Session 2016-17
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Other Bills before Parliament


 
 

1

 

House of Commons

 
 

Thursday 7 July 2016

 

Public Bill Committee

 

New Amendments handed in are marked thus Parliamentary Star

 

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

 

Finance Bill


 

(Except Clauses 7 to 18 and Schedules 2 and 3; Clauses 41 and 42; Clauses 43 and 44; Clauses


 

65 to 71; Clauses 72 to 81 and Schedules 11 to 14; Clause 129; Clauses 132 to 136; Clauses 144


 

to 154 and Schedules 18 to 22; any new Clauses or new Schedules relating to employment


 

income, the subject matter of Clauses 41 to 44 and 65 to 71, capital gains tax, insurance


 

premium tax, climate change levy, and tax avoidance and evasion)


 

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includes any withdrawn amendments at the end.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 [30 June 2016].

 


 

Roger Mullin

 

1

 

Clause  115,  page  162,  line  8,  leave out from “liners” to end of line 9

 

Roger Mullin

 

2

 

Clause  115,  page  162,  line  10,  at end insert—

 

“(d)    

products that are designed, and marketed, as being solely for use for

 

absorbing breastmilk”.

 

Paula Sherriff

 

Rob Marris

 

Rebecca Long Bailey

 

5

 

Clause  115,  page  162,  line  14,  after “after” insert “1 April 2017, or on any prior”

 



 
 

Public Bill Committee: 7 July 2016                     

2

 

Finance Bill, continued

 
 

Mr David Gauke

 

29

 

Clause  117,  page  167,  line  20,  leave out from beginning to “at”

 

Mr David Gauke

 

30

 

Clause  117,  page  167,  line  21,  at end insert “meet conditions A, B and C”

 

Mr David Gauke

 

31

 

Clause  117,  page  167,  line  22,  leave out “Condition A is that the portion” and insert

 

“A purchased dwelling meets condition A if the amount”

 

Mr David Gauke

 

32

 

Clause  117,  page  167,  line  25,  leave out “Condition B is that” and insert “A

 

purchased dwelling meets condition B if”

 

Mr David Gauke

 

33

 

Clause  117,  page  167,  line  30,  at end insert—

 

    “(4)  

A purchased dwelling meets condition C if it is not subsidiary to any of the

 

other purchased dwellings.

 

      (5)  

One of the purchased dwellings (“dwelling A”) is subsidiary to another of the

 

purchased dwellings (“dwelling B”) if—

 

(a)    

dwelling A is situated within the grounds of, or within the same

 

building as, dwelling B, and

 

(b)    

the amount of the chargeable consideration for the transaction which

 

is attributable on a just and reasonable basis to dwelling B is equal to,

 

or greater than, two thirds of the amount of the chargeable

 

consideration for the transaction which is attributable on a just and

 

reasonable basis to the following combined—

 

(i)    

dwelling A,

 

(ii)    

dwelling B, and

 

(iii)    

each of the other purchased dwellings (if any) which are

 

situated within the grounds of, or within the same building as,

 

dwelling B.”

 

Mr David Gauke

 

34

 

Clause  117,  page  167,  line  36,  leave out from beginning to “one” and insert “only”

 

Mr David Gauke

 

35

 

Clause  117,  page  167,  line  37,  after “dwellings” insert “meets conditions A, B and

 

C”

 

Mr David Gauke

 

36

 

Clause  117,  page  167,  line  38,  leave out from “dwelling” to “is” in line 39 and

 

insert “which meets those conditions”


 
 

Public Bill Committee: 7 July 2016                     

3

 

Finance Bill, continued

 
 

Mr David Gauke

 

37

 

Clause  117,  page  167,  line  48,  at end insert—

 

    “( )  

Sub-paragraphs (2) to (5) of paragraph 5 apply for the purposes of sub-

 

paragraph (1)(c) of this paragraph as they apply for the purposes of sub-

 

paragraph (1)(c) of that paragraph.”

 

Mr David Gauke

 

38

 

Clause  117,  page  168,  line  9,  leave out from beginning to “at”

 

Mr David Gauke

 

39

 

Clause  117,  page  168,  line  10,  at end insert “meets conditions A and B.

 

      ( )  

Sub-paragraphs (2) and (3) of paragraph 5 apply for the purposes of sub-

 

paragraph (1)(c) of this paragraph as they apply for the purposes of sub-

 

paragraph (1)(c) of that paragraph.”

 

Mr David Gauke

 

40

 

Clause  117,  page  171,  line  8,  at end insert—

 

“Alternative finance arrangements

 

14A(1)  

This paragraph applies in relation to a chargeable transaction which is the first

 

transaction under an alternative finance arrangement entered into between a

 

person and a financial institution.

 

      (2)  

The person (rather than the institution) is to be treated for the purposes of this

 

Schedule as the purchaser in relation to the transaction.

