Session 2014 - 15
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29

 

House of Commons

 
 

Tuesday 17 June 2014

 

Public Bill Committee Proceedings

 

Finance Bill


 

(Except Clauses 1, 5 to 7, 11, 72 to 74 and 112; Schedule 1; and certain new Clauses and new


 

Schedules.)


 

[THIRTEENTH and FOURTEENTH Sittings]


 

Clauses 192 to 202 Agreed to.

 

Schedule 26 Agreed to.

 

Clauses 203 to 208 Agreed to.

 

Schedule 27 Agreed to.

 

Clauses 209 to 211 Agreed to.

 


 

Mr David Gauke

 

Agreed to  32

 

Clause  212,  page  141,  line  3,  leave out “tax”

 

Mr David Gauke

 

Agreed to  33

 

Clause  212,  page  141,  line  9,  leave out “resulting from the same tax arrangements”

 

and insert “and the chosen arrangements;”

 

Mr David Gauke

 

Agreed to  34

 

Clause  212,  page  141,  line  13,  after “it” insert “and the chosen arrangements”

 

Teresa Pearce

 

Not called  56

 

Clause  212,  page  141,  line  35,  at end insert—

 

“(8)    

The Chancellor of the Exchequer shall, within six months of this Act receiving

 

Royal Assent, publish a post implementation review.

 

(9)    

The Review referred to in subsection (8) above must in particular examine—

 

(a)    

the total number of accelerated payment notices issued;


 
 

Public Bill Committee Proceedings: 17 June 2014            

30

 

Finance Bill, continued

 
 

(b)    

the number of accelerated payment notices issued to cases involving a

 

disclosure made under DOTAS prior to the Act receiving Royal Assent,

 

(c)    

the total revenue collected through accelerated payment notices;

 

(d)    

the total revenue collected through penalties arising as a result of

 

accelerated payment notices;

 

(e)    

the number of representations made to Her Majesty’s Revenue and

 

Customs following the issuing of an accelerated payment notice;

 

(f)    

the number of accelerated payment notices that have been subsequently

 

withdrawn;

 

(g)    

the financial consequences resulting from the issuance of accelerated

 

payment notices for the businesses and taxpayers involved.

 

(10)    

The Chancellor of the Exchequer must publish the report of the review and lay

 

the report before the House.”

 

Clause, as amended, Agreed to.

 

Clauses 213 to 221 Agreed to.

 


 

Mr David Gauke

 

Agreed to  36

 

Schedule   28,  page  536,  line  6,  leave out “tax”

 

Mr David Gauke

 

Agreed to  37

 

Schedule   28,  page  536,  line  15,  leave out “resulting from the same tax

 

arrangements” and insert “and the chosen arrangements;”

 

Mr David Gauke

 

Agreed to  38

 

Schedule   28,  page  536,  line  21,  after “it” insert “and the chosen arrangements”

 

Schedule, as amended, Agreed to.

 


 

Mr David Gauke

 

Agreed to  35

 

Clause  222,  page  151,  leave out line 18

 

Clause, as amended, Agreed to.

 

Clauses 223 to 226 Agreed to.

 

Schedule 29 Agreed to.

 



 
 

Public Bill Committee Proceedings: 17 June 2014            

31

 

Finance Bill, continued

 
 

Charlie Elphicke

 

Withdrawn  53

 

Clause  227,  page  154,  line  34,  at end insert—

 

“(5)    

“Tax abuse” means any arrangement that, having regard to all the circumstances,

 

it would be reasonable to conclude is an arrangement that has no business, social

 

or other purpose other than the obtaining of a tax advantage.”

 

Clause Agreed to.

 


 

Charlie Elphicke

 

Not called  54

 

Clause  228,  page  155,  line  35,  at end insert—

 

“(8)    

It shall be a summary offence to promote a relevant proposal or relevant

 

arrangement which meets the definition of “tax abuse”.

 

(9)    

A promoter found guilty of an offence under subsection (8) shall be liable to a fine

 

not exceeding level 1 on the standard scale.”

