Amendments proposed to the Finance Bill - continued	House of Commons
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Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]

254

Schedule     15,     page     347,     line     16,     leave out 'of ships'.

   

Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]

255

Schedule     15,     page     347,     line     18,     after 'craft', insert 'and the leasing of products which have been produced by the relevant company itself'.

   

Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]

256

Schedule     15,     page     348,     line     14,     at end insert—

    '(6) A trade shall not be treated as not being a qualifying trade by reason only of its consisting in the leasing or hiring out of products which were produced by or on behalf of the relevant company provided that where products are produced on behalf of the relevant company they are produced using an intangible asset of the relevant company which would for the purposes of paragraph 29 be a relevant intangible asset.'.

   

Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]

257

Schedule     15,     page     348,     line     22,     at end insert 'or partly of relevant intangible assets and partly of other intangible assets provided that such other assets were acquired by the relevant company for bona fide commercial reasons in order to exploit its own intangible assets by providing them or the use of them as part of an assembly, or to be used together as part of a larger assembly, to be constructed by those who as users pay the royalties or licence fees in question'.

   

Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]

258

Schedule     15,     page     350,     line     44,     after 'dividends', insert '(but not including a case where dividends are not paid and the relevant shares may convert to shares of another class after the expiry of a period of time, or the occurrence or non-occurrence of an event, at a rate which reflects the non-payment of dividends)'.

   

Mr David Heathcoat-Amory     [R]
Mr Richard Ottaway
Mr Howard Flight     [R]

259

Schedule     15,     page     350,     line     46,     after 'redeemed', insert '(but not including conversion into another class of share in the issuing company, at whatever rate)'.

   

Mr David Heathcoat-Amory     [R]
Mr Richard Ottaway
Mr Howard Flight     [R]

260

Schedule     15,     page     351,     line     39,     after 'company', insert '(other than a requirement incorporated in the articles of association of the issuing company that there be a transfer, reversion or forfeiture of shares in any given situation or a right of pre-emption on the occasion of any proposed transfer of shares, where such requirement is not incorporated for the purposes of enabling the investing company to receive value from the issuing company)'.

   

Mr David Heathcoat-Amory     [R]
Mr Richard Ottaway
Mr Howard Flight     [R]

261

Schedule     15,     page     351,     line     50,     after 'investment', insert '(but not including insurance relating to the provision of services as an employee or director to the issuing company or any company within its group by an individual who happens also to be an investor in the issuing company)'.

   

Mr Nick St. Aubyn
Mr Howard Flight [R]

160

Schedule     15,     page     354,     leave out lines 8 to 10.

   

Mr Nick St. Aubyn
Mr Howard Flight [R]

161

Schedule     15,     page     354,     line     12,     after 'Revenue', insert 'provided that if the Revenue shall not have responded to a request for the grant of authority within 30 days then such grant shall be deemed to have been made'.

   

Mr David Heathcoat-Amory     [R]
Mr Richard Ottaway
Mr Howard Flight     [R]

262

Schedule     15,     page     356,     line     21,     at end insert—

'(e) a disposal which by virtue of Part IX of this Schedule is deemed not to be a disposal of relevant shares'.

   

Mr David Heathcoat-Amory     [R]
Mr Richard Ottaway
Mr Howard Flight     [R]

263

Schedule     15,     page     357,     line     4,     at end insert—

    '(1A) For the avoidance of doubt the following events shall not of themselves be regarded as a receipt of value from the issuing company:

(a) the listing or dealing in shares as mentioned in paragraphs (a), (b) and (c) of paragraph 16(1) above;

(b) the conversion of relevant shares into shares of another class, at whatever rate, in accordance with the rights attaching to them.'.

   

Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]

264

Schedule     15,     page     365,     line     43,     at end insert—

    '(1A) An option shall not fall within sub-paragraph (2) if it is granted in connection with the obtaining of listing or dealing as mentioned in paragraphs (a), (b) or (c) of paragraph 16(1) above.'.

   

Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]

265

Schedule     15,     page     374,     line     11,     after 'categories', insert 'and for the avoidance of doubt for the purposes of this Schedule there shall be deemed not to have been a disposal of any relevant shares in question, nor any receipt of value from the issuing company'.

   

Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]

266

Schedule     15,     page     374,     line     39,     leave out 'not'.

   

Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]

267

Schedule     15,     page     374,     leave out lines 40 to 48 and insert—

    '(1A) The receipt of new shares as mentioned in sub-paragraph (1) above shall be treated as a subscription for relevant shares with a qualification period which commences on the day on which they are received, for any consideration given for them.'.

   

Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]

268

Schedule     15,     page     379,     leave out lines 14 to 17.

   

Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]

269

Schedule     15,     page     382,     leave out lines 16 to 23.

   

Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]

270

Schedule     15,     page     383,     line     25,     leave out from 'is' to end of line 27 and insert 'to be determined in accordance with Part VIII of the Taxation of Chargeable Gains Act 1992.'.

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Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]

271

Schedule     17,     page     389,     line     11,     at end insert—

    '(2) The Treasury may by regulations make provision for cases where—

(a) a holding of eligible shares is exchanged for other shares or securities,

(b) the exchange is made for bona fide commercial reasons and does not form part of a scheme or arrangements of which the main purpose, or one of the main purposes, is the avoidance of tax, and

(c) the new shares or securities do not meet some or all the requirements of section 289 of the Taxes Act 1988

    providing that the new shares or securities shall be treated as meeting those requirements.

    (3) The references in sub-paragraph (2) to an exchange of shares or securities include any form of company reorganisation or other arrangement which involves a holder of shares or securities in a company receiving other shares or securities—

(a) whether the original shares or securities are transferred, cancelled or retained, and

(b) whether the new shares or securities are in the same or another company.

    (4) The regulations shall specify—

(a) the cases in which, and conditions subject to which, they apply,

(b) which requirements of section 289 of the Taxes Act 1988 are to be treated as met, and

(c) the period for which those requirements are to be treated as met.

    (5) The regulations may contain such administrative provisions (including provision for advance clearances) as appear to the Treasury to be necessary or expedient.

    (6) The regulations may authorise the Board to give notice to any person requiring him to provide such information, specified in the notice, as they may reasonably require in order to determine whether any conditions imposed by the regulations are met.

    (7) Regulations under this paragraph—

(a) may make different provision for different cases,

(b) may include such supplementary, incidental and transitional provisions as appear to the Treasury to be appropriate, and

(c) may include provision having retrospective effect.

    (8) In the first column of the table in section 98 of the Taxes Management Act 1970 (penalty for failure to comply with notice requiring information etc.) after the entry relating to paragraph 4 of Schedule 22 to the Taxes Act 1988 insert "Regulations under paragraph 1(2) of Schedule 17 to the Finance Act 2000.".'.

   

Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]

226

Schedule     17,     page     389,     line     30,     at end insert—

    '(4) In section 297 (qualifying trades), after the words "receiving royalties or licence fees" insert:

    "other than the leasing or hiring or disposals by hire purchase of products which have been produced by or on behalf of the applicable company itself provided that where the products are produced on behalf of the relevant company they are produced using an intangible asset of the relevant company which would for the purposes of Paragraph 22 be a relevant intangible asset.".'.

Prepared 6 Jun 2000