Amendments proposed to the Finance Bill, As Amended - continued House of Commons

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Mr Chancellor of the Exchequer

204

Page     579,     line     30     [Schedule     39],     leave out 'interest in land' and insert 'chargeable interest'.

   

Mr Chancellor of the Exchequer

205

Page     579,     line     33     [Schedule     39],     leave out 'interest in land' and insert 'chargeable interest'.

   

Mr Chancellor of the Exchequer

206

Page     579,     line     41     [Schedule     39],     leave out 'not a notifiable transaction unless' and insert 'a notifiable transaction if (but only if)'.


   

Mr Chancellor of the Exchequer

207

Page     580,     line     20     [Schedule     39],     leave out 'paragraph 24' and insert 'paragraphs 24 and 24A'.

   

Mr Chancellor of the Exchequer

208

Page     580,     line     26     [Schedule     39],     leave out 'an interest in land' and insert 'a chargeable interest'.

   

Mr Chancellor of the Exchequer

209

Page     580,     line     29     [Schedule     39],     leave out 'interest in land' and insert 'chargeable interest'.

   

Mr Chancellor of the Exchequer

210

Page     580,     line     44     [Schedule     39],     leave out 'an interest in land' and insert 'a chargeable interest'.


   

Mr Chancellor of the Exchequer

211

Page     581,     line     1     [Schedule     39],     leave out 'interest in land' and insert 'chargeable interest'.

   

Mr Chancellor of the Exchequer

212

Page     581,     line     4     [Schedule     39],     leave out 'interest in land' and insert 'chargeable interest'.

   

Mr Chancellor of the Exchequer

213

Page     581,     line     5     [Schedule     39],     leave out 'an interest in land' and insert 'a chargeable interest'.

   

Mr Chancellor of the Exchequer

214

Page     581,     line     6     [Schedule     39],     leave out 'interest in land' and insert 'chargeable interest'.

   

Mr Chancellor of the Exchequer

215

Page     581,     line     12     [Schedule     39],     at end insert—

    '24A (1) This paragraph applies where—

            (a)   stamp duty under Part 1 of Schedule 13 to the Finance Act 1999 (transfer on sale) is chargeable on an instrument effecting a transfer of an interest in a partnership, and

            (b)   the relevant partnership property includes stock or marketable securities.

    (2) The relevant partnership property, in relation to a transfer of an interest in a partnership, is the partnership property immediately after the transfer, other than any partnership property that was transferred to the partnership in connection with the transfer.

    (3) The stamp duty chargeable on the instrument shall not exceed the stamp duty that would be chargeable if—

            (a)   the instrument were an instrument effecting a transfer of the stock and marketable securities comprised in the relevant partnership property, and

            (b)   the consideration for the transfer were equal to the net market value of that stock and those securities immediately after the transfer, less the excluded amount.

    (4) The excluded amount is a proportion of the net market value of that stock and those securities immediately after the transfer.

    (5) That proportion is—

            (a)   if the person acquiring the interest in the partnership was not a partner before the transfer, his partnership share immediately after the transfer;

            (b)   if he was a partner before the transfer, the difference between his partnership share before and after the transfer.

    (6) The net market value of stock or securities at a particular date is—

MV - SL

     where—

        MV is the market value of the stock or securities at that date, and

        SL is the amount outstanding at that date on any loan secured solely on the stock or securities.

    (7) If, in relation to any stock or securities, SL is greater than MV, the net market value of the stock or securities shall be taken to be nil.

    (8) Where this paragraph applies in relation to an instrument, the instrument shall not be regarded as duly stamped unless it has been stamped in accordance with section 12 of the Stamp Act 1891.

    (9) This paragraph shall be construed as one with the Stamp Act 1891.'.

   

Mr Chancellor of the Exchequer

216

Page     581,     line     24     [Schedule     39],     leave out first 'an interest in land' and insert 'a chargeable interest'.

   

Mr Chancellor of the Exchequer

217

Page     581,     line     24     [Schedule     39],     leave out second 'an interest in land' and insert 'a chargeable interest'.

   

Mr Chancellor of the Exchequer

218

Page     581,     line     35     [Schedule     39],     at end insert—

      'Interpretation: transfer of chargeable interest from a partnership

    27A  For the purposes of this Part of this Schedule, there is a transfer of a chargeable interest from a partnership in any case where—

            (a)   a chargeable interest that was partnership property ceases to be partnership property, or

            (b)   a chargeable interest is granted or created out of partnership property and the interest is not partnership property.

