1

House of Commons

Notices of Amendments

given up to and including

Wednesday 31 August 2016

New Amendments handed in are marked thus

Amendments which will comply with the required notice period at their next appearance

Amendments tabled since the last publication: 141-179, NC3-NC16

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withdrawn amendments at the end.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

Roger Mullin

NC5

To move the following Clause—

“Corporation tax treatment of the oil and gas industry

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

Act, commission a comprehensive review of the corporation tax rates and

investment allowances applicable to companies producing oil and gas in the UK

or on the UK continental shelf, and publish the report of the review.”

Notices of Amendments: 31 August 2016                  

2

Finance Bill, continued

John McDonnell

Rebecca Long Bailey

NC10

To move the following Clause—

“Review of the operation of the Patent Box

(1)    

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

Act, lay an independent report of the value for money provided by, and the

efficacy of, the Patent Box legislation before both Houses of Parliament.

(2)    

The report shall—

(a)    

assess the size and nature of the companies taking advantage of the Patent

Box legislation;

(b)    

assess the impact of the Patent Box legislation on research and innovation

in the UK, including supporting evidence; and

(c)    

assess the cost effectiveness of the Patent Box legislation in incentivising

research and development compared to other policy options.”

John McDonnell

Rebecca Long Bailey

NC11

To move the following Clause—

“Assessment of taxation regime for securitisation companies

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

Act, commission an independent assessment of the efficacy of the taxation

regime to which securitisation companies are subject and lay the assessment

before both Houses of Parliament.”

Tim Farron

Tom Brake

177

Page  87,  line  6,  leave out Clause 44

John McDonnell

Rebecca Long Bailey

162

Page  87,  line  8,  leave out Clause 45

Notices of Amendments: 31 August 2016                  

3

Finance Bill, continued

Mr Chancellor of the Exchequer

152

Schedule  9,  page  391,  leave out lines 20 to 22 and insert—

“23(1)  

Section 357GE (other interpretation) is amended as follows.

      (2)  

In subsection (1)—

(a)    

at the appropriate place insert—

““payment” includes payment in money’s worth.”, and

(b)    

omit the definition of “qualifying residual profit”.

      (3)  

After subsection (1) insert—

“(1A)    

In Chapters 3 and 4 of this Part “qualifying residual profit” of a trade,

in relation to any accounting period, is the amount obtained by the

application of Steps 1 to 4 in section 357C or (as the case may be)

section 357DA in relation to the trade for the accounting period.””

Mr Chancellor of the Exchequer

153

Schedule  9,  page  391,  line  27,  after “357A(11)”,” insert—

“( )    

in the entry for “qualifying residual profit of a trade (in Part 8A)”, in

the left hand column, after “in” insert “Chapters 3 and 4 of”,”

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.”

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”

Notices of Amendments: 31 August 2016                  

4

Finance Bill, continued

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”

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”.”

Notices of Amendments: 31 August 2016                  

5

Finance Bill, continued

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

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”

Notices of Amendments: 31 August 2016                  

6

Finance Bill, continued

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)”

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

Notices of Amendments: 31 August 2016                  

7

Finance Bill, continued

(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

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

154

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

“( )    

A taxable period of an investor 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