1

House of Commons

Notices of Amendments

given up to and including

Thursday 8 October 2015

New Amendments handed in are marked thus

Amendments which will comply with the required notice period at their next appearance

Amendments tabled since the last publication: 8 to 26

Public Bill Committee

Finance Bill

(Except clauses 16, 17, 43 and 45; Schedules 2 and 3; any new clauses and

new Schedules, relating to the subject matter of those clauses or Schedules)

Note

This document includes all amendments remaining before the Committee and

includes any withdrawn amendments at the end. The amendments have been

arranged in accordance with the Order of the Committee [17 September 2015].

Mr David Gauke

13

Clause  21 ,  page  32,  line  44,  at end insert—

“( )    

In paragraph 16 of Schedule 32 to FA 2004 (benefit crystallisation event 7:

defined benefits lump sum death benefit is a “relevant lump sum death

benefit”)—

(a)    

in the first sentence, in paragraph (a), after “benefit” insert “, other than

one—

(i)    

paid by a registered pension scheme in respect

of a member of the scheme who had not reached

the age of 75 at the date of the member’s death,

but

(ii)    

not paid before the end of the relevant two-year

period”, and

Notices of Amendments: 8 October 2015                  

2

Finance Bill, continued

(b)    

in the second sentence, for “sub-paragraph” substitute “paragraphs (a)(ii)

and”.”

Mr David Gauke

14

Schedule  4  ,  page  99  ,  line  43,  leave out “227B(2)” and insert “227B(1)(b) and (2)”

Mr David Gauke

15

Schedule  4  ,  page  100  ,  line  10,  leave out “section 227ZA(1)(b)” and insert “each of

sections 227ZA(1)(b) and 227B(1)(b)”

Mr David Gauke

16

Schedule  4  ,  page  100  ,  line  14,  leave out “section 227ZA(1)(b)” and insert “each of

sections 227ZA(1)(b) and 227B(1)(b)”

Mr David Gauke

18

Schedule  4,  page  103,  line  4,  after “Modifications”, insert “in some other cases”

Mr David Gauke

17

Schedule  4  ,  page  103  ,  line  4,  at end insert—

“Exceptions in certain cases where individual is deferred member of scheme

(6A)    

Subsections (3) to (5) do not apply, and subsections (6B) and (6C)

apply instead, if—

(a)    

because of section 238ZA(2), a pension input period for the

arrangement ends with 8 July 2015,

(b)    

another pension input period for the arrangement ends with a

day (“the unchanged last day”) after 5 April 2015 but before

8 July 2015, and

(c)    

section 230(5B) or 234(5B), when applied separately to each

of—

(i)    

the pension input period for the arrangement ending

with 8 July 2015, and

(ii)    

the pension input period for the arrangement ending

with 5 April 2016,

gives the result that the pension input amount in respect of the

arrangement for each of those periods is nil.

(6B)    

The pension input amount in respect of the arrangement for the post-

alignment tax year is nil.

(6C)    

The pension input amount in respect of the arrangement for the pre-

alignment tax year is the amount which would be the pension input

amount in respect of the arrangement for the pre-alignment tax year

if—

Notices of Amendments: 8 October 2015                  

3

Finance Bill, continued

(a)    

the pension input period ending with the unchanged last day

were the only pension input period for the arrangement ending

in the pre-alignment tax year, and

(b)    

subsections (3) to (5) were ignored.”

Mr David Gauke

19

Schedule  4,  page  103,  line  44,  at end insert—

“Modification where last input period ends before 9 July 2015

(11A)    

If the last pension input period for the arrangement ends after 5 April

2015 but before 9 July 2015—

(a)    

the time-apportioned percentage for the post-alignment tax

year is treated as being nil, and

(b)    

the time-apportioned percentage for the pre-alignment tax

year is treated as being 100.”

