Consideration of Bill (Report Stage): 26 October 2015      

14

Finance Bill, continued

(b)    

in, or in a provision made under, an Act.

357YV

 Relationship of Part with other corporation tax provisions

(1)    

So far as restitution interest is charged to corporation tax under this Part

it is not chargeable to corporation tax under any other provision.

(2)    

This Part has effect regardless of section 464(1) of CTA 2009 (priority of

loan relationship provisions).

357YW

 Power to amend

(1)    

The Treasury may by regulations amend this Part (apart from this

section).

(2)    

Regulations under this section—

(a)    

may not widen the description of the type of payments that are

chargeable to corporation tax under this Part;

(b)    

may not remove or prejudice any right of appeal;

(c)    

may not increase the rate at which tax is charged on restitution

interest under this Part;

(d)    

may not enable any provision of this Part to have effect in

relation to the subject matter of any claim which has been finally

determined before 21 October 2015.

(3)    

Subject to subsection (2), regulations under this section may have

retrospective effect.

(4)    

For the purposes of this section a claim is “finally determined” if a court

has disposed of the claim by a final determination or the claimant and the

Commissioners for Her Majesty’s Revenue and Customs have entered

into an agreement in final settlement of the claim.

(5)    

Section 357YC(8) (which defines when a determination made by a court

is final) has effect for the purposes of this section as for the purposes of

section 357YC.

(6)    

Regulations under this section may include incidental, supplementary or

transitional provision.

(7)    

A statutory instrument containing regulations under this section must be

laid before the House of Commons.

(8)    

The regulations cease to have effect at the end of the period of 28 days

beginning with the day on which they are made unless, during that

period, the regulations are approved by a resolution of the House of

Commons.

(9)    

In reckoning the 28-day period, no account is to be taken of any time

during which—

(a)    

Parliament is dissolved or prorogued, or

(b)    

the House of Commons is adjourned for more than 4 days.

(10)    

Regulations ceasing to have effect by virtue of subsection (8) does not

affect—

(a)    

anything previously done under the regulations, or

(b)    

the making of new regulations.”

(4)    

In TMA 1970, in section 59D (general rule as to when corporation tax is due and

payable)—

Consideration of Bill (Report Stage): 26 October 2015      

15

Finance Bill, continued

(a)    

in subsection (3) after “with” insert “the first to fourth steps of”;

(b)    

in subsection (5) after “59E” insert “and section 357YQ of CTA 2010

(assessment of tax chargeable on restitution interest)”.

(5)    

Paragraph 8 Schedule 18 to FA 1998 (company tax returns, assessments etc:

calculation of tax payable) is amended as follows—

(a)    

in paragraph 2 of the first step, after “company” insert “(other than the

restitution payments rate)”;

(b)    

After the fourth step insert—

“Fifth step

Calculate the corporation tax chargeable on any profits of the company

that are charged as restitution interest.

1. Find the amount in respect of which the company is chargeable for

the period under the charge to corporation tax on income under Part 8C

of CTA 2010.

2. Apply the restitution payments rate in accordance with section

357YK(1) of that Act.

The amount of tax payable for the accounting period is the sum of the

amounts resulting from the first to fourth steps and this step.”

(6)    

Schedule 56 to FA 2009 (penalty for failure to make payments on time) is

amended in accordance with subsections (7) and (8).

(7)    

In paragraph 1, in the table after item 6 insert—

(8)    

In paragraph 4(1), for “or 6” substitute “, 6 or 6ZZA”.

(9)    

The amendments made by subsections (1) to (8) have effect in relation to interest

(whether arising before or on or after 21 October 2015) which falls within

subsection (11).

(10)    

Section 357YO of CTA 2010, and the amendments made by subsections (1) to

(8) so far as relating to the deduction of tax under section 357YO, have effect in

relation to payments of interest made on or after 26 October 2015.

This rule is not limited by the rule in subsection (9).

(11)    

Interest arising to a company falls within this subsection if—

(a)    

a determination made by a court that the Commissioners for Her

Majesty’s Revenue and Customs are liable to pay the interest becomes

final on or after 21 October 2015, or

(b)    

on or after 21 October 2015 the Commissioners and a company enter into

an agreement in final settlement of a claim for restitution, under which

the company is entitled to be paid, or to retain, the interest.

(12)    

In subsections (9) to (11)—

(a)    

the reference to a determination made by a court becoming “final” is to

be interpreted in accordance with section 357YC of CTA 2010;

Consideration of Bill (Report Stage): 26 October 2015      

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Finance Bill, continued

(b)    

the references to “interest” are to be interpreted in accordance with

section 357YC of CTA 2010.”

