S.C.A.
NOTICES OF AMENDMENTS
given up to and including
Friday 9th June 2006
New Amendments handed in are marked thus *
STANDING COMMITTEE A
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]
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.".' |
Stuart Hosie
374
Clause 149, page 124, line 10 [Vol I], at end insert 'and
| (f) | may not be made until the Chancellor has laid before both Houses a report on the extent of tax avoidance in relation to blended oil.'. |
Dawn Primarolo
219
Clause 150, page 124, line 37 [Vol I], after '(9)', insert—
| '(a) | omit "subsection (7) or", and |
Dawn Primarolo
220
Clause 151, page 126, line 32 [Vol I], leave out subsection (8) and insert—
'(8) In paragraph 6—
| (a) | in sub-paragraph (1) omit "Subject to sub-paragraph (3) below," and |
| (b) | omit sub-paragraphs (2) and (3).'. |
Dawn Primarolo
221
Clause 152, page 127, line 25 [Vol I], after 'field),', insert—
Dawn Primarolo
222
Clause 152, page 127, line 28 [Vol I], at end insert—
| (b) | for the purposes of corporation tax, that amount shall be available to the person as a deduction in computing the profits of any trade to which section 492(1) does not apply.'. |
Stuart Hosie
375
Clause 153, page 127, line 37 [Vol I], at end insert—
'(2A) The amendment made by subsection (1) shall cease to have effect if the average price of Brent crude oil falls below $30 a barrel for one month.
(2B) If subsection (1) ceases to have effect as a result of the provisions in subsection (2A) above, the Chancellor of the Exchequer may by order restore the amendment made by subsection (1) if the average price of Brent crude oil rises above $30 a barrel for one month.'.
Stuart Hosie
376
Clause 153, page 127, line 37 [Vol I], at end insert—
'(2C) If the average price of Brent crude oil falls below $40 a barrel for one month, the Chancellor of the Exchequer shall lay a report before both Houses outlining options for introducing a variable rate of supplementary charge.'.
Stuart Hosie
377
Clause 153, page 129, line 7 [Vol I], at end add—
'(11) This section shall not come into effect until the Chancellor of the Exchequer has laid before both Houses a report on possible exploration and investment incentives for the UK Continental Shelf.'.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
287
Schedule 20, page 111, line 13 [Vol II], leave out 'settled property (including property settled before 22nd March 2006)' and insert 'property settled on or after 22nd March 2006'.
Dawn Primarolo
383
*Schedule 20, page 111, line 21 [Vol II], leave out 'to which section 89 below applies' insert 'in which a disabled person's interest subsists'.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
270
Schedule 20, page 111, line 24 [Vol II], leave out 'parent' and insert 'relative'.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
280
Schedule 20, page 111, line 30 [Vol II], leave out from beginning to end of line 7 on page 112 and insert—
| '(a) | that the bereaved minor, if he has not done so before attaining the age of 18, will on attaining that age become absolutely entitled to the settled property or to the income arising from it, |
| (b) | that the bereaved minor, if he has not done so before attaining the age of 25, will on attaining that age become absolutely entitled to— |
| (i) | the settled property, and |
| (ii) | any income that has arisen from the property held on the trusts for his benefit and been accumulated before he became beneficially entitled to the property in accordance with paragraph (a) above, |
| (c) | that, for so long as the bereaved minor is living and under the age of 25, if any of the settled property is applied for the benefit of a beneficiary, it is applied for the benefit of the bereaved minor, and |
| (d) | that, for so long as the bereaved minor is living and under the age of 18, either— |
| (i) | the bereaved minor is entitled to all of the income (if there is any) arising from any of the settled property, or |
| (ii) | no such income may be applied for the benefit of any other person.'. |
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
272
Schedule 20, page 111, line 31 [Vol II], leave out '18' and insert '25'.
Dawn Primarolo
355
Schedule 20, page 112, line 10 [Vol II], leave out from 'of' to end of line 15 and insert '—
| (a) | the trustees having the powers conferred by section 32 of the Trustee Act 1925 (powers of advancement), |
| (b) | the trustees having those powers but free from, or subject to a less restrictive limitation than, the limitation imposed by proviso (a) of subsection (1) of that section, |
| (c) | the trustees having the powers conferred by section 33 of the Trustee Act (Northern Ireland) 1958 (corresponding provision for Northern Ireland), |
| (d) | the trustees having those powers but free from, or subject to a less restrictive limitation than, the limitation imposed by subsection (1)(a) of that section, or |
| (e) | the trustees having powers to the like effect as the powers mentioned in any of paragraphs (a) to (d) above.'. |
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
271
Schedule 20, page 112, line 24 [Vol II], at end insert—
'(5A) In this section "relative" has the same meaning as in the Taxation of Chargeable Gains Act 1992 section 286 as if the reference to "lineal descendant" in that section were omitted.'.
Dawn Primarolo
356
Schedule 20, page 112 [Vol II], leave out lines 26 to 29 and insert 'as if, in subsection (2) above, before "which" there were inserted "the purposes of".'.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
281
Schedule 20, page 112, line 41 [Vol II], leave out 'on attaining the age of 18 or becoming, under that age, absolutely entitled as mentioned in' and insert 'becoming entitled as mentioned in paragraph (a) or (b) of'.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
273
Schedule 20, page 112, line 41 [Vol II], leave out '18' and insert '25'.
