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S.C.B.  Standing Committee Proceedings: 30th June 2005            

40

 

Finance Bill, continued

 
 

Mr Philip Hammond

 

Mr Richard Spring

 

Mr Mark Field

 

Mr Mark Francois

 

Mr David Ruffley

 

 

Not called  149

 

Clause  51,  page  42,  leave out lines 13 and 14.

 

Mr Philip Hammond

 

Mr Richard Spring

 

Mr Mark Field

 

Mr Mark Francois

 

Mr David Ruffley

 

 

Not called  150

 

Clause  51,  page  43,  leave out line 18.

 

Mr Philip Hammond

 

Mr Richard Spring

 

Mr Mark Field

 

Mr Mark Francois

 

Mr David Ruffley

 

 

Not called  151

 

Clause  51,  page  43,  leave out line 45.

 

Clause Agreed to.

 


 

Mr Philip Hammond

 

Mr Richard Spring

 

Mr Mark Field

 

Mr Mark Francois

 

Mr David Ruffley

 

 

Not called  152

 

Clause  52,  page  44,  leave out line 21.

 

Clause Agreed to.

 


 

Mr Philip Hammond

 

Mr Richard Spring

 

Mr Mark Field

 

Mr Mark Francois

 

Mr David Ruffley

 

 

Not called  153

 

Clause  53,  page  45,  leave out line 20.


 
 

S.C.B.  Standing Committee Proceedings: 30th June 2005            

41

 

Finance Bill, continued

 
 

Clause Agreed to.

 


 

Mr Philip Hammond

 

Mr Richard Spring

 

Mr Mark Field

 

Mr Mark Francois

 

Mr David Ruffley

 

 

Not called  154

 

Clause  54,  page  46,  leave out line 34.

 

Mr Philip Hammond

 

Mr Richard Spring

 

Mr Mark Field

 

Mr Mark Francois

 

Mr David Ruffley

 

 

Withdrawn  155

 

Clause  54,  page  47,  line  28,  at end add ‘and section 138 of TCGA 1992 (clearance

 

in advance) shall apply to this sub-paragraph as it applies to section 137 of that Act (with

 

any necessary modifications).’.

 

Clause Agreed to.

 


 

Mr Philip Hammond

 

Mr Richard Spring

 

Mr Mark Field

 

Mr Mark Francois

 

Mr David Ruffley

 

 

Not called  156

 

Clause  55,  page  48,  leave out line 2.

 

Mr Philip Hammond

 

Mr Richard Spring

 

Mr Mark Field

 

Mr Mark Francois

 

Mr David Ruffley

 

 

Withdrawn  157

 

Clause  55,  page  48,  line  29,  after ‘a’, insert ‘formation of an SE by’.


 
 

S.C.B.  Standing Committee Proceedings: 30th June 2005            

42

 

Finance Bill, continued

 
 

Mr Philip Hammond

 

Mr Richard Spring

 

Mr Mark Field

 

Mr Mark Francois

 

Mr David Ruffley

 

 

Not called  158

 

Clause  55,  page  48,  line  39,  at end add ‘and section 138 of TCGA 1992 (clearance

 

in advance) shall apply to this sub-paragraph as it applies to section 137 of that Act (with

 

any necessary modifications).’.

 

Clause Agreed to.

 


 

Mr Philip Hammond

 

Mr Richard Spring

 

Mr Mark Field

 

Mr Mark Francois

 

Mr David Ruffley

 

 

Withdrawn  159

 

Clause  56,  page  49,  line  5,  leave out ‘ a qualifying’ and insert ‘an’

 

Dawn Primarolo

 

Agreed to  144

 

Clause  56,  page  49,  line  7,  after ‘applies’, insert ‘(or would apply but for section

 

140E(1)(d)).’.

 

Dawn Primarolo

 

Agreed to  145

 

Clause  56,  page  49,  leave out lines 17 and 18 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 resident in 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.”.’.


 
 

S.C.B.  Standing Committee Proceedings: 30th June 2005            

43

 

Finance Bill, continued

 
 

Mr Philip Hammond

 

Mr Richard Spring

 

Mr Mark Field

 

Mr Mark Francois

 

Mr David Ruffley

 

 

Not called  160

 

Clause  56,  page  49,  leave out lines 17 and 18.

 

Clause, as amended, Agreed to.

 

Clauses 57 to 64 Agreed to.

 


 

Mr Philip Hammond

 

Mr Richard Spring

 

Mr Mark Field

 

Mr Mark Francois

 

Mr David Ruffley

 

 

Withdrawn  161

 

Clause  65,  page  54,  line  11,  leave out ‘resident in the United Kingdom’.

