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Notices of Amendments: 27 June 2013                     

423

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

22

 

Schedule  9,  page  214,  line  33,  at end insert—

 

‘(6A)  

The Commissioners for Her Majesty’s Revenue and Customs may

 

by regulations provide that an individual is not required to comply

 

with sub-paragraph (2) if prescribed conditions are met.

 

            

“Prescribed” means prescribed by the regulations.

 

    (6B)  

Accordingly, if by virtue of regulations under sub-paragraph (6A)

 

an individual is not required to comply with sub-paragraph (2), sub-

 

paragraph (3) does not apply because that individual does not

 

comply with sub-paragraph (2).’.

 

Mr Chancellor of the Exchequer

 

23

 

Schedule  9,  page  214,  line  42,  leave out ‘Finance Act 2013 is passed’ and insert

 

‘first regulations under paragraph (c) below come into force’.

 

Mr Chancellor of the Exchequer

 

24

 

Schedule  9,  page  215,  line  12,  at end insert—

 

‘(8A)  

Sub-paragraph (8B) applies in relation to a policy if the obligations

 

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

 

another person (“the transferee”) to whom there has been a transfer

 

of the whole or any part of a business previously carried on by the

 

issuer.

 

    (8B)  

In relation to that time, in sub-paragraph (2) the reference to the

 

issuer of the policy is to be read as a reference to the transferee.’.

 

Mr Chancellor of the Exchequer

 

25

 

Schedule  9,  page  215,  line  13,  after ‘sub-paragraph’ insert ‘(6A) or’.

 

Mr Chancellor of the Exchequer

 

26

 

Schedule  9,  page  221,  line  38,  leave out from ‘regulations’ to end of line 9 on page

 

222 and insert ‘—

 

(a)    

requiring relevant persons—

 

(i)    

to provide prescribed information to persons who

 

apply for the issue of qualifying policies or who are,

 

or may be, required to make statements under

 

paragraph B3(2) of Schedule 15;

 

(ii)    

to provide to an officer of Revenue and Customs

 

prescribed information about qualifying policies

 

which have been issued by them or in relation to

 

which they are or have been a relevant transferee;

 

(b)    

making such provision (not falling within paragraph (a)) as

 

the Commissioners think fit for securing that an officer of

 

Revenue and Customs is able—

 

(i)    

to ascertain whether there has been or is likely to be

 

any contravention of the requirements of the

 

regulations or of paragraph B3(2) of Schedule 15;


 
 

Notices of Amendments: 27 June 2013                     

424

 

Finance Bill, continued

 
 

(ii)    

to verify any information provided to an officer of

 

Revenue and Customs as required by the

 

regulations.’.

 

Mr Chancellor of the Exchequer

 

27

 

Schedule  9,  page  222,  line  10,  leave out ‘(2)’ and insert ‘(1)(b)’.

 

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).


 
 

Notices of Amendments: 27 June 2013                     

425

 

Finance Bill, continued

 
 

(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

 

(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


 
 

Notices of Amendments: 27 June 2013                     

426

 

Finance Bill, continued

 
 

(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)’.

 

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—


 
 

Notices of Amendments: 27 June 2013                     

427

 

Finance Bill, continued

 
 

(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

 

Parliamentary Star    

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

 

Parliamentary Star    

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


 
 

Notices of Amendments: 27 June 2013                     

428

 

Finance Bill, continued

 
 

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).

 

(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).”’.


 
 

Notices of Amendments: 27 June 2013                     

429

 

Finance Bill, continued

 
 

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.’.

 


 

NEW CLAUSES AND NEW SCHEDULES RELATING TO THE TAX TREATMENT OF

 

FINANCIAL SERVICES; REMAINING PROCEEDINGS ON CONSIDERATION

 

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;


 
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