Amendments proposed to the Finance Bill - continued House of Commons

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Mr David Heathcoat-Amory
Mr Richard Ottaway
Mr Howard Flight

145

Page     294     [Schedule     13],     leave out lines 15 and 16.

   

Mr David Heathcoat-Amory
Mr Richard Ottaway
Mr Howard Flight

146

Page     294,     line     18     [Schedule     13],     at end add—

    '(3) Subsection (1) shall not prevent the approval of the scheme which contains no requirement to purchase an annuity by a certain age.'.


   

Mr Chancellor of the Exchequer

85

Page     310,     line     24     [Schedule     13],     at end insert—

    'except that, in a case falling within subsection (6) of section 632B of the Taxes Act 1988, the contributions required to be repaid shall be determined in accordance with that subsection (and their repayment shall have the like consequence).'.

   

Mr Chancellor of the Exchequer

86

Page     310,     line     47     [Schedule     13],     leave out 'section 632A' and insert 'sections 632A and 632B'.


   

Mr David Heathcoat-Amory
Mr Richard Ottaway
Mr Howard Flight

144

Page     313,     line     34     [Schedule     14],     at end add 'Where an option does not qualify by reason of an error in the scheme pursuant to which it has been granted, but would otherwise have been capable of being a qualifying option pursuant to paragraphs 9 to 17 inclusive of this Schedule, then that error may be corrected and be deemed to have been always corrected from the date of grant of the option.'.


   

Mr David Heathcoat-Amory
Mr Richard Ottaway
Mr Howard Flight

143

Page     314,     line     24     [Schedule     14],     at end add—

    '(4) In the event of the requirements of this Schedule being found not to be met in relation to an option, whether upon enquiry by the Inland Revenue or following an appeal, there shall be no right of action in tort or contract either in favour of or against the relevant company or any employer company.'.


   

Mr David Heathcoat-Amory
Mr Richard Ottaway
Mr Howard Flight

142

Page     316,     line     2     [Schedule     14],     leave out from beginning to end of line 3 and insert 'At any one time there may not be qualifying options in respect of shares in the relevant company over shares with a total value of more than £1,500,000. For the purposes of this paragraph shares shall be valued according to their market value at the time that the option granted over them is granted.'.


   

Mr Chancellor of the Exchequer

61

Page     321,     line     8     [Schedule     14],     leave out 'at some time in the qualification period relating to the relevant shares'.


   

Mr David Heathcoat-Amory
Mr Richard Ottaway
Mr Howard Flight

141

Page     328,     line     21     [Schedule     14],     at end insert—

    '(4) Where pursuant to any provision of this Schedule an individual becomes liable to income tax then notwithstanding any other provision of the Taxes Act 1988, the tax due shall be paid in five equal instalments as follows—

      (a) the first shall be due and payable when, but for the operation of this sub-paragraph and ignoring the operation of Chapter V of Part V of the Taxes Act 1988 (PAYE), that tax would otherwise have been due and payable ("the first payment date");

      (b) the second shall be due and payable on the first anniversary of the first payment date;

      (c) the third shall be due and payable on the second anniversary of the first payment date;

      (d) the fourth shall be due and payable on the third anniversary of the first payment date; and

      (e) the fifth shall be due and payable on the fourth anniversary of the first payment date.'.


   

Mr Chancellor of the Exchequer

62

Page     332,     line     10     [Schedule     14],     leave out 'not'.

   

Mr David Heathcoat-Amory
Mr Richard Ottaway
Mr Howard Flight

139

Page     332,     line     28     [Schedule     14],     leave out 'within 40 days' and insert 'before the first anniversary'.

   

Mr Chancellor of the Exchequer

63

Page     332,     line     36     [Schedule     14],     at end insert—

    'This is subject to sub-paragraph (3).

    (3) Paragraphs 44 to 46 and sub-paragraph (2) of this paragraph do not apply if the amount chargeable under section 135 of the Taxes Act 1988 on the exercise of the option would, in the absence of those provisions, be less than the amount so chargeable by virtue of those provisions.'.


