House of Commons Amendments

Session 2014 - 15
Internet Publications
Other Bills before Parliament

389

House of Commons

Tuesday 1 July 2014

Consideration of Bill

New Amendments handed in are marked thus

Amendments which will comply with the required notice period at their next appearance

Finance Bill, As Amended

Note

The Amendments have been arranged in accordance with the Finance Bill

(Programme) (No. 2) Motion to be proposed by Mr Chancellor of the Exchequer.

NEW CLAUSES AND NEW SCHEDULES RELATING TO THE SUBJECT MATTER OF CLAUSE

1; aMENDMENTS TO CLAUSE 1

Ed Balls

Chris Leslie

Cathy Jamieson

Catherine McKinnell

Shabana Mahmood

NC14

To move the following Clause—

“Report on the additional rate of income tax

(1)
The Chancellor of the Exchequer shall, within three months of the passing of this

Act, publish a report on the additional rate of income tax.

(2)
The report shall set out the impact upon Exchequer receipts of setting the

additional rate at 50 per cent in the tax year 2015-16.

(3)
The report shall set out the impact of reducing the additional rate for 2013-14 on

the amount of income tax paid by—

(a)
all people who are liable for the additional rate;

(b)
those with taxable incomes of over £250,000 per year; and

(c)
those with taxable incomes of over £1,000,000 per year.

(4)
The report shall set out the impact of the reduction in the additional rate for 2013-

14 on the level of bonuses awarded in April 2013 to employees in the financial

sector.”

Consideration of Bill:
390

, continued

NEW CLAUSES AND NEW SCHEDULES RELATING TO STAMP DUTY LAND TAX;

AMENDMENTS TO CLAUSES 105 TO 107 AND SCHEDULE 19

Mr Chancellor of the Exchequer

NC7

To move the following Clause—

“SDLT: exercise of collective rights by tenants of flats

(1)
In section 74 of FA 2003 (exercise of collective rights by tenants of flats), in

subsection (1A) for “£2,000,000”, in each place it occurs, substitute “£500,000”.

(2)
The amendments made by this section have effect in relation to any chargeable

transaction of which the effective date is on or after 1 July 2014.

(3)
But the amendments do not have effect in relation to a transaction—

(a)
effected in pursuance of a contract entered into and substantially

performed before 20 March 2014, or

(b)
effected in pursuance of a contract entered into before that date and not

excluded by subsection (4).

(4)
A transaction effected in pursuance of a contract entered into before 20 March

2014 is excluded by this subsection if—

(a)
there is any variation of the contract, or assignment (or assignation) of

rights under the contract, on or after 20 March 2014,

(b)
the transaction is effected in consequence of the exercise on or after that

date of any option, right of pre-emption or similar right, or

(c)
on or after that date there is an assignment (or assignation), subsale or

other transaction relating to the whole or part of the subject-matter of the

contract as a result of which a person other than the purchaser under the

contract becomes entitled to call for a conveyance.”

Ed Balls

Chris Leslie

Cathy Jamieson

Catherine McKinnell

Shabana Mahmood

Clause  107,  page  90,  line  33,  at end insert—

‘(5A)
The Chancellor of the Exchequer shall, within six months of this Act receiving

Royal Assent, publish and lay before the House of Commons a report setting out

the impact of changes made to Schedule 19 of the Finance Act 1999 by this

section.

(5B)
The report referred to in subsection (5A) must in particular consider—

(a)
the impact on tax revenues;

Consideration of Bill:
391

, continued

(b)
the expected beneficiaries; and

(c)
a distributional analysis of the beneficiaries.”

NEW CLAUSES AND NEW SCHEDULES RELATING TO EMPLOYEE SHAREHOLDER SHARES

Ed Balls

Chris Leslie

Cathy Jamieson

Catherine McKinnell

Shabana Mahmood

NC11

To move the following Clause—

“Capital gains tax and employee shareholders

(1)
The Chancellor of the Exchequer shall, within three months of the passing of this

Act, undertake a review of the impact on tax revenues of employee shareholder

status as defined by section 205A of the Employment Rights Act 1996, and set

out the conclusion of the review in a report.

(2)
The report referred to in subsection (1) above must in particular set out—

(a)
the impact on total capital gains tax receipts paid to the Exchequer arising

from the capital gains exemptions under section 236B of the Taxation of

Chargeable Gains Act 1992;

(b)
the estimated value of shares owned by employees working in employee

shareholder jobs and the number of such employees.

