceding that year.’.

Mr David Gauke

130

Schedule  43,  page  517,  line  12,  after ‘in the’ insert ‘part of the’.

Mr David Gauke

131

Schedule  43,  page  517,  line  37,  leave out from ‘is’ to end of line 40 and insert ‘the

part of that year defined below—

(a)
for the Case in question, or

(b)
if the taxpayer’s circumstances fall within more than one Case, for the

Case which has priority (see paragraphs 53A and 53B).’.

Mr David Gauke

132

Schedule  43,  page  518,  line  22,  at end insert—

‘Priority between Cases 1 to 3

53A(1)
This paragraph applies to determine which Case has priority where the

taxpayer’s circumstances for the relevant year fall within two or all of the

following—

Case 1 (starting full-time work overseas);

Case 2 (the partner of someone starting full-time work overseas);

Case 3 (ceasing to have a home in the UK).

      (2)
Case 1 has priority over Case 2 and Case 3.

      (3)
Case 2 has priority over Case 3.

Priority between Cases 4 to 8

53B(1)
This paragraph applies to determine which Case has priority where the

taxpayer’s circumstances for the relevant year fall within two or more of the

following—

Case 4 (starting to have a home in the UK only);

Case 5 (starting full-time work in the UK);

Case 6 (ceasing full-time work overseas);

Case 7 (the partner of someone ceasing full-time work overseas);

Case 8 (starting to have a home in the UK).

Notices of Amendments: 13 June 2013
143

Finance Bill, continued

      (2)
In this paragraph “the split year date” in relation to a Case means the final day

of the part of the relevant year defined in paragraph 53(5) to (9) for that Case.

      (3)
If Case 6 applies—

(a)
if Case 5 also applies and the split year date in relation to Case 5 is

earlier than the split year date in relation to Case 6, Case 5 has priority;

(b)
otherwise, Case 6 has priority.

      (4)
If Case 7 (but not Case 6) applies—

(a)
if Case 5 also applies and the split year date in relation to Case 5 is

earlier than the split year date in relation to Case 7, Case 5 has priority;

(b)
otherwise, Case 7 has priority

      (5)
If two or all of Cases 4, 5 and 8 apply (but neither Case 6 nor Case 7), the Case

which has priority is the one with the earliest split year date.

      (6)
But if, in a case to which sub-paragraph (5) applies, two or all of the Cases

which apply share the same split year date and that date is the only, or earlier,

split year date of the Cases which apply, the Cases with that split year date are

to be treated as having priority.’.

Mr David Gauke

133

Schedule  43,  page  558,  line  14,  leave out ‘or 2015-16’ and insert ‘2015-16, 2016-

17 or 2017-18’.

Mr David Gauke

134

Schedule  43,  page  558,  line  40,  at end insert ‘, and

(c)
paragraph 49 of this Schedule has effect in relation to that year as if in

sub-paragraph (2) for the words from “because” to the end there were

substituted “in circumstances where the taxpayer was working

overseas full-time for the whole of that year.”’.

Mr David Gauke

135

Schedule  43,  page  559,  line  17,  at end insert—

‘   (1)
Sub-paragraph (2) applies in determining whether the test in paragraph 50(3)

is met where the relevant year is the tax year 2013-14.

      (2)
The circumstances of a partner of the taxpayer are to be treated as falling

within Case 6 for the previous tax year if the partner was eligible for split year

treatment in relation to that tax year under the relevant ESC on the grounds that

he or she returned to the United Kingdom after a period working overseas full-

time.

      (3)
Where the circumstances of a partner are treated as falling within Case 6 under

sub-paragraph (2), the reference in paragraph 50(7)(b) to the UK part of the

relevant year as defined for Case 6 is a reference to the part corresponding, so

far as possible, in accordance with the terms of the relevant ESC, to the UK

part of that year.

      (4)
“The relevant ESC” means whichever of the extra-statutory concessions to

which effect is given by Part 3 of this Schedule is relevant in the partner’s

case.’.

Mr David Gauke

136

Schedule  44,  page  563,  line  29,  leave out from beginning to ‘for’ in line 30 and

insert—



© Parliamentary copyright	Revised 14 June 2013