S.C.A.
Amendment Paper as at
Tuesday 23rd May 2006
STANDING COMMITTEE A
New Amendments handed in are marked thus *
FINANCE (NO. 2) BILL
(except Clauses 13 to 15, 26, 61, 91 and 106, Schedule 14, and new Clauses relating to the effect of provisions of the Bill on section 18 of the Inheritance Tax Act 1984)
NOTE
The amendments have been arranged in accordance with the Order of the Committee [9th May]
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
92
Clause 56, page 43, line 20 [Vol I], leave out 'shall' and insert 'may at the election of the charity'.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
93
Clause 56, page 43, line 26 [Vol I], leave out 'shall' and insert 'may at the election of the charity'.
Dawn Primarolo
71
Clause 57, page 43 [Vol I], leave out line 36.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
94
Page 44, line 3 [Vol I], leave out Clause 58.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
95
Clause 58, page 44, line 11 [Vol I], at end insert—
'(3A) After subsection (3E) insert—
"(3F) Reliefs under this section shall be as follows—
| (a) | for donations not exceeding £100, 25 per cent. of the gift; |
| (b) | for donations exceedings £100 but not exceeding £1000, £25; and |
| (c) | for donations exceeding £1000, 2.5 per cent. of the gift up to a maximum of £2500.".'. |
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
103
Clause 69, page 54, line 10 [Vol I], at end insert—
'(2D) Arrangements where the tax advantage arises due to the creation or utilisation of an allowable loss shall not be treated as arrangements for the purposes of Part VII of the Finance Act 2004.
(2E) Where an allowable loss accrues to a company in circumstances that are not disqualifying circumstances, then for the purposes of the Tax Acts it should be assumed that the Promoter and the company did not wish that the element of the arrangements that secured a tax advantage not to be disclosed to any other promoter or Her Majesty's Revenue and Customs."'.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
105
Clause 69, page 54, line 10 [Vol I], at end insert—
'(2D) Subsection (2)(b) above shall not apply where, before the end of the accounting period in which the allowance 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.
(2E) Subsection (2D) shall be subject to the same procedures contained within section 138(2) to (5)."'.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
104
Clause 69, page 55, line 4 [Vol I], after 'enforceable)', insert 'but arrangements shall not include any election under section 24, 161 or 171A and shall not apply to either the whole or part of the loss to the extent that the allowable loss corresponds to an equivalent economic loss suffered by the company'.
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.".'.
