House of Commons

Session 2006-07 Publications on the internet Bill Home Page

Thursday 24th 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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Mr Stephen Timms

159

Clause 60, page 41, line 5, leave out ‘19(4)’ and insert ‘19’.

Mr Stephen Timms

160

Clause 60, page 41, line 6, after ‘fees)’ insert ‘—

(a) in sub-paragraph (4),’.

Mr Stephen Timms

161

Clause 60, page 41, 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.”, and

(b) after sub-paragraph (7) insert—

“(8) 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 sub-paragraph (4) to the relevant company include the old company.”’.

Mr Stephen Timms

162

Clause 60, page 41, line 11, leave out ‘amendment made by subsection (1) has’ and insert ‘amendments made by subsection (1) have’.

Mr Stephen Timms

163

Clause 60, page 41, line 13, leave out ‘It also has’ and insert ‘They also have’.

Mr Stephen Timms

164

Clause 60, page 41, line 30, leave out ‘amendment’ and insert ‘amendments’.

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Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett

211

Clause 65, page 42, line 28, at end insert—

‘(1A) Paragraph 21 of Schedule 15 to the Finance Act 2004 shall be amended by leaving out subparagraph (1)(b).

(1B) Paragraph 22 of Schedule 15 to the Finance Act 2004 shall be amended by leaving out subparagraph (1)(b).’.

Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett

119

Clause 65, page 42, line 35, at end insert—

‘(4) Any purported election made on the appropriate form or before the regulations prescribing the form of election came into effect shall be deemed always to have been made in the prescribed manner under subparagraph (2) above.’.

Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett

212

Clause 65, page 42, line 35, at end insert—

‘(4) An appeal shall lie to the Special Commissioners against a refusal to allow making an election at a date after the relevant filing date and the Special Commissioners shall allow such an appeal where the refusal to permit a late election was unreasonable.’.

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Mr Stephen Timms

134

Schedule 19, page 228, line 9, leave out from ‘arrangement’ to end of line 11.

Mr Stephen Timms

135

Schedule 19, page 228, line 43, leave out from ‘paid’ to end of line 2 on page 229 and insert ‘in respect of members of schemes whose deaths occur on or after 6th April 2007.’.

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Mr Stephen Timms

136

Schedule 20, page 232, line 25, leave out paragraph 9 and insert—

‘9 In section 166(2)(a) (when person becomes entitled to pension commencement lump sum), after “paid” insert “(or, if the person dies before becoming entitled to the pension in connection with which it was anticipated it would be paid, immediately before death)”.

9A In section 219(7) (multiple benefit crystallisation events occuring by reason of payment of lump sum death benefits treated as occurring immediately before death), insert at the end “but immediately after any benefit crystallisation event occurring immediately before the individual’s death by virtue of section 166(2).”

9B (1) Schedule 29 (authorised lump sums) is amended as follows.

(2) In paragraph 1(1) (conditions to be met if lump sum is to be pension commencement lump sum)—

(a) for paragraph (a) substitute—

“(a) the member becomes entitled to it before reaching the age of 75,

(aa) the member becomes entitled to it in connection with becoming entitled to a relevant pension (or dies after becoming entitled to it but before becoming entitled to the relevant pension in connection with which it was anticipated that the member would become entitled to it)”,

(b) in paragraph (c), for “of three months beginning with” substitute “beginning six months before, and ending one year after,”, and

(c) omit paragraph (e) (but not including the “and” at the end).

(3) In paragraph 2 (“permitted maximum”), after sub-paragraph (5) insert—

“(5A) But if the member dies before becoming entitled to the relevant pension in connection with which it was anticipated that the member would become entitled to the lump sum, the permitted maximum is the available portion of the member’s lump sum allowance.”.’.

Mr Stephen Timms

137

Schedule 20, page 238, line 27, after ‘9’ insert ‘to 9B’.

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Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett

213

Clause 70, page 44, line 7, leave out from ‘a’ to ‘the’ in line 9 and insert ‘pre-ordained series of transactions is carried out in connection with the disposal and acquisition, and it is undertaken in pursuance of a scheme or arrangement the only or main purpose of which is the avoidance or reduction of Stamp Duty Land Tax payable on the acquisition by P or to secure or increase a repayment of Stamp Duty Land Tax in relation to that acquisition.’.

Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett

214

Clause 70, page 44, line 13, at end insert—

‘(1A) Transactions taking place more than three years before the acquisition of a property by P shall be disregarded for the purposes of subsection (1).’.

Mr Stephen Timms

184

Clause 70, page 45, line 20, leave out ‘(but subject to subsection (2))’.

