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1

 

House of Commons

 
 

Thursday 11 January 2018

 

Public Bill Committee Proceedings

 

Finance (No. 2) Bill


 

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Withdrawn after debate: moved and debated but then withdrawn, so not put to a decision.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

 

 


 

First and Second Sittings

 

Mel Stride

 

Agreed to

 

That—

 

(1)  

the Committee shall (in addition to its first meeting at 9.25 am on Tuesday 9

 

January) meet—

 

(a)  

at 2.00 pm on Tuesday 9 January; 

5

(b)  

at 11.30 am and 2.00 pm on Thursday 11 January;

 

(c)  

at 9.25 am and 2.00 pm on Tuesday 16 January;

 

(d)  

at 11.30 am and 2.00 pm on Thursday 18 January;

 

(2)  

the proceedings shall be taken in the following order: Clauses 1 to 7; Clauses

 

9 to 11; Schedule 1; Clause 12; Schedule 2; Clause 13; Schedule 3; Clauses

10

14 to 16; Schedule 4; Clause 17; Schedule 5; Clause 18; Schedule 6; Clauses


 
 

Public Bill Committee Proceedings: 11 January 2018        

2

 

Finance (No. 2) Bill, continued

 
 

19 to 23; Schedule 7; Clause 24; Schedule 8; Clauses 25 to 32; Clauses 34

 

and 35; Schedule 10; Clauses 36 to 39; Clause 42; Schedule 12; Clauses 43

 

to 50; new Clauses; new Schedules; remaining proceedings on the Bill;

 

(3)  

the proceedings shall (so far as not previously concluded) be brought to a

15

conclusion at 5.00 pm on Thursday 18 January.

 

As Amendments to Mel Stride’s proposed Motion—

 

Kirsty Blackman

 

Alison Thewliss

 

Negatived on division  (a)

 

Leave out line 4

 

Kirsty Blackman

 

Alison Thewliss

 

Not called  (b)

 

Line  7,  at end insert—

 

“(1A)    

The Committee shall hear oral evidence in accordance with the following

 

Table—

 

TABLE

 

Date

Time

Witnesses

 
 

Thursday 11 January

Until no later than 12.15 pm

HM Treasury; HM

 
   

Revenue and Customs

 
 

Thursday 11 January

Until no later than 1.00 pm

The Office for Budget

 
   

Responsibility

 
 

Thursday 11 January

Until no later than 3.30 pm

The Institute for Fiscal

 
   

Studies

 
 

Thursday 11 January

Until no later than 5.00 pm

The Chartered Institute

 
   

of Taxation”

 
 

Kirsty Blackman

 

Alison Thewliss

 

Not called  (c)

 

Line  15,  at end insert—

 

“(4)    

The Committee recommends that the programme order of the House [11

 

December 2017] should be amended in paragraph 7 by substituting “25 January”

 

for “18 January”.”

 


 

Mel Stride

 

That, subject to the discretion of the Chair, any written evidence received by the

 

Committee shall be reported to the House for publication.

 

Agreed to

 



 
 

Public Bill Committee Proceedings: 11 January 2018        

3

 

Finance (No. 2) Bill, continued

 
 

Clauses 1 to 7 Agreed to.

 

Clauses 9 to 11 Agreed to.

 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

Negatived on division  34

 

Schedule  1,  page  57,  line  33,  at end insert “or such higher amount as may be

 

determined in accordance with sub-paragraphs (1A) to (1D).

 

(1A)    

This sub-paragraph applies where the loan is between £100,000 and £199,999.

 

(1B)    

This sub-paragraph applies where the loan is a multiple of £100,000.

 

(1C)    

Where sub-paragraph (1A) applies, the penalty is £600.

 

(1D)    

Where sub-paragraph (1B) applies, the penalty is the equivalent multiple of

 

£300.”

 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

Not called  35

 

Schedule  1,  page  57,  line  38,  after “£60”, insert “or such higher amount as may be

 

determined in accordance with sub-paragraphs (4) to (7)”.

 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

Not called  36

 

Schedule  1,  page  57,  line  39,  at end insert—

 

“(4)    

This sub-paragraph applies where the loan is between £100,000 and £199,999.

