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1

 

SUPPLEMENT TO THE VOTES AND PROCEEDINGS

 
 

Tuesday 6 September 2016

 

Report Stage Proceedings

 

Finance Bill, as amended


 

[Second Day]


 

NEW CLAUSES, NEW SCHEDULES AND AMENDMENTS TO CLAUSES and schedules

 

relating to capital gains tax

 

John McDonnell

 

Rebecca Long Bailey

 

Peter Dowd

 

Withdrawn  NC14

 

To move the following Clause—

 

         

“Entrepreneur’s Relief: value for money

 

(1)    

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

 

Act, publish a report giving HM Treasury’s assessment of the value for money

 

provided by Entrepreneur’s Relief.

 

(2)    

The report shall have particular reference to—

 

(a)    

the cost to the Exchequer of the Relief;

 

(b)    

the number of individuals who have benefited from the Relief;

 

(c)    

the average tax deduction received by an individual as a result of the

 

Relief; and

 

(d)    

the number of new business start-ups since introduction of the Relief.”

 

 


 

John McDonnell

 

Rebecca Long Bailey

 

Tim Farron

 

Tom Brake

 

Peter Dowd

 

Negatived on division  174

 

Page  167,  line  40,  leave out Clause 82

 

Mr Chancellor of the Exchequer

 

Agreed to  149

 

Clause  82,  page  167,  line  42,  leave out “(11)” and insert “(11A)”


 
 

Report Stage Proceedings: 6 September 2016              

2

 

Finance Bill, as amended, continued

 
 

Mr Chancellor of the Exchequer

 

Agreed to  150

 

Clause  82,  page  168,  leave out line 14 and insert—

 

“(c)    

carried interest gains (see subsections (12) and (13)).”

 

Mr Chancellor of the Exchequer

 

Agreed to  151

 

Clause  82,  page  169,  line  4,  at end insert—

 

“(11A)    

After subsection (11) insert—

 

“(12)    

In subsection (2A)(c) “carried interest gains” means—

 

(a)    

gains treated as accruing under section 103KA(2) or (3), and

 

(b)    

gains accruing to an individual as a result of carried interest

 

arising to the individual where—

 

(i)    

the individual performs investment management

 

services directly or indirectly in respect of an investment

 

scheme under arrangements not involving a partnership,

 

(ii)    

the carried interest arises to the individual under the

 

arrangements, and

 

(iii)    

the carried interest does not constitute a co-investment

 

repayment or return.

 

(13)    

For the purposes of subsection (12)(b)—

 

(a)    

“carried interest”, in relation to any arrangements, has the same

 

meaning as in section 809EZB of ITA 2007 (see sections

 

809EZC and 809EZD of that Act);

 

(b)    

carried interest “arises” to an individual if it arises to him or her

 

for the purposes of Chapter 5E of Part 13 of ITA 2007;

 

(c)    

“arrangements”, “investment management services” and

 

“investment scheme” have the same meanings as in that Chapter

 

(see sections 809EZA(6) and 809EZE of that Act);

 

(d)    

“co-investment repayment or return” has the same meaning as in

 

section 103KA.”

 


 

John McDonnell

 

Rebecca Long Bailey

 

Peter Dowd

 

Not called  175

 

Schedule  14,  page  481,  line  36,  at end insert—

 

“(12)    

Section 169Z makes provision about the expiration of this Chapter.”


 
 

Report Stage Proceedings: 6 September 2016              

3

 

Finance Bill, as amended, continued

 
 

John McDonnell

 

Rebecca Long Bailey

 

Peter Dowd

 

Not called  176

 

Schedule  14,  page  499,  line  15,  at end insert—

 

“169VZ 

  Expiration of Chapter 5 provisions

 

(1)    

The provisions of this Chapter shall remain in force until six years after their

 

commencement and shall then expire, unless continued in force by an order under

 

subsection (2).

 

(2)    

The Secretary of State may by order made by statutory instrument provide—

 

(a)    

that all or any of those provisions which are in force shall continue in

 

force for a period not exceeding 12 months from the coming into

 

operation of the order; or

 

(b)    

that all or any of those provisions which are for the time being in force

 

shall cease to be in force.

