Amendments proposed to the Finance Bill - continued	House of Commons
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Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley

109

Schedule     9,     page     135,     line     22,     leave out from beginning to end of line 25 on page 136.

   

Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley

111

Schedule     9,     page     138,     line     19,     leave out from beginning to end of line 7 on page 140.

   

Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley

112

Schedule     9,     page     141,     line     22,     at end insert—

    '(2A)   Section 76 of ICTA 1988 is amended as follows—

    (2B)   In subsection (11) after paragraph (a) insert—

"(aa)

receipts of the company chargeable under Case VI of Schedule D by virtue of section 85(1) above,

(ab)	income of the company treated as referable to basic life assurance and general annuity business by section 441B(2) of the Taxes Act 1988 (treatment of UK land),

(ac)	amounts treated as accruing to the company and charged to tax under Case VI of Schedule D by virtue of section 442A of that Act (taxation of investment return where risk reinsured), and"

    (2C)   Section 89 of the Finance Act 1989 is amended as follows—

    (2D)   Replace subsection (1B) with—

       "For the purposes of this section the BLAGAB profits of a company for an accounting period are the aggregate of—

(a)	income and chargeable gains referable in accordance with section 432A of the Taxes Act 1988 to the company's basic life assurance and general annuity business insert,

(b)	receipts of the company chargeable under Case VI of Schedule D by virtue of section 85(1) above,

(c)	income of the company treated as referable to basic life assurance and general annuity business by section 441B(2) of the Taxes Act 1988 (treatment of UK land),

(d)	amounts treated as accruing to the company and charged to tax under Case VI of Schedule D by virtue of section 442A of that Act (taxation of investment return where risk reinsured).

reduced by the aggregate of—

(e)	any non-trading deficit on the company's loan relationships,

(f)	expenses of management falling to be deducted under section 76 of the Taxes Act 1988, and

(g)	charges on income,

so far as referable to the company's basic life assurance and general annuity business.".'.

   

Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley

91

Clause     46,     page     38,     line     44,     at end add 'or

(c)	the pension rights and entitlements of former employees of UKAEA who are members of pension schemes that were, or are, run by UKAEA.'.

   

Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley

92

Clause     47,     page     39,     line     11,     after 'regulations', insert 'laid in draft at least 90 days before such regulations would otherwise come into effect'.

   

Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley

93

Clause     48,     page     40,     line     15,     after '1988', insert 'and'.

   

Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley

94

Clause     48,     page     40,     line     19,     leave out from '1977' to end of line 21.

   

Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley

95

Schedule     10,     page     145,     line     7,     after 'effect', insert ', (but not so as to make the vendor in relation to the earliest previous transaction the vendor for the purposes of paragraph 5(2)(a))'.

   

Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley

96

Schedule     10,     page     145,     line     13,     at end insert 'and relief has not been withdrawn by virtue of paragraphs 3 or 9 on or before the change of control in the purchaser to which this paragraph applies,'.

   

Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley

97

Schedule     10,     page     145,     line     42,     at end insert—

'(6)

Where—

(a)   there is a change of control of the purchaser; and

(b)   the same circumstances that give rise to a change of control of the purchaser in relation to the relevant transaction may also give rise to a change of control of the vendor; and

(c)   paragraph 4A(1) could apply in relation to an earlier transaction on which group relief has been obtained and not withdrawn ("the prior transaction") in relation to which the vendor (under the relevant transaction) was the purchaser (under the prior transaction);

paragraphs 3 and 4 shall only apply to the prior transaction if and to the extent that the market value of the property the subject of the prior transaction, exceeds the market value of the property the subject of the relevant transaction".'.

   

Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley

98

Schedule     10,     page     146,     line     6,     leave out 'that does not consist wholly or mainly of dealing in chargeable interests'.

   

Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley

99

Schedule     10,     page     147,     line     34,     at beginning insert 'Subject to sub-paragraph (5)'.

   

Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley

100

Schedule     10,     page     147,     line     41,     at end add—

'(5)	Sub-paragraph (2) shall not apply where the grant to or by a nominee is associated with, incidental to or preparatory to, a transaction involving a securitisation company within the meaning of Section 83(2) of the Finance Act 2005.'.

   

Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley

101

Schedule     10,     page     149,     line     23,     leave out paragraph 15.

   

Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley

102

Schedule     10,     page     151,     line     9,     after 'duty', insert 'stamp duty reserve tax and stamp duty land tax.'.

   

Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley

103

Schedule     10,     page     151,     line     9,     leave out 'corporation tax, capital gains tax or tax under this Part'.

   

Dawn Primarolo

144

*Clause     56,     page     49,     line     7,     after 'applies', insert '(or would apply but for section 140E(1)(d)).'.

   

Dawn Primarolo

145

*Clause     56,     page     49,     line     17,     leave out subsection (3) and insert—

    '(3)   For the purposes of subsection (1) an asset is a "qualifying asset" if—

(a)	it is transferred to the SE as part of the merger forming it, and

(b)	subsections (4) and (5) are satisfied in respect of it.

    (4)   This subsection is satisfied in respect of an asset if—

(a)	the transferor is resident in the United Kingdom at the time of the transfer, or

(b)	the asset is an asset of a permanent establishment in the United Kingdom of the transferor.

    (5)   This subsection is satisfied in respect of an asset if—

(a)	the transferee SE is a resident of the United Kingdom on formation, or

(b)	the asset is an asset of a permanent establishment in the United Kingdom of the transferee SE on its formation.'.

New Clauses

Advance clearance

   

Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Mr David Ruffley

NC1

To move the following Clause:—

    '(1)   This Chapter shall not have effect in respect of any company falling within either section 24(1) or section 26(1), in any case where the commissioners for Her Majesty's Revenue and Customs have on application of the company notified the company that the Board are satisfied that the transaction does not have a main purpose of achieving a UK tax advantage.

    (2)   Any application made under subsection (1) above shall be in writing, delivered either by post or by electronic mail, and shall contain particulars of the operations that are to be effected and the Commissioners may, within 30 days of the receipt of the application or of any further particulars previously required under this subsection, by notice require the applicant to furnish further particulars for the purpose of enabling the Commissioners to make their decision and if any such notice is not complied with within 30 days or such longer period as the Commissioners may allow, the Commissioners need not proceed further on the application.

    (3)   The Board shall notify their decision to the applicant within 30 days of receiving the application or, if they give a notice under subsection (2) above, within 30 days of the notice being complied with.

    (4)   If the Commissioners notify the applicant that they are not satisfied that the transaction in question does not have a main purpose of achieving a UK tax advantage or do not notify their decision to the applicant within the time required by subsection (3) above, the applicant may within 30 days of the due date for a decision in accordance with this section require the Commissioners to transmit the application, together with any notice given and further particulars furnished under subsection (2) above, to the Special Commissioners and in that event any notification by the Special Commissioners shall have effect for the purposes of subsection (1) above as if it were a notification by the Commissioners.

    (5)   If any particulars furnished under this section do not fully and accurately disclose all facts and considerations material for the decision of the Commissioners or the Special Commissioners, any resulting notification of a decision by the Commissioners or Special Commissioners shall be void.'.

Prepared 28 Jun 2005