 

(5)    

This sub-paragraph applies where the loan is a multiple of £100,000.

 

(6)    

Where sub-paragraph (4) applies, the penalty is £120.

 

(7)    

Where sub-paragraph (5) applies, the penalty is the equivalent multiple of £60.”

 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

Not called  37

 

Schedule  1,  page  58,  line  10,  at end insert “or such higher amount as may be

 

determined in accordance with sub-paragraphs (6A) to (6D).

 

(6A)    

This sub-paragraph applies where the loan is between £100,000 and £199,999.

 

(6B)    

This sub-paragraph applies where the loan is a multiple of £100,000.

 

(6C)    

Where sub-paragraph (6A) applies, the penalty is £6,000.

 

(6D)    

Where sub-paragraph (6B) applies, the penalty is the equivalent multiple of

 

£3,000.”

 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

Negatived on division  38

 

Schedule  1,  page  60,  line  20,  at end insert—

 

“17(1)  

The amendments made by paragraphs 9 to 12 have effect in accordance

 

with the provisions of this paragraph.


 
 

Public Bill Committee Proceedings: 11 January 2018        

4

 

Finance (No. 2) Bill, continued

 
 

      (2)  

No later than two months after the passing of this Act, the Chancellor of the

 

Exchequer and the Commissioners shall undertake an assessment of the profile

 

of those holding loans to which the amendments made by those paragraphs

 

apply.

 

      (3)  

A review under this paragraph shall consider what discretionary arrangements

 

it is appropriate for the Commissioners to take in relation those holding such

 

loans who are not higher rate taxpayers.

 

      (4)  

The amendments made by paragraphs 9 to 12 shall have effect when the

 

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

 

of the review under this paragraph.”

 


 

Schedule Agreed to.

 

Clause 12 Agreed to.

 

Schedule 2 Agreed to.

 

Clause 13 Agreed to.

 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

Negatived on division  39

 

Schedule  3,  page  65,  line  28,  at end insert “or

 

(j)    

the pension scheme is a Master Trust scheme which has not complied

 

with the relevant requirements of section 159E(2).”

 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

Not called  40

 

Schedule  3,  page  65,  line  37,  at end insert “or

 

(i)    

the pension scheme is a Master Trust scheme which has not complied

 

with the relevant requirements of section 159E(3).”

 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

Not called  41

 

Schedule  3,  page  65,  line  37,  at end insert—

 

  “(4A)  

After section 159D, insert—

 

Additional registration requirements for Master Trust schemes

 

159E  

Additional registration requirements for Master Trust schemes

 

(1)    

This section establishes additional registration requirements for

 

Master Trust schemes.

 

(2)    

In respect of any such scheme, an investment strategy must be

 

presented to the Commissioners prior to registration.


 
 

Public Bill Committee Proceedings: 11 January 2018        

5

 

Finance (No. 2) Bill, continued

 
 

(3)    

In respect of any such scheme, and in respect of each year of

 

registration, an annual report must be published on administration,

 

fund management costs and transaction costs for each asset class and

 

for active and passive asset management strategies.”

 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

Not called  42

 

Schedule  3,  page  67,  line  14,  after “153(5)(i)”, insert “and (j)”

 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

Not called  43

 

Schedule  3,  page  67,  line  16,  after “158(1)(h)”, insert “and (i)”

 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

Not called  44

 

Schedule  3,  page  67,  line  17,  at end insert—

 

“(ba)    

sub-paragraph (4A);”

 

Schedule Agreed to.

 

Clauses 14 to 16 Agreed to.

 

Schedule 4 Agreed to.

 

Clause 17 Agreed to.

 


 

Mel Stride

 

Agreed to  1

 

Schedule  5,  page  75,  line  36,  at end insert—

 

“Non-qualifying loans

 

6A  (1)  

Section 285 of ITA 2007 (interpretation of Chapter 3 etc of Part 6) is amended

 

as follows.

 

      (2)  

In subsection (2)—

 

(a)    

omit “(whether secured or not)”;

 

(b)    

at the end of paragraph (b) insert “, or

 

(c)    

any liability of the company in respect of a loan to

 

which subsection (2A) applies that has been made to

 

the company.”

