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S.C.A.

279

 
 

House of Commons

 
 

Thursday 8th 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)


 

[Fourteenth and Fifteenth Sittings]


 

Clauses 103 and 104 Agreed to.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Withdrawn  208

 

Schedule  16,  page  84,  line  32  [Vol  II],  leave out paragraph 11.

 

Schedule Agreed to.

 

Clause 105 Agreed to.

 


 

Sir George Young

 

Withdrawn  218

 

Clause  107,  page  98,  line  23  [Vol  I],  at end insert—

 

‘(4A)    

Condition 2A is that a percentage of the assets of the property rental business to

 

be prescribed in regulations made by the Commissioners for Her Majesty’s

 

Revenue and Customs is invested in residential property.’.

 

Clause Agreed to.

 

Clauses 108 to 110 Agreed to.

 



 
 

S.C.A.    Standing Committee Proceedings: 8th June 2006            

280

 

Finance (N, continued

 
 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Withdrawn  209

 

Clause  111,  page  100,  line  39  [Vol  I],  at end add—

 

‘(8)    

Where assets involved in the property rental business are held as trading stock,

 

any profit accruing by reason of this section shall not be a taxable profit.’.

 

Clause Agreed to.

 

Clauses 112 to 115 Agreed to.

 


 

Dawn Primarolo

 

Agreed to  168

 

Clause  116,  page  103,  line  28  [Vol I],  after ‘section’, insert ‘106(5) or (6),’.

 

Dawn Primarolo

 

Agreed to  169

 

Clause  116,  page  103,  line  32  [Vol I],  after ‘section’, insert ‘106(5) or (6),’.

 

Dawn Primarolo

 

Agreed to  146

 

Clause  116,  page  103,  line  34  [Vol  I],  at end insert—

 

‘(a)    

provide for this Part to cease to apply to a company at a time specified by

 

or determined in accordance with the regulations (which may be before

 

the breach of a requirement);

 

(b)    

provide for this Part to continue to apply to a company with specified

 

modifications;’.

 

Clause, as amended, Agreed to.

 

Clauses 117 to 120 Agreed to.

 


 

Dawn Primarolo

 

Agreed to  147

 

Clause  121,  page  106,  line  26   [Vol  I],  after ‘company’, insert ‘within the

 

charge to corporation tax’.

 

Dawn Primarolo

 

Agreed to  148

 

Clause  121,  page  106,  line  28   [Vol  I],  leave out ‘not a company’ and insert ‘a

 

person other than a company within the charge to corporation tax’.


 
 

S.C.A.    Standing Committee Proceedings: 8th June 2006            

281

 

Finance (N, continued

 
 

Dawn Primarolo

 

Agreed to  149

 

Clause  121,  page  107,  line  7   [Vol  I],  leave out ‘Section 231 of ICTA’ and

 

insert ‘Sections 231 of ICTA and 397 of ITTOIA 2005’.

 

Clause, as amended, Agreed to.

 

Clauses 122 to 124 Agreed to.

 


 

Dawn Primarolo

 

Agreed to  150

 

Clause  125,  page  110,  line  5   [Vol  I],  leave out ‘earlier’ and insert ‘later’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Negatived on division  210

 

Clause  125,  page  110,  line  7  [Vol  I],  at end insert—

 

‘(7A)    

For the purposes of this section completion of development shall be taken to

 

occur on practical completion of the main contract for the relevant building

 

works.’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  211

 

Clause  125,  page  110,  line  7  [Vol  I],  at end insert—

 

‘(7B)    

For the purposes of subparagraph 7(b) of this section, each development of

 

property shall be assessed separately to establish if the costs exceed 30 per cent

 

of the fair value of the property.’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  212

 

Clause  125,  page  110,  line  7  [Vol  I],  at end insert—

 

‘(7C)    

Where a property acquired by a company to which this Part applies is developed

 

and held for three years before disposal, the asset shall be treated as being

 

disposed of in the course of the business of C (tax exempt).’.

 

Clause, as amended, Agreed to.


 
 

S.C.A.    Standing Committee Proceedings: 8th June 2006            

282

 

Finance (N, continued

 
 

Clauses 126 to 128 Agreed to.

