Session 2016-17
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1

 

House of Commons

 
 

Notices of Amendments

 

given up to and including

 

Thursday 21 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: 140, NC1-NC2

 

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withdrawn amendments at the end.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

 

accordance with the Finance Bill Programme (No. 2) Motion to be proposed by

 

Mr   Chancellor of the Exchequer.

 

 


 

NEW CLAUSES, NEW SCHEDULES AND AMENDMENTS TO CLAUSES AND SCHEDULES

 

RELATING TO CORPORATION TAX

 

Mr Chancellor of the Exchequer

 

1

 

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

 

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

 

“( )    

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


 
 

Notices of Amendments: 21 July 2016                     

2

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

3

 

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

 

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

 

subsection (6A), for”

 

Mr Chancellor of the Exchequer

 

5

 

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

 

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

 

and (4A)”

 

Mr Chancellor of the Exchequer

 

7

 

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);

 

(c)    

Part 4 (transfer pricing);

 

(d)    

this Part;

 

(e)    

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

 

Mr Chancellor of the Exchequer

 

8

 

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

 

(6A), for”

 

Mr Chancellor of the Exchequer

 

9

 

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

 

the financial instrument”


 
 

Notices of Amendments: 21 July 2016                     

3

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

10

 

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

 

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

 

Mr Chancellor of the Exchequer

 

12

 

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

 

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),

 

(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


 
 

Notices of Amendments: 21 July 2016                     

4

 

Finance Bill, continued

 
 

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

 

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

 

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

 

(8), for”

 

Mr Chancellor of the Exchequer

 

16

 

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

 

(4) and (4A)”

 

Mr Chancellor of the Exchequer

 

17

 

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).”

 

Mr Chancellor of the Exchequer

 

18

 

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

 

(8), for”

 

Mr Chancellor of the Exchequer

 

19

 

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

 

Mr Chancellor of the Exchequer

 

20

 

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)”


 
 

Notices of Amendments: 21 July 2016                     

5

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

21

 

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

 

412

 

Mr Chancellor of the Exchequer

 

22

 

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

 

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.”

 

Mr Chancellor of the Exchequer

 

24

 

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

 

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

 

payment into account”

 

Mr Chancellor of the Exchequer

 

26

 

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


 
 

Notices of Amendments: 21 July 2016                     

6

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

27

 

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

 

accounting period”

 

Mr Chancellor of the Exchequer

 

28

 

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

 

Mr Chancellor of the Exchequer

 

29

 

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

 

period”

 

Mr Chancellor of the Exchequer

 

30

 

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

 

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

 

period”

 

Mr Chancellor of the Exchequer

 

32

 

Schedule  10,  page  419,  line  47,  at end insert—

 

“( )    

A taxable period of the payer is “permitted” for the purposes of subsection (9)

 

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.”

 

Mr Chancellor of the Exchequer

 

33

 

Schedule  10,  page  420,  line  8,  leave out “permanent establishment of a

 

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

 

the United Kingdom”


 
 

Notices of Amendments: 21 July 2016                     

7

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

34

 

Schedule  10,  page  420,  line  10,  leave out from “counteracts” to “by” in line 11 and

 

insert “such deductions”

 

Mr Chancellor of the Exchequer

 

35

 

Schedule  10,  page  420,  line  15,  leave out “, “the parent jurisdiction” and “the PE

 

jurisdiction”” and insert “and “the parent jurisdiction””

 

Mr Chancellor of the Exchequer

 

36

 

Schedule  10,  page  420,  line  19,  leave out from “deduction” to end of line 23

 

Mr Chancellor of the Exchequer

 

37

 

Schedule  10,  page  420,  line  28,  leave out “D” and insert “C”

 

Mr Chancellor of the Exchequer

 

38

 

Schedule  10,  page  420,  line  32,  after “territory” insert “outside the United

 

Kingdom”

 

Mr Chancellor of the Exchequer

 

39

 

Schedule  10,  page  420,  leave out lines 34 to 37 and insert—

 

“(b)    

it is within the charge to corporation tax because it carries on a business

 

in the United Kingdom through a permanent establishment in the United

 

Kingdom.”

 

Mr Chancellor of the Exchequer

 

40

 

Schedule  10,  page  420,  line  39,  leave out “under the law of the PE jurisdiction,”

 

Mr Chancellor of the Exchequer

 

41

 

Schedule  10,  page  421,  line  3,  leave out “a taxable period” and insert “an

 

accounting period”

 

Mr Chancellor of the Exchequer

 

42

 

Schedule  10,  page  421,  line  3,  after “period”)” insert “for corporation tax

 

purposes”

 

Mr Chancellor of the Exchequer

 

43

 

Schedule  10,  page  421,  line  5,  leave out “PE jurisdiction” and insert “United

 

Kingdom”

 

Mr Chancellor of the Exchequer

 

44

 

Schedule  10,  page  421,  line  8,  after “for” insert “corporation”


 
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Revised 21 July 2016