House of Commons Amendments

Session 2014 - 15
Internet Publications
Other Bills before Parliament

Finance Bill
EUROPEAN CONVENTION ON HUMAN RIGHTS
Lord Deighton has made the following statement under section 19(1)(a) of the Human Rights Act 1998:

In my view the provisions of the Finance Bill are compatible with the Convention rights.
AMENDMENTS
The following amendments should be read together with House of Commons Bill 10—I and 10—II to
which they relate. These amendments have been made by the House of Commons to that Bill.
After Clause 35
Insert the following new Clause—
“Tax relief for theatrical production
Schedule (Tax relief for theatrical production) contains provision about relief
in respect of theatrical productions.”
After Clause 38
Insert the following new 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 Ministers, a Northern
Ireland department or a statutory body,”,
and
(b)
after that subsection insert—

2

“(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.”
After Clause 40
Insert the following new Clause—
“Pension flexibility: further amendments
Schedule (Pension flexibility: further amendments) makes further provision in
connection with pension flexibility.”
After Clause 52
Insert the following new 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

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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.”

(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

4

(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 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

5

(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.”
After Clause 60
Insert the following new 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).”
Clause 61
Page 52, line 12, leave out “(EC) No 800/2008” and insert “(EU) No 651/2014”
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.”
After Clause 67
Insert the following new 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.”
Clause 73
Page 61, line 18, leave out “as follows” and insert “in accordance with subsections
(2) to (10)”
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)—

6

(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).”
After Clause 105
Insert the following new 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.”
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 197 was 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,
(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.”
Page 138, line 43, at end insert—

7

“(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.”
After Clause 290
Insert the following new 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.”
Clause 291
Page 199, leave out lines 23 to 29
After Schedule 3
Insert the following new Schedule—
“Tax relief for theatrical production
Amendments of CTA 2009
1
Before Part 16 of CTA 2009 insert—
theatrical productions
Introduction
1217F
Overview
(1)
This Part contains provision about tax relief for production
companies in respect of their theatrical productions.
(2)
Sections 1217FA to 1217FC define “production company” and
“theatrical production”.
(3)
Section 1217G sets out the conditions a production company
must meet to qualify for relief in relation to its theatrical
production.
(4)
Section 1217H provides for relief by way of additional
deductions in respect of certain expenditure (and section 1217J is
about the amount of the additional deduction).
(5)
This Part also contains provision—



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