 


 

Dawn Primarolo

 

Agreed to  151

 

Clause  129,  page  111,  line  23   [Vol  I],  leave out ‘Commissioners’ and insert

 

‘Treasury’.

 

Clause, as amended, Agreed to.

 


 

Dawn Primarolo

 

Agreed to  152

 

Clause  130,  page  111,  line  35   [Vol  I],  leave out ‘a requirement’ and insert

 

‘Condition 1, 2, 5 or 6’.

 

Dawn Primarolo

 

Agreed to  153

 

Clause  130,  page  111,  line  40   [Vol  I],  leave out ‘a requirement’ and insert

 

‘Condition 1, 2, 5 or 6’.

 

Clause, as amended, Agreed to.

 

Clauses 131 to 134 Agreed to.

 


 

Dawn Primarolo

 

Agreed to  154

 

Schedule  17,  page  87,  line  39   [Vol  II],  at end insert—

 

‘(i)    

as if section 111 applied to UK property rental business

 

(within the meaning given by paragraph 32(1)) carried on by

 

them,’.

 

Dawn Primarolo

 

Agreed to  155

 

Schedule  17,  page  87,  line  40   [Vol  II],  after ‘tax’, insert ‘under Case VI of

 

Schedule D’.

 

Dawn Primarolo

 

Agreed to  156

 

Schedule  17,  page  87,  line  41   [Vol  II],  leave out ‘under Chapter 9 of Part 6 of

 

ITTOIA (other income)’.

 

Dawn Primarolo

 

Agreed to  157

 

Schedule  17,  page  88,  line  38   [Vol  II],  leave out ‘UK property’ and insert

 

‘property rental’.


 
 

S.C.A.    Standing Committee Proceedings: 8th June 2006            

283

 

Finance (N, continued

 
 

Dawn Primarolo

 

Agreed to  158

 

Schedule  17,  page  88,  line  42   [Vol  II],  leave out ‘property’.

 

Dawn Primarolo

 

Agreed to  159

 

Schedule  17,  page  88,  line  44   [Vol  II],  after ‘another’, insert ‘, as set out in the

 

financial statement under paragraph 31(2)(a).’.

 

Dawn Primarolo

 

Agreed to  160

 

Schedule  17,  page  93,  line  10   [Vol  II],  leave out sub-paragraph (2) and

 

insert—

 

    ‘(2)  

Business carried on by a non-UK resident company is property rental business

 

for the purposes of this Part if the business would be property rental business

 

within the meaning given by section 104 if it were carried on by a UK resident

 

company.’.

 

Dawn Primarolo

 

Agreed to  161

 

Schedule  17,  page  93,  line  30   [Vol  II],  leave out from first ‘dividend’ to ‘shall’

 

in line 31 and insert ‘which represents (wholly or partly and directly or indirectly) profits

 

of UK property rental business of a non-UK resident member of the group, such

 

proportion of the dividend as represents those profits’.

 

Dawn Primarolo

 

Agreed to  162

 

Schedule  17,  page  93,  line  39   [Vol  II],  at end insert—

 

‘Takeovers

 

33  (1)  

This paragraph applies if a company to which Part 4 applies, or a member of a

 

group to which Part 4 applies, becomes a member of a group (or of another

 

group) to which Part 4 applies.

 

      (2)  

Where this paragraph applies, the following provisions of Part 4 shall not have

 

effect—

 

(a)    

section 111 (as modified by paragraphs 9 and 10 above),

 

(b)    

section 112 (as modified by paragraph 11 above), and

 

(c)    

section 131 (or section 131 as modified by paragraphs 25 and 26

 

above).’.

 

Schedule, as amended, Agreed to.

 

Clauses 135 to 142 Agreed to.

 



 
 

S.C.A.    Standing Committee Proceedings: 8th June 2006            

284

 

Finance (N, continued

 
 

Dawn Primarolo

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not selected  213

 

Page  117,  line  23  [Vol  I],  leave out Clause 143.

 

Clause Disagreed to.

 

Clause 144 to 146 Agreed to.

 


 

Further consideration adjourned—(John Heppell.)

 

[Adjourned till Tuesday next at 10.30 a.m.


 
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