Amendments proposed to the Finance Bill - continued	House of Commons
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Mr Chancellor of the Exchequer

107

Page     531,     line     8     [Schedule     30],     at end insert—

'Restriction of interest on repayment of tax resulting from carry back of relievable tax

     25A.—(1) Amend section 826 of the Taxes Act 1988 as follows.

    (2) After subsection (7B) insert—

    "(7BB) Subject to subsection (7BC) below, in any case where—
(a) within the meaning of section 806D, any relievable underlying tax or relievable withholding tax arises in an accounting period of a company ("the later period"),
(b) pursuant to a claim under section 806G, the whole or any part of that tax is treated as mentioned in section 806D(4)(c) or (5)(c) in relation to the single related dividend or the single unrelated dividend arising in an earlier accounting period ("the earlier period"), and
(c) a repayment falls to be made of corporation tax paid for the earlier period or of income tax in respect of a payment received by the company in that period,

    then, in determining the amount of interest (if any) payable under this section on the repayment referred to in paragraph (c) above, no account shall be taken of so much of the amount of the repayment as falls to be made as a result of the claim under section 806G, except so far as concerns interest for any time after the date on which any corporation tax for the later period became due and payable (as mentioned in subsection (7D) below).

    (7BC) Where, in a case falling within subsection (7A)(a) and (b) above—

(a) as a result of the claim under section 393A(1), an amount or increased amount of eligible unrelieved foreign tax arises for the purposes of section 806A(1), and
(b) pursuant to a claim under section 806G, the whole or any part of an amount of relievable underlying tax or relievable withholding tax is treated as mentioned in section 806D(4)(c) or (5)(c) in relation to the single related dividend or the single unrelated dividend arising in an accounting period before the earlier period,

    then subsection (7BB) above shall have effect in relation to the claim under section 806G as if the reference in the words after paragraph (c) to the later period within the meaning of that subsection were a reference to the period which, in relation to the claim under section 393A(1), would be the later period for the purposes of subsection (7A) above."

    (3) In subsection (7D) (date on which corporation tax is due and payable for the purposes of certain provisions) after "(7B)" insert ", (7BB)".

    (4) In subsection (7E) (which, for the purposes of certain provisions, restricts the power in section 59A of the Taxes Management Act 1970 to alter the date on which corporation tax is due and payable) after "(7B),", in both places where it occurs, insert "(7BB),".'.

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Mr David Heathcoat-Amory

14

Page     72,     line     23,     leave out Clause 104.

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Mr David Heathcoat-Amory

15

Page     532,     line     3,     leave out Schedule 31.

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Mr Chancellor of the Exchequer

91

Page     533,     line     43     [Schedule     31],     leave out '(3)' and insert '(4)'.

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

155

Page     77,     line     11,     leave out Clause 106.

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Mr Chancellor of the Exchequer

64

Page     79,     line     29     [Clause     107],     leave out from beginning to 'an' in line 30 and insert 'Where'.

   

Mr Chancellor of the Exchequer

65

Page     79,     line     33     [Clause     107],     leave out 'and (b)' and insert—

'(a) subsection (2) below applies if'.

   

Mr Chancellor of the Exchequer

66

Page     79,     line     35     [Clause     107],     at end insert 'and

(b) subsection (2A) below applies if it becomes apparent in such a period that that amount was insufficient.'.

   

Mr Chancellor of the Exchequer

67

Page     79,     line     40     [Clause     107],     at end insert—

    '(2A) For the purpose of making good to the general insurer the loss occasioned by the deficiency, an amount calculated by applying, for a prescribed period, a prescribed rate of interest to the amount of the deficiency shall be treated as an expense of the general insurer's trade in computing for tax purposes the profits of that trade for the later period of account.'.

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Mr David Heathcoat-Amory
Mr Richard Ottaway
Mr Howard Flight

152

Page     80,     line     4     [Clause     107],     leave out 'such descriptions of general insurer as may be prescribed:' and insert ';

    (i) such descriptions of general insurer as may be prescribed: or

    (ii) a general insurer who elects to be subject to an arrangement prescribed in regulations which appear to the Board to be appropriate;'.

