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

102

Schedule     15,     page     348,     line     23,     at end insert—

    '(4)   An election made under this paragraph shall not be valid and the chargeable person shall be treated as the settlor of the property under the provisions of Schedule 4 of IHTA 1984 if—

      (a) within two years of death of the chargeable person the relevant property is transferred to a maintenance fund; and

      (b) a direction is given in respect of the property under the provisions of paragraph 1(1) of Schedule 4 of IHTA 1984.

   

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

66

Schedule     15,     page     348,     line     26,     leave out 'the year of assessment 2005-06' and insert 'any year of assessment following the year of assessment 2004-05 ("the relevant year").'.

   

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

68

Schedule     15,     page     348,     leave out lines 29 to 36 and insert—

      '(a) the property shall subject to the provisions of paragraph 6 of Schedule 20 of the 1986 Act be treated for the purposes of Part 5 of the 1986 Act (in relation to the chargeable person) as property subject to a reservation and for as long as the property is so treated.

      (b) section 102(3) and (4) of that Act shall apply; and

      (i) no other person or persons shall for the purposes of the Inheritance Tax Act 1984 be treated as beneficially entitled to the property and the property shall not be treated as "relevant property" under the provisions of section 58 of that Act; and

      (ii) on the death of the chargeable person the property shall be deemed for the purposes of the Taxation and Chargeable Gains Act 1992 to be disposed of and immediately reacquired by the person or persons then competent to dispose of the property and no chargeable gain shall accrue on that disposal;

      (iii) the provisions of the Taxation of Chargeable Gains Act 1992 shall apply on any disposal of the property as if the person disposing of the property was the chargeable person'.

   

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

67

Schedule     15,     page     348,     line     30,     leave out 'the year of assessment 2005-06' and insert 'the relevant year'.

   

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

69

Schedule     15,     page     348,     line     46,     leave out '2007' and insert 'following the end of the relevant year'.

   

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

70

Schedule     15,     page     349,     line     2,     leave out '2007' and insert 'following the end of the relevant year'.

   

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

71

Schedule     15,     page     349,     line     5,     leave out '2007' and insert 'following the end of the relevant year'.


   

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

27

Schedule     19,     page     369,     line     23,     leave out from beginning to end of line 7 on page 370.

   

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

28

Schedule     19,     page     374,     line     23,     at end insert—

    '17 (1)   Schedule 33 to the Finance Act 2002 (Venture Capital Trusts) is amended as follows.

    (2)   After paragraph 7 insert—

          "7A   Without prejudice to the generality of the foregoing of this Part of this Schedule, a VCT-in-liquidation or a VCT-in-liquidation that has been wound up shall be deemed to remain a VCT (that is to say, a company whose shares are deemed to be shares whose approval as a venture capital trust is not withdrawn) for the purposes of Schedule 5C of the Taxation of Chargeable Gains Act 1992".'.

   

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

29

Schedule     19,     page     374,     line     23,     at end insert—

    '17 (1)   Section 151A of the Taxation of Chargeable Gains Act 1992 (Venture Capital Trusts: Reliefs) is amended as follows.

    (2)   At the end of sub-section (1) of that section, insert—

       "save that a loss arising on the disposal of such ordinary shares shall be an allowable loss in the case where and to the extent that a claim was previously made under paragraph (2) of Schedule 5C to this Act and the expenditure on such ordinary shares was treated for the purposes of that schedule as qualifying expenditure.".'.

   

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

32

Schedule     19,     page     374,     line     23,     at end add—

    '17 (1) Schedule 33 to the Finance Act 2002 (Venture Capital Trusts) is amended as follows.

    (2) After "Obtained" in sub-paragraph (2) of paragraph 8 (Power to facilitate mergers of VCTs) insert "but not subject to any condition that would prevent a merger of two or more companies in the case where one company makes an unsolicited offer for the shares of one or more other companies (or otherwise makes an offer for such shares that has not been agreed by such other companies).".'.

   

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

33

Schedule     19,     page     374,     line     23,     at end add—

    '17 (1) Schedule 33 to the Finance Act 2002 (Venture Capital Trusts) is amended as follows.

    (2) In paragraph 10—

      (i) subparagraph (1)(b)(i), after "company", insert "such that company A comes to possess voting power in excess of 50 per cent. of the shares in the other merging company".

      (ii) in subparagraph (2)(b)(i), after "company", insert "such that company B comes to possess voting power in excess of 50 per cent. of the shares of each of the merging companies".'.


   

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

30

Schedule     22,     page     388,     line     28,     leave out from beginning to end of line 20 on page 389 and insert—

    '( )   Where a claim for relief under section 260 has been made in relation to a disposal of a property, the trustees' relief under section 223 above on a disposal of that property shall be limited to that proportion of the chargeable gain which reflects the period during which the property has been occupied as an only or main residence under the terms of the trust as a fraction of the combined period of ownership of the trustees and the person who claimed the relief under section 260.

    ( )   In calculating the proportion mentioned in subsection (1) above, the Trustees shall only be entitled to relief for periods in which the property was in actual occupation by one or more beneficiaries and not for any period of deemed occupation.'.

   

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

1

Schedule     22,     page     390,     line     35,     leave out sub-paragraph (8) and insert—

    '( )   In subsection (5) of section 223 of the Taxation of Chargeable Gains Act 1992 after "and (2)(a) above" insert "and section 226A below".'.


   

Mr Paul Boateng

95

Clause     130,     page     120,     line     30,     leave out '541(d)' and insert '541(1)(d)'.


   

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

104

*Clause     132,     page     123,     line     3,     after 'small', insert 'or medium-sized'.

   

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

99

Clause     132,     page     123,     line     5,     after 'small', insert 'or medium-sized.'.

   

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

100

Clause     132,     page     123,     line     7,     after 'small', insert 'or medium-sized.'.

   

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

101

Clause     132,     page     123,     line     12,     after 'small,' insert 'or medium-sized.'.


   

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

3

Clause     291,     page     241,     line     41,     leave out 'is to any extent responsible' and insert 'has the primary responsibility'.


   

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

4

Clause     292,     page     242,     line     19,     at end insert 'and shall, to the extent, that he is aware of the existence of any other person who is a promoter in relation to the same notifiable arrangments, deliver a copy of the prescribed information to such other person in the prescribed manner.'.


   

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

5

Page     242,     line     39,     leave out Clause 294.


   

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

6

Clause     297,     page     243,     line     33,     leave out from 'promoter' to end of line 35.



 
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