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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Withdrawn  92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Withdrawn  93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Withdrawn  103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—


 
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