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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 Paul Boateng
156
Schedule 15, page 349, line 5, leave out 'before 31st January 2007' and insert 'on or before the relevant filing date'.
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a VCT (that is to say, a company whose shares are deemed to be shares whose approval as a venture capital trust is not withdrawn) for the purposes of Schedule 5C of the Taxation of Chargeable Gains Act 1992".'.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. |
| (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 Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne
183
*Clause 119, page 99, line 30, leave out 'or a member of a limited liability Company'.
Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne
182
*Clause 119, page 100, line 11, leave out subsections (7) and (8) and insert—
'(7) In subsection (1) "a trade" does not include—
| (a) | underwriting business within the meaning of section 184 of the Finance Act 1993 (Lloyd's underwriters), or |
| (b) | a trade where the Board have, on the application of a partnership of which an individual is a general partner or member of a limited liability partnership, notified the partnership that the Board is satisfied that the trade will be effected for bona fide commercial reasons and will not form part of any scheme or arrangements of which the main purpose, or one of the main purposes, is avoidance of liability of tax. |
(8) Any application under subsection (7)(b) above shall be in writing and shall contain particulars of the operations that are to be effected and the Board may, within 30 days of the receipt of the application or of any further particulars previously required under this subsection, by notice require the applicant to furnish further particulars for the purpose of enabling the Board to make their decision; and if any such notice is not complied with within 30 days or such longer period as the Board may allow, the Board need not proceed further on the application.
(9) The Board shall notify their decision to the applicant within 30 days of receiving the application or, if they give a notice under subsection (8) above, within 30 days of the notice being complied with.
(10) If the Board notify the applicant that they are not satisfied as mentioned in subsection (7)(b) above or do not notify their decision to the applicant within the time required by subsection (9) above, the applicant may within 30 days of the notification or of that time require the Board to transmit the application, together with any notice given and further particulars furnished under subsection (8) above, to the Special Commissioners; and in that event any notification by the Special Commissioners shall have effect for the purposes of subsection (7)(b) above as if it were a notification by the Board.
(11) If any particulars, furnished under this section do not fully and accurately disclose all facts and considerations material for the decision of the Board or the Special Commissioners, any resulting notification that the Board or Commissioners are satisfied as mentioned in subsection (7)(b) above shall be void.
(12) This section has effect subject to sections 118ZJ and 118ZK (transitional provision).
Section 118ZEA
Application to particular trades
(1) Section 118ZE(7)(b) shall not apply to any trade unless—
| (a) | It can be shown that in respect of any period where a loss was sustained, the trade was carried on throughout that period on a commercial basis and in such a way that profits in the trade could reasonably be expected to be realised in that period or within a reasonable time thereafter; |
| (b) | The profits of the trade are taxed on the general partners or members of a limited liability partnership who claimed the reliefs referred to in subsection 118ZE(1) in the same proportions that the partnership's loss was claimed. |
| (c) | The partnership's expenditure is not applied, directly or indirectly, to provide security for repayment of any borrowings of the partnership or of any of its general partners or members of a limited liability partnership, including without limitation, by means of a cash deposit; |
| (d) | The receipts from the trade are entirely contingent on the performance of the products or services comprising the trade; and |
| (e) | The trade is carried on for bona fide commercial reasons and does not form part of a scheme or arrangements of which the main purpose, or one of the main purposes, is avoidance of liability of tax. |
(2) The Board may make regulations with respect to the application of section 118ZEA(1) above to particular trades.'.
Mr Paul Boateng
158
*Clause 127, page 112, leave out lines 20 to 23 and insert—
'(1) This section applies in relation to the calculation of the lessor's income or profits for a period of account for the purpose of income tax or corporation tax.
(1A) Where—
| (a) | an amount receivable in respect of the lessor's interest under the leaseback falls to be taken into account in that calculation, and |
| (b) | that amount is reduced by an amount due to the lessee under the leaseback, |
that reduction shall be disregarded when taking the amount receivable into account.
(1B) The amounts receivable in respect of the lessor's interest under the leaseback that fall to be taken into account in that calculation may be disregarded to the extent that they exceed the permitted threshold (whether or not subsection (1A) applies).'.
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