S.C.H.

Amendment Paper as at
Thursday 29th June 2000

STANDING COMMITTEE H

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

454

Clause     149,     page     114,     line     40,     leave out from 'in' to 'accounts' in line 41 and insert 'accordance with generally accepted principles of accounting'.

   

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

455

Clause     149,     page     114,     line     43,     leave out from beginning to end of line 7 on page 115 and insert—

    '(2) Following the relevant account date and no later than the relevant publication date the following steps are to take place:

(a) the Treasury shall send the accounts to the Comptroller and Auditor General;

(b) the Comptroller and Auditor General shall examine and certify the accounts, issue a report on them and return the certified accounts and report to the Treasury; and

(c) the Treasury shall lay the certified accounts and the report before each House of Parliament.

    (3) In subsection (2) above "the relevant account date" is the last day of the financial year to which the accounts in question relate and the "relevant publication date" is the date by which a company would be required to file its accounts with Companies House in respect of an accounting period which ended on the relevant account date.

    (4) The Treasury shall also publish the certified accounts and report in an electronic form capable of access by members of the public.'.

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NEW CLAUSES

Offence of fraudulent evasion of income tax

   

Mr Andrew Smith

NC3

To move the following Clause:—

    '.—(1) A person commits an offence if he is knowingly concerned in the fraudulent evasion of income tax by him or any other person.

    (2) A person guilty of an offence under this section is liable—

(a) on summary conviction, to imprisonment for a term not exceeding six months or a fine not exceeding the statutory maximum, or both;

(b) on conviction on indictment, to imprisonment for a term not exceeding seven years or a fine, or both.

    (3) This section applies to things done or omitted on or after 1st January 2001.'.

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Further provisions about share options

   

Mr Andrew Smith

NC4

To move the following new Clause:—

    '.—(1) In Chapter IV of Part V of the Taxes Act 1988 (provisions relating to the Schedule E charge: other exemptions and reliefs), after section 187 insert—

"Contributions in respect of share option gains

Relief for contributions in respect of share option gains.

187A.—(1) Where a person ("the earner") is chargeable to tax under section 135 on a gain, relief is available under this section if— (a) an agreement has been entered into allowing the secondary contributor to recover from the earner the whole or part of any secondary Class 1 contributions in respect of the gain, or (b) an election is in force which has the effect of transferring to the earner the whole or part of the liability to pay secondary Class 1 contributions in respect of the gain.     (2) The amount of the relief is the total of— (a) any amount that, in pursuance of any such agreement as is mentioned in subsection (1)(a), is recovered in respect of the gain by the secondary contributor not later than 60 days after the end of the year of assessment in which occurred the event giving rise to the charge to tax under section 135; and (b) the amount of any liability in respect of that gain that, by virtue of any such election as is mentioned in subsection (1)(b), has become the earner's liability.     (3) Where notice of withdrawal of approval of any such election is given, relief under subsection (2)(b) is limited to so much of the earner's liability in respect of the gain as is met before the end of the 60th day after the end of the year of assessment in which occurred the event giving rise to the charge under section 135.     (4) Relief under this section shall be given by way of deduction from the amount of the gain on which the earner is chargeable to tax under section 135.     (5) Any such deduction does not affect the amount of the gain for the purposes of— (a) section 120(4) of the Taxation of Chargeable Gains Act 1992 (amount treated as consideration for acquisition of shares), or (b) section 4(4)(a) of the Contributions and Benefits Act (amount treated as remuneration for contributions purposes).     (6) The agreements and elections referred to in this section are those having effect under paragraph 3A or 3B of Schedule 1 to the Contributions and Benefits Act.     References to approval in relation to an election are to approval by the Inland Revenue under paragraph 3B of that Schedule.     (7) In this section— 'the Contributions and Benefits Act' means the Social Security Contributions and Benefits Act 1992 or the Social Security Contributions and Benefits (Northern Ireland) Act 1992; and 'secondary Class 1 contributions' and 'secondary contributor' have the same meaning as in that Act.".

    Section 187A inserted by this subsection applies to any agreement or election having effect as mentioned in subsection (6) of that section, whether made before or after the passing of this Act.

    (2) Section 203FB of the Taxes Act 1988 (PAYE: gains from share options) is amended as follows—

(a) in subsections (2) and (3), for "subsection (7)" substitute "subsection (6A)";

(b) after subsection (6) insert—

    "(6A) Where section 203F has effect in accordance with subsection (2) or (3) above, subsection (3) of section 203F shall apply as if the reference in that subsection to the amount of income likely to be chargeable to tax under Schedule E in respect of the provision of the asset were a reference to the amount on which tax is likely to be chargeable by virtue of section 135 in respect of the event in question, reduced by the amount of any relief likely to be available under section 187A.";

(c) in subsection (7) for "any of the preceding provisions of this section" substitute "subsection (4) or (5) above" and for "section 135, 140A or 140D" substitute "section 140A or 140D".

    These amendments apply where the event giving rise to the charge to tax occurs after the passing of this Act.

    (3) In section 136(6) of the Taxes Act 1988 and section 85(1) of the Finance Act 1988 (duty to deliver particulars relating to share options, etc. within 30 days after end of year of assessment), for "30 days" substitute "92 days".

    These amendments apply where the event giving rise to the duty to deliver particulars occurs on or after 6th April 2000.

    (4) After section 136(6) of the Taxes Act 1988 add—

    "(7) A body corporate is not obliged to deliver particulars under subsection (6) above which it has already given in a notice under paragraph 2 of Schedule 14 to the Finance Act 2000 (enterprise management incentives: notice required for option to be qualifying option).

    In other respects the obligations imposed by that subsection and that paragraph are independent of each other.

    (8) The duty of a body corporate under subsection (6) above to deliver particulars of any matter includes a duty to deliver particulars of any secondary Class 1 contributions payable in connection with that matter that—

(a) are recovered as mentioned in section 187A(2)(a), or
(b) are met as mentioned in section 187A(3).

    In this subsection 'secondary Class 1 contributions' has the same meaning as in section 187A.".

    Section 136(8) inserted by this subsection applies to any amounts recovered or met as mentioned in section 187A(2)(a) or (3) of the Taxes Act 1988, whether before or after the passing of this Act.'.

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Volunteer expenditure

   

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

NC1

To move the following Clause:—

    '(1) After section 83B of the Taxes Act 1988 there shall be inserted—

"Volunteer expenditure

83C (1) Subsection (2) below applies to where an individual volunteers to assist in the work of a charity and in the course of providing such assistance incurs expenses attributable to the work for which the individual volunteered.     (2) On a claim made in that behalf to an officer of the Board the relevant amount shall be allowed as a deduction in calculating the individual's income for the purposes of income tax for the year of assessment in which the expenses are incurred.     (3) The relevant amount is the amount of the expenses incurred, after deducting any reinbursement for those expenses received by the individual from the charity for whose benefit the expenses were incurred.     (4) In this section a 'charity' has the same meaning as in section 506 and includes each of the bodies mentioned in section 507(1).

    (2) This section has effect in relation to expenses incurred by an individual on or after 6th April 2000.".'.

Prepared 29 Jun 2000