Amendments proposed to the Finance Bill - continued	House of Commons
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Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire

235

Schedule     23,     page     329,     line     18,     leave out from beginning to end of line 22 and insert—

    '(1)   Relief shall be given for the accounting period or periods in which, applying generally accepted accounting principles, the employing company would recognise an expense or a provision against a future expense (in either case "the accounting expense") if—

(a)	the employing company were to expend a sum as a payment to the recipient at the time that the recipient exercised the option; and

(b)	the amount of such sum were equal to the total amount of relief available under this Part.

    (2)   The amount of any relief available in any accounting period shall equal the amount of any corresponding accounting expense which would have been recognised for that period.

    (3)   Where relief has been given under this Part in respect of an option which subsequently lapses or is cancelled without being exercised then—

(a)

where the option lapses without any payment being made in money or money's worth, the employing company shall be deemed to have received profits or gains chargeable to tax under Case VI of Schedule D in the period in which such lapse occurs of an amount equal to the deductions claimed in respect of that option for prior periods; and

(b)

in any other case, the employing company shall be deemed to have received profits or gains chargeable to tax under Case VI of Schedule D in the period in which such lapse occurs of an amount equal to the deductions claimed in respect of that option for prior periods, less the amount of money or money's worth given in consideration for the lapse of the option.'.

   

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

233

Schedule     23,     page     329,     line     18,     leave out 'The relief' and insert 'Relief under paragraph 15 (amount of relief on exercise)'.

   

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

234

Schedule     23,     page     329,     line     19,     at end insert—

    '(1A)   Relief under paragraph 14A (amount of relief on grant) is given for the accounting period in which the option is granted.'.

   

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

231

Schedule     23,     page     329,     line     23,     leave out from beginning to end of line 7 on page 332.

   

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

224

Schedule     23,     page     333,     line     10,     after 'shares', insert 'and, in a case where the shares are acquired under an employee share scheme, corporation tax shall not be chargeable on any amount paid or payable by the employing company in respect of the participation of the employee in that scheme.'.

   

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

237

Schedule     23,     page     334,     line     26,     at end insert—

    "Transfer pricing    29A   Any provision made by any company on the basis of the rules in this Schedule is an arm's length provision for the purposes of Schedule 28AA to the Taxes Act 1988 (provision not at arm's length).'.

   

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

238

Schedule     23,     page     334,     line     41,     after 'shares', insert 'that is not a warrant'.

   

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

239

Schedule     23,     page     334,     line     41,     after 'shares', insert 'including a warrant'.

   

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

240

Schedule     23,     page     334,     line     44,     leave out from 'includes' to end of line 1 on page 335 and insert 'has the same meaning as "securities" in section 420 of the Income Tax (Earnings and Pensions) Act 2003.'.

   

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

241

Schedule     23,     page     335,     line     29,     at end insert 'The award of shares or grant of an option prior to that date shall not prevent relief being given under this Schedule in respect of those shares or that option.'.

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

242

Clause     141,     page     82,     line     8,     at end insert—

    '(1A)   Section 68 of that Act (principal charges to tax) shall be amended as follows:

(a)	in subsection (2)(c) for "the rate applicable to trusts" substitute "the chargeable rate";

(b)	insert a new subsection (8)—

    "(8)   For the purposes of this section the 'chargeable rate' is—

(a)	in respect of a chargeable event occurring before 1st January 2003, the rate applicable to trusts, and

(b)	in respect of any other chargeable event, the average marginal rate of corporation tax of all qualifying companies".'.

   

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

243

Clause     141,     page     82,     line     17,     at end insert—

'(ba)

in subsection (5) insert—

"(dd)

the payment of any sum or transfer of any asset, after 31 December 2002, to the trustees of another trust for the benefit of the same or substantially the same beneficiaries as the trust";'.

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

244

Schedule     24,     page     336,     line     40,     after 'asset', insert 'on trust'.

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

245

Clause     156,     page     93,     line     25,     after 'other', insert '(whether or not section 58(1) applies to the disposal).'.

   

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

246

Clause     156,     page     94,     line     44,     leave out '9th' and insert '16th'.

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

247

Clause     159,     page     96,     line     45,     leave out 'or an eligible beneficiary'.

   

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

248

Clause     159,     page     97,     line     41,     leave out '6th April 2004' and insert '9th April 2003'.

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

249

Clause     161,     page     100,     line     18,     after 'assessment', insert 'or accounting period as defined by the Corporation Tax Acts.

    (8A)   This section shall apply in computing the allowable losses accruing after 9th April 2003 to a company within the charge to corporation tax.'.

   

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

250

Clause     161,     page     104,     line     5,     after 'losses', insert 'but more than one notice satisfying the requirements of this section may be contained in a single document'.

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

208

Clause     162,     page     105,     leave out lines 21 to 39.

   

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

209

Clause     162,     page     105,     line     28,     leave out 'that date' and insert '9th April 2003'.

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

210

Schedule     29,     page     354,     line     16,     at end insert—

    '(3A)   Where any outstanding section 87/89 gains of a settlement are brought into the settlement's Schedule 4C pool by virtue of any provision of this Schedule, they shall thereafter no longer be available for attribution to beneficiaries of that settlement under sections 87(4) or 89(2), nor shall they thereafter be outstanding trust gains of that settlement within the meaning of section 90(2) or (3) on any subsequent occasion to which section 90 might otherwise apply.'.

   

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

212

Schedule     29,     page     355,     line     12,     after 'the', insert 'available capital payments'.

   

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

211

Schedule     29,     page     356,     line     34,     at end insert—

    '(4)   Where in any year gains are attributed under section 87(4) or section 89(2) to beneficiaries who are chargeable to tax within the meaning of paragraph 8(4), the amount so attributed shall in future years thereafter no longer form part of the Schedule 4C pool of any settlement which is a relevant settlement in relation to that pool.'.

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Prepared 3 Jun 2003