Amendments proposed to the Finance (No.2) Bill - continued	House of Commons
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Dawn Primarolo

395

Schedule     23,     page     183,     line     13     [Vol     II],     at end insert—

'(4)	In sub-paragraph (7), for "an amount crystallised by" substitute "the relevant amount in the case of".'.

   

Dawn Primarolo

396

Schedule     23,     page     185,     line     32     [Vol     II],     at end insert—

'Amendments and transitionals

32A

(1)

Section 281 (minor and consequential amendments) is amended as follows.

(2)	After subsection (2) insert—

    "(2A)   The Treasury may by order make in any relevant enactment such amendments (including repeals and revocations) as may appear appropriate in consequence of, or otherwise in connection with, any amendment (or repeal or revocation) made in this Part by any enactment contained in an Act passed after this Act (an "amending Act").

    (2B)   For this purpose a relevant enactment is—

(a)	an enactment contained in an Act passed, or

(b)	an instrument made,

before the passing of the amending Act or in the Session in which the amending Act is passed."

(3)	In subsection (3), after "(2) insert "or (2A)".

(4)	After that subsection insert—

    "(4)   An order under subsection (2) or (2A) may include provision having effect in relation to times before it is made if it does not increase any person's liability to tax."

32B

(1)

Section 283 (transitionals and savings) is amended as follows.

(2)	After subsection (3) insert—

    "(3A)   The Treasury may by order make any transitional provision which may appear appropriate in consequence of, or otherwise in connection with, any amendment (or repeal or revocation) made in this Part by any enactment contained in an Act passed after this Act (an "amending Act").

    (3B)   An order under subsection (3A) may, in particular, include savings from the effect of any amendment (or repeal or revocation) made by the amending Act.

    (3C)   An order under subsection (2) or (3A) may include provision having effect in relation to times before it is made if it does not increase any person's liability to tax."

(3)	In subsections (4) and (5), after "(2)" insert "or (3A)".'.

   

Dawn Primarolo

397

Schedule     23,     page     190,     line     26     [Vol     II],     leave out from 'for' to end of line 28 and insert ' "of a pension scheme" there were substituted "of any arrangement within paragraph 15A(4) under a pension scheme".'.

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Dawn Primarolo

382

Schedule     25,     page     198,     line     39     [Vol II],     at end insert—

'()	At the end of that paragraph insert—

    "(7)   The reference to a lease in sub-paragraph (1) is to—

(a)   a lease actually granted on or after the implementation date, or

(b)   a lease that is treated as existing by reason of a deemed grant under paragraph 12A(2) or 19(3) of which the effective date is on or after the implementation date."'.

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

184

Clause     168,     page     138,     line     20     [Vol I],     leave out from second 'company' to end of lne 25 and insert 'in connection with demutualisation of an insurance company'.

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NEW CLAUSES

Review of tobacco products duty

   

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

NC1

To move the following Clause:—

'The Chancellor of the Exchequer will publish a review in relation to the effectiveness of tobacco products duty before 1st March 2007 and will consult with organisations which have a special interest in tobacco products duty before publishing that review.'.

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Review of hydrocarbon oil duties

   

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

NC2

To move the following Clause:—

'The Chancellor of the Exchequer will publish a review in relation to the effectiveness of hydrocarbon oil duties before 1st March 2007 and will consult with organisations which have a special interest in hydrocarbon oil duties before publishing that review.'.

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Review of rates of gaming duty

   

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

NC3

To move the following Clause:—

'The Chancellor of the Exchequer will publish a review in relation to rates of gaming before 1st March 2007 and will consult with organisations which have a special interest in gaming before publishing that review.'.

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Review of amusement machines

   

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

NC4

To move the following Clause:—

'The Chancellor of the Exchequer will publish a review in relation to classes of assessment machine and rates of duty before 1st March 2007 and will consult with organisations which have a special interest in gaming before publishing that review.'.

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Cost of claims for R & D

   

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

NC5

To move the following Clause:—

'The Chancellor of the Exchequer will publish a review in relation to the cost of making claims for relief for research and development before 1st March 2007 and will consult with organisations which have a special interest in claims for relief for research and development.'.

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Interpretation of Chapter IV of ICTA

   

Mr David Gauke

NC7

To move the following Clause:—

'In section 413 of ICTA, after subsection (10) add—

    "(11)   This Chapter shall apply notwithstanding the terms of the European Communities Act 1972.".'.

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Exemption from Pre-Owned Asset Tax for estates below IHT threshold

   

Julia Goldsworthy
Mr Colin Breed
John Thurso
John Hemming

NC8

To move the following Clause:—

    '(1)   Schedule 15 to Finance Act 2004 is amended as follows.

    (2)   At the beginning of paragraph 3(1), insert the words "Subject to paragraph 3A below,".

    (3)   After paragraph 3, insert—

"3A

(1)

Paragraph 3 does not apply if the value of the chargeable person's relevant estate is below the relevant threshold at the relevant time.

