Session 2014 - 15
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Other Bills before Parliament


 
 

Consideration of Bill:                               

445

 

, continued

 
 

Mr Chancellor of the Exchequer

 

Schedule  6,  page  295,  line  1,  after “under” insert “section 94A of ITTOIA 2005 or”

 

Mr Chancellor of the Exchequer

 

Schedule  7,  page  311,  line  41,  at end insert—

 

“9A(1)  

Section 428 (restricted securities: amount of charge) is amended as follows.

 

      (2)  

In subsection (7), after paragraph (ba) insert—

 

“(bb)    

any amount that was charged to non-UK income tax in respect

 

of the acquisition of the employment-related securities, but

 

only so far as that amount exceeds any amount within

 

paragraph (b) or (ba),”.

 

      (3)  

After subsection (7) insert—

 

“(7A)    

In subsection (7)(b) and (ba) the references to an amount of exempt

 

income, in a case in which the amount that constituted, or was treated

 

as, earnings in respect of the acquisition was not an amount of general

 

earnings to which any of the charging provisions of Chapters 4 and 5

 

of Part 2 applied, includes any amount that would have been an

 

amount of exempt income if any of those charging provisions had

 

applied.

 

(7B)    

In subsection (7)(bb) “non-UK income tax” means a tax chargeable on

 

income under the law of a territory outside the United Kingdom that

 

corresponds to United Kingdom income tax.

 

(7C)    

A tax is not outside the scope of subsection (7B) by reason only that

 

it—

 

(a)    

is chargeable under the law of a province, state or other part

 

of a country, or

 

(b)    

is levied by or on behalf of a municipality or other local

 

body.””

 

Mr Chancellor of the Exchequer

 

Schedule  7,  page  312,  line  8,  at end insert—

 

“11A      

In section 446T (securities acquired for less than market value: amount of

 

notional loan), after subsection (3) insert—

 

“(3A)    

In subsection (3)(b) and (ba) the references to an amount of exempt

 

income, in a case in which the amount that constitutes, or is treated as,

 

earnings in respect of the acquisition is not an amount of general

 

earnings to which any of the charging provisions of Chapters 4 and 5

 

of Part 2 applies, includes any amount that would be an amount of

 

exempt income if any of those charging provisions were to apply.”

 

Mr Chancellor of the Exchequer

 

Schedule  7,  page  312,  line  10,  at end insert—

 

“12A      

In section 480 (securities options: deductible amounts), after subsection (5)

 

insert—


 
 

Consideration of Bill:                               

446

 

, continued

 
 

“(5A)    

In subsection (5)(a) the reference to an amount of exempt income, in

 

a case in which the amount that constituted earnings in respect of the

 

acquisition was not an amount of general earnings to which any of the

 

charging provisions of Chapters 4 and 5 of Part 2 applied, includes any

 

amount that would have been an amount of exempt income if any of

 

those charging provisions had applied.”

 

Mr Chancellor of the Exchequer

 

Schedule  7,  page  313,  line  26,  at end insert—

 

“23A      

In section 149AA (restricted and convertible employment-related securities

 

and employee shareholder shares), in subsection (7)—

 

(a)    

after “include” insert “—

 

(a)    

”, and

 

(b)    

at the end insert “, or

 

(b)    

in a case in which the amount that constituted, or was

 

treated as, earnings was not an amount of general

 

earnings to which any of the charging provisions of

 

Chapters 4 and 5 of Part 2 of ITEPA 2003 applied,

 

any amount that would have been an amount of such

 

exempt income if any of those charging provisions

 

had applied.””

 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  328,  line  20,  after “charity,” insert—

 

“( )    

an accredited social impact contractor (see section 257JD),”

 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  330,  line  33,  after “Part” insert “(except section 257JD)”

 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  330,  line  34,  at end insert—

 

“257JD 

Accreditation as a social impact contractor

 

(1)    

In this Part “accredited social impact contractor” means a company

 

limited by shares that is accredited under this section as a social impact

 

contractor.

 

(2)    

Applications for accreditation as a social impact contractor must be

 

made to a Minister of the Crown in the form and manner specified by

 

a Minister of the Crown.

 

(3)    

A Minister of the Crown is to accredit a company if, but only if, that

 

Minister is satisfied that—

 

(a)    

the company has entered into a social impact contract (see

 

section 257JE),


 
 

Consideration of Bill:                               

447

 

, continued

 
 

(b)    

the company is, and at all times since its incorporation has

 

been, established—

 

(i)    

for the purpose of entering into and carrying out a

 

social impact contract, or for that purpose and

 

purposes incidental to it, but

 

(ii)    

for no other purpose, and

 

(c)    

the activities of the company in carrying out that contract will

 

not consist wholly, or as to a substantial part, in excluded

 

activities (see section 257MQ).

