Amendments proposed to the Finance Bill - continued | House of Commons |
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Mr Richard Ottaway [R] 293 Schedule 22, page 437, leave out lines 18 to 25 and insert
Mr Richard Ottaway [R] 294 Schedule 22, page 439, line 34, at end insert'The regulations shall make provision for the writing down to be done on a basis to be specified by the tonnage tax company, provided that the company can demonstrate that the basis is just and reasonable.'.
Mr Andrew Smith 319 Schedule 22, page 440, line 33, leave out 'paragraph 90' and insert 'paragraphs 90 and 90A'.
Mr Andrew Smith 320 Schedule 22, page 441, line 4, leave out sub-paragraphs (3) and (4).
Mr Andrew Smith 321 Schedule 22, page 441, line 20, at end insert
'Defeased leasing: excepted forms of security 90A.(1) Pararaph 90 (defeased leasing) is subject to the following exceptions.(2) It does not apply to the provision of security of any of the following kinds by the lessee, or a person connected with the lessee
In this sub-paragraph "the ship" means the ship that is the subject of the lease. (3) It does not apply to the provision of security by the lessee, or a person connected with the lessee, if the following conditions are met
(4) It does not apply to the provision of security by a third party where no security other than security of a kind mentioned in sub-paragraph (2)(a) to (d) is held by the third party or any person connected with the third party. (5) It does not apply to the provision of security by a third party if the following conditions are met
(6) For the purposes of this paragraph the lessor and any persons connected with him shall be treated as the same person. (7) In this paragraph
Mr Andrew Smith 322 Schedule 22, page 441, leave out lines 38 to 45 and insert'After the time of that transaction the ship is used for the purposes of a tonnage tax trade carried on
without having been used since that time for the purposes of any other trade (except that of leasing). (3) This paragraph does not apply if the ship is newly-constructed and the transaction mentioned in Step Two in sub-paragraph (2) is effected not more than four months after the first occasion on which the ship is brought into use by any person for any purpose. (4) A person is regarded for the purposes of this paragraph as owning a ship if it is treated as belonging to him for the purposes of Part II of the Capital Allowances Act 1990.'.
Mr Andrew Smith 323 Schedule 22, page 443, line 19, leave out 'applied' and insert 'applies'.
Mr Andrew Smith 324 Schedule 22, page 443, line 30, leave out paragraphs 97 and 98 and insert
'Quantitative restrictions: change of circumstances bringing case within restrictions 97.(1) The provisions of this paragraph apply where
(2) In this paragraph
(3) At the beginning of the relevant period an amount ("amount A") equal to
shall be brought into account as a disposal value in the lessor's normal pool. (4) At the same time an amount of qualifying expenditure equal to amount A shall be taken to a separate single-asset pool ("the temporary pool"). (5) Any qualifying expenditure or other items relating to the ship that would otherwise have been brought into account in the lessor's normal pool in the relevant period shall instead be brought into account in the temporary pool. (6) At the end of the relevant period, the temporary pool shall be closed as if the ship had been disposed of by the lessor for an amount equal to its tax written down value at that time ("amount B"), and any resulting balancing allowance or balancing charge shall be given effect. (7) The lessor shall be treated as if he had incurred qualifying expenditure equal to amount B on the provision of the ship for the purposes of the lessee's tonnage tax trade immediately after the end of the relevant period. (8) There shall be allocated to the lessor's 25% and 10% pools the same proportions of amount B as the proportions of the actual cost of providing the ship that would have been so allocated if the case had been within paragraph 89(1) at all material times.
Quantitative restrictions: change of circumstances taking case out of restrictions 98.(1) The provisions of this paragraph apply where
(2) When the change of circumstances occurs a disposal value shall be brought into account by the lessor equal to the tax written down value of the ship as at that time. The provisions of paragraph 96 (treatment of disposal proceeds) apply as regards the allocation of that amount to the lessor's 25% and 10% pools. (3) The lessor shall be treated as if he had incurred qualifying expenditure on the provision of the ship for the purposes of the lessee's non-tonnage tax trade immediately after the change of circumstances occurs. (4) The amount of that expenditure shall be taken to be the whole of the expenditure on the ship that would have qualified for capital allowances if paragraph 93 had never applied, written down at 25% per annum on the reducing balance for the period beginning with the time when it was actually incurred and ending when the change of circumstances occurs.
Determination of tax written down value, etc. 98A.(1) This paragraph supplements paragraphs 97 and 98.(2) The "tax written down value" of the ship at any time means what would be the amount of unrelieved qualifying expenditure at that time determined on the following assumptions
(3) The references in paragraph 97(3)(b) and sub-paragraph (2) above to the amount of "unrelieved qualifying expenditure" are to the balance that would otherwise have been carried forward under Part II of the Capital Allowances Act 1990. (4) For the purpose of determining that amount at a time other than the beginning or end of an accounting period of the lessor, it shall be assumed that an accounting period of the lessor began or ended at that time.'.
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