(2)	The value of the chargeable person's relevant estate shall mean the aggregate of—

(a)   the value of the chargeable person's estate at the relevant time; and

(b)   the value of any property that is treated at the relevant time (in relation to the chargeable person) as subject to a reservation in acordance with section 102(2) of the 1986 Act.

(3)	The relevant time is—

(a)   in a case where the disposal condition would otherwise apply, the time immediately before the disposal referred to in paragraph 3(2)(b);

(b)   in a case where the contribution condition would otherwise apply, the time immediately before the provision of the consideration referred to in paragraph 3(3).

(4)	The relevant threshold is 80 per cent. of the amount that, at the relevant time, is the largest chargeable transfer that may be made by an individual that is wholly subject to inheritance tax at the nil rate.

(5)	For the purposes of sub-paragraph (2)(a) above, the value of a person's estate is the value that would be treated under section 4 of IHTA 1984 as being transferred by that person if that person were to have died at the relevant time.

    (4)   At the beginning of paragraph 6(1), insert the words "subject to paragraph 6A below,".

    (5)   After paragraph 6, insert—

"6A

(1)

Paragraph 6 does not apply if the value of the chargeable person's relevant estate is below the relevant threshold at the relevant time.

(2)	The value of the chargeable person's relevant estate shall mean the aggregate of—

(a)   the value of the chargeable person's estate at the relevant time; and

(b)   the value of any property that is treated at the relevant time (in relation to the chargeable person) as subject to a reservation in accordance with section 102(2) of the 1986 Act.

(3)	The relevant time is—

(a)   in a case where the disposal condition would otherwise apply, the time immediately before the disposal referred to in paragraph 6(2)(b);

(b)   in a case where the contribution condition would otherwise apply, the time immediately before the provision of the consideration referred to in paragraph 6(3).

(4)	The relevant threshold is 80 per cent. of the amount that, at the relevant time, is the largest chargeable transfer that may be made by an individual that is wholly subject to inheritance tax at the nil rate.

(5)	For the purposes of sub-paragraph (2)(a) above, the value of a person's estate is the value that would be treated under section 4 of IHTA 1984 as being transferred by that person if that person were to have died at the relevant time.".

    (6)   A the beginning of paragraph 8(1), insert the words "Subject to paragraph 8A below,".

    (7)   After paragraph 8, insert—

"8A

(1)

Paragraph 8 does not apply if the value of the chargeable person's relevant estate is below the relevant threshold at the relevant time.

(2)	The value of the chargeable person's relevant estate shall mean the aggregate of—

(a)   the value of the chargeable person's estate at the relevant time; and

(b)   the value of any property that is treated at the relevant time as subject to a reservation in accordance with section 102(2) of the 1986 Act.

(3)	The relevant time is the time immediately before the chargeable person settled the property (or added property to the settlement) as referred to in paragraph 8(2).

(4)	The relevant threshold is 80 per cent. of the amount that, at the relevant time, is the largest chargeable transfer that may be made by an individual that is wholly subject to inheritance tax at the nil rate.

(5)	For the purposes of sub-paragraph (2)(a) above, the value of the person's estate is the value that would be treated under section 4 of IHTA 1984 as being transferred by that person if that person were to have died at the relevant time.".

    (8)   After paragraph 23, insert—

"Automatic application of inheritance tax provisions

24

(1)

This paragraph applies if, at any time—

(a)   paragraph 3 would apply but for paragraph 3A, or

(b)   paragraph 6 would apply but for paragraph 6A.

(2)	So long as the chargeable person continues to enjoy the relevant property or any property which is substituted for the relevant property—

(a)   the chargeable proportion of the property is to be treated for the purposes of Part 5 of the 1986 Act (in relation to the chargeable person) as property subject to a reservation, and

(b)   section 102(3) and (4) of that Act shall apply and this paragraph applies whether or not an election is made under paragraph 21.

(3)

In this paragraph "the chargeable proportion", in relation to any property, shall have the meaning given in paragraph 21(3); a person shall be treated as enjoying the relevant property if he enjoys the property as set out in paragraph 21(4) and the term "relevant property" has the meaning given in paragraph 21.

25

(1)

This paragraph applies if, at any time paragraph 8 would apply but for paragraph 8A.

(2)	So long as the conditions in paragraph 22(3) are satisfied—

(a)   the relevant property and any property which represents or is derived from the relevant property shall be treated for the purposes of Part 5 of the 1986 Act (in relation to the chargeable person) as property subject to a reservation, and

(b)   section 102(3) and (4) of the 1986 Act shall apply and this paragraph applies whether or not an election is made under paragraph 22.

(3)	In this paragraph, the term "relevant property" has the meaning given in paragraph 22.".

    (9)   This section has effect from 6 April 2005 as if Schedule 15 had always had had effect subject to the amendments in this section.'.

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Prepared 15 Jun 2006