Amendment Paper as at
Tuesday 18th July 2000

CONSIDERATION OF BILL

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New Amendments handed in are marked thus *

FINANCE BILL

NOTE

The Amendments have been arranged in accordance with the Order to be proposed by Mr Chancellor of the Exchequer.

Mr Chancellor of the Exchequer That the Bill, as amended, be considered in the following Order: New Clauses, amendments relating to Clauses 1 to 6, Schedule 1, Clauses 7 to 17, Schedule 2, Clauses 18 to 22, Schedule 3, Clause 23, Schedule 4, Clause 24, Schedule 5, Clauses 25 to 30, Schedules 6 and 7, Clauses 31 to 47, Schedule 8, Clause 48, Schedule 9, Clauses 49 to 57, Schedule 10, Clauses 58 and 59, Schedule 11, Clause 60, Schedule 12, Clause 61, Schedule 13, Clause 62, Schedule 14, Clause 63, Schedules 15 and 16, Clause 64, Schedule 17, Clause 65, Schedule 18, Clauses 66 to 68, Schedule 19, Clause 69, Schedules 20 and 21, Clauses 70 to 82, Schedule 22, Clauses 83 to 87, Schedule 23, Clauses 88 to 91, Schedule 24, Clause 92, Schedules 25 and 26, Clauses 93 to 97, Schedule 27, Clause 98, Schedule 28, Clauses 99 to 102, Schedule 29, Clause 103, Schedule 30, Clause 104, Schedule 31, Clauses 105 to 116, Schedule 32, Clause 117, Schedule 33, Clauses 118 to 128, Schedule 34, Clauses 129 to 132, Schedule 35, Clause 133, Schedule 36, Clauses 134 to 139, Schedule 37, Clause 140, Schedule 38, Clauses 141 to 146, Schedule 39 and Clauses 147 to 151, New Schedules, amendments relating to Clauses 152 and 153, Schedule 40 and Clause 154.

NEW CLAUSES

Stamp duty: exceptions from section 119

   

Mr Chancellor of the Exchequer

NC3

To move the following Clause:—

    '.—(1) Section 119 does not apply by virtue of paragraph (a) of subsection (1) of that section in any of the following cases (any reference in this section to A or B being taken as a reference to the person referred to as A or B, as the case may be, in that subsection).

    (2) Case 1 is where B holds the estate or interest as nominee or bare trustee for A.

    (3) Case 2 is where A is to hold the estate or interest as nominee or bare trustee for B.

    (4) Case 3 is where B holds the estate or interest as nominee or bare trustee for some other person and A is to hold it as nominee or bare trustee for that other person.

    (5) Case 4 is where (in a case not falling within subsection (2) or (4) above)—

(a) the transfer or vesting is a conveyance or transfer out of a settlement in or towards satisfaction of a beneficiary's interest;

(b) the beneficiary's interest is not an interest acquired for money or money's worth; and

(c) the conveyance or transfer is a distribution of property in accordance with the provisions of the settlement.

    (6) Case 5 is where (in a case not falling within subsection (3) above) A—

(a) is a person carrying on a business which consists of or includes the management of trusts; and

(b) is to hold the estate or interest as trustee acting in the course of that business.

    (7) Case 6 is where (in a case not falling within subsection (3) above) A is to hold the estate or interest as trustee and, apart from section 839(3) of the Taxes Act 1988 (trustees as connected persons), would not be connected with B.

    (8) Case 7 is where—

(a) B is a company;

(b) the transfer or vesting is, or is part of, a distribution of assets (whether or not in connection with the winding up of the company); and

(c) the estate or interest was acquired by B by virtue of an instrument which is duly stamped.

    (9) This section shall be construed as one with the Stamp Act 1891.

    (10) This section applies to instruments executed after the day on which this Act is passed.'.

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Stamp duty: relief for certain instruments executed before this Act has effect

   

Mr Chancellor of the Exchequer

NC4

To move the following Clause:—

    '.—(1) This section applies to an instrument of any of the following descriptions executed in the period beginning with 22nd March 2000 and ending with the day on which this Act is passed—

(a) an instrument transferring or vesting an estate or interest in land in such circumstances as are mentioned in section 119 (transfer of land to connected company), in a case specified in section (Stamp duty: exceptions from section 119) (excepted cases);

(b) a conveyance or transfer of an estate or interest in land, or a lease of land, to a qualifying landlord within the meaning of section 129 (transfers to registered social landlords, etc.) from a qualifying transferor within subsection (6)(c), (d), (e), (f) or (h) of that section.

    (2) If the instrument is not stamped until after the day on which this Act is passed, the law in force at the time of its execution shall be deemed for stamp duty purposes to be that which would have applied if it had been executed after that day.

