House of Commons Public Bill Committee Proceedings

Session 2013 - 14
Internet Publications
Other Bills before Parliament

23

House of Commons

Tuesday 11 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)

[ThirteeNTH AND FourTeentH Sittings]

Ed Balls

Chris Leslie

Cathy Jamieson

Catherine McKinnell

Not selected  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

Not selected  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.’.

Clause Agreed to.

Clauses 52 and 53 Agreed to.

Public Bill Committee Proceedings: 11 June 2013
24

Finance Bill, continued

Mr David Gauke

Agreed to  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

Negatived on division  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

Not selected  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.’.

Clause, as amended, Agreed to.

Mr David Gauke

Agreed to  57

Schedule  22,  page  326,  line  31,  leave out ‘(c)’ and insert ‘(d)’.

Mr David Gauke

Agreed to  58

Schedule  22,  page  333,  line  18,  leave out ‘(c)’ and insert ‘(d)’.

Mr David Gauke

Agreed to  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—

Public Bill Committee Proceedings: 11 June 2013
25

Finance Bill, continued

(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.”’.

Schedule, as amended, Agreed to.

Clauses 55 to 63 Agreed to.

Schedule 23 Agreed to.

Clauses 65 and 66 Agreed to.

Ian Mearns

Withdrawn  50

Clause  67,  page  35,  line  37,  leave out subsection (2).

Ed Balls

Cathy Jamieson

Chris Leslie

Catherine McKinnell

Negatived on division  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.’.

Clause Agreed to.

Clauses 69 to 71 Agreed to.

Schedule 25 Agreed to.

Clause 72 Agreed to.

Public Bill Committee Proceedings: 11 June 2013
26

Finance Bill, continued

Schedule 26 Agreed to.

Clauses 73 and 74 Agreed to.

Schedule 27 Agreed to.

Clauses 75 and 76 Agreed to.

Mr David Gauke

Agreed to  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’.

Mr David Gauke

Agreed to  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,

Public Bill Committee Proceedings: 11 June 2013
27

Finance Bill, continued


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).

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

consequential and transitional provision and savings.’.

Mr David Gauke

Agreed to  67

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

Mr David Gauke

Agreed to  68

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

Mr David Gauke

Agreed to  69

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

Schedule, as amended, Agreed to.

Clauses 77 to 86 Agreed to.

Schedule 29 Agreed to.

Clauses 87 to 90 Agreed to.

Schedule 30 Agreed to.

[Adjourned until Thursday at 11.30 am



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