Amendments proposed to the Finance (No. 2I Bill - continued	House of Commons
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Julia Goldsworthy
Mr Colin Breed
John Thurso
John Hemming
Mrs Theresa Villiers
Mr Mark Francois

199

Schedule     20,     page     116,     line     41     [Vol II],     at end insert—

'(1A)

After subsection (1) insert—

    "(1A)   This section also applies to settled property, whenever transferred into settlement, which is held on trusts in which an interest in possession subsists, and in which the person beneficially entitled to the interest in possession is a disabled person." '.

   

Julia Goldsworthy
Mr Colin Breed
John Thurso
John Hemming
Mrs Theresa Villiers
Mr Mark Francois

200

Schedule     20,     page     117,     line     1     [Vol II],     after 'means' insert '—

(a)'.

   

Julia Goldsworthy
Mr Colin Breed
John Thurso
John Hemming

201

Schedule     20,     page     117,     line     3     [Vol II],     at end insert—

'(b)	an interest in possession in settled property to which a disabled person is beneficially entitled.

    (2A)   For subsection (4)(a) substitute—

"(a)	a person who lacked capacity, within the meaning of the Mental Capacity Act 2005, or was expected to lack capacity at some time in the future;".

    (2B)   In subsection (4)(c), omit the words "by virtue of" to the end.'.

   

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

344

Schedule     20,     page     117,     line     3     [Vol     II],     at end insert—

'(b)	an interest in possession in settled property to which a disabled person is beneficially entitled.'.

   

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

345

Schedule     20,     page     117,     line     3     [Vol     II],     at end insert—

    '(2A)   For subsection (4)(a) substitute—

"(a)	a person who lacked capacity, within the meaning of the Mental Capacity Act 2005, or was expected to lack capacity at some time within the following five years;"

    (2B)   In subsection (4)(c), omit the words "by virtue of" to end.".'.

   

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

346

Schedule     20,     page     117,     line     5     [Vol     II],     leave out from 'the' to 'a' in line 6 and insert 'references in subsections (1) and (1A) above to a disabled person include, in relation to any settled property, references to'.

   

Julia Goldsworthy
Mr Colin Breed
John Thurso
John Hemming

202

Schedule     20,     page     117,     line     5     [Vol II],     leave out from 'in' to second 'to' in line 6 and insert 'subsections (1) and (1A) above to a disabled person include, in relation to any settled property, references'.

   

Julia Goldsworthy
Mr Colin Breed
John Thurso
John Hemming
Mrs Theresa Villiers
Mr Mark Francois

203

Schedule     20,     page     117,     line     15     [Vol II],     leave out from 'allowance' to 'had' in line 17.

   

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

348

Schedule     20,     page     117,     line     21     [Vol     II],     leave out from 'the' to second 'to' in line 22 and insert 'references in subsections (1) and (1A) above to a disabled person include, in relation to any settled property, references'.

   

Julia Goldsworthy
Mr Colin Breed
John Thurso
John Hemming

204

Schedule     20,     page     117,     line     21     [Vol II],     leave out from 'in' to second 'to' in line 22 and insert 'subsections (1) and (1A) above to a disabled person include, in relation to any settled property, references'.

   

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

349

Schedule     20,     page     117,     line     35     [Vol     II],     leave out from 'by' to 'rate' in line 36.

   

Julia Goldsworthy
Mr Colin Breed
John Thurso
John Hemming

206

Schedule     20,     page     117,     line     40     [Vol II],     at end insert—

    '(3A)   Sub-paragraph (2A) shall come into force immediately after section 2 of the Mental Capacity Act 2005 comes into force.'.

   

Julia Goldsworthy
Mr Colin Breed
John Thurso
John Hemming
Mrs Theresa Villiers
Mr Mark Francois

205

Schedule     20,     page     117,     line     41     [Vol II],     at end insert—

    '(7)   The references in sections (1) and (1A) above to a disabled person include, in relation to any settled property, references to a person who satisfies Her Majesty's Revenue and Customs that he would, when the property was transferred into settlement, have been entitled to an attendance allowance or a disability living allowance had he claimed it.'.

   

Dawn Primarolo

389

*Schedule     20,     page     117,     line     42     [Vol II],     leave out '(2)' and insert '(1)'.

   

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

237

Schedule     20,     page     118,     line     5     [Vol II],     leave out '22nd March 2006' and insert '6th April 2007'.

   

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

267

Schedule     20,     page     118,     line     5     [Vol II],     at end insert—

'Policies of insurance

7A

(1)

In section 6 of the Inheritance Tax Act 1984, after subsection (3) insert—

    "(3A)   Any policy of insurance comprised in a settlement shall be treated as excluded property for all purposes of this Act.".'.

   

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

268

Schedule     20,     page     118,     line     5     [Vol II],     at end insert—

'Policies of insurance

7A

(1)

Any policy of insurance which was comprised in a settlement at 22nd March 2006 shall be treated as excluded property for the purposes of the Inheritance Tax Act 1984.'.

   

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

238

Schedule     20,     page     118,     line     27     [Vol II],     leave out '22nd March 2006' and insert '6th April 2007'.

   

Dawn Primarolo

362

Schedule     20,     page     118,     line     33     [Vol II],     at end insert ', or

(iii)

a gift into a bereaved minor's trust on the coming to an end of a immediate post-death interest.'.

   

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

341

Schedule     20,     page     118,     line     38     [Vol     II],     at end insert—

    '(4A)   In subsection (7) (application of section 3A to an event on the happening of which tax is chargeable under section 52 of the Inheritance Tax Act) after "in subsection (1)(a)" insert "or subsection (1A)(a).".'.

   

Dawn Primarolo

390

*Schedule     20,     page     119,     line     2     [Vol II],     after '89' insert 'or 89A'.

   

Dawn Primarolo

363

Schedule     20,     page     119,     line     2     [Vol II],     at end insert—

    '(3B)   A transfer of value falls within subsection (1A)(c)(iii) above to the extent that the value transferred is attributable to settled property (whenever settled) that becomes property to which section 71A below applies in the following circumstances—

(a)	under the settlement, a person ("L") is beneficially entitled to an interest in possession in the settled property,

(b)	the interest in possession is an immediate post-death interest,

(c)	on or after 22nd March 2006, but during L's life, the interest in possession comes to an end,

(d)	L is beneficially entitled to the interest in possession immediately before it comes to an end, and

(e)	on the interest in possession coming to an end, the property—

(i)	continues to be held on the trusts of the settlement, and

(ii)	becomes property to which section 71A below applies.".'.

   

Dawn Primarolo

364

Schedule     20,     page     119,     line     2     [Vol II],     at end insert—

'( )	In subsection (7) (application of section in relation to charge to tax under section 52), after "subsection (1)(a)" insert "or (1A)(a)".'.

   

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

277

Schedule     20,     page     119,     line     11     [Vol II],     after 'which', insert 'section 71(1)(a) or'.

   

Dawn Primarolo

365

Schedule     20,     page     119,     line     11     [Vol II],     after '71A' insert 'or 71D'.

   

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

278

Schedule     20,     page     119,     line     18     [Vol II],     after 'which', insert 'section 71(1)(a) or'.

   

Dawn Primarolo

366

Schedule     20,     page     119,     line     18     [Vol II],     after '71A' insert 'or 71D'.

   

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

239

Schedule     20,     page     119,     line     22     [Vol II],     leave out '22nd March 2006' and insert '6th April 2007'.

   

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

321

Schedule     20,     page     119,     line     26     [Vol     II],     at end insert ', and

(iv)	not a relationship breakdown settlement interest.".'.

Prepared 9 Jun 2006