Session 2016-17
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1

 

House of Commons

 
 

Notices of Amendments

 

given up to and including

 

Tuesday 19 July 2016

 

New Amendments handed in are marked thus Parliamentary Star

 

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

 

Amendments tabled since the last publication: 1-139

 

Consideration of Bill (Report Stage)


 

Finance Bill, As Amended


 

Note

 

This document includes all amendments tabled to date and includes any

 

withdrawn amendments at the end. The amendments have been arranged in the

 

order in which they relate to the Bill.

 


 

Mr Chancellor of the Exchequer

 

132

 

Parliamentary Star    

Clause  18,  page  26,  line  25,  leave out “December 2016” and insert “April 2017”

 

Mr Chancellor of the Exchequer

 

133

 

Parliamentary Star    

Clause  18,  page  26,  line  30,  leave out “December 2016” and insert “April 2017”

 

Mr Chancellor of the Exchequer

 

134

 

Parliamentary Star    

Clause  18,  page  26,  line  32,  leave out “December 2016” and insert “April 2017”

 



 
 

Notices of Amendments: 19 July 2016                     

2

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

135

 

Parliamentary Star    

Clause  31,  page  45,  line  20,  leave out subsections (5) and (6) and insert—

 

“(5)    

In subsection (3A)—

 

(a)    

for the words from “In the second” to “does not include” substitute “An

 

investment made by a company (“the investor”) falls within this

 

subsection if it is”;

 

(b)    

in paragraph (c) for “the company” substitute “the investor”;

 

(c)    

after paragraph (c) insert—

 

“(d)    

money in the investor’s possession;

 

(e)    

a sum owed to the investor which—

 

(i)    

under section 285(4)(b) (read with section

 

285(5) and (6)) is to be regarded as an

 

investment of the investor, and

 

(ii)    

is such that the investor’s right mentioned in

 

section 285(5)(a) may be exercised on 7 days’

 

notice given by the investor.”

 

(5A)    

After subsection (3A) insert—

 

“(3B)    

In subsection (3A), any reference to a thing which may be done on 7

 

days’ notice includes a case where that thing may be done—

 

(a)    

on less than 7 days’ notice, or

 

(b)    

without notice.”

 

(6)    

In subsection (5)—

 

(a)    

after paragraph (b) insert—

 

“(ba)    

amend or repeal subsection (3B) in consequence of any

 

provision made under paragraph (b),”;

 

(b)    

in paragraph (c) for the words from “made by” to “(3A)” substitute

 

“falling within subsection (3A) may be held by the company”.”

 


 

Mr Chancellor of the Exchequer

 

136

 

Parliamentary Star    

Clause  155,  page  241,  leave out lines 10 to 18 and insert—

 

“(d)    

a designated HMRC officer giving the taxpayer a pooling notice or a

 

notice of binding under Schedule 43A which—

 

(i)    

specifies the arrangements and the tax advantage which are

 

specified in the provisional counteraction notice, and

 

(ii)    

specifies the notified adjustments (or lesser adjustments) as the

 

counteraction that the officer considers ought to be taken;”

 

Mr Chancellor of the Exchequer

 

137

 

Parliamentary Star    

Clause  155,  page  241,  line  29,  after “the” insert “pooling notice or”

 



 
 

Notices of Amendments: 19 July 2016                     

3

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

138

 

Parliamentary Star    

Schedule  1,  page  323,  line  35,  at end insert—

 

“(iii)    

in Type 4 (tax charged at basic rate as a result of section 491),

 

omit “at the basic rate”, and”

 


 

Mr Chancellor of the Exchequer

 

1

 

Parliamentary Star    

Schedule  10,  page  393,  line  26,  leave out “permanent establishment of a

 

multinational company” and insert “multinational company’s permanent establishment in

 

the United Kingdom”

 

Mr Chancellor of the Exchequer

 

2

 

Parliamentary Star    

Schedule  10,  page  402,  line  24,  at end insert—

 

“( )    

Section 259CBA contains definitions of certain terms used in section 259CB.”

 

Mr Chancellor of the Exchequer

 

3

 

Parliamentary Star    

Schedule  10,  page  404,  line  12,  at end insert—

 

“(2A)    

So far as the excess arises by reason of a relevant debt relief provision, it is to be

 

taken not to arise by reason of the terms, or any other feature, of the financial

 

instrument (whether or not it would have arisen by reason of the terms, or any

 

other feature, of the financial instrument regardless of the relevant debt relief

 

provision).”