Mr David Gauke

20

Schedule  4,  page  103,  line  46,  at end insert—

“( )    

subsections (6B) and (6C) do not apply,”

Mr David Gauke

21

Schedule  4,  page  104,  line  7,  after “period”, insert “(for this purpose treating that

remainder as a single pension input period if not otherwise the case)”

Mr David Gauke

22

Clause  24,  page  36,  line  23,  leave out “a property business carried on by a

company” and insert “calculating the profits of a property business for the purposes of

charging a company to income tax on so much of those profits as accrue to it”

Mr David Gauke

23

Clause  24,  page  37,  line  18,  leave out “finance costs” and insert “costs of a

dwelling-related loan”

Mr David Gauke

24

Clause  24,  page  37,  line  19,  leave out “non-deductible costs of a dwelling-related

loan” and insert “individuals”

Mr David Gauke

25

Clause  24,  page  38,  line  26,  at end insert—

“274B

Tax reduction for accumulated or discretionary trust income

(1)    

Subsections (2) to (4) apply if—

Notices of Amendments: 8 October 2015                  

4

Finance Bill, continued

(a)    

an amount (“A”) would be deductible in calculating the profits

for income tax purposes of a property business for a tax year but

for section 272A,

(b)    

the trustees of a particular settlement are liable for income tax on

N% of those profits, where N is a number—

(i)    

greater than 0, and

(ii)    

less than or equal to 100, and

(c)    

in relation to those trustees, that N% of those profits is

accumulated or discretionary income.

(2)    

The trustees of the settlement are entitled to relief under this section for

the tax year in respect of an amount (“the relievable amount”) equal to

N% of A.

(3)    

The amount of the relief is given by—

where BR is the basic rate of income tax for the year, and L is the lower

of—

(a)    

the total of—

(i)    

the relievable amount, and

(ii)    

any difference available in relation to the trustees of the

settlement and the property business for carry-forward

to the year under subsection (4), and

(b)    

the profits for income tax purposes of the property business for

the year after any deduction under section 118 of ITA 2007 (“the

adjusted profits”) or, if less, the share of the adjusted profits—

(i)    

on which the trustees of the settlement are liable to

income tax, and

(ii)    

which, in relation to the trustees of the settlement, is

accumulated or discretionary income.

(4)    

Where the amount (“AY”) of the relief under this section for the year in

respect of the relievable amount is less than—

where BR is the basic rate of income tax for the year and T is the total

found at subsection (3)(a), the difference between—

(a)    

T, and

(b)    

AY divided by BR (with BR expressed as a fraction for this

purpose),

is available in relation to the trustees of the settlement and the property

business for carry-forward to the following tax year.

(5)    

In this section “accumulated or discretionary income” has the meaning

given by section 480 of ITA 2007.”

Notices of Amendments: 8 October 2015                  

5

Finance Bill, continued

Mr David Gauke

26

Clause  24,  page  40,  line  3,  at end insert—

“( )    

In section 26(2) of ITA 2007 (tax reductions deductible at Step 6 of the

calculation in section 23 of ITA 2007 in the case of taxpayer who is not an

individual), before the “and” at the end of paragraph (a) insert—

“(aa)    

section 274B of ITTOIA 2005 (trusts with accumulated or

discretionary income derived from property business: relief for

non-deductible costs of dwelling-related loans),”.

Mr David Gauke

8

Schedule  7,  page  179,  line  6,  leave out “and 33(2)”

Mr David Gauke

9

Schedule  7,  page  179,  line  8,  leave out “the day on which this Act is passed” and

insert “1 January 2015”

Mr David Gauke

10

Schedule  7,  page  179,  line  8,  at end insert—

“107A    

Paragraph 33(2) has effect in relation to the release of a debtor relationship of

a company on or after the day on which this Act is passed.”

Mr David Gauke

11

Schedule  8,  page  186,  line  41,  at end insert “, and

( )    

contain a statement about HMRC’s compliance with paragraph 4A in

relation to the notice.”

