Vote Bundle Text (930515-02)

Amendments proposed to the Finance Bill - continued	House of Commons

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Mr Michael Howard
Mr Howard Flight
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

Schedule 2, page 149, line 26, leave out 'Records' to end of line 27 and insert 'under sub-paragraph (3) above must be made available electronically'.

Mr Michael Howard
Mr Howard Flight
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

Schedule 2, page 152, line 45, at end insert 'see regulation 190 of the Value Added Tax Regulations 1995'.

Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

125

Clause 26, page 22, line 3, leave out subsection (3)

Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

123

Clause 34, page 26, line 23, leave out 'given' and insert 'issued by the taxpayer'.

Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

124

Clause 34, page 26, line 26, leave out 'given' and insert 'issued by the Commissioners.'.

Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

131

Clause 35, page 27, line 13, leave out 'confirmed the decision' and insert 'varied the decision as requested by the applicant'.

Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

132

Clause 35, page 27, line 15, leave out from 'which' to end of line 18 and insert—

'—

(a)	the notice requiring a review issued by the person or his representative in accordance with section 33 is received by the Commissioners, or

(b)	the review is agreed to by the Commissioners as mentioned in section 34(4).'.

Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

120

Clause 36, page 27, line 25, leave out '(including any confirmation under section 35(4))'.

Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

Clause 147, page 85, line 29, leave out 'business of the company' and insert 'company's trade'.

Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

100

Clause 147, page 85, line 32, leave out 'do business' and insert 'engage in trading activities'.

Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

101

Clause 147, page 85, line 33, at end insert—

'(1A) For the purposes of subsection (1)(b) an agent can only be a person who has authority to and does enter into arrangements on behalf of that person's principal which are contractually binding on that principal.'.

Mr Michael Howard
Mr Howard Flight
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

Clause 147, page 85, line 44, leave out paragraph (h) and insert—

'(2A) A building site or construction or installation project constitutes a permanent establishment only if it lasts more than twelve months.'.

Mr Michael Howard
Mr Howard Flight
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

Clause 149, page 89, line 15, at end insert—

'(3A) Where the UK representative of a non-resident company is a person separate from that company it shall be entitled—

(a)	to be indemnified in respect of any liability that it discharges as mentioned in subsection (3)(a) above; and

(b)	to retain, out of any sums otherwise due from it to the non-resident company, or received by it on behalf of the non-resident company, amounts sufficient for meeting any obligations or liabilities that he has under subsection (1) above or has discharged as mentioned in subsection (3)(a) above.

(3B) The obligations relating to the furnishing of information which are imposed by this section on the UK representative in a case where that representative is an independent agent shall not require that representative to do anything except so far as it is practicable for the representative to do so by acting to the best of his knowledge and belief after having taken all reasonable steps to obtain the necessary information.

(3C) Subsection (3B) above shall not have the effect of discharging the non-resident company from any obligation to furnish information in a case where that obligation has been discharged by its UK representative by virtue only of subsection (3B) above.'.

Mr Michael Howard
Mr Howard Flight
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

Clause 149, page 89, line 34, at end insert—

'"independent agent", in relation to a non-resident company, means any person who is the non-resident company's UK representative in respect of any agency from the non-resident company in which he was acting on the non-resident's behalf in an independent capacity; and a person shall not be regarded as acting in an independent capacity on behalf of a non-resident company unless, having regard to its legal, financial and commercial characteristics, the relationship between them is a relationship between persons carrying on independent businesses that deal with each other at arm's length;'.

Mr Michael Howard
Mr Howard Flight
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

Clause 150, page 90, leave out lines 5 to 7.

Mr Michael Howard
Mr Howard Flight
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

92A

Schedule 26, page 344, leave out lines 36 to 38 and insert—

'(c) either—

(i)	the remuneration he receives in respect of the transaction for the provision of the services of a broker to the non-resident company is not less than is customary for that class of business; or

(ii)	he acts on behalf of the non-resident company in relation to the transaction in an independent capacity; and'.

Mr Michael Howard
Mr Howard Flight
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

Schedule 26, page 345, leave out lines 12 and 13 and insert—

'(c) either—

(i)	the remuneration he receives in respect of the transaction for the provision to the non-resident company of investment management services is not less than is customary for that class of business; or

(ii)	he acts on behalf of the non-resident company in relation to the transaction in an independent capacity; and'.

