S.C.B.
Amendment Paper as at
Tuesday 21st June 2005
STANDING COMMITTEE B
Dawn Primarolo
That, during proceedings on the Finance Bill (except Clauses 11, 18, 40, 43, 44 and 69 and Schedule 8), the Committee do meet at half-past Ten o'clock and half-past Four o'clock on Tuesdays and quarter-past Nine o'clock and Two o'clock on Thursdays when the House is sitting.
FINANCE BILL
(except Clauses 11, 18, 40, 43, 44 and 69 and Schedule 8)
Dawn Primarolo
To move, That the Order in which proceedings in Standing Committee on the Finance Bill are to be taken shall be Clauses 1 to 6, Schedule 1, Clauses 7 to 10, Clause 12, Schedule 2, Clauses 13 to 17, Clauses 19 to 24, Schedule 3, Clauses 25 to 34, Schedule 4, Clause 35, Schedule 5, Clauses 36 and 37, Schedule 6, Clauses 38 and 39, Schedule 7, Clauses 41 and 42, Schedule 9, Clauses 45 to 49, Schedule 10, Clauses 50 to 68, new Clauses, new Schedules, Clause 70, Schedule 11 and Clauses 71 and 72.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
60
Clause 1, page 1, line 7, at end add—
'(1B) The circumstances which may be prescribed in subsection (1A) shall be limited to those where goods are sold by taxable persons to non-registered persons within the United Kingdom.'.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
61
Clause 3, page 5, line 8, leave out 'relevant date' and insert 'last day of the month next following the end of the next prescribed accounting period'.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
62
Page 7, line 32, leave out Clause 6.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
63
Page 60, line 2, leave out Schedule 1.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
64
Clause 7, page 8, line 9, after '(5)', insert 'below'.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
65
Clause 7, page 8, line 30, leave out from beginning to end of line 34.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
66
Clause 7, page 8, line 34, at end add—
'(9) In this section "total income" shall mean total income after deduction of the relevant personal allowance mentioned in section 257 ICTA 1988'.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
1
Schedule 2, page 63, line 13, after 'is', insert 'entered into as part of a scheme or arrangement the main purpose (or one of the main purposes) of which is the avoidance of tax or national insurance contributions and is'.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
2
Schedule 2, page 63, line 22, at end insert—
'(d) any contract of insurance offered by a company whose business includes the business of selling insurance policies where the contract is offered on substantially the same terms in the ordinary course of that insurance business.".'.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
3
Schedule 2, page 63, line 36, leave out from beginning to end of line 3 on page 64 and insert—
| '(8) | This paragraph has effect on and after 2nd December 2004 and applies in relation to rights under contracts of insurance acquired on or after that date.'. |
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
4
Schedule 2, page 64, line 19, leave out from 'acquired' to end of line 24 and insert 'after that date.'.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
5
Schedule 2, page 64, line 25, leave out paragraphs 5 and 6.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
6
Schedule 2, page 65, line 1, leave out paragraph 7.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
7
Schedule 2, page 65, line 9, at end insert—
| | '431C | Procedure for clearance in advance |
Section 431B shall not apply so as to treat an election as having been made for the purposes of section 431 if, before the issue of securities is made, the Board have, on the application of either the employer or the employee notified either the employer or the employee that the Board are satisfied that the issue of the securities is for bona fide commercial reasons and will not form part of any such arrangements as are referred to in section 431B.".'.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
8
Schedule 2, page 65, leave out lines 27 to 40 and insert—
| '(3) | Where subsection (1) does not apply by virtue of subsection (2) the market value of the employment-related securities is to be determined in each case as if they were immediately and fully convertible.'. |
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
9
Schedule 2, page 66, line 16, at end insert—
| '(3B) | (a) This subsection applies where subsection (2) of section 437 of this Act applies. (b) If on a chargeable event the amounts charged under the provisions referred to in section 437(1) because of the application of subsection (2) of section 437 and the amounts computed under this section (the "original amounts") exceed the amounts that would have been charged under section 437(1) and under this section had section 437(2) not applied, the associated person shall be charged on the lower of such amounts and any amounts overpaid shall be refunded, provided that if, on a later chargeable event, such amounts do not exceed the original amounts, the original amounts shall be due on the dates on which such sums were due and payable as if this provision had not applied.'. |
