Session 2013 - 14
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Public Bill Committee Proceedings: 18 June 2013            

44

 

Finance Bill, continued

 
 

Mr David Gauke

 

Agreed to  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.’.

 

Mr David Gauke

 

Agreed to  127

 

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

 

Mr David Gauke

 

Agreed to  128

 

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

 

(a)    

’.

 

Mr David Gauke

 

Agreed to  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

 

Agreed to  130

 

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

 

Mr David Gauke

 

Agreed to  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).’.


 
 

Public Bill Committee Proceedings: 18 June 2013            

45

 

Finance Bill, continued

 
 

Mr David Gauke

 

Agreed to  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).

 

      (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

 

Agreed to  133

 

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

 

17 or 2017-18’.

 

Mr David Gauke

 

Agreed to  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


 
 

Public Bill Committee Proceedings: 18 June 2013            

46

 

Finance Bill, continued

 
 

substituted “in circumstances where the taxpayer was working

 

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

 

Mr David Gauke

 

Agreed to  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.’.

 

Schedule, as amended, Agreed to.

 

Clause 216 Agreed to.

 


 

Mr David Gauke

 

Agreed to  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

 

Agreed to  137

 

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

 

Mr David Gauke

 

Agreed to  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


 
 

Public Bill Committee Proceedings: 18 June 2013            

47

 

Finance Bill, continued

 
 

(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

 

Agreed to  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’.

 

Mr David Gauke

 

Agreed to  140

 

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

 

Schedule, as amended, Agreed to.

 

[Adjourned until Thursday at 11.30 am


 
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