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1

 

House of Commons

 
 

Wednesday 21 February 2018

 

Consideration of Bill (Report Stage)

 

New Amendments handed in are marked thus Parliamentary Star

 

Parliamentary Star - whiteAmendments which will comply with the required notice period at their next appearance

 

Finance (No. 2) 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withdrawn amendments at the end.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 (No. 2) Bill (Programme (No. 2)) Motion to be proposed

 

by Mr Chancellor of the Exchequer.

 

 


 

New Clauses, new Schedules and amendments relating to the effect of

 

the Bill on equality

 

Jeremy Corbyn

 

John McDonnell

 

Mr Nicholas Brown

 

Peter Dowd

 

Jonathan Reynolds

 

Anneliese Dodds

 

NC9

 

To move the following Clause—

 

         

“Equality impact analyses of certain provisions of this Act

 

(1)    

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

 

provisions of this Act specified in subsection (3) in accordance with this section

 

and lay a report of that review before the House of Commons within six months

 

of the passing of this Act.

 

(2)    

A review under this section must consider—

 

(a)    

the impact of those provisions on households at different levels of

 

income,

 

(b)    

the impact of those provisions on people with protected characteristics

 

(within the meaning of the Equality Act 2010),


 
 

Consideration of Bill (Report Stage): 21 February 2018      

2

 

Finance (No. 2) Bill, continued

 
 

(c)    

the impact of those provisions on the Treasury’s compliance with the

 

public sector equality duty under section 149 of the Equality Act 2010,

 

and

 

(d)    

the impact of those provisions on equality in different parts of the United

 

Kingdom and different regions of England.

 

(3)    

The provisions specified in this subsection are—

 

(a)    

income tax (in sections 1 and 3 to 6),

 

(b)    

employment (in sections 7 to 10),

 

(c)    

disguised remuneration (in sections 11 and 12 and Schedules 1 and 2),

 

(d)    

pension schemes (in section 13 and Schedule 3),

 

(e)    

settlements (in section 35 and Schedule 11),

 

(f)    

air passenger duty (in section 43),

 

(g)    

vehicle excise duty (in section 44), and

 

(h)    

tobacco products duty (in section 45).

 

(4)    

In this section—

 

“parts of the United Kingdom” means—

 

(a)    

England,

 

(b)    

Scotland,

 

(c)    

Wales, and

 

(d)    

Northern Ireland;

 

“regions of England” has the same meaning as that used by the Office for

 

National Statistics.”

 

Member’s explanatory statement

 

This new clause requires the Chancellor of the Exchequer to carry out and publish a review of the

 

effects of certain provisions of the Bill on equality in relation to households with different levels of

 

income, people with protected characteristics, the Treasury’s public sector equality duty and on a

 

regional basis.

 

 


 

New Clauses, new Schedules and amendments relating to the bank levy;

 

new Clauses, new Schedules and amendments relating to the effect of

 

the Bill on tax avoidance or evasion

 

New Clauses, new Schedules and amendments relating to the bank levy

 

Jeremy Corbyn

 

John McDonnell

 

Mr Nicholas Brown

 

Peter Dowd

 

Jonathan Reynolds

 

Anneliese Dodds

 

NC3

 

To move the following Clause—

 

         

“Review of operation and effectiveness of bank levy

 

(1)    

Schedule 19 to FA 2011 (bank levy) is amended as follows.


 
 

Consideration of Bill (Report Stage): 21 February 2018      

3

 

Finance (No. 2) Bill, continued

 
 

(2)    

After paragraph 81, insert—

 

    

 

“Part 10

 

Review

 

82  (1)  

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

 

Chancellor of the Exchequer shall undertake a review of the operation

 

and effectiveness of the bank levy.

 

      (2)  

The review shall consider in particular—

 

(a)    

the effectiveness of the levy in reflecting risks to the financial

 

system and the wider UK economy arising from the banking

 

sector,

 

(b)    

the effectiveness of the levy in encouraging banks to move

 

away from riskier funding models,

 

(c)    

the revenue effects of the changes to the levy made in

 

Schedule 2 to the Finance (No. 2) Act 2015,

 

(d)    

the effectiveness of the anti-avoidance provisions in

 

paragraphs 47 and 48 of this Schedule.

 

      (3)  

A review shall also compare the effects of the bank levy with those of

 

the bank payroll tax (within the meaning given by Schedule 2 to the

 

Finance Act 2010) in relation to—

 

(a)    

revenue, and

 

(b)    

the matters specified in sub-paragraph (2)(a) and (b).

 

      (4)  

A report of the review under this paragraph shall be laid before the

 

House of Commons within one calendar month of its completion.””

