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Mr Paul Boateng
301
Schedule 38, page 420, line 1, at end insert—
| '9B | (1) | Section 730A of the Taxes Act 1988 (treatment of price differential on sale and repurchase of securities) is amended as follows. |
| (2) | In subsection (4) (adjustment of repurchase price) for "this section and sections 737A and 737C" substitute "the excepted provisions specified in subsection (4A) below". |
| (3) | At the end of that subsection add as a second sentence— |
"This subsection is subject to subsection (4B) below.".
| (4) | After that subsection insert— |
"(4A) The excepted provisions are—
| (b) | section 730BB, apart from subsection (6A), |
(4B) Where section 730BB(6A) has effect (repurchase price to be treated as increased or reduced for certain purposes), subsection (4) above does not have effect for any purpose other than that of determining the amount that falls to be increased or reduced under section 730BB(6A).".'.
Mr Paul Boateng
302
Schedule 38, page 421, line 29, at end insert—
'(6A) Where a company has a relationship to which this section applies, the repurchase price shall be treated for the purposes of the Tax Acts (other than this section and sections 730A, 737A and 737C) and (in cases where section 263A of the 1992 Act does not apply) for the purposes of the 1992 Act—
| (a) | in a case where an exchange gain arises to the company by virtue of subsection (4)(a) above or an exchange loss arises to the company by virtue of subsection (5)(b) above, as increased by the amount by which the first sum exceeds the second sum, and |
| (b) | in a case where an exchange gain arises to the company by virtue of subsection (4)(b) above or an exchange loss arises to the company by virtue of subsection (5)(a) above, as reduced by the amount by which the second sum exceeds the first sum.'. |
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
308
Schedule 38, page 422, leave out lines 29 to 39 and insert—
'(2A) Where—
| (a) | a company has a relationship to which section 730BB of the Taxes Act 1988 applies (exchange gains and losses on sale and repurchase of securities), and |
| (b) | the circumstances mentioned in subsection (1)(a) of that section are such that a money debt arises from the obligation mentioned in section 730A(1)(b)(i) of that Act or from the exercise of an option mentioned in section 730A(1)(b)(i) or (ii) of that Act, |
the company shall not be regarded for the purposes of the Corporation Tax Acts as having, by reason of that money debt, a relationship to which this section applies, so far as relating to exchange gains and losses.'.
Mr Paul Boateng
303
Schedule 38, page 422, line 32, leave out from 'securities),' to the end of line 35 and insert—
| '(b) | in the case of that relationship the circumstances mentioned in section 730A(1)(b) of that Act are such as to give rise to a money debt, and |
| (c) | the company stands, or has stood, in the position of a creditor or debtor as respects that money debt,'. |
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
309
Schedule 38, page 423, line 18, at end insert—
'17A In Schedule 26 to the Finance Act 2002 after paragraph 4, insert—
"Contracts excluded by virtue of forming part of sale and repurchase agreement
4A A relevant contract is not a derivative contract for the purposes of this Schedule if it forms part of an arrangement falling within section 730A of the Taxes Act 1988.".'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
307
Schedule 38, page 423, leave out lines 26 and 27 and insert—
'(1) Paragraph 1 has effect where the agreement to sell securities falling within section 737A of the Taxes Act 1988 is entered into on or after 9th April 2003.'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
324
Schedule 39, page 425, line 33, leave out from 'security' to end of line 37 and insert 'which is listed on a recognised stock exchange.'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
325
Clause 192, page 124, leave out lines 27 to 38 and insert—
'(6) Where any shares of a company are subject to a transaction which falls, or would fall, within the scope of sections 126 to 131 of the Taxation of Chargeable Gains Act 1992 (company reorganisations etc) or any enactment applying the said section 126 in a modified form (together "the relevant enactments"), and that company holds any of its own shares ("the treasury shares"), then the relevant enactments shall apply to those shares which are not treasury shares ignoring the effect of the transaction (if any) upon the treasury shares.'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
326
Clause 192, page 125, line 10, after 'treated', insert 'for the purposes of Part 6 of the Taxes Act 1988'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
295
Schedule 41, page 428, line 21, at end insert—
'(7ZB) For the purposes of this section an administrator (who is the proper officer of a company) may elect that subsections (3)(da) and (7ZA) do not apply.
(7ZC) An election under subsection (7ZB) must be made—
| (b) | to the Inland Revenue, |
| (c) | no later than one year after the date the company enters administration. |
(7ZD) An election under subsection (7ZB) is irrevocable.'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
296
Schedule 41, page 428, line 23, leave out '(7ZA)' and insert '(7ZD)'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
327
Schedule 41, page 428, line 26, at end insert—
'(1A) In subsection (1), after "liquidator" insert "or administrator".'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
207
Clause 194, page 126, line 16, leave out 'any of subsections (1) to' and insert 'the definition of "the Mutual Assistance Directive" in subsection'.
Mr Paul Boateng
304
Clause 194, page 126, line 19, at end insert—
'( ) An order under subsection (5) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
200
Clause 196, page 127, line 7, after 'made', insert 'after consultation and agreement'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
288
Clause 196, page 127, line 41, after 'for', insert 'the immediate benefit of'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
289
Clause 196, page 127, line 43, at end insert ', being a description in respect of which the Community obligation or arrangements referred to in subsection (1) above apply.'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
318
Schedule 42, page 431, line 36, leave out 'branch or agency' and insert 'permanent establishment'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
319
Schedule 42, page 432, line 16, leave out 'branch or agency' and insert 'permanent establishment'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
316
Schedule 42, page 432, line 44, leave out 'business' and insert 'trade'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
320
Schedule 42, page 432, line 45, leave out 'branch or agency' and insert 'permanent establishment'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
317
Schedule 42, page 432, line 46, leave out 'habitually' and insert 'ordinarily'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
321
Schedule 42, page 433, line 3, leave out 'branch or agency' and insert 'permanent establishment'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
284
Clause 207, page 138, line 13, leave out subsection (3) and insert—
'(3) For subsection (3) substitute—
"(3) For the purposes of making their determination under sub-section (1)(b) the Treasury shall be required to apply generally accepted accounting practices in determining whether all or part of any payments represent such interest as is referred to in that subsection.".'.
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