Tuesday 8th May 2007
Public Bill Committee
Finance Bill
(except Clauses 1, 3, 7, 8, 12, 20, 21, 25,
67 and 81 to 84, Schedules 1, 18, 22 and 23, and
New Clauses relating to Microgeneration)
Note
The amendments have been arranged in accordance with the Order
to be proposed by Mr Stephen Timms.
Mr Stephen Timms
(a) on Tuesdays at 10.30 a.m. and 4.30 p.m., and
(b) on Thursdays at 9.00 a.m. and 1.00 p.m.,
Mr Stephen Timms
To move, That the order in which proceedings are taken shall
be: Clause 2, Clauses 4 to 6, Clauses 9 to 11, Clauses 13 to 19, Clauses
22 and 23; Schedule 2; Clause 24; Schedule 3; Clause 26; Schedule 4;
Clauses 27 to 29; Schedule 5; Clause 30; Schedule 6; Clauses 31 to 37;
Schedule 7; Clause 38; Schedule 8; Clause 39; Schedule 9; Clause 40;
Schedule 10; Clause 41; Schedule 11; Clauses 42 and 43; Schedule 12;
Clauses 44 to 46; Schedules13 and 14; Clause 47; Schedule 15; Clause
48 to 50; Schedule 16; Clause 51; Schedule 17; Clauses 52 to 66; Clause
68; Schedule 19; Clause 69; Schedule 20; Clauses 70 to 72; Schedule
21; Clauses 73 to 80; Clauses 85 to 96; Schedule 24; Clauses 97 to 104;
Schedule 25; Clauses 105 to 108; Schedule 26; Clauses 109 and 110; new
Clauses; new Schedules; Clauses 111 and 112; Schedule 27; and Clause
113.
Julia Goldsworthy
Dr Vincent Cable
Mr Colin Breed
1
Clause 10, page 6, line 23, at
end insert—
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
25
# Clause 11, page 8, line 12, at
end add—
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
38
* Schedule 3, page 90, line 16, after
‘payments’, insert ‘for a year of assessment’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
39
* Schedule 3, page 90, line 19, after
‘services’, insert ‘for that year of assessment’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
40
* Schedule 3, page 90, line 21, leave
out from ‘person’ to ‘the’ in line 22 and insert
‘whose sole or main business is the provision and facilitation
of’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
41
* Schedule 3, page 90, line 23, leave
out ‘involved with the company’ and insert ‘regularly
involved with all or most aspects of running the company on an ongoing
basis’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
42
* Schedule 3, page 90, line 24, at
end insert—
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
43
* Schedule 3, page 90, line 35, leave
out ‘subsection’ and insert ‘subsections’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
44
* Schedule 3, page 90, line 35, after
‘(1)(d)’, insert ‘or (2)’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
45
* Schedule 3, page 90, line 36, leave
out from ‘providing’ to end of line and insert ‘services
of a nature provided by advisers in a professional capacity, including
legal, accounting and company secretarial advice.’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
46
* Schedule 3, page 90, line 36, at
end insert—
‘(3A) For the purposes of subsection 3, accounting
advice includes, but is not limited to, advice and assistance concerning:
(a) preparation or provision of records, returns, financial
statements, reports or financial information concerning accounting;
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
47
* Schedule 3, page 91, line 2, at
end insert—
‘(3A) An MSC provider may be a partner in a partnership
(other than the individual referred to in section 61B(1)(a)) and may,
for the purposes of section 61B(1)(d), carry on, through the partnership,
the business of promoting or facilitating the partnership to provide
the services of individuals.’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
48
* Schedule 3, page 92, line 2, leave
out ‘mentioned in section 61D(1)(b)’ and insert ‘which
satisfies both section 61D(1)(b) and section 61D(1)(c).’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
49
* Schedule 3, page 95, line 45, at
end insert—
‘61K Implementation, investigation
and enforcement
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
50
* Schedule 3, page 96, line 10, after
‘customs’, insert ‘, acting with the authority of
the Commissioners for Her Majesty’s Revenue and Customs,’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
51
* Schedule 3, page 96, line 12, at
end insert—
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
52
* Schedule 3, page 96, line 16, leave
out ‘encouraged, facilitated’ and insert ‘actively
encourage or facilitated’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
53
* Schedule 3, page 96, line 20, at
end insert—
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
54
* Schedule 3, page 96, line 20, at
end insert—
‘(2B) Ordinary employees of the MSC provider shall
not fall within the scope of subsection (2); for the purposes of this
subsection, “ordinary employees” means employees who are
not involved with organising, managing or directing the overall activities
of the MSC provider.’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
55
* Schedule 3, page 96, line 20, at
end insert—
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
60
* Schedule 3, page 96, line 20, at
end insert—
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
61
* Schedule 3, page 96, line 20, at
end insert—
‘(2E) A person does not fall within subsection (2)(c)
merely by virtue of carrying on a business consisting only of placing
individuals with persons who wish to obtain their services (including
by contracting with companies which provide those services); but this
subsection does not apply if the person, or an associate of the person,
does anything within any of the paragraphs (c) to (e) of subsection
(2) of section 61B.’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
56
* Schedule 3, page 96, leave
out line 22 and insert ‘services of a nature provided by advisers
in a professional capacity, including legal, accounting and company
secretarial advice.’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
57
* Schedule 3, page 96, line 22, at
end insert—
‘(3A) For the purposes of subsection 3, accounting
advice includes, but is not limited to, advice and assistance concerning:
(a) preparation or provision of records, returns, financial
statements, reports or financial information concerning accounting;
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
58
* Schedule 3, page 96, line 22, at
end insert—
‘(3C) In determining the amount sought to be recovered
under these provisions from any person, regard must be had to the degree
of involvement by that person in the activities of the MSC, the running
of the MSC or the provision of services of the individual.’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
59
* Schedule 3, page 96, line 37, after
‘subsection’, insert ‘(3B), (3E) and’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
62
* Schedule 4, page 98, line 34, leave
out from beginning to end of line 34 on page 100.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
63
* Schedule 4, page 99, line 11, leave
out ‘£25,000’ and insert ‘£100,000’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
64
* Schedule 4, page 101, line 12, leave
out from ‘if’ to the end of line 14 and insert ‘it
is made in connection with any arrangement which is not a qualifying
arrangement under section 103E.’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
65
* Schedule 4, page 104, line 23, at
end insert—
(b) before the individual commences carrying on such trade,
the Commissioners for Her Majesty’s Revenue and Customs have on
the application of the firm or LLP notified the firm or LLP that the
Commissioners are satisfied that the arrangement is being entered into
for genuine commercial reasons and not as part of a scheme or arrangement
of which the sole or main expected benefit is the obtaining of a reduction
in tax liability by means of sideways relief or capital gains relief.