Mr Michael Howard
Mr Howard Flight
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

Schedule 26, page 345, leave out lines 15 to 17.

Mr Michael Howard
Mr Howard Flight
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

Page 92, line 16, leave out Clause 155.

Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

Clause 163, page 106, line 9, at beginning insert 'or would' after the bracket.

Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

Clause 163, page 106, line 11, leave out subsection (2) and insert—

'(2) If, as a result of a tax avoidance scheme, the amount to be brought into account as the proceeds from the event is less than it would otherwise have been, the amount of any balancing allowance to which the taxpayer would otherwise be entitled shall be equal to the amount that (but for the provisions of this section) it would have been if the tax avoidance scheme had not been implemented.'.

Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

Clause 163, page 106, line 17, after 'to', insert 'reduce or'.

Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

Clause 163, page 106, line 19, at end insert 'in full'.

Mr Paul Boateng

Schedule 30, page 360, line 37, at end insert—

'(2) In section 46(5) for "or 45E" substitute ", 45E or 45H".'.

Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

133

*Schedule 33, page 376, line 20, after '444AC(2)', insert 'or section 444AF(2)'.

Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

134

*Schedule 33, page 392, line 36, at end insert—

'444AF:Transfers of business: modifications of s.83(2) (1) This section applies where there is a relevant transfer, under a scheme, of the whole or any part of the business carried on by a mutual insurance company ("the mutual") to a company which has share capital ("the acquiring company").

(2) In any accounting period of the acquiring company section 83(2) shall apply to so much of the amount brought into account as other income by that company as represents the accrued mutual value, but only as it would have applied before the amendments made by the Finance Act 2003, and if the requirements of subsections (4) and (5) below are satisfied in relation to the shares of a company ("the issuing company") which is either—

(a)	the acquiring company; or

(b)	a company of which the acquiring company is a wholly-owned subsidiary.

(3) For the purposes of this section the accrued mutual value is the fair value of the assets of the mutual immediately before the relevant transfer less the value of the liabilities of the mutual ascertained as at that date in accordance with section 5 of the Prudential Sourcebook (Insurers).

(4) Shares in the issuing company must have been offered, under the scheme, to at least 90 per cent. of the persons who immediately before the transfer are members of the mutual.

(5) Under the scheme, the majority of the shares in the issuing company which were in issue immediately after the transfer was made, other than shares which were issued pursuant to an offer to the public, must have been offered to the persons who (at the time of the offer) were—

(a)	members of the mutual;

(b)	persons who were entitled to become members of the mutual; or

(c)	employees, former employees or pensioners of the mutual or of a company which was a wholly-owned subsidiary of the mutual.

(6) For the purposes of this section, a company is a wholly-owned subsidiary of another person ("the parent") if it has no members except the parent and the parent's wholly-owned subsidiaries or persons acting on behalf of the parent or its wholly-owned subsidiaries.

(7) In this section "relevant transfer" means—

a transfer from a company to another person of business consisting of the effecting or carrying out of contracts of insurance which is effected under an insurance business transfer scheme.

(8) In this section—

"contract of insurance" has the meaning given by Article 3(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;

"employee", in relation to a mutual insurance company or its wholly-owned subsidiary, includes any officer or director of the company or subsidiary and any other person taking part in the management of the affairs of the company or subsidiary;

"insurance business transfer scheme" has the same meaning as in Part VII of the Financial Services and Markets Act 2000;

"mutual insurance company" means an insurance company carrying on business without having any share capital;

"pensioner", in relation to a mutual insurance company or its wholly-owned subsidiary, means a person entitled (whether presently or prospectively) to a pension, lump sum, gratuity or other like benefit referable to the service of any person as an employee of the company or subsidiary.

(9) The Treasury may by regulations amend subsection (4) above by substituting a lower percentage for the percentage there mentioned.

(10) The Treasury may by regulations provide that any or all of the references in subsections (4) and (5) above to members shall be construed as references to members of a class specified in the regulations; and different provision may be made for different cases.

(11) The power to make regulations under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.'.