rs1970407.757-763

House of Commons

Session 2005 - 06
Internet Publications
Other Bills before Parliament

Report Stage Proceedings: 4th July 2006
757

Finance (N–[ [], continued

(b)
the person dies under the age of 18 years and, immediately before the

person’s death, section 71D of the Inheritance Tax Act 1984 (age 18-to-

25 trusts) applies to the property in which the interest subsists.’.

Mr Chancellor of the Exchequer

Agreed to  92

Page  404,  line  6  [Schedule  20],  at end insert—

‘(iii)
a disabled person’s interest within section 89B(1)(c) or (d) of

that Act, or’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Julia Goldsworthy

Not called  12

Page  404,  line  6  [Schedule  20],  at end insert—

‘(iii)
a disabled person’s interest, within the meaning given by section

89B of that Act; or’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  52

Page  404,  line  6  [Schedule  20],  at end insert—

‘(iii)
a relationship breakdown settlement interest within the meaning

given by section 59A of that Act, or’.

Mr Chancellor of the Exchequer

Agreed to  93

Page  404,  line  20  [Schedule  20],  leave out ‘(1B)’ and insert ‘(1B)(a)’.

Mr Chancellor of the Exchequer

Agreed to  94

Page  404,  line  27  [Schedule  20],  after ‘if’ insert ‘—

(a)’.

Mr Chancellor of the Exchequer

Agreed to  95

Page  404,  line  28  [Schedule  20],  at end insert ‘, or

(b)
the person dies under the age of 18 years and, immediately before the

person’s death, section 71D of the Inheritance Tax Act 1984 (age 18-to-

25 trusts) applies to the property in which the interest subsists.”.’.

Mr Chancellor of the Exchequer

Agreed to  96

Page  404,  line  33  [Schedule  20],  at end insert—

Report Stage Proceedings: 4th July 2006
758

Finance (N–[ [], continued

‘(db)
by virtue of subsection (2) of section 71E of that Act (age 18-to-25 trusts)

does not constitute an occasion on which inheritance tax is charged under

that section,”.’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  53

Page  405,  line  5  [Schedule  20],  after ‘interest’, insert ‘or

(iii)
a relationship breakdown settlement interest.’.

Remaining New ClauseS

No government funds or guarantees for new nuclear power stations

Rob Marris

Mr Ken Purchase

Kelvin Hopkins

Norman Baker

Mr Mike Weir

Hywel Williams

INVALID - REMOVE! 9

Not selected  nc1

To move the following Clause:—

‘(1)
Subject to subsection (2) below, no Minister of the Crown or Government

department shall provide funds to any nuclear power company, or guarantees of

a financial or commercial nature relating to the performance of any obligations of

any nuclear power company, in respect of the construction or operation of a new

nuclear power station or any part of it.

(2)
Subsection (1) above shall not preclude the provision of funds to a nuclear power

company, or the provision of guarantees relating to the performance of any of its

obligations, if they are provided under any enactment conferring a power or

imposing a duty on any such Minister or department to provide such funds or

guarantees—

(a)
to or for the benefit of persons of any class or description which includes

both a nuclear power company, and other organisations or persons; or

(b)
in respect of expenditure of any class or description which includes

expenditure on the construction or operation of a nuclear power station

or any part of it.

(3)
Where anything in contravention of subsection (1) above is done or proposed by

or on behalf of a Minister of the Crown or Government department, any person

who has suffered, or may suffer, loss in consequence of it may bring an action

against the Minister or department concerned.

(4)
In such an action the court may—

Report Stage Proceedings: 4th July 2006
759

Finance (N–[ [], continued

(a)
grant a delcaration that the thing done or proposed is or would be in

contravention of that subsection; or

(b)
subject to subsection (5) below, make an award of damages.

(5)
The court may only make an award of damages if the person bringing the action

has suffered loss in consequence of something done and if, at the time when it was

done, the Minister or Government department concerned knew—

(a)
that it was in contravention of subsection (1) above; and

(b)
that it would cause loss of the description suffered either to the person

bringing the action or to persons of a class to which he belongs.

