S.C.B.
Amendment Paper as at
Thursday 12th June 2003
STANDING COMMITTEE B
FINANCE BILL
(Except Clauses 1, 4, 5, 9, 14, 22, 42, 56, 57, 124, 130 to 135, 138, 139, 148 and 184 and Schedules 5, 6, 19 and 25, and any new Clauses and Schedules tabled by Friday 9th May 2003 relating to excise duty on spirits or R&D tax credits for oil exploration.)
NOTE
The Amendments have been arranged in accordance with the Order of the Committee [15th May 2003], as amended.
Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
251
Clause 136, page 81, line 7, at end insert—
'(2A) A payment equivalent to a weekly amount not exceeding twice the amount of the national minimum wage in force from time to time shall be assumed to be reasonable for the purposes of subsection (1).'.
Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
213
Schedule 23, page 323, line 34, after 'company', insert 'or another group company'.
Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
214
Schedule 23, page 324, line 2, after 'company', insert 'or another group company'.
Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
215
Schedule 23, page 324, line 7, leave out 'the company mentioned in sub-paragraph (1)' and insert 'the company by whom the employee is employed or if that company is not the company for which the employee actually works, the company for which he actually works.'.
Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
216
Schedule 23, page 324, line 22, after 'business', insert ', or the part of the business'.
Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
220
Schedule 23, page 324, line 23, after 'company', insert 'or by a group company'.
Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
217
Schedule 23, page 324, line 25, after 'A', insert 'part of a'.
Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
218
Schedule 23, page 324, line 25, leave out 'or to the extent that,'.
Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
219
Schedule 23, page 324, line 27, leave out 'the business' and insert 'that part'.
Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
225
Schedule 23, page 324, leave out line 30.
Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
226
Schedule 23, page 324, leave out lines 31 to 38.
Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
227
Schedule 23, page 325, leave out lines 6 to 7.
Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
221
Schedule 23, page 325, line 11, leave out 'parent' and insert 'group'.
Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
228
Schedule 23, page 325, line 26, leave out 'award' and insert 'shares'.
Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
229
Schedule 23, page 325, line 35, leave out from 'to' to end of line 41 and insert 'the amount on which the recipient is liable for income tax, or would be if the conditions specified in paragraph 7(2) were met.'.
Mr Michael Howard[R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
230
Schedule 23, page 326, line 24, leave out from 'recipient' to end of line 28 and insert 'is liable for income tax in respect of the shares, or would be if the conditions specified in paragraph 7(2) were met.'.
Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
222
Schedule 23, page 326, line 40, leave out 'parent' and insert 'group'.
Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
223
Schedule 23, page 327, line 27, after 'consideration', insert ', apart from the release of the old option,'.
Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
232
Schedule 23, page 328, line 25, at end insert—
'Amount of relief on grant
14A. Where under generally accepted accounting practice the employing company recognised an expense in connection with the grant of an option, the amount of relief is equal to the amount of the expense recognised on grant.'.
Mr Michael Howard [R]
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
236
Schedule 23, page 329, line 2, at end insert—
'Cancellation of options
15A (1) Where the holder of an option is paid consideration in money or money's worth for the cancellation of an option then relief is available for an amount equal to the amount of the consideration paid together with any NIC charge on that amount charged on the payer.
(2) The payment must be made either by the employing company, or a company which subsequently becomes a qualifying company within the meaning of paragraph 13 following a takeover of the company whose shares are the subject of the option.
(3) Relief under this paragraph shall be claimed by the company which makes the payment in respect of the accounting period in which the payment is made.
(4) In this paragraph—
| | "NIC charge" means a liability to pay national insurance contributions under section 6 (Class 1 contributions), section 10 (Class 1A contributions) or section 10A (Class 1B contributions) of the Contributions and Benefits Act; and |
| | "the Contributions and Benefits Act" means either the Social Security Contributions and Benefits Act 1992 (c. 4) or the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7).'. |
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.
