| Amendments proposed to the Finance Bill - continued | House of Commons |
| back to previous text | |
|
Mr Oliver Letwin 63 Schedule 15, page 348, line 8, leave out 'that' and insert 'the relevant'.
Mr Oliver Letwin 64 Schedule 15, page 348, line 11, leave out 'the year of assessment 2005-06' and insert 'the relevant year'.
Mr Oliver Letwin 65 Schedule 15, page 348, leave out lines 13 to 19 and insert— |
| '(b) | 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; |
| (c) | and for as long as the property is so treated 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 of 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
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. |
| (b) | and for as long as the property is so treated 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'.
| |
| ©Parliamentary copyright 2004 | Prepared 13 May 2004 |