Session 2014 - 15
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317

 

House of Commons

 
 

Notices of Amendments

 

given up to and including

 

Friday 27 June 2014

 

New Amendments handed in are marked thus Parliamentary Star

 

Parliamentary Star - whiteAmendments which will comply with the required notice period at their next appearance

 

Consideration of Bill


 

Finance Bill, As Amended


 

Note

 

The Amendments have been arranged in accordance with the Finance Bill

 

(Programme) (No. 2) Motion to be proposed by Mr Chancellor of the Exchequer.

 


 

NEW CLAUSES AND NEW SCHEDULES RELATING TO THE SUBJECT MATTER OF CLAUSE

 

1; aMENDMENTS TO CLAUSE 1

 

Ed Balls

 

Chris Leslie

 

Cathy Jamieson

 

Catherine McKinnell

 

Shabana Mahmood

 

NC14

 

Parliamentary Star - white    

To move the following Clause—

 

“Report on the additional rate of income tax

 

(1)    

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

 

Act, publish a report on the additional rate of income tax.

 

(2)    

The report shall set out the impact upon Exchequer receipts of setting the

 

additional rate at 50 per cent in the tax year 2015-16.

 

(3)    

The report shall set out the impact of reducing the additional rate for 2013-14 on

 

the amount of income tax paid by—

 

(a)    

all people who are liable for the additional rate;

 

(b)    

those with taxable incomes of over £250,000 per year; and

 

(c)    

those with taxable incomes of over £1,000,000 per year.


 
 

Notices of Amendments: 27 June 2014                     

318

 

Finance Bill, continued

 
 

(4)    

The report shall set out the impact of the reduction in the additional rate for 2013-

 

14 on the level of bonuses awarded in April 2013 to employees in the financial

 

sector.”

 


 

NEW CLAUSES AND NEW SCHEDULES RELATING TO STAMP DUTY LAND TAX;

 

AMENDMENTS TO CLAUSES 105 TO 107 AND SCHEDULE 19

 

Mr Chancellor of the Exchequer

 

NC7

 

To move the following 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.”

 


 

Ed Balls

 

Chris Leslie

 

Cathy Jamieson

 

Catherine McKinnell

 

Shabana Mahmood

 

67

 

Clause  107,  page  90,  line  33,  at end insert—

 

‘(5A)    

The Chancellor of the Exchequer shall, within six months of this Act receiving

 

Royal Assent, publish and lay before the House of Commons a report setting out

 

the impact of changes made to Schedule 19 of the Finance Act 1999 by this

 

section.

 

(5B)    

The report referred to in subsection (5A) must in particular consider—

 

(a)    

the impact on tax revenues;


 
 

Notices of Amendments: 27 June 2014                     

319

 

Finance Bill, continued

 
 

(b)    

the expected beneficiaries; and

 

(c)    

a distributional analysis of the beneficiaries.”

 


 

NEW CLAUSES AND NEW SCHEDULES RELATING TO EMPLOYEE SHAREHOLDER SHARES

 

Ed Balls

 

Chris Leslie

 

Cathy Jamieson

 

Catherine McKinnell

 

Shabana Mahmood

 

NC11

 

To move the following Clause—

 

“Capital gains tax and employee shareholders

 

(1)    

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

 

Act, undertake a review of the impact on tax revenues of employee shareholder

 

status as defined by section 205A of the Employment Rights Act 1996, and set

 

out the conclusion of the review in a report.

 

(2)    

The report referred to in subsection (1) above must in particular set out—

 

(a)    

the impact on total capital gains tax receipts paid to the Exchequer arising

 

from the capital gains exemptions under section 236B of the Taxation of

 

Chargeable Gains Act 1992;

 

(b)    

the estimated value of shares owned by employees working in employee

 

shareholder jobs and the number of such employees.

 

(3)    

The Chancellor of the Exchequer must publish the report of the review and lay

 

the report before the House.

 

(4)    

Subsequent reviews must be completed before the end of each period of 12

 

months beginning with the date on which the previous review was completed.”

 


 

NEW CLAUSES AND NEW SCHEDULES RELATING TO TAX ARRANGEMENTS THAT ARE

 

ABUSIVE

 

Ed Balls

 

Chris Leslie

 

Cathy Jamieson

 

Catherine McKinnell

 

Shabana Mahmood

 

NC12

 

To move the following Clause—

 

“Report on tax advantages arising from tax arrangements that are abusive

 

(1)    

The Chancellor of the Exchequer shall, within six months of this Act receiving

 

Royal Assent, publish and lay before the House of Commons a report setting out

 

further proposals to reduce the tax advantages arising from tax arrangements that

 

are abusive.