 

Member’s explanatory statement

 

This new clause requires the Government to carry out a review of the bank levy, including its

 

effectiveness in relation to its stated aims, the revenue effects of the changes made in 2015 and the

 

comparable effectiveness of the bank payroll tax.

 


 

Jeremy Corbyn

 

John McDonnell

 

Mr Nicholas Brown

 

Peter Dowd

 

Jonathan Reynolds

 

Anneliese Dodds

 

NC4

 

To move the following Clause—

 

         

“Public register of entities paying the bank levy and payments made

 

(1)    

Schedule 19 to FA 2011 (bank levy) is amended as follows.


 
 

Consideration of Bill (Report Stage): 21 February 2018      

4

 

Finance (No. 2) Bill, continued

 
 

(2)    

After paragraph 81, insert—

 

“Part 11

 

Public register of payments

 

83  (1)  

It shall be the duty of the Commissioners for Her Majesty’s Revenue

 

and Customs to maintain a public register of groups paying the bank

 

levy and the amounts paid.

 

      (2)  

In relation to each group, the register shall state whether it is—

 

(a)    

a UK banking group,

 

(b)    

a building society group,

 

(c)    

a foreign banking group, or

 

(d)    

a relevant non-banking group.

 

      (3)  

In relation to each group, the register shall state the amount paid in

 

respect of each chargeable period.

 

      (4)  

In relation to chargeable periods ending between 28 February 2011

 

and 31 December 2017, the Commissioners must make public the

 

register no later than 31 October 2018.

 

      (5)  

In respect of subsequent chargeable periods, the Commissioners must

 

make public the updated register no later than ten months after the end

 

of the chargeable period.””

 

Member’s explanatory statement

 

This new clause requires HMRC to prepare a public register of banks paying the bank levy and the

 

amount they have paid.

 


 

Jeremy Corbyn

 

John McDonnell

 

Mr Nicholas Brown

 

Peter Dowd

 

Jonathan Reynolds

 

Anneliese Dodds

 

NC5

 

To move the following Clause—

 

         

“Bank levy: Part 1 of Schedule 9: pre-commencement requirements

 

(1)    

Part 1 of Schedule 9 shall come into force in accordance with the provisions of

 

this section.

 

(2)    

No later than 31 October 2020, the Chancellor of the Exchequer shall lay before

 

the House of Commons an account of the effects of the proposed changes in Part

 

1 of Schedule 9—

 

(a)    

on the public revenue,

 

(b)    

in reflecting risks to the financial system and the wider UK economy

 

arising from the banking sector, and

 

(c)    

in encouraging banks to move away from riskier funding models.


 
 

Consideration of Bill (Report Stage): 21 February 2018      

5

 

Finance (No. 2) Bill, continued

 
 

(3)    

Part 1 of Schedule 9 shall have effect in relation to chargeable periods ending on

 

or after 1 January 2021 if, no earlier than 30 November 2020, the House of

 

Commons comes to a resolution to that effect.”

 

Member’s explanatory statement

 

This new clause requires the Government to provide a separate analysis of the impact of Part 1 of

 

Schedule 9 nearer to the time of proposed implementation in 2021 and to seek the separate

 

agreement of the House of Commons to commencement in the light of that review.

 

 


 

Stella Creasy

 

Wes Streeting

 

Norman Lamb

 

Mike Gapes

 

Lucy Powell

 

Gareth Snell

Jess Phillips

Liz Saville Roberts

Martin Whitfield

Ms Angela Eagle

Dan Jarvis

Darren Jones

Stephen Kinnock

Lillian Greenwood

Catherine West

Chris Bryant

Mrs Madeleine Moon

Ruth George

Alison McGovern

Kate Green

Gareth Thomas

Diana Johnson

Christine Jardine

Chris Stephens

Ruth Cadbury

Clive Efford

Stephen Doughty

 

1

 

Schedule  9,  page  134,  line  2,  at end insert—

 

“34A      

After paragraph 81 insert—

 

“Part 10

 

Review of entities on which the bank levy is charged

 

82  (1)  

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

 

the Exchequer shall undertake a review of the provisions in this Schedule

 

defining which groups are covered by the bank levy.

 

      (2)  

The review shall consider in particular—

 

(i)    

the adequacy of those provisions in applying the bank levy to

 

groups that are—

 

(a)    

not a group in paragraph 4(2) and

 

(b)    

derive their income from investments in the manner

 

of a group in paragraph 4(2),

 

(ii)    

the adequacy of the groups in paragraph 4(2) in charging the

 

bank levy to lending and investment entities,

 

(iii)    

the degree to which the groups in paragraph 4(2) reflect

 

lending and investment entities that have entered into

 

contracts with public sector bodies,

 

(iv)    

the adequacy of the definition of “investment group” in

 

paragraph 12(9) in reflecting lending and investment entities

 

that have entered into contracts with public sector bodies, and

 

(v)    

the revenue effects of changes to include lending and

 

investment entities that have entered into contracts with

 

public sector bodies within groups covered by the levy.


