Amendments proposed to the Finance Bill - continued	House of Commons
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Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

266

Schedule     34,     page     482,     line     17,     leave out '75' and insert '80'.

   

Mr Paul Boateng

481

*Schedule     34,     page     483,     line     23,     after 'election' insert 'on or'.

   

Mr Paul Boateng

482

*Schedule     34,     page     483,     line     27,     leave out 'before 6th' and insert 'on or before 31st'.

   

Mr Paul Boateng

483

*Schedule     34,     page     484,     line     20,     leave out 'continues to apply' and insert 'applies'.

   

Mr Paul Boateng

484

*Schedule     34,     page     485,     line     2,     at end insert—

'Application of PAYE to certain annuities in payment at commencement

43A

(1)

Taxable pension income for the tax year 2006-07 or any subsequent tax year determined in accordance with section 612 of ITEPA 2003 for an annuity to which this paragraph applies is to be treated as being PAYE pension income for the tax year by virtue of section 683(3) of that Act (PAYE income).

(2)	This paragraph applies to an annuity in payment on 5th April 2006 which—

(a)   would be within paragraph 1(1) but for paragraph 2, or

(b)   would be within paragraph 1(1)(d) if the annuity did not provide for the immediate payment of benefits.'.

   

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

397

Schedule     34,     page     485,     line     10,     leave out 'an employer of an individual makes a relevant consolidation contribution' and insert 'a relevant consolidation contribution is made'.

   

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

398

Schedule     34,     page     485,     line     18,     at end insert 'or a transfer from an arrangement not falling within paragraph 1(1) which was established before 6th April 2006'.

   

Mr Paul Boateng

485

*Schedule     34,     page     485,     line     38,     leave out 'Paragraphs 50 to 52 have' and insert 'Paragraph 50 or 51 has'.

   

Mr Paul Boateng

486

*Schedule     34,     page     486,     line     2,     leave out 'to which an employee has been' and insert 'of which an employee is'.

   

Mr Paul Boateng

487

*Schedule     34,     page     486,     line     9,     leave out 'would be' and insert 'is or are'.

   

Mr Paul Boateng

488

*Schedule     34,     page     486,     line     11,     leave out 'has been' and insert 'is'.

   

Mr Paul Boateng

489

*Schedule     34,     page     486,     line     13,     leave out 'has been' and insert 'is'.

   

Mr Paul Boateng

490

*Schedule     34,     page     486,     line     15,     leave out 'have counted' and insert 'counts or count'.

   

Mr Paul Boateng

491

*Schedule     34,     page     486,     line     17,     leave out 'none of paragraphs 50 to 52 apply' and insert 'neither paragraph 50 nor paragraph 51 has effect'.

   

Mr Paul Boateng

492

*Schedule     34,     page     486,     line     19,     leave out 'applies' and insert 'has effect'.

   

Mr Paul Boateng

493

*Schedule     34,     page     486,     line     25,     at end insert 'or

(b)   the scheme was entered into before 1st September 1993 and has not been varied on or after that date with a view to the provision of benefits under the scheme.'.

   

Mr Paul Boateng

494

*Schedule     34,     page     486,     line     28,     after '2003' insert '(charge on benefits from non-approved schemes)'.

   

Mr Paul Boateng

495

*Schedule     34,     page     486,     line     32,     after first 'the' insert 'appropriate fraction of the'.

   

Mr Paul Boateng

496

*Schedule     34,     page     486,     line     36,     after 'scheme' insert 'is or'.

   

Mr Paul Boateng

497

*Schedule     34,     page     486,     line     38,     leave out 'The amount referred to in sub-paragraph (3)(a)' and insert 'For the purposes of sub-paragraph (3)(a)—

(a)   "the appropriate fraction" of the amount of the market value of the assets of the scheme on 5th April 2006 is the same fraction as the fraction of the assets of the scheme to which the employee would have been entitled had the scheme been wound up on that date, and

(b)   the amount of the market value of the assets of the scheme on that date'.

   

Mr Paul Boateng

498

*Schedule     34,     page     487,     line     1,     leave out from 'paragraph' to end of line 2 and insert 'has effect if paragraph 50 does not.'.

   

Mr Paul Boateng

499

*Schedule     34,     page     487,     line     8,     leave out paragraph 52.

   

Mr Paul Boateng

500

*Schedule     34,     page     487,     line     22,     at end insert 'and

(b)   property which is part of or held for the purposes of the fund or scheme does not constitute relevant property for the purposes of Chapter 3 of Part 3 of that Act (settlements without interest in possession).'.

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

331

Clause     270,     page     220,     line     34,     at end insert 'except that with effect from the date on which this Act receives Royal Assent no member of any pension scheme described in sub-paragraphs (a) to (g) of paragraph 1(1) to Schedule 34 will be required to buy an annuity on reaching any age and such a member may instead elect for income withdrawal (and Chapter 3 and Schedules 28 and 29 will have effect accordingly in such cases with effect from 6 April 2004).'.

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Mr Paul Boateng

157

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

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

367

Clause     290,     page     241,     line     22,     leave out paragraph (c) and insert—

'(c)	have as their main purpose the obtaining of that tax advantage or making that tax advantage available to another person.'.

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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'.

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

368

Clause     292,     page     242,     line     6,     after 'period', insert 'of not less than 30 days'.

   

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.'.

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

5

Page     242,     line     39,     leave out Clause 294.

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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.

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

369

Clause     298,     page     244,     line     22,     at end insert 'but Legal Professional Privilege does not subsist in a way in which prevents compliance with this part of the Act'.

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

370

Clause     302,     page     246,     line     39,     leave out '1st August 2004' and insert '1st October 2004'.

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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.'.

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Prepared 11 Jun 2004