Vote Bundle Text (990701-04)

Amendments proposed to the Finance Bill, As Amended - continued	House of Commons

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Mr Chancellor of the Exchequer

Page 24, line 21 [Clause 45], leave out 'large'.

Mr Chancellor of the Exchequer

Page 24 [Clause 45], leave out lines 24 and 25 and insert—

''bus' means a road passenger vehicle with a seating capacity of 12 or more; and'.

Mr Chancellor of the Exchequer

Page 24, line 33 [Clause 45], leave out from first 'the' to end of line 34 and insert 'following conditions—

(a) the service must be available generally to employees of the employer (or each employer) concerned;

(b) the main use of the service must be for qualifying journeys by those employees.'.

Mr Chancellor of the Exchequer

Page 24, line 36 [Clause 45], leave out from 'the' to end of line 40 and insert 'condition that the service must be used only by the employees for whom it is provided or their children.

For this purpose 'children' includes stepchildren and illegitimate children but does not include children aged 18 or over.'.

Mr Chancellor of the Exchequer

Page 25, line 14 [Clause 45], leave out 'bus' and insert 'road'.

Mr Chancellor of the Exchequer

Page 25, line 18 [Clause 45], leave out 'bus' and insert 'road'.

Mr Chancellor of the Exchequer

Page 25, line 20 [Clause 45], leave out 'with a seating capacity of 17 or more'.

Mr Chancellor of the Exchequer

Page 25 [Clause 45], leave out lines 29 and 30.

Mr Chancellor of the Exchequer

Page 25 [Clause 45], leave out lines 37 to 39.

Mr Chancellor of the Exchequer

Page 25, line 46 [Clause 45], leave out from beginning to end of line 3 on page 26.

Mr Chancellor of the Exchequer

Page 27, line 1 [Clause 47], leave out from 'to' to end of line 3 and insert 'the condition that the employee must use the cycle or safety equipment mainly for qualifying journeys.'.

Mr Chancellor of the Exchequer

Page 35, line 27 [Clause 61], leave out 'sub-paragraph (2)' and insert 'the following provisions of this paragraph'.

Mr Chancellor of the Exchequer

Page 35, line 32 [Clause 61], leave out 'that is capable of' and insert 'of which there may be a'.

Mr Chancellor of the Exchequer

Page 35 [Clause 61], leave out lines 37 to 42 and insert—

(a) any occasion not falling within sub-paragraph (1C) below on which there may be a redemption otherwise than at the option of the person who holds the security;

(b) in a case where a redemption may occur as a result of the exercise of an option that is exercisable—

(i) only on the occurrence of an event adversely affecting the holder, or

(ii) only on the occurrence of a default by any person,

any occasion on which that option is unlikely (judged as at the time of the security's issue) to be exercisable;

but nothing in this sub-paragraph shall require an occasion on which a security may be redeemed to be disregarded by reason only that it is or may be an occasion that coincides with an occasion mentioned in this sub-paragraph.

(1B) In sub-paragraph (1A) above 'event adversely affecting the holder', in relation to a security, means an event which (judged as at the time of the security's issue) is such that, if it occurred and there were no provision for redemption, the interests of the person holding the security at the time of the event would be likely to be adversely affected.

(1C) An occasion on which there may be a redemption of a security falls within this sub-paragraph if—

(a) the security is a security issued to a person connected with the issuer; or

(b) the obtaining of a tax advantage by any person is the main benefit, or one of the main benefits, that might have been expected to accrue from the provision in accordance with which it may be redeemed on that occasion.

(1D) In sub-paragraph (1C) above 'tax advantage' has the meaning given by section 709(1) of the Taxes Act 1988.

(1E) Subject to sub-paragraph (1F) below, where a security which is not a relevant discounted security but which would have been such a security if it had been issued to a person connected with the issuer—

(a) is acquired by a person who is so connected, or

(b) is held by a person who becomes so connected,

this Schedule shall have effect, in relation to times falling at or after the time of the acquisition or, as the case may be, the time when that person became so connected, as if the security were a relevant discounted security.

(1F) Where a security which—

(a) is a relevant discounted security, but

(b) would not be such a security but for sub-paragraph (1C)(a) or (1E) above,

is acquired by a person who is not connected with the issuer, this Schedule shall have effect, in relation to that person, as if the security ceased to be a relevant discounted security at the time of the acquisition.".'.

Mr Chancellor of the Exchequer

Page 35, line 42 [Clause 61], at end insert—

'( ) After sub-paragraph (2) of that paragraph there shall be inserted the following sub-paragraphs—

(2B) Nothing in sub-paragraph (2)(f) above shall prevent a security from being treated as a relevant discounted security by virtue of sub-paragraph (1C)(a) or (1E) above.".'.

Mr Chancellor of the Exchequer

Page 35, line 43 [Clause 61], at end insert—

'(2A) After sub-paragraph (6) of that paragraph there shall be inserted the following sub-paragraphs—

(8) In determining for the purposes of sub-paragraph (1C), (1E), (1F) or (2A) above whether a person is or becomes connected with the issuer, no account shall be taken of—

(a) the security mentioned in that sub-paragraph; or

(b) any security issued under the same prospectus as that security."

(2B) In paragraph 10 of that Schedule (issue of securities in separate tranches), after sub-paragraph (3) there shall be inserted the following sub-paragraph—

(a) is a relevant discounted security, but

(b) would not be such a security but for paragraph 3(1C)(a) or (1E) above,

shall be assumed not to be a security falling within sub-paragraph (1)(b) above."

(2C) In paragraph 13 of that Schedule (excluded indexed securities), after sub-paragraph (8) there shall be inserted the following sub-paragraph—

(2D) In section 92 of that Act, after subsection (6) there shall be inserted the following subsections—

(a) ceases at any time to be an asset to which this section applies, but

(b) does not cease at that time to represent a creditor relationship of that company,

the company shall be deemed for the purposes of the Taxation of Chargeable Gains Act 1992 and this Chapter to have disposed of the asset immediately before that time for the relevant consideration, and to have re-acquired it immediately after that time for the relevant consideration.

(8) Any deemed disposal and re-acquisition under subsection (7) above shall be treated for the purposes of that Act of 1992 as a transaction in the case of which—

(a) sections 127 to 130 of that Act would apply, apart from the provisions of section 116 of that Act, by virtue of any provision of Chapter II of Part IV of that Act;

(b) the asset in question represents both the original shares and the new holding for the purposes of those sections;

(9) Subject to subsection (10) below, in subsections (7) and (8) above 'the relevant consideration', in relation to an asset, means the amount that would have been taken, in accordance with the relevant accounting method, to be the value of the asset at the time of its deemed disposal if that method had been applied to the asset for tax purposes at all times until then.

(10) Subsection (5) above shall not apply in the case of a deemed disposal and re-acquisition under subsection (7) above; but the amount of the relevant consideration in such a case shall be treated for the purposes of the Taxation of Chargeable Gains Act 1992 as reduced by so much (if any) of the amount mentioned in subsection (9) above as is referable to interest which—

(a) is not paid or payable to the company before the time of the deemed disposal; but

(b) is interest falling to be brought into account under subsections (2) and (3) above as having accrued before that time.

(11) In subsection (9) above 'the relevant accounting method', in relation to an asset representing a creditor relationship of a company, means the accounting method which, for the accounting period of that company in which the deemed re-acquisition takes place, is used as respects that asset and the part of that accounting period beginning with the deemed re-acquisition.".'.