(6)
The Crown Proceedings Act 1947 shall have effect as if anything done in

contravention of subsection (1) above were a tort committed by the Minister, or

by the Minister in charge of the department, by whom or on whose behalf the

thing was done.

(7)
In this section, a “nuclear power company” means an organisation which, other

than predominantly for the purposes of research, either—

(a)
generates electricity by means of a process involving nuclear fission or

nuclear fusion; or

(b)
deals with the radioactive materials used in connection with the said

electricity generation.

(8)
In this section, the term “guarantees of a financial or commercial nature”

includes, but is not restricted to—

(a)
indemnifying against potential liabilities,

(b)
guarantees in respect of potential liabilities,

(c)
insuring of potential liabilities,

(d)
underwriting of potential liabilities,

(e)
any form of price support,

(f)
guaranteed purchases of electricity.

(9)
In this section, a “new nuclear power station” means a power station generating

electricity, other than predominantly for research purposes, by means of a process

involving nuclear fission or nuclear fusion, which was not before 1 January 2007

generating electricity by either of those means.’.

Amendments to Finance Act 2004: Retirement Income Fund

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Negatived on division  nc3

To move the following Clause:—

‘(1)
The Finance Act 2004 is amended as follows.

(2)
In section 164 at end add “and

(g)
payments into a Retirement Income Fund.”.

(3)
In section 165 there is inserted in Pension rule 6 “or

(d)
a withdrawal from a Retirement Income Fund.”.

Report Stage Proceedings: 4th July 2006
760

Finance (N–[ [], continued

(4)
In section 165 after Pension rule 7 there is inserted—

“Pension Rule 8

Before a member makes a withdrawal from a Retirement Income Fund, he must

buy a relevant linked annuity which is linked to the retail prices index, which pays

an income equivalent to the Minimum Income Requirement.”.

(5)
In Schedule 28 after paragraph 16C there is inserted—

“Retirement Income Fund

16D(1)
Subject to subsections (2) and (3) of this section, a Retirement Income

Fund is a vehicle for the reinvestment of savings in retirement,

which—

(a)
has been established by a person designated by subsection (1)

of section 154; and

(b)
is a vehicle by whose investments are—

(i)
investments of a kind described in the Insurance

Companies Regulations 1994, Schedule X, Part 1; or

(ii)
approved by HM Revenue and Customs.

      (2)
Funds held in the Retirement Income Fund as referred to in subsection

(1) may be withdrawn from the Retirement Income Fund by the

member as and when he elects.

      (3)
A member may not invest in a Retirement Income Fund unless the

requirements of Rule 8 of section 165 have been met.

      (4)
A Retirement Income Fund, and any income derived from it, must not

be capable of assignment or surrender by the member.

      (5)
Any withdrawal from the Fund by the member under subsection (2)

shall be assessable to tax under Schedule E (and section 203 shall

apply accordingly) and shall be treated as earned income of the

member.

Minimum Retirement Income

16E(1)
The amount of Minimum Retirement Income shall be set for each

financial year following consultation by the Chancellor of the

Exchequer by order.

      (2)
An order under this section shall, in respect of each financial year after

that in which this section comes into force, be made on or before 31st

January preceding the year in question.

      (3)
An order under this section shall be made by statutory instrument and

shall be subject to annulment in pursuance of a resolution of either

House of Parliament.”.’.

Report Stage Proceedings: 4th July 2006
761

Finance (N–[ [], continued

Fuel duty (remote areas)

Danny Alexander

Mr Charles Kennedy

John Thurso

Mr Alistair Carmichael

Mr Alan Reid

Sir Robert Smith

Negatived on division  NC4

To move the following Clause:—

‘In the Hydrocarbon Oil Duties Act 1979 (c. 5) section 6 (excise duty on

hydrocarbon oil) there is inserted after subsection (1A)—

“(1AA)
The Treasury may, by order made by statutory instrument, specify lower

rates of duty under subsection (1A) in respect of hydrocarbon oil

products sold in remote areas.

(1AB)
For the purposes of this section ‘remote areas’ shall be defined in

regulations made by the Treasury by statutory instrument.