 

Mr Chancellor of the Exchequer

 

4

 

Parliamentary Star    

Schedule  10,  page  404,  line  13,  leave out “For” and insert “Subject to that and

 

subsection (6A), for”

 

Mr Chancellor of the Exchequer

 

5

 

Parliamentary Star    

Schedule  10,  page  404,  line  15,  after “well” insert “as the terms, or any other

 

feature, of the financial instrument”

 

Mr Chancellor of the Exchequer

 

6

 

Parliamentary Star    

Schedule  10,  page  404,  line  22,  leave out “subsection (4)” insert “subsections (4)

 

and (4A)”

 

Mr Chancellor of the Exchequer

 

7

 

Parliamentary Star    

Schedule  10,  page  404,  line  48,  at end insert—

 

“(4A)    

Where the relevant assumption in subsection (4)(c) applies in relation to a payee

 

the following provisions are to be disregarded in relation to that payee for the

 

purposes of subsection (3)(b)—

 

(a)    

section 441 of CTA 2009 (loan relationships for unallowable purposes);

 

(b)    

section 690 of that Act (derivative contracts for unallowable purposes);


 
 

Notices of Amendments: 19 July 2016                     

4

 

Finance Bill, continued

 
 

(c)    

Part 4 (transfer pricing);

 

(d)    

this Part;

 

(e)    

Part 7 (tax treatment of financing costs and income).”

 

Mr Chancellor of the Exchequer

 

8

 

Parliamentary Star    

Schedule  10,  page  405,  line  5,  leave out “For” and insert “Subject to subsection

 

(6A), for”

 

Mr Chancellor of the Exchequer

 

9

 

Parliamentary Star    

Schedule  10,  page  405,  line  6,  at end insert “as the terms, or any other feature, of

 

the financial instrument”

 

Mr Chancellor of the Exchequer

 

10

 

Parliamentary Star    

Schedule  10,  page  405,  line  9,  at end insert—

 

“(6A)    

For the purposes of this section disregard—

 

(a)    

any excess or part of an excess mentioned in subsection (2), and

 

(b)    

any under-taxed amount,

 

    

that arises as a result of a payee being a relevant investment fund (see section

 

259NZA).”

 

Mr Chancellor of the Exchequer

 

11

 

Parliamentary Star    

Schedule  10,  page  405,  leave out lines 10 to 35

 

Mr Chancellor of the Exchequer

 

12

 

Parliamentary Star    

Schedule  10,  page  406,  line  7,  at end insert—

 

“( )    

See section 259CBA for the meaning of “permitted taxable period”, “relevant

 

debt relief provision” and “under taxed”.”

 

Mr Chancellor of the Exchequer

 

13

 

Parliamentary Star    

Schedule  10,  page  406,  line  7,  at end insert—

 

“259CBA 

Interpretation of section 259CB

 

(1)    

This section has effect for the purposes of section 259CB.

 

(2)    

A taxable period of a payee is “permitted” in relation to an amount of ordinary

 

income that arises as a result of the payment or quasi-payment if—

 

(a)    

the period begins before the end of 12 months after the end of the

 

payment period, or

 

(b)    

where the period begins after that—

 

(i)    

a claim has been made for the period to be a permitted period in

 

relation to the amount of ordinary income, and

 

(ii)    

it is just and reasonable for the amount of ordinary income to

 

arise for that taxable period rather than an earlier period.

 

(3)    

Each of these is a “relevant debt relief provision”—

 

(a)    

section 322 of CTA 2009 (release of debts: cases where credits not

 

required to be brought into account),


 
 

Notices of Amendments: 19 July 2016                     

5

 

Finance Bill, continued

 
 

(b)    

section 357 of that Act (insolvent creditors),

 

(c)    

section 358 of that Act (exclusion of credits on release of connected

 

companies’ debts: general),

 

(d)    

section 359 of that Act (exclusion of credits on release of connected

 

companies’ debts during creditor’s insolvency),

 

(e)    

section 361C of that Act (the equity-for-debt exception),

 

(f)    

section 361D of that Act (corporate rescue: debt released shortly after

 

acquisition), and

 

(g)    

section 362A of that Act (corporate rescue: debt released shortly after

 

connection arises).

 

(4)    

An amount of ordinary income of a payee, for a permitted taxable period, is

 

“under taxed” if the highest rate at which tax is charged on the taxable profits of

 

the payee in which the amount is included, taking into account on a just and

 

reasonable basis the effect of any credit for underlying tax, is less than the payee’s

 

full marginal rate for that period.

 

(5)    

The payee’s “full marginal rate” means the highest rate at which the tax that is

 

chargeable on the taxable profits mentioned in subsection (4) could be charged on

 

taxable profits, of the payee for the permitted taxable period, which include

 

ordinary income that arises from, or in connection with, a financial instrument.

 

(6)    

A “credit for underlying tax” means a credit or relief given to reflect tax charged

 

on profits that are wholly or partly used to fund (directly or indirectly) the

 

payment or quasi-payment.”

 

Mr Chancellor of the Exchequer

 

14

 

Parliamentary Star    

Schedule  10,  page  407,  line  42,  at end insert—

 

“( )    

Section 259DCA contains definitions of certain terms used in section 259DC.”

