Session 2012 - 13
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15

 

House of Commons

 
 

Tuesday 4 June 2013

 

Public Bill Committee Proceedings

 

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)


 

[Ninth and Tenth Sittings]


 

Clauses 29 to 33 Agreed to.

 

Schedule 13 Agreed to.

 

Clause 34 Agreed to.

 

Mr David Gauke

 

Agreed to  23

 

Schedule  14,  page  246,  line  41,  at end insert—

 

    

‘If the amount remaining after step 1 is greater than the net value of the set-off

 

amount (see subsection (2A)), that amount is to be reduced to the net value of the

 

set-off amount.

 

    

For provision about the treatment of the amount deducted under this step from the

 

amount remaining after step 1, see section 104NA.

 

    

Step 3’.

 

Mr David Gauke

 

Agreed to  24

 

Schedule  14,  page  247,  line  1,  leave out ‘step 1’ and insert ‘step 2’.

 

Mr David Gauke

 

Agreed to  25

 

Schedule  14,  page  247,  line  6,  leave out from ‘(b)’ to ‘is’ in line 7 and insert ‘the

 

amount deducted under paragraph (a) from the amount remaining after step 2’.

 

Mr David Gauke

 

Agreed to  26

 

Schedule  14,  page  247,  line  11,  leave out ‘step 3’ and insert ‘step 4’.


 
 

Public Bill Committee Proceedings: 4 June 2013            

16

 

Finance Bill, continued

 
 

Mr David Gauke

 

Agreed to  27

 

Schedule  14,  page  247,  line  12,  leave out ‘Step 3’ and insert ‘Step 4’.

 

Mr David Gauke

 

Agreed to  28

 

Schedule  14,  page  247,  line  13,  leave out ‘step 2’ and insert ‘step 3’.

 

Mr David Gauke

 

Agreed to  29

 

Schedule  14,  page  247,  line  16,  leave out ‘step 4’ and insert ‘step 5’.

 

Mr David Gauke

 

Agreed to  30

 

Schedule  14,  page  247,  line  17,  leave out ‘Step 4’ and insert ‘Step 5’.

 

Mr David Gauke

 

Agreed to  31

 

Schedule  14,  page  247,  line  19,  leave out ‘step 3’ and insert ‘step 4’.

 

Mr David Gauke

 

Agreed to  32

 

Schedule  14,  page  247,  line  22,  leave out ‘step 5’ and insert ‘step 6’.

 

Mr David Gauke

 

Agreed to  33

 

Schedule  14,  page  247,  leave out lines 23 to 36.

 

Mr David Gauke

 

Agreed to  34

 

Schedule  14,  page  247,  line  46,  at end insert—

 

‘(2A)    

To determine the net value of the set-off amount for the purposes of step 2 in

 

subsection (2), deduct from the set-off amount amount A and, in the case of a ring

 

fence trade, amount B.

 

    

Amount A is the amount equal to the corporation tax that would be chargeable on

 

the set-off amount if—

 

(a)    

it did not include any amount treated as an amount of R&D expenditure

 

credit for the accounting period by virtue of step 3 in subsection (2), and

 

(b)    

it was an amount of profits (or in the case of a ring fence trade, ring fence

 

profits) of the company for the accounting period and corporation tax on

 

such profits was chargeable at the main rate.

 

    

Amount B is the amount equal to the supplementary charge that would be

 

chargeable on the set-off amount if—

 

(a)    

it did not include any amount treated as an amount of R&D expenditure

 

credit for the accounting period by virtue of step 3 in subsection (2), and

 

(b)    

it was an amount of adjusted ring fence profits for the accounting

 

period.’.

 

Mr David Gauke

 

Agreed to  35

 

Schedule  14,  page  248,  line  12,  at end insert—


 
 

Public Bill Committee Proceedings: 4 June 2013            

17

 

Finance Bill, continued

 
 

‘104NA 

Amounts deducted by way of tax adjustment

 

(1)    

This section applies if—

 

(a)    

a company is entitled to an R&D expenditure credit for an

 

accounting period under this Chapter, and

 

(b)    

the amount of the set-off amount remaining after step 1 in

 

section 104N(2) is greater than the net value of the set-off

 

amount.

 

(2)    

An amount equal to the difference between—

 

(a)    

the amount remaining after step 1 in section 104N(2), and

 

(b)    

the net value of the set-off amount,

 

    

(“the step 2 amount”) is to be applied in discharging any liability of the

 

company to pay corporation tax for any subsequent accounting period.

 

    

This is subject to subsection (3).

 

(3)    

If the company is a member of a group, it may surrender the whole or

 

any part of the step 2 amount to any other member of the group (the

 

“relevant group member”).

 

    

In such a case, section 104Q(3) applies to the amount surrendered as

 

it applies to an amount of R&D expenditure credit surrendered under

 

step 5 in section 104N(2).

 

(4)    

If any of the amount surrendered under subsection (3) is remaining

 

after the operation of step 3 in section 104Q(3), it is to be treated for

 

the purposes of this section as if it had not been surrendered to the

 

relevant group member.

 

(5)    

Any amounts to be applied under subsection (2) or (3) in discharging

 

any liability of a company to pay corporation tax for an accounting

 

period are to be so applied before any amounts that may be so applied

 

under step 1, 4 or 5 in section 104N(2).

 

(6)    

The surrender by a company of the whole or any part of the step 2

 

amount to another company under this section—

 

(a)    

is not to be taken into account in determining the profits or

 

losses of either company for corporation tax purposes, and

 

(b)    

for corporation tax purposes is not to be regarded as the

 

making of a distribution.

