 House of Commons |
Publications on the internet Index of Amendments |
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Amendment Paper as at
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| (a) | in the definition of "personal pension scheme", substitute for the words "or lump sums" the words ", lump sums, or sums for investment in a 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". |
(3) 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 to a member of income from a Retirement Income Fund satisfying the conditions in section 637B". |
(4) 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) | in subsection (2) the words from "commence" to the end are replaced by the following— |
"(a) before the member attains the age of 50; or
(b) in relation to a member who is in receipt of benefits under section 634A before the date of this Act's entry into force, after the member attains the age of 75; or
(c) in relation to any member aged 65 or over as at the date of this Act's entry into force, within twelve months of that date; or
(d) in relation to all other members, after the member attains the age of 65.".
| (c) | after subsection (6) there is inserted— |
| "(7) | Section 45 of the Sex Discrimination Act 1975 shall not apply to the annuity provided under subsection (1A). |
| (8) | The income provided each year from the annuity under section (1A) must increase by reference to increases in the retail price index, so far as not exceeding 5%". |
(5) Sections 634A and 636A are repealed.
(6) Subsection (4) shall not apply to schemes executed before the date of entry into effect of this Act.
(7) 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 the Inland Revenue. |
(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."
(8) 'Minimum Retirement Income' means such amount as shall be set annually by the Chancellor of the Exchequer by order.".'.
Independent Fiscal Projections Committee
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Gregory Barker
NC3
To move the following Clause:—'(1) There shall be established an Independent Fiscal Projections Committee of the Bank of England.
(2) The Independent Fiscal Projections Committee shall have as its principal functions the review and monitoring of fiscal projections made by the Treasury in pre-Budget and Budget reports and the expression of an opinion as to the timing of the beginning and the end of each economic cycle.
(3) The committee shall publish reports concerning its functions as often as the committee shall deem appropriate, but not less than twice in each year.
(4) The committee shall have not fewer than six and not more than twelve members.
(5) The members of the committee shall be appointed by the Governor for the time being of the Bank of England.'.
Tax Law Commission
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Gregory Barker
NC4
To move the following Clause:—'(1) The Treasury shall prepare and present to Parliament a proposal for the establishment of a Tax Law Commission, to act in parallel to and to complement the work of the Law Commission.
(2) The Tax Law Commission shall have as its purpose the bringing forward of proposals for the review, modernisation, improvement and simplification of the tax law of the United Kingdom.
(3) The report shall have regard to all factors that seem to the Treasury to be relevant following consultation with any bodies appearing to Her Majesty's Revenue and Customs to have an interest in tax law reform.
(4) The report shall be presented to Parliament by 31st July 2006.
Inheritance tax: mitigation of double charges
Mr Philip Hammond
Mr Richard Spring
Mr Mark Field
Mr Mark Francois
Gregory Barker
NC5
To move the following Clause:—'The Finance Act 1986 is amended as follows:—After section 104 there is inserted—
| "104A (1)] | This section provides for the mitigation to the extent specified, of double charges to tax arising in the circumstances specified (in subsection (2)). |
| (2) | The specified circumstances are— |
(a) an individual ('the deceased') makes a transfer of value to a person ('the transferee') of property which comprises a debt owed to him by another ('the debt'), and
(b) the transfer is or proves to be a chargeable transfer, and
(c) the deceased dies on or after 31st July 2005 and within seven years of the transfer of value, and
(d) at the date of the deceased's death all or part of the debt has been written off, waived or released by the transferee or by any other person and such write off, waiver or release was made otherwise than for full consideration in money or money's worth, and
(e) that part of the debt which is written off, waived or released was before such event, represented by or was attributable to or its value was derived in part or whole directly or indirectly from, other property being relevant property within the meaning given in paragraph 21 or 22 of Schedule 15 to the Finance Act 2004, and
(f) the deceased is for the purposes of IHTA 1984 or section 102(3) Finance Act 1986 beneficially entitled immediately before his death to the relevant property or if not so beneficially entitled the relevant property was the subject of a potentially exempt transfer by virtue of section 102(4) of the Finance Act 1986, and
(g) the relevant property—
| (i) | is comprised in the estate of the deceased immediately before his death within the meaning of section 5(1) of the Inheritance Tax Act 1984 and the value attributed to it is transferred by a chargeable transfer under section 4 of that Act, or |
| (ii) | is property transferred by the potentially chargeable transfer to which sub-paragraph (f) applies, value attributable to which is transferred by a chargeable transfer. |
| (3) | Where this section applies, there shall be calculated, separately in accordance with sub-paragraphs (a) and (b), the total tax chargeable as a consequence of the death of the person— |
(a) disregarding so much of the value transferred by the transfer of value of the debt (being the property to which paragraph (2)(a) refers) to the extent that the debt has been written off in accordance with paragraph (2)(d) above, and
(b) disregarding so much of the value transferred by the transfer of value of the relevant property (being property to which paragraph (2)(g) refers) as is represented by or attributable to the value of that part of the debt which has been written off, waived or released in accordance with sub-paragraph (2)(d).
| (4) |
(a) Whichever of the two amounts of tax calculated under paragraphs (3)(a) or (b) is the lower amount shall be treated as reduced to nil but subject to sub-paragraph (4)(b) the higher amount shall be payable.
(b) Where the amount calculated under paragraph (3)(a) is higher than the amount calculated under (3)(b)—
| (i) | so much of the tax chargeable on the value transferred by the chargeable transfer to which paragraph (2)(g) refers as is attributable to the amount of that value which falls to be disregarded by virtue of paragraph (ii) shall be treated as a nil amount, and |
| (ii) | for all the purposes of the 1984 Act so much of the value transferred by the debt to which paragraph (2)(a) refers as is attributable to the property to which paragraph (2)(d) refers shall be disregarded.".'. |
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| ©Parliamentary copyright 2005 | Prepared 6 Jul 2005 |