House of Commons Amendments

Session 2013 - 14
Internet Publications
Other Bills before Parliament

Public Bill Committee: 18 June 2013
154

Finance Bill, continued

(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.’.

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.

Public Bill Committee: 18 June 2013
155

Finance Bill, continued

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).

      (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

Public Bill Committee: 18 June 2013
156

Finance Bill, continued

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—

‘(a)
was resident in the United Kingdom’.

Mr David Gauke

137

Schedule  44,  page  563,  line  31,  leave out ‘is’ and insert ‘was’.

Mr David Gauke

138

Schedule  44,  page  565,  line  24,  leave out paragraph 38 and insert—

‘38(1)
Section 413 (exception in certain cases of foreign service) is amended as

follows.

      (2)
In subsection (2), after “subsection” (in the second place it occurs) insert

“(2A),”.

      (3)
After that subsection insert—

“(2A)
This subsection applies to service in or after the tax year 2013-14—

(a)
to the extent that it consists of duties performed outside the

United Kingdom in respect of which earnings would not be

relevant earnings, or

(b)
if a deduction equal to the whole amount of the earnings from

the employment was or would have been allowable under

Chapter 6 of Part 5 (deductions from seafarers’ earnings).”

      (4)
In subsection (3), after “2003-04” insert “but before the tax year 2013-14”.

      (5)
After that subsection insert—

“(3ZA)
In subsection (2A)(a) “relevant earnings” means earnings for a tax

year that are earnings to which section 15 applies and to which that

section would apply even if the employee made a claim under section

809B of ITA 2007 (claim for remittance basis) for that year.”’.

Mr David Gauke

139

Schedule  44,  page  569,  line  36,  leave out from beginning to ‘for’ in line 37 and

insert—

‘(a)
was resident in the United Kingdom’.

Public Bill Committee: 18 June 2013
157

Finance Bill, continued

Mr David Gauke

140

Schedule  44,  page  569,  line  38,  leave out ‘is’ and insert ‘was’.

Ed Balls

Cathy Jamieson

Catherine McKinnell

Chris Leslie

149

Clause  217,  page  126,  line  13,  at end add—

‘(2)
The Chancellor of the Exchequer shall consider what steps Her Majesty’s

Government could take, working alongside developing country governments, to

assess the impact of changes to the Controlled Foreign Company Rules in the

Finance Act 2012 and as a result of this Part of this Act on the overall tax take of

developing countries. He shall report on this issue to Parliament within six

months of Royal Assent.’.

Mr David Gauke

141

Clause  219,  page  127,  line  13,  leave out ‘the purpose of’ and insert ‘or in

connection with’.

Mr David Gauke

142

Clause  219,  page  127,  line  23,  at end insert—

‘( )
any arrangements for the exchange of tax information in relation to the

United Kingdom and any other territory which make provision

corresponding, or substantially similar, to that made by an agreement

within paragraph (a) or (b).’.

Mr David Gauke

143

Clause  219,  page  127,  line  30,  at end insert ‘(including obligations to obtain from

specified persons details of their place of residence for tax purposes)’.

Mr David Gauke

144

Clause  219,  page  127,  line  36,  after ‘agreement’ insert ‘or arrangements’.

Mr David Gauke

145

Clause  219,  page  127,  line  37,  after ‘agreement’ insert ‘or arrangements’.

Mr David Gauke

146

Clause  219,  page  127,  line  38,  after ‘agreement’ insert ‘or arrangements’.

Public Bill Committee: 18 June 2013
158

Finance Bill, continued

Ed Balls

Chris Leslie

Catherine McKinnell

Cathy Jamieson

109

Clause  219,  page  128,  line  8,  at end add—

‘(8)
Her Majesty’s Revenue and Customs shall review the possibility of bringing

foward measures to work in conjunction with other G8 countries and the

members of the Organisation for Economic Co-operation and Development, to

require multi-national companies to publish a single easily comparable figure for

the amount of corporation tax they pay, and within six months of the passage of

this Act, place a copy of the review in the House of Commons Library.

(9)
The Chancellor of the Exchequer shall review the effects of incorporating a

global standard for public registration of ownership of companies and trusts via a

convention on tax transparency, including a requirement on companies to publish

a single easily comparable figure for the amount of corporation tax they pay in

the UK, on Treasury tax receipts within six months of the passage of this Act, and

consult with G8 countries on their effectiveness. He shall place a copy of the

review in the House of Commons Library.’.

Ed Balls

Catherine McKinnell

Chris Leslie

Cathy Jamieson

147

Clause  220,  page  129,  line  6,  at end add—

‘(2)
The Chancellor of the Exchequer shall consider what steps Her Majesty’s

Government could take, in co-operation with developing country governments, to

assess how UK companies could report their use of tax use schemes that have an

impact of developing countries, and how the UK could assist in the recovery of

that tax. He shall report on this issue to Parliament within six months of Royal

Assent.’.

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—

Public Bill Committee: 18 June 2013
159

Finance Bill, continued

(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.’.

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

Public Bill Committee: 18 June 2013
160

Finance Bill, continued

(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

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.



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