 

      (3)  

In this paragraph—

 

“alternative finance arrangement” means an arrangement of a kind

 

mentioned in section 71A(1) or 73(1);

 

“financial institution” has the meaning it has in those sections (see section

 

73BA);

 

“first transaction”, in relation to an alternative finance arrangement, has the

 

meaning given by section 71A(1)(a) or (as the case may be) section

 

73(1)(a)(i).”

 

Mr David Gauke

 

41

 

Clause  117,  page  173,  line  23,  at end insert—

 

“Power to modify this Schedule

 

18  (1)  

The Treasury may by regulations amend or otherwise modify this Schedule for

 

the purpose of preventing certain chargeable transactions from being higher

 

rates transactions for the purposes of paragraph 1.

 

      (2)  

The provision which may be included in regulations under this paragraph by

 

reason of section 114(6)(c) includes incidental or consequential provision

 

which may cause a chargeable transaction to be a higher rates transaction for

 

the purposes of paragraph 1.”


 
 

Public Bill Committee: 7 July 2016                     

4

 

Finance Bill, continued

 
 

Mr David Gauke

 

42

 

Clause  117,  page  174,  line  7,  at end insert—

 

“( )    

Paragraph 14A of Schedule 4ZA to FA 2003 does not apply in relation to a land

 

transaction of which the effective date is, or is before, the date on which this Act

 

is passed if the effect of its application would be that the transaction is a higher

 

rates transaction for the purposes of paragraph 1 of that Schedule.”

 


 

Rob Marris

 

John McDonnell

 

Rebecca Long Bailey

 

140

 

Schedule  25,  page  569,  line  2,  at end insert “, subject to subsection (4A).

 

(4A)    

The chair of the OTS will be appointed by the Chancellor of the Exchequer with

 

the consent of the Treasury Committee of the House of Commons.”

 

Rob Marris

 

John McDonnell

 

Rebecca Long Bailey

 

141

 

Schedule  25,  page  570,  line  21,  leave out from “considers” to end of line 22 and

 

insert “sufficient for the OTS to fulfil its duties.”

 


 

Rob Marris

 

John McDonnell

 

Rebecca Long Bailey

 

142

 

Clause  173,  page  254,  line  32,  after “contributions” insert “and tax reliefs”

 


 

Rob Marris

 

John McDonnell

 

Rebecca Long Bailey

 

137

 

Clause  174,  page  255,  line  5,  after “Exchequer” insert “or as the OTS considers

 

appropriate”


 
 

Public Bill Committee: 7 July 2016                     

5

 

Finance Bill, continued

 
 

Rob Marris

 

John McDonnell

 

Rebecca Long Bailey

 

138

 

Clause  174,  page  255,  line  13,  leave out “Chancellor of the Exchequer” and insert

 

“OTS”

 


 

Rob Marris

 

John McDonnell

 

Rebecca Long Bailey

 

139

 

Clause  175,  page  255,  line  26,  leave out “Chancellor of the Exchequer” and insert

 

“OTS”

 


 

NEW CLAUSES

 

Mr David Gauke

 

NC7

 

To move the following Clause—

 

         

“Receipts from intellectual property: diverted profits tax

 

(1)    

Part 3 of FA 2015 (diverted profits tax) is amended as follows.

 

(2)    

In section 79 (charge to tax), at the end insert—

 

“(6)    

But banking surcharge profits and notional banking surcharge profits, to

 

the extent that they are determined by reference to notional PE profits (or

 

what would have been notional PE profits) for an accounting period, do

 

not include any amount which is (or would have been) included in

 

notional PE profits for that period by virtue of section 88(5)(b).”

 

(3)    

In section 88 (which relates to the calculation of taxable diverted profits), for

 

subsection (5) substitute—

 

“(5)    

“Notional PE profits”, in relation to an accounting period, means an

 

amount equal to the sum of—

 

(a)    

the amount of profits (if any) which would have been the

 

chargeable profits of the foreign company for that period,

 

attributable (in accordance with sections 20 to 32 of CTA 2009)

 

to the avoided PE, had the avoided PE been a permanent

 

establishment in the United Kingdom through which the foreign

 

company carried on the trade mentioned in section 86(1)(b), and

 

(b)    

an amount equal to the total of royalties or other sums which are

 

paid by the foreign company during that period in connection

 

with that trade in circumstances where the payment avoids the

 

application of section 906 of ITA 2007 (duty to deduct tax).

 

(5A)    

For the purposes of subsection (5)(b) a payment of a royalty or other sum

 

avoids the application of section 906 of ITA 2007 if—

 

(a)    

that section does not apply in relation to the payment, but


 
 

Public Bill Committee: 7 July 2016                     

6

 

Finance Bill, continued

 
 

(b)    

that section would have applied in relation to the payment had

 

the avoided PE been a permanent establishment in the United

 

Kingdom through which the foreign company carried on the

 

trade mentioned in section 86(1)(b).”

 

(4)    

In section 100 (credit for UK or foreign tax on same profits), for the heading

 

substitute “Credits for tax on the same profits”.

