Session 2013 - 14
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Other Bills before Parliament


 
 

Consideration of Bill: 1 July 2013                     

455

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

48

 

Schedule  34,  page  427,  line  43,  leave out from ‘(2)(b)’ to end of line 46.

 

Mr Chancellor of the Exchequer

 

49

 

Schedule  34,  page  428,  line  9,  after ‘162A(1)’, insert ‘or (3B)’.

 

Mr Chancellor of the Exchequer

 

50

 

Schedule  34,  page  428,  line  19,  leave out ‘The’ and insert—

 

    ‘(1)  

Subject to sub-paragraph (2), the’.

 

Mr Chancellor of the Exchequer

 

51

 

Schedule  34,  page  428,  line  21,  at end insert—

 

    ‘(2)  

Section 162B of IHTA 1984 (inserted by paragraph 3) only has effect in

 

relation to liabilities incurred on or after 6 April 2013.

 

      (3)  

For the purposes of sub-paragraph (2), where a liability is incurred under an

 

agreement—

 

(a)    

if the agreement was varied so that the liability could be incurred under

 

it, the liability is to be treated as having been incurred on the date of

 

the variation, and

 

(b)    

in any other case, the liability is to be treated as having been incurred

 

on the date the agreement was made.’.

 


 

Impact of the Spending Round 2013 on tax revenue

 

Ed Balls

 

Chris Leslie

 

Cathy Jamieson

 

Catherine McKinnell

 

NC10

 

To move the following Clause:—

 

‘The Chancellor shall publish, within six months of Royal Assent, a review of the

 

impact on revenue from rates and measures in this Act, resulting from the

 

Spending Round 2013. He shall place a copy of the Review in the House of

 

Commons Library.’.

 



 
 

Consideration of Bill: 1 July 2013                     

456

 

Finance Bill, continued

 
 

AMENDMENTS TO CLAUSE 38 AND SCHEDULE 18; REMAINING NEW CLAUSES, AND

 

REMAINING NEW SCHEDULES, RELATING TO TAX MEASURES CONCERNING HOUSING

 

Ed Balls

 

Chris Leslie

 

Cathy Jamieson

 

Catherine McKinnell

 

57

 

Clause  38,  page  15,  line  16,  at end insert—

 

‘(2)    

Notwithstanding the provisions of paragraph 13 of Schedule 18, that Schedule

 

shall come into force after the Chancellor has conducted, and placed in the House

 

of Commons Library, a review of the operation of the interaction of REITs with

 

the Housing Market. The Review shall consider—

 

(a)    

tax measures in place to support house building; and

 

(b)    

what steps HM Government have taken to support house building.’.

 


 

Mr Chancellor of the Exchequer

 

30

 

Schedule  18,  page  310,  line  36,  at end insert—

 

  ‘(1A)  

After subsection (4) insert—

 

“(4A)    

In the case of a group, for the purposes of subsections (1) and (2) a

 

distribution falling within section 549A(5) or (7) received by a

 

member of the group is to be treated as profits of a property rental

 

business in accordance with section 549A(1) notwithstanding section

 

549A(4A).

 

(4B)    

In the case of a company, for the purposes of subsections (1) and (3) a

 

distribution falling within section 549A(5) or (7) received by the

 

company is to be treated as profits of a property rental business in

 

accordance with section 549A(1) notwithstanding section

 

549A(4A).”’.

 

Mr Chancellor of the Exchequer

 

31

 

Schedule  18,  page  311,  line  9,  leave out paragraphs 5 and 6 and insert—

 

‘5  (1)  

Section 548 (distributions: liability to tax) is amended as follows.

 

      (2)  

In subsection (5) after “2009)” insert “so far as the distribution is a distribution

 

of exempt profits”.

 

      (3)  

In subsection (6) after “2005)” insert “so far as the distribution is a distribution

 

of exempt profits”.

 

      (4)  

After subsection (8) insert—

 

“(9)    

This section does not apply in relation to a distribution falling within

 

section 549A(5) or (7) so far as the distribution is a distribution of

 

exempt profits.

 

(10)    

For the purposes of this Chapter a distribution is a “distribution of

 

exempt profits” so far as the distribution falls within section 550(2)(a),

 

(aa), (c) or (d).


 
 

Consideration of Bill: 1 July 2013                     

457

 

Finance Bill, continued

 
 

(11)    

In applying section 550 for the purposes of subsection (10) in relation

 

to a distribution made by the principal company of a post-cessation

 

group or by a post-cessation company—

 

(a)    

subsection (1)(a) is to be read as referring to the principal

 

company of the post-cessation group, or (as the case may be)

 

(b)    

subsection (1)(b) is to be read as referring to the post-

 

cessation company.”

