S.C.H.
Amendment Paper as at
Tuesday 13th June 2000
STANDING COMMITTEE H
New Amendments handed in are marked thus *
FINANCE BILL
(Except Clauses 1, 12, 30, 31, 59, 102 and 113)
NOTE
The Amendments have been arranged in accordance with the Order of the Committee [4th May] as follows:
Clauses 2 to 6, Schedule 1, Clauses 7 to 11, Clauses 13 to 15, Clause 28, Clauses 16 and 17, Schedule 2, Clauses 18 to 22, Schedule 3, Clause 23, Schedule 4, Clause 24, Schedule 5, Clauses 25 to 27, Clause 29, Schedules 6 and 7, Clauses 32 to 47, Schedule 8, Clause 48, Schedule 9, Clauses 49 to 55, Clause 134, Clause 56, Schedule 10, Clauses 57 and 58, Schedule 11, Schedule 12, Clause 60, Schedule 13, Clause 61, Schedule 14, Clause 62, Schedules 15 and 16, Clause 63, Schedule 17, Clause 64, Schedule 18, Clauses 65 to 67, Schedule 19, Clause 68, Schedules 20 and 21, Clauses 69 to 81, Schedule 22, Clauses 82 to 86, Schedule 23, Clauses 87 to 90, Schedule 24, Clause 91, Schedules 25 and 26, Clauses 92 to 96, Schedule 27, Clause 97, Schedule 28, Clauses 98 to 101, Schedule 29, Schedule 30, Clause 103, Schedule 31, Clauses 104 to 112, Clauses 114 and 115, Schedule 32, Clause 116, Schedule 33, Clauses 117 to 127, Schedule 34, Clauses 128 to 131, Schedule 35, Clause 132, Schedule 36, Clause 133, Clauses 135 to 138, Schedule 37, Clause 139, Schedule 38, Clauses 140 to 144, Schedule 39, Clauses 145 to 149, New Clauses, New Schedules, Clauses 150 and 151, Schedule 40, Clause 152.
Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]
277
Clause 65, page 45, line 18, at end insert—
'(3A) In sub-paragraph (2)(b) of paragraph 2 of Schedule A1 to the Taxation of Chargeable Gains Act 1992 (period for which an asset is held and relevant period of ownership) for "ten" substitute "four''.'.
Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]
278
Clause 66, page 45, line 22, after 'paragraph', insert—
'3. (Rules for determining whether a gain is a gain on the disposal of a business asset or a non-business asset), after sub-paragraph (5) insert—
"(6) Where sub-paragraph (2) of this Paragraph applies the person to whom the gain accrues shall be entitled by notice given within a period of two years immediately following the tax year in which the gain accrues to elect as at the date when the asset became or (as the case may be) ceased to be a business asset to have the asset treated as if it had been sold on that day by the person making the disposal and immediately re-acquired by him at its market value at that date and the provisions of sub-paragraph (5) shall mutatis mutandis apply to the two gains for the purposes of paper relief" and in paragraph'.
Mr Howard Flight
Mr Ian Taylor
291
Clause 66, page 46, line 3, after 'group', insert 'or a Venture Capital Investment Trust'.
Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]
279
Clause 66, page 46, line 6, after '(ii)' insert 'at the time when the shares were acquired'.
Mr Nick St. Aubyn
Mr Howard Flight [R]
151
Clause 66, page 46, line 10, after 'individual', insert 'for a period of not less than 24 months during the time he owned shares in the company'.
Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]
280
Clause 66, page 46, line 17, after '(ii)', insert 'at the time when the shares were acquired'.
Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]
281
Clause 66, page 46, line 29, after '(ii)', insert 'at the time when the shares were acquired the individual was an officer or employee of the company, or of a company having a relevant connection with it, or
Mr David Heathcoat-Amory [R]
Mr Richard Ottaway [R]
Mr Howard Flight [R]
297
Clause 66, page 46, line 30, at end insert—
'(6A) For the purposes of this Act a holding company means a company whose business consists wholly or mainly of the holding of shares in one or more companies in which it has a shareholding of 40 per cent. or more.'.
