Amendments proposed to the Finance Bill - continued	House of Commons
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Restricted securities with artificially depressed value

   

Mr Paul Boateng

NC3

To move the following Clause:—

    '(1)   Section 446E of the Income Tax (Earnings and Pensions) Act 2003 (c.1) (employee securities with artificially depressed market value: charge on restricted securities) is amended as follows.

    (2)   In subsection (1), after "on restricted securities)," insert—

"(aa)

immediately before the employment-related securities are disposed of (in circumstances which do not constitute such an event) or are cancelled without being disposed of,".

    (3)   For subsections (3) to (6) substitute—

    "(3)   "The relevant period" is the period beginning—

(a)	if section 425(2) (no charge on acquisition of certain restricted securities or restricted interests in securities) applied in relation to the employment-related securities, 7 years before the acquisition, and

(b)	in any other case, 7 years before the relevant date,

and ending with the relevant date.

    (4)   "The relevant date" is—

(a)	in a case within subsection (1)(a), the date on which the chargeable event concerned occurs,

(b)	in a case within subsection (1)(aa), the date on which the disposal or cancellation concerned occurs, and

(c)	in a case within subsection (1)(b), the 5th April concerned.

    (5)    Where this section applies in a case within subsection (1)(aa) or (b), a chargeable event within section 427(3)(a) (lifting of restrictions) is to be treated as occurring in relation to the employment-related securities on the relevant date.

    (6)   In every case where this section applies, subsection (1) of section 428 (amount of charge on restricted securities) applies as if the reference in subsection (2) of that section to what would be the market value of the employment-related securities immediately after the chargeable event but for any restrictions were to what would be their market value at the appropriate time but for the matters to be disregarded.

    (7)   "The appropriate time" is—

(a)	in a case within subsection (1)(a) or (b), the time immediately after the chargeable event concerned, and

(b)	in a case within subsection (1)(aa), the time immediately before the chargeable event concerned.

    (8)   "The matters to be disregarded" are—

(a)	any restrictions,

(b)	the things done as mentioned in subsection (2), and

(c)	if the employment-related securities are about to be disposed of or cancelled, that fact.

    (9)   Where this section applies in a case within subsection (1)(aa), section 428(1) applies with the omission of the reference to OP.

    (10)   Where this section applies in a case within subsection (1)(a) and the chargeable event concerned is within section 427(3)(c) (disposal for consideration), section 428 applies with the omission of subsection (9) (case where consideration is less than actual market value)."

    (4)   This section applies on and after 7th May 2004.

    (5)   But if the employment-related securities were acquired before that date, section 446E does not apply by virtue of the amendment made by subsection (2) of this section unless their market value would be artificially low immediately before the disposal or cancellation if the date on which the relevant period began were the later of—

(a)	that on which it did begin, and

(b)	7th May 2004.'.

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Repeal of section 677 of Taxes Act 1988

   

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

NC1

To move the following Clause:—

       'Section 677 of the Taxes Act 1988 (sums paid to settlor otherwise than as income) is hereby repealed.'.

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Expenditure incurred on assets leased by small or medium-sized enterprise

   

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

NC4

To move the following Clause:—

    '(1)   The Capital Allowances Act 2001 is amended as follows.

    (2)   For subsection 44(1), substitute—

    "(1)   Expenditure is first-year qualifying expenditure if—

(a)	it is incurred by a small or medium-sized enterprise, or

(b)	it is incurred by a lessor on equipment leased to a small or medium-sized enterprise, and

(c)	it is not excluded by subsection (2) or section 46 (general exclusions)."

    (3)   In the table in subsection 52(3) insert in the second and third lines after "small or medium-sized enterprises"—

"or incurred by a lessor on equipment leased to a small or medium-sized enterprise".'.

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Expenditure incurred in installing access ramps

   

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

NC5

To move the following Clause:—

    (1)   The Capital Allowances Act 2001 is amended as follows.