 

6    (1)  

Section 549 (distributions: supplementary) is amended as follows.

 

      (2)  

In subsections (2) and (2A) after “shareholder” insert “so far as they are

 

distributions of exempt profits”.

 

      (3)  

After subsection (3) insert—

 

“(3A)    

“Relevant distribution” does not include a distribution falling within

 

section 549A(5) or (7) so far as the distribution is a distribution of

 

exempt profits.”

 

      (4)  

In subsection (4) after the first “shareholder” insert “(so far as they are

 

distributions of exempt profits)”.’.

 

Mr Chancellor of the Exchequer

 

32

 

Schedule  18,  page  311,  line  31,  at end insert—

 

‘“(4A)    

Subsection (1) applies in relation to a distribution only so far as the

 

distribution is a distribution of exempt profits.

 

    

This is subject to section 531(4A) and (4B).”’.

 

Mr Chancellor of the Exchequer

 

33

 

Schedule  18,  page  312,  line  39,  leave out ‘4’ and insert ‘4(2) to (4)’.

 

Mr Chancellor of the Exchequer

 

34

 

Schedule  18,  page  312,  line  41,  leave out sub-paragraph (2) and insert—

 

    ‘(2)  

Subject to what follows, the amendments made by paragraphs 5 to 7 above

 

have effect in relation to distributions received on or after the day on which this

 

Act is passed.

 

      (3)  

A distribution received by a member of a group UK REIT does not fall within

 

section 549A(5) or (7) of CTA 2010 if it is received in an accounting period of

 

the principal company of the group beginning before the day on which this Act

 

is passed.

 

      (4)  

A distribution received by a company UK REIT does not fall within section

 

549A(5) or (7) of CTA 2010 if it is received in an accounting period of the

 

company beginning before the day on which this Act is passed.’.

 



 
 

Consideration of Bill: 1 July 2013                     

458

 

Finance Bill, continued

 
 

NEW CLAUSES AND NEW SCHEDULES RELATING TO THE TAX TREATMENT OF

 

FINANCIAL SERVICES; REMAINING PROCEEDINGS ON CONSIDERATION

 

Stamp duty reserve tax

 

Ed Balls

 

Chris Leslie

 

Cathy Jamieson

 

Catherine McKinnell

 

NC11

 

To move the following Clause:—

 

‘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.’.

 


 

Transfer of personal allowances between spouses

 

Tim Loughton

 

Mr Graham Brady

 

Mr James Gray

 

Nick de Bois

 

Mr Philip Hollobone

 

NC1

 

To move the following Clause:—

 

‘After section 37 of the Income Tax Act 2007, insert—

 

“37A  

Transfer of personal allowances between spouses

 

(1)    

This section applies to an individual who is entitled to a personal

 

allowance under sections 35 to 37 for a tax year if—

 

(a)    

the individual is a person whose spouse who is living with the

 

individual for the whole or any part of the tax year,

 

(b)    

the individual is, for the whole or any part of the tax year, usually

 

resident with at least one child who is under the age of 5 years at

 

the end of the tax year, or such other age as is specified by order;

 

and

 

(c)    

the spouse meets the requirements of section 56 (residence, etc).

 

(2)    

If—

 

(a)    

the allowance exceeds the individual’s income;

 

(b)    

the individual makes an election; and

 

(c)    

the individual’s spouse makes a claim;

 

    

the individual’s spouse is entitled to an allowance for the tax year equal

 

to the amount of the transferable allowance subject to a maximum

 

amount, if any, specified by order.

 

(3)    

The individual’s transferable allowance is found by—

 

(a)    

taking any personal allowance to which the individual is entitled

 

for the tax year, and


 
 

Consideration of Bill: 1 July 2013                     

459

 

Finance Bill, continued

 
 

(b)    

subtracting the amount of the individual’s income.

 

(4)    

For the purposes of this section “spouse” includes civil partners.

 

(5)    

For the purposes of this section an “order” means order made by statutory

 

instrument a draft of which has been laid before and approved by

 

resolution of the House of Commons.

 

(6)    

This section shall have effect for the tax year 2014-15 and subsequent

 

years.

 

37B    

Election for transfer of allowance under section 37A

 

(1)    

An election under section 37A—

 

(a)    

must be made not more than 4 years after the end of the tax year

 

to which it relates;

 

(b)    

cannot be withdrawn; and

 

(c)    

cannot be made before 6 April 2015.

