Session 2014 - 15
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Consideration of Bill:                               

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Finance Bill, continued

 
 

“theatrical production” has the same meaning as in Part 15C (see section

 

1217FA);

 

“theatrical production company” means a company which, for the

 

purposes of that Part, is the production company in relation to a

 

theatrical production (see section 1217FC).”

 

11         

In section 1040ZA of CTA 2009 (additional relief for expenditure on research

 

and development), after subsection (3) insert—

 

“(4)    

For provision prohibiting relief being given under this Part and under

 

section 1217H or 1217K (theatrical productions: additional deduction

 

or theatre tax credit), see section 1217JA(2).”

 

12         

In section 1310 of CTA 2009 (orders and regulations), in subsection (4), after

 

paragraph (ej) insert—

 

“(ek)    

section 1217GB(4) (EEA expenditure condition),

 

(el)    

section 1217J(4) (amount of additional deduction),

 

(em)    

section 1217O (activities involved in developing, producing,

 

running or closing a production),”.

 

13         

In Schedule 4 to CTA 2009 (index of defined expressions) at the appropriate

 

place insert—

 

“commercial purpose

section 1217OB”;

 
 

condition (in Part 15C)

  
 

“company tax return (in

section 1217OA”;

 
 

Part 15C)

  
 

“core expenditure (in Part

section 1217GC”;

 
 

15C)

  
 

“costs of a theatrical

section 1217IC”;

 
 

production (in Part 15C)

  
 

“EEA expenditure (in Part

section 1217GB”;

 
 

15C)

  
 

“EEA expenditure

section 1217OB”;

 
 

condition (in Part 15C)

  
 

“income from a theatrical

section 1217IC”;

 
 

production (in Part 15C)

  
 

“production company (in

section 1217FC”;

 
 

Part 15C)

  
 

“qualifying expenditure (in

section 1217JA”;

 
 

Part 15C)

  
 

“the separate theatrical

section 1217OB”;

 
 

trade (in Part 15C)

  
 

“theatrical production (in

section 1217FA”.

 
 

Part 15C)

  

 
 

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Finance Bill, continued

 
 

FA 2009

 

14         

In Schedule 54A to FA 2009 (which is prospectively inserted by F(No. 3)A

 

2010 and contains provision about the recovery of certain amounts of interest

 

paid by HMRC), in paragraph 2—

 

(a)    

in sub-paragraph (2), omit the “or” at the end of paragraph (f) and after

 

paragraph (g) insert “, or

 

(h)    

a payment of theatre tax credit under section

 

1217K of CTA 2009 for an accounting period.”;

 

(b)    

in sub-paragraph (4), for “(e)” substitute “(h)”.

 

CTA 2010

 

15  (1)  

Section 357CG of CTA 2010 (profits arising from the exploitation of patents

 

etc: adjustments in calculating profits of trade) is amended as follows.

 

      (2)  

In subsection (3), omit the “and” at the end of paragraph (c) and after

 

paragraph (d) insert “, and

 

(e)    

the amount of any additional deduction for the accounting

 

period obtained by the company under Part 15C of CTA 2009

 

in respect of qualifying expenditure on a theatrical

 

production.”

 

      (3)  

In subsection (6)—

 

(a)    

in the definition of “qualifying expenditure”, omit the “and” at the end

 

of paragraph (a) and after paragraph (b) insert “, and

 

(c)    

in relation to a company that is the

 

production company (as defined in section

 

1217FC of that Act) in relation to a

 

theatrical production, has the same

 

meaning as in Part 15C of that Act,”;

 

(b)    

omit the “and” at the end of the definition of “television production

 

company” and after that definition insert—

 

““theatrical production” has the same meaning as in Part 15C of

 

CTA 2009 (see section 1217FA of that Act), and”.

 

Commencement

 

16  (1)  

Any power to make regulations conferred on the Treasury by virtue of this

 

Schedule comes into force on the day on which this Act is passed.

 

      (2)  

So far as not already brought into force by sub-paragraph (1), the amendments

 

made by this Schedule come into force in accordance with provision contained

 

in an order made by the Treasury.

 

      (3)  

An order under sub-paragraph (2) may make different provision for different

 

purposes.

 

17  (1)  

The amendments made by this Schedule have effect in relation to accounting

 

periods beginning on or after 1 September 2014.

 

      (2)  

Sub-paragraph (3) applies where a company has an accounting period

 

beginning before 1 September 2014 and ending on or after that date (“the

 

straddling period”).

