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

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'.

   

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

291

Schedule     24,     page     337,     line     16,     at end insert—

    '(5)   For the purposes of sub-paragraphs (3) and (4) above, the making of a contribution to a third party includes the holding of funds to the order of that third party notwithstanding that the funds are never transferred into a bank account in the name of that third party.

    Amount of subsequently allowable deduction    1A     (1)   This paragraph applies where a deduction for an amount of employee benefit contributions is disallowed under paragraph 1 but a deduction becomes available for a subsequent period because of the later provision of qualifying benefits.

    (2)   The amount of deduction available in the subsequent period shall be the sum of—

(a)	the higher of—

(i)	the just and reasonable proportion of the original employee benefit contribution as is attributable to the provision of the qualifying benefits in question, and

(ii)	the amount on which the recipient is subject to income tax (or would be if the conditions specified in paragraph 2(3) below were met); and

(b)	the amount of any NIC charge (if any) arising on the provision of the qualifying benefit in question.

    (3)   A deduction shall be allowed only once in respect of any amount or part amount of any employee benefit contributions and any associated NIC charges (if any).

    (4)   Where more than one person could claim a deduction under this paragraph in respect of any NIC charge it shall, unless the parties agree otherwise, be claimed by the person who employs the recipient at the time that the charge arises.

    (5)   "NIC charge" has the meaning given it in paragraph 2.'.

   

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

292

Schedule     24,     page     337,     line     20,     leave out 'loan' and insert 'a loan which does not give rise to an employment income tax charge'.

   

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

293

Schedule     24,     page     337,     line     26,     leave out 'sub-paragraph (1)(a)' and insert 'this Schedule'.

   

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

294

Schedule     24,     page     339,     line     20,     at end insert—

    '(aa)   in respect of the provision of any benefit which does not give rise to an employment income tax charge or to an NIC charge (as those terms are defined in paragraph 2),'.

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

298

Clause     156,     page     93,     line     41,     leave out from beginning to end of line 10 on page 94.

   

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

299

Clause     156,     page     94,     line     43,     at end insert—

    '(1A)   For each of sections 541(1)(a)(i), 541(1)(b)(i) and 541(1)(c)(i) of the Income and Corporation Taxes Act 1988 substitute—

"(i)

in any case where, immediately before the chargeable event in question, the rights conferred by the policy or contract were vested in a person (other than the orginal policyholder) who had acquired those rights for a consideration in money or money's worth, the sums which would be allowable as a deduction for the purposes of computing a gain pursuant to Section 38 of the Taxation of Chargeable Gains Act 1992 and, in any other case, the total amount previously paid under the policy by way of premiums; and".

    (1B)   For section 543(1)(a)(i) of the Income and Corporation Taxes Act 1988 substitute—

"(i)

in any case where, immediately before the chargeable event in question, the rights conferred by the contract were vested in a person (other than the original policyholder) who had acquired those rights for a consideration in money or money's worth, the sums which would be allowable as a deduction for the purposes of computing a gain pursuant to Section 38 of the Taxation of Chargeable Gains Act 1992 and, in any other case, the total amount previously paid under the contract, whether by way of premiums or as a lump sum consideration, reduced in either case, if before the happening of the event one or more payments have been made on account of the annuity, by the capital element in that payment or payments, determined in accordance with Section 656; and".'.

   

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.'.

Prepared 10 Jun 2003