S.C.A.
Amendment Paper as at
Thursday 25th 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
187
Schedule 8, page 202, line 23 [Vol I], leave out from 'if' to 'the in line 24.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
188
Schedule 8, page 213, line 25 [Vol I], leave out from 'is' to 'that' in line 26.
Dawn Primarolo
112
Schedule 8, page 214 [Vol I], leave out lines 4 and 5.
Dawn Primarolo
190
Schedule 8, page 214, line 9 [Vol I], at end insert—
'(4) The first order made under this section may include provisions having effect in relation to times before the making of the order (but not times earlier than 1st April 2006).'.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
189
Schedule 8, page 215, line 19 [Vol I], leave out from 'if' to second 'the in line 20.
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".'.
Dawn Primarolo
116
Schedule 8, page 245, line 39 [Vol I], at end insert—
'This sub-paragraph is subject to sub-paragraphs (5) and (6).'.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
163
Schedule 8, page 246, line 2 [Vol I], leave out 'April' and insert 'September'.
Dawn Primarolo
117
Schedule 8, page 246, line 6 [Vol I], leave out from beginning to first 'the' in line 8 and insert—
| '(a) | the commencement of the term of the lease was before 1st April 2006, but |
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
164
Schedule 8, page 246, line 6 [Vol I], leave out 'April' and insert 'September'.
Dawn Primarolo
118
Schedule 8, page 246, line 13 [Vol I], at end insert—
| | '(5) | Where the amendments made by this Schedule do not have effect in relation to a lease in the case of the lessor but— |
(a) there is a transfer of plant or machinery,
(b) immediately before the transfer, the lessor is within the charge to tax, and
(c) the transfer is in circumstances such that, if the amendments made by this Schedule did apply in relation to the lease, section 70W(4)(b) of CAA 2001 (transfers, assignments etc by lessor) would have effect in relation to the new lessor to treat the new lease as a lease which is not a long funding lease,
the amendments made by this Schedule do not have effect in relation to the new lease in the case of the new lessor.
"the new lease" means the lease that would be the new lease for the purposes of section 70W of CAA 2001, if that section applied;
"the new lessor" means the person who would be the new lessor for the purposes of that section, if that section applied;
and section 70W(7) of CAA 2001 (construction of references to transfer of plant or machinery) also has effect for the purposes of this sub-paragraph.
| (6) | Where the amendments made by this Schedule do not have effect in relation to a lease in the case of the lessee but— |
(a) there is a transfer of plant or machinery,
(b) immediately before the transfer, the lessee is within the charge to tax, and
(c) the transfer is in circumstances such that, if the amendments made by this Schedule did apply in relation to the lease, section 70X(4)(b) of CAA 2001 (transfers, assignments etc by lessee) would have effect in relation to the new lessee to treat the new lease as a lease which is not a long funding lease,
the amendments made by this Schedule do not have effect in relation to the new lease in the case of the new lessee.
"the new lease" means the lease that would be the new lease for the purposes of section 70X of CAA 2001, if that section applied;
"the new lessee" means the person who would be the new lessee for the purposes of that section, if that section applied.
and section 70X(7) of CAA 2001 (construction of references to transfer of plant or machinery) also has effect for the purposes of this sub-paragraph.
| (7) | In the application of section 70W(4)(b) or 70X(4)(b) of CAA 2001 for the purposes of sub-paragraph (5) or (6), the lease mentioned in the opening words of the sub-paragraph in question is to be regarded as a lease which is not a long funding lease.'. |
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
185
Schedule 9, page 258, line 1 [Vol I], leave out from beginning to end of line 17 on page 259.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
165
Schedule 9, page 260 [Vol I], leave out lines 17 to 31.
Dawn Primarolo
119
Schedule 9, page 261, line 3 [Vol I], after 'treated' insert 'by that person'.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
166
Schedule 9, page 261, line 29 [Vol I], leave out 'April' and insert 'September'.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
167
Schedule 9, page 261, line 37 [Vol I], leave out 'April' and insert 'September'.
Dawn Primarolo
96
Clause 84, page 79, line 18 [Vol I], leave out from first 'the' to 'all' in line 19 and insert 'lessor remains entitled immediately after the disposal to some or'.
Dawn Primarolo
97
Clause 84, page 79, line 37 [Vol I], leave out from second 'the' to end of line 38 and insert 'lessor remains entitled immediately after the disposal'.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
170
Schedule 11, page 22, line 3 [Vol II], leave out from beginning to end of line 16.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
171
Schedule 11, page 22 [Vol II], leave out lines 8 to 16 and insert—
'(2) Accordingly, in section 432A of ICTA 1988 in subsection (5) (power to extend orders under subsection (3) in relation to periods of account ending before 1st October 2007), substitute "1st October 2006" with "1st October 2007".'.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
193
Schedule 11, page 22, line 30 [Vol II], at end insert—
| '2A | (1) | Sections 439B and 441 ICTA 1988 shall cease to have effect and section 436 shall be amended by substituting "Gross Roll-up Business" for "Pension Business" in each place that it occurs. |
| (2) | "Gross Roll-up Business" means all long-term business written other than Basic Life Assurance, General Annuity Business and Permanent Health Insurance.'. |
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
172
Schedule 11, page 29, line 30 [Vol II], leave out from beginning to end of line 41 on page 30.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
173
Schedule 11, page 33, line 18 [Vol II], leave out paragraph 7.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
179
Schedule 11, page 33, line 40 [Vol II], at end insert—
'(3A) Where the line 51 amount for the straddling period is greater than the line 51 amount for any subsequent period, and the line 51 amount is then increased in a period following that subsequent period, the adjustment produced by subsection (3) above shall be reduced by an amount equal to the lower of:
| (a) | the difference between the line 51 amount for the straddling period and the line 51 amount for the current period of account; and |
| (b) | the line 51 amount for the current period of account, and the line 51 amount for the immediately preceding period, |
but the amount computed under this subsection shall be reduced by the total sum of adjustments made in periods prior to the current period of account under this subsection.'.
