S.C.H.
Amendment Paper as at
Tuesday 20th June 2000
STANDING COMMITTEE H
Mr Graham Allen
That the Committee, at its rising on Tuesday 20th June, do adjourn till Thursday 22nd June at One o'clock.
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 Andrew Smith
369
Schedule 30, page 505, line 26, leave out '"subsections" substitute "subsection"' and insert '"subsections shall be treated as inserted after that subsection" substitute "subsection shall be treated as inserted after subsection (2) of section 794"'.
Mr Andrew Smith
370
Schedule 30, page 505, line 34, after '793' insert 'of the Taxes Act 1988'.
Mr Andrew Smith
371
Schedule 30, page 506, line 4, leave out 'This paragraph has' and insert 'Subsections (1) and (2) of the section inserted by sub-paragraph (1) have'.
Mr Andrew Smith
372
Schedule 30, page 506, line 5, at end insert
'(3) Subsection (3) of the section inserted by sub-paragraph (1) has effect in relation to arrangements made on or after 21st March 2000.'.
Mr Andrew Smith
373
Schedule 30, page 507, line 24, at beginning insert 'if
(i) the overseas company and the third company are not resident in the same territory, or
(ii) in such cases as may be prescribed by regulations made by the Treasury, those companies are resident in the same territory,'.
Mr Andrew Smith
374
Schedule 30, page 507, line 42, leave out '1st July 2000' and insert '31st March 2001'.
Mr Andrew Smith
397
Schedule 30, page 508, line 31, at end insert
'UK insurance companies trading overseas: repeal of section 802
11A.(1) Section 802 of the Taxes Act 1988 shall cease to have effect.
(2) This paragraph has effect in relation to accounting periods beginning on or after 1st April 2000.'.
Mr Andrew Smith
375
Schedule 30, page 508, line 43, leave out from 'to' to 'as' in line 44 and insert 'another company ("the recipient company"),'.
Mr Andrew Smith
376
Schedule 30, page 508, line 50, leave out 'UK' and insert 'recipient'.
Mr Andrew Smith
377
Schedule 30, page 508, line 52, leave out 'UK' and insert 'recipient'.
Mr Andrew Smith
398
Schedule 30, page 509, line 13, at end insert
'Life assurance companies with overseas branches: restriction of credit
12A.(1) Amend section 804A of the Taxes Act 1988 (overseas life assurance business: restriction of credit) as follows.
(2) For subsection (1) (application of subsection (2)) substitute
"(1) Subsection (2) below applies where credit for tax
(a) which is payable under the laws of a territory outside the United Kingdom in respect of insurance business carried on by a company through a branch or agency in that territory, and
(b) which is computed otherwise than wholly by reference to profits arising in that territory,
is to be allowed (in accordance with this Part) against corporation tax charged under Case I or Case VI of Schedule D in respect of the profits, computed in accordance with the provisions applicable to Case I of Schedule D, of life assurance business or any category of life assurance business carried on by the company in an accounting period (in this section referred to as "the relevant profits").
(1A) For the purposes of paragraph (b) of subsection (1) above, the cases where tax payable under the laws of a territory outside the United Kingdom is "computed otherwise than wholly by reference to profits arising in that territory" are those cases where the charge to tax in that territory falls within subsection (1B) below.
(1B) A charge to tax falls within this subsection if it is such a charge made otherwise than by reference to profits as (by disallowing their deduction in computing the amount chargeable) to require sums payable and other liabilities arising under policies to be treated as sums or liabilities falling to be met out of amounts subject to tax in the hands of the company."
(3) In subsection (3) (the shareholders' share of the overseas tax) for the definition of A (the amount of profits chargeable under section 441) substitute
"A is an amount equal to the amount of the relevant profits before making any deduction authorised by subsection (5) below;".
(4) In subsection (5) (relaxation of rule in section 795(2)(a) against deducting foreign tax in computing the profits of the overseas life assurance business) for "the profits of the overseas life assurance business" substitute "the relevant profits".
(5) In consequence of the amendments made by this paragraph, the sidenote to the section becomes "Life assurance companies with overseas branches etc: restriction of credit."
(6) This paragraph has effect in relation to accounting periods beginning on or after 1st April 2000.'.
Mr Andrew Smith
399
Schedule 30, page 509, line 13, at end insert
'Allocation of foreign tax to different categories of insurance business
12B.(1) After section 804A of the Taxes Act 1988 insert