Amendments proposed to the Finance Bill - continued House of Commons

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Mr Richard Ottaway
Mr David Heathcoat-Amory
Mr Howard Flight

148

Schedule     21,     page     410,     line     28,     leave out '1996' and insert '1998'.


   

Mr Richard Ottaway
Mr David Heathcoat-Amory
Mr Howard Flight

143

Clause     70,     page     48,     line     1,     leave out 'small enterprise' and insert 'small or medium-sized enterprise'.

   

Mr Richard Ottaway
Mr David Heathcoat-Amory
Mr Howard Flight

144

Clause     70,     page     48,     line     11,     after 'computers', insert ', including components of computers such as memory chips,'.

   

Mr Richard Ottaway
Mr David Heathcoat-Amory
Mr Howard Flight

145

Clause     70,     page     48,     line     18,     at end insert 'or,

      (iii) between a computer and a peripheral device,'.

   

Mr Richard Ottaway
Mr David Heathcoat-Amory
Mr Howard Flight

146

Clause     70,     page     48,     line     27,     leave out 'third generation'.


   

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

299

Schedule     22,     page     414,     line     39,     leave out 'may' and insert 'shall'.

   

Mr Andrew Smith

310

Schedule     22,     page     415,     line     26,     at end insert—

    'This is subject to paragraph 38(2)(a) and (b) (effect in certain cases of exceeding the 75% limit on chartered in tonnage).'.

   

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

300

Schedule     22,     page     416,     line     28,     at end insert—

    '(3) The elements of management activity to be taken into account in determining whether strategic and commercial management is carried out in the UK will include:

      (i) managing the bunkers, provisioning and victualling requirements

      (ii) route planning

      (iii) taking bookings for cargo or passengers

      (iv) personnel management (officers)

      (v) personnel management (ratings)

      (vi) making decisions on the purchase, charter or sale of vessels

      (vii) technical management including making decisions on the repair and maintenance of vessels

      (viii) whether the vessel is flagged in the UK.'.

   

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

301

Schedule     22,     page     417,     line     39,     after 'tonnage', insert 'which is registered in the United Kingdom and is'.

   

Mr Andrew Smith

311

Schedule     22,     page     418,     line     2,     leave out from 'ships)' to end of line 3.

   

Mr Andrew Smith

312

Schedule     22,     page     418,     line     13,     at end insert—

      '( ) dredgers.'.

   

Mr Andrew Smith

313

Schedule     22,     page     418,     line     29,     leave out 'excluding other kinds of vessel' and insert 'amending paragraph 20 so as to add any description of vessel to, or remove any description of vessel from, the kinds of vessel that are excluded'.

   

Mr Andrew Smith

314

Schedule     22,     page     419,     line     2,     leave out 'or under paragraph 21'.

   

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

302

Schedule     22,     page     419,     line     31,     at end insert—

    '(5) For the purpose of the regulations, a company's tonnage shall exclude all ships that satisfy the following conditions:

      (a) the ship is chartered-in; and

      (b) the ship's owner is a company in the tonnage tax regime.'.

   

Mr Andrew Smith

315

Schedule     22,     page     419,     line     35,     at end insert—

    '(2) A training commitment is not effective for the purposes of this Part of this Schedule unless approved by the Secretary of State.

    (3) Sub-paragraphs (1) and (2) are subject to—

      paragraph 27(4) and (5) (power of Secretary of State to set training commitment), and

      paragraph 28(1A) (power of Secretary of State to adjust training commitment to take account of changed circumstances).'.

   

Mr Andrew Smith

316

Schedule     22,     page     420,     line     11,     at end insert—

    '(4) The Secretary of State may make provision by regulations enabling him—

      (a) to set the training commitment for a company or group if, after such period as may be prescribed, no training commitment has been submitted to and approved by him; and

      (b) on the application of the company or group concerned, made after consultation with any prescribed person involved in the training of seafarers, to vary a training commitment set by him.

    (5) A training commitment set by the Secretary of State has effect as if submitted by the company or group and approved by him.'.