Mr David Gauke

12

Schedule  8,  page  188,  line  2,  at end insert—

“Persons at a particular disadvantage in dealing with Revenue and Customs affairs

4A  (1)  

Before deciding whether or not to exercise the power under paragraph 3(2) or

4(1) in relation to a person, HMRC must consider whether or not, to the best

of HMRC’s knowledge, there are any matters as a result of which the person

is, or may be, at a particular disadvantage in dealing with the person’s Revenue

and Customs affairs.

      (2)  

If HMRC determines that there are any such matters, HMRC must take those

matters into account in deciding whether or not to exercise the power

concerned in relation to the person.

      (3)  

The Commissioners must publish guidance as to the factors which are relevant

to determining whether or not a person is at a particular disadvantage in

Notices of Amendments: 8 October 2015                  

6

Finance Bill, continued

dealing with the person’s Revenue and Customs affairs for the purposes of this

Schedule.

      (4)  

In this paragraph “Revenue and Customs affairs”, in relation to a person by

whom a relevant sum is payable, means any affairs of the person which relate

to the relevant sum.”

NEW CLAUSES

Roger Mullin

George Kerevan

Alison Thewliss

Michelle Thomson

NC1

To move the following Clause—

“VAT treatment of the Scottish Police Authority and the Scottish Fire and

Rescue Service

(1)    

The Treasury shall, within six months of the passing of this Act, publish and lay

before the House of Commons a report on the VAT treatment of the Scottish

Police Authority and the Scottish Fire and Rescue Service.

(2)    

The report must include (but need not be limited to) an analysis of the impact on

the financial position of Police Scotland and by the Scottish Fire and Rescue

Service arising from their VAT treatment and an estimate of the change to their

financial position were they eligible for a refund of VAT under section 33 of the

VAT Act 1994.”

Roger Mullin

George Kerevan

Alison Thewliss

Michelle Thomson

NC2

To move the following Clause—

“Tax treatment of private equity fund managers’ pay

(1)    

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

Act, publish and lay before the House of Commons a report setting out proposals

for amending the law to ensure that no element of the remuneration paid to an

investment fund manager may be treated as a capital gain, and that such

remuneration shall be treated for tax purposes wholly as income.

(2)    

For the purposes of this section, an “investment fund manager” is a person who

performs investment management services directly or indirectly.”

Notices of Amendments: 8 October 2015                  

7

Finance Bill, continued

Roger Mullin

George Kerevan

Alison Thewliss

Michelle Thomson

NC3

To move the following Clause—

“VAT on sanitary protection products

(1)    

The Treasury must, within 12 months of the passing of this Act, lay before the

House of Commons a report setting out the impact of exempting women’s

sanitary protection products from value added tax.

(2)    

The report must include (but need not be limited to)—

(a)    

an estimate of the impact on VAT revenue of exempting women’s

sanitary protection products; and

(b)    

an assessment of the impact on the purchase of women’s sanitary

protection products of exempting them from VAT, with particular

reference to purchasing by women aged under 25.”

John McDonnell

Seema Malhotra

Barbara Keeley

Alison McGovern

NC4

To move the following Clause—

“Consultation on reforms to the system of tax reliefs for businesses

(1)    

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

Act, initiate a public consultation on potential reforms of the system of tax reliefs

for businesses which would encourage long term investment and growth in the

UK; and the Chancellor shall lay a report of the consultation before both Houses

of Parliament by the end of September 2016.

(2)    

The consultation under subsection (1) must address (though need not be limited

to) the following issues:

(a)    

how reforms to the system of tax reliefs could benefit small businesses in

particular;

(b)    

how such reforms could provide greater long-term certainty about

business taxation;

(c)    

the impact of such reforms on Exchequer revenue; and

(d)    

the wider societal impacts of such reforms.”

Order of the House [21 July 2015]

That the following provisions shall apply to the Finance Bill:

Committal

1.    

The following shall be committed to a Committee of the whole House—

(a)    

clauses 16, 17, 43 and 45;

(b)    

Schedules 2 and 3;