Amendment Paper as at
Wednesday 3rd July 2002
CONSIDERATION OF BILL
New Amendments handed in are marked thus *
FINANCE BILL, AS AMENDED
NEW CLAUSES
Stamp duty and stamp duty reserve tax: power to extend exceptions relating to recognised exchanges
Mr Chancellor of the Exchequer
NC20
To move the following Clause:—
'(1) The Treasury may by regulations extend the application of the provisions mentioned in subsection (2) to any market (specified by name or by description) that is not a recognised exchange but is prescribed by order under section 118(3) of the Financial Services and Markets Act 2000 (c.8).
(2) The provisions referred to in subsection (1) are—
sections 80A and 80C of the Finance Act 1986 (c.41) (stamp duty: exceptions for sales to intermediaries and for repurchases and stock lending); andsections 88A and 89AA of that Act (stamp duty reserve tax: exceptions for intermediaries and for repurchases and stock lending). (3) In subsection (1) "recognised exchange" means an EEA exchange, a recognised foreign exchange or a recognised foreign options exchange within the meaning of the provisions mentioned in subsection (2).
(4) Regulations under this section may provide for the application of the provisions mentioned in subsection (2) subject to any adaptations appearing to the Treasury to be necessary or expedient.
(5) Regulations under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.'.
Films: restriction of relief to films genuinely intended for theatrical release
Mr Chancellor of the Exchequer
NC21
To move the following Clause:—
'(1) Relief under the following provisions is available only for a film that is genuinely intended for theatrical release—
| (a) | section 40D of the Finance (No.2) Act 1992 (c.48) (election to claim capital allowances for production or acquisition expenditure); |
| (b) | section 41 of that Act (relief for pre-production expenditure); |
| (c) | section 42 of that Act (three year write-off for production or acquisition expenditure); |
| (d) | section 48 of the Finance (No.2) Act 1997 (c.58) (relief for expenditure on production or acquisition of film with total production expenditure of £15 million or less). |
(2) For the purposes of subsection (1)—
| (a) | the relevant intention is the intention at the time the film is completed of the person then entitled to determine how the film is to be exploited; |
| (b) | "theatrical release" means exhibition to the paying public at the commercial cinema; and |
| (c) | a film is not regarded as genuinely intended for theatrical release unless it is intended that a significant proportion of the earnings from the film should be obtained by such exhibition. |
(3) Subject to the following provisions, this section applies to any film—
| (a) | completed on or after 17th April 2002, or |
| (b) | completed before 1st January 2002 but not certified by the Secretary of State before 17th April 2002, |
unless an application for certification was received by the Secretary of State before 17th April 2002.
References in this subsection to certification are to certification of the master version of the film under Schedule 1 to the Films Act 1985 (c.21) as a qualifying film, tape or disc.
(4) This section does not apply to a film completed on or after 17th April 2002 if—
| (a) | it is a drama with an average production expenditure per hour of running time of the completed film greater than £500,000, and |
| (b) | it was commissioned on or before 17th April 2002 and the first day of principal photography was on or before 30th June 2002. |
(5) For the purposes of subsection (4) "drama" does not include—
| (a) | anything in the nature of— |
| (i) | an advertisement or promotional film, |
| (ii) | a discussion programme, news or current affairs programme, quiz show, panel show, variety show or similar entertainment, or |
| (iii) | a training film, or |
| (b) | a film of a live event or of a theatrical or artistic performance given otherwise than for the purpose of being filmed; |
but it includes a documentary involving the dramatic reconstruction of events if the dramatic content forms 50% or more of the running time.
(6) For the purposes of this section—
| (a) | a film is completed at the time when it is first in a form in which it can reasonably be regarded as ready for copies of it to be made and distributed for presentation to the general public; |
| (b) | the production expenditure on a film means the total of all expenditure on the production of the film, whenever incurred and whether or not incurred by the person claiming relief; and |
| (c) | subsections (6A) and (7) of section 48 of the Finance (No.2) Act 1997 (c.58) (production expenditure: exclusion of deferments and treatment of transactions not at arm's length) apply as they apply for the purposes of that section.'. |
Films: restriction of relief for successive acquisitions of the same film
Mr Chancellor of the Exchequer
NC22
To move the following Clause:—
'(1) Relief under section 48 of the Finance (No.2) Act 1997 (c.58) (relief for expenditure on production or acquisition of film with total production expenditure of £15 million or less) in respect of acquisition expenditure is available only in relation to an acquisition—
| (b) | directly from the producer, |
and not in relation to any subsequent acquisition (or in relation to any acquisition within paragraph (a) or (b) other than the first).
(2) For this purpose—
| (a) | "acquisition expenditure" means expenditure to which subsection (3) of section 42 of the Finance (No.2) Act 1992 (c.48) applies (relief for acquisition expenditure); |
| (b) | "acquisition" means acquisition of the master negative of a film, or any master tape or master disc of a film, within the meaning of that section; and |
| (c) | "the producer" means the person who commissions the making of the film and is entitled to control its exploitation. |
(3) This section applies to acquisition expenditure incurred on or after 30th June 2002.
For this purpose when expenditure is incurred shall be determined as for the purposes of section 48 of the Finance (No.2) Act 1997 (c.58) (see subsection (9) of that section).'.
Supplementary charge in respect of ring fence trades: financing costs
Mr Michael Howard
Mr John Bercow
Mr Howard Flight
Mr Christopher Chope
Mr Peter Luff
Sir Robert Smith
'. After section 501A of the Taxes Act 1988 insert—
'. After section 501B of the Taxes Act 1988 insert—
'. Section 92 above shall have effect for a terminal straddling period beginning before 31st March 2005 and ending after that date.'.
'. After section 501AA of the Taxes Act 1988 insert—
(2) For the purposes of subsection (1) above the capital allowance supplement is the amount A + B where A and B are as calculated below—
(4) For the avoidance of doubt, the capital allowances supplement for an accounting period shall not reduce the amount of unrelieved qualifying expenditure carried forward into the following accounting period for the purposes of any provision in the Capital Allowances Act 2001.
(5) Where an accounting period is less than twelve months the capital allowances supplement shall be restricted to the amount given by the following formula—
