Vote Bundle Text (900627-02)

Amendments proposed to the Finance Bill - continued	House of Commons

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Friendly Societies

Mr Edward Davey
Mr John Burnett
Norman Baker
Mr Andrew Stunell

NC2

To move the following Clause:—

'Schedule [Friendly Societies—Tax exempt life or endowment business] (which makes provision about friendly societies) shall have effect.'.

Simplification of taxes: report to Parliament

Mr David Heathcoat-Amory
Mr Richard Ottaway
Mr Oliver Letwin
Mr Howard Flight

NC5

*To move the following Clause:—

'.—The Treasury shall, before the end of the current parliament, submit a report to parliament on options to simplify the UK tax system under the headings of—

(a) indirect taxes,

(b) personal taxes,

NEW SCHEDULE

Mr Edward Davey
Mr John Burnett
Norman Baker
Mr Andrew Stunell

NS1

To move the following Schedule—

'Friendly Societies

Tax exempt life or endowment business

1.—(1) Section 460 of the Taxes Act 1988 (exemption from tax in respect of life or endowment business) shall be amended as follows.

(2) In paragraph (c) of subsection (2), before sub-paragraph (zai) there shall be inserted the following sub-paragraph—

"(yai) where the profits relate to contracts made on or after the day on which the Finance Act 2000 was passed, of the assurance of gross sums under contracts under which the total premiums payable in any period of 12 months exceed £1000 or of the granting of annuities of annual amounts exceeding £156;".

(3) In sub-paragraph (zai) of that paragraph after "passed" there shall be inserted "but before the day on which the Finance Act 2000 was passed".

(4) In subsection (3), for the words "subsection (2)(c)(zai)," in each place where they occur there shall be substituted "subsection (2)(c)(yai), (zai),".

(5) In subsection (4A), for "the Finance Act 1995" there shall be substituted "the Finance Act 2000".

(6) In subsection (4B), after the words "31st March 1996" there shall be inserted "or

(c) in the period beginning with the day on which the Finance Act 2000 was passed and ending on the same day of the year one year later,".

Maximum benefits payable to members

2.—(1) Section 464 of that Act (maximum benefits payable to members) shall be amended as follows.

(2) In subsection (3), for paragraph (zza) there shall be substituted the following two paragraphs—

"(xa) contracts under which the total premiums payable in any period of 12 months exceed £1000; or

(ya) contracts made before the day on which the Finance Act 2000 was passed and under which total premiums payable in any period of 12 months exceed £270; or".

(3) In subsection (4A), for "the Finance Act 1995" there shall be substituted "the Finance Act 2000".

(4) In subsection (4B), after the words "31st March 1996" there shall be inserted "or

(c) in the period beginning with the day on which the Finance Act 2000 was passed and ending on the same day of the year one year later,".

Qualifying policies

3.—(1) This paragraph applies to any policy—

(a) which was issued by a friendly society, or a branch of a friendly society, in the course of tax exempt life or endowment business (as defined in section 466 of the Taxes Act 1988);

(b) was effected by a contract made after 31st August 1987 and before the day on which this Act is passed;

(c) under which the amount payable by way of premium is increased by virtue of a variation made in the period beginning with the day on which this Act is passed and ending on the same day of the year one year later; and

(d) the variation of which is not such as to cause a person to become in breach of the limits in section 464 of the Taxes Act 1988.

(2) Schedule 15 to that Act, in its application to the policy, shall have effect in relation to that variation, with the omission of paragraph 4(3)(a) and the insertion at the end of paragraph 18(2) of the words set out in sub-paragraph (3) below.

(3) Those words are as follows, that is to say, "and as if for paragraph 3(2)(b) above there were substituted—

'(b) subject to sub-paragraph (4) below, the premiums payable under the policy shall be premiums of equal or rateable amounts payable at yearly or shorter intervals—

(i) over the whole of the term of the policy as from the variation, or

(ii) where the premiums are not payable for any period after the person liable to pay them or whose life is insured has attained a specified age, being an age attained at a time not less than ten years after the beginning of the term of the policy, over the whole of the reminder of the period for which premiums are payable.'.".

(4) Subsection (5) of section 540 of that Act shall not apply to such variation of the policy.'.

Mr Andrew Smith

402

Schedule 40, page 554, line 32, column 3, at end insert 'Section 802.'.

Mr Andrew Smith

403

Schedule 40, page 554, line 40, at end insert—

'1989 c. 26.

The Finance Act 1989.

In section 82(1)(a), the words "or foreign tax".'.




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