(1AC)
Orders or regulations made under this section shall not come into force

unless approved by a resolution of the Commons House of

Parliament.”.’.

Energy Products Directive

Danny Alexander

Mr Charles Kennedy

John Thurso

Mr Alistair Carmichael

Mr Alan Reid

Sir Robert Smith

Not selected  nc5

To move the following Clause:—

‘The Chancellor of the Exchequer shall—

(a)
undertake an investigation into the feasibility of applying for a

derogation from the Energy Products Directive to allow a lower rate of

fuel duty to apply to remote rural parts of the United Kingdom, giving

particular consideration to—

(i)
the financial impact on the Exchequer,

(ii)
variations in fuel cost and necessity of use of road transport in

remote rural areas,

(iii)
implications for government policy in respect of lowering carbon

emissions,

(iv)
implications for government policy in respect of social inclusion

in rural areas; and

Report Stage Proceedings: 4th July 2006
762

Finance (N–[ [], continued

(b)
not later than 1st May 2007 shall lay before Parliament a report on the

results of such investigation.’.

VAT and hydrocarbon oil duty offset

Mr Alex Salmond

Stewart Hosie

Angus Robertson

Pete Wishart

Mr Mike Weir

Mr Angus MacNeil

Not called  nc6

To move the following Clause:—

‘In the Hydrocarbon Oil Duties Act 1979 (c. 5) section 6 (excise duty on

hydrocarbon oil) there is inserted after subsection (1A)—

“(1AA)
In every Budget Statement the Chancellor of the Exchequer shall provide

his forecast for oil prices and set out anticipated yield from fuel duty and

VAT on fuel for this price and for a range of prices up to 50 per cent.

above his forecast.

(1AB)
In his 2006 pre-budget report the Chancellor of the Exchequer shall bring

forward a mechanism for—

(a)
using additional revenue from VAT on fuel above forecast to

offset fuel duty when the oil price rises above his forecast level,

and

(b)
providing specific fuel duty reductions targeted at fuel sold in

sparsely populated areas;


and the Chancellor of the Exchequer shall by order define ‘sparsely

populated areas’ for the purposes of this section.

(1AC)
Whenever international oil prices rise above the level estimated by the

forecast made in accordance with subsection (1AA), indexed fuel duty

increases shall be frozen until the international oil prices return to the

forecast level.”.’.

Dependant’s Retirement Income Fund

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Andrew Selous

Not called  NC7

To move the following Clause:—

‘(1)
The Finance Act 2004 is amended as follows:

Report Stage Proceedings: 4th July 2006
763

Finance (N–[ [], continued

(2)
In Schedule 28 after paragraph 22 insert—

“22A
Dependant’s retirement income fund

(1)
Subject to subsections (2) and (3) of this section, a department’s

retirement income fund is a vehicle for the reinvestment of savings in

reitrement, which—

(a)
has been established by a person designated by subsection (1) of

section 154; and

(i)
investments of a kind described in the Insurance

Companies Regulations 1994, Schedule X, Part 1; or

(ii)
approved by HM Revenue and Customs.

(2)
Funds held in the retirement income fund as referred to in subsection (1)

may be withdrawn from the retirement income fund by the members as

and when he elects.

(3)
A dependant may not invest in a dependant’s retirement income fund

unless the requirements of Rule 8 of section 165 have been met.

(4)
A retirement income fund, and any income derived from it, must not be

capable of assignment or surrender by the member.

(5)
Any withdrawal from the fund by the member under subsection (2) shall

be assessable to tax under Schedule E (and section 203 shall apply

accordingly) and shall be treated as earned income of the member.”.’.

Microgeneration: exemption from personal taxation (No. 1)

Alan Simpson

Norman Baker

Derek Wyatt

John Bercow

Mr David Chaytor

Mr Michael Clapham

Not selected  NC8

To move the following Clause:—

‘(1)
Any person who sells energy that has been generated by microgeneration to any

energy supplier shall not be liable for personal taxation on the income from that

sale.

(2)
In this section “microgeneration” has the same meaning as in section 82 of the

Energy Act 2004.’.