   

Mr Chancellor of the Exchequer

68

Page     80,     line     7     [Clause     107],     leave out 'and (2)' and insert 'to (2A)'.

   

Mr Chancellor of the Exchequer

69

Page     80,     line     8     [Clause     107],     after 'excessive' insert 'or insufficient'.

   

Mr Chancellor of the Exchequer

70

Page     80,     line     9     [Clause     107],     after 'excess' insert 'or deficiency'.

   

Mr David Heathcoat-Amory
Mr Richard Ottaway
Mr Howard Flight

153

Page     80,     line     10     [Clause     107],     leave out 'prescribed' and insert 'commercial'.

   

Mr David Heathcoat-Amory
Mr Richard Ottaway
Mr Howard Flight

154

Page     80,     line     10     [Clause     107],     after 'rate', insert 'or rates'.

   

Mr Chancellor of the Exchequer

71

Page     80,     line     12     [Clause     107],     leave out 'and (2) ' and insert 'to (2A)'.

   

Mr Chancellor of the Exchequer

72

Page     80,     line     17     [Clause     107],     after 'receipt' insert 'or expense'.

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Mr Chancellor of the Exchequer

73

Page     81,     line     39     [Clause     107],     leave out 'above is treated as a receipt' and insert 'or (2A) above is treated as a receipt or expense'.

   

Mr Chancellor of the Exchequer

74

Page     81,     line     47     [Clause     107],     after '(2)' and insert 'or (2A)'.

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Mr Chancellor of the Exchequer

75

Page     82,     line     4     [Clause     107],     leave out 'and (2)' and insert 'to (2A)'.

   

Mr Chancellor of the Exchequer

76

Page     82,     line     7     [Clause     107],     leave out 'period of account mentioned in paragraph (a) of' and insert 'first period of account mentioned in'.

   

Mr Chancellor of the Exchequer

77

Page     82,     line     9     [Clause     107],     leave out 'paragraph (b) of'.

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Mr Chancellor of the Exchequer

78

Page     89,     line     35     [Clause     111],     after 'etc)' insert '—

(a) after subsection (2) insert—

    "(2A) A declaration under section 481(5)(k)(i) must contain—
(a) in a case falling within section 481(4)(a), the name and principal residential address of the individual who is beneficially entitled to the interest or, where two or more individuals are so entitled, of each of them;
(b) in a case falling within section 481(4)(b), the name and principal residential address of each of the partners."; and

(b)''.

   

Mr Chancellor of the Exchequer

79

Page     89,     line     35     [Clause     111],     at end insert—

    '( ) In section 477A of the Taxes Act 1988 (building societies: regulations for deduction of tax), after subsection (2) insert—

    "(2A) Without prejudice to the generality of subsection (2)(a) above, regulations under subsection (1) above may make provision with respect to the furnishing of information to or by building societies corresponding to any provision that is made by, or may be made under, section 482 with respect to the furnishing of information to or by deposit-takers.".'.

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Mr Chancellor of the Exchequer

108

Page     97,     line     13     [Clause     122],     at end insert—

    '(1A) In subsection (2) (instruments on which stamp duty not chargeable) in paragraph (a) for "to another" substitute "("the transferor") to another ("the transferee")".

    (1B) In that subsection, after paragraph (b) insert—

    "unless at the time the instrument is executed arrangements are in existence by virtue of which at that or some later time any person has or could obtain, or any persons together have or could obtain, control of the transferee but not of the transferor.".'.

   

Mr Chancellor of the Exchequer

109

Page     97     [Clause     122],     leave out lines 23 to 29.

   

Mr Chancellor of the Exchequer

110

Page     97,     line     37     [Clause     122],     at end insert '; but this is subject to subsection (5A).

    (5A) In determining for the purposes of this section whether a body corporate is the parent of the transferor, paragraphs 5(3) and 5B to 5E of Schedule 18 to the Income and Corporation Taxes Act 1988 shall not apply for the purposes of paragraph (b) or (c) of subsection (2B).'.

Prepared 19 Jul 2000