sc1610606.271-277

House of Commons

Session 2005 - 06
Internet Publications
Other Bills before Parliament

S.C.A.
271

House of Commons

Tuesday 6th June 2006

Standing Committee Proceedings

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)

[Twelfth and thirteenth Sittings]

Schedule 9

Another Amendment (No. 165) proposed, in page 260 [Vol I], to leave out lines 17 to

31—(Mrs Theresa Villiers).

Question proposed, That the Amendment be made.

Negatived on division

Dawn Primarolo

Agreed to  119

Schedule  9,  page  261,  line  3  [Vol  I],  after ‘treated’ insert ‘by that person’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  166

Schedule  9,  page  261,  line  29 [Vol  I],  leave out ‘April’ and insert ‘September’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  167

Schedule  9,  page  261,  line  37 [Vol  I],  leave out ‘April’ and insert ‘September’.

Schedule, as amended, Agreed to.

S.C.A.    Standing Committee Proceedings: 6th June 2006
272

Finance (N, continued

Clause 82 Agreed to.

Dawn Primarolo

Agreed to  215

Schedule  10,  page  19,  line  25  [Vol  II],  leave out sub-paragraph (2) and

insert—

    ‘(2)
No person is to be treated as receiving an amount of income, or as incurring an

expense, as a result of any provision of this Schedule in so far as the income or

expense arises by reference to the relevant plant or machinery subject to a lease

which is disposed of.

    (2A)
If, as a result of sub-paragraph (2), no income is treated as received by a

company, no accounting period of the company ends or begins as a result of

any provision of this Schedule.

    (2B)
In relation to any disposal made before 2nd June 2006—

(a)
sub-paragraph (2) applies as if the words from “in so far as” to the end

were omitted, and

(b)
sub-paragraph (2A) applies as if the words from “If” to “a company,”

and the words “of the company” were omitted.’.

Schedule, as amended, Agreed to.

Clause 83 Agreed to.

Dawn Primarolo

Agreed to  96

Clause  84,  page  79,  line  18  [Vol  I],  leave out from first ‘the’ to ‘all’ in line 19

and insert ‘lessor remains entitled immediately after the disposal to some or’.

Dawn Primarolo

Agreed to  97

Clause  84,  page  79,  line  37  [Vol  I],  leave out from second ‘the’ to end of line

38 and insert ‘lessor remains entitled immediately after the disposal’.

Clause, as amended, Agreed to.

Clauses 85 and 86 Agreed to.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Withdrawn  170

Schedule  11,  page  22,  line  3  [Vol II],  leave out from beginning to end of line 16.

S.C.A.    Standing Committee Proceedings: 6th June 2006
273

Finance (N, continued

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  171

Schedule  11,  page  22   [Vol II],  leave out lines 8 to 16 and insert—

‘(2)
Accordingly, in section 432A of ICTA 1988 in subsection (5) (power to extend

orders under subsection (3) in relation to periods of account ending before 1st

October 2007), substitute “1st October 2006” with “1st October 2007”.’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Withdrawn  193

Schedule  11,  page  22,  line  30  [Vol II],  at end insert—

‘2A(1)
Sections 439B and 441 ICTA 1988 shall cease to have effect and section 436

shall be amended by substituting “Gross Roll-up Business” for “Pension

Business” in each place that it occurs.

      (2)
“Gross Roll-up Business” means all long-term business written other than

Basic Life Assurance, General Annuity Business and Permanent Health

Insurance.’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Withdrawn  172

Schedule  11,  page  29,  line  30      [Vol II],  leave out from beginning to end of line 41

on page 30.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Withdrawn  173

Schedule  11,  page  33,  line  18 [Vol II],  leave out paragraph 7.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  179

Schedule  11,  page  33,  line  40 [Vol II],  at end insert—

‘(3A)
Where the line 51 amount for the straddling period is greater than the line 51

amount for any subsequent period, and the line 51 amount is then increased in a

period following that subsequent period, the adjustment produced by subsection

(3) above shall be reduced by an amount equal to the lower of:

(a)
the difference between the line 51 amount for the straddling period and

the line 51 amount for the current period of account; and

S.C.A.    Standing Committee Proceedings: 6th June 2006
274

Finance (N, continued

(b)
the line 51 amount for the current period of account, and the line 51

amount for the immediately preceding period,


but the amount computed under this subsection shall be reduced by the total sum

of adjustments made in periods prior to the current period of account under this

subsection.’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  174

Schedule  11,  page  34,  line  39 [Vol II],  at end insert—

‘(12)
Where this section applies then the company may make a claim requiring that a

loss arising under section 436, 439B and sections 441 ICTA 1988 be set off

against profits of the same description arising in the proceeding accounting

period.’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  180

Schedule  11,  page  35,  line  9 [Vol II],  leave out ‘to’ and insert ‘from’.