Mr Stephen Timms

185

Clause 70, page 45, line 29, at end insert—

‘(3A) In subsection (3)—

(a) paragraph (a) is subject to subsection (2)(a) to (c),

(b) paragraph (b) is subject to subsection (2)(a) and (c), and

(c) paragraph (c) is subject to subsection (2)(a) to (c).’.

Mr Stephen Timms

186

Clause 70, page 45, line 31, at end insert—

‘(5) In this section a reference to the transfer of a chargeable interest from V to P includes a reference to a disposal by V of an interest acquired by P.’.

Mr Stephen Timms

187

Clause 70, page 46, line 2, at end insert—

‘(4A) In the application of section 75A(5) an amount given or received partly in respect of the chargeable interest acquired by P and partly in respect of another chargeable interest shall be subjected to just and reasonable apportionment.’.

Mr Stephen Timms

188

Clause 70, page 46, line 7, after first ‘a’ insert ‘property-investment’.

Mr Stephen Timms

189

Clause 70, page 46, line 7, after ‘partnership’ insert ‘(within the meaning of paragraph 14 of Schedule 15)’.

Mr Stephen Timms

190

Clause 70, page 46, line 21, at end insert ‘and may make provision with retrospective effect.”’.

Mr Stephen Timms

191

Clause 70, page 46, line 25, after ‘But’ insert—

‘(a) ’.

Mr Stephen Timms

192

Clause 70, page 46, line 28, at end insert—

‘, and

(b) a provision of new section 75C (inserted by subsection (1) above) shall not have effect where the disposal mentioned in new section 75A(1)(a) took place before the day on which this Act is passed, if or in so far as the provision would make a person liable for a higher amount of tax than would have been charged in accordance with those regulations.’.

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Mr Stephen Timms

106

Clause 71, page 47, line 9, leave out ‘sub-paragraph (1)(b),’ and insert ‘sub-paragraphs (1)(b) and (4),’.

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Mr Stephen Timms

193

Schedule 21, page 239, line 13, at end insert ‘and’.

Mr Stephen Timms

194

Schedule 21, page 239, line 16, leave out from ‘Commissioners’ to end of line 18.

Mr Stephen Timms

195

Schedule 21, page 239, line 33, at end insert ‘and’.

Mr Stephen Timms

196

Schedule 21, page 239, leave out lines 35 to 37.

Mr Stephen Timms

197

Schedule 21, page 240, line 12, at end insert ‘and’.

Mr Stephen Timms

198

Schedule 21, page 240, leave out lines 14 to 16.

Mr Stephen Timms

199

Schedule 21, page 240, line 45, at end insert ‘and’.

Mr Stephen Timms

200

Schedule 21, page 240, leave out lines 47 to 49.

Mr Stephen Timms

201

Schedule 21, page 241, line 43, after second ‘time’ insert ‘is a member State or any other State which at that time’.

Mr Stephen Timms

202

Schedule 21, page 242, line 18, at end insert ‘and’.

Mr Stephen Timms

203

Schedule 21, page 242, line 22, leave out from ‘(“the Commissioners”)’ to end of line 24.

Mr Stephen Timms

204

Schedule 21, page 242, line 37, at end insert ‘and’.

Mr Stephen Timms

205

Schedule 21, page 242, line 39, leave out from ‘market’ to end of line 41.

Mr Stephen Timms

206

Schedule 21, page 243, line 11, at end insert ‘and’.

Mr Stephen Timms

207

Schedule 21, page 243, line 13, leave out from ‘market’ to end of line 15.

Mr Stephen Timms

208

Schedule 21, page 243, line 42, at end insert ‘and’.

Mr Stephen Timms

209

Schedule 21, page 243, line 44, leave out from ‘market’ to end of line 46.

Mr Stephen Timms

210

Schedule 21, page 244, line 41, after second ‘time’ insert ‘is a member State or any other State which at that time’.

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Mr Stephen Timms

215

# Schedule 24, page 260, line 33, leave out ‘HMRC think that’.

Julia Goldsworthy
Dr Vincent Cable
Mr Colin Breed

2

Schedule 24, page 260, line 33, leave out ‘think’ and insert ‘have reasonable grounds for believing’.

Mr Stephen Timms

216

# Schedule 24, page 262, line 18, leave out ‘HMRC think that’.

Julia Goldsworthy
Dr Vincent Cable
Mr Colin Breed

3

Schedule 24, page 262, line 18, leave out ‘think’ and insert ‘have reasonable grounds for believing’.

Mr Stephen Timms

217

# Schedule 24, page 262, line 18, leave out ‘them,’ and insert ‘HMRC,’.

Mr Stephen Timms

218

# Schedule 24, page 262, line 41, leave out ‘HMRC think that’.

Julia Goldsworthy
Dr Vincent Cable
Mr Colin Breed

4

Schedule 24, page 262, line 41, leave out ‘think’ and insert ‘have reasonable grounds for believing’.

