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Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
9
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
10
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
11
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
12
Clause 163, page 106, line 19, at end insert 'in full'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
135
Schedule 30, page 360, leave out lines 26 to 28 and insert—
'(5) Where this section applies, the expenditure is apportioned under section 562(3) (apportionment where property sold with other property) subject to the limitations imposed by this section.'.
Mr Paul Boateng
60
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
136
Schedule 31, page 362, leave out lines 32 and 33 and insert—
'(3) Omit paragraph (a) (person spending less than 20% of total working time on relevant research and development).'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
142
Schedule 33, page 376, line 8, after '(d)', insert 'subject to subsection (2E),'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
145
Schedule 33, page 376, line 8, at end insert 'to the extent that it would be taxable under Schedule D Case I if received by any trading company in respect of a trade other than life assurance business.'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
137
Schedule 33, page 376, line 11, after 'assets', insert 'or other expenditure'.
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
143
Schedule 33, page 376, line 29, at beginning insert 'Subject to subsection (2F),'.
Mr Paul Boateng
159
Schedule 33, page 376, line 30, leave out 'in a period of account'.
Mr Paul Boateng
160
Schedule 33, page 376, line 32, after 'account' insert 'in which the transfer takes place or any earlier period of account'.
Mr Paul Boateng
161
Schedule 33, page 376, line 34, after second 'account' insert 'in which the transfer takes place'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
147
Schedule 33, page 376, line 44, leave out 'the' and insert 'a'.
Mr Paul Boateng
162
Schedule 33, page 376, line 44, leave out 'the' and insert 'any'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
148
Schedule 33, page 376, line 45, leave out 'the' and insert 'that'.
Mr Paul Boateng
163
Schedule 33, page 377, line 2, at end insert—
'(2E) If subsection (2B) above applies in relation to the transfer of all the assets of the company's long term insurance fund in accordance with—
| (a) | an insurance business transfer scheme, or |
| (b) | a scheme which would be such a scheme but for section 105(1)(b) of the Financial Services and Markets Act 2000 (which requires the business transferred to be carried on in an EEA State), |
the reference in that subsection to an amount being deemed to be brought into account for the period of account in which the transfer takes place is to its being so deemed for the period of account ending immediately before the transfer takes place.'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
144
Schedule 33, page 377, line 2, at end insert—
'(2E) Subsection (2)(d) shall not apply to any amount to the extent that is satisfies the conditions—
| (a) | that it would not have been taken into account under subsection (2) but for the amendment by the Finance Act 2003; and |
| (b) | that it arises by reason of compliance with an obligation imposed by one or more of the following— |
| (i) | a transaction carried out before 23rd December 2002 (including a transfer of business sanctioned by the Court prior to that date) |
| (ii) | a transaction carried out at any time for the purposes or in connection with such a transaction. |
(2F) Subsection (2B) shall not apply to a transfer of an asset made pursuant to an obligation imposed by one or more of the following—
| (a) | a transaction carried out before 23rd December 2002 (including a transfer of business sanctioned by the Court prior to that date) |
| (b) | a transaction carried out at any time for the purposes or in connection with such a transaction. |
(2G) Where the terms of a transaction carried out before 23rd December 2002 are varied after that date so as to impose, in relation to any matter relevant to paragraph (d) of subsection (2) or to subsection (2D), obligations which are significantly different from those which existed prior to the variation, then—
| (a) | in a case where the matter is relevant to paragraph (d) of subsection (2), the transaction shall be deemed for the purposes of subsection (2E) not to have been carried out before 23rd December 2002; and |
| (b) | in a case where the matter is relevant to subsection (2D), the transaction shall be deemed for the purposes of subsection (2F) not to have been carried out before 23rd December 2002.'. |
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
138
Schedule 33, page 377, leave out lines 15 and 16.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
139
Schedule 33, page 377, leave out lines 22 to 24.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
149
Schedule 33, page 377, line 32, leave out from beginning to end of line 5 on page 380.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
150
Schedule 33, page 382, line 39, leave out from beginning to end of line 12 on page 383.
Mr Paul Boateng
164
Schedule 33, page 386, leave out lines 41 to 43 and insert 'In arriving at the policy holders' share of chargeable gains accruing to an insurance company under subsection (10) above there is to be ignored—'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
151
Schedule 33, page 387, line 38, leave out from beginning to end of line 9 on page 389.
Mr Paul Boateng
165
Schedule 33, page 389, line 45, leave out 'the purposes of corporation tax' and insert 'all purposes of corporation tax other than determining for the purposes of section 83(2B) of the Finance Act 1989 whether a transfer is brought into account as part of total expenditure.'.
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—
| | "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 7 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. |
| | "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) The Treasury may by regulations amend subsection (4) above by substituting a lower percentage for the percentage there mentioned.
(9) 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.
(10) 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.'.
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