Dawn Primarolo

Agreed to  195

Schedule  11,  page  35,  line  9  [Vol II],  leave out ‘to’ and insert ‘by’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  183

Schedule  11,  page  35,  line  16 [Vol II],  leave out from beginning to end of line 19

and insert—

‘(b)
the line 51 amount of the transfer or in respect of the business transferred

to the company, as computed in the transferor’s periodic return.’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  181

Schedule  11,  page  35,  line  41 [Vol II],  leave out ‘to’ and insert ‘from’.

Dawn Primarolo

Agreed to  196

Schedule  11,  page  35,  line  41  [Vol II],  leave out ‘to’ and insert ‘by’.

S.C.A.    Standing Committee Proceedings: 6th June 2006
275

Finance (N, continued

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  182

Schedule  11,  page  35,  line  43 [Vol II],  leave out ‘to’ and insert ‘from’.

Dawn Primarolo

Agreed to  197

Schedule  11,  page  35,  line  43  [Vol II],  leave out ‘to’ and insert ‘by’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  176

Schedule  11,  page  37,  line  1 [Vol II],  leave out ‘two-thirds’ and insert ‘one-sixth’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  177

Schedule  11,  page  37,  line  5 [Vol II],  leave out ‘one-third’ and insert ‘one-sixth’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  178

Schedule  11,  page  37,  line  6 [Vol II],  leave out ‘period’ and insert ‘five periods’.

Schedule, as amended, Agreed to.

Clauses 87 and 88 Agreed to.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Withdrawn  198

Schedule  12,  page  41,  line  45 [Vol II],  leave out paragraph 2.

Schedule Agreed to.

S.C.A.    Standing Committee Proceedings: 6th June 2006
276

Finance (N, continued

Clause 89 Agreed to.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Withdrawn  186

Schedule  13,  page  66,  line  19 [Vol II],  leave out paragraph 2.

Dawn Primarolo

Agreed to  191

Schedule  13,  page  68 [Vol II],  leave out lines 6 to 8.

Dawn Primarolo

Agreed to  192

Schedule  13,  page  72,  line  9 [Vol II],  at end insert—

  ‘(1A)
For section 623 of ITTOIA 2005 (calculation of income) substitute—

“623
Calculation of income

For the purpose of calculating liability to tax under this Chapter (but

for no other purpose), a settlor shall be allowed the same deductions

and reliefs as if any amount treated under this Chapter as income of the

settlor had actually been received by the settlor.”’.

Schedule, as amended, Agreed to.

Clause 90 Agreed to.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Withdrawn  135

Clause  92,  page  84,  line  34 [Vol I],  leave out subsection (2).

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  136

Clause  92,  page  84,  line  35 [Vol I],  leave out ‘insert at the beginning “securities”’

and insert ‘after “options”, insert “other than an option which is acquired pursuant to a

right or opportunity made available under arrangements the main purpose (or one of the

main purposes) of which is the avoidance of income tax or national insurance

contributions”.’.

S.C.A.    Standing Committee Proceedings: 6th June 2006
277

Finance (N, continued

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  137

Clause  92,  page  84,  line  39 [Vol I],  after third ‘of’, insert ‘income’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  138

Clause  92,  page  85,  line  1 [Vol I],  at beginning insert ‘Subject to subsection (6)

below,’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  140

Clause  92,  page  85,  line  1 [Vol I],  leave out from ‘after’ to end of line 4 and insert

‘22nd March 2006.’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  139

Clause  92,  page  85,  line  4 [Vol I],  at end add—

‘(1)
Where any liability to income tax or national insurance contributions arises by

virtue of this section, such liability shall not fall to be collected through the PAYE

system unless the option in question was acquired on or after the date Royal

Assent is received to this Act, and it shall be sufficient defence for an employer

to any proceedings concerning non-compliance with the PAYE regulations that

they have taken all reasonable steps to notify any employee or former employee

of their obligation to pay any liability created by this section.’.

Clause Agreed to.

Clauses 93 to 102 Agreed to.