House of Commons

Session 2006-07 Publications on the internet Bill Home Page

Tuesday 22nd May 2007

Public Bill Committee

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New Amendments handed in are marked thus *

Other Amendments not tabled within the required notice period are marked thus #

Finance Bill

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(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)

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Note

The amendments have been arranged in accordance with the Order of the Committee [8th May].

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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—

‘(ab) the qualifying expenditure in question is incurred after 21st March 2007 otherwise than pursuant to a relevant pre-commencement contract (see subsection (7));’.

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—

‘(a) the qualifying expenditure in question is incurred after 21st March 2007 otherwise than pursuant to a relevant pre-commencement contract; and

(b) ’.

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 27, at end add—

‘(8) This section shall not come into force unless the Treasury have laid before Parliament a report setting out the impact of the abolition of balancing adjustments and of the agricultural and industrial buildings allowances.’.

Julia Goldsworthy
Dr Vincent Cable
Mr Colin Breed

183

Clause 35, page 27, line 27, at end add—

‘(8) This section shall not come into force until the Treasury has laid before the House of Commons a report on consultations which it shall undertake with the agriculture and tourism industry within the period of six months from the date of the passing of this Act about the effects on those industries of the provisions of this section.’.

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Mr Stephen Timms

120

Schedule 7, page 118, line 23, after ‘being’ insert ‘all of the assets of the company’s long-term insurance fund which are’.

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

121

Schedule 7, page 125, line 39, leave out from ‘under’ to end of line 40 and insert ‘section 444ABD(1).’.

Mr Stephen Timms

122

Schedule 7, page 126, leave out lines 12 and 13 and insert ‘section 444ABD(1).’.

Mr Stephen Timms

123

Schedule 7, page 130, line 35, leave out ‘in relation to that category of business’.

Mr Stephen Timms

124

Schedule 7, page 130, line 35, at end insert—

‘(3A) Where the relevant income arises from foreign currency assets, the whole of the foreign tax is attributable to gross roll-up business, unless the case is one where subsection (7) below applies.”.’.

Mr Stephen Timms

125

Schedule 7, page 130, line 40, leave out from ‘for’ to end of line 42 and insert ‘the words following “is” substitute “gross roll-up business.”

(7) In subsection (6)—

(a) omit “or 432D” (in both places), and

(b) for “the category of business in question” and “that category” substitute “gross roll-up business”.

(7A) In subsection (7), for—

(a) “the category of business in question”, and

(b) “that category”,

substitute “gross roll-up business”.’.

Mr Stephen Timms

87

Schedule 7, page 132, line 8, after ‘(b)’ insert ‘of subsection (6)’.

Mr Stephen Timms

126

Schedule 7, page 133, line 5, leave out ‘subsection (1)’ and insert ‘subsections (1) and (1A)’.

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Mr Stephen Timms

127

Schedule 8, page 140, line 10, leave out ‘85A(3)(a)’ and insert ‘85A(3)(b)’.

Mr Stephen Timms

128

Schedule 8, page 140, line 17, leave out ‘85A(3)(a)’ and insert ‘85A(3)(b)’.

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’.

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Mr Stephen Timms

129

Schedule 9, page 151, leave out lines 12 to 19.

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’.

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Mr Stephen Timms

90

Schedule 10, page 159, line 22, leave out from beginning to end of line 10 on page 163 and insert—

‘Contingent loans

1 In section 83ZA(4) of FA 1989 (contingent loans), for “the end of the” substitute “any time during a”.’.

Mr Stephen Timms

130

Schedule 10, page 163, line 16, leave out ‘by an insurance company held in a non-profit fund’ and insert ‘held by an insurance company in a non-profit fund.

(1A) For the purposes of subsection (1) above—

(a) an increase in the value of structural assets includes any amount by which their fair value when they cease to be structural assets, or come to be held otherwise than in any of the company’s non-profit funds, exceeds their admissible value at the end of the preceding period of account, and

(b) a decrease in the value of structural assets includes any amount by which the admissible value of the assets at the end of the period of account in which they become structural assets, or come to be held in any of the company’s non-profit funds, is less than their historic cost.’.

Mr Stephen Timms

131

Schedule 10, page 163, line 29, after ‘be’ insert ‘a structural asset or comes to be held otherwise than in any of the company’s non-profit funds and, immediately before it came to be a structural asset held in any of the company’s non-profit funds it (or any part of it) was’.

Mr Stephen Timms

132

Schedule 10, page 163, line 34, leave out from ‘the’ to end of line 46 and insert ‘relevant period of account.

(4A) For the purposes of subsection (4) above “the relevant value difference”, in relation to an asset, is—

HC - AV

where—

HC is its historic cost, and

AV is its admissible value at the relevant time.

(4B) In subsection (4) above “the relevant period of account” means—

(a) in a case within paragraph (a) of that subsection, the period of account in which the asset ceases to be a structural asset or comes to be held otherwise than in any of the company’s non-profit funds, and

(b) in a case within paragraph (b) of that subsection, the period of account in which the asset first comes to be held otherwise than by the company or (where the company is a member of a group) otherwise than by a company which is a member of the group;

and section 170 of the Taxation of Chargeable Gains Act 1992 (meaning of “group” etc) has effect for the interpretation of this subsection.

(4C) In this section “historic cost”, in relation to an asset which is or has been held in any of the company’s non-profit funds, means—

(a) where the asset came to be held in any of the company’s non-profit funds on acquisition from another person, the consideration given by the company for the acquisition of the asset, and

(b) otherwise, its fair value when it came to be held in any of the company’s non-profit funds.

(4D) In subsection (4A) above “admissible value”, in relation to an asset and a time, means the value of the asset as shown in column 1 of Form 13 of the periodical return for the period ending with that time (or as would be so shown if there were a periodical return covering a period ending with that time).

