Session 2017-19
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Other Bills before Parliament


 
 

1

 

House of Commons

 
 

Notices of Amendments

 

given up to and including

 

Wednesday 20 December 2017

 

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: 1 to 32

 

Public Bill Committee


 

Finance (No. 2) Bill


 

(Except Clause 8; Clause 33 and Schedule 9; Clauses 40 and 41 and Schedule 11; New Clauses


 

or new Schedules relating to the income tax treatment of armed forces’ accommodation al­


 

lowances, the bank levy, stamp duty land tax, the effect of the Bill on equality, or the effect of


 

the Bill on tax avoidance or evasion)


 

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withdrawn amendments at the end.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 Resolution of the Programming Sub-Committee.

 

 


 

Resolution of the Programming Sub-Committee

 

The Programming Sub-Committee appointed by the Speaker in respect of the Bill

 

agreed the following Resolution at its meeting on Wednesday 20 December (Standing

 

Order 83C):

 

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; 

 

(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;


 
 

Notices of Amendments: 20 December 2017                  

2

 

Finance (No. 2) Bill, continued

 
 

(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

 

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

 

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

 

conclusion at 5.00 pm on Thursday 18 January.

 

Mel Stride has given notice of his intention to move a motion in the terms of the

 

Resolution of the Programming Sub-Committee [Standing Order No. 83C].

 


 

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.

 


 

Mel Stride

 

1

 

Parliamentary Star    

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

 

(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


 
 

Notices of Amendments: 20 December 2017                  

3

 

Finance (No. 2) Bill, continued

 
 

(b)    

the total return on the loan does not exceed—
equation: cross[cross[char[N],char[A]],times[num[10.0000000000000000,"10"],string["%"]]]

 

    

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).””

 


 

Mel Stride

 

2

 

Parliamentary Star    

Schedule  10,  page  146,  line  7,  after “is” insert “—

 

(a)    

where the individual is UK resident for the year,”

 

Mel Stride

 

3

 

Parliamentary Star    

Schedule  10,  page  146,  line  9,  at end insert “, and

 

(b)    

where the individual is non-UK resident for the year, treated for the

 

purposes of subsection (2) (but no other purpose) as income of the

 

individual for the year, subject to subsection (5).”

 

Mel Stride

 

4

 

Parliamentary Star    

Schedule  10,  page  146,  line  33,  leave out from “purposes” to second “for” in line

 

34 and insert “as income of the settlor for the year and, in a case within paragraph (a), not

 

as income of the individual”


 
 

Notices of Amendments: 20 December 2017                  

4

 

Finance (No. 2) Bill, continued

 
 

Mel Stride

 

5

 

Parliamentary Star    

Schedule  10,  page  147,  line  4,  at end insert—

 

“(7)    

If—

 

(a)    

an enactment other than this section contains a reference (however

 

expressed) to—

 

(i)    

income treated as arising by this section, or

 

(ii)    

an amount treated as income by this section, and

 

(b)    

the reference mentions this section without mentioning any particular

 

provision of this section,

 

    

the reference is (in accordance with subsection (1)(b)) to be read as not including

 

amounts treated as income by subsection (1)(b) except so far as they are treated

 

as income of the settlor of a settlement by subsection (3) or (4).”

 

Mel Stride

 

6

 

Parliamentary Star    

Schedule  10,  page  148,  line  4,  at end insert—

 

“(4)    

In this section and sections 643C to 643M, a reference to a benefit provided by

 

trustees of a settlement is to—

 

(a)    

a benefit treated by subsection (6) as provided by the trustees, or

 

(b)    

any other benefit if it is provided by the trustees directly, or indirectly,

 

out of—

 

(i)    

property comprised in the settlement, or

 

(ii)    

income arising under the settlement.

 

(5)    

In this section and sections 643C to 643M, a reference to a benefit provided by

 

trustees of a settlement to an individual is to—

 

(a)    

a benefit treated by subsection (6) as provided by the trustees to the

 

individual, or

 

(b)    

any other benefit if it is provided by the trustees to the individual directly,

 

or indirectly, out of—

 

(i)    

property comprised in the settlement, or

 

(ii)    

income arising under the settlement.

 

(6)    

Where—

 

(a)    

income arises under a settlement, and

 

(b)    

the income, before being distributed, is the income of a person other than

 

the trustees,

 

    

a benefit is for the purposes of subsection (4)(a) treated as provided by the trustees

 

and is for the purposes of subsection (5)(a) treated as provided by the trustees to

 

the person.

 

(7)    

A benefit treated as provided by subsection (6) is treated—

 

(a)    

as consisting of the income mentioned in that subsection, but after any

 

reduction in accordance with Chapter 8 of Part 9 of ITA 2007 for

 

trustees’ expenses, and

 

(b)    

as provided at the time that income arises.”


