Amendments proposed to the Finance Bill - continued House of Commons

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Relationship with chargeable gains

   

Mr Paul Boateng

NC12

To move the following Clause:—

    '(1)   Subsection (3) below applies if—

(a) section 125 applies as a result of a receipt on or after 17 March 2004, by a company that is or has been a member of a partnership, of any consideration for a disposal on or after that date of all or any of its interest in the partnership ("the section 125 disposal");

(b) a chargeable gain accrues to the company on a relevant disposal; and

(c) the total amount of chargeable gains accruing to the company on relevant disposals exceeds the total amount of any allowable losses accruing to it on such disposals.

    (2)   References in this section to a "relevant disposal" are to any disposal of an asset that, alone or together with other disposals of assets, constitutes the section 125 disposal; and references in this subsection to a disposal of an asset are to be construed in accordance with the 1992 Act.

    (3)   Where this subsection applies—

(a) any chargeable gain accruing to the company on a relevant disposal must be excluded in computing, for the purposes of section 8(1) of the 1992 Act, the total amount of chargeable gains accruing to the company in the accounting period in which that gain accrued;

(b) the relevant net gain (defined by subsection (4) below) must be included in computing for those purposes the total amount of chargeable gains accruing to the company in the accounting period in which the receipt mentioned in subsection (1) above occurred; and

(c) any allowable loss accruing to the company on a relevant disposal must be excluded in computing for the purposes of section 8(1) of the 1992 Act the amount of any allowable losses.

    (4)   To find "the relevant net gain" for the purposes of this section—

(a) take the amount by which the total amount of chargeable gains accruing to the company on relevant disposals exceeds the total amount of allowable losses accruing to it on such disposals; and

(b) reduce it (but not below nil) by an amount equal to the chargeable amount.

    (5)   Where section 125 applies as mentioned in subsection (1)(a) above, in computing any chargeable gain or allowable loss accruing to the company on a relevant disposal—

(a) neither the chargeable amount, nor any amount taken into account in computing it, shall be excluded by section 37(1) of the 1992 Act (exclusions from consideration); and

(b) an amount that has been taken into account in computing the chargeable amount shall not by reason of that fact be excluded by section 39(1) of that Act (exclusions from allowable deductions).

    (6)   If section 125 and this section apply more than once as a result of two or more receipts by a company of consideration relating to the same section 125 disposal—

(a) subsection (3)(b) above does not apply in relation to any of the receipts after the first; and

(b) in relation to the first receipt, the amount to be deducted under subsection (4)(b) above is an amount equal to the total of the chargeable amounts found in relation to the receipts.

    (7)   Subsection (8) below applies if subsection (3) above prevents an allowable loss that accrued to a company otherwise than on a relevant disposal from being deductible from a chargeable gain accruing to the company on a relevant disposal.

    (8)   That loss (to the extent that it has not been deducted from any other chargeable gain) shall instead be deductible from the total amount of chargeable gains accruing to the company in the accounting period in which the receipt mentioned in subsection (1) above occurred.

    (9)   But if, in any case where subsection (3) above applies, there are one or more allowable losses—

(a) that are losses to which section 18(3) of the 1992 Act applies, and

(b) that accrued to the company otherwise than on a relevant disposal and are prevented by subsection (3) above from being deductible from a chargeable gain accruing to the company on a relevant disposal,

the total amount deducted under subsection (8) above in respect of those losses must not exceed the relevant net gain.

    (10)   In this section—

"the 1992 Act" means the Taxation of Chargeable Gains Act 1992 (c.12);"the chargeable amount" means the amount found under section 125 in relation to the receipt mentioned in subsection (1) above; andreferences to chargeable gains, or allowable losses, accruing on disposals are to be construed in accordance with the 1992 Act.'.


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.'.


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".'.


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.


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.".'.


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.'.


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.'.


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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