      Interpretation: market value of leases

    27B (1) This paragraph applies in relation to a lease for the purposes of this Part of this Schedule if—

            (a)   the grant of the lease is or was a transaction to which paragraph 10 applies or applied (or a transaction to which paragraph 10 would have applied if that paragraph had been in force at the time of the grant), or

            (b)   the grant of the lease is a transaction to which paragraph 16 applies.

    (2) In determining the market value of the lease, an obligation of the tenant under the lease is to be taken into account if (but only if)—

            (a)   it is an obligation such as is mentioned in paragraph 10(1) of Schedule 17A, or

            (b)   it is an obligation to make a payment to a person.'.

   

Mr Chancellor of the Exchequer

219

Page     581,     line     38     [Schedule     39],     at end insert—

    '(2) As applied by sub-paragraph (1), that section has effect with the omission of subsection (4) (partners connected with each other).'.


   

Mr Chancellor of the Exchequer

220

Page     582,     line     14     [Schedule     39],     leave out 'partnership transactions the effective date of which' and insert 'any partnership transaction of which the effective date (within the meaning of Part 4 of the Finance Act 2003 (c. 14))'.

   

Mr Chancellor of the Exchequer

221

Page     582,     line     19     [Schedule     39],     leave out sub-paragraph (3).


   

Mr Chancellor of the Exchequer

222

Page     254,     line     39     [Clause     299],     leave out from 'of' to end of line 40.


   

Mr David Laws
Norman Lamb
Mr John Burnett
Dr Vincent Cable

39

Page     255,     line     22     [Clause     300],     leave out 'the prescribed period' and insert 'thirty days'.

   

Mr David Laws
Norman Lamb
Mr John Burnett
Dr Vincent Cable

40

Page     255,     line     31     [Clause     300],     leave out 'the prescribed period' and insert 'thirty days'.


   

Mr David Laws
Norman Lamb
Mr John Burnett
Dr Vincent Cable

42

Page     259,     line     12     [Clause     309],     at end insert—

    '(2A)   Regulations made by the Treasury or the Board under this Part may provide for a threshold below which arrangements shall not be notifiable arrangements under section 298(1).'.


NEW SCHEDULES

   

Mr Chancellor of the Exchequer

NS1

To move the following Schedule:—

'Overseas pension schemes: migrant member relief

      Relief for members' etc. contributions

    (1) An individual who is a relevant migrant member of a qualifying overseas pension scheme is entitled to relief under section 184 (relief for contributions by or on behalf of members of registered pension schemes) in respect of relievable pension contributions paid during a tax year if the individual—

            (a)   has relevant UK earnings chargeable to income tax for that year,

            (b)   is resident in the United Kingdom when the contributions are paid, and

            (c)   has notified the scheme manager of an intention to claim relief under that section.

    (2) Section 186 (annual limit for relief under section 184) applies in relation to the aggregate of the amount of relief to which an individual is entitled under section 184 by virtue of sub-paragraph (1) and any to which the individual is so entitled apart from that sub-paragraph.

    (3) Relief to which an individual is entitled under section 184 by virtue of sub-paragraph (1) is to be given in accordance with section 190 (relief on making of claim) (so that nothing in sections 187 to 189 applies in relation to such relief).

    (4) Section 191 (transfer of certain shares to be treated as payment of contribution) has effect as if the references to sections 184 to 190 included sections 184 to 186 and 190 as they apply by virtue of this paragraph.

    (5) No deduction may be allowed under Chapter 2 of Part 5 of ITEPA 2003 in accordance with section 355 of that Act (deductions for corresponding payments by non-domiciled employees with foreign employers) in respect of contributions under a pension scheme (but subject to Part 4 of Schedule 34).

      Relief for employers' contributions

    (1) Subsections (2) to (5) of section 192 (relief for contributions by employer) apply in relation to relevant migrant member contributions paid by an employer as in relation to contributions paid by an employer under a registered pension scheme in respect of an individual.

    (2) Section 196 (no other relief for employers in connection with contributions) applies as if the reference to contributions under a registered pension scheme included relevant migrant member contributions.

    (3) "Relevant migrant member contributions" means contributions paid under a qualifying overseas pension scheme in respect of an individual who is a relevant migrant member of the pension scheme in relation to the contributions.

     In ITEPA 2003, after section 308 insert—

    "308A   Exemption of contributions to overseas pension scheme

    (1)   No liability to income tax arises in respect of earnings where an employer makes contributions under a qualifying overseas pension scheme in respect of an employee who is a relevant migrant member of the pension scheme.

