Vote Bundle Text (920703-02)

Amendments proposed to the Finance Bill, As Amended - continued	House of Commons

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Contingent liabilities under the Private Finance Initiative

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

NC5

To move the following Clause:—

'.—(1) Section 156 of the Finance Act 1998 (c. 36) is amended as follows.

(2) At the end of subsection (4) insert "and to generally accepted accounting practice.".

(3) After subsection (4) insert—

"(4A) The Financial Statement and Budget Report shall include a statement of the aggregate amount of all financial liabilities, actual and contingent, to those persons who are or who will become the owners of assets which are to be made available to or for the benefit of any Department of State and which are to be financed through the Private Finance Initiative.".'.

Statement of liability to income tax

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

NC6

To move the following Clause:—

'. After section 59B of the Taxes Management Act 1970 insert—

"59BA Statement of liability to income tax (1) This section applies to any person (the taxpayer) who is liable to pay income tax.

(2) The Board shall provide to each taxpayer, following the agreement of his assessment to income tax, a statement showing for the year of assessment—

(a)	the taxpayer's total liability to income tax ('income tax liability') for that year;

(b)	the contribution of income tax expressed as a percentage of the total annual tax take for the United Kingdom for the same year of assessment ('the income tax percentage');

(c)	the proportion expressed as a percentage of the total annual tax take for the United Kingdom for the same year of assessment that was allocated to each of the Departments of State listed in subsection (2) below ('the departmental percentage'); and

(d)	the amount in pounds sterling of the taxpayer's income tax liability that is represented for each of the Departments of State listed in subsection (2) below calculated as follows—

Income tax liability x the income tax percentage x the department percentage.

(2) A department percentage shall be provided for each of the following—

(a)	the Department of Health;

(b)	the Department for Transport;

(c)	the Department for Education and Skills;

(d)	the Home Office;

(e)	the Department for Work and Pensions;

(f)	the Department of Trade and Industry;

(g)	the Department for the Environment, Food and Rural Affairs; and

(h)	the Department for Culture, Media and Sport.".'.

Taxation of community amateur sports clubs

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

NC7

To move the following Clause:—

'. After section 508 of the Taxes Act 1988 insert—

"Community amateur sports clubs 508ZA (1) Where—

(a)	a club which has as its object the promotion within the community of amateur sport, physical education or the provision of sports facilities is approved for the purposes of this section by the Secretary of State; and

(b)	the memorandum of association or other similar instrument regulating the functions of the club precludes the direct or indirect payment or transfer to any of its members of any of its income or property by way of dividend, gift, division, bonus or otherwise howsoever by way of profit;

there shall, on a claim in that behalf to the Board, be allowed in the case of the club such exemption from tax as falls to be allowed under section 505 in the case of a charity the whole income of which is applied to charitable purposes.

(2) The condition specified in paragraph (b) of subsection (1) above shall not be deemed not to be complied with in the case of any club by reason only that the memorandum or other similar instrument regulating its functions does not prevent the payment to its members of reasonable remuneration for goods, labour or power supplied, or for services rendered, of reasonable interest for money lent, or for reasonable rent for any premises.

(3) The Secretary of State may by regulations made by statutory instrument specify those classes of amateur sport, physical education and the provision of sports facilities to which the provisions of this section shall apply.".'.

IR35

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

NC8

To move the following Clause:—

'.—(1) Schedule 12 to the Finance Act 2000 (c. 17) (provision of services through an intermediary) is amended as follows.

(2) In Part 2 (the deemed Schedule E payments), after paragraph 7B insert—

"Training Costs

7C (1) The reference in Step Three of the calculation in paragraph 7 to expenses that would have been deductible from the emoluments of the employment includes expenses incurred where the worker attends an external training course relating to his work.

(2) This section has effect for the year 2002-03 and subsequent years of assessment.".'.

Individual's ability to elect to come within corporation tax

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

NC9

To move the following Clause:—

'.—(1) The Taxes Act 1988 shall be amended as follows.

(2) In section 60(1) (assessment on current year basis) for "and section 63A," substitute ", section 63A (overlap profits and overlap losses) and section 70B (individuals electing to come within corporation tax),".

(3) After section 70A (Case V income from land outside UK: corporation tax) insert:

"Individuals electing to come within the charge to corporation tax

70B(1) A qualifying individual may elect for his qualifying profits for any year of assessment to be chargeable to corporation tax and not charged to income tax.

(2) For the purposes of subsection (1) above, a 'qualifying individual' is an individual who is or, but for this section, would be otherwise liable to income tax on the profits of a trade, profession or vocation under Case I or Case II of Schedule D.

(3) For the purposes of subsection (1) above, 'qualifying profits' are profits of the relevant trade, profession or vocation, not exceeding the prescribed amount, retained within such business, and for the avoidance of doubt do not include any gains on which the qualifying individual would be chargeable to capital gains tax under the Taxation of Chargeable Gains Act 1992 (c. 12).

(4) An election under this section shall be made by notice in writing to an officer of the Inland Revenue before the commencement of the year of assessment in question. Each election shall be valid in respect of a single year of assessment only.

(5) Qualifying profits which are the subject of an election under this section shall be deemed to arise to a company whose accounting year commences on the first day of the year of assessment in question and ends on the last day of the year of assessment in question, and which commenced a trade, profession or vocation (or, as the case may be, ceased to carry on such trade, profession or vocation) on the same day as the qualifying individual first commenced that trade, profession or vocation (or, as the case may be, ceased to carry on such trade, profession or vocation).

(6) In applying the provisions of Chapter 2 of Part 10 (loss relief: corporation tax) no account shall be taken of any failure by a qualifying individual to make an election under this section in respect of any year of assessment, and those provisions shall be applied as if there was a continuous period of time in which the relevant trade, profession or vocation were carried on by the same company, starting with the first year of assessment in respect of which an election is made under this section.

(7) Profits of any trade, profession or vocation which are not qualifying profits for the purposes of this section shall be charged to income tax as if no election had been made under this section.

(8) The Treasury may by regulations issued under this section specify:

(a)	the amount of the prescribed amount for the purposes of subsection (3) above;

(b)	what does not does not constitute a retained profit for the purposes of subsection (3) above; and

(c)	such other matters as may be necessary to carry this section into effect.".

(4) This section shall come into effect on a day to be appointed by the Treasury.'.

Attribution of gains to members of non-resident companies

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

NC10

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

NC11

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.'.