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Notices of Amendments: 12 January 2018                  

8

 

Finance (No. 2) Bill, continued

 
 

Mel Stride

 

28

 

Schedule  10,  page  152,  leave out lines 10 to 19 and insert—

 

“(2)    

Where, in a case within subsection (1)(a)(i) and by reference to the amount

 

mentioned in subsection (1)(a), income is treated by section 643J or 643L as

 

arising to a person for a tax year, the original beneficiary is not liable to tax for

 

any later tax year on so much of the amount mentioned in subsection (1)(a) as is

 

equal to that income; and where, in a case within subsection (1)(a)(ii) and by

 

reference to the amount mentioned in subsection (1)(a), income is treated by

 

section 643J as arising to a person for a tax year, the settlor is not liable to tax for

 

any later tax year on so much of the amount mentioned in subsection (1)(a) as is

 

equal to that income.”

 

Mel Stride

 

29

 

Schedule  10,  page  154,  line  38,  leave out “643A(1)” and insert “643A(1)(a), both

 

before and after the application of section 643A(3) and (4),”

 

Mel Stride

 

30

 

Schedule  10,  page  156,  line  40,  at end insert—

 

“(ca)    

the original recipient is not taxed on the original benefit (see subsection

 

(6A)),”

 

Mel Stride

 

31

 

Schedule  10,  page  158,  line  15,  at end insert—

 

“(6A)    

For the purposes of subsection (1)(ca), the original recipient is taxed on the

 

original benefit if the original recipient is liable to income tax, or capital gains tax,

 

by reference to the amount or value of the original benefit; and where the original

 

recipient is so liable by reference to the amount or value of part only of the

 

original benefit, this section applies as if the two parts of the original benefit were

 

separate benefits.”

 

Mel Stride

 

32

 

Schedule  10,  page  158,  line  21,  at end insert—

 

    

“and see also section 643B(4) to (7) (interpretation of references to provision of

 

benefits by trustees).”

 


 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

56

 

Parliamentary Star - white    

Clause  38,  page  27,  line  6,  leave out “69” and insert “69(1)”

 

Member’s explanatory statement

 

This amendment specifies the subsection of section 69 of the Value Added Tax Act 1994 that is

 

being amended by Clause 38(2).


 
 

Notices of Amendments: 12 January 2018                  

9

 

Finance (No. 2) Bill, continued

 
 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

57

 

Parliamentary Star - white    

Clause  38,  page  27,  line  9,  at end insert—

 

“(2A)    

In subsection (3) of section 69, for “subsection (4)” substitute “subsections (3A)

 

and (4).

 

(2B)    

After subsection (3) of section 69, insert—

 

“(3A)    

In relation to a failure to comply with any regulatory requirement under

 

section 77E (display of VAT registration numbers on online

 

marketplaces), the prescribed rate shall be determined by reference to the

 

number of occasions in the period of 2 years preceding the beginning of

 

the failure in question on which the person concerned has previously

 

failed to comply with that requirement and, subject to the following

 

provisions of this section, the prescribed rate shall be—

 

(a)    

if there has been no such previous occasion in that period,

 

£5,000;

 

(b)    

if there has been only one such occasion in that period, £10,000;

 

and

 

(c)    

in any other case, £15,000.””

 

Member’s explanatory statement

 

This amendment increases the prescribed rate of a penalty for failure to comply with a regulatory

 

requirement under section 77E of the Value Added Tax Act 1994 (as proposed to be inserted by

 

Clause 38(8)).

 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

58

 

Parliamentary Star - white    

Clause  38,  page  27,  line  15,  at end insert—

 

“(ba)    

after subsection (3), insert—

 

“(3A)    

The period specified in a notice in accordance with subsection

 

(3)(a) may not be longer than 10 days.

 

(3B)    

It shall be the duty of the Commissioners to give notice under

 

subsection (2) in any case where they are satisfied that to do so

 

would protect or enhance VAT revenue.””

 

Member’s explanatory statement

 

This amendment specifies the period for compliance with a notice under section 77B as no more

 

than 10 days and requires HMRC to issue a notice in any case where VAT revenue would be

 

protected or enhanced by doing so.

 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

59

 

Parliamentary Star - white    

Clause  38,  page  27,  line  32,  leave out “60” and insert “10”

 

Member’s explanatory statement

 

This amendment reduces the period at the end of which a person must cease to offer goods in

 

breach of the registration requirement from 60 days to 10 days.

 



 
 

Notices of Amendments: 12 January 2018                  

10

 

Finance (No. 2) Bill, continued

 
 

Kirsty Blackman

 

Alison Thewliss

 

33

 

Clause  39,  page  29,  line  43,  leave out “day on which this Act is passed” and insert

 

“22 November 2017”.

 

Member’s explanatory statement

 

This amendment would change the date from which the amendment to VATA 1994 (refunds of VAT

 

in certain cases) would come into effect and would allow the public authorities set out in this clause

 

to claim VAT refunds from 22 November 2017.

