Session 2013 - 14
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Other Bills before Parliament


 
 

Report Stage Proceedings: 2 July 2013                  

145

 

Finance Bill, continued

 
 

‘(3A)  

In sub-paragraph (3)(a) the reference to the issued ordinary share

 

capital of the company does not include any capital already held by

 

the person making the offer or a person connected with that person

 

and in sub-paragraph (3)(b) the reference to the shares in the

 

company does not include any shares already held by the person

 

making the offer or a person connected with that person.

 

    (3B)  

For the purposes of sub-paragraph (3)(a) and (b) it does not matter

 

if the general offer is made to different shareholders by different

 

means.’.

 

Mr Chancellor of the Exchequer

 

Agreed to  15

 

Schedule  2,  page  151,  line  6,  leave out sub-paragraph (1) and insert—

 

    ‘(1)  

In Part 6 of Schedule 4 (exercise of share options) paragraph 26 (exchange of

 

options on company reorganisation) is amended as follows.

 

    (1A)  

In sub-paragraph (2)(c)—

 

(a)    

after “982” insert “or 983 to 985”, and

 

(b)    

after “shareholder” insert “etc”.

 

    (1B)  

After sub-paragraph (2) insert—

 

“(2A)  

In sub-paragraph (2)(a)(i) the reference to the issued ordinary share

 

capital of the scheme company does not include any capital already

 

held by the person making the offer or a person connected with that

 

person and in sub-paragraph (2)(a)(ii) the reference to the shares in

 

the scheme company does not include any shares already held by

 

the person making the offer or a person connected with that person.

 

    (2B)  

For the purposes of sub-paragraph (2)(a)(i) and (ii) it does not

 

matter if the general offer is made to different shareholders by

 

different means.”’.

 

Mr Chancellor of the Exchequer

 

Agreed to  16

 

Schedule  2,  page  151,  line  13,  at end insert—

 

‘Enterprise management incentives

 

30A(1)  

In Part 6 of Schedule 5 (company reorganisations) in paragraph 39

 

(introduction) after sub-paragraph (3) insert—

 

  “(4)  

In sub-paragraph (2)(a)(i) the reference to the issued share capital

 

of the company does not include any capital already held by the

 

person making the offer or a person connected with that person and

 

in sub-paragraph (2)(a)(ii) the reference to the shares in the

 

company does not include any shares already held by the person

 

making the offer or a person connected with that person.

 

      (5)  

For the purposes of sub-paragraph (2)(a)(i) and (ii) it does not

 

matter if the general offer is made to different shareholders by

 

different means.”

 

      (2)  

The amendment made by this paragraph comes into force on such day as the

 

Treasury may by order appoint.’.

 



 
 

Report Stage Proceedings: 2 July 2013                  

146

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

Agreed to  17

 

Schedule  9,  page  205,  line  7,  after ‘(g)’, insert ‘or (4A)’.

 

Mr Chancellor of the Exchequer

 

Agreed to  18

 

Schedule  9,  page  206,  line  32,  after ‘(g)’, insert ‘or (4A)’.

 

Mr Chancellor of the Exchequer

 

Agreed to  19

 

Schedule  9,  page  213,  line  25,  at end insert—

 

‘(4A)  

The Commissioners for Her Majesty’s Revenue and Customs may

 

by regulations provide that sub-paragraph (2) does not apply if

 

prescribed conditions are met in relation to the assignment.

 

            

“Prescribed” means prescribed by the regulations.

 

    (4B)  

Regulations under sub-paragraph (4A) may—

 

(a)    

make different provision for different cases or

 

circumstances, and

 

(b)    

contain incidental, supplementary, consequential,

 

transitional, transitory or saving provision.’.

 

Mr Chancellor of the Exchequer

 

Agreed to  20

 

Schedule  9,  page  213,  line  27,  after ‘(3)’, insert ‘or (4A)’.

 

Mr Chancellor of the Exchequer

 

Agreed to  21

 

Schedule  9,  page  213,  line  48,  after ‘(g)’, insert ‘or (4A)’.

 

Mr Chancellor of the Exchequer

 

Agreed to  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

 

Agreed to  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


 
 

Report Stage Proceedings: 2 July 2013                  

147

 

Finance Bill, continued

 
 

Agreed to  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

 

Agreed to  25

 

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

 

Mr Chancellor of the Exchequer

 

Agreed to  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;

 

(ii)    

to verify any information provided to an officer of

 

Revenue and Customs as required by the

 

regulations.’.

 

Mr Chancellor of the Exchequer

 

Agreed to  27

 

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

 

Mr Chancellor of the Exchequer

 

Agreed to  28

 

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

 

Mr Chancellor of the Exchequer

 

Agreed to  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.


 
 

Report Stage Proceedings: 2 July 2013                  

148

 

Finance Bill, continued

 
 

(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

 

Agreed to  35

 

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

 

‘subsections (2) to (3A)’.

 

Mr Chancellor of the Exchequer

 

Agreed to  36

 

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

 

mentioned in subsection (1)’.

 

Mr Chancellor of the Exchequer

 

Agreed to  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

 

(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

 

Agreed to  38

 

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


 
 

Report Stage Proceedings: 2 July 2013                  

149

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

Agreed to  39

 

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

 

section’.

 

Mr Chancellor of the Exchequer

 

Agreed to  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

 

Agreed to  41

 

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

 

Mr Chancellor of the Exchequer

 

Agreed to  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

 

Agreed to  43

 

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

 

Mr Chancellor of the Exchequer

 

Agreed to  44

 

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

 

Mr Chancellor of the Exchequer

 

Agreed to  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

 

Agreed to  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’.


 
 

Report Stage Proceedings: 2 July 2013                  

150

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

Agreed to  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

 

Agreed to  48

 

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

 

Mr Chancellor of the Exchequer

 

Agreed to  49

 

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

 

Mr Chancellor of the Exchequer

 

Agreed to  50

 

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

 

    ‘(1)  

Subject to sub-paragraph (2), the’.

 

Mr Chancellor of the Exchequer

 

Agreed to  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

 

Negatived on division  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


 
 

Report Stage Proceedings: 2 July 2013                  

151

 

Finance Bill, continued

 
 

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

 

Negatived on division  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

 

Agreed to  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

 

Agreed to  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—


 
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