    (2)   In subsection (1)—

        "qualifying overseas pension scheme", and

        "relevant migrant member",

    have the same meaning as in Schedule (Overseas pension schemes: migrant member relief) to FA 2004 (overseas pension schemes: migrant member relief)."

      Meaning of "relevant migrant member"

     For the purposes of this Schedule an individual who is a member of an overseas pension scheme is a relevant migrant member of the pension scheme, in relation to any contributions, if the individual—

            (a)   was not resident in the United Kingdom when first a member of the pension scheme,

            (b)   was a member of the pension scheme at the beginning of the period of residence in the United Kingdom which includes the time when the contributions are paid,

            (c)   was, immediately before the beginning of that period of residence, entitled to tax relief in respect of contributions paid under the pension scheme under the law of the country or territory in which the individual was then resident, and

            (d)   has been notified by the scheme manager that information concerning events that are benefit crystallisation events in relation to the individual and the pension scheme will be given to the Inland Revenue.

      Meaning of "qualifying" overseas pension scheme

    (1) For the purposes of this Schedule an overseas pension scheme is a qualifying overseas pension scheme if—

            (a)   the scheme manager has given to the Inland Revenue notification that it is an overseas pension scheme and has provided any such evidence that it is an overseas pension scheme as the Inland Revenue may require,

            (b)   the scheme manager has undertaken to the Inland Revenue to inform the Inland Revenue if it ceases to be an overseas pension scheme,

            (c)   the scheme manager has undertaken to the Inland Revenue to comply with any prescribed benefit crystallisation information requirements imposed on the scheme manager, and

            (d)   the overseas pension scheme is not excluded from being a qualifying overseas pension scheme by sub-paragraph (3).

    (2) In sub-paragraph (1)(c) "prescribed benefit crystallisation information requirements" means requirements imposed by or under regulations made by the Board of Inland Revenue to provide to the Inland Revenue any information relating to events that are benefit crystallisation events in relation to members of the pension scheme who have at any time been relevant migrant members of the pension scheme.

    (3) An overseas pension scheme is excluded from being a qualifying overseas pension scheme if the Inland Revenue has decided that—

            (a)   there has been a failure to comply with any prescribed benefit crystallisation information requirements imposed on the scheme manager and the failure is significant, and

            (b)   by reason of the failure it is not appropriate that relief from tax should be given in respect of contributions under the pension scheme,

    and has notified the person or persons appearing to be the scheme manager of that decision (but subject to sub-paragraph (5) and paragraph 6).

    (4) A failure to comply with prescribed benefit crystallisation information requirements is significant if—

            (a)   the amount of information which has not been provided is substantial, or

            (b)   the failure to provide the information is likely to result in serious prejudice to the assessment or collection of tax.

    (5) The Inland Revenue —

            (a)   may at any time after an overseas pension scheme becomes excluded from being a qualifying overseas pension scheme decide that the pension scheme is to cease to be so excluded, and

            (b)   must notify the scheme manager of the decision.

    (1) This paragraph applies where an overseas pension scheme is excluded from being a qualifying overseas pension scheme by a decision of the Inland Revenue under paragraph 5(3).

    (2) The scheme manager may appeal against the decision.

    (3) The appeal is to the General Commissioners, except that the scheme manager may elect (in accordance with section 46(1) of TMA 1970) to bring the appeal before the Special Commissioners instead of the General Commissioners.

    (4) Paragraphs 1, 2, 8 and 9 of Schedule 3 to TMA 1970 (rules for assigning proceedings to General Commissioners) have effect to identify the General Commissioners before whom an appeal under this paragraph is to be brought, but subject to modifications specified in an order made by the Board of Inland Revenue.

    (5) An appeal under this paragraph against a decision must be brought within the period of 30 days beginning with the day on which the notification of the decision was given.

    (6) The Commissioners before whom an appeal under this paragraph is brought must consider whether the overseas pension scheme ought to have been excluded from being a qualifying overseas pension scheme.

    (7) If they decide that the overseas pension scheme ought to have been excluded from being a qualifying overseas pension scheme, they must dismiss the appeal.

    (8) If they decide that the overseas pension scheme ought not to have been excluded from being a qualifying overseas pension scheme, the pension scheme is to be treated as having remained a qualifying overseas pension scheme (but subject to any further appeal or any determination on, or in consequence of, a case stated).'.


 
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Prepared 7 Jul 2004