Amendments proposed to the Finance Bill - continued House of Commons

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Mr Andrew Smith

401

Schedule     30,     page     509,     line     13,     at end insert—

'Interpretation of sections 804A to 804E

     12D.—(1) After section 804E of the Taxes Act 1988 insert—

"Interpretation of sections 804A to 804E.804F. Expressions used in sections 804A to 804E and in Chapter I of Part XII have the same meaning in those sections as in that Chapter."

    (2) The section inserted by sub-paragraph (1)—

      (a) so far as relating to sections 804A and 804B, has effect in relation to accounting periods beginning on or after 1st April 2000; and

      (b) so far as relating to sections 804C to 804E, has effect in relation to periods of account beginning on or after 1st April 2000.'.

   

Mr Andrew Smith

378

Schedule     30,     page     509,     line     44,     leave out 'this Part (including any further application of this section)' and insert 'allowing credit relief under this Part'.

   

Mr Andrew Smith

379

Schedule     30,     page     509,     line     50,     leave out 'or' and insert—

      '(aa) if the income in question is a dividend, in the same accounting period, or'.

   

Mr Andrew Smith

380

Schedule     30,     page     510,     leave out line 1 and insert—

      '(b) in such one or more preceding accounting periods, beginning not more than three years before the accounting period in which the unrelieved foreign tax arises, as result from applying the rules in subsection (2A) below,'.

   

Mr Andrew Smith

381

Schedule     30,     page     510,     leave out line 2 and insert—

    'or partly in one of those ways and partly in each or either of the others.'.

   

Mr Andrew Smith

382

Schedule     30,     page     510,     line     2,     at end insert—

    '(2A) Where any unrelieved foreign tax is to be treated as mentioned in paragraph (b) of subsection (2) above, the rules for determining the accounting periods in question (and the amount of the unrelieved foreign tax to be so treated in relation to each of them) are that the unrelieved foreign tax must be so treated under that paragraph—

    1. that—

      (a) credit for, or for any remaining balance of, the unrelieved foreign tax is allowed against corporation tax in respect of income of a later one of the accounting periods beginning as mentioned in that paragraph,

    before

      (b) credit for any of the unrelieved foreign tax is allowed against corporation tax in respect of income of any earlier such period;

    2. that, before allowing credit for any of the unrelieved foreign tax against corporation tax in respect of income of any accounting period, credit for foreign tax is allowed—

      (a) first for foreign tax in respect of the income of that accounting period, other than unrelieved foreign tax arising in another accounting period; and

      (b) then for unrelieved foreign tax arising in any accounting period before that in which the unrelieved foreign tax in question arises;

    3. that (subject to rule 2 above) credit is allowed for as much as possible of the unrelieved foreign tax.'.

   

Mr Andrew Smith

383

Schedule     30,     page     510,     line     43,     at end insert—

    '(5A) Where (whether by virtue of this subsection or otherwise) an amount of unrelieved foreign tax arising in an accounting period ("period A") falls to be treated under subsection (2) above for the purposes of allowing credit relief under this Part as foreign tax paid in respect of, and computed by reference to, income of another accounting period ("period B") it shall not be so treated for the purpose of any further application of this section, except where period B is the next accounting period after period A.'.

   

Mr Andrew Smith

384

Schedule     30,     page     511,     line     4,     leave out 'another' and insert 'that or any other'.

   

Mr Andrew Smith

385

Schedule     30,     page     511,     line     16,     leave out '806A(2)(b)' and insert '806A(2)(aa) or (b)'.

   

Mr Andrew Smith

386

Schedule     30,     page     511,     line     42,     leave out 'a' and insert 'another'.

   

Mr Andrew Smith

387

Schedule     30,     page     511,     line     43,     leave out 'in a different accounting period'.

   

Mr Andrew Smith

388

Schedule     30,     page     511,     line     44,     after 'that' insert 'other'.

   

Mr Andrew Smith

389

Schedule     30,     page     512,     line     1,     leave out '806A(2)(b)' and insert '806A(2)(aa) or (b)'.

   

Mr Andrew Smith

390

Schedule     30,     page     512,     line     16,     leave out 'a' and insert 'another'.

   

Mr Andrew Smith

391

Schedule     30,     page     512,     line     17,     leave out 'in a different accounting period'.

   

Mr Andrew Smith

392

Schedule     30,     page     512,     line     19,     after 'that' insert 'other'.