 
 

Notices of Amendments: 20 December 2017                  

5

 

Finance (No. 2) Bill, continued

 
 

Mel Stride

 

7

 

Parliamentary Star    

Schedule  10,  page  148,  leave out lines 14 to 18 and insert—

 

“PFSI is the total of—

 

(a)    

any protected foreign-source income—

 

(i)    

arising under the settlement in the year or in any earlier

 

tax year,

 

(ii)    

that would be treated under section 624 as income of the

 

settlor but for section 628A,

 

(iii)    

that can be used directly or indirectly to provide benefits

 

for the individual, and

 

(iv)    

on which the individual is not liable to income tax

 

(ignoring for this purpose any liability under section

 

643A), and

 

(b)    

any protected foreign-source income—

 

(i)    

arising under the settlement in the year or in any earlier

 

tax year,

 

(ii)    

that would be treated under section 629 as income of the

 

settlor but for section 630A, and

 

(iii)    

on which the relevant child concerned (see section 629)

 

is not liable to income tax (ignoring for this purpose any

 

liability under section 643A),”

 

Mel Stride

 

8

 

Parliamentary Star    

Schedule  10,  page  148,  line  25,  leave out “all amounts which” and insert “so much

 

of PFSI as is”

 

Mel Stride

 

9

 

Parliamentary Star    

Schedule  10,  page  148,  line  26,  leave out “are”

 

Mel Stride

 

10

 

Parliamentary Star    

Schedule  10,  page  148,  line  29,  leave out “all amounts which” and insert “so much

 

of PFSI as is”

 

Mel Stride

 

11

 

Parliamentary Star    

Schedule  10,  page  148,  line  30,  leave out “are”

 

Mel Stride

 

12

 

Parliamentary Star    

Schedule  10,  page  149,  line  33,  leave out “available”

 

Mel Stride

 

13

 

Parliamentary Star    

Schedule  10,  page  149,  leave out lines 37 to 40


 
 

Notices of Amendments: 20 December 2017                  

6

 

Finance (No. 2) Bill, continued

 
 

Mel Stride

 

14

 

Parliamentary Star    

Schedule  10,  page  149,  line  41,  at end insert—

 

“(6)    

In this section and section 643G—

 

“protected income” means the income that forms PFSI in the calculation of

 

the settlement’s available protected income in the case of the relevant

 

individual for the year, and

 

“the relevant individual”—

 

(a)    

where the deemed income is treated as income of an individual

 

by section 643A(1)(a) both before and after the application of

 

section 643A(3) and (4), means that individual, and

 

(b)    

where the deemed income is treated as income of the settlor by

 

section 643A(3) or (4) after having been treated as income of

 

another individual by section 643A(1), means that other

 

individual.”

 

Mel Stride

 

15

 

Parliamentary Star    

Schedule  10,  page  149,  line  43,  leave out “subsection (2)” and insert “this section”

 

Mel Stride

 

16

 

Parliamentary Star    

Schedule  10,  page  150,  line  2,  leave out from “settlement,” to end of line 7 and

 

insert “the year and the relevant individual,

 

(b)    

“protected income” and “the relevant individual” have the meaning given

 

by section 643F(6), and

 

(c)    

“the settlement” and “the year” mean, respectively, the settlement and tax

 

year mentioned in section 643F.”

 

Mel Stride

 

17

 

Parliamentary Star    

Schedule  10,  page  150,  line  10,  after first “the” insert “relevant”

 

Mel Stride

 

18

 

Parliamentary Star    

Schedule  10,  page  150,  line  16,  leave out “available”

 

Mel Stride

 

19

 

Parliamentary Star    

Schedule  10,  page  150,  line  17,  at end insert—

 

“(ca)    

where the whole or part of an item of the protected income is, in respect

 

of benefits provided by the trustees in the year or in any earlier tax year,

 

taken into account in charging income tax under Chapter 2 of Part 13 of

 

ITA 2007 (transfer of assets abroad) for the year or any earlier tax year,

 

reduce the item by so much of itself as is so taken into account,

 

(cb)    

where the whole or part of an item of the protected income is, by

 

reference to benefits provided by the trustees to individuals other than the

 

relevant individual, treated by section 643A or 643J or 643L as income

 

for the year or any earlier tax year, reduce the item by so much of itself

 

as is so treated,”


 
 

Notices of Amendments: 20 December 2017                  

7

 

Finance (No. 2) Bill, continued

 
 

Mel Stride

 

20

 

Parliamentary Star    

Schedule  10,  page  150,  line  18,  leave out “643A as arising to the” and insert

 

“643A(1) (before the application of section 643A(3) and (4)) as arising to the relevant”

 

Mel Stride

 

21

 

Parliamentary Star    

Schedule  10,  page  150,  line  19,  after “benefits” insert “referred to in paragraph (a)”

 

Mel Stride

 

22

 

Parliamentary Star    

Schedule  10,  page  150,  line  23,  after “benefits” insert “referred to in paragraph (a)”

 

Mel Stride

 

23

 

Parliamentary Star    

Schedule  10,  page  150,  line  24,  leave out “available”

 

Mel Stride

 

24

 

Parliamentary Star    

Schedule  10,  page  150,  line  25,  leave out second “the” and insert “those”

 

Mel Stride

 

25

 

Parliamentary Star    

Schedule  10,  page  150,  line  26,  leave out “available”

 

Mel Stride

 

26

 

Parliamentary Star    

Schedule  10,  page  150,  line  27,  at end insert—

 

“(3)    

For the purposes of subsection (2)(ca), the whole or part of an item of the

 

protected income is to be treated as taken into account in respect of a benefit so

 

far as the item or part—

 

(a)    

is matched under section 735A of ITA 2007 with notional income with

 

which the benefit is matched under that section, or

 

(b)    

would be matched under that section (if it applied also for this purpose)

 

with notional income with which the benefit would be matched under that

 

section (if it applied also for this purpose),

 

    

and here “notional income” means income which is treated as arising under

 

section 732 of ITA 2007.”

 

Mel Stride

 

27

 

Parliamentary Star    

Schedule  10,  page  150,  line  47,  leave out “643A(1),” and insert “643A(1)(a),”

 

Mel Stride

 

28

 

Parliamentary Star    

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


 
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Revised 21 December 2017