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Thursday 17th 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
of the Committee [8th May].
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
31
Clause 27, page 17, line 28, 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 16A 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.’.
Mr Stephen Timms
68
Schedule 5, page 109, line 10, at
end insert—
10A (1) Section 85C of FA 1996 (amounts not fully
recognised for accounting purposes) is amended as follows.
(a) in paragraph (c), for the words from “has
at any time” to “liability”)” substitute “an
amount (a “relevant capital contribution”) has at any time
been contributed to the company which forms part of its capital (whether
share or other capital)”, and
(4) The amendments made by this paragraph have
effect in relation to periods of account ending on or after 9th May
2007.
(5) But, in relation to periods of account beginning
before that date, amounts are to be brought into account for the purposes
of Chapter 2 of Part 4 of FA 1996 as a result of those amendments only
if the amounts relate to any time on or after that date.’.
Mr Stephen Timms
69
Schedule 5, page 111, line 15, after
‘investment’ insert ‘or liability’.
Mr Stephen Timms
70
Schedule 5, page 111, line 16, after
‘made’ insert ‘, or the liability was incurred,’.
Mr Stephen Timms
71
Schedule 5, page 111, line 19, after
‘investment’ insert ‘or liability’.
Mr Stephen Timms
72
Schedule 5, page 111, line 26, at
beginning insert ‘In the case of amounts relating to investments,’.
Mr Stephen Timms
73
Schedule 5, page 111, line 28, after
‘But’ insert ‘in that case’.
Mr Stephen Timms
74
Schedule 5, page 111, line 30, at
end insert—
‘(6) In the case of amounts relating to
liabilities, those amendments have effect in relation to accounting
periods ending on or after 9th May 2007.
(7) But in that case, in relation to accounting
periods beginning before that date, amounts are to be left out of account
as a result of those amendments only if they relate to any time on or
after that date.’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
67
Schedule 6, page 115, line 5, leave
out ‘paragraph 41(8) of that Schedule’ and insert ‘section
577 of the Capital Allowances Act 2001’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
66
Schedule 6, page 115, line 11, after
‘2006’, insert ‘but where either the predecessor or
the successor has no principal company as therein provided (because
it is itself a principal company) it shall be deemed for the purposes
of this section to be its own principal company’.
Mr Stephen Timms
79
Clause 31, page 23, line 7, leave
out ‘and’.
Mr Stephen Timms
80
Clause 31, page 23, line 7, at
end insert—
“(ca) no qualifying change of ownership occurs at
any time in relation to the principal company of that group for the
purposes of section 184A of TCGA 1992 directly or indirectly in consequence
of, or otherwise in connection with, any arrangements the main purpose,
or one of the main purposes, of which is to secure a tax advantage falling
within subsection (1)(d) of that section, and”,’.
Mrs Theresa Villiers
Mr Mark Hoban
Mr Paul Goodman
Mr Mark Francois
Mr David Evennett
83
Clause 31, page 23, line 34, leave
out ‘that date’ and insert ‘5th December 2005’.
Mr Stephen Timms
81
Clause 31, page 23, line 34, at
end insert ‘; but the amendment made by subsection (5)(ca) has
no effect in relation to disposals made before 9th May 2007.’.
Mr Stephen Timms
75
Clause 32, page 24, line 15, after
‘premium’ insert ‘or other consideration’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
15
Clause 35, page 26, line 30, after
‘No’, insert ‘qualifying expenditure shall form any
part of the residue of qualifying expenditure when a’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
16
Clause 35, page 26, line 33, after
‘Part,’, insert—
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
17
Clause 35, page 26, line 38, leave
out ‘before 1st April 2011’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
18
Clause 35, page 26, line 40, leave
out subsections (2) and (3).
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
19
Clause 35, page 27, line 9, after
‘No’, insert ‘qualifying expenditure shall form any
part of the residue of qualifying expenditure when a’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
20
Clause 35, page 27, line 10, after
‘if’, insert—
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
21
Clause 35, page 27, line 12, leave
out subsection (5).
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
22
Clause 35, page 27, line 16, leave
out ‘subsections (4) and (5)’ and insert ‘subsection
(4)’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
23
Clause 35, page 27, line 19, leave
out ‘before 1st April 2011’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
24
Clause 35, page 27, line 28, at
end add—
Mr Stephen Timms
105
Schedule 7, page 123, line 37, leave
out ‘linked assets’ and insert ‘assets linked to the
relevant business so far as so referable’.
