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SUPPLEMENT TO THE VOTES AND PROCEEDINGS

 
 

Wednesday 21 February 2018

 

Report Stage Proceedings

 

Finance (No. 2) Bill, As Amended


 

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Withdrawn after debate: moved and debated but then withdrawn, so not put to a decision.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

 

 


 

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

 

Negatived on division  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.


 
 

Report Stage Proceedings: 21 February 2018              

2

 

Finance (No. 2) Bill, continued

 
 

(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),

 

(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.”

 

 


 

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

 

Negatived on division  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.


 
 

Report Stage Proceedings: 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.””

 


 

Jeremy Corbyn

 

John McDonnell

 

Mr Nicholas Brown

 

Peter Dowd

 

Jonathan Reynolds

 

Anneliese Dodds

 

Not called  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.

 

(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.


 
 

Report Stage Proceedings: 21 February 2018              

4

 

Finance (No. 2) Bill, continued

 
 

      (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.””

 


 

Jeremy Corbyn

 

John McDonnell

 

Mr Nicholas Brown

 

Peter Dowd

 

Jonathan Reynolds

 

Anneliese Dodds

 

Not called  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.

 

(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.”

 

 



 
 

Report Stage Proceedings: 21 February 2018              

5

 

Finance (No. 2) Bill, continued

 
 

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

 

Not called  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.

 

      (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.”


 
 

Report Stage Proceedings: 21 February 2018              

6

 

Finance (No. 2) Bill, continued

 
 

Jeremy Corbyn

 

John McDonnell

 

Mr Nicholas Brown

 

Peter Dowd

 

Jonathan Reynolds

 

Anneliese Dodds

 

Not called  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)”.

 

Stella Creasy

 

Not called  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.”

 


 

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

 

Not called  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

 

(c)    

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

 

in each tax year from 2018 to 2022.”

 

 



 
 

Report Stage Proceedings: 21 February 2018              

7

 

Finance (No. 2) Bill, continued

 
 

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

 

Negatived on division  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

 

previous accounting period) exceeds the internal rate of return set in the

 

relevant PFI contract or, if no such return was specified, 10%.

 

(3)    

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.

 

(4)    

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

 

before the House of Commons as soon as practicable after its completion.”


 
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Revised 21 February 2018