Amendments proposed to the Finance Bill - continued House of Commons

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

21

Clause     36,     page     39,     line     39,     leave out 'that 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

22

Clause     36,     page     40,     line     1,     leave out 'disadvantaged person' and insert 'electing company'.

   

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

23

Clause     36,     page     40,     leave out lines 7 to 10 and insert—

'(aa) must be made no later than twelve months from the end of the chargeable period in which the relevant security is issued.'.

   

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

24

Clause     36,     page     40,     leave out lines 18 to 23.

   

Mr Paul Boateng

80

Clause     36,     page     41,     line     14,     at end add—

'(4) After paragraph 7C insert—

"Guarantees etc: election to discharge tax liability instead of making balancing payments

7D (1) This paragraph applies where the following conditions are satisfied—

(a)   both of the affected persons are companies,

(b)   the circumstances are as described in paragraph 6(1) above,

(c)   the actual provision falls within paragraph 1B(1) above.

(2) Sub-paragraphs (2) to (8) of paragraph 7B above apply in a case where this paragraph applies as they apply in a case where that paragraph applies, but with the modifications in sub-paragraphs (3) and (4) below.

(3) The relevant security is the security in paragraph 1B(1)(a) above.

(4) In sub-paragraph (4) (nature of the election)—

(a)   for "paragraph 7A above" substitute "paragraph 7C below";

(b)   for "paragraph 1A", in both places, substitute "paragraph 1B".".'.


   

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

25

Clause     37,     page     41,     line     21,     leave out subsections (2), (3) and (4).

   

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

26

Clause     37,     page     41,     line     36,     leave out '6th' and insert '1st'.

   

Mr Paul Boateng

81

Clause     37,     page     41,     line     41,     leave out '31st March' and insert '5th April'.

   

Mr Paul Boateng

82

Clause     37,     page     41,     line     42,     leave out '1st' and insert '6th'.


   

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

58

Clause     38,     page     42,     leave out lines 15 to 19.


   

Mr Paul Boateng

83

Schedule     6,     page     277,     leave out lines 41 to 45 and insert 'for "an investment company", wherever occurring, substitute "a company with investment business".'.


   

Mr Paul Boateng

84

Clause     43,     page     51,     line     22,     leave out '41' and insert '46'.


85

Clause     44,     page     53,     line     29,     at beginning insert 'the old'.


   

Mr Paul Boateng

86

Schedule     7,     page     281,     line     42,     after first '14' insert ', 17, 22, 31 or 38'.

   

Mr Paul Boateng

87

Schedule     7,     page     282,     line     32,     at end insert—

    '(7)   Where an amount is shown as post-transfer reduction liabilities in the transferor's accounts for any accounting period beginning after the transfer, this section applies as if the amount of the retained liabilities at the end of that accounting period (and the beginning of the next) were increased by the amount so shown.

    (8)   In subsection (7) above "post-transfer reduction liabilities" means liabilities of the transferor to make payments to relevant persons which, in accordance with the terms of the insurance business transfer scheme, have arisen in consequence of a reduction in the amount of the retained liabilities at any time after the transfer.

    (9)   In subsection (8) above "relevant persons" means—

(a) if the transferor's life assurance business immediately before the transfer was mutual business, persons who were policy holders or annuitants, or members of the transferor, at that time, and

(b) in any other case, persons who were policy holders or annuitants at that time.".'.

   

Mr Paul Boateng

88

Schedule     7,     page     285,     line     13,     at end insert—

'(1A) In the following provisions of the Finance Act 1989 (c.26) (which relate to the policy holders' share of profits)—

(a)   section 88(3A)(a),

(b)   the words within quotation marks in the portion of section 88(3B) preceding paragraph (a),

(c)   the portion of section 89(1B) preceding paragraph (a), and

(d)   section 89(2)(b),

after "referable" insert "(in accordance with section 432A of the Taxes Act 1988)"; and, in consequence of the amendment made by paragraph (b), in section 88(3B), for "referable to that business" substitute "so referable".'.


   

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

53

Schedule     8,     page     285,     line     38,     leave out 'from' and insert 'from—

(a)'. 

   

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

54

Schedule     8,     page     285,     line     41,     at end insert '; or

(b) being deemed to be controlled by another company, by virtue of section 416(2) of the Taxes Act 1988, where control is exercised by the general partner of a CIS limited partnership'.

   

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

52

Schedule     8,     page     287,     leave out from beginning of line 35 to end of line 27 on page 288.

   

Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

55

Schedule     8,     page     289,     line     4,     at end add—

'8 (1) Section 87 of the Finance Act 1996 is amended as follows.

    (2)   In subsection (5A) (cases where a partnership is a creditor or debtor in a loan relationship) in the closing words, for the words from "a limited partnership" to the end of the subsection, substitute "a CIS limited partnership".

    (3)   After subsection (5A), insert:—

    "(5AA)   In this section—

       "CIS limited partnership" means a limited partnership

(a) which is a collective investment scheme, or

(b) which would be a collective investment scheme if it were not a body corporate.

       "collective investment scheme" means "a collective investment scheme within the meaning of section 235 of the Financial Services and Markets Act 2000".

    (4)   These amendments have effect for accounting periods ending on or after 13th December 2003.

(1) Section 87A of that Act is amended as follows:

    (2)   In subsection (3) (partnerships involving companies) in the closing words, for the words "a limited partnership" to the end of the subsection, substitute "a CIS limited partnership".

    (3)   After subsection (3), insert:—

"(4) In this section—

 "CIS limited partnership" means a limited partnership

(a) which is a collective investment scheme, or

(b) which would be a collective investment scheme if it were not a body corporate.

 "collective investment scheme" means a collective investment scheme within the meaning of section 235 of the Financial Services and Markets Act 2000".

    (4)   These amendments have effect for accounting periods ending on or after 13th December 2003.

Interpretation of references to major interests

10 (1) Paragraph 20 of Schedule 9 to that Act is amended as follows:

    (2)   In subparagraph (5) (partnerships involving companies) in the closing words, for the words from "a limited partnership" to the end of the subsection, substitute "a CIS limited partnership".

    (3)   In subparagraph (6) in the closing words, for the words from "a limited partnership" to the end of the subsection, substitute "a CIS limited partnership".

    (4)   After subparagraph (6), insert—

"(6A) In this paragraph—

 "CIS limited partnership" means a limited partnership

(a) which is a collective investment scheme, or

(b) which would be a collective investment scheme if it were not a body corporate.

 "collective investment scheme" means a collective investment scheme within the meaning of section 235 of the Financial Services and Markets Act 2000".

    (5)   These amendments have effect for accounting periods ending on or after 13th December 2003.'.



[R] Relevant registered interest declared.


   

Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

56

Schedule     9,     page     289,     line     25,     leave out paragraph 3.


   

Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

96

Clause     51,     page     58,     line     11,     leave out second 'and'.

   

Mr Paul Boateng

89

Clause     51,     page     58,     line     12,     leave out 'paragraph' and insert 'section'.

 
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