(5) In subsection (4A) above “the relevant time” means—

(a) in a case where assets become structural assets held in any of the company’s non-profit funds by virtue of the commencement of this section, 1st January 2007, and

(b) otherwise, the time when the assets become structural assets held in any of the company’s non-profit funds.’.

Mr Stephen Timms

133

Schedule 10, page 164, line 3, after ‘to’ insert ‘its’.

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—

“(2A) The reference in subsection (2) above to assets included in the transfer does not include structural assets within the meaning of section 83XA of the Finance Act 1989.”

(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.’.

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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—

‘(10A) The Commissioners for Her Majesty’s Revenue and Customs may by regulations—

(a) provide in prescribed circumstances for paragraph 1 not to apply in relation to any member of a Lloyd’s syndicate, or

(b) provide in prescribed circumstances for a reduction in relation to any member of a Lloyd’s syndicate of the amount which (as a result of that paragraph) is not to be taken into account in the calculation mentioned in sub-paragraph (2) of that paragraph.’.

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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’.

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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—

(a) are actually carried on in any EEA territory in which the controlled foreign company has a business establishment in any part of the relevant accounting period, and

(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).

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Julia Goldsworthy
Dr Vincent Cable
Mr Colin Breed

181

Schedule 16, page 200, line 4, leave out ‘50’ and insert ‘250’.

Julia Goldsworthy
Dr Vincent Cable
Mr Colin Breed

182

Schedule 16, page 200, line 10, leave out ‘50’ and insert ‘250’.

Mr Stephen Timms

165

Schedule 16, page 205, line 39, leave out from beginning to ‘for’ and insert—

‘(1) Paragraph 29 of Schedule 15 to FA 2000 is amended as follows.

(2) In sub-paragraph (3),’.

Mr Stephen Timms

166

Schedule 16, page 206, line 2, leave out from ‘company’ to end of line 3 and insert ‘throughout a period during which it created the whole or greater part (in terms of value) of the intangible asset.”

(3) After sub-paragraph (6) insert—

“(7) If—

(a) the issuing company acquired all the shares (“old shares”) in another company (“the old company”) at a time when the only shares issued in the issuing company were subscriber shares, and

(b) the consideration for the old shares consisted wholly of the issue of shares in the issuing company,

references in sub-paragraph (3) to the issuing company include the old company.”

9A In paragraph 86(2) (substitution of new shares for old shares), after “Schedule”, in the first place it occurs, insert “(except paragraph 29(7))”.’.

Mr Stephen Timms

167

Schedule 16, page 206, line 9, leave out from ‘company’ to end of line 10 and insert ‘throughout a period during which it created the whole or greater part (in terms of value) of the intangible asset.”,’.

Mr Stephen Timms

168

Schedule 16, page 206, line 12, at end insert ‘, and

(c) after subsection (5C) insert—

“(5D) If—

(a) the company mentioned in section 293(1) (“the issuing company”) acquired all the shares (“old shares”) in another company (“the old company”) at a time when the only shares issued in the issuing company were subscriber shares, and

(b) the consideration for the old shares consisted wholly of the issue of shares in the issuing company,

references in subsection (5) above to the company mentioned in section 293(1) include the old company.”

(1A) In section 304A of that Act (acquisition of share capital by new company)—

(a) in subsection (3), after “Chapter” insert “(except section 297(5D))”, and

(b) in subsection (4), after “Chapter” insert “(except section 297(5D))”.’.

Mr Stephen Timms

169

Schedule 16, page 206, line 18, at end insert—

‘(2A) In section 576K of that Act (share loss relief: substitution of new shares for old), after subsection (3) insert—

“(4) Nothing in subsection (2) applies in relation to section 195(7) of ITA 2007 as applied by section 576B(7) above for the purposes mentioned in section 576B(8).”’.

Mr Stephen Timms

170

Schedule 16, page 206, line 23, at end insert—

‘(3A) In section 146 of that Act (share loss relief: substitution of new shares for old), after subsection (2) insert—

“(3) Nothing in subsection (2) applies in relation to section 195(7) as applied by section 137(7) for the purposes mentioned in section 137(8).”’.

Mr Stephen Timms

171

Schedule 16, page 206, line 29, leave out from ‘company’ to end of line 30 and insert ‘throughout a period during which it created the whole or greater part (in terms of value) of the intangible asset.”,’.

Mr Stephen Timms

172

Schedule 16, page 206, line 31, at end insert ‘, and

(c) after that subsection insert—

“(7) If—

(a) the issuing company acquired all the shares (“old shares”) in another company (“the old company”) at a time when the only shares issued in the issuing company were subscriber shares, and

(b) the consideration for the old shares consisted wholly of the issue of shares in the issuing company,

references in subsection (4) to the issuing company include the old company.”

(5) In section 249 of that Act (substitution of new shares for old shares)—

(a) in subsection (2), after “Part” insert “(except section 195(7))”, and

(b) in subsection (4), after “Part” insert “(except section 195(7))”.’.

Mr Stephen Timms

173

Schedule 16, page 206, line 37, leave out from ‘company’ to end of line 38 and insert ‘throughout a period during which it created the whole or greater part (in terms of value) of the intangible asset.”’.

Mr Stephen Timms

174

Schedule 16, page 206, line 39, at end insert—

‘(4) After that subsection insert—

“(7) If—

(a) the relevant company acquired all the shares (“old shares”) in another company (“the old company”) at a time when the only shares issued in the relevant company were subscriber shares, and

(b) the consideration for the old shares consisted wholly of the issue of shares in the relevant company,

references in subsection (4) to the relevant company include the old company.”’.

Prepared: 22 May 2007