Amendments proposed to the Note - continued House of Commons

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Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous

106

Clause     70,     page     57,     line     10     [Vol     I],     at end insert—

    '184DA   Sections 8, 184A and 184B: meaning of "main purpose"

       For the purposes of sections 8, 184A and 184B "main purpose" means a purpose without which the underlying commercial transaction would not have occurred.'.

   

Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous

107

Clause     70,     page     60,     line     4     [Vol     I],     at end insert—

    '(4A)   At the end of section 176, add—

    "(10)   This section shall not apply to companies for disposals accruing after 5th December 2005."'.

   

Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous

108

Clause     70,     page     60,     line     6     [Vol     I],     leave out from '212)' to end of line 13 and add 'subsections (8H) and (8I) shall cease to have effect.'.

   

Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous

109

Clause     70,     page     60     [Vol     I],     leave out lines 25 to 28.

   

Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous

110

Clause     70,     page     60,     line     29     [Vol     I],     leave out from beginning to end of line 2 on page 61.


   

Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous

99

Clause     71,     page     61,     line     30     [Vol     I],     at end insert—

    '(5A)   The chargeable gain accruing to a company shall not be taxed as a chargeable gain but instead shall be taxed as income in accordance with section 9 of the Income and Corporation Taxes Act 1988.'.

   

Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous

100

Clause     71,     page     61     [Vol     I],     leave out lines 31 to 44.

   

Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous

101

Clause     71,     page     62,     line     47     [Vol     I],     at end insert—

    '(5A)   Subsection (2)(b) above shall not apply where, before the end of the accounting period in which the allowable loss accrues, the Board have on the application of the company notified the company that the Board are satisfied that the disposal or deemed disposal does not accrue in disqualifying circumstances.

    (5B)   Subsection (2)(b) shall be subject to the same procedures as those contained in section 138(2) to (5).'.

   

Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous

111

*Clause     71,     page     62,     line     47     [Vol 1],     at end insert—

    '(5A)   The chargeable gain accruing to a company shall not be taxed as a chargeable gain but instead shall be taxed as income in accordance with section 9 of the Income and Corporation Taxes Act 1988.'.

   

Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous

102

Clause     71,     page     63,     line     1     [Vol     I],     leave out from beginning to end of line 18 on page 65.

   

Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous

98

Page     61,     line     3     [Vol     I],     leave out Clause 71.


   

Dawn Primarolo

66

Schedule     6,     page     185,     line     5     [Vol     I],     leave out sub-paragraph (1) and insert—

'(1) After section 85B of FA 1996 (amounts recognised in determining company's profit or loss) insert—

    "85C   Amounts not fully recognised for accounting purposes

    (1)   This section applies if—

(a) a company is, or is treated as being, a party to a creditor relationship in any period,

(b) an amount is not fully recognised for the period in respect of the creditor relationship,

(c) the company is, or is treated as being, a party to a debtor relationship in the period or has at any time issued share capital which falls to be treated for accounting purposes as a liability (a "relevant accounting liability") for the period,

(d) an amount is not fully recognised for the period in respect of the debtor relationship or relevant accounting liability, and

(e) the amounts are not fully recognised as mentioned in paragraphs (b) and (d) as a result of the application of generally accepted accounting practice in relation to the creditor relationship and the debtor relationship or relevant accounting liability.

    (2)   For the purposes of subsection (1) an amount is not fully recognised for the period in respect of any loan relationship or relevant accounting liability of the company if—

(a) no amount in respect of the relationship or liability is recognised in determining its profit or loss for the period, or

(b) an amount in respect of only part of the relationship or liability is recognised in determining its profit or loss for the period.

    (3)   In determining the credits and debits to be brought into account by the company in respect of the creditor relationship for the period for the purposes of this Chapter, the applicable assumption (see subsection (6)) must be made.

    (4)   In any case where the condition in subsection (1)(c) is met by reference to a debtor relationship of the company, in determining the credits and debits to be brought into account by the company in respect of that relationship for the period for the purposes of this Chapter, the applicable assumption must be made.

    (5)   But the amount of any debits to be brought into account by the company for any period for the purposes of this Chapter as a result of subsection (4) must not exceed the amount of any credits to be brought into account by the company for the period as a result of subsection (3).

    (6)   For the purposes of this section, in relation to any loan relationship, the applicable assumption is the assumption that an amount in respect of the whole of the relationship is recognised in determining the company's profit or loss for the period.

    (7)   In any case where—

(a) apart from this section any credits or debits are brought into account by the company in respect of any loan relationship for the period for the purposes of this Chapter, and

(b) the relationship is one to which this section applies,

the credits and debits to be so brought into account as a result of this section must be determined on the same basis of accounting on which the credits or debits mentioned in paragraph (a) were determined.

    (8)   In any other case, the credits and debits to be so brought into account as a result of this section must be determined on the amortised cost basis of accounting.".'.

   

Dawn Primarolo

67

Schedule     6,     page     187,     line     42     [Vol     I],     leave out 'relevant'.

   

Dawn Primarolo

68

Schedule     6,     page     188     [Vol     I],     leave out lines 6 and 7.

   

Dawn Primarolo

69

Schedule     6,     page     188,     line     18     [Vol     I],     at end insert—

'(5A) The amendments made by sub-paragraphs (2) and (3) have effect in relation to any share held by a company on or after 12th May 2006 in any case where—

(a)   the share is redeemable for the purposes of section 91D of FA 1996 as a result of any arrangements mentioned in subsection (2)(b) of that section (as substituted by sub-paragraph (2)), and

(b)   the arrangements were entered into after the company acquired the share.

(5B) But in that case, in relation to an accounting period beginning before 12th May 2006, amounts are to be brought into account for the purposes of Chapter 2 of Part 4 of FA 1996 as a result of those amendments only if the amounts relate to any time on or after that date.'.

   

Dawn Primarolo

70

Schedule     6,     page     188,     line     19     [Vol     I],     at beginning insert 'In any other case,'.


   

Dawn Primarolo

73

Schedule     7,     page     196,     line     31     [Vol I],     leave out 'the transfer and any associated operations' and insert 'such of the relevant transactions as were'.

   

Dawn Primarolo

74

Schedule     7,     page     196,     line     42     [Vol I],     leave out from first 'to' to second 'the' in line 43 and insert 'relevant transactions by reference to which'.

   

Dawn Primarolo

75

Schedule     7,     page     197,     line     1     [Vol I],     leave out 'other associated operations' and insert 'associated operations not falling within paragraph (a) above'.

   

Dawn Primarolo

76

Schedule     7,     page     197,     line     32     [Vol I],     at end insert—

' "relevant transactions" means—

(a) the transfer, and

(b) any associated operations.'.


   

Dawn Primarolo

112

*Schedule     8,     page     214     [Vol I],     leave out lines 4 and 5.

   

Dawn Primarolo

113

*Schedule     8,     page     216,     line     6     [Vol I],     after 'lease' insert '("the new lease")'.

   

Dawn Primarolo

114

*Schedule     8,     page     217,     line     11     [Vol I],     after 'lease' insert '("the new lease")'.

   

Dawn Primarolo

115

*Schedule     8,     page     245     [Vol I],     leave out lines 38 and 39 and insert—

'unless the lease was finalised (see paragraph 23) before 21st July 2005 and on 17th May 2006 the lessor was within the charge to tax.

As respects any time before 18th May 2006, this sub-paragraph has effect with the omission of the words "and on 17th May 2006 the lessor was within the charge to tax".'.

 
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