Session 2014 - 15
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Notices of Amendments: 27 June 2014                     

331

 

Finance Bill, continued

 
 

20      

Lump sums to which paragraph 1B of Schedule 29 fails to apply

 

(1)    

Regulations 3 to 18 have effect subject to the following provisions of

 

this regulation.

 

(2)    

Paragraph (3) applies if—

 

(a)    

a lump sum is paid by a registered pension scheme (“the

 

paying scheme”) to a member of the scheme,

 

(b)    

paragraph 1B of Schedule 29 does not apply to the lump sum,

 

but the conditions in paragraph 1B(2)(a) to (g) are met in the

 

case of the lump sum, and

 

(c)    

as at the end of 5 October 2015 it is the case that the lump sum

 

is to be taken as having been an unauthorised member

 

payment.

 

(3)    

For the purposes of reportable event 1, and regulation 3 so far as

 

applying by virtue of that event, the lump sum is treated as having been

 

paid—

 

(a)    

by the receiving scheme and not by the paying scheme, and

 

(b)    

on 6 October 2015.”

 

      (2)  

The amendment made by sub-paragraph (1) is to be treated as having been

 

made by the Commissioners for Her Majesty’s Revenue and Customs under

 

such of the powers cited in the instrument containing the Regulations as are

 

applicable.

 

Scheme sanction charges

 

12  (1)  

In section 239(3) of FA 2004 (cases where person other than scheme

 

administrator is liable for a scheme sanction charge)—

 

(a)    

after “But” insert “—

 

(a)    

”, and

 

(b)    

at the end insert “, and

 

(b)    

in the case of a payment of a lump sum to a member

 

where the conditions in paragraphs 1(1)(b) and (d)

 

and 1B(2)(a) to (g) of Schedule 29 are met, the person

 

liable to the scheme sanction charge so far as relating

 

to any part of the lump sum within the permitted

 

maximum is the scheme administrator of the

 

registered pension scheme to which the transfer

 

mentioned in paragraph 1B(2)(g) of Schedule 29 is

 

made.”

 

      (2)  

In section 239 of FA 2004 (scheme sanction charges) after subsection (3)

 

insert—

 

“(3A)    

For the purposes of subsection (3)(b) “the permitted maximum”, in the

 

case of a lump sum paid to an individual, is the amount that in

 

accordance with paragraph 2 of Schedule 29 would be the permitted

 

maximum for that lump sum if the individual became entitled at the

 

time the lump sum is paid to the pension at that time expected to be the

 

pension in connection with which the lump sum is paid.”

 

      (3)  

In section 268 of FA 2004 (discharge of liability to scheme sanction charges

 

etc) after subsection (7) insert—

 

“(7A)    

Subsection (7) applies with the omission of its paragraph (a) if the

 

scheme chargeable payment is a payment of a lump sum where the

 

conditions in paragraph 1B(2)(a) to (g) of Schedule 29 are met.”


 
 

Notices of Amendments: 27 June 2014                     

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Finance Bill, continued

 
 

      (4)  

In the Taxation of Pension Schemes (Transitional Provisions) Order 2006

 

(S.I. 2006/572) in article 18 (which provides for paragraph 1(1)(b) of Schedule

 

29 to FA 2004 to be omitted in certain cases) at the end insert “, and section

 

239 has effect in the case of a lump sum paid to that individual as if its

 

subsection (3)(b) did not include a reference to paragraph 1(1)(b) of Schedule

 

29”.

 

      (5)  

The amendment made by sub-paragraph (4) is to be treated as made by the

 

Treasury under the powers to make orders conferred by section 283(2) of FA

 

2004.

 

Power to make further adjustments

 

13         

In section 166 of FA 2004 (payments by registered pension schemes: the lump

 

sum rule) after subsection (4) insert—

 

“(5)    

The Commissioners for Her Majesty’s Revenue and Customs may by

 

regulations           amend Part 1 of Schedule 29, or Part 3 of Schedule 36, in

 

connection with cases involving a lump sum within subsection (6).

 

(6)    

A lump sum is within this subsection if—

 

(a)    

the sum is paid on or after 19 September 2013 and before 6

 

April 2015, or

 

(b)    

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.

 

(7)    

The provision that may be made under subsection (5) includes

 

provision altering the effect of amendments made by the Finance Act

 

2014.”

 

14         

In section 282(1) and (2) of FA 2004 (making of regulations and orders) for

 

“Board of Inland Revenue” substitute “Commissioners for Her Majesty’s

 

Revenue and Customs”.

 

Commencement

 

15         

The amendments made by paragraphs 1 to 5, 6(1), 7 to 10, 11(1) and 12(1) to

 

(4) of this Schedule are to be treated as having come into force on 19 March

 

2014.”

 



 
 

Notices of Amendments: 27 June 2014                     

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Finance Bill, continued

 
 

NEW CLAUSES AND NEW SCHEDULES RELATING TO THE ANNUAL INVESTMENT

 

ALLOWANCE; AMENDMENTS TO CLAUSE 10 AND SCHEDULE 2

 

Ed Balls

 

Chris Leslie

 

Cathy Jamieson

 

Catherine McKinnell

 

Shabana Mahmood

 

NC10

 

To move the following Clause—

 

“Review of reform to the annual investment allowance

 

(1)    

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

 

Act, undertake a review of the impact on business investment of changes to

 

section 51A of the Capital Allowances Act 2001 made by Finance Act 2011.

 

(2)    

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

 

the report before the House.”

 


 

REMAINING NEW CLAUSES AND NEW SCHEDULES STANDING IN THE NAME OF A

 

MINISTER OF THE CROWN; AMENDMENTS STANDING IN THE NAME OF A MINISTER OF

 

THE CROWN; REMAINING PROCEEDINGS ON CONSIDERATION

 

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

 

NC2

 

To move the following 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


 
 

Notices of Amendments: 27 June 2014                     

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Finance Bill, continued

 
 

Ministers, a Northern Ireland department or a statutory

 

body,”, and

 

(b)    

after that subsection insert—

 

“(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.”

 


 

Mr Chancellor of the Exchequer

 

NC3

 

To move the following 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).”

 


 

Mr Chancellor of the Exchequer

 

NC4

 

To move the following 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.”

 



 
 

Notices of Amendments: 27 June 2014                     

335

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

NC5

 

To move the following Clause—

 

“Tax relief for theatrical production

 

Schedule (Tax relief for theatrical production) contains provision about relief in

 

respect of theatrical productions.”

 


 

Mr Chancellor of the Exchequer

 

NC6

 

To move the following 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 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.”


 
 

Notices of Amendments: 27 June 2014                     

336

 

Finance Bill, continued

 
 

(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

 

(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


 
 

Notices of Amendments: 27 June 2014                     

337

 

Finance Bill, continued

 
 

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

 

(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.”

 



 
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