| Amendments proposed to the Finance Bill - continued | House of Commons |
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Mr Michael Howard 311 Schedule 37, page 416, leave out lines 43 and 44 and insert—'(4) The amendments made by this paragraph have effect in relation to relevant discounted securities issued on or after 9th April 2003'.
Mr Michael Howard 322 Schedule 37, page 417, leave out lines 28 and 29.
Mr Michael Howard 323 Schedule 37, page 417, line 29, at end add—
'PART 3
Definition of collective investment scheme | ||||||||||||||||||||||||||||||||||||||||||||||||||
| section 87(5A); |
| section 87A(3); |
| paragraph 2(1B) of Schedule 9; |
| paragraph 18(1)(c) of Schedule 9; |
| paragraph 20(5) of Schedule 9; |
| paragraph 20(6) of Schedule 9'. |
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
315
Clause 179, page 114, line 12, leave out 'any expenditure incurred by him in making' and insert 'the amount or value of'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
305
Clause 179, page 114, leave out lines 16 to 18 and insert—'(2) Where any such contribution is made by an investment company, the amount or value of the contribution shall for the purpose of section 75 be treated as an expense of management if it would not otherwise be deductible in computing the company's profits.'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
306
Clause 179, page 114, line 19, leave out 'Subsection (1) above does' and insert 'Subsections (1) and (2) above do'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
313
Clause 179, page 114, line 21, after 'benefit', insert '(other than publicity)'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
314
Clause 179, page 114, line 23, at end insert '; and for the purposes of this subsection a person shall not be regarded as having received, or being entitled to receive, a benefit if it is a benefit provided by an urban regeneration company in the normal course of, or incidental to, discharging the criteria mentioned in subsection (7) below.'.
Mr Michael Howard
Mr Howard Flight [R]
Mr Stephen O'Brien
Mr Mark Prisk
Mr David Wilshire
312
Clause 179, page 114, line 27, after 'benefit', insert '(other than publicity)'.
Mr Paul Boateng
300
Schedule 38, page 419, line 42, at end insert—'Option premium to be reflected in sale price unless brought into account under derivative contracts provisions
9A In section 730A of the Taxes Act 1988 (treatment of price differential on sale and repurchase of securities), after subsection (8) insert—
"(8A) In this section references to the sale price are to be construed—
| (a) | in a case where the securities are bought back by the transferor or a person connected with him in compliance with a requirement imposed in consequence of the exercise of an option acquired under the agreement to sell the securities or any related agreement, as references to what would otherwise be the sale price plus the amount of any consideration given for the option, and |
| (b) | in a case where the securities are so bought back in the exercise of an option so acquired, as references to what would otherwise be the sale price less the amount of any consideration so given, |
unless the consideration is brought into account under Schedule 26 to the Finance Act 2002 (derivative contracts).".'.
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—
| (a) | this section, |
| (b) | section 730BB, apart from subsection (6A), |
| (c) | section 737A, and |
| (d) | section 737C. |
(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.'.
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| ©Parliamentary copyright 2003 | Prepared 17 Jun 2003 |