   

Mr Andrew Smith

317

Schedule     22,     page     420,     line     21,     at end insert—

    '(1A) The Secretary of State may make provision by regulations—

      (a) enabling him, on the application of the company or group concerned, to adjust a training commitment (to any extent) to take account of changed circumstances;

      (b) requiring an application for adjustment to be in such form and contain such information as may be prescribed;

      (c) authorising the Secretary of State, when considering an application for adjustment, to consult any prescribed person involved in the training of seafarers;

      (d) as to the procedure to be followed where the Secretary of State is minded not to make the adjustment applied for.'.

   

Mr Andrew Smith

318

Schedule     22,     page     424,     leave out lines 19 to 26 and insert—

    '38.—(1) Where a tonnage tax election is made before the end of the initial period and the 75% limit is exceeded in the first relevant accounting period, the election is treated as never having been of any effect.

    (2) Where a tonnage tax election is made after the end of the initial period, then—

      (a) if the 75% limit is exceeded in the first relevant accounting period, the election does not have effect in relation to that period;

      (b) if the 75% limit is exceeded in the first and second relevant accounting periods, the election does not have effect in relation to either of those periods; and

      (c) if the 75% limit is exceeded in the first, second and third relevant accounting periods, the election is treated as never having been of any effect.

    (2A) For the purposes of sub-paragraphs (1) and (2) the first, second or third relevant accounting period means—

      (a) in relation to a single company, the accounting period that, if the election had been effective, would have been the first, second or third accounting period of the company after its entry into tonnage tax;

      (b) in relation to a group, the accounting period that, if the election had been effective, would have been the first, second or third accounting period of a member of the group that would have been a tonnage tax company.'.

   

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

303

Schedule     22,     page     426,     line     20,     at end insert— 'and

      (c) any trading income, such as the rebate of rentals, arising on the disposal of an interest in a ship, provided that the income does not arise from a trade consisting in the purchase and sale of ships.'.

   

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

304

Schedule     22,     page     426,     line     35,     at end insert ', and

      (c) any revenue from the transporting of oil.'.

   

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

305

Schedule     22,     page     427,     line     42,     at end insert 'and, in the case of non-trading income falling within sub-paragraph (2)(a), any such income that can be shown to arise from the short-term investment of surplus working capital from core qualifying activities or qualifying secondary activities'.

   

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

306

Schedule     22,     page     429,     line     20,     at end insert 'and ending before or on the company's exit from tonnage tax'.

   

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

307

Schedule     22,     page     431,     line     11,     at end insert—

    '(3) Where a company fails to issue a notice within the prescribed period the company shall be liable to a penalty of £100.'.

   

Mr Richard Ottaway
Mr David Heathcoat-Amory
Mr Howard Flight

147

Schedule     22,     page     431,     line     42,     leave out '5' and insert '2A'.

   

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

308

Schedule     22,     page     433,     line     23,     at end insert ', together with the length of any periods during which the asset was not a tonnage tax asset and not within the charge to corporation tax on chargeable gains.'.

   

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

309

Schedule     22,     page     433,     line     26,     at end insert—

'Chargeable gains: disposal of shares in tonnage tax companies

    65A.—(1) Where a tonnage tax company disposes of shares in another tonnage tax company ("company A"), the chargeable gain or loss shall be equal to the gain or loss which would have accrued if the shares had been disposed of immediately before company A became a tonnage tax company.

    (2) Where a tonnage tax company disposes of shares in a non-resident company ("company B") that satisfies the conditions in sub-paragraph (3) below, the chargeable gain or loss shall be equal to the gain or loss which would have accrued if the shares had been disposed of immediately before company B first satisfied those conditions.

    (3) The conditions are—

      (a) that the conditions in paragraphs 49(2)(a) and 49(2)(b) are satisfied;

      (b) that the 75 per cent. limit is not exceeded in relation to the overseas company; and

      (c) that all the income of the overseas company is such that, if it were a tonnage tax company, it would be relevant shipping income.

    (4) For the purposes of sub-paragraph (3)(b), the "75 per cent. limit" has the meaning given in 49(3).'.

 
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Prepared 13 Jun 2000