cwh1610305.501-507

House of Commons

Session 2005 - 06
Internet Publications
Other Bills before Parliament

501

House of Commons

Wedneday 3rd 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)

[Second DAY]

Clause 91 Agreed to.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Withdrawn  6

Schedule  14,  page  74 [Vol II],  leave out lines 5 to 26.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  7

Schedule  14,  page  74 [Vol II],  leave out from beginning of line 27 to end of line 4 on

page 75.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  8

Schedule  14,  page  75 [Vol II],  leave out lines 5 to 18.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  9

Schedule  14,  page  75,  line  18 [Vol II],  at end insert—

Committee of the whole House Proceedings: 3rd May 2006
502

Finance (N, continued

‘Part 1A

Definition of gross assets

3A
In section 293 of The Taxes Act 1988 insert new subsection—

“(6CA)
For the purposes of subsection (6B) above assets of any member of the

company’s group that consist of capitalised internal costs of the

company relating to research and development expenditure shall be

disregarded.”.

3B
In paragraph 8 of Schedule 28B to The Taxes Act 1988 insert new sub-

paragraph—

“(3A)
For the purposes of this paragraph assets of any member of the

company’s group that consist of capitalised internal costs of the

company relating to research and development expenditure shall be

disregarded.”.

3C
In paragraph 22(3) of Schedule 15 to FA 2000, at end add “and disregarding

assets that consist of capitalised internal costs of the company relating to

research and development expenditure”.’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Withdrawn  10

Schedule  14,  page  75,  line  25 [Vol II],  leave out ‘30’ and insert ‘40’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  11

Schedule  14,  page  75,  line  30 [Vol II],  leave out ‘30’ and insert ‘40’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Withdrawn  12

Schedule  14,  page  76 [Vol II],  leave out lines 1 to 13.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  13

Schedule  14,  page  77,  line  3 [Vol II],  at end add—

    ‘(3)
Sub-paragraph (1) shall not apply to protected money as defined in paragraph

2(4) of this Schedule.’.

Committee of the whole House Proceedings: 3rd May 2006
503

Finance (N, continued

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Withdrawn  5

Schedule  14,  page  77,  line  3 [Vol II],  at end add—

‘Part 6

Inheritance tax

9
In section 104(1)(a) of IHTA 1984 for “(b) or (bb)” substitute “(b) (bb) or

(bc)”.

10
In section 105(1) of IHTA 1984 after subsection (bb) insert—

“(bc)
eligible shares in a venture capital trust as defined by section

842AA(14) of the Taxes Act 1988;”

Part 7

Longer holding periods

11  (1)
Schedule 15B to The Taxes Act 1988 is amended as follows.

      (2)
In paragraph 1, after subparagraph (2) insert—

“(2A)
An individual shall also be eligible for relief in the 6th year after

subscribing for eligible shares if those shares are held by him at the

6th anniversary of the subscription.

    (2B)
The amounts on which an individual shall be taken for the purposes

of sub-paragraph (2A) above to be eligible for relief shall be the

original subscription amount for such shares.

      (3)
In paragraph 3(1)(b) leave out “those shares were issued to that individual” and

insert “the shares became eligible for relief under paragraph 1(2) or (2A)

above. But relief claimed for a subscription of eligible shares more than five

years before the date of disposal shall not be withdrawn.”.’.

Schedule Agreed to.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr Andrew Selous

Withdrawn  24

Clause  106,  page  97,  line  13  [Vol I],  at end add—

‘(1A)
Not later than 31st March 2007, and annually thereafter, the Chancellor of the

Exchequer shall lay before Parliament a report of the number and estimated

market capitalisation of the companies that have given notice to register as Real

Estate Investment Trusts under section 109.’.

Committee of the whole House Proceedings: 3rd May 2006
504

Finance (N, continued

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  4

Clause  106,  page  97,  line  23 [Vol I],  at end insert ‘or are permitted to be dealt in

on the Alternative Investment Market of the Stock Exchange.’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr Andrew Selous

Not called  23

Clause  106,  page  97,  line  24  [Vol I],  leave out subsection (6).

Clause Agreed to.

