Session 2017-19
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Other Bills before Parliament


 
 

1

 

House of Commons

 
 

Tuesday 24 October 2017

 

Public Bill Committee Proceedings

 

Finance Bill


 

(Except Clause 5 and any new Clauses or new Schedules relating to the tax treatment of


 

payments or benefits received in connection with the termination of an employment or a


 

change in the duties in, or earnings from, an employment; Clause 15 and any new Clauses or


 

new Schedules relating to the conditions under which business investment relief in Chapter


 

A1 of Part 14 of the Income Tax Act 2007 is available; Clause 25 and any new Clauses or new


 

Schedules relating to the extent to which trading profits are chargeable to corporation tax at


 

the Northern Ireland rate)


 

[Fifth and Sixth Sittings]


 

Glossary

 

This document shows the fate of each clause, schedule, amendment and new clause.

 

The following terms are used:

 

Agreed to: agreed without a vote.

 

Agreed to on division: agreed following a vote.

 

Negatived: rejected without a vote.

 

Negatived on division: rejected following a vote.

 

Not called: debated in a group of amendments, but not put to a decision.

 

Not moved: not debated or put to a decision.

 

Question proposed: debate underway but not concluded.

 

Withdrawn after debate: moved and debated but then withdrawn, so not put to a decision.

 

Not selected: not chosen for debate by the Chair.

 

 


 

Clauses 43 to 55 Agreed to.

 

Schedule 13 Agreed to.

 

Clauses 56 to 59 Agreed to.


 
 

Public Bill Committee Proceedings: 24 October 2017        

2

 

Finance Bill, continued

 
 

Kirsty Blackman

 

David Linden

 

Negatived on division  37

 

Clause  60,  page  71,  line  16,  leave out “paragraph 2” and insert “paragraphs 1A and

 

2.

 

1A  (1)  

The provisions of this Schedule shall not apply to a person specified in

 

paragraph 1(1) except in accordance with the provisions of this paragraph.

 

      (2)  

No person shall be subject to the provisions of this Schedule unless they fall

 

within a class of persons specified in regulations made under sub-paragraph

 

(3).

 

      (3)  

The Commissioners may by regulations specify a class of persons to whom this

 

Schedule applies provided that the relevant conditions in sub-paragraphs (4) to

 

(9) are met.

 

      (4)  

The condition in this sub-paragraph is that the first regulations may not be

 

made until after the Commissioners have undertaken an assessment of the

 

impact of the implementation of the provisions of this Schedule on—

 

(a)    

small businesses that have limited technological connectedness,

 

(b)    

businesses in rural areas, and

 

(c)    

businesses that are likely to have been affected by the closure of

 

HMRC offices.

 

      (5)  

The condition in this sub-paragraph is that the first regulations may not apply

 

to more than 25 per cent of persons to whom paragraph 1(1) applies.

 

      (6)  

The condition in this sub-paragraph is that the Commissioners have prepared

 

an assessment of the likely effects of making regulations in the form of a draft

 

which has been laid before the House of Commons by the Treasury.

 

      (7)  

The condition in this sub-paragraph is that the House of Commons has

 

resolved that regulations should be made in the form of a draft laid in

 

accordance with sub-paragraph (6).

 

      (8)  

The condition in this sub-paragraph is that the second regulations may not be

 

made—

 

(a)    

until at least twelve months have elapsed since the making of the first

 

regulations,

 

(b)    

unless, taken together with the first regulations, they apply to no more

 

than 90 per cent of persons to whom paragraph 1(1) applies.

 

      (9)  

The condition in this sub-paragraph is that the third set of regulations may not

 

be made until at least twelve months have passed since the making of the

 

second regulations.”

 

Stella Creasy

 

Not called  7

 

Clause  60,  page  75,  line  7,  at end insert—

 

“(1A)    

Regulations under sub-paragraph (1) must in particular require a person or

 

partnership to record service charges separately from other income.”

 

Stella Creasy

 

Negatived on division  8

 

Clause  60,  page  75,  line  7,  at end insert—

 

“(1B)    

Regulations under sub-paragraph (1) must in particular require a person or

 

partnership to maintain separate records in respect of each employee and in

 

respect of any prescribed time period of service charges received and to make

 

those records available in a prescribed manner.

 

(1C)    

In sub-paragraph (1B), “prescribed” means prescribed by regulations.”


