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S.C.A.

Amendment Paper as at
Thursday 20th May 2004

STANDING COMMITTEE A


New Amendments handed in are marked thus *

FINANCE BILL

(Except Clauses 4, 5, 20, 28, 57 to 77, 86, 111 and 282 to 289 and Schedules 1, 3, 11, 12, 21 and 37 to 39)

NOTE

The Amendments have been arranged in accordance with the Order of the Committee [6th May].

   

Mr Paul Boateng

149

Schedule     15,     page     348,     leave out lines 2 to 8 and insert—

    '20 (1)  This paragraph applies where—

            (a)   a person ("the chargeable person") would (apart from this paragraph) be chargeable under paragraph 3 (land) or paragraph 6 (chattels) for any year of assessment ("the initial year") by reference to any property ("the relevant property"), and

            (b)   he has not been chargeable under the paragraph in question by reference to the relevant property in respect of any previous year of assessment.'

   

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

62

Schedule     15,     page     348,     line     4,     leave out 'the year of assessment 2005-06' and insert 'any year of assessment following the year of assessment 2004-05 ("the relevant year")'.



[R] Relevant registered interest declared.

   

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

63

Schedule     15,     page     348,     line     8,     leave out 'that' and insert 'the relevant'.

   

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

64

Schedule     15,     page     348,     line     11,     leave out 'the year of assessment 2005-06' and insert 'the relevant year'.

   

Mr Paul Boateng

150

Schedule     15,     page     348,     line     11,     leave out 'year of assessment 2005-06' and insert 'initial year'.

   

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

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 Paul Boateng

151

Schedule     15,     page     348,     leave out lines 24 to 27 and insert—

    '21 (1)  This paragraph applies where—

            (a)   a person ("the chargeable person") would (apart from this paragraph) be chargeable under paragraph 8 (intangible property) for any year of assessment ("the initial year") by reference to any property ("the relevant property"), and

            (b)   he has not been chargeable under that paragraph by reference to the relevant property in respect of any previous year of assessment.'

   

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 Paul Boateng

152

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

   

Mr Paul Boateng

153

Schedule     15,     page     348,     line     44,     at end insert—

' "the relevant filing date" means 31st January in the year of assessment that immediately follows the initial year within the meaning of paragraph 20 or (as the case requires) paragraph 21.   

Mr Paul Boateng

154

Schedule     15,     page     348,     line     46,     leave out '31st January 2007' and insert 'the relevant filing date'.

   

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 Paul Boateng

155

Schedule     15,     page     349,     line     2,     leave out '31st January 2007' and insert 'the relevant filing date'.

   

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.".'.

 
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Prepared 20 May 2004