Rob Marris

Not selected  14

Clause  13,  page  14,  line  15  [Vol I],  after ‘date’, insert ‘but before 1st December

2006, or Table C where the vehicle is first registered on or after 1st December 2006 but

before 6th April 2009, or Table D where the vehicle is first registered on or after 6th April

2009’.

Julia Goldsworthy

Mr Colin Breed

Negatived  25

Clause  13,  page  14,  line  20  [Vol I],  leave out Table A and insert—

CO2
Rate

Emissions

figure

(1)
(2)
(3)
(4)
(5)

Exceeding
Not
Reduced Rate
Standard Rate
Premium Rate

Exceeding

Households

Households

Households

with a

with a

with a

postcode in a

postcode in a

postcode in a

sparsely

sparsely

sparsely

populated

populated

populated

rural area

rural area

rural area

g/km
g/km
£
£
£
£
£
£

100
120
30
15
40
20
50
25

120
150
90
45
100
50
110
55

150
165
115
57.50
125
62.50
135
67.50

165
185
140
70
150
75
160
80

185
—
180
90
190
95
195
97.50

Committee of the whole House Proceedings: 3rd May 2006
505

Finance (N, continued

Rob Marris

Not selected  15

Clause  13,  page  15,  line  1  [Vol I],  at end insert ‘but before 1st December 2006’.

Julia Goldsworthy

Mr Colin Breed

Not called  21

Clause  13,  page  15,  line  2  [Vol I],  leave out Table B and insert—

CO2
Rate

Emissions

figure

(1)
(2)
(3)
(4)
(5)

Exceeding
Not
Reduced Rate
Standard Rate
Premium Rate

Exceeding

Households

Households

Households

with a

with a

with a

postcode in a

postcode in a

postcode in a

sparsely

sparsely

sparsely

populated

populated

populated

rural area

rural area

rural area

g/km
g/km
£
£
£
£
£
£

100
120
30
15
40
20
50
25

120
150
90
45
100
50
110
55

150
165
115
57.50
125
62.50
135
67.50

165
185
140
70
150
75
160
80

185
225
180
90
190
95
195
97.50

225
—
200
200
210
210
215
215

Committee of the whole House Proceedings: 3rd May 2006
506

Finance (N, continued

Julia Goldsworthy

Mr Colin Breed

Not selected  26

Clause  13,  page  15,  line  2  [Vol I],  leave out Table B and insert—

CO2
Rate

Emissions

figure

(1)
(2)
(3)
(4)
(5)

Exceeding
Not
Reduced Rate
Standard Rate
Premium Rate

Exceeding

Households

Households

Households

with a

with a

with a

postcode in a

postcode in a

postcode in a

sparsely

sparsely

sparsely

populated

populated

populated

rural area

rural area

rural area

g/km
g/km
£
£
£
£
£
£

100
120
30
15
40
20
50
25

120
150
90
45
100
50
110
55

150
165
115
57.50
125
62.50
135
67.50

165
185
140
70
150
75
160
80

185
225
180
90
190
95
195
97.50

225
—
2000
2000
2000
2000
2000
2000

Rob Marris

Not selected  16

Clause  13,  page  15,  line  12  [Vol I],  at end insert—

‘Table C: Vehicles first registered on or after 1st December 2006 but before

Committee of the whole House Proceedings: 3rd May 2006
507

Finance (N, continued

6th April 2009

CO2 emissions figure
Rate

(1)
(2)
(3)
(4)
(5)

Exceeding
Not
Reduced
Standard
Premium

exceeding
rate
rate
rate

g/km
g/km
£
£
£

100
120
30
40
50

120
150
90
100
110

150
165
115
125
135

165
185
140
150
160

185
225
180
190
195

225
250
200
210
215

250
—
490
500
510

Table D: Vehicles first registered on or after 6th April 2009

CO2 emissions figure
Rate

(1)
(2)
(3)
(4)
(5)

Exceeding
Not
Reduced
Standard
Premium

exceeding
rate
rate
rate

g/km
g/km
£
£
£

100
120
30
40
50

120
150
90
100
110

150
165
115
125
135

165
185
140
150
160

185
225
180
190
195

225
250
200
210
215

250
—
2,000
2,100
2,150

Julia Goldsworthy

Mr Colin Breed

Not called  22

Clause  13,  page  15,  line  12  [Vol I],  at end insert—

‘(3A)
after paragraph 1B insert—