 
 

Public Bill Committee Proceedings: 24 October 2017        

3

 

Finance Bill, continued

 
 

Stella Creasy

 

Not selected  9

 

Clause  60,  page  75,  line  7,  at end insert—

 

“(1D)    

Regulations under sub-paragraph (1) must in particular establish a right for

 

employees to obtain from their employer information relevant to their own tax

 

liabilities from digital records of service charges received.”

 

Stella Creasy

 

Not called  39

 

Clause  60,  page  75,  line  7,  at end insert—

 

“(1B)    

Regulations under sub-paragraph (1) must in particular require a person or

 

partnership to maintain separate records in respect of each employee and in

 

respect of any prescribed time period of service charges received and to make

 

those records available to those employees.

 

(1C)    

in sub-paragraph (1B), “prescribed” means prescribed by regulations.”

 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

Negatived on division  33

 

Clause  60,  page  78,  line  19,  after “day”, insert “no earlier than 1 January 2022”.

 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

Negatived on division  40

 

Clause  60,  page  78,  line  20,  at end insert—

 

“(4A)    

No regulations may be made under subsection (4) until after 90 days after the

 

Chancellor of the Exchequer has laid a report before the House of Commons

 

which sets out—

 

(a)    

the steps which HMRC has undertaken to establish that suitable software

 

is available;

 

(b)    

the results of the testing by HMRC and others of that software; and

 

(c)    

the reasons why mandatory use of the software is in the interest of HMRC

 

and taxpayers.”

 

Clause Agreed to.

 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

Not called  34

 

Clause  61,  page  78,  line  34,  after “day”, insert “no earlier than 1 January 2022”.

 

Clause Agreed to.

 

Schedule 14 Agreed to.

 



 
 

Public Bill Committee Proceedings: 24 October 2017        

4

 

Finance Bill, continued

 
 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

Not called  35

 

Clause  62,  page  79,  line  12,  at end insert—

 

“(5A)    

No regulations may be made under sub-paragraph (5) on a day prior to 1 January

 

2022.”

 

Kirsty Blackman

 

David Linden

 

Not called  38

 

Clause  62,  page  79,  line  12,  at end insert—

 

“(5A)    

But no regulations may be made by the Commissioners unless the conditions in

 

sub-paragraphs (5B) to (5D) are met.

 

(5B)    

The condition in this sub-paragraph is that the first regulations may not be made

 

until after the Commissioners have undertaken an assessment of the impact of the

 

implementation of the provisions of those regulations on—

 

(a)    

small businesses that have limited technological connectedness,

 

(b)    

businesses in rural areas, and

 

(c)    

businesses that are likely to have been affected by the closure of HMRC

 

offices.

 

(5C)    

The condition in this sub-paragraph is that the Commissioners have prepared an

 

assessment of the likely effects of making regulations in the form of a draft which

 

has been laid before the House of Commons by the Treasury.

 

(5D)    

The condition in this sub-paragraph is that the House of Commons has resolved

 

that regulations should be made in the form of a draft laid in accordance with sub-

 

paragraph (5C).”

 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

Negatived on division  36

 

Clause  62,  page  79,  line  19,  at end insert—

 

“(6A)    

Regulations under sub-paragraph (5) may not impose mandatory requirements

 

for businesses to generate quarterly updates.”

 

Stella Creasy

 

Negatived on division  10

 

Clause  62,  page  80,  line  13,  at end insert—

 

“(12)    

Before making regulations under sub-paragraph (5) and in any case within three

 

months of the passing of the Finance (No. 2) Act 2017, the Commissioners shall

 

lay before the House of Commons an assessment on the effects on compliance

 

with the requirements of those regulations by small businesses of the United

 

Kingdom’s withdrawal from the European Union.”

 

Clause Agreed to.

 

Clause 63 Agreed to.

 

Schedule 15 Agreed to.


 
 

Public Bill Committee Proceedings: 24 October 2017        

5

 

Finance Bill, continued

 
 

Clauses 64 and 65 Agreed to.

 


 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

Negatived on division  41

 

Schedule  16,  page  609,  line  4,  out “may” and insert “must”

 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

Negatived on division  42

 

Schedule  16,  page  611,  line  27,  at end insert—

 

“Duty to publish information on operation of penalty regime

 

51A(1)  

The Commissioners must publish information about the operation of the

 

penalty scheme in relation to each tax year within six months of the completion

 

of that tax year.

 

      (2)  

Such information shall cover in particular—

 

(a)    

the nature of the abusive tax arrangements giving rise to penalties,

 

(b)    

the extent to which such arrangements relate to offshore income,

 

assets and activities,

 

(c)    

the extent to which people who would otherwise have been liable for

 

a penalty under these provisions were not liable due to being convicted

 

of a criminal offence in accordance with paragraph 52.”