 

Mr Chancellor of the Exchequer

 

15

 

Parliamentary Star    

Schedule  10,  page  410,  line  31,  leave out “For” and insert “Subject to subsection

 

(8), for”

 

Mr Chancellor of the Exchequer

 

16

 

Parliamentary Star    

Schedule  10,  page  410,  line  40,  leave out “subsection (4)” and insert “subsections

 

(4) and (4A)”

 

Mr Chancellor of the Exchequer

 

17

 

Parliamentary Star    

Schedule  10,  page  411,  line  16,  at end insert—

 

“(4A)    

Where the relevant assumption in subsection (4)(c) applies in relation to a payee

 

the following provisions are to be disregarded in relation to that payee for the

 

purposes of subsection (3)(b)—

 

(a)    

section 441 of CTA 2009 (loan relationships for unallowable purposes);

 

(b)    

Part 4 (transfer pricing);

 

(c)    

this Part;

 

(d)    

Part 7 (tax treatment of financing costs and income).”


 
 

Notices of Amendments: 19 July 2016                     

6

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

18

 

Parliamentary Star    

Schedule  10,  page  411,  line  22,  leave out “For” and insert “Subject to subsection

 

(8), for”

 

Mr Chancellor of the Exchequer

 

19

 

Parliamentary Star    

Schedule  10,  page  411,  line  32,  after “any” insert “excess or”

 

Mr Chancellor of the Exchequer

 

20

 

Parliamentary Star    

Schedule  10,  page  411,  line  35,  at end insert “or that arises as a result of a payee

 

being a relevant investment fund (see section 259NZA)”

 

Mr Chancellor of the Exchequer

 

21

 

Parliamentary Star    

Schedule  10,  page  411,  line  36,  leave out from beginning to end of line 12 on page

 

412

 

Mr Chancellor of the Exchequer

 

22

 

Parliamentary Star    

Schedule  10,  page  412,  line  31,  at end insert—

 

“( )    

See section 259DCA for the meaning of “permitted taxable period” and “under

 

taxed”.”

 

Mr Chancellor of the Exchequer

 

23

 

Parliamentary Star    

Schedule  10,  page  412,  line  31,  at end insert—

 

“259DCA 

Interpretation of section 259DC

 

(1)    

This section has effect for the purposes of section 259DC.

 

(2)    

A taxable period of a payee is “permitted” in relation to an amount of ordinary

 

income that arises as a result of the payment or quasi-payment if—

 

(a)    

the period begins before the end of 12 months after the end of the

 

payment period, or

 

(b)    

where the period begins after that—

 

(i)    

a claim has been made for the period to be a permitted period in

 

relation to the amount of ordinary income, and

 

(ii)    

it is just and reasonable for the amount of ordinary income to

 

arise for that taxable period rather than an earlier period.

 

(3)    

An amount of ordinary income of a payee, for a permitted taxable period, is

 

“under taxed” if the highest rate at which tax is charged on the taxable profits of

 

the payee in which the amount is included, taking into account on a just and

 

reasonable basis the effect of any credit for underlying tax, is less than the payee’s

 

full marginal rate for that period.

 

(4)    

The payee’s “full marginal rate” means the highest rate at which the tax that is

 

chargeable on the taxable profits mentioned in subsection (3) could be charged on

 

taxable profits, of the payee for the permitted taxable period, which include

 

ordinary income that arises from, or in connection with, a financial instrument.

 

(5)    

A “credit for underlying tax” means a credit or relief given to reflect tax charged

 

on profits that are wholly or partly used to fund (directly or indirectly) the

 

payment or quasi-payment.”


 
 

Notices of Amendments: 19 July 2016                     

7

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

24

 

Parliamentary Star    

Schedule  10,  page  412,  line  43,  leave out “not so treated for the purposes of tax

 

charged on” and insert “brought into account by”

 

Mr Chancellor of the Exchequer

 

25

 

Parliamentary Star    

Schedule  10,  page  412,  line  44,  leave out “because that person brings the substitute

 

payment into account”

 

Mr Chancellor of the Exchequer

 

26

 

Parliamentary Star    

Schedule  10,  page  417,  leave out lines 21 to 32

 

Mr Chancellor of the Exchequer

 

27

 

Parliamentary Star    

Schedule  10,  page  418,  line  15,  after “income”” insert “of the payer for an

 

accounting period”

 

Mr Chancellor of the Exchequer

 

28

 

Parliamentary Star    

Schedule  10,  page  418,  line  18,  after “payer” insert “for that period”

 

Mr Chancellor of the Exchequer

 

29

 

Parliamentary Star    

Schedule  10,  page  418,  line  20,  after “payer” insert “for a permitted taxable

 

period”

 

Mr Chancellor of the Exchequer

 

30

 

Parliamentary Star    

Schedule  10,  page  418,  line  21,  at end insert—

 

“( )    

A taxable period of the payer is “permitted” for the purposes of paragraph (b) of

 

subsection (4) if—

 

(a)    

the period begins before the end of 12 months after the end of the

 

accounting period mentioned in paragraph (a) of that subsection, or

 

(b)    

where the period begins after that—

 

(i)    

a claim has been made for the period to be a permitted period in

 

relation to the amount of ordinary income, and

 

(ii)    

it is just and reasonable for the amount of ordinary income to

 

arise for that taxable period rather than an earlier period.”

 

Mr Chancellor of the Exchequer

 

31

 

Parliamentary Star    

Schedule  10,  page  419,  line  45,  after “payer” insert “for a permitted taxable

 

period”


 
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Revised 19 July 2016