 

(3)    

No order shall be made under subsection (2) unless—

 

(a)    

a draft of the order has been laid before and approved by a resolution of

 

both Houses of Parliament,

 

(b)    

the Secretary of State has commissioned a review of the operation of

 

Investor’s Relief and laid the report of the review before both Houses of

 

Parliament.”

 


 

NEW CLAUSES, NEW SCHEDULES AND AMENDMENTS TO CLAUSES RELATING TO

 

insurance premium tax; remaining new clauses, new schedules and

 

amendments to clauses and schedules; remaining proceedings on

 

consideration

 

Mr Chancellor of the Exchequer

 

Added  NC9

 

To move the following Clause—

 

         

“Tax treatment of supplementary welfare payments: Northern Ireland

 

(1)    

In this section “supplementary welfare payment” means a payment made under

 

regulations under—

 

(a)    

Article 135(1)(a) of the Welfare Reform (Northern Ireland) Order 2015

 

(S.I. 2015/2006 (N.I. 1)) (“the Order”) (discretionary support),

 

(b)    

Article 137 of the Order (payments to persons suffering financial

 

disadvantage), or

 

(c)    

any provision (including future provision) of the Order which enables

 

provision to be made for payments to persons who suffer financial

 

disadvantage as a result of relevant housing benefit changes.

 

(2)    

In subsection (1)(c) “relevant housing benefit changes” means changes to social

 

security benefits consisting of or including changes contained in the Housing

 

Benefit (Amendment) Regulations (Northern Ireland) 2016 (S.R. (N.I.) 2016 No.

 

258).

 

(3)    

The Treasury may by regulations amend any provision of Chapters 1 to 5 of Part

 

10 of ITEPA 2003 so as to—

 

(a)    

provide that no liability to income tax arises on supplementary welfare

 

payments of a specified description;


 
 

Report Stage Proceedings: 6 September 2016              

4

 

Finance Bill, as amended, continued

 
 

(b)    

impose a charge to income tax under Part 10 of ITEPA 2003 on payments

 

of a specified description made under regulations under Article 137 of the

 

Order (payments to persons suffering financial disadvantage).

 

(4)    

The regulations may make—

 

(a)    

different provision for different cases;

 

(b)    

incidental or supplementary provision;

 

(c)    

consequential provision (which may include provision amending any

 

provision made by or under the Income Tax Acts).

 

(5)    

Regulations made before 6 April 2017 may, so far as relating to the tax year 2016-

 

17, have effect in relation to times before they are made.

 

(6)    

Regulations under this section are to be made by statutory instrument.

 

(7)    

A statutory instrument containing regulations under this section is subject to

 

annulment in pursuance of a resolution of the House of Commons.

 

(8)    

In section 655(2) of ITEPA 2003 (other provisions about the taxation of social

 

security payments) after the entry relating to section 782 of ITTOIA 2005 insert “;

 

section (Tax treatment of supplementary welfare payments: Northern

 

Ireland) of FA 2016 (tax treatment of supplementary welfare payments:

 

Northern Ireland).””

 


 

Mr David Burrowes

 

Dr Sarah Wollaston

 

Fiona Bruce

 

Not called  NC2

 

To move the following Clause—

 

         

“Review of the impact of the duty regime for high-strength cider

 

(1)    

The Chancellor of the Exchequer must carry out a review of the impact of the rate

 

of duty charged on sparkling cider of a strength exceeding 5.5%, and lay the

 

report of the review before both Houses of Parliament within 12 months of this

 

Act receiving Royal Assent.

 

(2)    

The review must address (though need not be limited to) the impact of the duty

 

regime on tax revenues and on the consumption of alcohol.”

 



 
 

Report Stage Proceedings: 6 September 2016              

5

 

Finance Bill, as amended, continued

 
 

Mr David Burrowes

 

Derek Thomas

 

Fiona Bruce

 

Steve Double

 

Michael Tomlinson

 

Jeremy Lefroy

 

Mr David Nuttall

 

Tim Loughton

 

Martin Vickers

 

Mr Philip Hollobone

 

Mr Peter Bone

 

Caroline Ansell

 

Mr Gary Streeter

 

Maria Caulfield

 

Ian Duncan Smith

 

Dr Julian Lewis

 

Not called  NC3

 

To move the following Clause—

 

         

“Review of the operation of the transferable tax allowance for married

 

couples and civil partners

 

(1)    

The Chancellor of the Exchequer must carry out a review of the operation of the

 

transferable tax allowance for married couples and civil partners under Chapter

 

3A of Part 3 of the Income Tax Act 2007 and lay the report of the review before

 

both Houses of Parliament within 12 months of this Act receiving Royal Assent.