 

(5)    

In section 100, after subsection (2) insert—

 

“(2A)    

Subsection (2)(b) does not allow a credit against a liability to diverted

 

profits tax if or to the extent that the liability arises by virtue of section

 

88(5)(b) (payments of royalties etc).”

 

(6)    

In section 100, after subsection (4) insert—

 

“(4A)    

Subsection (4B) applies where—

 

(a)    

a company’s notional PE profits for an accounting period include

 

an amount under section 88(5)(b) determined by reference to a

 

royalty or other sum,

 

(b)    

the company’s liability to diverted profits tax for the accounting

 

period is determined by reference to taxable diverted profits

 

calculated under section 91(4) or (5), and

 

(c)    

those taxable diverted profits include an amount of relevant

 

taxable income referred to in section 91(4)(b) or (5)(b)

 

determined by reference to the same royalty or other sum.

 

(4B)    

A credit equal to the company’s liability to diverted profits tax for that

 

accounting period which arises by virtue of section 88(5)(b) in respect of

 

the royalty or other sum, to the extent that it is included in relevant

 

taxable income for the purposes of section 91(4)(b) or (5)(b), is allowed

 

against the company’s total liability to diverted profits tax for that period.

 

(4C)    

Subsection (4D) applies where—

 

(a)    

by reason of the payment of a royalty or other sum a company’s

 

liability to diverted profits tax for an accounting period includes

 

liability arising by virtue of section 88(5)(b),

 

(b)    

the royalty or other sum is paid to a person who is resident in a

 

country or territory outside the United Kingdom, and

 

(c)    

under any relevant provision relief would have been due to that

 

person had the avoided PE been a permanent establishment in the

 

United Kingdom through which the company carried on the

 

trade mentioned in section 86(1)(b).

 

(4D)    

Such credit as is just and reasonable having regard to the amount of the

 

relief referred to in subsection (4C)(c) is allowed against the company’s

 

liability to diverted profits tax.

 

(4E)    

In subsection (4C)(c) “relevant provision” means—

 

(a)    

the provision of a double taxation arrangement (as defined by

 

section 2(4) of TIOPA 2010), or

 

(b)    

section 758 of ITTOIA 2005 (exemption for certain interest and

 

royalty payments).”

 

(7)    

The amendments made by this section have effect in relation to accounting

 

periods ending on or after 28 June 2016.

 

(8)    

For the purposes of section 88(5)(b) of FA 2015 as inserted by this section, a

 

royalty or other sum which would not otherwise be regarded as paid during an

 

accounting period ending on or after 28 June 2016 is to be regarded as so paid if—


 
 

Public Bill Committee: 7 July 2016                     

7

 

Finance Bill, continued

 
 

(a)    

for the purposes of section 906 of ITA 2007 it is regarded as paid on a

 

date during that period by virtue of section (deduction of income tax at

 

source: intellectual property)(6), or

 

(b)    

for the purposes of section 577A(1) of ITTOIA 2005 it is regarded as paid

 

on a date during that period by virtue of section (receipts from

 

intellectual property: territorial scope)(5).”

 


 

Mr David Gauke

 

NC8

 

To move the following Clause—

 

         

“Deduction of income tax at source: intellectual property

 

(1)    

Part 15 of ITA 2007 (deduction from other payments connected with intellectual

 

property) is amended as specified in subsections (2) and (3).

 

(2)    

In section 906 (certain royalties etc where usual place of abode of owner is

 

abroad), for subsections (1) to (3) substitute—

 

“(1)    

This section applies to any payment made in a tax year where condition

 

A or condition B is met.

 

(2)    

Condition A is that—

 

(a)    

the payment is a royalty, or a payment of any other kind, for the

 

use of, or the right to use, intellectual property (see section 907),

 

(b)    

the usual place of abode of the owner of the intellectual property

 

is outside the United Kingdom, and

 

(c)    

the payment is charged to income tax or corporation tax.

 

(3)    

Condition B is that—

 

(a)    

the payment is a payment of sums payable periodically in respect

 

of intellectual property,

 

(b)    

the person entitled to those sums (“the assignor”) assigned the

 

intellectual property to another person,

 

(c)    

the usual place of abode of the assignor is outside the United

 

Kingdom, and

 

(d)    

the payment is charged to income tax or corporation tax.”

 

(3)    

For section 907 substitute—

 

“907  

Meaning of “intellectual property”

 

(1)    

In section 906 “intellectual property” means—

 

(a)    

copyright of literary, artistic or scientific work,

 

(b)    

any patent, trade mark, design, model, plan, or secret formula or

 

process,

 

(c)    

any information concerning industrial, commercial or scientific

 

experience, or

 

(d)    

public lending right in respect of a book.

 

(2)    

In this section “copyright of literary, artistic or scientific work” does not

 

include copyright in—

 

(a)    

a cinematographic film or video recording, or


 
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Revised 06 July 2016