 

(7)    

Any reference in this section to the set-off amount, or the net value of

 

the set-off amount, is to be read in accordance with section 104N.’.

 

Mr David Gauke

 

Agreed to  36

 

Schedule  14,  page  249,  line  42,  leave out ‘step 4’ and insert ‘step 5’.

 

Mr David Gauke

 

Agreed to  37

 

Schedule  14,  page  250,  line  21,  leave out ‘step 4’ and insert ‘step 5’.

 

Mr David Gauke

 

Agreed to  38

 

Schedule  14,  page  250,  line  27,  leave out from beginning to end of line 10 on page

 

251.


 
 

Public Bill Committee Proceedings: 4 June 2013            

18

 

Finance Bill, continued

 
 

Schedule, as amended, Agreed to.

 

Clause 35 Agreed to.

 

Schedule 15 Agreed to.

 


 

Mr David Gauke

 

Agreed to  39

 

Schedule  16,  page  296,  line  17,  at end insert—

 

‘( )    

may provide for those amendments to be treated as having come into

 

force on a day earlier than the day on which the order is made or this

 

Act is passed;’.

 

Mr David Gauke

 

Agreed to  40

 

Schedule  16,  page  296,  line  22,  leave out ‘1 April 2013.’ and insert ‘the day

 

specified for the purposes of this paragraph in an order made by the Treasury (“the

 

specified day”).

 

      ()  

An order under sub-paragraph (1) may specify a day earlier than the day on

 

which the order is made or this Act is passed.’.

 

Mr David Gauke

 

Agreed to  41

 

Schedule  16,  page  296,  line  24,  leave out ‘1 April 2013’ and insert ‘the specified

 

day’.

 

Mr David Gauke

 

Agreed to  42

 

Schedule  16,  page  296,  line  24,  leave out ‘date’ and insert ‘day’.

 

Mr David Gauke

 

Agreed to  43

 

Schedule  16,  page  296,  line  27,  leave out ‘1 April 2013’ and insert ‘the specified

 

day’.

 

Mr David Gauke

 

Agreed to  44

 

Schedule  16,  page  296,  line  28,  leave out ‘date’ and insert ‘day’.

 

Mr David Gauke

 

Agreed to  45

 

Schedule  16,  page  296,  line  33,  at end insert—

 

‘4  (1)  

The Treasury may by order make such amendments of this Schedule as are

 

necessary for the purpose of complying with any undertakings given to the

 

European Commission, or any conditions imposed by the Commission, in

 

connection with an application for State aid approval.

 

      (2)  

In this paragraph “State aid approval” means approval that the provision made

 

by Part 15B of CTA 2009, to the extent that it constitutes the granting of aid to

 

which any of the provisions of Article 107 or 108 of the Treaty on the


 
 

Public Bill Committee Proceedings: 4 June 2013            

19

 

Finance Bill, continued

 
 

Functioning of the European Union applies, is, or would be, compatible with

 

the internal market, within the meaning of Article 107 of that Treaty.

 

      (3)  

An order under this paragraph may—

 

(a)    

make incidental, supplemental, consequential, transitional or saving

 

provision, including provision amending Schedule 17;

 

(b)    

contain provision having effect in relation to times before the order is

 

made or this Act is passed.

 

      (4)  

A statutory instrument that contains (whether alone or with other provisions)

 

an order under this paragraph may not be made unless a draft of the instrument

 

has been laid before, and approved by a resolution of, the House of

 

Commons.’.

 

Schedule, as amended, Agreed to.

 


 

Mr David Gauke

 

Agreed to  46

 

Schedule  17,  page  307,  line  2,  at end insert—

 

‘( )    

may provide for any of those amendments to be treated as having come

 

into force on a day earlier than the day on which the order is made or

 

this Act is passed;’.

 

Mr David Gauke

 

Agreed to  47

 

Schedule  17,  page  307,  line  7,  leave out ‘1 April 2013.’ and insert ‘the relevant

 

day.

 

      ()  

“The relevant day” is—

 

(a)    

in the case of amendments relating to Part 15A of CTA 2009, 1 April

 

2013, and

 

(b)    

in the case of amendments relating to Part 15B of that Act, the day

 

specified by order for the purposes of paragraph 3 of Schedule 16.’.

 

Mr David Gauke

 

Agreed to  48

 

Schedule  17,  page  307,  line  9,  leave out ‘1 April 2013’ and insert ‘the relevant

 

day’.

 

Mr David Gauke

 

Agreed to  49

 

Schedule  17,  page  307,  line  9,  leave out ‘date’ and insert ‘day’.

 

Schedule, as amended, Agreed to.

 

Clauses 36 to 38 Agreed to.

 

Schedule 18 Agreed to.

 

Clauses 39 to 41 Agreed to.


 
 

Public Bill Committee Proceedings: 4 June 2013            

20

 

Finance Bill, continued

 
 

Schedule 19 Agreed to.

 


 

Ed Balls

 

Chris Leslie

 

Cathy Jamieson

 

Catherine McKinnell

 

Negatived on division  11

 

Clause  42,  page  20,  line  8,  at end add—

 

‘(7)    

The Treasury shall publish details of changes to tax revenues as a result of

 

amendments made by this section and of each other change in respect of the

 

treatment of regulatory capital requirements and tier one capital.’.

 

Clause Agreed to.

 

[Adjourned until Thursday at 11.30 am


 
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