Mr Stephen Timms
87
Schedule 7, page 132, line 8, after
‘(b)’ insert ‘of subsection (6)’.
Mr Stephen Timms
88
Schedule 8, page 144, line 39, leave
out from beginning to ‘charged’ in line 41 and insert ‘the
profits of the life assurance business of the company for the preceding
accounting period were’.
Mr Stephen Timms
89
Schedule 9, page 159, line 13, leave
out from ‘to’ to end of line 14 and insert ‘periods
of account beginning on or after 1st January 2007 where the transfer
of business or demutualisation concerned took place before 21st March’.
Mr Stephen Timms
90
Schedule 10, page 159, line 22, leave
out from beginning to end of line 10 on page 163 and insert—
11 In section 83ZA(4) of FA 1989 (contingent loans),
for “the end of the” substitute “any time during a”.’.
Mr Stephen Timms
91
Schedule 10, page 164, line 20, at
end insert—
‘(4) In section 211 of TCGA 1992 (transfers
of business: application of section 139 of that Act), as amended by
paragraph 14 of Schedule 9 to this Act, after subsection (2) insert—
(5) In paragraph 17 of Schedule 7AC to TCGA 1992
(substantial shareholdings exemption: special rules for assets of insurance
company’s long-term insurance fund), after sub-paragraph (4) insert—
“(4A) The reference in sub-paragraph (2) to
an asset of the investing company’s long-term insurance fund,
and the references in sub-paragraphs (3) and (4) to shares or an interest
in shares held as assets of its long-term insurance fund, do not include
a structural asset, or structural assets, within the meaning of section
83XA of the Finance Act 1989.”.’.
Mr Stephen Timms
92
Schedule 10, page 170, line 33, leave
out ‘amendments made by paragraph 1 to 3’ and insert ‘amendment
made by paragraph 1 has effect on and after 10th May 2007.
( ) The amendments made by paragraphs 3,’.
Mr Stephen Timms
93
Schedule 10, page 170, line 35, at
end insert—
‘( ) But the amendment made by paragraph
3(4) does not apply where the transfer of business concerned took place
before 10th May 2007.’.
Mr Stephen Timms
76
Schedule 11, page 172, line 38, leave
out from first ‘the’ to ‘and’ in line 40 and
insert ‘reinsurance to close amounts of the members,’.
Mr Stephen Timms
77
Schedule 11, page 173, leave
out lines 1 to 6 and insert—
‘(a) the reference to reinsurance to close
amounts of any member of a Lloyd’s syndicate is to any consideration
which, in accordance with the rules or practice of Lloyd’s, is
given (or any amount which, in accordance with those rules or practice,
is treated as consideration given) by the member in respect of the liabilities
arising from the member’s underwriting business in an underwriting
year for the purpose of closing the accounts of the business for that
year, and’.
Mr Stephen Timms
78
Schedule 11, page 173, line 19, at
end insert—
Mr Stephen Timms
102
Schedule 13, page 180, line 9, after
‘that’, insert ‘or any other’.
Mr Stephen Timms
103
Schedule 13, page 180, line 9, after
‘period’, insert ‘or taken into account in calculating
the amounts which are so recognised’.
Mr Stephen Timms
104
Schedule 13, page 183, line 21, after
‘that’, insert ‘or any other’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
108
# Schedule 15, page 196, line 5, leave
out from first ‘amount’ to end of line 7 and insert ‘is
created directly by genuine business activities, and which—’
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
109
# Schedule 15, page 196, line 11, leave
out subsection (5).
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
110
# Schedule 15, page 196, line 27, leave
out from ‘subsection (4)’ to end of line 33 and insert “genuine
business activities” means business activities which—
(b) are actually carried on in that territory through that
establishment, having regard to premises, staff, equipment and assets.’.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett
111
# Schedule 15, page 196, line 39, leave
out subsection (9).
Mr Stephen Timms
84
Clause 52, page 33, line 32, leave
out sub-paragraph (ii) and insert—
Mr Stephen Timms
85
Clause 52, page 35, line 50, at
end insert—
Mr Stephen Timms
116
* Clause 56, page 38, line 33, at
end insert—
Mr Stephen Timms
117
* Clause 56, page 39, line 5, leave
out subsection (7).
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