House of Commons Amendments

Session 2014 - 15
Internet Publications
Other Bills before Parliament

Consideration of Bill:
403

, continued

20
Lump sums to which paragraph 1B of Schedule 29 fails to apply

(1)
Regulations 3 to 18 have effect subject to the following provisions of

this regulation.

(2)
Paragraph (3) applies if—

(a)
a lump sum is paid by a registered pension scheme (“the

paying scheme”) to a member of the scheme,

(b)
paragraph 1B of Schedule 29 does not apply to the lump sum,

but the conditions in paragraph 1B(2)(a) to (g) are met in the

case of the lump sum, and

(c)
as at the end of 5 October 2015 it is the case that the lump sum

is to be taken as having been an unauthorised member

payment.

(3)
For the purposes of reportable event 1, and regulation 3 so far as

applying by virtue of that event, the lump sum is treated as having been

paid—

(a)
by the receiving scheme and not by the paying scheme, and

(b)
on 6 October 2015.”

      (2)
The amendment made by sub-paragraph (1) is to be treated as having been

made by the Commissioners for Her Majesty’s Revenue and Customs under

such of the powers cited in the instrument containing the Regulations as are

applicable.

Scheme sanction charges

12  (1)
In section 239(3) of FA 2004 (cases where person other than scheme

administrator is liable for a scheme sanction charge)—

(a)
after “But” insert “—

(a)
”, and

(b)
at the end insert “, and

(b)
in the case of a payment of a lump sum to a member

where the conditions in paragraphs 1(1)(b) and (d)

and 1B(2)(a) to (g) of Schedule 29 are met, the person

liable to the scheme sanction charge so far as relating

to any part of the lump sum within the permitted

maximum is the scheme administrator of the

registered pension scheme to which the transfer

mentioned in paragraph 1B(2)(g) of Schedule 29 is

made.”

      (2)
In section 239 of FA 2004 (scheme sanction charges) after subsection (3)

insert—

“(3A)
For the purposes of subsection (3)(b) “the permitted maximum”, in the

case of a lump sum paid to an individual, is the amount that in

accordance with paragraph 2 of Schedule 29 would be the permitted

maximum for that lump sum if the individual became entitled at the

time the lump sum is paid to the pension at that time expected to be the

pension in connection with which the lump sum is paid.”

      (3)
In section 268 of FA 2004 (discharge of liability to scheme sanction charges

etc) after subsection (7) insert—

“(7A)
Subsection (7) applies with the omission of its paragraph (a) if the

scheme chargeable payment is a payment of a lump sum where the

conditions in paragraph 1B(2)(a) to (g) of Schedule 29 are met.”

Consideration of Bill:
404

, continued

      (4)
In the Taxation of Pension Schemes (Transitional Provisions) Order 2006

(S.I. 2006/572) in article 18 (which provides for paragraph 1(1)(b) of Schedule

29 to FA 2004 to be omitted in certain cases) at the end insert “, and section

239 has effect in the case of a lump sum paid to that individual as if its

subsection (3)(b) did not include a reference to paragraph 1(1)(b) of Schedule

29”.

      (5)
The amendment made by sub-paragraph (4) is to be treated as made by the

Treasury under the powers to make orders conferred by section 283(2) of FA

2004.

Power to make further adjustments

13
In section 166 of FA 2004 (payments by registered pension schemes: the lump

sum rule) after subsection (4) insert—

“(5)
The Commissioners for Her Majesty’s Revenue and Customs may by

regulations           amend Part 1 of Schedule 29, or Part 3 of Schedule 36, in

connection with cases involving a lump sum within subsection (6).

(6)
A lump sum is within this subsection if—

(a)
the sum is paid on or after 19 September 2013 and before 6

April 2015, or

(b)
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.

(7)
The provision that may be made under subsection (5) includes

provision altering the effect of amendments made by the Finance Act

2014.”

14
In section 282(1) and (2) of FA 2004 (making of regulations and orders) for

“Board of Inland Revenue” substitute “Commissioners for Her Majesty’s

Revenue and Customs”.

Commencement

15
The amendments made by paragraphs 1 to 5, 6(1), 7 to 10, 11(1) and 12(1) to

(4) of this Schedule are to be treated as having come into force on 19 March

2014.”

