Amendments proposed to the Finance Bill - continued House of Commons

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Mr Paul Boateng

178

Schedule     23,     page     394,     line     12,     leave out 'rental deduction' and insert 'taxed rental'.

   

Mr Paul Boateng

179

Schedule     23,     page     394,     line     14,     leave out 'rental deduction' and insert 'taxed rental'.

   

Mr Paul Boateng

180

Schedule     23,     page     394,     line     32,     leave out 'deduction' and insert 'rental'.

   

Mr Paul Boateng

181

Schedule     23,     page     395,     line     24,     at end insert—

      'Chargeable gains

    8A (1) Sub-paragraph (2) applies where—

            (a)   an existing leaseback is the leaseback in a lease and finance leaseback,

            (b)   the leaseback terminates,

            (c)   on or after the termination there is a disposal, by the user, of the whole or part of the plant and machinery subject to the leaseback, and

            (d)   a chargeable gain that accrues on that disposal ("the relevant chargeable gain") falls to be taken into account for the purposes of a chargeable gains computation.

     (2) The following fraction of the relevant chargeable gain shall instead be taken into account for the purposes of the chargeable gains computation—

(Net Rentals Termination Charge)
Lease Premium
    where—

      "Net Rentals" means—

          (a) the total of the amounts deducted in calculating the user's income or profits, for the purpose of income tax or corporation tax, in respect of amounts payable under the leaseback, minus

          (b) the total of the amounts shown in the user's accounts in respect of finance charges relating to the leaseback;

           "Termination Charge" means the amount by which the user's income or profits are to be increased by virtue of section 228C(2) of the CAA 2001 because of the termination;

           "Lease Premium" means the consideration relating to the leaseback referred to in section 228F(6)(b) of the CAA 2001.

        (3) References in this paragraph to termination of the leaseback shall be construed in accordance with section 228H(1) of the CAA 2001.

        (4) In this paragraph—

           "CAA 2001" means the Capital Allowances Act 2001;

           "chargeable gains computation" means the computation, for the purposes of the TCGA 1992, of the total amount of chargeable gains that accrue to the user in any chargeable period that ends on or after 17 March 2004;

           "disposal" shall be construed in accordance with the TCGA 1992;

           "lease and finance leaseback" has the same meaning as in section 228F of the CAA 2001;

           "TCGA 1992" means the Taxation of Chargeable Gains Act 1992;

           "user" means the person who is the lessee under the leaseback.'.


   

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 David Laws
Norman Lamb
Mr John Burnett
Dr Vincent Cable

188

Schedule     31,     page     447,     line     40,     at end insert—

      '(g) a charity lump sum death benefit'.

   

Mr David Laws
Norman Lamb
Mr John Burnett
Dr Vincent Cable

189

Schedule     31,     page     448,     line     24,     at end insert '"charity lump sum death benefit"'.

   

Mr Quentin Davies

113

Schedule     31,     page     449,     line     23,     at end insert—

    '(2A)   In that subsection, immediately before the entry relating to section 616, insert—

       "section 607 (retirement annuity contracts".'.


   

Mr Paul Boateng

157

Clause     277,     page     231,     line     14,     leave out '2012' and insert '2011'.


   

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.


NEW CLAUSES

Restriction of exceptions from charges

   

Mr Paul Boateng

NC2

To move the following Clause:—

    '(1)   Each of the provisions of Part 7 of the Income Tax (Earnings and Pensions) Act 2003 (c.1) (employment income: securities) specified in subsection (2) (exception from charges for certain company shares) is amended in accordance with subsections (3) to (5).

    (2)   The provisions are—

      (a) section 429 (restricted securities),

      (b) section 443 (convertible securities),

      (c) section 446R (securities acquired for less than market value), and

      (d) section 449 (post-acquisition benefits from securities).

    (3)   In subsection (1) of each of those sections, after paragraph (b) (but before the word "and" where that word features at the end) insert—

          "(ba) subsection (1A) is satisfied,".

    (4)   After subsection (1) of each of those sections insert—

          "(1A)   This subsection is satisfied if the avoidance of tax or national insurance contributions was not the main purpose, or one of the main purposes, of the arrangements under which the right or opportunity to acquire the employment-related securities was made available."

    (5)   In subsection (4) of sections 429, 443 and 446R, and in subsection (3) of section 449, for the words after "are not" substitute "employment-related securities."; and accordingly omit section 429(5), 443(5), 446R(5) and 449(4).

    (6)   In Chapter 3A of that Part of that Act (securities with artificially depressed market value), after section 446I insert—

          "446IA    Disapplication of exceptions from charges

          (1)   Section 429 (exception from charge under section 426 for certain company shares) does not prevent section 426 (restricted securities: chargeable events) applying in relation to an event if section 446E or 446I(1)(a) would have effect in relation to the event.

          (2)   Section 443 (exception from charge under section 438 for certain company shares) does not prevent section 438 (convertible securities: chargeable events) applying in relation to an event if section 446G, 446H or 446I(1)(b) would have effect in relation to the event.

          (3)   Section 446R (exception from charge under Chapter 3C for certain company shares) does not prevent that Chapter (securities acquired for less than market value) applying in relation to employment-related securities if section 446B would have effect in relation to them.

          (4)   Section 449 (exception from charge under Chapter 4 for certain company shares) does not prevent that Chapter (benefits from securities) applying in relation to a benefit if section 446I(1)(e) would have effect in relation to the benefit."

    (7)   In Chapter 3B of that Part of that Act (securities with artificially enhanced market value), after section 446N insert—

          "446NA   Disapplication of exceptions from charges

          (1)   None of the provisions specified in subsection (2) (exceptions from charges for certain company shares) apply in relation to employment-related securities if the market value of the employment-related securities at the time of the acquisition has been increased by at least 10% by non-commercial increases within the period of 7 years ending with the acquisition.

          (2)   The provisions are—

          (a) section 429 (restricted securities),

          (b) section 443 (convertible securities),

          (c) section 446R (securities acquired for less than market value), and

          (d) section 449 (post-acquisition benefits from securities).

          (3)   If section 446L (market value on valuation date increased by more than 10% by non-commercial increases during relevant period) applies in relation to employment-related securities, section 429 does not subsequently apply in relation to the employment-related securities."

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


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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