S.C.A.

Amendment Paper as at
Tuesday 11th May 2004

STANDING COMMITTEE A

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New Amendments handed in are marked thus *

FINANCE BILL

(Except Clauses 4, 5, 20, 28, 57 to 77, 86, 111 and 282 to 289 and Schedules 1, 3, 11, 12, 21 and 37 to 39)

NOTE

The Amendments have been arranged in accordance with the Order of the Committee [6th May] as follows:—

Clauses 1 to 3 and 6 to 19; Schedule 2, Clauses 21 to 27 and 29; Schedule 4; Clause 30; Schedule 5; Clauses 31 to 41; Schedule 6; Clauses 42 to 47; Schedule 7; Clause 48; Schedule 8; Clause 49; Schedule 9; Clauses 50 to 52; Schedule 10; Clauses 53 to 56 and 78; Schedule 13; Clauses 79 and 80; Schedule 14; Clauses 81 to 84; Schedule 15; Clause 85; Schedule 16; Clause 87; Schedule 17; Clause 88; Schedule 18; Clause 89; Schedule 19; Clause 90; Schedule 20; Clauses 91 to 110 and 112; Schedule 22; Clauses 113 to 127; Schedule 23; Clause 128; Schedule 24; Clauses 129 to 134; Schedule 25; Clause 135; Schedule 26; Clause 136; Schedule 27; Clauses 137 to 155 and 157; Schedule 28; Clauses 156 and 158; Schedule 29; Clauses 159 to 168; Schedule 30; Clauses 169 to 193; Schedule 31; Clauses 194 to 205; Schedule 32; Clauses 206 to 267; Schedule 33; Clauses 268 and 269; Schedule 34; Clauses 270 and 271; Schedule 35; Clause 272; Schedule 36; Clauses 273 to 281 and 290 to 307; new Clauses; new Schedules; Clause 308; Schedule 40; Clauses 309 and 310.

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Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

7

Schedule     2,     page     257,     line     22,     at end insert 'and the Treasury shall with any such designation provide details of the circumstances in which they believe such a tax advantage may be obtained.'.

   

Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

8

Schedule     2,     page     257,     line     37,     leave out from 'the' to end of line 38 and insert 'main benefit of the scheme is the obtaining of a tax advantage by any person in the circumstances specified in the designation of the provision by the Treasury in accordance with paragraph 4(1).'.

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Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

31

Clause     29,     page     23,     line     33,     leave out '2004-05' and insert '2005-06'.

   

Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

57

Clause     29,     page     23,     line     35,     leave out subsection (4).

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Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

9

Clause     31,     page     26,     line     9,     at end insert—

    '5AA (1)   Paragraph 1(2) above does not apply in computing for any chargeable period the profits and losses of a potentially advantaged person if that person is a company which is dormant but which does not satisfy the condition in paragraph 5A(2).

    (2)   Sub-paragraph (1) above does not apply in respect of any accounting period of a company if the Board gives the company a notice under this sub-paragraph requiring the company to compute the profits and losses of that accounting period in accordance with paragraph 1(2) above.

    (3)   A notice may be given in accordance with sub-paragraph (2) above only if the Board has reasonable grounds to believe that in that accounting period the company has been party to any transaction in respect of which provision has been made or imposed otherwise than for bona fide commercial reasons or as part of a scheme or arrangements for the avoidance of tax.

    (4)   In this paragraph "dormant" has the same meaning as in section 249AA of the Companies Act 1985 (see subsections (4) to (7) of that section).'.

   

Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

10

Clause     31,     page     26,     line     9,     at end insert—

    '5AB (1)   Paragraph 1(2) above does not apply in computing for any chargeable period the profits and losses of a potentially advantaged person if that person is a company which satisfies the condition in sub-paragraph (2) below.

    (2)   The condition is that either—

(a)	the company is in insolvent liquidation;

(b)	the company is in insolvent administration;

(c)	an appointment of a provisional liquidator is in force in relation to the company under section 135 of the Insolvency Act 1986 or Article 115 of the Insolvency (Northern Ireland) Order 1989;

(d)	the company is in insolvent administrative receivership; or

(e)	under the law of a country or territory outside the United Kingdom, circumstances exist corresponding to any of those described in paragraphs (a) to (d) above.

    (3)   For the purposes of this paragraph, the company is in insolvent liquidation, in insolvent administration or in insolvent administrative receivership if it is in insolvent liquidation, insolvent administration or insolvent administrative receivership for the purposes of paragraph 6A of Schedule 9 to the Finance Act 1996.'.

   

Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

11

Clause     31,     page     29,     leave out lines 7 to 13.

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Mr Paul Boateng

73

Clause     32,     page     30,     line     33,     leave out '6(3)(a)' and insert '6(2)(a)'.

   

Mr Paul Boateng

74

Clause     32,     page     31,     line     12,     leave out '747(4)' and insert '747(3)'.

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Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

12

Clause     34,     page     35,     line     29,     at end insert—

'(fa)

in sub-paragraph (4)(c) after "would apart from section 84A(2) to (10) of this Act" insert "and disregarding any adjustment which might otherwise arise under the provisions of this paragraph".'.

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Mr Paul Boateng

75

Clause     35,     page     36,     line     1,     leave out first 'paragraph' and insert 'Schedule'.

   

Mr Paul Boateng

76

Clause     35,     page     36,     line     15,     leave out '109(3)(b) of the Taxes Act 1988' and insert '111(3)(b) of the Finance Act 1998'.

   

Mr Paul Boateng

77

Clause     35,     page     39,     line     4,     leave out 'or 6C above' and insert 'above or a paragraph 6C claim'.

   

Mr Paul Boateng

78

Clause     35,     page     39,     line     8,     at end insert—

'(5)	In paragraph 14(1) (general interpretation) insert the following definition at the appropriate place—

" "paragraph 6C claim" has the meaning given by paragraph 6C(2) above;".'.

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Mr Paul Boateng

79

Clause     36,     page     39,     line     18,     leave out 'issued by the advantaged person'.

   

Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

13

Clause     36,     page     39,     line     19,     leave out 'The disadvantaged person' and insert 'Any company other than the advantaged person ("the electing company")'.

   

Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

14

Clause     36,     page     39,     line     20,     leave out 'condition in sub-paragraph (3) below is' and insert 'conditions in both of sub-paragraph (3) and sub-paragraph (3A) below are'.

   

Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

15

Clause     36,     page     39,     line     22,     after 'condition', insert 'in this sub-paragraph'.

   

Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

16

Clause     36,     page     39,     line     31,     at end insert—

    '(3A)   The condition in this sub-paragraph is that arrangements are made by the electing company for securing the payment of any tax which, but for the election under this paragraph, would have been payable by the advantaged person in respect of the application of paragraph 1(2) above in relation to the relevant security by virtue of paragraph 1A above and those arrangements are approved by the Board for the purposes of this paragraph.

    (3B)   If any information furnished by the electing company for the purpose of securing the approval of the Board under sub-paragraph (3A) above does not fully and accurately describe all the facts and considerations material for the decision of the Board under that sub-paragraph, any resulting approval of the Board shall be void.'.

   

Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

17

Clause     36,     page     39,     line     33,     leave out 'the disadvantaged person'.

   

Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

18

Clause     36,     page     39,     line     34,     after '(a)', insert 'the disadvantaged person'.

   

Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

19

Clause     36,     page     39,     line     36,     leave out 'a chargeable period' and insert 'any chargeable period ending on or after the date of the election'.

   

Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

20

Clause     36,     page     39,     line     38,     after 'instead', insert 'the electing company'.

Prepared 11 May 2004