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497

 
 

House of Commons

 
 

Tuesday 2nd May 2006

 

Committee of the Whole House

 

Proceedings

 

Finance (No. 2) Bill


 

(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)


 

[FiRst DAY]


 

Mr Chancellor of the Exchequer

 

To move, That the order in which proceedings in the Committee of the whole House

 

on the Finance Bill (No. 2) are to be taken shall be: new Clauses relating to the effect of

 

provisions of the Bill on section 18 of the Inheritance Tax Act 1984, Clause 61, Clause

 

26, Clause 91, Schedule 14, Clause 106 and Clauses 13 to 15.

 

Agreed to

 


 

new clause relating to the effect of provisions of the bill on section 18

 

of the inheritance tax act 1984

 

Application of section 18 IHTA 1984

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Negatived on division  nc1

 

To move the following Clause:—

 

‘Notwithstanding any provision of this Act, section 18 of the Inheritance Tax Act

 

1984 (transfers between spouses) shall continue to apply to transfers of value

 

between spouses to the extent to which they are exempt transfers under the

 

provisions of that section.’.

 

As Amendments to Mrs Theresa Villiers’ proposed New Clause (Application of section

 

18 IHTA 1984) (NC1):—


 
 

Committee of the whole House Proceedings: 2nd May 2006      

498

 

Finance (No. 2) Bill, continued

 
 

Mr David Gauke

 

Not called  (c)

 

Line  1,  leave out from ‘Act’ to end of line 4 and insert ‘all transfers of value made

 

on or after 22nd March 2006 which would have been exempt under section 18

 

of the Inheritance Tax Act 1984 (transfers between spouses) if made

 

immediately prior to 22nd March 2006 shall continue to be exempt.’.

 

Julia Goldsworthy

 

Mr Colin Breed

 

Not called  (a)

 

Line  2,  at end insert ‘written into trust by will, life assurance policy and lifetime

 

gift’.

 

Julia Goldsworthy

 

Mr Colin Breed

 

Not called  (b)

 

Line  3,  after ‘spouses’, insert ‘and civil partners’.

 


 

Application of section 18 IHTA 1984 (No. 2)

 

Julia Goldsworthy

 

Mr Colin Breed

 

Not called  NC2

 

To move the following Clause:—

 

‘Notwithstanding any provision of this Act, section 18 of the Inheritance Tax Act

 

1984 (transfers between spouses) shall continue to apply to transfers of value

 

written into trust by will, life assurance policy and lifetime gift to spouses and

 

civil partners for two years until—

 

(a)    

a full consultation has been undertaken about the operation of that

 

section;

 

(b)    

a Regulatory Impact Assessment of the operation of that section has been

 

completed; and

 

(c)    

the impact of the Act on transfers of value written into trust through wills,

 

lifetime gifts and life assurance policies has been calculated.’.

 


 

Application of section 18 IHTA 1984 (No. 3)

 

Julia Goldsworthy

 

Mr Colin Breed

 

Not called  nc3

 

To move the following Clause:—

 

‘Notwithstanding any provision of this Act, all transfers of value made on the

 

death of a person on or after 22nd March 2006 but before 6th April 2008 which

 

would have been exempt under section 18 of the Inheritance Tax Act 1984


 
 

Committee of the whole House Proceedings: 2nd May 2006      

499

 

Finance (No. 2) Bill, continued

 
 

(transfers between spouses) if made immediately prior to 22nd March 2006, shall

 

continue to be exempt.’.

 


 

Julia Goldsworthy

 

Mr Colin Breed

 

Not selected  17

 

Clause  61,  page  46,  line  30  [Vol I],  leave out subsection (1) and insert—

 

‘(1)    

Amend section 3200 of ITEPA 2003 (employment income: limited exemption for

 

computer equipment) by substituting “desktop computers, laptops, printers,

 

scanners and modems provided to the employee or director himself or to a

 

member of his family or household” for “computer or peripheral equipment”.’.

 

Julia Goldsworthy

 

Mr Colin Breed

 

Not selected  19

 

Clause  61,  page  46,  line  32  [Vol I],  leave out ‘2006–07’ and insert ‘2007–08’.

 

Julia Goldsworthy

 

Mr Colin Breed

 

Not selected  20

 

Clause  61,  page  46,  line  36  [Vol I],  leave out ‘2006’ and insert ‘2007’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not selected  3

 

Clause  61,  page  46,  line  36  [Vol I],  at end add—

 

‘(4)    

The Chancellor of the Exchequer shall—

 

(a)    

consult representatives of industry and scheme users regarding the list of

 

products to which this section applies; and

 

(b)    

not later than 6th April 2007 shall lay before Parliament a report on the

 

effects of this section.

 

Julia Goldsworthy

 

Mr Colin Breed

 

Not selected  18

 

Clause  61,  page  46,  line  36  [Vol I],  at end add—

 

‘(4)    

On or before 1st March 2007 the Chancellor of the Exchequer shall lay before

 

Parliament a report containing any evidence available to him that the exemption

 

under section 320 of ITEPA has been abused.’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Mr Andrew Selous

 

Not selected  28

 

Clause  61,  page  46,  line  36  [Vol I],  at end add—


 
 

Committee of the whole House Proceedings: 2nd May 2006      

500

 

Finance (No. 2) Bill, continued

 
 

‘(4)    

It does not cause any liability to income tax to arise in respect of the provision of

 

computer equipment by making it available to an employee, or a member of an

 

employee’s family or household, if the computer equipment is subsequently

 

utilised for any private use which is not significant, such use to be defined in

 

guidance notes to be issued by HM Revenue and Customs.’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not selected  2

 

Page  46,  line  29  [Vol I],  leave out Clause 61.

 

Clause Agreed to on division.

 


 

Julia Goldsworthy

 

Mr Colin Breed

 

Withdrawn  27

 

Clause  26,  page  26,  line  19  [Vol I],  at end insert—

 

‘( )    

At the end of section 8 of ICTA there is inserted—

 

“(3A)    

Notwithstanding the provisions of this section—

 

(a)    

corporation tax shall not be charged on the profits of a company

 

where the profits of the company for any accounting period in

 

question do not exceed a limit of £500;

 

(b)    

where an accounting period is shorter than 12 months that £500

 

limit shall be reduced in proportion to the reduction in

 

accounting period; and

 

(c)    

where a company has associated companies, that £500 limit shall

 

be reduced in proportion to the number of associates during the

 

accounting period.”.’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not selected  1

 

Page  26,  line  19  [Vol I],  leave out Clause 26.

 

Clause Agreed to on division.

 

Progress reported.


 
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