Gifts of medical supplies and equipment (No. 2)
Mr Michael Howard
Mr John Bercow
Mr Howard Flight
Mr Christopher Chope
Mr Peter Luff
NC2
To move the following Clause:—
'.—(1) Where on or after 1st April 2002 any person ("the donor") makes a gift of relevant goods from trading stock for a relevant purpose then:
| (a) | no amount shall be required to be brought into account as a trading receipt or gain in consequence of the making or receiving of the gift; and |
| (b) | the costs of making and delivering the gift shall be deducted as an expense of the trade of the donor in computing the profits of that trade. |
(2) Where the donor or any person connected with him receives any benefit in money or money's worth attributable to the making of that gift, then for the accounting period in which the benefit is received the donor shall be deemed to be in receipt of income chargeable to tax under Case VI of Schedule D on an amount equal to the higher of—
| (a) | any relief claimed pursuant to subsection (1), and |
| (b) | the amount of the benefit in question. |
(3) The Secretary of State may by order prescribe relevant purposes and relevant goods to have effect for the purposes of this section, either generally or in respect of a given time or situation.
(4) Section 839 of the Taxes Act 1988 (connected persons) applies for the purposes of subsection (2).'.
Community amateur sports clubs to be treated as charities
Mr Michael Howard
Mr John Bercow
Mr Howard Flight
Mr Christopher Chope
Mr Peter Luff
NC3
To move the following Clause:—
'.—(1) The promotion of sport, provision or sports facilities, physical education or healthy recreation by a registered community amateur sports club shall be treated as having a charitable purpose for the purposes of the Taxes Acts with effect from 17th April 2002.
(2) Paragraphs 1, 2, 3, 11, 12, 13, 14 and 15 of Schedule 18 shall have effect from 17th April 2002.'.
Company ceasing to be member of a group
Mr Michael Howard [R]
Mr John Bercow
Mr Howard Flight [R]
Mr Christopher Chope
Mr Peter Luff
NC4
To move the following Clause:—
'.—(1) In subsection (1)(c) of section 179 of the Taxation of Chargeable Gains Act 1992 (company ceasing to be a member of group) for "six" substitute "two".
(2) In subsection (6)(a) of that section for "6" substitute "2".'.
Taper relief: holding period for business assets when roll-over relief on transfer of business assets applies
Mr Michael Howard
Mr John Bercow
Mr Howard Flight
Mr Christopher Chope
Mr Peter Luff
NC5
To move the following Clause:—
'.—(1) After section 162(3) of the Taxation of Chargeable Gains Act 1992 (roll-over relief on the transfer of business) insert—
"(3A) For the purpose of computing any chargeable gain accruing on the disposal of any new asset that is eligible for taper relief under subsection (3) above the qualifying holding period for taper relief shall be deemed to have commenced on the period after 5th April 1998 when the business so transferred under subsection (1) above was held and to have ceased upon the disposal of the new asset.".'.
Arrangements with respect to payment of corporation tax
Mr Michael Howard [R]
Mr John Bercow
Mr Howard Flight [R]
Mr Christopher Chope
Mr Peter Luff
NC6
To move the following Clause:—
'.—(1) After subsection (2)(d) of section 36 of the Finance Act 1998, insert—
| "(da) | may make provision for members of the group of companies to elect to base this corporation tax payment on the previous year's taxable profits;". |
(2) In section 59E(1) of the Taxes Management Act 1970, at end insert—
"such that for a company:
| (a) | payment of corporation tax shall be paid in four annual instalments (for the purposes of this subsection the 'Instalment Date'); |
| (b) | the corporation tax payable on each of the first, second and third Instalment Dates shall be equal to one quarter of the total corporation tax paid by the company in the immediately preceeding year of assessment; |
| (c) | the corporation tax payable on the fourth Instalment Date shall be equal to the aggregate of— |
| (i) | one quarter of the total corporation tax paid by the company in the immediately preceding year of assessment; and |
| (ii) | the difference between the total corporation tax liability of the company concerned for the year of assessment in which the fourth Instalment Date falls and the corporation tax liability of the company in the immediately preceding year of assessment.".'. |
Attribution of gains to members of non-resident companies (No. 2)
Mr Michael Howard
Mr John Bercow
Mr Howard Flight
Mr Christopher Chope
Mr Peter Luff
NC8
To move the following Clause:—
'.—( ) In section 13 of the Taxation of Chargeable Gains Act 1992 (attribution of gains to members of non-resident companies) in subsection (5) omit the word "or" immediately preceding paragraph (d) and at the end of that paragraph insert "; or
| (e) | a chargeable gain accruing on the disposal of an asset held by a company which complies with subsection (2) of section 13A of the Taxes Act 1988 (close investment-holding companies).".'. |
Expensive cars
Mr Michael Howard
Mr John Bercow
Mr Howard Flight
Mr Christopher Chope
Mr Peter Luff
NC9
To move the following Clause:—
'.—(1) In the Capital Allowances Act 2001:
| (a) | in section 74(2)(b), for "£12,000", substitute "£24,000"; |
| (b) | in section 75(1), for "£3,000", substitute "£6,000"; |
| (c) | in section 76(2) and section 76(4), for "£3,000" substitute "£6,000"; |
| (d) | in section 76(3)(a), for "£12,000", substitute "£24,000". |
(2) In section 578A of the Income and Corporation Taxes Act 1988, in subsections (2)(b) and (3), for "£12,000", substitute "£24,000".
(3) This section has effect for accounting periods commencing on or after 1st April 2002.'.
Investment companies and trading companies
Mr Michael Howard
Mr John Bercow
Mr Howard Flight
Mr Christopher Chope
Mr Peter Luff
NC10
To move the following Clause:—
'.—(1) Schedule A1 to the Taxation of Chargeable Gains Act 1992 shall be amended as follows—
(2) In paragraph 6, subparagraphs (1)(a), (1A), (2)(a), (2A), (3)(a), (4), (5) and (6) shall cease to have effect.
(3) In paragraph 6(7), the words in brackets shall cease to have effect.
(4) In paragraph 22(1), the definitions of "trade", "trading company" and "trading group" shall cease to have effect.
(5) For paragraph 6A there shall be substituted—
| "6A(1) | A company does not rank as a qualifying company for the purposes of paragraph 6 by reference to an individual at any time when it is his Private Investment Company; |
| (2) | A Private Investment Company is a company as a whole, or substantially the whole, of whose share capital is held by an individual or persons connected with him; |
| (3) | A company is not a Private Investment Company if, notwithstanding the previous subparagraph, it has five or more full time employees other than the individual concerned in subparagraph (1)." |
(6) This section shall have effect from 6 April 2002.'.
Schedule D Cases I and II
Mr Michael Howard
Mr John Bercow
Mr Howard Flight
Mr Christopher Chope
Mr Peter Luff
NC11
To move the following Clause:—
'.— 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 purpose 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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