Consideration of Bill:
405

, continued

NEW CLAUSES AND NEW SCHEDULES RELATING TO THE ANNUAL INVESTMENT

ALLOWANCE; AMENDMENTS TO CLAUSE 10 AND SCHEDULE 2

Ed Balls

Chris Leslie

Cathy Jamieson

Catherine McKinnell

Shabana Mahmood

NC10

To move the following Clause—

“Review of reform to the annual investment allowance

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

Act, undertake a review of the impact on business investment of changes to

section 51A of the Capital Allowances Act 2001 made by Finance Act 2011.

(2)
The Chancellor of the Exchequer must publish the report of the review and lay

the report before the House.”

REMAINING NEW CLAUSES AND NEW SCHEDULES STANDING IN THE NAME OF A

MINISTER OF THE CROWN; AMENDMENTS STANDING IN THE NAME OF A MINISTER OF

THE CROWN; REMAINING PROCEEDINGS ON CONSIDERATION

Mr Chancellor of the Exchequer

NC1

To move the following Clause—

“Oil contractor activities: ring-fence trade etc

Schedule (oil contractors: ring-fence trade etc) contains provision about the

corporation tax treatment of oil contractor activities.”

Mr Chancellor of the Exchequer

NC2

To move the following Clause—

“Determination of beneficial entitlement for purposes of group relief

(1)
CTA 2010 is amended as follows.

(2)
In section 169 (interpretation of provisions to determine proportion of beneficial

entitlement)—

(a)
in subsection (2), for the definition of “arrangements” substitute—

““arrangements”—

(a)
means arrangements of any kind (whether or not in

writing), but

(b)
does not include a condition or requirement imposed by,

or agreed with, a Minister of the Crown, the Scottish

Consideration of Bill:
406

, continued

Ministers, a Northern Ireland department or a statutory

body,”, and

(b)
after that subsection insert—

“(3)
In subsection (2) “statutory body” means a body (other than a

company as defined by section 1(1) of the Companies Act 2006)

established by or under a statutory provision for the purpose of

carrying out functions conferred on it by or under a statutory

provision, except that the Treasury may, by order, specify that a

body is or is not to be a statutory body for this purpose.”

(3)
In section 188 (other definitions for Part 5), in subsection (1), in the definition of

“company” for “section 156(2A)” substitute “sections 156(2A) and 169(3)”.

(4)
The amendments made by this section have effect in relation to accounting

periods ending on or after 1 January 2015.”

Mr Chancellor of the Exchequer

NC3

To move the following Clause—

“General Block Exemption Regulation

Schedule (General Block Exemption Regulation) makes provision in relation to

Commission Regulation (EU) No 651/2014 (General block exemption

Regulation).”

Mr Chancellor of the Exchequer

NC4

To move the following Clause—

“Co-operative societies etc

Schedule (Taxation of co-operative societies etc) makes provision about the tax

treatment of co-operative, community benefit and industrial and provident

societies and credit unions.”

Consideration of Bill:
407

, continued

Mr Chancellor of the Exchequer

NC5

To move the following Clause—

“Tax relief for theatrical production

Schedule (Tax relief for theatrical production) contains provision about relief in

respect of theatrical productions.”

Mr Chancellor of the Exchequer

NC6

To move the following Clause—

“Exclusion of incentivised electricity or heat generation activities

(1)
ITA 2007 is amended as follows.

(2)
In section 192 (EIS: meaning of “excluded activities”)—

(a)
in subsection (1), omit the “and” at the end of paragraph (ka) and after

that paragraph insert—

“(kb)
the subsidised generation of heat or subsidised

production of gas or fuel, and”, and

(b)
in subsection (2), omit the “and” at the end of paragraph (f) and after

paragraph (g) insert “, and

(h)
section 198B (subsidised generation of heat and

subsidised production of gas or fuel).”

(3)
In section 198A (excluded activities: subsidised generation or export of

electricity)—

(a)
for subsection (3) substitute—

“(3)
The generation of electricity is “subsidised” if—

(a)
a person receives a FIT subsidy in respect of the

electricity generated,

(b)
a renewables obligation certificate is issued in

connection with the generation of the electricity, or

(c)
a scheme established in a territory outside the United

Kingdom, and corresponding to that set out in a

renewables obligation order under section 32 of the

Electricity Act 1989, operates to incentivise the

generation of the electricity.”,

(b)
in subsection (6), omit the “or” after paragraph (c) and after paragraph (d)

insert “, or

(e)
an SCE formed in accordance with Council Regulation

(EC) No 1435/2003 on the Statute for a European

Cooperative Society.”, and

(c)
in subsection (9), at the end insert—

““renewables obligation certificate” means a certificate issued

under section 32B of the Electricity Act 1989 or Article 54 of the

Energy (Northern Ireland) Order 2003.”