Amendments relating to Vehicle Excise Duty

John McDonnell

Seema Malhotra

Rob Marris

91

Clause  42,  page  57,  leave out lines 26 and 27

John McDonnell

Seema Malhotra

Rob Marris

92

Clause  42,  page  57,  leave out lines 30 to 41

John McDonnell

Seema Malhotra

Rob Marris

93

Clause  42,  page  58,  leave out from beginning of line 1 to end of line 37 on page 60 and

insert—

“Graduated rates of duty payable on first vehicle licence

For the purpose of determining the rate at which vehicle excise duty is to be paid

on each of the first three years of vehicle licence for a vehicle to which this Part

of this Schedule applies, the annual rate of duty applicable to the vehicle shall be

determined in accordance with the following table by reference to the applicable

CO2 emissions figure.

TABLE

Consideration of Bill (Report Stage): 26 October 2015      

17

Finance Bill, continued

Rates of duty payable on any other vehicle licence

1GD For the purpose of determining the rate at which vehicle excise duty is to be

paid on any other vehicle licence for a vehicle to which this Part of this Schedule

applies, the annual rate of vehicle excise applicable to the vehicle shall be

determined in accordance with the following table by reference to the applicable

CO2 emissions figure.

TABLE

Consideration of Bill (Report Stage): 26 October 2015      

18

Finance Bill, continued

New Clauses and amendments relating to Inheritance Tax

John McDonnell

Seema Malhotra

Rob Marris

NC9

To move the following Clause—

“Inheritance tax review

(1)    

The Chancellor of the Exchequer must, within one year of a current budget

surplus being achieved, undertake a comprehensive review of the inheritance tax

regime, including, but not limited to, rates, thresholds and trusts.

(2)    

The Chancellor of the Exchequer must as soon as is practicable lay a report of the

review before both Houses of Parliament.”

John McDonnell

Seema Malhotra

Rob Marris

89

Page  4,  line  20,  leave out Clause 9.

Remaining New Clauses

Roger Mullin

George Kerevan

Alison Thewliss

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.”

Consideration of Bill (Report Stage): 26 October 2015      

19

Finance Bill, continued

Roger Mullin

George Kerevan

Alison Thewliss

NC2

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.”

Roger Mullin

George Kerevan

Alison Thewliss

NC3

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.”

Consideration of Bill (Report Stage): 26 October 2015      

20

Finance Bill, continued

Paula Sherriff

Rob Marris

Kate Green

Cat Smith

John McDonnell

Seema Malhotra

Rebecca Long Bailey

Alison McGovern

Jess Phillips

Ruth Cadbury

Dawn Butler

Margaret Greenwood

Kate Hollern

Helen Jones

Yasmin Qureshi

Stella Creasy

Helen Hayes

Naz Shah

Imran Hussain

Matthew Pennycook

Christian Matheson

Mr Clive Betts

Mr Barry Sheerman

Stephen Kinnock

Gerald Jones

Peter Dowd

Mr Graham Allen

Tristram Hunt

Wes Streeting

Daniel Zeichner

Liz McInnes

Sue Hayman

Susan Elan Jones

Grahame Morris

John Woodcock

Mr Ben Bradshaw

Barry Gardiner

Mr Khalid Mahmood

Mike Gapes

Andrew Rosindell

Mr Steve Baker

Mr Philip Hollobone

Kate Hoey

Mrs Anne-Marie Trevelyan

Sir William Cash

Mrs Anne Main

Tim Loughton

Louise Haigh

Karl McCartney

Mr Bernard Jenkin

Adam Holloway

Jo Stevens

Craig Mackinlay

Holly Lynch

Angela Rayner

NC7

To move the following Clause—

“VAT on sanitary protection products (No. 2)

(1)    

Within three months of the passing of this Act, the Chancellor of the Exchequer

shall lay before both Houses of Parliament a statement on his strategy to negotiate

with the European Union institutions an exemption from value added tax for

women’s sanitary protection products.

(2)    

A Minister of the Crown must lay before Parliament a report on progress at

achieving an exemption from value added tax for women’s sanitary protection

products within European Union law by 1 April 2016.”

John McDonnell

Seema Malhotra

Rob Marris

NC10

To move the following Clause—

“Enforcement by deduction from accounts: review

(1)    

The Chancellor of the Exchequer must, within two years of the passing of this

Act, undertake a review of the impact of Section 47 of, and Schedule 8 to, this

Act.

(2)    

The review must address, but need not be confined to:

(a)    

the number of cases in which the Direct Recovery of Debts has been

used;

(b)    

the effectiveness of the safeguards; and

(c)    

the total amount recovered.