 

      (3)  

After that subsection insert—

 

“(2A)    

This subsection applies to a loan if—

 

(a)    

the return on the loan represents more than a commercial rate

 

of return, or


 
 

Public Bill Committee Proceedings: 11 January 2018        

6

 

Finance (No. 2) Bill, continued

 
 

(b)    

the loan is made on terms which grant to a person or allow a

 

person to acquire—

 

(i)    

any security or preferential rights in relation to assets

 

of the company, or

 

(ii)    

the ability to control the company.

 

    

In sub-paragraph (ii) “control” has the meaning given by

 

sections 450 and 451 of CTA 2010.

 

(2B)    

The return on a loan is not to be treated as representing more than a

 

commercial rate for the purposes of subsection (2A)(a) if—

 

(a)    

the return on the loan during the period of 5 years from the

 

making of the loan does not exceed 50% of the amount lent,

 

and

 

(b)    

the total return on the loan does not exceed—
equation: N times A times 10 per cent

 

    

where—

 

N is the number of years (including any fraction) in the

 

term of the loan;

 

A is the amount lent or, in a case where some of the loan

 

is repaid during the term of the loan, the average

 

amount outstanding during that term.

 

(2C)    

The Treasury may by regulations substitute a different figure for a

 

figure that is at any time specified in subsection (2B)(a) or (b).

 

(2D)    

In subsections (2A)(a) and (2B) “return” means interest, fees, charges

 

and other amounts payable in respect of the loan.

 

(2E)    

Where it is to any extent not known, before the end of the term of a

 

loan, what amounts will be payable in respect of the loan—

 

(a)    

subsections (2A)(a) and (2B) apply, until the relevant matters

 

are ascertained, on the basis of what amounts can reasonably

 

be expected to be payable;

 

(b)    

when those matters are ascertained, any necessary

 

adjustments must be made by making or amending

 

assessments or by repayment or discharge of tax (regardless of

 

any limitation on the time within which assessments or

 

amendments may be made).””

 

Schedule, as amended, Agreed to.

 


 

Third and Fourth Sittings

 

Clause 18 Agreed to.

 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

Not selected  45

 

Schedule  6,  page  88,  line  32,  at end insert—


 
 

Public Bill Committee Proceedings: 11 January 2018        

7

 

Finance (No. 2) Bill, continued

 
 

“Part 6

 

Returns: payment on account

 

16  (1)  

TMA 1970 is amended as follows.

 

      (2)  

After section 12AC (notice of enquiry), insert—

 

“12ACA 

  Requirement for payment on account

 

(1)    

In any case where notice of an enquiry has been given under section

 

12AC(1) in respect of a return, an officer of the Board may require a

 

payment on account from a partner in respect of that partner and other

 

partners (whether in respect of that return or a return for a subsequent

 

tax year).

 

(2)    

Sections 59A and 59AB apply to payments made under this section as

 

they apply to payments made under section 59A.”

 

Peter Dowd

 

Anneliese Dodds

 

Jeff Smith

 

Not called  50

 

Schedule  6,  page  88,  line  32,  at end insert—

 

“Part 6

 

Returns: payment on account

 

16  (1)  

TMA 1970 is amended as follows.

 

      (2)  

After section 12AC (notice of enquiry), insert—

 

“12AD

  Review of proposal for power to require payment on account

 

(1)    

Within one month of the passing of the Finance Act 2018 the

 

Chancellor of the Exchequer must commission a review into the

 

effects of introducing a power to allow HMRC to require payment on

 

account for returns where an enquiry has been given under section

 

12AC(1) in respect of a return.

 

(2)    

The review under this section must consider—

 

(a)    

the administrative implications for HMRC,

 

(b)    

the impact on the taxation regime for partnerships, and

 

(c)    

the potential revenue effects of the change.

 

(3)    

The Chancellor of the Exchequer must lay the report of this review

 

before the House of Commons within six months of the passing of the

 

Finance Act 2018.””

 

Schedule Agreed to.

 

Clauses 19 to 23 Agreed to.

 



 
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Revised 11 January 2018