   

Mr Andrew Smith

393

Schedule     30,     page     512,     line     26,     at end insert—

      '(aa) which is to be treated as mentioned in paragraph (aa) of that subsection;'

   

Mr Andrew Smith

394

Schedule     30,     page     512,     leave out lines 33 to 35 and insert—

    '(13) Any claim under subsection (11) above must be made not more than—

      (a) six years after the end of the accounting period mentioned in that subsection, or

      (b) if later, one year after the end of the accounting period in which the foreign tax in question is paid.'.

   

Mr Andrew Smith

395

Schedule     30,     page     512,     line     44,     leave out '1st July 2000' and insert '31st March 2001'.

   

Mr Andrew Smith

396

Schedule     30,     page     512,     line     49,     leave out '30th June 2000' and insert '30th March 2001'.

   

Mr Richard Ottaway
Mr David Heathcoat-Amory
Mr Howard Flight

149

Schedule     30,     page     516,     line     20,     leave out '6' and insert '9'.


   

Mr Andrew Smith

404

Schedule     31,     page     518,     leave out lines 32 and 33.

   

Mr Andrew Smith

405

Schedule     31,     page     518,     line     34,     at end insert 'and is a person in whose case the 40 per cent test in section 755D(3) is satisfied; and

      ( ) the other is a person in whose case the 40 per cent test in section 755D(3A) is satisfied.".'.

   

Mr Andrew Smith

406

Schedule     31,     page     519,     line     38,     leave out 'each' and insert 'one'.

   

Mr Andrew Smith

407

Schedule     31,     page     519,     line     39,     leave out 'each' and insert 'that one'.

   

Mr Andrew Smith

408

Schedule     31,     page     519,     line     42,     at end insert—

            '(3A) The 40 per cent test in this subsection is satisfied in the case of one of two persons who, taken together, control a company if that one of them has interests, rights and powers representing—

            (a) at least 40 per cent, but

            (b) not more than 55 per cent,

            of the holdings, rights and powers in respect of which the pair of them fall to be taken as controlling the company.'.

   

Mr Andrew Smith

409

Schedule     31,     page     519,     line     46,     after second 'the' insert 'applicable'.

   

Mr Andrew Smith

410

Schedule     31,     page     520,     line     8,     at beginning insert 'if the person is resident in the United Kingdom,'.

   

Mr Andrew Smith

411

Schedule     31,     page     520,     line     10,     at beginning insert 'if the person is resident in the United Kingdom,'.

   

Mr Andrew Smith

412

Schedule     31,     page     520,     line     38,     at end insert—

    '( ) In determining for the purposes of this section whether one person is connected with another in relation to a company, subsection (7) of section 839 shall be disregarded.'.

   

Mr Andrew Smith

413

Schedule     31,     page     522,     line     14,     at end insert—

    '( ) In sub-paragraph (5) (interpretation of sub-paragraphs (3) to (4B)) after "a reference to a trading company" insert "to which sub-paragraph (5ZA) or (5ZB) below applies.

            (5ZA) This sub-paragraph applies to a trading company".

    ( ) After sub-paragraph (5ZA) insert—

            "(5ZB) This sub-paragraph applies to a trading company if—

            (a) it is a controlled foreign company by virtue of subsection (1A) of section 747; and

            (b) the person who satisfies the requirement in paragraph (c) of that subsection in relation to the company also controls the holding company or superior holding company.".'.


   

Mr Andrew Smith

339

Clause     104,     page     70,     leave out lines 15 to 31 and insert 'either the first condition or the second condition is fulfilled.

    ( ) The first condition is that—

      (a) the accounts of the company as a whole are prepared in a currency other than sterling in accordance with normal accountancy practice; and

      (b) in the case of a company which is not resident in the United Kingdom, the company makes a return of accounts for its branch in the United Kingdom prepared in such a currency in accordance with such practice.

    ( ) The second condition is that—

      (a) the accounts of the company as a whole are prepared in sterling but, so far as relating to the business, they are prepared, using the closing rate/net investment method, from financial statements prepared in a currency other than sterling; or

      (b) in the case of a company which is not resident in the United Kingdom, the company makes a return of accounts for its branch in the United Kingdom prepared in sterling but, so far as relating to the business, it is prepared, using that method, from financial statements prepared in such a currency.'.

 
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Prepared 20 Jun 2000