   

Mr David Heathcoat-Amory
Mr Richard Ottaway
Mr Howard Flight

140

Page     333,     line     29     [Schedule     14],     leave out 'within 40 days' and insert 'before the first anniversary'.


   

Mr David Heathcoat-Amory
Mr Richard Ottaway
Mr Howard Flight

136

Page     47,     line     10     [Clause     66],     at end insert—

    '(2A) Following subsection (7) add—

    "(7A) Where any individual retires or dies or ceases employment due to ill health, injury or disability, and as a result an asset ceases to be a business asset, then on a subsequent disposal of that asset taper relief shall be applied as if—

      (a) there had been a disposal of a non-business asset which had been acquired for a consideration equal to the market value of the asset at the time it ceased to be a business asset, and which had been acquired two years prior to that time; and

      (b) there had been a disposal of a business asset for a consideration equal to the market value of the asset on the date it ceased to be a business asset.".'.


   

Mr Chancellor of the Exchequer

97

Page     49,     line     8     [Clause     67],     at end insert—

    '( ) After paragraph 22 insert—

        "Qualifying shareholdings in joint venture companies

            23.—(1) This Schedule has effect subject to the following provisions where a company ('the investing company') has a qualifying shareholding in a joint venture company.

            (2) For the purposes of this paragraph a company is a 'joint venture company' if, and only if—

            (a) it is a trading company or the holding company of a trading group, and

            (b) 75% or more of its ordinary share capital (in aggregate) is held by not more than five companies.

            For the purposes of paragraph (b) above the shareholdings of members of a group of companies shall be treated as held by a single company.

            (3) For the purposes of this paragraph a company has a 'qualifying shareholding' in a joint venture company if—

            (a) it holds more than 30% of the ordinary share capital of the joint venture company, or

            (b) it is a member of a group of companies, it holds ordinary share capital of the joint venture company and the members of the group between them hold more than 30% of that share capital.

            (4) For the purpose of determining whether the investing company is a trading company—

            (a) any holding by it of shares in the joint venture company shall be disregarded, and

            (b) it shall be treated as carrying on an appropriate proportion—

                (i) of the activities of the joint venture company, or

                (ii) where the joint venture company is the holding company of a trading group, of the activities of that group.

            This sub-paragraph does not apply if the investing company is a holding company.

            (5) For the purpose of determining whether the investing company is a holding company—

            (a) any holding by it of shares in the joint venture company shall be disregarded, and

            (b) it shall be treated as carrying on an appropriate proportion of the activities—

                (i) of the joint venture company, or

                (ii) where the joint venture company is the holding company of a trading group, of that group.

            This sub-paragraph does not apply if the joint venture company is a 51 per cent subsidiary of the investing company.

            (6) For the purpose of determining whether a group of companies is a trading group—

            (a) every holding of shares in the joint venture company by a member of the group having a qualifying shareholding in that company shall be disregarded, and

            (b) each member of the group having such a qualifying shareholding shall be treated as carrying on an appropriate proportion of the activities—

                (i) of the joint venture company, or

                (ii) where the joint venture company is the holding company of a trading group, of that group.

            This sub-paragraph does not apply if the joint venture company is a member of the group.

            (7) In sub-paragraphs (4)(b), (5)(b) and (6)(b) above 'an appropriate proportion' means a proportion corresponding to the percentage of the ordinary share capital of the joint venture company held by the investing company or, as the case may be, by the group member concerned.

            (8) The following shall be treated as having a relevant connection with each other—

            (a) the investing company;

            (b) the joint venture company;

            (c) any company having a relevant connection with the investing company;

            (d) any company having a relevant connection with the joint venture company by virtue of being—

                (i) a 51 per cent subsidiary of that company, or

                (ii) a member of the same commercial association of companies.

            (9) The acquisition by the investing company of the qualifying shareholding shall not be treated as a relevant change of activity for the purposes of paragraph 11 above.

            (10) For the purposes of this paragraph 'ordinary share capital' has the meaning given by section 832(1) of the Taxes Act.".'.

 
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