 
 

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320

 

Finance Bill, continued

 
 

(2)    

The report referred to in subsection (1) must in particular include proposals

 

about—

 

(a)    

the exemption from the obligation to deduct tax on yearly interest in

 

respect of interest received on a quoted Eurobond contained in section

 

882 of the Income Tax Act 2007;

 

(b)    

disguised employment in the construction sector; and

 

(c)    

the use of dormant companies as a means of tax avoidance.

 

(3)    

The report referred to in subsection (1) must set out the estimated impact of the

 

proposals contained in the report on the total receipts paid to the Exchequer.”

 


 

NEW CLAUSES AND NEW SCHEDULES RELATING TO PENSIONS; AMENDMENTS TO

 

CLAUSES 39 TO 43; AMENDMENTS TO SCHEDULES 4 AND 5

 

Mr Chancellor of the Exchequer

 

NC13

 

Parliamentary Star - white    

To move the following Clause—

 

“Pension flexibility: further amendments

 

Schedule (Pension flexibility: further amendments) makes further provision in

 

connection with pension flexibility.”

 


 

Ed Balls

 

Chris Leslie

 

Cathy Jamieson

 

Catherine McKinnell

 

Shabana Mahmood

 

NC9

 

To move the following Clause—

 

“Pension flexibility: Treasury analysis

 

(1)    

The Chancellor of the Exchequer shall, within six months of this Act receiving

 

Royal Assent, publish and lay before the House of Commons any analysis

 

prepared by the Treasury prior to the publication of Budget 2014 relating to the

 

impact of changes made by sections 39 to 43 of this Act to schedules 28 and 29

 

to the Finance Act 2004.

 

(2)    

The information published under subsection (1) must include—

 

(a)    

any assessment made of the impact of the provision for independent face

 

to face guidance on the 2004 Act;

 

(b)    

the distributional impact, by income decile of the population, of changes

 

made by sections 39 to 43 of this Act;

 

(c)    

a behavioural analysis; and

 

(d)    

the financial risk assessment.”

 



 
 

Notices of Amendments: 27 June 2014                     

321

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

NS5

 

Parliamentary Star - white    

To move the following Schedule—

 

“Pension flexibility: further amendments

 

Temporary extension of period by which commencement lump sum may precede pension

 

1          

In Schedule 29 to FA 2004 (authorised lump sums under registered pension

 

schemes) after paragraph 1 (conditions for a lump sum to be a pension

 

commencement lump sum) insert—

 

“1A(1)  

Paragraph 1(1)(c) is to be omitted when deciding whether a lump

 

sum to which this paragraph applies is a pension commencement

 

lump sum.

 

      (2)  

This paragraph applies to a lump sum if—

 

(a)    

the sum is paid in respect of a money purchase

 

arrangement,

 

(b)    

the sum is paid before the member becomes entitled to the

 

sum,

 

(c)    

either—

 

(i)    

the sum is paid on or after 19 September 2013 but

 

before 6 April 2015, or

 

(ii)    

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, and

 

(d)    

the member becomes entitled to the sum before 6 October

 

2015.

 

      (3)  

Where—

 

(a)    

a lump sum to which this paragraph applies is a pension

 

commencement lump sum but would not be a pension

 

commencement lump sum if sub-paragraph (1) were

 

omitted, and

 

(b)    

the lump sum is paid to the member in connection with a

 

pension under the scheme to which it is expected that the

 

member will become entitled (“the expected pension”),

 

            

no lump sum paid to the member out of the expected-pension fund

 

is a pension commencement lump sum; and here “the expected-

 

pension fund” means the sums and assets that from time to time

 

represent the sums and assets that, when the lump sum mentioned

 

in paragraph (a) was paid, were held for the purpose of providing

 

the expected pension.

 

      (4)  

For the purposes of sub-paragraph (2), if the circumstances are as

 

described in sub-paragraph (2)(c)(ii), the member is treated as not

 

having become entitled to the arranged pension as a result of the

 

cancelled contract having been entered into; and here “the arranged

 

pension” means the pension that would have been provided by that

 

contract had it not been cancelled.”


 
 

Notices of Amendments: 27 June 2014                     

322

 

Finance Bill, continued

 
 

Temporary relaxation to allow transfer of pension rights after lump sum paid

 

2    (1)  

In Schedule 29 to FA 2004 after paragraph 1A insert—

 

“1B(1)  

When deciding whether a lump sum to which this paragraph applies

 

is a pension commencement lump sum—

 

(a)    

paragraph 1(1)(aa) and (c) and (3) are to be omitted,

 

(b)    

paragraph 1(4) is to be treated as referring to the actual

 

pension (see sub-paragraph (2)(h) of this paragraph), and

 

(c)    

paragraph 2(2) is to be treated as referring to the

 

arrangement under which the member was expected to

 

become entitled to the expected pension (see sub-paragraph

 

(2)(b) of this paragraph).