    (2)   In section 23(2) after "section 29 (fire safety)" insert—

"29A (ramps for disabled access)"

    (3)   After section 29 insert—

    "29A   Ramps for disabled access installed by small or medium-sized enterprises

    (1)   This section applies to expenditure if a small or medium-sized enterprise carrying on a qualifying activity has incurred it in installing ramps required to facilitate access by disabled persons to premises which the small or medium-sized enterprise uses for the purposes of the qualifying activity.

    (2)   A small or medium-sized enterprise installs ramps required to facilitate access by disabled persons if the installation is or will be required to comply with section 21 of the Disability Discrimination Act 1995.

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Transfers of real property between joint occupiers

   

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

NC6

To move the following Clause:—

    '(1)   The Inheritance Tax Act 1984 is amended as follows.

    (2)   After section 18 insert—

"Transfers of real property between joint occupier

18A

(1)

A transfer on death shall be an exempt transfer to the extent that it comprises a part or whole share in an interest in real property that has been occupied as the main residence of the transferor and the transferees throughout the two years prior to the date of death.

(2)

For the purposes of determining whether a property has been in the occupation referred to in paragraph (1) above, there shall be disregarded any absences during which either party has had to receive residential nursing care whether in hospital or a private facility.".'.

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Gift aid and non-taxpayers

   

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

NC7

To move the following Clause:—

    '(1)   Section 25 of the Finance Act 1990 (donations to charity by individuals) shall be amended in accordance with subsection (2) below.

    (2)   In subsection (8)—

(a)	after "year of assessment" there shall be inserted "by more than £520"; and

(b)	at the end there shall be added "over £520".

    (3)   This section shall be deemd to have effect for the year 2003-04 and subsequent years of assessment.'.

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Access for disabled persons

   

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

NC8

To move the following Clause:—

    '(1)   The following shall be inserted after section 29 of the Capital Allowances Act 2001—

    "29A   Access for disabled persons

       This section applies to expenditure if a person carrying on a qualifying activity has incurred it in pursuance of a duty under section 21 of the Disability Discrimination Act 1995."

    (2)   This section shall have effect in relation to expenditure incurred in relation to chargeable periods ending on or after 1st October 2004.'.

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Expenses of disabled employees

   

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

NC9

To move the following Clause:—

    '(1)   The Income Tax (Earnings and Pensions) Act 2003 is amended as follows.

    (2)   After section 203 (cash equivalent of benefit treated as earnings), insert—

    "203A   Employment costs resulting from disability

       There shall be exempted from section 203 any benefit which satisfies each of the following conditions—

(a)	the benefit is provided to a disabled employee;

(b)	the main purpose of providing the benefit is to enable the employee to perform the duties of his employment;

(c)	the benefit consists in the provision of any equipment, services or facilities;

(d)	the benefit is made available to the employer's employees generally on similar terms."

    (3)   After section 336 (deductions for expenses, the general rule), insert—

    "336A   Expenses of disabled employees

       Where an employee has a disability, a deduction from earnings is allowed for any amount incurred by him if its main purpose is to enable him to perform the duties of his employment."

    (4)   This section shall apply for the year 2004-05 and subsequent years of assessment and shall be deemed to apply for the year 2003-04.'.

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Definition of disability

   

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

NC10

To move the following Clause:—

       'In section 832 of the Taxes Act 1988, subsection (1), there shall be inserted at the appropriate place:

       "disability" and "disabled person" shall, where the context so admits, have the meanings given to them by section 1 of the Disability Discrimination Act 1995, and cognate expressions shall be construed accordingly.".'.

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Capital gains tax: foster carers and adult placement carers

   

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

NC11

To move the following Clause:—

'In the Taxation of Chargeable Gains Act 1992, section 224, after subsection (1) insert—

    "(1A)   Subsection (1) above shall not apply to any part of a dwellinghouse that is used exclusively for the purposes of a trade or business which consists of the provision of:

(a)	foster care within the meaning given by paragraph 4 of Schedule 36 to the Finance Act 2003;

(b)	accommodation and care to people placed through an adult placement scheme operated by a local authority, an HSS trust or an independent body.'.

Prepared 18 May 2004