Amendments proposed to the Finance Bill - continued House of Commons

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Mr Paul Boateng

157

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


   

Mr Paul Boateng

554

Clause     290,     page     241,     line     20,     after 'enable' insert 'or might be expected to enable'.

   

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.'.


   

Mr Paul Boateng

555

Clause     291,     page     241,     line     30,     leave out from 'of' to end of line 32 and insert 'a relevant business'.

   

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

569

Clause     291,     page     241,     line     32,     leave out from 'taxation' to 'and' in line 36 and insert 'if he makes the notifiable proposal available for implementation to five or more persons.'.

   

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

570

Clause     291,     page     241,     line     38,     leave out '(ii)'.

   

Mr Paul Boateng

556

Clause     291,     page     241,     line     40,     leave out from 'of' to 'he' in line 41 and insert 'a relevant business'.

   

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 Paul Boateng

557

Clause     291,     page     242,     line     2,     at end insert—

    '(1A)   In this section "relevant business" means any trade, profession or business which—

(a) involves the provision to other persons of services relating to taxation, or

(b) is carried on by a bank, as defined by section 840A of the Taxes Act, or by a securities house, as defined by section 209A(4) of that Act.

    (1B)   For the purposes of this section anything done by a company is to be taken to be done in the course of a relevant business if it is done for the purposes of a relevant business falling within subsection (1A)(b) carried on by another company which is a member of the same group.

    (1C)   Section 170 of the Taxation of Chargeable Gains Act 1992 has effect for determining for the purposes of subsection (1B) whether two companies are members of the same group, but as if in that section—

(a) for each of the references to a 75 per cent subsidiary there were substituted a reference to a 51 per cent subsidiary, and

(b) subsection (3)(b) and subsections (6) to (8) were omitted.'.


   

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 Paul Boateng

558

Clause     292,     page     242,     line     7,     leave out 'in the prescribed manner'.

   

Mr Paul Boateng

559

Clause     292,     page     242,     line     13,     leave out 'the proposed arrangements' and insert 'notifiable arrangements implementing the notifiable proposal'.

   

Mr Paul Boateng

560

Clause     292,     page     242,     line     16,     leave out 'in the prescribed manner'.

   

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 Paul Boateng

561

Clause     293,     page     242,     line     34,     leave out 'in the prescribed manner'.


   

Mr Paul Boateng

562

Clause     294,     page     243,     line     1,     leave out '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 Paul Boateng

563

Clause     295,     page     243,     line     10,     at end insert—

    '( )   The allocation of a reference number to any notifiable arrangements (or proposed notifiable arrangements) is not to be regarded as constituting any indication by the Board that the arrangements could as a matter of law result in the obtaining by any person of a tax advantage.'.


   

Mr Paul Boateng

564

Clause     296,     page     243,     line     16,     leave out 'in the prescribed form'.


   

Mr Paul Boateng

565

Clause     297,     page     243,     line     29,     leave out 'at the prescribed time or times'.

   

Mr Paul Boateng

566

Clause     297,     page     243,     line     30,     leave out 'in the prescribed form and manner'.

   

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.

   

Mr Paul Boateng

567

Clause     297,     page     243,     line     40,     at beginning insert 'in prescribed cases'.

   

Mr Paul Boateng

568

Clause     297,     page     243,     line     43,     leave out paragraph (b) and insert—

'(b) in prescribed cases, require the number and other information to be provided separately to the Board at the prescribed time or times.'.


   

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'.


   

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'.


   

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

548

Clause     303,     page     247,     line     14,     leave out '8th September 2003' and insert 'the date six months after this Act shall have received Royal Assent.'.

   

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

549

Clause     303,     page     247,     line     15,     leave out from beginning to end of line 7 on page 248.


   

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

550

Clause     304,     page     248,     line     22,     leave out '8th September 2003' and insert 'the date six months after this Act shall have received Royal Assent.'.

   

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

551

Clause     304,     page     248,     leave out lines 23 to 31.


NEW CLAUSES

Shares in employee-controlled companies and unconnected companies

   

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—

    "446IADisapplication 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—

    "446NADisapplication 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 22 Jun 2004