Mr Howard Flight
Mr Ian Taylor
292
Clause 66, page 46, line 31, at end insert—
'"Venture Capital Investment Trust" means an investment trust in respect of which holdings in companies which are not listed on a recognised stock exchange represent more than 50 per cent. by value of the investment trust's investments and for the purposes of this definition "investment trust" and "holding" shall be construed in accordance with section 842 of the Taxes Act.'.
Mr David Heathcoat-Amory [R]
Mr Richard Ottaway [R]
Mr Howard Flight [R]
298
Clause 66, page 46, leave out lines 33 to 36 and insert—
'(a) none of whose ordinary shares is listed on a recognised stock exchange, nor
(b) which is a 51 per cent. subsidiary of a company any of whose ordinary shares are so listed.
Ordinary shares means shares other than those entitling the holders thereof to a dividend at a fixed rate but no other right to share in the profits of the company.'.
Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]
285
Clause 66, page 46, line 33, after 'whose', insert 'ordinary'.
Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]
286
Clause 66, page 46, line 36, after 'whose', insert 'ordinary'.
Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]
282
Clause 66, page 46, line 36, at end insert—
'"trading company" means a company which would not be an investment company within the meaning of section 130 of the Taxes Act 1988;
"trading group" means a group of companies all the members of which are trading companies; and'.
Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]
283
Clause 66, page 46, line 38, after 'employment', insert 'and "trading company" and "trading group" contained in that paragraph immediately prior to the passing of this Act'.
Mr David Heathcoat-Amory [R]
Mr Richard Ottaway
Mr Howard Flight [R]
284
Clause 66, page 46, line 40, after 'asset', insert 'where it was acquired on or after 6 April 1998 and disposed'.
Mr Richard Ottaway
Mr David Heathcoat-Amory
Mr Howard Flight
91
Schedule 19, page 398, line 14, leave out from 'development' to end of line 32 and insert 'has the meaning given in paragraph 21 of Statement of Standard Accounting Practice 13'.
Mr Richard Ottaway
Mr David Heathcoat-Amory
Mr Howard Flight
92
Schedule 20, page 401, line 21, leave out '£25,000' and insert '£24,000'.
Mr Richard Ottaway
Mr David Heathcoat-Amory
Mr Howard Flight
93
Schedule 20, page 401, line 22, leave out '£25,000' and insert '£24,000'.
Mr Richard Ottaway
Mr David Heathcoat-Amory
Mr Howard Flight
94
Schedule 20, page 401, line 40, after '1996', insert—
', subject to sub-paragraph (1A).
(1A) The definition of a "small or medium-sized enterprise" shall have effect as if, for every reference to an amount in Euros, there were substituted the equivalent amount in sterling, calculated on 21st March 2000.'.
Mr Richard Ottaway
Mr David Heathcoat-Amory
Mr Howard Flight
95
Schedule 20, page 403, line 12, leave out from 'means' to end of line 15 and insert—
'(a) additional overheads incurred directly as a result of the research activity, or
(b) other operating expenses, such as costs of materials, supplies and similar products, incurred directly as a result of the research activity.'.
Mr Richard Ottaway
Mr David Heathcoat-Amory
Mr Howard Flight
96
Schedule 20, page 403, line 34, after 'project;' insert—
', except that, if the circumstances have been notified to and approved by the European Commission, then this sub-paragraph shall have effect as if, for the words "if a notified State aid" there were substituted "to the extent that a notified State aid.".'.
Mr Richard Ottaway
Mr David Heathcoat-Amory
Mr Howard Flight
97
Schedule 20, page 405, line 11, leave out '65%.' and insert '100%.'
Mr Richard Ottaway
Mr David Heathcoat-Amory [R]
Mr Howard Flight [R]
107
Schedule 20, page 406, line 15, leave out 'that was or could have been'.
Mr Richard Ottaway
Mr David Heathcoat-Amory
Mr Howard Flight
98
Schedule 20, page 408, leave out lines 25 to 28 and insert 'the loss that may be surrendered in respect of that period by the company, for the purposes of a claim to group relief under section 402(3) of the Taxes Act 1988 (group relief available where surrendering company owned by a consortium), to any other company that is not a small or medium-sized enterprise shall be limited to the loss which would have been available if the company had not claimed relief under paragraph 13 or 14.'.