Consideration of Bill:
408

, continued

(4)
After that section insert—

“198B
Excluded activities: subsidised generation of heat and subsidised

production of gas or fuel

(1)
This section supplements section 192(1)(kb).

(2)
The generation of heat, or production of gas or fuel, is “subsidised” if a

payment is made, or another incentive is given, under—

(a)
a scheme established by regulations under section 100 of the

Energy Act 2008 or section 113 of the Energy Act 2011

(renewable heat incentives), or

(b)
a similar scheme established in a territory outside the United

Kingdom,


in respect of the heat generated, or gas or fuel produced.

(3)
But the generation of heat, or production of gas or fuel, is not to be taken

to fall within section 192(1)(kb) if Condition A or B is met.

(4)
Condition A is that the generation or production is carried on by—

(a)
a community interest company,

(b)
a co-operative society,

(c)
a community benefit society,

(d)
a NI industrial and provident society, or

(e)
an SCE formed in accordance with Council Regulation (EC) No

1435/2003 on the Statute for a European Cooperative Society.

(5)
Condition B is that the plant used for the generation of the heat, or

production of the gas or fuel, relies wholly or mainly on anaerobic

digestion.

(6)
Section 198A(9) (definitions) applies for the purposes of this section as

for the purposes of section 198A.”

(5)
In section 303 (VCTs: meaning of “excluded activities”)—

(a)
in subsection (1), omit the “and” at the end of paragraph (ka) and after

that paragraph insert—

“(kb)
the subsidised generation of heat or subsidised

production of gas or fuel, and”, and

(b)
in subsection (2), omit the “and” at the end of paragraph (f) and after

paragraph (g) insert “, and

(h)
section 309B (subsidised generation of heat and

subsidised production of gas and fuel).”

(6)
In section 309A (excluded activities: subsidised generation or export of

electricity)—

(a)
for subsection (3) substitute—

“(3)
The generation of electricity is “subsidised” if—

(a)
a person receives a FIT subsidy in respect of the

electricity generated,

(b)
a renewables obligation certificate is issued in

connection with the generation of the electricity, or

(c)
a scheme established in a territory outside the United

Kingdom, and corresponding to that set out in a

renewables obligation order under section 32 of the

Consideration of Bill:
409

, continued

Electricity Act 1989, operates to incentivise the

generation of the electricity.”,

(b)
in subsection (6), omit the “or” after paragraph (c) and after paragraph (d)

insert “, or

(e)
an SCE formed in accordance with Council Regulation

(EC) No 1435/2003 on the Statute for a European

Cooperative Society.”, and

(c)
in subsection (9), at the end insert—

““renewables obligation certificate” means a certificate issued

under section 32B of the Electricity Act 1989 or Article 54 of the

Energy (Northern Ireland) Order 2003.”

(7)
After that section insert—

“309B
Excluded activities: subsidised generation of heat and subsidised

production of gas or fuel

(1)
This section supplements section 303(1)(kb).

(2)
The generation of heat, or production of gas or fuel, is “subsidised” if a

payment is made, or another incentive is given, under—

(a)
a scheme established by regulations under section 100 of the

Energy Act 2008 or section 113 of the Energy Act 2011

(renewable heat incentives), or

(b)
a similar scheme established in a territory outside the United

Kingdom,


in respect of the heat generated or gas or fuel produced.

(3)
But the generation of heat, or production of gas or fuel, is not to be taken

to fall within section 303(1)(kb) if Condition A or B is met.

(4)
Condition A is that the generation or production is carried on by—

(a)
a community interest company,

(b)
a co-operative society,

(c)
a community benefit society,

(d)
a NI industrial and provident society, or

(e)
an SCE formed in accordance with Council Regulation (EC) No

1435/2003 on the Statute for a European Cooperative Society.

(5)
Condition B is that the plant used for the generation of the heat, or

production of the gas or fuel, relies wholly or mainly on anaerobic

digestion.

(6)
Section 309A(9) (definitions) applies for the purposes of this section as

for the purposes of section 309A.”

(8)
The amendments made by subsections (2) to (4) have effect in relation to shares

issued on or after the day on which this Act is passed.

(9)
The amendments made by subsections (5) to (7) have effect in relation to a

relevant holding issued on or after the day on which this Act is passed.”



© Parliamentary copyright	Revised 1 July 2014