House of Commons Amendments

Session 2013 - 14
Internet Publications
Other Bills before Parliament

Consideration of Bill: 2 July 2013
472

Finance Bill, continued

Mr Chancellor of the Exchequer

28

Schedule  9,  page  222,  leave out lines 20 and 21.

Mr Chancellor of the Exchequer

29

Schedule  9,  page  222,  leave out lines 29 and 30 and insert—

‘“relevant person” means a person—

(a)
who issues, or has issued, qualifying policies, or

(b)
who is, or has been, a relevant transferee in relation to qualifying

policies.

(6)
For the purposes of this section a person (“X”) is at any time a

“relevant transferee” in relation to a qualifying policy if the

obligations under the policy of its issuer are at that time the obligations

of X as a result of there having been a transfer to X of the whole or any

part of a business previously carried on by the issuer.”’.

Mr Chancellor of the Exchequer

35

Schedule  34,  page  424,  line  36,  leave out ‘subsection (2) or (3)’ and insert

‘subsections (2) to (3A)’.

Mr Chancellor of the Exchequer

36

Schedule  34,  page  424,  line  38,  leave out ‘excluded property’ and insert ‘property

mentioned in subsection (1)’.

Mr Chancellor of the Exchequer

37

Schedule  34,  page  425,  leave out lines 11 to 14 and insert—

‘(3)
The liability may be taken into account up to an amount equal to the value of such

of the property mentioned in subsection (1) as—

(a)
has not been disposed of, and

(b)
is no longer excluded property.

(3A)
To the extent that any remaining liability is greater than the value of such of the

property mentioned in subsection (1) as—

(a)
has not been disposed of, and

(b)
is still excluded property,


it may be taken into account, but only so far as the remaining liability is not

greater than that value for any of the reasons mentioned in subsection (3D).

(3B)
Subsection (3C) applies where—

(a)
a liability or any part of a liability is attributable to financing (directly or

indirectly)—

(i)
the acquisition of property that was not excluded property, or

(ii)
the maintenance, or an enhancement, of the value of such

property, and

(b)
the property or part of the property—

(i)
has not been disposed of, and

Consideration of Bill: 2 July 2013
473

Finance Bill, continued

(ii)
has become excluded property.

(3C)
The liability or (as the case may be) the part may only be taken into account to

the extent that it exceeds the value of the property, or the part of the property, that

has become excluded property, but only so far as it does not exceed that value for

any of the reasons mentioned in subsection (3D).

(3D)
The reasons are—’.

Mr Chancellor of the Exchequer

38

Schedule  34,  page  425,  line  19,  leave out ‘excluded’.

Mr Chancellor of the Exchequer

39

Schedule  34,  page  425,  line  20,  leave out ‘subsection (3)(a)’ and insert ‘this

section’.

Mr Chancellor of the Exchequer

40

Schedule  34,  page  425,  line  23,  at end insert—

‘“remaining liability” means the liability mentioned in subsection (1) so far

as subsections (2) and (3) do not permit it to be taken into account;’.

Mr Chancellor of the Exchequer

41

Schedule  34,  page  426,  leave out lines 12 to 19.

Mr Chancellor of the Exchequer

42

Schedule  34,  page  426,  line  37,  at end insert—

‘(7A)
Subject to subsection (7B), to the extent that a liability is, in accordance with this

section, taken to reduce value in determining the value transferred by a

chargeable transfer, that liability is not then to be taken into account in

determining the value transferred by any subsequent transfer of value by the same

transferor.

(7B)
Subsection (7A) does not prevent a liability from being taken into account by

reason only that the liability has previously been taken into account in

determining the amount on which tax is chargeable under section 64.

(7C)
For the purposes of subsections (1) to (4) and (7A), references to a transfer of

value or chargeable transfer include references to an occasion on which tax is

chargeable under Chapter 3 of Part 3 (apart from section 79) and—

(a)
references to the value transferred by a transfer of value or chargeable

transfer include references to the amount on which tax is then chargeable,

and

(b)
references to the transferor include references to the trustees of the

settlement concerned.’.

Mr Chancellor of the Exchequer

43

Schedule  34,  page  426,  line  45,  after ‘162A(1)’, insert ‘or (3B)’.

Mr Chancellor of the Exchequer

44

Schedule  34,  page  427,  line  13,  after ‘162A(1)’, insert ‘or (3B)’.

Consideration of Bill: 2 July 2013
474

Finance Bill, continued

Mr Chancellor of the Exchequer

45

Schedule  34,  page  427,  line  22,  after ‘estate’, insert ‘or from excluded property

owned by the person immediately before death’.

Mr Chancellor of the Exchequer

46

Schedule  34,  page  427,  leave out lines 32 to 34 and insert—

‘(b)
securing a tax advantage is not the main purpose, or one of the main

purposes, of leaving the liability or part undischarged, and’.

Mr Chancellor of the Exchequer

47

Schedule  34,  page  427,  line  42,  at end insert—

‘( )
Where, by virtue of this section, a liability is not taken into account in

determining the value of a person’s estate immediately before death, the liability

is also not to be taken into account in determining the extent to which the estate

of any spouse or civil partner of the person is increased for the purposes of section

18.’.

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.’.

Consideration of Bill: 2 July 2013
475

Finance Bill, continued

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.’.

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).”’.

Consideration of Bill: 2 July 2013
476

Finance Bill, continued

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).

(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.

Consideration of Bill: 2 July 2013
477

Finance Bill, continued

      (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.’.

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).

Consideration of Bill: 2 July 2013
478

Finance Bill, continued

(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

(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.’.



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