 


 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

60

 

Parliamentary Star - white    

Clause  46,  page  40,  line  18,  at end insert—

 

“(9A)    

The powers under subsections (1) to (6) of this section are not available in any

 

case where—

 

(a)    

information has been provided on oath by an officer in accordance with

 

section 161A(1) of the Customs and Excise Management Act 1979

 

(power to enter premises: search warrant) and a justice of the peace has

 

not issued a warrant in consequence, or

 

(b)    

an officer could reasonably have been expected to seek a warrant in

 

accordance with the provisions of that section of that Act.”

 

Member’s explanatory statement

 

This amendment provides that the powers to enter premises and search goods may not be exercised

 

in cases where a warrant to search premises in relation to goods subject to forfeiture has been

 

sought and refused or where such a warrant could reasonably be sought.

 


 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

61

 

Parliamentary Star - white    

Clause  48,  page  42,  line  15,  leave out from “effect” to end of line 16 and insert

 

“from the date on which the Chancellor of the Exchequer lays before the House of

 

Commons a report of the review carried out under subsection (13).

 

(13)    

A review under this subsection shall consider the appropriateness of the use of the

 

New European Driving Cycle methodology for calculating carbon dioxide

 

emissions for the purposes of the provisions amended by this section.

 

(14)    

A review under subsection (13) shall also consider the effects if carbon dioxide

 

emissions were to be calculated for the purposes of the provisions amended by

 

this section using the Worldwide harmonized Light-duty vehicles Test Procedure

 

including

 

(a)    

the effects on the operation of those provisions,

 

(b)    

the revenue effects, and

 

(c)    

the effects on progress towards the Government’s targets for reducing

 

carbon dioxide emissions.”

 

Member’s explanatory statement

 

This amendment requires a pre-commencement review of the appropriateness of the current


 
 

Notices of Amendments: 12 January 2018                  

11

 

Finance (No. 2) Bill, continued

 
 

regime for calculating carbon dioxide emissions and the effects of a change to the WLTP

 

procedure.

 


 

New Clauses

 

Kirsty Blackman

 

Alison Thewliss

 

NC1

 

To move the following Clause—

 

         

“Review of retrospective VAT refunds for the Scottish Fire and Rescue

 

Service and the Scottish Police Authority

 

(1)    

Within one month of this Act receiving Royal Assent, the Chancellor of the

 

Exchequer shall commission a review of the potential consequences of allowing

 

the Scottish Fire and Rescue Service and the Scottish Police Authority to claim

 

VAT refunds under section 33 of VATA 1994 retrospective to the date of their

 

establishment.

 

(2)    

The review shall consider—

 

(a)    

the administrative consequences of allowing retrospective claims, and

 

(b)    

the impact on revenue of allowing retrospective claims.

 

(3)    

The Chancellor of the Exchequer shall lay the report of this review before the

 

House of Commons within six months of this Act receiving Royal Assent.”

 

Member’s explanatory statement

 

This new clause would require the Chancellor of the Exchequer to commission a review into what

 

the potential consequences of allowing the Scottish Fire and Rescue Service and the Scottish

 

Police Authority to make retrospective claims for VAT refunds would be.

 


 

Kirsty Blackman

 

Alison Thewliss

 

NC2

 

To move the following Clause—

 

         

“Review of the impact of the removal of the transitional taxation

 

arrangements for carried interest

 

(1)    

Within two months of Royal Assent to this Act, the Commissioners for Her

 

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

 

removal of transitional taxation arrangements for sums to which sections 43 and

 

45 of the Finance (No. 2) Act 2015 apply.

 

(2)    

The Chancellor of the Exchequer shall lay the report of this review before the

 

House of Commons.”

 

Member’s explanatory statement

 

This new clause would require HMRC to carry out a review of the impact of removing transitional

 

tax arrangements for sums to which sections 43 and 45 of the Finance (No. 2) Act 2015 apply.

 



 
 

Notices of Amendments: 12 January 2018                  

12

 

Finance (No. 2) Bill, continued

 
 

Kirsty Blackman

 

Alison Thewliss

 

NC3

 

To move the following Clause—

 

         

“Review of the effects of changes to the transferable tax allowance for married

 

couples and civil partners

 

(1)    

Within six months of this Act receiving Royal Assent, the Commissioners for Her

 

Majesty’s Revenue and Customs shall complete a review of the effects and cost

 

of changes made by section 6 of this Act to Chapter 3A of Part 3 of ITA 2001

 

(transferable tax allowance).

 

(2)    

The Chancellor of the Exchequer shall lay the report of this review before the

 

House of Commons.”

 

Member’s explanatory statement

 

This new clause would require HMRC to carry out a review of the effects of changes to the

 

transferable tax allowance for married couples and civil partners arising from changes to Chapter

 

3A of Part 3 of ITA 2007 made by Clause 6 of the Bill.

