Amendment Paper as at
Tuesday 6th July 1999
CONSIDERATION OF BILL
FINANCE BILL, AS AMENDED
NEW CLAUSES
Friendly Societies (expenses of management)
Dr Vincent Cable
Mr Edward Davey
NC13
To move the following Clause:—
'.—(1) The Income and Corporation Taxes Act 1988 shall be amended as follows.
(2) At the end of subsection (1) of section 463 there shall be added—
"but any modifications and exceptions as may be prescribed by such regulations shall not relate to the provisions of section 76, other than subsection (7) of that section, for accounting periods beginning after 31 December 1998.".'.
A pensioner's tax exemption certificate
Mr Edward Davey
Mr Colin Breed
Mr John Burnett
Dr Vincent Cable
NC18
To move the following Clause:—
'.—(1) The Inland Revenue shall be given the power to issue tax exemption certificates to taxpayers who, at any time within that year are of the age of 65 or upwards, whose income does not exceed £6,000 (Tax Exemption Certificate Limit), and is likely not to exceed that limit in the three following years.
(2) The Tax Exemption Certificate shall:
(a) entitle the taxpayer to receive income from all sources without deduction of income tax
(b) exempt the taxpayer from dealings with the Inland Revenue, save to confirm the level of income when renewing the Tax Exemption Certificate
(c) require the taxpayer to notify the Inland Revenue by 5th October following the end of the tax year where their income has exceeded the Tax Exemption Certificate limit
(d) be granted for a period of four consecutive years.
(3) The Tax Exemption Certificate limit shall be automatically uprated every year in accordance with section 257 of the Taxes Act 1988.'.
Offshore oil and gas: rollover relief
Mr Francis Maude
Mr David Heathcoat-Amory
Mr Quentin Davies
Mr Oliver Heald
Mr Howard Flight
NC19
To move the following Clause:—
'.—(1) Section 193 of the Taxation of Chargeable Gains Act 1992 is hereby repealed with effect from 6th April 1999.
(2) In section 155 of the Taxation of Chargeable Gains Act 1992 (classes of assets for the purposes of rollover relief) after Class 8 there shall be inserted—
"Class 9
A licence under Part I of the Petroleum Act 1998 or the Petroleum (Production) Act (Northern Ireland) 1964.
This section applies to all licences (or interests in them) disposed of on or after the 6th April 1999.".'.
Personal service companies (No. 3)
Mr Francis Maude
Mr David Heathcoat-Amory
Mr Quentin Davies
Mr Oliver Heald
Mr Howard Flight
NC21
To move the following Clause:—
'.—The Commissioners of Inland Revenue in assessing the liability for tax of a taxpayer shall disallow reliefs appropriate to a personal service company only to the extent that they are satisfied that the service company was formed with the intention of avoiding tax.'.
Mr David Heathcoat-Amory
Mr Quentin Davies
Mr Oliver Heald
Mr Howard Flight
40
Page 1, line 24 [Clause 2], leave out '£0.5288', and insert '£0.499'.
Mr David Heathcoat-Amory
Mr Quentin Davies
Mr Oliver Heald
Mr Howard Flight
41
Page 1, line 26 [Clause 2], leave out '£0.4721', and insert '£0.4355'.
Mr David Heathcoat-Amory
Mr Quentin Davies
Mr Oliver Heald
Mr Howard Flight
42
Page 2, line 2 [Clause 2], leave out '£0.5021', and insert '£0.4557'.
Mr Michael Jack
27
Page 3, line 26 [Clause 8], after 'centimetres,', insert 'a vehicle falling within subparagraph (1) of paragraph 1A, or a vehicle falling within subparagraph (1) of paragraph 1B,'.
Mr Michael Jack
28
Page 3, line 39 [Clause 8], at end insert—
'(6) At the end of paragraph 1 of Schedule 1 to the Vehicle Excise and Registration Act 1994 there shall be inserted—
"1A.—(1) Any vehicle which has during the previous 12 months been certified as achieving an emissions figure of 140g CO2/km shall have a general rate of £100.
(2) The Secretary of State shall by regulations establish the methodology by which the emissions figure referred to in sub-paragraph (1) is to be calculated, and any such regulations shall be subject to annulment by either House of Parliament.
(3) Subparagraph (1) shall have effect in relation to any licence taken out for a period beginning on or after 1st January 2000.".'.
Mr Michael Jack
29
Page 3, line 39 [Clause 8], at end insert—
'(7) At the end of paragraph 1 of Schedule 1 to the Vehicle Excise and Registration Act 1994 there shall be inserted—
"1B.—(1) Any vehicle which has been registered during the previous 12 months and which has been certified as using Liquefied Petroleum Gas as a fuel shall have a general rate of £100.
(2) The Secretary of State shall by regulations establish the methodology by which the process of certification referred to in sub-paragraph (1) is to be carried out, and any such regulations shall be subject to annulment by either House of Parliament.
(3) Subparagraph (1) shall have effect in relation to any licence taken out for a period beginning on or after 1st January 2000.".'.
Mr Francis Maude
Mr David Heathcoat-Amory
Mr Quentin Davies
Mr Howard Flight
Mr Oliver Heald
Mr Edward Davey
2
Page 9, line 12 [Clause 19], leave out '20' and insert '10'.
Mr Edward Davey
Mr Colin Breed
Mr John Burnett
Dr Vincent Cable
36
Page 16, line 6 [Clause 31], leave out '2000' and insert '2001'.
Mr Edward Davey
Mr Colin Breed
Mr John Burnett
Dr Vincent Cable
37
Page 16, line 8 [Clause 31], leave out '2000-01' and insert '2001-02'.
Mr Edward Davey
Dr Vincent Cable
Mr Colin Breed
Mr John Burnett
30
Page 21, line 4 [Clause 40], leave out subsection (7) and insert—
'(7) The amendments made by this section shall be deemed always to have had effect'.
Mr Chancellor of the Exchequer
3
Page 24, line 21 [Clause 45], leave out 'large'.
Mr Chancellor of the Exchequer
4
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
5
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
6
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
7
Page 25, line 14 [Clause 45], leave out 'bus' and insert 'road'.
Mr Chancellor of the Exchequer
8
Page 25, line 18 [Clause 45], leave out 'bus' and insert 'road'.
Mr Chancellor of the Exchequer
9
Page 25, line 20 [Clause 45], leave out 'with a seating capacity of 17 or more'.
Mr Chancellor of the Exchequer
10
Page 25 [Clause 45], leave out lines 29 and 30.
Mr Chancellor of the Exchequer
11
Page 25 [Clause 45], leave out lines 37 to 39.
Mr Chancellor of the Exchequer
12
Page 25, line 46 [Clause 45], leave out from beginning to end of line 3 on page 26.
Mr Chancellor of the Exchequer
13
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
15
Page 35, line 27 [Clause 61], leave out 'sub-paragraph (2)' and insert 'the following provisions of this paragraph'.
Mr Chancellor of the Exchequer
16
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
17
Page 35 [Clause 61], leave out lines 37 to 42 and insert—
'(1A) The occasions that are to be taken into account for the purpose of determining whether a security is a relevant discounted security by virtue of sub-paragraph (1)(b) above shall not include any of the following occasions on which it may be redeemed, that is to say—
(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.".'.
