S.C.B.
Amendment Paper as at
Tuesday 28th June 2005
STANDING COMMITTEE B
New Amendments handed in are marked thus *
FINANCE BILL
(Except Clauses 11, 18, 40, 43, 44 and 69 and Schedule 8)
NOTE
The Amendments have been arranged in accordance with the Order of the Committee[21st June], as follows—
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
49
Clause 31, page 28, line 10, leave out '16th March 2005' and insert '31st July 2005'.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
50
Clause 31, page 28, line 12, leave out '16th March 2005' and insert '31st July 2005'.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
51
Clause 31, page 28, line 15, leave out '15th March 2005' and insert '30th July 2005'.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
52
Clause 31, page 28, line 17, leave out '16th March 2005' and insert '31st July 2005'.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
53
Clause 31, page 28, line 22, leave out '16th March 2005' and insert '31st July 2005'.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
56
Clause 31, page 28, line 24, leave out subparagraph (a).
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
54
Clause 31, page 28, line 24, leave out '16th March 2005' and insert '31st July 2005'.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
55
Clause 31, page 28, line 26, leave out '31st August 2005' and insert '31st December 2005'.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
114
Schedule 6, page 84, line 35, after 'company', insert '(such accounts being prepared in accordance with generally accepted accounting practice).'.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
115
Schedule 6, page 85, line 18, after 'company', insert '(such accounts being prepared in accordance with generally accepted accounting practice).'.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
113
Schedule 6, page 86, line 24, at end insert—
'Spreading of adjustment on change of accounting policy
| 6A | (1) | In paragraph 19A of Schedule 9 to FA 1996 (loan relationships: adjustment on change of accounting policy), after sub-paragraph (5) insert— |
| "(5A) | Where there is a change of accounting policy in accordance with sub-paragraph (2)(a) above, then the company may in respect of its cumulative adjustments, elect that the adjustment shall be spread over six periods of account rather than being taxed in accordance with sub-paragraph (3) above. |
| (5B) | An election made in accordance with sub-paragraph (5A) must be made— |
(a) by notice in writing,
(b) to the Commissioners,
(c) within twelve months of the end of the first accounting period to which the new basis applies.
| (5C) | If an election is made, then, in each of the six periods of account beginning with the first period for which the company prepares accounts in accordance with international accounting standards, an amount equal to one-sixth of the amount of adjustment is treated as arising and chargeable to tax.".'. |
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
116
Schedule 7, page 88, line 40, at beginning insert 'In'.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
117
Schedule 7, page 88, line 41, leave out from 'years)' to end and insert 'at end insert "and where the main purpose, or one of the main purposes, of one or more of the parties to the finance agreement was a tax avoidance purpose.".'.
Chris Huhne
Susan Kramer
Stephen Williams
69
Schedule 7, page 89, line 5, leave out sub-paragraphs (5) and (6).
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
118
Schedule 7, page 89, line 32, at end insert—
'"tax advantage" has the meaning given by section 709(1) of the Taxes Act 1988;"tax avoidance purpose" in the case of any person, means any purpose that consists in securing a tax advantage (whether for the person or any other person).'.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
119
Schedule 7, page 91, line 28, at end insert—
| '(8A) | In section 768B(1)(a) after "capital" insert "and the main purposes or one of the main purposes, of the change of ownership was a tax avoidance purpose.".'. |
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
120
Schedule 7, page 95, line 24, at end insert—
| '(2A) | Where credits representing any distribution in respect of the share are brought into account for the purposes of this Chapter, then this Chapter shall have effect for the accounting period of the issuing company in accordance with subsection (3) below as if— |
(a) the shares were obligations under a debtor relationship of that company, and
(b) any distribution in respect of the share were not a distribution falling within section 209(2)(a) or (b) of the Taxes Act 1988, unless such a distribution is payable to a person who is not within the charge to income tax or corporation tax.'.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
121
Schedule 7, page 95, line 26, leave out from 'share' to end of line 27 and insert 'shall be determined in accordance with those principles of generally accepted accounting practice which are applied in determining the company's profit or loss for the accounting period'.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
122
Schedule 7, page 95, line 28, leave out sub-paragraph (4).
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
123
Schedule 7, page 96, line 28, at end insert—
'(11) This section shall not apply unless the purpose, or one of the main purposes, of the investing company holding the share in the circumstances described in subsection (1) above is a tax avoidance purpose.
(12) In this section "tax advantage" had the meaning given by section 709(1) of the Taxes Act 1988;"tax avoidance purpose" in the case of any company, means any purpose that consists in securing a tax advantage (whether for the company or any other person).'.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
124
Schedule 7, page 96, line 39, leave out 'and'.
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley
125
Schedule 7, page 96, line 40, at end insert—
'(2A) Where credits representing any distribution in respect of the share are brought into account for the purposes of this Chapter, then this Chapter shall have effect for an accounting period of the issuing company in accordance with subsection (3) below as if—