 

Schedule Agreed to.

 

Clause 66 Agreed to.

 

Schedule 17 Agreed to.

 

Clause 67 Agreed to.

 

Schedule 18 Agreed to.

 

Clause 68 Agreed to.

 


 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

Negatived on division  43

 

Clause  69,  page  91,  line  16,  at end insert—

 

“(1A)    

In Schedule 23 to FA 2011, after paragraph 65, insert—

 

“66(1)  

No later than 30 September 2020, the Commissioner shall undertake a

 

review of the exercise of the powers under this Schedule in relation to

 

relevant data holders specified in paragraph 13D.


 
 

Public Bill Committee Proceedings: 24 October 2017        

6

 

Finance Bill, continued

 
 

      (2)  

The review shall consider in particular the number of appeals in

 

relation to Data-holder Notices.

 

      (3)  

The Chancellor of the Exchequer shall lay a report of a review under

 

this paragraph before the House of Commons within one month of its

 

completion.”

 

Clause Agreed to.

 

Clauses 70 to 72 Agreed to.

 


 

New Clauses

 

Stella Creasy

 

Negatived on division  NC1

 

To move the following Clause—

 

         

“Review of relief from corporation tax relief for PFI companies

 

(1)    

Within three months of the passing of this Act, the Commissioners for Her

 

Majesty’s Revenue and Customs shall complete a review about how corporation

 

tax relief is given for losses, deficits, expenses and other amounts of PFI

 

companies.

 

(2)    

For the purposes of this section, “a PFI company” means a company which has

 

entered into a contract with a public sector body under the Private Finance

 

Initiative or the PF2 initiative.

 

(3)    

The Chancellor of the Exchequer shall lay a report of the review under this section

 

before the House of Commons within three months of its completion.”

 


 

Stella Creasy

 

Negatived on division  NC2

 

To move the following Clause—

 

         

“Taxation of chargeable gains: review of treatment of commercial property

 

held by persons with foreign domicile

 

(1)    

The Taxation of Chargeable Gains Act 1992 is amended as follows.

 

(2)    

After section 14 (non-resident groups of companies), insert—

 

         

“Review of treatment of commercial property held by persons with

 

foreign domicile

 

(1)    

Within three months of the passing of the Finance (No. 2) Act 2017, the

 

Commissioners for Her Majesty’s Revenue and Customs shall complete

 

a review about the taxation of chargeable gains held by persons with

 

foreign domicile.

 

(2)    

The review shall consider in particular the implications if the treatment

 

of commercial property were to be the same as the treatment of

 

residential property under section 4BB(2).


 
 

Public Bill Committee Proceedings: 24 October 2017        

7

 

Finance Bill, continued

 
 

(3)    

The Chancellor of the Exchequer shall lay a report of the review under

 

this section before the House of Commons within three months of its

 

completion.””

 


 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

Negatived on division  NC3

 

To move the following Clause—

 

         

“Deemed domicile: review of protection of overseas trusts

 

(1)    

Within fifteen months of the passing of this Act, the Commissioners for Her

 

Majesty’s Revenue and Customs shall complete a review about the operation of

 

the provisions for the protection of overseas trusts in relation to deemed domicile.

 

(2)    

The review shall in particular consider—

 

(a)    

the effects of those provisions on the Exchequer,

 

(b)    

the behavioural effects of those provisions, and

 

(c)    

the effects on the matters specified in paragraphs (a) and (b) if those

 

provisions were repealed.

 

(3)    

For the purposes of this section, “the provisions for the protection of overseas

 

trusts” means the provisions inserted by paragraphs 18 to 38 and 40 of Schedule

 

8 to this Act.

 

(4)    

The Chancellor of the Exchequer shall lay a report of the review under this section

 

before the House of Commons within three months of its completion.”

 


 

Kelvin Hopkins

 

Not selected  NC4

 

To move the following Clause—

 

         

“Distributional analysis of the impact of taxation measures

 

(1)    

The Chancellor of the Exchequer must review the impact of the measures

 

introduced by this Act on households at different levels of income, and lay before

 

each House of Parliament the report of that review within six months of this Act

 

coming into force.

 

(2)    

The Chancellor of the Exchequer must review the impact of government fiscal

 

measures on households at different levels of income at least once in each

 

calendar year, and lay before each House of Parliament a report on each review.”

 



 
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Revised 24 October 2017