(3) If the Commissioners for Her Majesty’s Revenue
and Customs consider that the particulars or any further information
provided under subsection (1) of this subsection are insufficient for
the purposes of this section, they must notify the applicant as to what
further information they require for those purposes within 30 days of
receiving the particulars or information.
(5) The Commissioners for Her Majesty’s Revenue and
Customs shall notify their decision to the applicant within 30 days
of receiving the application under subsection (1)(b) or, if they give
notice under subsection (3) above, within 30 days of the notice being
complied with.
(6) If the Commissioners for Her Majesty’s Revenue
and Customs notify the applicant that they are not satisfied as mentioned
in subsection (1)(b) above or do not notify their decision to the applicant
within the time required by subsection (3) above, the applicant may
within 30 days of the notification of that time require the Commissioners
to transmit the application, together with any notice given and further
particulars furnished under subsection (3) above, to the Special Commissioners;
and in that event any notification by the Special Commissioners shall
have effect for the purposes of subsection (1) above as if it were a
notification by the Commissioners.
(7) If any particulars furnished under this section do
not fully and accurately disclose all facts and considerations material
for the decision of the Commissioners for Her Majesty’s Revenue
and Customs or the Special Commissioners, any resulting notification
that the Commissioners or Special Commissioners are satisfied as mentioned
in subsection (1)(b) above shall be void.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
31
# Clause 27, page 17, line 26, at
end insert—
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
34
# Clause 27, page 17, line 29, at
beginning insert ‘Subject to section 16B below,’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
30
# Clause 27, page 17, line 33, leave
out ‘, or one of the main purposes,’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
29
# Clause 27, page 17, line 34, after
‘arrangements’, insert ‘taken as a whole’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
27
# Clause 27, page 17, line 34, leave
out ‘secure a tax advantage’ and insert ‘avoid a liability
to capital gains tax, corporation tax or income tax’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
32
# Clause 27, page 17, line 34, at
end insert ‘; and
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
36
# Clause 27, page 17, line 34, at
end insert ‘; and
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
37
# Clause 27, page 17, line 34, at
end insert—
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
26
# Clause 27, page 17, line 38, leave
out from ‘enforceable),’ to end of line 7 on page 18.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
33
# Clause 27, page 17, line 38, leave
out ‘and’ and insert—
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
28
# Clause 27, page 18, line 11, leave
out ‘tax advantage is secured for’ and insert ‘avoidance
of liability to taxation relates to’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
35
# Clause 27, page 18, line 12, at
end insert—
(1) Section 137 shall not affect the operation of section
135 or 136 in any case where, before the issue is made, the Board have,
on the application of either company mentioned in section 137(1), notified
the Company that the Board are satisfied that the exchange, reconstruction
or amalgamation will be effected for bona fide commercial reasons and
will not form part of any such scheme or arrangements as are mentioned
in section 137(1).
(2) Any application under subsection (1) above shall be
in writing and shall contain particulars of the operations that are
to be effected; and the Board may, within 30 days of the receipt of
the application or of any further particulars previously required under
this subsection, by notice require the applicant to furnish further
particulars for the purpose of enabling the Board to make their decision;
and if any such notice is not complied with within 30 days or such longer
period as the Board may allow, the Board need not proceed further on
the application.
(3) The Board shall notify their decision to the applicant
within 30 days of receiving the application or, if they give a notice
under subsection (2) above, within 30 days of the notice being complied
with.
(4) If the Board notify the applicant that they are not
satisfied as mentioned in subsection (1) above or do not notify their
decision to the applicant within the time required by subsection (3)
above, the applicant may within 30 days of the notification or of that
time require the Board to transmit the application, together with any
notice given and further particulars furnished under subsection (2)
above, to the Special Commissioners; and in that event any notification
by the Special Commissioners shall have effect for the purposes of subsection
(1) above as if it were a notification by the Board.
(5) If any particulars furnished under this section do
not fully and accurately disclose all facts and considerations material
for the decision of the Board or the Special Commissioners, any resulting
notification that the Board or Commissioners are satisfied as mentioned
in subsection (1) above shall be void.’.
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