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
10
Schedule 2, page 67, line 12, at end insert—
| '(3) | Subsections (1) and (2) shall not apply if the loan is repaid, in which case within one month after the repayment has been notified to the Inland Revenue any tax and national insurance paid shall be repaid.'. |
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
11
Schedule 2, page 67, line 38, at end insert—
| '(5) | Where subsection (4) applies, then the taxable amount determined in accordance with subsection (2) shall be reduced, where otherwise an amount may be subject to tax more than once, to such an amount to ensure that no part of the benefit is subject to tax more than once.".'. |
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
12
Schedule 2, page 67, line 42, at beginning insert—
'(1) After section 447 ITEPA 2003 insert—
| "447A | (1) | Section 447 shall not apply where the employee shows that the benefit arose from an ordinary investment transaction. |
| (2) | An 'ordinary investment transaction' means any transaction in securities regularly traded on an EEA exchange (being a market which appears on the list drawn up by an EEA State pursuant to Article 16 of EU Council Directive No 93122/EEC on investment services in the securities field) and any transaction in securities not so regularly traded where the following circumstances are present: |
(a) the securities were acquired for an amount (or the acquirer is charged to income tax on all or part of such amount under Chapter 1 of part 3) which was not less than their market value (as determined for the purposes of the Taxation of Chargeable Gains Act 1992), provided that in the information a purchaser may require there shall be included (if this would not otherwise be the case) any known or reasonably projected returns on the securities and any value the securities might acquire through the conversion or alteration of rights of those or other securities, always having regard to the possibility or otherwise of such conversion or alteration occurring;
(b) other than the provisions in the constitution of the body issuing the securities, giving the holder the right to transfer if a majority decide to transfer their securities, there are no arrangements which give the holder a right to transfer his securities;
(c) at the date of the acquistion there is no certainty that the holder of the securities will necessarily recover the amount invested in the securities, and there is not at any time any guarantee or indemnity from any third party of the amount invested in the securities or any income therefrom; and
(d) the securities are securities acquired in a trading company or the holding company of a trading group (as defined in Schedule A1 of the Taxation of Chargeable Gains Act 1992).
| (3) | Where in pursuance of this subsection a person furnishes to the Board particulars of a transaction relating to employment-related securities acquired or to be acquired by him or of any benefit anticipated or received by him in relation to any employment-related securities which may give rise to a charge under section 447, the following shall apply:— |
(a) if the Board are of the opinion that the particulars, or any further information furnished in pursuance of this paragraph, are not sufficient for the purposes of this section, they shall within 30 days of the receipt notify to that person what further information they require for tax purposes and unless that information is furnished to the Board within 30 days from the notification, or such further time as the Board may allow, they shall not be required to proceed further under this subsection;
(b) subject to paragraph (a) above, the Board shall within 30 days of the receipt of the particulars, or where that paragraph has effect, of all further information required, notify that person whether or not they are satisfied that the circumstances of the aquisition were or will be such, or that the circumstances giving rise to the receipt of any benefits were or will be such that any benefits anticipated or received ought not to be subject to the charge to income tax contained in section 447(1).
(c) if the particulars, and any further information given under subsection 447A(4) with respect to any acquistion and benefit are not such as to make full and accurate disclosure of all facts and considerations which are material to be known to the Board, any notification given by the Board under this section shall be void.
(d) if the Board notify the person that they are satisfied that the circumstances of the acquistion or receipt of benefits are such that any benefits anticipated or received ought not to be subject to the charge to income tax contained in section 447(1), section 447 shall not apply to that person in relation to those benefits.
(e) if the Board notify the person that they are not so satisfied, the person may within 30 days of such notification appeal to the Special Commissions against such decision. Save for a notification by the Board referred to under paragraph (d), in no event shall the giving of a notification under this section prevent section 447 applying to a person in relation to any benefits received.".'.