    (3) If the Commissioners are satisfied that—

(a) the instrument was stamped on or before the day on which this Act is passed,

(b) stamp duty was chargeable in respect of it, and

(c) had it been stamped after that day no stamp duty, or less stamp duty, would have been chargeable,

    they shall pay to such person as they consider appropriate an amount equal to the duty (and any interest or penalty) that would not have been payable if the law in force at the time of execution of the instrument had been that which would have applied had it been executed after that day.

    (4) Any such payment must be claimed before 1st April 2001.

    (5) Entitlement to a payment is subject to compliance with such conditions as the Commissioners may determine with respect to the production of the instrument, to its being stamped so as to indicate that it has been produced under this section or to other matters.

    (6) For the purposes of section 10 of the Exchequer and Audit Departments Act 1866 (Commissioners to deduct repayments from gross revenues) any amount paid under this section shall be treated as a repayment.

    (7) This section shall be construed as one with the Stamp Act 1891.'.

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Stamp duty and stamp duty reserve tax: transfers between depositary receipt systems and clearance systems

   

Mr Chancellor of the Exchequer

NC5

To move the following Clause:—

    '.—(1) In Part III of the Finance Act 1986 (stamp duty), after section 72 insert—

"Transfers between depositary receipt system and clearance system

Transfers between depositary receipt system and clearance system.

72A.—(1) Where an instrument transfers relevant securities of a company incorporated in the United Kingdom between a depositary receipt system and a clearance system— (a) the provisions of section 67(2) to (5) or, as the case may be, section 70(2) to (5) above shall not apply, and (b) the stamp duty chargeable on the instrument is £5.     (2) A transfer between a depositary receipt system and a clearance system means a transfer— (a) from (or to) a company that at the time of the transfer falls within section 67(6) above, and (b) to (or from) a company that at that time falls within section 70(6) above.     (3) This section does not apply to a transfer from a clearance system (that is, from such a company as is mentioned in subsection (2)(b) above) if at the time of the transfer an election is in force under section 97A below in relation to the clearance services for the purposes of which the securities are held immediately before the transfer.".

    (2) In Part IV of the Finance Act 1986 (stamp duty reserve tax), after section 97A insert—

"Transfer between depositary receipt system and clearance system.

97B.—(1) There shall be no charge to tax under section 93 or 96 above where securities are transferred between a depositary receipt system and a clearance system.     (2) A transfer between a depositary receipt system and a clearance system means a transfer— (a) from (or to) a company which at the time of the transfer falls within section 67(6) above, and (b) to (or from) a company which at that time falls within section 70(6) above.     (3) This section does not apply to a transfer from a clearance system (that is, from such a company as is mentioned in subsection (2)(b) above) if at the time of the transfer an election is in force under section 97A above in relation to the clearance services for the purposes of which the securities are held immediately before the transfer.".

    (3) In sections 67(9), 70(9), 95(1) and 97(1) of the Finance Act 1986 (transfers between depositary receipt systems or between clearance systems), the words "and is resident in the United Kingdom" and "and is so resident" shall cease to have effect.

    (4) In section 97A of that Act (clearance services: election for alternative system of charge), after subsection (12) add—

    "(13) Nothing in section 70(9) or 97(1) above has effect to prevent a charge to stamp duty or stamp duty reserve tax arising—
(a) on a transfer to which subsection (5) above applies, or
(b) on a deemed transfer under subsection (11) above.".

    (5) The amendments in this section have effect as follows—

(a) subsection (1), and subsections (3) and (4) as they apply for stamp duty purposes, apply in relation to instruments executed after the day on which this Act is passed;

(b) subsection (2), and subsections (3) and (4) as they apply for the purposes of stamp duty reserve tax, apply where the securities are transferred after that day.'.

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Corporation tax on certain insurance company profits

   

Mr Michael Jack

NC1

To move the following Clause:—

    '(1) Section 88A of the Finance Act 1989 (lower corporation tax rate on certain insurance company profits) is amended as follows.

    (2) In subsection (1) for the words "lower rate income", substitute "lower rate income or gains".

    (3) In subsection (3) for the words from the beginning to "following descriptions", substitute—

"(3) In this section, references to a company's lower rate income or gains for any accounting period are references to all of the chargeable gains of its basic life assurance and general annuity business for the period, and to so much of the income of that business for the period as consists in income of any of the following descriptions—".

    (4) In subsections (4), (5) and (6), for the words "lower rate income", in each place where they occur, substitute "lower rate income or gains".

    (5) This section has effect for the financial year 2000 and subsequent years.'.

Prepared 18 Jul 2000