S.C.A.
Amendment Paper as at
Thursday 8th June 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
208
Schedule 16, page 84, line 32 [Vol II], leave out paragraph 11.
Sir George Young
218
Clause 107, page 98, line 23 [Vol I], at end insert—
'(4A) Condition 2A is that a percentage of the assets of the property rental business to be prescribed in regulations made by the Commissioners for Her Majesty's Revenue and Customs is invested in residential property.'.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
209
Clause 111, page 100, line 39 [Vol I], at end add—
'(8) Where assets involved in the property rental business are held as trading stock, any profit accruing by reason of this section shall not be a taxable profit.'.
Dawn Primarolo
168
Clause 116, page 103, line 28 [Vol I], after 'section', insert '106(5) or (6),'.
Dawn Primarolo
169
Clause 116, page 103, line 32 [Vol I], after 'section', insert '106(5) or (6),'.
Dawn Primarolo
146
Clause 116, page 103, line 34 [Vol I], at end insert—
| '(a) | provide for this Part to cease to apply to a company at a time specified by or determined in accordance with the regulations (which may be before the breach of a requirement); |
| (b) | provide for this Part to continue to apply to a company with specified modifications;'. |
Dawn Primarolo
147
Clause 121, page 106, line 26 [Vol I], after 'company', insert 'within the charge to corporation tax'.
Dawn Primarolo
148
Clause 121, page 106, line 28 [Vol I], leave out 'not a company' and insert 'a person other than a company within the charge to corporation tax'.
Dawn Primarolo
149
Clause 121, page 107, line 7 [Vol I], leave out 'Section 231 of ICTA' and insert 'Sections 231 of ICTA and 397 of ITTOIA 2005'.
Dawn Primarolo
150
Clause 125, page 110, line 5 [Vol I], leave out 'earlier' and insert 'later'.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
210
Clause 125, page 110, line 7 [Vol I], at end insert—
'(7A) For the purposes of this section completion of development shall be taken to occur on practical completion of the main contract for the relevant building works.'.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
211
Clause 125, page 110, line 7 [Vol I], at end insert—
'(7B) For the purposes of subparagraph 7(b) of this section, each development of property shall be assessed separately to establish if the costs exceed 30 per cent of the fair value of the property.'.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
212
Clause 125, page 110, line 7 [Vol I], at end insert—
'(7C) Where a property acquired by a company to which this Part applies is developed and held for three years before disposal, the asset shall be treated as being disposed of in the course of the business of C (tax exempt).'.
Dawn Primarolo
151
Clause 129, page 111, line 23 [Vol I], leave out 'Commissioners' and insert 'Treasury'.
Dawn Primarolo
152
Clause 130, page 111, line 35 [Vol I], leave out 'a requirement' and insert 'Condition 1, 2, 5 or 6'.
Dawn Primarolo
153
Clause 130, page 111, line 40 [Vol I], leave out 'a requirement' and insert 'Condition 1, 2, 5 or 6'.
Dawn Primarolo
154
Schedule 17, page 87, line 39 [Vol II], at end insert—
| '(i) | as if section 111 applied to UK property rental business (within the meaning given by paragraph 32(1)) carried on by them,'. |
Dawn Primarolo
155
Schedule 17, page 87, line 40 [Vol II], after 'tax', insert 'under Case VI of Schedule D'.
Dawn Primarolo
156
Schedule 17, page 87, line 41 [Vol II], leave out 'under Chapter 9 of Part 6 of ITTOIA (other income)'.
Dawn Primarolo
157
Schedule 17, page 88, line 38 [Vol II], leave out 'UK property' and insert 'property rental'.
Dawn Primarolo
158
Schedule 17, page 88, line 42 [Vol II], leave out 'property'.
Dawn Primarolo
159
Schedule 17, page 88, line 44 [Vol II], after 'another', insert ', as set out in the financial statement under paragraph 31(2)(a).'.
Dawn Primarolo
160
Schedule 17, page 93, line 10 [Vol II], leave out sub-paragraph (2) and insert—
| '(2) | Business carried on by a non-UK resident company is property rental business for the purposes of this Part if the business would be property rental business within the meaning given by section 104 if it were carried on by a UK resident company.'. |
Dawn Primarolo
161
Schedule 17, page 93, line 30 [Vol II], leave out from first 'dividend' to 'shall' in line 31 and insert 'which represents (wholly or partly and directly or indirectly) profits of UK property rental business of a non-UK resident member of the group, such proportion of the dividend as represents those profits'.
Dawn Primarolo
162
Schedule 17, page 93, line 39 [Vol II], at end insert—
| 33 | (1) | This paragraph applies if a company to which Part 4 applies, or a member of a group to which Part 4 applies, becomes a member of a group (or of another group) to which Part 4 applies. |
| (2) | Where this paragraph applies, the following provisions of Part 4 shall not have effect— |
(a) section 111 (as modified by paragraphs 9 and 10 above),
(b) section 112 (as modified by paragraph 11 above), and
(c) section 131 (or section 131 as modified by paragraphs 25 and 26 above).'.
Dawn Primarolo
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
213
Page 117, line 23 [Vol I], leave out Clause 143.
Dawn Primarolo
225
Schedule 18, page 98 [Vol II], leave out lines 11 to 26 and insert—
'"(A1) Where the conditions in subsection (A2) below are met in the case of a disposal of oil by a person, section 2(5A) of the Oil Taxation Act 1975 ("the 1975 Act") (transportation etc) is to apply in determining the amount which the person is to bring into account for the purposes of the charge to corporation tax on income in respect of the disposal as it applies (or would apply) for the purposes of petroleum revenue tax.
(A2) The conditions are that—
| (a) | the oil is oil won from an oil field in the United Kingdom, |
| (b) | the disposal is a disposal of the oil by the person crude in a sale at arm's length, as defined in paragraph 1 of Schedule 3 to the 1975 Act, |
| (c) | the circumstances are such that the price received or receivable— |
| (i) | falls to be taken into account under section 2(5)(a) of that Act in computing for the purposes of petroleum revenue tax the assessable profit or allowable loss accruing to the person in any chargeable period from the oil field, or |
| (ii) | would fall to be so taken into account, had the oil field been a taxable field, as defined in section 185 of the Finance Act 1993, |
| (d) | the terms of the contract are such as are described in the opening words of section 2(5A) of the 1975 Act, |
| (e) | apart from subsection (A1) above, the person is not entitled to a transportation allowance in respect of the oil (see subsection (A3)) in computing his ring fence profits, |
| (f) | the person does not claim a transportation allowance in respect of the oil in computing for the purposes of corporation tax any profits of his that are not ring fence profits. |
(A3) In subsection (A2) above "transportation allowance", in relation to any oil, means any of the following—
| (a) | a deduction in respect of the expense of transporting the oil as mentioned in the opening words of section 2(5A) of the 1975 Act, |
| (b) | a deduction in respect of any costs of or incidental to the transportation of the oil as there mentioned, |
| (c) | any such reduction in the price to be regarded as received or receivable for the oil as would result from the application of section 2(5A) of the 1975 Act, if that provision applied for the purposes of corporation tax.".' |
