Amendments proposed to the Finance Bill - continued House of Commons

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Approved plans and schemes

   

Mr Paul Boateng

NC19

To move the following Clause:—

    '(1)   The Income Tax (Earnings and Pensions) Act 2003 (c.1) is amended as follows.

    (2)   Omit section 421G (exclusion from Chapters 2 to 4 of Part 7 of shares awarded or acquired under approved plan or scheme).

    (3)   In Chapter 2 of Part 7 (restricted securities), after section 431 insert—

    "431AShares under approved plan or scheme    (1)   Where employment-related securities are restricted securities or a restricted interest in securities, the employer and the employee are to be treated as making an election under section 431(1) in relation to the employment-related securities if they are shares, or an interest in shares, to which this subsection applies.

    (2)   Subsection (1) applies to—

(a) shares awarded or acquired under an approved share incentive plan (within the meaning of Chapter 6 of this Part) in circumstances in which (in accordance with section 490) no liability to income tax arises,

(b) shares acquired by the exercise of a share option granted under an approved SAYE option scheme (within the meaning of Chapter 7 of this Part) in circumstances in which (in accordance with section 519) no liability to income tax arises,

(c) shares acquired by the exercise of a share option granted under an approved CSOP scheme (within the meaning of Chapter 8 of this Part) in circumstances in which (in accordance with section 524) no liability to income tax arises, and

(d) shares acquired by the exercise of a qualifying option within the meaning of section 527(4) (enterprise management incentives) in circumstances in which (in accordance with section 530) no liability to income tax arises."

    (4)   In section 489 (operation of tax advantages in connection with approved share incentive plans), after subsection (3) insert—

    "(4)   And those sections do not apply if the main purpose (or one of the main purposes) of the arrangements under which the shares in question are awarded or acquired is the avoidance of tax or national insurance contributions."

    (5)   In sections 505 and 506 (charge on shares ceasing to be subject to approved share incentive plan), after subsection (4) insert—

    "(4A)   Any tax due under subsection (2) or (3) is reduced by the amount or aggregate amount of any tax paid by virtue of Chapter 3B of this Part in relation to the shares."

    (6)   In section 519(1) (approved SAYE option schemes: no charge in respect of exercise of option) insert at the end "and

(c) the avoidance of tax or national insurance contributions is not the main purpose (or one of the main purposes) of any arrangements under which the option was granted or is exercised."

    (7)   In section 524(1) (approved CSOP schemes: no charge in respect of exercise of option) insert at the end "and

(c) the avoidance of tax or national insurance contributions is not the main purpose (or one of the main purposes) of any arrangements under which the option was granted or is exercised."

    (8)   Section 701 (PAYE: meaning of "asset") is amended as follows.

    (9)   In subsection (2)(c)—

(a) in sub-paragraph (ia), for the words after "employee" substitute "under a scheme approved under Schedule 4 (approved CSOP schemes) in circumstances in which Condition A or B as set out in section 524(2) or (2A) is met;",

(b) omit sub-paragraph (ii), and

(c) in sub-paragraph (iii), after "1996" insert "where the avoidance of tax or national insurance contributions is not the main purpose (or one of the main purposes) of any arrangements under which the right was obtained or is exercised".

    (10)   After subsection (3) insert—

    "(3A)   Paragraph (c) of subsection (2) does not apply to shares after their acquisition as mentioned in that paragraph."

    (11)   This section has effect on and after 18th June 2004 and (so far as it does not relate to the award or acquisition of shares) applies in relation to shares awarded or acquired before that date as well as in relation to those awarded or acquired on or after that date.

    (12)   Where section 431A(1) of the Income Tax (Earnings and Pensions) Act 2003 (c.1) (as inserted by subsection (3)) has effect (by virtue of subsection (11)) in relation to shares acquired before 18th June 2004, it applies in relation to them so as to treat an election under section 431(1) of that Act as made in relation to them on that date.

    (13)   For the purposes of the application of Chapter 3B of Part 7 of that Act (securities with artificially enhanced market value) by reason of subsections (2) and (11) in relation to shares acquired before 18th June 2004, section 446O of that Act (meaning of "relevant period") has effect as if they were acquired on that date.'.


Shares acquired on public offer

   

Mr Paul Boateng

NC20

To move the following Clause:—

    '(1)   Section 421F of the Income Tax (Earnings and Pensions) Act 2003 (c.1) (exclusion from Chapters 2 to 4 of Part 7 of shares acquired under terms of offer to the public) is amended as follows.

    (2)   In subsection (1), for "Chapters 2 to 4" substitute "Chapters 2, 3 and 3C".

    (3)   After that subsection insert—

    "(1A)   But subsection (1) does not disapply those Chapters if the main purpose (or one of the main purposes)—

(a) of the arrangements under which the right or opportunity under which the shares were acquired, or

(b) for which the shares are held,

is the avoidance of tax or national insurance contributions."

    (4)   This section has effect on and after 18th June 2004 and applies in relation to shares acquired before that date as well as in relation to those acquired on or after that date.

    (5)   For the purposes of the application of Chapter 3B of Part 7 of the Income Tax (Earnings and Pensions) Act 2003 (c.1) (securities with artificially enhanced market value) by reason of subsections (2) and (4) in relation to shares acquired before that date, section 446O of that Act (meaning of "relevant period") has effect as if they were acquired on that date.'.


Associated persons etc.

   

Mr Paul Boateng

NC21

To move the following Clause:—

    '(1)   Part 7 of the Income Tax (Earnings and Pensions) Act 2003 (c.1) (employment income: securities) is amended as follows.

    (2)   In section 421C(2) (meaning of "relevant linked person" for purposes of Chapters 1 to 4), for "are connected or, although not connected, are" substitute "are or have been connected or (without being or having been connected) are or have been".

    (3)   In section 472(2) (meaning of "relevant linked person" for purposes of Chapter 5), for "are connected or, although not connected, are" substitute "are or have been connected or (without being or having been connected) are or have been".

    (4)   In section 477(3)(c) (chargeable events in relation to employment-related securities options), for the words after "benefit" substitute "in connection with the employment-related securities option (other than one within paragraph (a) or (b))."

    (5)   This section has effect on and after 18th June 2004 and applies in relation to securities, interests and options that were employment-related securities or employment-related securities options on that date (as well as those acquired on or after that date).'.


Power of Board to specify form and manner in which information is provided under Part 7

   

Mr Paul Boateng

NC22

To move the following Clause:—

'The information required by section 292(1) or (3), 293(1), 294, 296(1) or 297(1) must be provided in a form and manner specified by the Board.'.


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.'.


 
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Prepared 22 Jun 2004