sc1612305.259-263

House of Commons

Session 2005 - 06
Internet Publications
Other Bills before Parliament

S.C.A.
259

House of Commons

Tuesday 23rd May 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)

[NINTH and TENTH Sittings]

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Withdrawn  92

Clause  56,  page  43,  line  20  [Vol  I],  leave out ‘shall’ and insert ‘may at the

election of the charity’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Withdrawn  93

Clause  56,  page  43,  line  26  [Vol  I],  leave out ‘shall’ and insert ‘may at the

election of the charity’.

Clause Agreed to.

Dawn Primarolo

Agreed to  71

Clause  57,  page  43  [Vol  I],  leave out line 36.

Clause, as amended, Agreed to.

S.C.A.    Standing Committee Proceedings: 23rd May 2006
260

Finance (N, continued

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not selected  94

Page  44,  line  3  [Vol  I],  leave out Clause 58.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Negatived on division  95

Clause  58,  page  44,  line  11  [Vol  I],  at end insert—

‘(3A)
After subsection (3E) insert—

“(3F)
Reliefs under this section shall be as follows—

(a)
for donations not exceeding £100, 25 per cent. of the gift;

(b)
for donations exceedings £100 but not exceeding £1000, £25;

and

(c)
for donations exceeding £1000, 2.5 per cent. of the gift up to a

maximum of £2500.”.’.

Clause Agreed to.

Clauses 59 and 60 Agreed to.

Clauses 62 to 68 Agreed to.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Withdrawn  103

Clause  69,  page  54,  line  10  [Vol  I],  at end insert—

‘(2D)
Arrangements where the tax advantage arises due to the creation or utilisation of

an allowable loss shall not be treated as arrangements for the purposes of Part VII

of the Finance Act 2004.

(2E)
Where an allowable loss accrues to a company in circumstances that are not

disqualifying circumstances, then for the purposes of the Tax Acts it should be

assumed that the Promoter and the company did not wish that the element of the

arrangements that secured a tax advantage not to be disclosed to any other

promoter or Her Majesty’s Revenue and Customs.”’.

S.C.A.    Standing Committee Proceedings: 23rd May 2006
261

Finance (N, continued

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  104

Clause  69,  page  54,  line  4  [Vol  I],  after ‘enforceable)’, insert ‘but

arrangements shall not include any election under section 24, 161 or 171A and shall not

apply to either the whole or part of the loss to the extent that the allowable loss

corresponds to an equivalent economic loss suffered by the company’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Withdrawn  105

Clause  69,  page  54,  line  10  [Vol  I],  at end insert—

‘(2D)
Subsection (2)(b) above shall not apply where, before the end of the accounting

period in which the allowance loss accrues, the Board have on the application of

the company notified the company that the Board are satisfied that the disposal or

deemed disposal does not accrue in disqualifying circumstances.

(2E)
Subsection (2D) shall be subject to the same procedures contained within section

138(2) to (5).”’.

Clause Agreed to.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Withdrawn  106

Clause  70,  page  57,  line  10  [Vol  I],  at end insert—

‘184DA
Sections 8, 184A and 184B: meaning of “main purpose”

For the purposes of sections 8, 184A and 184B “main purpose” means a purpose

without which the underlying commercial transaction would not have occurred.’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  107

Clause  70,  page  60,  line  4  [Vol  I],  at end insert—

‘(4A)
At the end of section 176, add—

“(10)
This section shall not apply to companies for disposals accruing after 5th

December 2005.”’.

S.C.A.    Standing Committee Proceedings: 23rd May 2006
262

Finance (N, continued

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  108

Clause  70,  page  60,  line  6  [Vol  I],  leave out from ‘212)’ to end of line 13 and

add ‘subsections (8H) and (8I) shall cease to have effect.’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  109

Clause  70,  page  60  [Vol  I],  leave out lines 25 to 28.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  110

Clause  70,  page  60,  line  29  [Vol  I],  leave out from beginning to end of line 2 on

page 61.

Clause Agreed to.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not moved  99

Clause  71,  page  61,  line  30  [Vol  I],  at end insert—

‘(5A)
The chargeable gain accruing to a company shall not be taxed as a chargeable gain

but instead shall be taxed as income in accordance with section 9 of the Income

and Corporation Taxes Act 1988.’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Withdrawn  100

Clause  71,  page  61  [Vol  I],  leave out lines 31 to 44.

S.C.A.    Standing Committee Proceedings: 23rd May 2006
263

Finance (N, continued

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  101

Clause  71,  page  62,  line  47  [Vol  I],  at end insert—

‘(5A)
Subsection (2)(b) above shall not apply where, before the end of the accounting

period in which the allowable loss accrues, the Board have on the application of

the company notified the company that the Board are satisfied that the disposal or

deemed disposal does not accrue in disqualifying circumstances.

(5B)
Subsection (2)(b) shall be subject to the same procedures as those contained in

section 138(2) to (5).’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  111

Clause  71,  page  62,  line  47 [Vol 1],  at end insert—

‘(5A)
The chargeable gain accruing to a company shall not be taxed as a chargeable gain

but instead shall be taxed as income in accordance with section 9 of the Income

and Corporation Taxes Act 1988.’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  102

Clause  71,  page  63,  line  1  [Vol  I],  leave out from beginning to end of line 18 on

page 65.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not selected  98

Page  61,  line  3  [Vol  I],  leave out Clause 71.

Clause Agreed to.

Clauses 72 to 76 Agreed to.

Dawn Primarolo

Agreed to  66

Schedule  6,  page  185,  line  5  [Vol  I],  leave out sub-paragraph (1) and insert—

    ‘(1)
After section 85B of FA 1996 (amounts recognised in determining company’s

profit or loss) insert—