 
 

Consideration of Bill (Report Stage): 21 February 2018      

6

 

Finance (No. 2) Bill, continued

 
 

      (3)  

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

 

paragraph before the House of Commons as soon as practicable after its

 

completion.”

 

Member’s explanatory statement

 

This amendment requires a review about the appropriate extent of the bank levy in terms of the

 

lending and investment entities which it covers, considering the extent to which it covers PFI

 

finance groups and assessing the revenue effects of such an extension.

 

Jeremy Corbyn

 

John McDonnell

 

Mr Nicholas Brown

 

Peter Dowd

 

Jonathan Reynolds

 

Anneliese Dodds

 

5

 

Schedule  9,  page  134,  line  6,  leave out from “in” to end of line 7 and insert

 

“accordance with the provisions of section (bank levy: Part 1 of Schedule 9: pre-

 

commencement requirements)”.

 

Member’s explanatory statement

 

This amendment is consequential on NC5.

 

Stella Creasy

 

2

 

Schedule  9,  page  134,  line  10,  at end insert—

 

“37      

The amendments made by paragraph 34A have effect from the day on this Act

 

is passed.”

 

Member’s explanatory statement

 

This amendment is consequential on Amendment 1.

 


 

New Clauses, new Schedules and amendments relating to the effect of

 

the Bill on tax avoidance or evasion

 

Jeremy Corbyn

 

John McDonnell

 

Mr Nicholas Brown

 

Peter Dowd

 

Jonathan Reynolds

 

Anneliese Dodds

 

NC6

 

To move the following Clause—

 

         

“Analysis of effectiveness of provisions of this Act on tax avoidance and

 

evasion

 

(1)    

The Chancellor of the Exchequer must review the effectiveness of the provisions

 

of this Act in accordance with this section and lay a report of that review before

 

the House of Commons within six months of the passing of this Act.

 

(2)    

A review under this section must consider—

 

(a)    

the effects of the provisions in reducing levels of artificial tax avoidance,

 

(b)    

the effects of the provisions in combating tax evasion, and


 
 

Consideration of Bill (Report Stage): 21 February 2018      

7

 

Finance (No. 2) Bill, continued

 
 

(c)    

estimates of the role of the provisions of this Act in reducing the tax gap

 

in each tax year from 2018 to 2022.”

 

Member’s explanatory statement

 

This new clause requires the Chancellor of the Exchequer to carry out and publish a review of the

 

effectiveness of the provisions of the Bill in tackling artificial tax avoidance and tax evasion, and

 

in reducing the tax gap.

 

 


 

Stella Creasy

 

Wes Streeting

 

Norman Lamb

 

Mike Gapes

 

Lucy Powell

 

Gareth Snell

Jess Phillips

Liz Saville Roberts

Ben Lake

Hywel Williams

Jonathan Edwards

Martin Whitfield

Ms Angela Eagle

Dan Jarvis

Darren Jones

Stephen Kinnock

Lillian Greenwood

Catherine West

Chris Bryant

Mrs Madeleine Moon

Ruth George

Alison McGovern

Kate Green

Gareth Thomas

Diana Johnson

Christine Jardine

Chris Stephens

Ruth Cadbury

Clive Efford

Stephen Doughty

 

3

 

Schedule  8,  page  103,  line  41,  at end insert—

 

“21A      

After section 461 (counter-acting effect of avoidance arrangements) insert—

 

“Chapter 11

 

Review

 

461A  

Review

 

(1)    

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

 

Exchequer shall undertake a review of the effects of amending the operation of

 

this Part in relation to the excess profits of PFI companies.

 

(2)    

For the purposes of the review under this section, it shall be assumed that the

 

operation of this Part would be amended so as to—

 

(a)    

deduct the uncompensated excess profit amount of PFI companies from

 

the aggregate of the interest allowances of the group for periods before

 

the current period so far as they are available in the current period for the

 

purposes of calculating the interest capacity of a worldwide group under

 

section 392 (the interest capacity of a worldwide group for a period of

 

account),

 

(b)    

provide that, for groups that contain a PFI company, the uncompensated

 

excess profit amount for a period is equal to the group excess profit

 

amount less the aggregate amount by which the group’s taxable profit has

 

been reduced in prior periods as a result of such provisions,

 

(c)    

provide that the group excess profit amount for any period will be the

 

aggregate PFI excess profit amount for each PFI company in the group,

 

and

 

(d)    

provide that the PFI excess profit amount for a PFI company for a period

 

will be the amount by which the internal rate of return on shares and

 

related party debt in that company (from inception to the end of the


 
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Revised 21 February 2018