House of Commons Amendments

Session 2014 - 15
Internet Publications
Other Bills before Parliament

247

House of Commons

Notices of Amendments

given on

Monday 23 June 2014

Consideration of Bill

Finance Bill, As Amended

Mr Chancellor of the Exchequer

1

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,

(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

2

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

3

Schedule  27,  page  535,  line  45,  at end insert—

  “(7A)
Section 207(2A) applies to an appeal by virtue of sub-paragraph (7)(a) as it

applies to an appeal under section 207(1).”

Mr Chancellor of the Exchequer

4

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

Notices of Amendments: 23 June 2014
248

Finance Bill, continued

Mr Chancellor of the Exchequer

5

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

subsections (2) to (10)”

Mr Chancellor of the Exchequer

6

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

7

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

8

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

Notices of Amendments: 23 June 2014
249

Finance Bill, continued

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

9

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

10

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

11

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”—

Notices of Amendments: 23 June 2014
250

Finance Bill, continued

(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

12

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

or”

Mr Chancellor of the Exchequer

13

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

139A and 141”

Mr Chancellor of the Exchequer

14

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

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

NS1

To move the following Schedule—

“Oil contractors: ring-fence trade etc

CTA 2010

1
CTA 2010 is amended as follows.

2
In section 1 (overview of Act), in subsection (3), after paragraph (a) insert—

“(aa)
oil contractor activities (see Part 8ZA),

(ab)
profits arising from the exploitation of patents etc (see Part

8A),”.

3
In Chapter 4 of Part 8 (oil activities: calculation of profits), after section 285

insert—

“Hire of relevant assets

285A
Restriction on hire etc of relevant assets to be brought into account

(1)
This section applies if—

(a)
oil contractor activities are, or are to be, carried out, and

(b)
a company that carries on a ring fence trade makes, or is to

make, one or more payments under a lease of a relevant asset,

Notices of Amendments: 23 June 2014
251

Finance Bill, continued

or part of a relevant asset, which is, or is to be, provided,

operated or used in the relevant offshore service in question.

(2)
The total amount that may be brought into account in respect of the

payments for the purposes of calculating the company’s ring fence

profits in an accounting period is limited to the hire cap.

(3)
The “hire cap” is an amount equal to the relevant percentage of TC for

the accounting period, subject to subsection (4).

(4)
If payments in relation to which subsection (2) or section 356N(2)

(restriction on hire for oil contractors under Part 8ZA) applies are also

made, or to be made, by one or more other companies in respect of the

relevant asset or part, the “hire cap” is to be such proportion of the

amount mentioned in subsection (3) as is just and reasonable, having

regard (in particular) to the amounts of the payments made, or to be

made, by each company.

(5)
The “relevant percentage” and TC are to be determined in accordance

with section 356N(5) to (16).

(6)
To the extent that, by virtue of this section, payments within

subsection (1)(b) cannot be brought into account for the purposes of

calculating the company’s ring fence profits in an accounting period,

the payments may be—

(a)
allowed as a deduction from the company’s total profits for

the accounting period, or

(b)
treated as a surrenderable amount of the company for the

accounting period for the purposes of Part 5 (group relief) (see

section 99(7)) as if they were a trading loss,


but this is subject to subsection (7).

(7)
No deduction may be made by virtue of subsection (6) from total

profits so far as they are ring fence profits or contractor’s ring fence

profits.

(8)
If the company or an associated person enters into arrangements the

main purpose or one of the main purposes of which is to secure that

subsection (2) does not apply in relation to one or more payments to

any extent, that subsection applies in relation to the payments to the

extent that it would not otherwise do so.

(9)
In subsection (8) “arrangements” includes any agreement,

understanding, scheme, transaction or series of transactions (whether

or not legally enforceable).

(10)
In this section—

“associated person” has the meaning given by section 356LB;

“contractor’s ring fence profits” has the meaning given by section

356LD;

“oil contractor activities” and “relevant offshore service” have the

meaning given by section 356L;

“relevant asset” has the meaning given by section 356LA;

“lease” has the meaning given by section 868.”

4
After Part 8 (oil activities) insert—



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