 

Clause Agreed to.

 

Clause 229 Agreed to.

 

Schedule 30 Agreed to.

 

Clauses 231 to 241 Agreed to.

 


 

Mr David Gauke

 

Agreed to  39

 

Clause  242,  page  163,  line  19,  after “subsection (3)” insert “or (10)”

 

Clause, as amended, Agreed to.

 

Clause 243 Agreed to.

 


 

Mr David Gauke

 

Agreed to  40

 

Clause  244,  page  165,  line  17,  at end insert “, and

 

(d)    

any person who the monitored promoter could reasonably be expected to

 

know is a relevant intermediary in relation to a relevant proposal of the

 

monitored promoter.”

 

Mr David Gauke

 

Agreed to  41

 

Clause  244,  page  165,  line  34,  at end insert—


 
 

Public Bill Committee Proceedings: 17 June 2014            

32

 

Finance Bill, continued

 
 

“( )    

A person is a relevant intermediary in relation to a relevant proposal of a

 

monitored promoter if the person meets the conditions in section 229(a) to (c)

 

(meaning of “intermediary”) at any time while the monitoring notice in relation

 

to the monitored promoter has effect.”

 

Mr David Gauke

 

Agreed to  42

 

Clause  244,  page  165,  line  36,  leave out “or (2)(c)”

 

Mr David Gauke

 

Agreed to  43

 

Clause  244,  page  165,  line  41,  at end insert—

 

“( )    

in the case of a person falling within subsection (2)(c), the period of 30

 

days beginning with the later of the day of the notification mentioned in

 

subsection (1) and the first day on which the monitored promoter could

 

reasonably be expected to know that the person fell within subsection (4),

 

and

 

( )    

in the case of a person falling within subsection (2)(d), the period of 30

 

days beginning with the later of the day of the notification mentioned in

 

subsection (1) and the first day on which the monitored promoter could

 

reasonably be expected to know that the person was a relevant

 

intermediary in relation to a relevant proposal of the monitored

 

promoter.”

 

Clause, as amended, Agreed to.

 

Clauses 245 to 250 Agreed to.

 


 

Mr David Gauke

 

Agreed to  44

 

Clause  251,  page  170,  line  39,  leave out paragraph (b) and insert—

 

“( )    

requires the person to provide the information.”

 

Mr David Gauke

 

Agreed to  45

 

Clause  251,  page  171,  line  11,  leave out paragraph (b) and insert—

 

“( )    

requires the person to provide the information.”

 

Mr David Gauke

 

Agreed to  46

 

Clause  251,  page  171,  line  19,  leave out paragraph (b) and insert—

 

“( )    

requires the person to provide the information.”

 

Clause, as amended, Agreed to.

 

Clauses 251 to 263 Agreed to.

 



 
 

Public Bill Committee Proceedings: 17 June 2014            

33

 

Finance Bill, continued

 
 

Charlie Elphicke

 

Not selected  55

 

Clause  264,  page  178,  line  9,  leave out subsection (1) and insert—

 

“(1)    

In carrying out its functions under this Part, HMRC may require any person to

 

disclose any privileged information.”

 

Clause Agreed to.

 

Clause 265 Agreed to.

 


 

Mr David Gauke

 

Agreed to  47

 

Clause  266,  page  179,  line  4,  after “information” insert “or documents”

 

Clause, as amended, Agreed to.

 

Clause 267 Agreed to.

 


 

Mr David Gauke

 

Agreed to  50

 

Schedule  31,  page  546,  line  34,  leave out “client” and insert “clients and

 

intermediaries”

 

Schedule, as amended, Agreed to.

 

Clauses 268 and 269 Agreed to.