 

(4)    

If a Minister of the Crown is satisfied that the condition in subsection

 

(3)(b) or (c) has ceased to be met in relation to a company that is an

 

accredited social impact contractor, that Minister is to withdraw the

 

company’s accreditation with effect from the time the condition

 

ceased to be met or a later time.

 

257JE

Meaning of “social impact contract”

 

(1)    

In this Part “social impact contract” means a contract that meets such

 

criteria as may be specified in regulations made by the Treasury.

 

(2)    

The criteria which may be specified under subsection (1) include, in

 

particular, criteria as to a party to the contract other than the company

 

seeking accreditation.

 

(3)    

Criteria may be specified in regulations under subsection (1) by

 

reference to material published by, or on behalf of, a Minister of the

 

Crown after the making of the regulations (as well as by reference to

 

material published before the making of the regulations).

 

(4)    

Regulations under subsection (1) may make different provision for

 

different cases or circumstances or in relation to different areas.

 

257JF

Accreditations: supplementary provisions

 

(1)    

An accreditation must be made so as to be conditional on compliance

 

with—

 

(a)    

any requirements imposed by or under regulations, and

 

(b)    

any other requirements considered appropriate by the

 

Minister of the Crown who is accrediting the company

 

concerned.

 

(2)    

The requirements that may be imposed by virtue of subsection (1)

 

include requirements relating to the provision of information.

 

(3)    

Regulations may—

 

(a)    

make further provision about applications for accreditation,

 

(b)    

make provision for the variation of an accreditation (including

 

its provisions as to its duration),

 

(c)    

make provision which, in a case where a company is or has

 

been an accredited social impact contractor, imposes or

 

authorises the imposition of requirements on the company, or

 

on any other party to the social impact contract concerned, to

 

provide information,

 

(d)    

make provision about the consequences of a failure to comply

 

with any requirement of an accreditation imposed by virtue of

 

subsection (1) or with any requirement imposed by virtue of

 

paragraph (c), including in particular—


 
 

Consideration of Bill:                               

448

 

, continued

 
 

(i)    

provision for the withdrawal of the accreditation

 

concerned with effect from the time of the failure or a

 

later time, and

 

(ii)    

provision for the imposition of penalties,

 

(e)    

make provision for publication of information about an

 

accreditation or accredited social impact contractor, and

 

(f)    

make provision for reviews of, or for appeals to the tribunal

 

against, any of the following—

 

(i)    

a refusal to grant or vary an accreditation,

 

(ii)    

the imposition of a requirement under subsection

 

(1)(b),

 

(iii)    

the withdrawal of an accreditation (whether under

 

section 257JD(4) or by virtue of provision made

 

under paragraph (d)(i)), and

 

(iv)    

the imposition or amount of a penalty imposed by

 

virtue of provision made under paragraph (d)(ii).

 

(4)    

Regulations under subsection (1) or (3) may—

 

(a)    

make provision for the making of decisions by a Minister of

 

the Crown as to any matter required to be decided for the

 

purposes of the regulations,

 

(b)    

be framed by reference to material published by, or on behalf

 

of, a Minister of the Crown after the making of the regulations

 

(as well as by reference to material published before the

 

making of the regulations),

 

(c)    

make different provision for different cases or circumstances

 

or in relation to different areas, and

 

(d)    

contain incidental, supplemental, consequential and

 

transitional provision and savings.

 

(5)    

In this section—

 

“accreditation” means accreditation under section 257JD, and

 

“regulations” means regulations made by the Treasury.

 

257JG

Period of accreditation as a social impact contractor

 

(1)    

An accreditation under section 257JD has effect for a period—

 

(a)    

beginning with the day specified in the accreditation, and

 

(b)    

of a length specified in, or determined in accordance with, the

 

accreditation.

 

(2)    

The day specified under subsection (1)(a) in an accreditation may not

 

be earlier than 6 April 2014 but subject to that—

 

(a)    

may be, or be earlier than, the day it is decided to grant the

 

accreditation (and in particular may be, or be earlier than, the

 

day the application for the accreditation is made), and

 

(b)    

may be earlier than the day section 257JD comes into force.

 

(3)    

This section has effect subject to sections 257JD(4) and 257JF(3)(d)(i)

 

(withdrawal of accreditations).