 

(2)    

The review must address (though need not be limited to)—

 

(a)    

levels of take-up of the allowance;

 

(b)    

the impact of the allowance on individuals with children aged five years

 

or under;

 

(c)    

the impact of the allowance on low-income households; and

 

(d)    

ways in which the allowance could be changed to target low-income

 

families with young children.”

 


 

Roger Mullin

 

Kirsty Blackman

 

Philip Boswell

 

Not called  NC6

 

To move the following Clause—

 

         

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

 

Rescue Service

 

The Chancellor of the Exchequer must commission a review of the VAT

 

treatment of the Scottish Police Authority and the Scottish Fire and Rescue

 

Service, including but not limited to an analysis of the impact on the financial

 

position of Police Scotland and 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, and must

 

publish the report of the review within six months of the passing of this Act.”

 



 
 

Report Stage Proceedings: 6 September 2016              

6

 

Finance Bill, as amended, continued

 
 

Roger Mullin

 

Kirsty Blackman

 

Philip Boswell

 

Negatived on division  NC8

 

To move the following Clause—

 

         

“Review of changes to tax on dividend income

 

(1)    

The Chancellor of the Exchequer must commission a review of how the changes

 

to the tax on dividend income implemented by this Act affect directors of micro-

 

business companies, to include—

 

(a)    

the impacts across the distribution of such directors’ net income;

 

(b)    

the impact on company failure rates; and

 

(c)    

options for amending the law to minimise the impact on such directors

 

who are on low incomes.

 

(2)    

The Chancellor must lay a report of the review before both Houses of Parliament

 

within six months of the passing of this Act.”

 


 

Barry Gardiner

 

John McDonnell

 

Rebecca Long Bailey

 

Negatived on division  NC15

 

To move the following Clause—

 

         

“VAT on Installation of Energy Saving Materials

 

(1)    

No order shall be made under the Value Added Tax Act 1994 which would have

 

the effect of raising the rate of VAT on installation of energy saving materials, or

 

any individual category thereof.

 

(2)    

No order shall be made under the Value Added Tax Act 1994 to vary Schedule

 

7A of that Act by deleting or varying any description of supply within Group 2

 

(Installation of Energy Saving Materials).

 

(3)    

“Installation of energy saving materials” has the meaning given in Schedule 7A

 

of the Value Added Tax Act 1994.””

 


 

Tim Farron

 

Tom Brake

 

Not called  NC16

 

To move the following Clause—

 

         

“Review of impact of tax measures on intergenerational fairness

 

(1)    

Within six months of the passage of this Act the Secretary of State must lay before

 

Parliament a report assessing the impact of —

 

(a)    

Sections 1 to 3,

 

(b)    

Sections 19 to 22,

 

(c)    

Section 82,

 

(d)    

Sections 92 to 96, and


 
 

Report Stage Proceedings: 6 September 2016              

7

 

Finance Bill, as amended, continued

 
 

(e)    

Section 140

 

on the burden of taxation by age demographic.

 

(2)    

A report under this section must include an analysis of the proportion of taxation

 

paid by working age people under the age of 35.”

 


 

Roger Mullin

 

Kirsty Blackman

 

Philip Boswell

 

Not selected  NC17

 

To move the following Clause—

 

         

“Review of income tax treatment of workers providing services through

 

intermediaries

 

The Chancellor of the Exchequer must conduct a strategic review of the impact

 

on workers defined as providing services through intermediaries of their

 

treatment for income tax purposes, including the differential impact on different

 

types of worker, and must publish the report of the review within six months of

 

the passing of this Act.”

 


 

Roger Mullin

 

Kirsty Blackman

 

Philip Boswell

 

Not called  NC18

 

To move the following Clause—

 

         

“Impact of section 24 of Finance (No 2) Act 2015 on availability of affordable

 

housing

 

The Chancellor of the Exchequer must commission a review of the impact of

 

changes relating to income tax made by Section 24 of the Finance Act 2015 on

 

the availability of affordable housing, and lay the report of the review before both

 

Houses of Parliament within six months of the passing of this Act.”

 



 
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Revised 06 September 2016