 


 

Mr David Gauke

 

Agreed to  48

 

Clause  270,  page  180,  line  45,  at end insert—

 

“( )    

In section 240 of IHTA 1984 (underpayments)—

 

(a)    

in subsection (3) for “and (5)” substitute “to (5A)”,

 

(b)    

in subsection (5), for “those dates” substitute “the dates in subsection

 

(2)(a) and (b)”,

 

(c)    

after subsection (5) insert—

 

“(5A)    

Proceedings in a case involving a loss of tax attributable to

 

arrangements which were expected to give rise to a tax

 

advantage in respect of which a person liable for the tax was

 

under an obligation to make a report under section 246 of the

 

Finance Act 2014 (duty to notify Commissioners of promoter

 

reference number) but failed to do so, may be brought at any time

 

not more than 20 years after the later of the dates in subsection

 

(2)(a) and (b).”, and

 

(d)    

in subsection (8), for “, (5) and (6)” substitute “to (6)”.”


 
 

Public Bill Committee Proceedings: 17 June 2014            

34

 

Finance Bill, continued

 
 

Clause, as amended, Agreed to.

 

Clause 271 Agreed to.

 


 

Mr David Gauke

 

Agreed to  49

 

Clause  272,  page  182,  line  13,  leave out paragraph (b) and insert—

 

“( )    

the officer of Revenue and Customs intends to seek the approval of the

 

tribunal to the giving of the notice.”

 

Clause, as amended, Agreed to.

 

Clauses 273 and 274 Agreed to.

 


 

Mr David Gauke

 

Agreed to  51

 

Schedule  32,  page  552,  line  9,  leave out sub-paragraph (2) and insert—

 

    “( )  

But in this Part of this Act “partnership” does not include a body of persons

 

forming a legal person that is distinct from themselves (and paragraphs 2 to 21

 

may accordingly be disregarded in applying this Part of this Act to such a body

 

of persons).”

 

Schedule, as amended, Agreed to.

 

Clauses 275 to 277 Agreed to.

 


 

Ed Balls

 

Chris Leslie

 

Cathy Jamieson

 

Catherine McKinnell

 

Shabana Mahmood

 

Negatived on division  57

 

Clause  278,  page  187,  line  28,  at end insert—

 

“(1)    

Before bringing foward any further reform of The Code of Practice on Taxation

 

of Banks, the Chancellor shall lay before Parliament a report considering the

 

impact on the total receipts paid to the Exchequer since 2010 by—

 

(a)    

Uk banking groups;

 

(b)    

building society groups;

 

(c)    

foreign banking groups; and

 

(d)    

relevant non-banking groups.

 

(2)    

The report will pay particular attention to receipts from—

 

(a)    

corporation tax;

 

(b)    

the bank levy; and


 
 

Public Bill Committee Proceedings: 17 June 2014            

35

 

Finance Bill, continued

 
 

(c)    

bank payroll tax.”

 

Clause Agreed to.

 

Clauses 279 to 283 Agreed to.

 

Schedule 33 Agreed to.

 

Clauses 285 to 290 Agreed to.

 

Schedule 34 Agreed to.

 

Clauses 291 to 295 Agreed to.

 


 

NEW CLAUSES

 

Ed Balls

 

Chris Leslie

 

Cathy Jamieson

 

Catherine McKinnell

 

Shabana Mahmood

 

Negatived on division  NC1

 

To move the following Clause—

 

“Lower rate of tax

 

(3)    

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

 

before Parliament a report containing proposals for an income tax rate of 10 per

 

cent on a band of income above the personal allowance.

 

(4)    

The report mentioned in subsection (1) above shall provide for the full benefit of

 

the 10 per cent. rate not being available to taxpayers paying the higher or

 

additional rates of tax.”

 


 

Ed Balls

 

Chris Leslie

 

Cathy Jamieson

 

Catherine McKinnell

 

Shabana Mahmood

 

Negatived on division  NC2

 

To move the following Clause—

 

“Higher rate of tax

 

(1)    

The Chancellor of the Exchequer shall, within three months of the passing of this

 

Act, undertake a review of the number of people paying the 40 per cent rate of

 

income tax in the years—

 

(a)    

2010-2011;

 

(b)    

2011-2012;

 

(c)    

2012-2013; and


 
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