Amendments proposed to the Finance Bill - continued	House of Commons
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Mr Andrew Smith

97

Schedule     21,     page     251,     line     11,     leave out from 'periods' to second 'the' in line 14 and insert ', beginning with the incurring of the expenditure, first ends, namely—

(a)	the period ending with the fifth anniversary of the incurring of the expenditure, or

(b)	the period ending with the day preceding'.

   

Mr Michael Howard
Mr John Bercow
Mr Howard Flight
Mr Christopher Chope
Mr Peter Luff

110

Schedule     21,     page     251,     line     41,     leave out '24%' and insert '100%'.

   

Mr Michael Howard
Mr John Bercow
Mr Howard Flight
Mr Christopher Chope
Mr Peter Luff

103

Schedule     21,     page     252,     line     4,     at end insert—

    '6A   In section 56 subsection 7 shall be replaced with—

    "(1)   The amount of the writing-down allowance to which a person is entitled for a chargeable period is a percentage of the amount by which AQE exceeds TDR, as shown in the Table—

AMOUNT OF WRITING-DOWN ALLOWANCES
Type of AQE	Amount
AQE incurred on the provision of plant and machinery for use wholly for the purposes of a ring fence trade which is not excluded by section 46 (general exclusions)	50%
All other AQE	25%"

    6B   In section 56 after subsection (7) add—

    "(8)   The increased writing-down allowance for ring fence trades will only be available for chargeable periods beginning on or after 1st January 2003.

    (9)   In this section "ring fence trade" has the same meaning as in section 45F.".'.

   

Mr Michael Howard
Mr John Bercow
Mr Howard Flight
Mr Christopher Chope
Mr Peter Luff

109

Schedule     21,     page     252,     line     4,     at end insert—

    'First-year allowances on mothballing costs    6A.—(1)   Omit section 161C(2) and insert—

    "(2)   The decommissioning expenditure is to be treated as first-year qualifying expenditure under section 45F above.".

    (2)   Omit section 163(2)(b) and insert—

"(b)	on decommissioning plant and machinery which has been brought into use for the purposes of a ring fence trade.".

    (3)   In section 163(3), leave out "The" and insert "Where the plant and machinery forms part of an offshore installation or a submarine pipeline, the"

    (4)   In section 163(5), after "1998" insert "except that an offshore installation partly in relevant waters and partly not shall not be excluded from the definition of offshore installation for these purposes only.".'.

   

Mr Michael Howard
Mr John Bercow
Mr Howard Flight
Mr Christopher Chope
Mr Peter Luff

104

Schedule     21,     page     255,     line     30,     at end insert—

    '14   In section 418, subsection (1) shall be replaced with—

    "(1)   The amount of the writing-down allowance to which a person is entitled for a chargeable period in respect of qualifying expenditure is a percentage of the amount by which UQE exceeds TDR, as shown in the Table—

AMOUNT OF WRITING-DOWN ALLOWANCES
Type of UQE	Amount
UQE on the acquisition of a mineral asset	10%
UQE for use wholly for the purposes of a ring fence trade	50%
All other UQE	25%"

    15   In section 418 after subsection (6), add—

    "(7)   The increased writing-down allowance for ring fence trades will only be available for chargeable periods beginning on or after 1st January 2003.

    (8)   In this section "ring fence trade" has the same meaning as in section 45F.".'.

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Mr Michael Howard
Mr John Bercow
Mr Howard Flight
Mr Christopher Chope
Mr Peter Luff

112

*Clause     64,     page     41,     line     43,     leave out '2002' and insert '2003'.

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Mr Michael Howard
Mr John Bercow
Mr Howard Flight
Mr Christopher Chope
Mr Peter Luff

113

*Clause     67,     page     44,     line     38,     at end insert—

    '(1A)   After section 577A of the Taxes Act 1988 insert—

    "577B   Expenditure involving the purchase of favours or honours

    (1)   Following each financial year the Treasury shall report to Parliament on the level of expenditure constituting payments in return for favours incurred during that year by any person subject to tax under Case I or II of Schedule D. The report shall give details of the aggregate amount of such expenditure and the number of persons making payments in return for favours.