 

      (2)  

This paragraph applies to a lump sum if—

 

(a)    

the sum is paid in respect of a money purchase

 

arrangement,

 

(b)    

the sum is paid to the member in connection with a pension

 

under a registered pension scheme to which it is expected

 

that the member will become entitled (“the expected

 

pension”),

 

(c)    

the expected pension is income withdrawal, a lifetime

 

annuity or a scheme pension,

 

(d)    

the sum is paid before the member becomes entitled to the

 

expected pension,

 

(e)    

either—

 

(i)    

the sum is paid on or after 19 September 2013 but

 

before 6 April 2015, or

 

(ii)    

the sum is paid before 19 September 2013, a

 

contract for a lifetime annuity is entered into to

 

provide the expected pension, and on or after 19

 

March 2014 the contract is cancelled,

 

(f)    

the sum is not repaid at any time before 6 October 2015,

 

(g)    

before the member becomes entitled to the expected

 

pension, there is a recognised transfer of the sums and

 

assets that immediately before the transfer represent the

 

sums and assets that when the sum was paid were held for

 

the purpose of providing the expected pension,

 

(h)    

the member becomes entitled before 6 October 2015 to a

 

pension under the scheme to which the recognised transfer

 

is made (“the actual pension”),

 

(i)    

the actual pension is income withdrawal, a lifetime annuity

 

or a scheme pension, or some combination of them, and

 

(j)    

all of the sums and assets that represent the sums and assets

 

transferred by the recognised transfer are used to provide

 

the actual pension.

 

      (3)  

If a lump sum to which this paragraph applies is a pension

 

commencement lump sum, any lump sum paid—

 

(a)    

to the member,

 

(b)    

by the scheme to which the recognised transfer mentioned

 

in sub-paragraph (2)(g) is made or by any other registered

 

pension scheme (including the scheme from which the

 

transfer was made), and


 
 

Notices of Amendments: 27 June 2014                     

323

 

Finance Bill, continued

 
 

(c)    

in connection with the member’s becoming entitled to the

 

actual pension,

 

            

is not a pension commencement lump sum.

 

      (4)  

For the purposes of sub-paragraph (2), if the circumstances are as

 

described in sub-paragraph (2)(e)(ii), the member is treated as not

 

having become entitled to the expected pension as a result of the

 

cancelled contract having been entered into.”

 

      (2)  

In section 166(2) of FA 2004 (time at which a person becomes entitled to a

 

lump sum)—

 

(a)    

before paragraph (a) insert—

 

“(za)    

in the case of a pension commencement lump sum to

 

which paragraph 1B of Schedule 29 applies (certain

 

sums paid before 6 April 2015), immediately before

 

the person becomes entitled to the actual pension (see

 

paragraph 1B(2)(h) of that Schedule),”, and

 

(b)    

in paragraph (a) for “of a” substitute “of any other”.

 

Temporary relaxation to allow lump sum to be repaid to pension scheme that paid it

 

3          

In Chapter 3 of Part 4 of FA 2004 (payments by registered pension schemes)

 

after section 185I insert—

 

“Repayments of lump sums

 

185J  

Effect of repayment of certain pre-6 April 2015 lump sums

 

(1)    

For the purposes of this Part—

 

(a)    

a lump sum to which this section applies is treated as never

 

having been paid, and

 

(b)    

the payment by which it is repaid is treated as not being a

 

payment.

 

(2)    

This section applies to a lump sum if—

 

(a)    

the sum is paid by a registered pension scheme to a member

 

of the scheme in respect of a money purchase arrangement,

 

(b)    

the sum is paid to the member in connection with a pension

 

under the scheme to which it is expected that the member will

 

become entitled (“the expected pension”),

 

(c)    

the expected pension is income withdrawal, a lifetime annuity

 

or a scheme pension,

 

(d)    

the sum is paid before the member becomes entitled to the

 

expected pension,

 

(e)    

either—

 

(i)    

the sum is paid on or after 19 September 2013 but

 

before 6 April 2015, or

 

(ii)    

the sum is paid before 19 September 2013, a contract

 

for a lifetime annuity is entered into to provide the

 

expected pension, and on or after 19 March 2014 the

 

contract is cancelled,

 

(f)    

before the member becomes entitled to the expected pension,

 

the member repays the sum to the pension scheme that paid it,

 

and

 

(g)    

the repayment is made before 6 October 2015.


 
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Revised 27 June 2014