(3)
The Chancellor of the Exchequer must publish the report of the review and lay

the report before the House.

(4)
Subsequent reviews must be completed before the end of each period of 12

months beginning with the date on which the previous review was completed.”

NEW CLAUSES AND NEW SCHEDULES RELATING TO TAX ARRANGEMENTS THAT ARE

ABUSIVE

Ed Balls

Chris Leslie

Cathy Jamieson

Catherine McKinnell

Shabana Mahmood

NC12

To move the following Clause—

“Report on tax advantages arising from tax arrangements that are abusive

(1)
The Chancellor of the Exchequer shall, within six months of this Act receiving

Royal Assent, publish and lay before the House of Commons a report setting out

further proposals to reduce the tax advantages arising from tax arrangements that

are abusive.

Consideration of Bill:
392

, continued

(2)
The report referred to in subsection (1) must in particular include proposals

about—

(a)
the exemption from the obligation to deduct tax on yearly interest in

respect of interest received on a quoted Eurobond contained in section

882 of the Income Tax Act 2007;

(b)
disguised employment in the construction sector; and

(c)
the use of dormant companies as a means of tax avoidance.

(3)
The report referred to in subsection (1) must set out the estimated impact of the

proposals contained in the report on the total receipts paid to the Exchequer.”

NEW CLAUSES AND NEW SCHEDULES RELATING TO PENSIONS; AMENDMENTS TO

CLAUSES 39 TO 43; AMENDMENTS TO SCHEDULES 4 AND 5

Mr Chancellor of the Exchequer

NC13

To move the following Clause—

“Pension flexibility: further amendments

Schedule (Pension flexibility: further amendments) makes further provision in

connection with pension flexibility.”

Ed Balls

Chris Leslie

Cathy Jamieson

Catherine McKinnell

Shabana Mahmood

NC9

To move the following Clause—

“Pension flexibility: Treasury analysis

(1)
The Chancellor of the Exchequer shall, within six months of this Act receiving

Royal Assent, publish and lay before the House of Commons any analysis

prepared by the Treasury prior to the publication of Budget 2014 relating to the

impact of changes made by sections 39 to 43 of this Act to schedules 28 and 29

to the Finance Act 2004.

(2)
The information published under subsection (1) must include—

(a)
any assessment made of the impact of the provision for independent face

to face guidance on the 2004 Act;

(b)
the distributional impact, by income decile of the population, of changes

made by sections 39 to 43 of this Act;

(c)
a behavioural analysis; and

(d)
the financial risk assessment.”

Consideration of Bill:
393

, continued

Mr Chancellor of the Exchequer

NS5

To move the following Schedule—

“Pension flexibility: further amendments

Temporary extension of period by which commencement lump sum may precede pension

1
In Schedule 29 to FA 2004 (authorised lump sums under registered pension

schemes) after paragraph 1 (conditions for a lump sum to be a pension

commencement lump sum) insert—

“1A(1)
Paragraph 1(1)(c) is to be omitted when deciding whether a lump

sum to which this paragraph applies is a pension commencement

lump sum.

      (2)
This paragraph applies to a lump sum if—

(a)
the sum is paid in respect of a money purchase

arrangement,

(b)
the sum is paid before the member becomes entitled to the

sum,

(c)
either—

(i)
the sum is paid on or after 19 September 2013 but

before 6 April 2015, or

(ii)
the sum is paid before 19 September 2013, a

contract for a lifetime annuity is entered into to

provide the pension in connection with which the

sum is paid, and on or after 19 March 2014 the

contract is cancelled, and

(d)
the member becomes entitled to the sum before 6 October

2015.

      (3)
Where—

(a)
a lump sum to which this paragraph applies is a pension

commencement lump sum but would not be a pension

commencement lump sum if sub-paragraph (1) were

omitted, and

(b)
the lump sum is paid to the member in connection with a

pension under the scheme to which it is expected that the

member will become entitled (“the expected pension”),


no lump sum paid to the member out of the expected-pension fund

is a pension commencement lump sum; and here “the expected-

pension fund” means the sums and assets that from time to time

represent the sums and assets that, when the lump sum mentioned

in paragraph (a) was paid, were held for the purpose of providing

the expected pension.

      (4)
For the purposes of sub-paragraph (2), if the circumstances are as

described in sub-paragraph (2)(c)(ii), the member is treated as not

having become entitled to the arranged pension as a result of the

cancelled contract having been entered into; and here “the arranged

pension” means the pension that would have been provided by that

contract had it not been cancelled.”

