sc1612006.340-344

House of Commons

Session 2005 - 06
Internet Publications
Other Bills before Parliament

S.C.A.  Standing Committee Proceedings: 20th June 2006
340

Finance (N, continued

‘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.’.

Review of amusement machines

Mrs Theresa Villiers

Mr Mark Francois

Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  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.’.

Cost of claims for R & D

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  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.’.

Interpretation of Chapter IV of ICTA

Mr David Gauke

Not called  NC7

To move the following Clause:—

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

S.C.A.  Standing Committee Proceedings: 20th June 2006
341

Finance (N, continued

“(11)
This Chapter shall apply notwithstanding the terms of the European

Communities Act 1972.”.’.

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

Julia Goldsworthy

Mr Colin Breed

John Thurso

John Hemming

Withdrawn  nc8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—

S.C.A.  Standing Committee Proceedings: 20th June 2006
342

Finance (N, continued

(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.

S.C.A.  Standing Committee Proceedings: 20th June 2006
343

Finance (N, continued

      (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.’.

Yield from fuel duty and VAT on fuel (No. 2)

Stewart Hosie

Withdrawn  nc9

To move the following Clause:—

‘(1)
The Chancellor of the Exchequer shall publish a forecast for the price of crude oil

that shall include—

(a)
the anticipated yield from fuel duty; and

(b)
the anticipated yield from VAT on fuel


both for the forecast price and for a range of prices up to a maximum of 50 per

cent. above the forecast price.

(2)
The Chancellor of the Exchequer shall by regulations made by statutory

instrument provide that where the price of crude oil rises above the forecast price

S.C.A.  Standing Committee Proceedings: 20th June 2006
344

Finance (N, continued

published in accordance with subsection (1) any additional revenue from VAT on

fuel shall be applied to offset any indexed rise in the rate of fuel duty.’.

Dawn Primarolo

Agreed to  72

Schedule  26,  page  203  [Vol  II],  leave out lines 14 to 18.

Dawn Primarolo

Agreed to  223

Schedule  26,  page  209,  line  35 [Vol II],  at end insert—

‘In section 61(9) the words

“subsection (7) or”.’.

Dawn Primarolo

Agreed to  224

Schedule  26,  page  210 [Vol II],  leave out line 6 and insert—

‘In paragraph 6—

(a)
in sub-paragraph (1), the

words “Subject to sub-

paragraph (3) below,” and

(b)
sub-paragraphs (2) and (3).’.

Schedule, as amended, Agreed to.

Clauses 180 and 181 Agreed to.

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), as amended, to be reported.