 


 

Kirsty Blackman

 

Alison Thewliss

 

NC4

 

To move the following Clause—

 

         

“Review of the impact of increasing Research and Development Expenditure

 

Credit

 

(1)    

Within one month of Royal Assent to this Act, the Chancellor of the Exchequer

 

shall commission a review of the impact of increasing the Research and

 

Development Expenditure Credit from 11% to 12%.

 

(2)    

The review shall consider—

 

(a)    

the effect of the 1% increase on companies’ research and development

 

spending in the UK, and

 

(b)    

what effect the increase in Research and Development Expenditure

 

Credit will have on changes to companies’ research and development

 

spending in the UK as a result of leaving the EU.

 

(3)    

The Chancellor of the Exchequer shall lay the report of this review before the

 

House of Commons within six months of this Act receiving Royal Assent.”

 

Member’s explanatory statement

 

This new clause would require the Chancellor of the Exchequer to commission a review of the

 

effect of the increase in Research and Development Expenditure Credit from 11% to 12% on

 

companies’ research and development spending and what effect the increase will have on any

 

changes to companies’ R&D spending as a result of the UK leaving the EU.

 



 
 

Notices of Amendments: 12 January 2018                  

13

 

Finance (No. 2) Bill, continued

 
 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

NC5

 

To move the following Clause—

 

         

“Impact of benefit in kind tax supplement on the use of diesel cars

 

(1)    

Chapter 6 of Part 3 of ITEPA 2003 is amended as follows.

 

(2)    

After section 141, insert—

 

“141A

  Impact of benefit in kind tax supplement on the use of diesel cars

 

(1)    

Within six months of the passing of the Finance Act 2018, the Chancellor

 

of the Exchequer must review the effects of the changes to this Chapter

 

made by section 9 of that Act.

 

(2)    

The review under this section must consider the effects of those changes

 

on—

 

(a)    

the use of diesel cars, and

 

(b)    

the Government’s emission reduction targets.

 

(3)    

The Chancellor of the Exchequer must lay before the House of Commons

 

the report of the review under this section as soon as practicable after its

 

completion.””

 

Member’s explanatory statement

 

This new clause requires the Treasury to carry out a review of the effect of the provisions of Clause

 

9 on the use of diesel cars and on emission reduction targets.

 


 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

NC6

 

To move the following Clause—

 

         

“Review of risk to capital changes

 

(1)    

Within fifteen months after the first exercise of the power to make regulations

 

under section 14(4), the Chancellor of the Exchequer must review the effects of

 

the changes made by section 14.

 

(2)    

The review under this section must consider—

 

(a)    

the revenue effects of the changes, and

 

(b)    

the effects on the long-term growth and development of companies.

 

(3)    

The Chancellor of the Exchequer must lay before the House of Commons the

 

report of the review under this section as soon as practicable after its completion.”

 

Member’s explanatory statement

 

This new clause provides for a post-implementation review of the changes in Clause 14.

 



 
 

Notices of Amendments: 12 January 2018                  

14

 

Finance (No. 2) Bill, continued

 
 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

NC7

 

To move the following Clause—

 

         

“Review of changes to EIS and VCT reliefs for knowledge-intensive

 

companies

 

(1)    

Within fifteen months after the first exercise of the power to make regulations

 

under paragraph 10 of Schedule 4, the Chancellor of the Exchequer must review

 

the effects of the changes made by that Schedule.

 

(2)    

The review under this section must consider—

 

(a)    

the revenue effects of the changes, and

 

(b)    

the effects on the policy objective to facilitate and encourage additional

 

investment in innovative companies developing and exploiting new

 

technologies.

 

(3)    

The Chancellor of the Exchequer must lay before the House of Commons the

 

report of the review under this section as soon as practicable after its completion.”

 

Member’s explanatory statement

 

This new clause provides for a post-implementation review of the changes in Schedule 4.

 


 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

NC8

 

To move the following Clause—

 

         

“EIS, SEIS, SI and VCT reliefs: review of operation

 

(1)    

Within twelve months after the passing of this Act, the Chancellor of the

 

Exchequer must review the operation of the reliefs established under Parts 5, 5A,

 

5B and 6 of ITA 2007.

 

(2)    

The review under this section must consider—

 

(a)    

the revenue effects of the reliefs and changes made to those reliefs since

 

the passing of the Finance Act 2012,

 

(b)    

the employment effects of the reliefs and those changes,

 

(c)    

other economic effects of the reliefs and those changes, and

 

(d)    

the extent to which trusts or other entities have been created to secure

 

benefits from the reliefs and those changes without providing wider

 

employment or economic benefits.

 

(3)    

The Chancellor of the Exchequer must lay before the House of Commons the

 

report of the review under this section as soon as practicable after its completion.”

 

Member’s explanatory statement

 

This new clause provides for a review of the operation of the enterprise investment scheme, the

 

seed enterprise investment scheme, income tax relief for social investments and venture capital

 

trusts income tax relief.

 



 
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Revised 12 January 2018