 

257JH

Functions of Ministers of the Crown under sections 257JD to 257JG

 

(1)    

A Minister of the Crown may delegate any function given to a Minister

 

of the Crown by or under sections 257JD to 257JG other than a power

 

of the Treasury to make regulations.


 
 

Consideration of Bill:                               

449

 

, continued

 
 

(2)    

In those sections and this section “Minister of Crown” has the meaning

 

given by section 8(1) of the Ministers of the Crown Act 1975.”

 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  331,  line  1,  at end insert—

 

“( )    

Subsection (1)(b) is subject to the provisions in sections 257LB and

 

257MJ to 257MN which provide for conditions set out in those

 

sections not to apply where the social enterprise is an accredited social

 

impact contractor.”

 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  334,  line  44,  at end insert—

 

“( )    

Subsections (2) to (4) do not apply if the social enterprise is an

 

accredited social impact contractor.”

 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  335,  line  12,  after “257MJ(2)(c)” insert “or is a parent company

 

that is an accredited social impact contractor”

 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  339,  line  23,  at end insert—

 

“257M

The continuing to be a social enterprise requirement

 

The social enterprise must be a social enterprise throughout the shorter

 

applicable period.”

 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  343,  line  11,  after “period” insert “, but this does not apply if the

 

social enterprise is an accredited social impact contractor”

 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  343,  line  15,  after “business” insert “—

 

(i)    

 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  343,  line  17,  leave out “non-qualifying” and insert “non-trade

 

activities, and

 

(ii)    

does not consist wholly, or as to a substantial part, in the

 

carrying-on of excluded”


 
 

Consideration of Bill:                               

450

 

, continued

 
 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  344,  line  14,  at end insert “, and

 

“non-trade activities” means activities which are neither of the

 

following—

 

(c)    

activities carried on in the course of a trade, and

 

(d)    

activities carried on in the course of preparing to carry on a

 

trade.”

 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  345,  line  26,  at end insert—

 

“( )    

This section does not apply if the social enterprise is an accredited

 

social impact contractor.”

 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  346,  line  19,  at end insert—

 

“( )    

If the social enterprise is an accredited social impact contractor, the

 

preceding provisions of this section apply with the following

 

modifications—

 

(a)    

in subsection (1), for “28 months” substitute “24 months”,

 

(b)    

in that subsection, for “the funded purpose” substitute “the

 

carrying out of the social impact contract concerned”, and

 

(c)    

omit subsections (2), (3), (5) and (6).”

 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  347,  line  7,  at end insert—

 

“( )    

This section does not apply if the social enterprise is an accredited

 

social impact contractor.”

 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  347,  line  20,  at end insert “257JD,”

 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  353,  line  10,  at end insert—

 

“( )    

If the social enterprise is an accredited social impact contractor,

 

subsection (1) applies with the omission of its paragraph (a).”

 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  354,  line  8,  at end insert—

 

“( )    

If the social enterprise is an accredited social impact contractor,

 

subsection (3) applies with the omission of its paragraph (a).”


 
 

Consideration of Bill:                               

451

 

, continued

 
 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  355,  line  8,  at end insert—

 

“( )    

An order under this section may make different provision for different

 

cases or purposes.”

 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  372,  line  31,  leave out “257MA” and insert “257M”

 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  373,  line  24,  after “sections” insert “257M,”

 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  374,  line  13,  at end insert—

 

“(7)    

If the event mentioned in subsection (1) is one whose occurrence

 

results in the requirement in section 257M not being met in respect of

 

the investment, the references in subsections (2) and (3) to the social

 

enterprise are to—

 

(a)    

the body concerned even though it has ceased to be a social

 

enterprise, or

 

(b)    

the body into which the social enterprise has been converted.”

 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  376,  line  11,  after “prevent” insert “—

 

(a)    

 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  376,  line  12,  at end insert—

 

“(b)    

disclosure to a Minister of the Crown for the purposes of

 

functions of a Minister of the Crown under sections 257JD to

 

257JG, or

 

(c)    

disclosure to a person for the purposes of functions delegated

 

to the person under section 257JH(1).”

 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  376,  line  18,  after “Information” insert “originally disclosed in

 

reliance on subsection (2)(a)”

 

Mr Chancellor of the Exchequer

 

Schedule  9,  page  376,  line  19,  at end insert—

 

“(5)    

Information originally disclosed in reliance on subsection (2)(b) or (c)

 

may be disclosed in reliance on subsection (3)(a) only for the purposes

 

of—


 
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