    (2)   For the purposes of sub-section (1) above, expenditure constitutes a payment in return for favours if it is a gift or payment, whether allowable or not as a deduction for the purposes of section 74 (general rule as to deductions not allowable), made to a qualifying political party where the person mentioned in subsection (1) above makes that gift or payment with a view to obtaining—

(a)	any change in law (whether by statute, regulation or otherwise); or

(b)	any decision, resolution, ruling or determination by a public body;

where the purpose or one of the purposes of the person mentioned in subsection (1) above was or might be expected to be the obtaining of a benefit (whether that benefit is pecuniary in nature or otherwise).

    (3)   For the purposes of this section, a political party shall be a qualifying political party if it is a political party for the purposes of section 24 of the Inheritance Act 1984 whose leader (determined by reference to its constitutional documents) is a Minister of the Crown at the time of the making of the payment.

    (4)   For the purposes of this section a "public body" means the Crown or any government or public or local authority of the United Kingdom.'.

    (5)   Without prejudice to the generality of sub-paragraph (2)(b) above, a decision, resolution, ruling or determination includes:

(a)	the exemption of motor car racing from any prohibition on payments received directly or indirectly from manufacturers of tobacco products (as defined in the Tobacco Products Duty Act 1979) in return for the placing of advertisements;

(b)	a determination that a pornographer is a fit and proper person to become the proprietor of a newspaper;

(c)	a decision that a person should receive a contract to produce or procure that vaccines are available for a public body;

(d)	a recommendation of the conferment of honours, such as (but not limited to) a knighthood, on a person (or if the person concerned is a company, an officer, employee of that person or a shareholder in that person);

(e)	a decision that a public body will procure goods or services over the internet;

(f)	entry into finance or asset transfer arrangements with any person for the provision by them of any public services, or the construction or renovation of assets to be used in any public service;

(g)	the criminalisation of any traditional rural activity on purported grounds of animal welfare;

(h)	a recommendation of the making of loans (whether by any public body or not) for the purpose of acquiring steel manufacturing concerns in less developed countries;

(i)	lobbying by a Minister of the Crown that a foreign government not prohibit the sale of a media business;

(j)	a decision to permit any person to engage in the supply of energy;

(k)	the conferment of a British passport on any person.

    (6)   This section shall apply to the making of any qualifying payment on or after the day on which this Act is passed.'.

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Mr Michael Howard
Mr John Bercow
Mr Howard Flight
Mr Christopher Chope
Mr Peter Luff

114

*Clause     68,     page     45,     line     39,     leave out subsection (8) and insert—

    '(8)   A qualifying contract shall not be regarded as having an unallowable purpose in regard to a company where, on the application of that company, the Board have notified the company that the Board are satisfied that the contract does not have an unallowable purpose.

    (8A)   Any application under subsection (8) shall be in writing and shall contain particulars of the contract to be entered into by the applicant and the Board may, within 30 days of the receipt of the application or of any further particulars previously required under this subsection, by notice require the applicant to furnish further particulars for the purpose of enabling the Board to make their decision; and if any such notice is not complied with within 30 days or such longer period as the Board may allow, the Board need not proceed further on the application.

    (8B)   The Board shall notify their decision to the applicant within 30 days of receiving the application or, if they give a notice under subsection (8A) above, within 30 days of the notice being complied with.

    (8C)   If the Board notify the applicant that they are not satisfied as mentioned in subsection (8) or do not notify their decision to the applicant within the time required by subsection (8B), the applicant may within 30 days of the notification or of that time require the Board to transmit the application, together with any notice given and further particulars furnished under subsection (8A), to the Special Commissioners; and in that event any notification by the Special Commissioners shall have effect for the purposes of subsection (8) as if it were a notification by the Board.

    (8D)   If any particulars furnished under this section do not fully and accurately disclose all facts and considerations material for the decisions of the Board or the Special Commissioners, any resulting notification that the Board or Commissioners are satisfied as mentioned in subsection (8) shall be void.'.

Prepared 23 May 2002