Consideration of Bill:
394

, continued

Temporary relaxation to allow transfer of pension rights after lump sum paid

2    (1)
In Schedule 29 to FA 2004 after paragraph 1A insert—

“1B(1)
When deciding whether a lump sum to which this paragraph applies

is a pension commencement lump sum—

(a)
paragraph 1(1)(aa) and (c) and (3) are to be omitted,

(b)
paragraph 1(4) is to be treated as referring to the actual

pension (see sub-paragraph (2)(h) of this paragraph), and

(c)
paragraph 2(2) is to be treated as referring to the

arrangement under which the member was expected to

become entitled to the expected pension (see sub-paragraph

(2)(b) of this paragraph).

      (2)
This paragraph applies to a lump sum if—

(a)
the sum is paid in respect of a money purchase

arrangement,

(b)
the sum is paid to the member in connection with a pension

under a registered pension scheme to which it is expected

that the member will become entitled (“the expected

pension”),

(c)
the expected pension is income withdrawal, a lifetime

annuity or a scheme pension,

(d)
the sum is paid before the member becomes entitled to the

expected pension,

(e)
either—

(i)
the sum is paid on or after 19 September 2013 but

before 6 April 2015, or

(ii)
the sum is paid before 19 September 2013, a

contract for a lifetime annuity is entered into to

provide the expected pension, and on or after 19

March 2014 the contract is cancelled,

(f)
the sum is not repaid at any time before 6 October 2015,

(g)
before the member becomes entitled to the expected

pension, there is a recognised transfer of the sums and

assets that immediately before the transfer represent the

sums and assets that when the sum was paid were held for

the purpose of providing the expected pension,

(h)
the member becomes entitled before 6 October 2015 to a

pension under the scheme to which the recognised transfer

is made (“the actual pension”),

(i)
the actual pension is income withdrawal, a lifetime annuity

or a scheme pension, or some combination of them, and

(j)
all of the sums and assets that represent the sums and assets

transferred by the recognised transfer are used to provide

the actual pension.

      (3)
If a lump sum to which this paragraph applies is a pension

commencement lump sum, any lump sum paid—

(a)
to the member,

(b)
by the scheme to which the recognised transfer mentioned

in sub-paragraph (2)(g) is made or by any other registered

pension scheme (including the scheme from which the

transfer was made), and

Consideration of Bill:
395

, continued

(c)
in connection with the member’s becoming entitled to the

actual pension,


is not a pension commencement lump sum.

      (4)
For the purposes of sub-paragraph (2), if the circumstances are as

described in sub-paragraph (2)(e)(ii), the member is treated as not

having become entitled to the expected pension as a result of the

cancelled contract having been entered into.”

      (2)
In section 166(2) of FA 2004 (time at which a person becomes entitled to a

lump sum)—

(a)
before paragraph (a) insert—

“(za)
in the case of a pension commencement lump sum to

which paragraph 1B of Schedule 29 applies (certain

sums paid before 6 April 2015), immediately before

the person becomes entitled to the actual pension (see

paragraph 1B(2)(h) of that Schedule),”, and

(b)
in paragraph (a) for “of a” substitute “of any other”.

Temporary relaxation to allow lump sum to be repaid to pension scheme that paid it

3
In Chapter 3 of Part 4 of FA 2004 (payments by registered pension schemes)

after section 185I insert—

“Repayments of lump sums

185J
Effect of repayment of certain pre-6 April 2015 lump sums

(1)
For the purposes of this Part—

(a)
a lump sum to which this section applies is treated as never

having been paid, and

(b)
the payment by which it is repaid is treated as not being a

payment.

(2)
This section applies to a lump sum if—

(a)
the sum is paid by a registered pension scheme to a member

of the scheme in respect of a money purchase arrangement,

(b)
the sum is paid to the member in connection with a pension

under the scheme to which it is expected that the member will

become entitled (“the expected pension”),

(c)
the expected pension is income withdrawal, a lifetime annuity

or a scheme pension,

(d)
the sum is paid before the member becomes entitled to the

expected pension,

(e)
either—

(i)
the sum is paid on or after 19 September 2013 but

before 6 April 2015, or

(ii)
the sum is paid before 19 September 2013, a contract

for a lifetime annuity is entered into to provide the

expected pension, and on or after 19 March 2014 the

contract is cancelled,

(f)
before the member becomes entitled to the expected pension,

the member repays the sum to the pension scheme that paid it,

and

(g)
the repayment is made before 6 October 2015.



© Parliamentary copyright	Revised 1 July 2014