 

Mr Philip Hammond

 

Mr Richard Spring

 

Mr Mark Field

 

Mr Mark Francois

 

Mr David Ruffley

 

 

Not called  162

 

Clause  65,  page  54,  line  19,  leave out from ‘the’ to end of line 24 and insert ‘most

 

recent relevant event in relation to the company from which the asset was so

 

transferred;”.’.

 

Mr Philip Hammond

 

Mr Richard Spring

 

Mr Mark Field

 

Mr Mark Francois

 

Mr David Ruffley

 

 

Not called  163

 

Clause  65,  page  54,  line  28,  leave out subsections (4) and (5).


 
 

S.C.B.  Standing Committee Proceedings: 30th June 2005            

44

 

Finance Bill, continued

 
 

Clause Agreed to.

 

Clauses 66 to 68 Agreed to.

 


 

New Clauses

 

Advance clearance

 

Mr Philip Hammond

 

Mr Richard Spring

 

Mr Mark Field

 

Mr Mark Francois

 

Mr David Ruffley

 

Negatived on division  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.’.

 



 
 

S.C.B.  Standing Committee Proceedings: 30th June 2005            

45

 

Finance Bill, continued

 
 

Right of appeal

 

Mr Philip Hammond

 

Mr Richard Spring

 

Mr Mark Field

 

Mr Mark Francois

 

Mr David Ruffley

 

Not called  nc2

 

To move the following Clause:—

 

‘Appeals against a notice issued by the Commissioners of Her Majesty’s Customs

 

and Revenue under section 24 or section 26.

 

(1)    

Any company to whom a notice has been given under section 24 or 26

 

may within 30 days by notice to the Special Commissioners appeal on the

 

grounds that section 24 or section 26, as appropriate, does not apply to

 

the company in respect of the transaction or transactions in question, or

 

that the adjustments directed to be made are not appropriate adjustments.

 

(2)    

If the Commissioners or the company are dissatisfied with the

 

determination of the Special Commissioners the company or the

 

Commissioners may, on giving notice to the clerk to the Special

 

Commissioners within 30 days after the determination, require the appeal

 

to be re-heard by the tribunal, and the Special Commissioners shall

 

transmit to the tribunal any document in their possession which was

 

delivered to them for the purposes of the appeal.

 

(3)    

Where notice is given under subsection (2) above, the tribunal shall re-

 

hear and re-determine the appeal and shall have and exercise the same

 

powers and authorities in relation to the appeal as the Special

 

Commissioners might have and exercise, and the determination of the

 

tribunal thereon shall be final and conclusive.

 

(4)    

On an appeal under subsection (1) and (3) above the Special

 

Commissioners or the tribunal shall have power to cancel or vary a notice

 

under section 24 or section 26 of this Act, or to vary or quash an

 

assessment made in accordance with such a notice, but the bringing of an

 

appeal or the statement of a case shall not affect the validity of a notice

 

given or of any other thing done in pursuance of those sections pending

 

the determination of the proceedings.’.

 


 

Treasury consent

 

Mr Philip Hammond

 

Mr Richard Spring

 

Mr Mark Field

 

Mr Mark Francois

 

Mr David Ruffley

 

Withdrawn  nc3

 

To move the following Clause:—

 

‘Sections 765, 765A, 766 and 767 of ICTA shall cease to have effect from 1st

 

September 2005.’.


 
 

S.C.B.  Standing Committee Proceedings: 30th June 2005            

46

 

Finance Bill, continued

 
 

Clause 70 Agreed to.

 


 

Pension scheme regulation

 

Chris Huhne

 

Susan Kramer

 

Stephen Williams

 

Not selected  nc4

 

To move the following Clause:—

 

‘(1)    

Section 158 of the Finance Act 2004 is amended as follows.

 

(2)    

At the end of subsection (1)(f) insert—

 

    

“, or

 

(g)    

that the investments of the scheme of 20 per cent. or more by

 

value of the pension scheme over a three year period are invested

 

in prohibited investments.”

 

(3)    

After subsection (5) insert—

 

“(6)    

For the purposes of subsection (1), “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

 

a housing association or owned by an investment trust properly

 

regulated for the purpose.”.’.

 


 

Mr Philip Hammond

 

Mr Richard Spring

 

Mr Mark Field

 

Mr Mark Francois

 

Mr David Ruffley

 

Not called  57

 

Schedule  11,  page  155,  line  27,  at end insert—

 

‘Income and Corporation Taxes Act 1988

Section 765

 
  


 
  

Section 765A

 
  


 
  

Section 766

 
  


 
  

Section 767’.

 
 


 
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