 

      (3)  

For the purposes of Part 15C of CTA 2009—

 

(a)    

so much of the straddling period as falls before 1 September 2014, and

 

so much of that period as falls on or after that date, are treated as

 

separate accounting periods, and


 
 

Consideration of Bill:                               

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Finance Bill, continued

 
 

(b)    

any amounts brought into account for the purposes of calculating for

 

corporation tax purposes the profits of a trade for the straddling period

 

are apportioned to the two separate accounting periods on such basis

 

as is just and reasonable.”

 


 

Mr Chancellor of the Exchequer

 

Clause  61,  page  52,  line  12,  leave out “(EC) No 800/2008” and insert “(EU) No

 

651/2014”

 

Mr Chancellor of the Exchequer

 

Clause  61,  page  52,  line  41,  at end insert—

 

“( )    

In the application of section 360L of CAA 2001 in relation to expenditure

 

incurred before the day on which this Act is passed, the definition of “General

 

Block Exemption Regulation” in subsection (6) of that section is to be treated as

 

referring to Commission Regulation (EC) No 800/2008.”

 

Mr Chancellor of the Exchequer

 

Clause  73,  page  61,  line  18,  leave out “as follows” and insert “in accordance with

 

subsections (2) to (10)”

 

Mr Chancellor of the Exchequer

 

Clause  73,  page  62,  line  9,  at end insert—

 

“( )    

Accordingly, in section 1 of the Air Passenger Duty (Setting of Rate) Act

 

(Northern Ireland) 2012 (setting of rate of air passenger duty)—

 

(a)    

in subsection (1)—

 

(i)    

omit “(3)(a) and (b), (4)(a) and (b),”, and

 

(ii)    

for “(5A)(a), (b) and (c)” substitute “(5A)(c)”, and

 

(b)    

omit subsections (2) to (5), (8) and (9).”

 

Mr Chancellor of the Exchequer

 

Clause  207,  page  138,  line  23,  at end insert—

 

“(2A)    

The grounds on which an appeal under subsection (1) may be made include in

 

particular—

 

(a)    

that Condition A, B or D in section 197was not met in relation to the

 

follower notice,

 

(b)    

that the judicial ruling specified in the notice is not one which is relevant

 

to the chosen arrangements,


 
 

Consideration of Bill:                               

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Finance Bill, continued

 
 

(c)    

that the notice was not given within the period specified in subsection (6)

 

of that section, or

 

(d)    

that it was reasonable in all the circumstances for P not to have taken the

 

necessary corrective action (see section 201(4)) in respect of the denied

 

advantage.”

 

Mr Chancellor of the Exchequer

 

Clause  207,  page  138,  line  43,  at end insert—

 

“(8A)    

The cancellation under subsection (7) of HMRC’s decision on the ground

 

specified in subsection (2A)(d) does not affect the validity of the follower notice,

 

or of any accelerated payment notice or partner payment notice under Chapter 3

 

related to the follower notice.”

 

Mr Chancellor of the Exchequer

 

Clause  291,  page  199,  leave out lines 23 to 29

 

Mr Chancellor of the Exchequer

 

Schedule  6,  page  273,  line  29,  at end insert—

 

“139A (1)  

Section 94A of ITTOIA 2005 (costs of setting up SAYE option scheme or

 

CSOP scheme) is amended as follows.

 

      (2)  

In subsection (1)—

 

(a)    

in paragraph (a) omit “that is approved by an officer of Revenue and

 

Customs”, and

 

(b)    

omit paragraph (b) and the “and” before it.

 

      (3)  

In subsection (2)—

 

(a)    

at the beginning of paragraph (a) insert “Schedule 3”,

 

(b)    

at the beginning of paragraph (b) insert “Schedule 4”, and

 

(c)    

omit the final sentence.

 

      (4)  

In subsection (4) for “approval is given” (in both places) substitute “relevant

 

date falls”.

 

      (5)  

After subsection (4) insert—

 

“(4A)    

In subsection (4) “the relevant date”—

 

(a)    

in relation to a Schedule 3 SAYE option scheme, has the

 

meaning given in paragraph 40A(6) of Schedule 3 to ITEPA

 

2003, and

 

(b)    

in relation to a Schedule 4 CSOP scheme, has the meaning

 

given in paragraph 28A(6) of Schedule 4 to ITEPA 2003.””

 

Mr Chancellor of the Exchequer

 

Schedule  6,  page  276,  line  42,  after “under” insert “section 94A of ITTOIA 2005

 

or”


 
 

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Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

Schedule  6,  page  294,  line  48,  leave out “paragraph 141” and insert “paragraphs

 

139A and 141”

 

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.”


 
 

Consideration of Bill:                               

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Finance Bill, continued

 
 

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—

 

“(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.


 
 

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Finance Bill, continued

 
 

(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),

 

(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


 
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