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

   

Chris Huhne
Susan Kramer
Stephen Williams

NC6

To move the following Clause:—

    '(1)   Section 158 of the Finance Act 2004 (c.12) shall be amended as follows.

    (2)   After subsection (1) (f) insert ", or

(g)	that the investments of the scheme are invested to a significant extent in prohibited investments.".

    (3)   After subsections (5) insert—

    "(6)   In subsection (1), the test 'a significant extent' is satisfied if 20 per cent, or more by value of the pension scheme over a three year period is so invested.

    (7)   For the purposes of subsection (1)(f), 'prohibited investments' are—

(a)	investments of a nature that are not normally held for the purposes of producing an income return; or

(b)	residential property occupied other than under an agreement with housing association or owned by an investment trust properly regulated for the purpose.".'.

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Road fuel regulator

   

Mr Alex Salmond
Stewart Hosie
Lady Hermon
Mr Nigel Dodds

NC7

*To move the following Clause:—

'In the Hydrocarbon Oil Duties Act 1979 (c. 5) section 6 (excise duty on hydrocarbon oil) there is inserted after subsection (1A)—

    "(1B)   In every Budget Statement the Chancellor of the Exchequer shall publish a forecast based on the expected direction of international oil prices.

    (1C)   When the average price per litre of a fuel listed in subsection (1A) above increases by more than 3 pence over any period of six months, the Chancellor of the Exchequer shall make regulations reducing the duty rate on that fuel and that reduction in fuel duty shall be based on the increase in the cost per litre accounted for by VAT.

    (1D)   Whenever international oil prices rise above the level estimated by the forecast made in accordance with subsection (1B) above on indexed fuel duty increases shall be frozen until the international oil prices return to the forecast level.".'.

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Inheritance Tax (No. 2)

   

Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Gregory Barker

NC8

*To move the following Clause:—

       'The Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2004 (S.I., 2004, No. 2543) are amended, in Regulation 6, line 4, by omitting "must" and inserting "may".'.

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Real estate investment trusts

   

Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Gregory Barker

NC9

*To move the following Clause:—

    '(1)   The ICTA 1988 is amended, by inserting after section 842A—

       "Real Estate Investment Trusts

The Treasury shall, by regulations, to be laid prior to 31st October 2005—

(a)	make provision about the treatment of Real Estate Investment Trusts for the purposes of any enactment relating to the taxation or Stamp Duty Land Tax, and may make provsions for separate sub-funds of such trusts;

(b)	impose requirements on a company as to the conditions that need to be met for a company to be a Real Estate Investment Trust for an accounting period;

(c)	provide for the modification of any enactment relating to taxation in its application in relation to—

(i)	Real Estate Investment Trusts,

(ii)	shareholders in Real Estate Investment Trusts; or

(iii)

transactions involving Real Estate Investment Trusts;

(d)	make provision for transitional arrangements for companies incorporated before 1st January 2006 that become Real Estate Investment Trusts on or after the 1st January 2006.".

    (2)   This section shall come into effect the month after the passing of this Act.'.

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Pensions annuities (No.2)

   

Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Gregory Barker

NC10

*To move the following Clause:—

'The Income and Corporation Taxes Act 1988 is amended as follows—

    (1)   In subsection (1) of section 630 (interpretation)—

(a)	in the definition of "personal pension scheme", substitute for the words "or lump sums" the words ", lump sums, or sums for investment in Retirement Income Fund"; and

(b)	in the definition of " income withdrawal", insert after the word "annuity" the words " or withdrawal of funds from a Retirement Income Fund".

    (2)   In section 633 (scope of benefits)—

(a)	in subsection (1)(a), the words from "section 634" to the end are omitted;

(b)	in subsection (1)(c), the words from "section 636" to the end are omitted; and

(c)	after subsection (1)(e) there is inserted—

"(f)	the payment of any sum to a member's Retirement Income Fund satisfying the conditions in section 637B".

    (3)   In section 634 (annuity to member)—

(a)	after subsection (1) there is inserted—

    "(1A)   Subject to subsection (7) below, the annuity must provide the member with an annual income not less than the Minimum Retirement Income."

(b)	after subsection (6) there is inserted—

    "(7)   The income provided each year from the annuity under section (1A) must increase at least at the rate of increase in the retail price index, so far as such increase does not exceed 5% per annum."

    (4)   Sections 634A and 636A are repealed.

    (5)   Subsection (4) shall not apply to schemes executed before the date of entry into effect of this Act.

    (6)   After section 637A (Return of contributions on death of a member), the following section is inserted—

       "637B Retirement Income Fund

    (1)   Subject to subsections (2) and (3) of this section, a Retirement Income Fund is a vehicle for the reinvestment of savings in retirement, which

(a)	has been established by a person designated by subsection (1) of section 632; and

(b)	is a vehicle whose investments are—

(i)	investments of a kind described in the Insurance Companies Regulations 1994, Schedule X, Part 1; or

(ii)	approved by Her Majesty's Commissioners of Revenue and Customs.

    (2)   Funds held in a Retirement Income Fund as referred to in subsection (1) may be withdrawn from the Retirement Income Fund by the member as and when he elects.

    (3)   A member may not invest in a Retirement Income Fund unless the requirements of subsection (1A) of section 634, in relation to the Minimum Retirement Income, are satisfied.

    (4)   A Retirement Income Fund, and any income derived from it, must not be capable of assignment or surrender by the member.

    (5)   Any withdrawal from the Fund by the member under subsection (2) shall be regarded as 'income' within section 1 of this Act.".

    (7)   "Minimum Retirement Income" means such amount as shall be set annually by the Chancellor of the Exchequer by order.'.

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Chris Huhne
Susan Kramer
Stephen Williams

4

*Page     11,     line     26,     leave out Clause 11.

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Chis Huhne
Susan Kramer
Stephen Williams

1

Page     12,     line     7     [Clause     11],     leave out 'year' and insert 'month'.

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Chis Huhne
Susan Kramer
Stephen Williams

2

Page     17,     line     39     [Clause     18],     at end insert 'for the purpose of avoiding any tax.'.

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Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Gregory Barker

5

*Page     131,     line     14     [Schedule     9],     at end insert ' ; but no order under this section shall be made unless a draft has been laid before and approved by resolution of the House of Commons.'.

   

Chris Huhne
Susan Kramer
Stephen Williams

6

*Page     131,     line     43     [Schedule     9],     at end insert—

    '(8)   No order under this section shall be made unless a draft of it has been laid before and approved by a resolution of the House of Commons.'.

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Prepared 4 Jul 2005