 

(2)    

If an individual makes an election for a tax year under section 37A the

 

individual is treated as also giving notice under section 51(4) that section

 

51(1) (tax reductions for married couples: transfer of unused relief) is to

 

apply for the tax year.”.’.

 


 

Transfers to political parties (repeal)

 

Charlie Elphicke

 

NC2

 

To move the following Clause:—

 

‘Section 260(2)(b)(i) of the Taxation of Chargeable Gains Act 1992 shall be

 

repealed.’.

 


 

Transfers to political parties (report)

 

Charlie Elphicke

 

Stephen Williams

 

NC3

 

To move the following Clause:—

 

‘The Chancellor of the Exchequer shall, within three months of Royal Assent, lay

 

a report before Parliament assessing the extent of the use of section 260(2)(b)(i)

 

of the Taxation of Chargeable Gains Act 1992 for tax avoidance and the fiscal

 

effects of repealing that provision.’.

 



 
 

Consideration of Bill: 1 July 2013                     

460

 

Finance Bill, continued

 
 

Ed Balls

 

Chris Leslie

 

Cathy Jamieson

 

Catherine McKinnell

 

55

 

Clause  1,  page  1,  line  7,  at end add—

 

‘(2)    

Income tax is charged for the tax year 2013-14, and for that tax year—

 

(a)    

the basic rate is 20%,

 

(b)    

the higher rate is 40%, and

 

(c)    

the additional rate is 50%.

 

(3)    

Income tax is charged for the tax year 2014-15, and for that tax year—

 

(a)    

the basic rate is 20%,

 

(b)    

the higher rate is 40%, and

 

(c)    

the additional rate is 50%.’.

 


 

Mr Angus MacNeil

 

Angus Robertson

 

Stewart Hosie

 

Dr Eilidh Whiteford

 

Pete Wishart

 

Mr Mike Weir

 

54

 

Page  110,  line  28,  leave out Clause 183.

 


 

Ed Balls

 

Chris Leslie

 

Cathy Jamieson

 

Catherine McKinnell

 

56

 

Clause  203,  page  122,  line  18,  at end insert—

 

‘(4)    

Her Majesty’s Revenue and Customs shall review the possibility of bringing

 

forward measures as part of the GAAR to work in conjunction with other G8

 

countries to require multi-national companies to publish a single easily

 

comparable statement of the amount of corporation tax they pay in the UK.

 

(5)    

The Chancellor of the Exchequer shall review the effect 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 statement of the amount of corporation tax they pay in

 

the UK, on Treasury tax receipts.

 

(6)    

The Chancellor of the Exchequer shall consider, when counteracting tax

 

advantages arising from tax arrangements that are abusive, what steps HM

 

Government could take, working alongside developing country governments, to

 

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

 

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

 

that tax.


 
 

Consideration of Bill: 1 July 2013                     

461

 

Finance Bill, continued

 
 

(7)    

Within six months of the passage of Royal Assent, the Chancellor of the

 

Exchequer shall place copies of the review in the House of Commons Library,

 

and consult with G8 countries on their effectiveness.’.

 


 

Harriett Baldwin

 

Stephen Mosley

 

Mike Freer

 

52

 

Schedule  9,  page  213,  line  2,  at end insert—

 

‘(aa)    

the policy has an annual premium of £3,600 or less.’.

 

Harriett Baldwin

 

Stephen Mosley

 

Mike Freer

 

53

 

Schedule  9,  page  213,  line  2,  at end insert—

 

‘(ab)    

the policy is subject to capital gains tax.’.

 

 

ORDER OF THE HOUSE [15 April 2013]

 

That the following provisions shall apply to the Finance (No. 2) Bill:

 

Committal

 

1.    

The following shall be committed to a Committee of the whole House—

 

(a)    

Clauses 1, 3, 16, 183, 184 and 200 to 212;

 

(b)    

Schedules 3 and 41;

 

(c)    

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

 

(d)    

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.

 

2.    

The remainder of the Bill shall be committed to a Public Bill Committee.

 

Proceedings in Committee

 

3.      (1)    

Proceedings in Committee of the whole House shall be completed in

 

two days.

 

(2)    

Those proceedings shall be taken on each of those days as shown in

 

the first column of the following table and in the order so shown.

 

(3)    

Each part of the proceedings shall (so far as not previously

 

concluded) be brought to a conclusion at the time specified in

 

relation to it in the second column of the Table.


 
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