Mr Stephen Timms

219

# Schedule 24, page 265, line 22, leave out ‘HMRC think that’.

Julia Goldsworthy
Dr Vincent Cable
Mr Colin Breed

5

Schedule 24, page 265, line 22, leave out ‘think’ and insert ‘have reasonable grounds for believing’.

Mr Stephen Timms

220

# Schedule 24, page 265, line 24, leave out ‘HMRC think’.

Mr Stephen Timms

221

# Schedule 24, page 265, line 26, leave out ‘HMRC think that’.

Julia Goldsworthy
Dr Vincent Cable
Mr Colin Breed

6

Schedule 24, page 265, line 26, leave out ‘think’ and insert ‘have reasonable grounds for believing’.

Mr Stephen Timms

222

# Schedule 24, page 265, line 28, leave out ‘HMRC think’.

Mr Stephen Timms

223

# Schedule 24, page 265, line 30, leave out ‘HMRC think that’.

Julia Goldsworthy
Dr Vincent Cable
Mr Colin Breed

7

Schedule 24, page 265, line 30, leave out ‘think’ and insert ‘have reasonable grounds for believing’.

Mr Stephen Timms

224

# Schedule 24, page 265, line 32, leave out ‘HMRC think’.

Mr Stephen Timms

225

# Schedule 24, page 265, line 34, leave out ‘HMRC think that’.

Julia Goldsworthy
Dr Vincent Cable
Mr Colin Breed

8

Schedule 24, page 265, line 34, leave out ‘think’ and insert ‘have reasonable grounds for believing’.

Mr Stephen Timms

226

# Schedule 24, page 265, line 36, leave out ‘HMRC think’.

Mr Stephen Timms

227

# Schedule 24, page 265, line 38, leave out ‘HMRC think that’.

Julia Goldsworthy
Dr Vincent Cable
Mr Colin Breed

9

Schedule 24, page 265, line 38, leave out ‘think’ and insert ‘have reasonable grounds for believing’.

Mr Stephen Timms

228

# Schedule 24, page 265, line 40, leave out ‘HMRC think’.

Mr Stephen Timms

229

# Schedule 24, page 265, line 42, leave out ‘HMRC think that’.

Julia Goldsworthy
Dr Vincent Cable
Mr Colin Breed

10

Schedule 24, page 265, line 42, leave out ‘think’ and insert ‘have reasonable grounds for believing’.

Mr Stephen Timms

230

# Schedule 24, page 265, line 44, leave out ‘HMRC think’.

Julia Goldsworthy
Dr Vincent Cable
Mr Colin Breed

11

Schedule 24, page 266, line 2, leave out ‘think it right’ and insert ‘have reasonable grounds for believing it to be necessary’.

Mr Stephen Timms

231

# Schedule 24, page 267, line 10, leave out ‘HMRC think that’.

Julia Goldsworthy
Dr Vincent Cable
Mr Colin Breed

12

Schedule 24, page 267, line 10, leave out ‘think’ and insert ‘have reasonable grounds for believing’.

Mr Stephen Timms

232

# Schedule 24, page 267, line 19, leave out ‘they think that’.

Julia Goldsworthy
Dr Vincent Cable
Mr Colin Breed

13

Schedule 24, page 267, line 19, leave out ‘think’ and insert ‘have reasonable grounds for believing’.

Mr Stephen Timms

233

# Schedule 24, page 269, line 9, leave out ‘HMRC think’.

Julia Goldsworthy
Dr Vincent Cable
Mr Colin Breed

14

Schedule 24, page 269, line 9, leave out ‘think’ and insert ‘have reasonable grounds for believing’.

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Mr Stephen Timms

118

Schedule 26, page 281, line 17, at end insert—

‘8A In paragraph 4(2C)(b) of Schedule 26 to FA 2002 (derivative contracts: contracts excluded by virtue of their underlying subject matter), for “quoted” substitute “listed”.’.

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NEW CLAUSES

Charge on benefits received by former owner of property

Mrs Theresa Villiers
Mr Mark Hoban
Mr Mark Francois
Mr Paul Goodman
Mr David Evennett

NC1

To move the following Clause:—

‘(1) Paragraph 11 of Schedule 15 to the Finance Act 2004 is amended as follows.

(2) At the end of sub-paragraph (9)(a)(i), there is inserted “or the property from time to time representing such property which has been disposed of,”.

(3) In sub-paragraph (11), at the beginning, there is inserted “Subject to sub-paragraph (12A),”.

(4) After sub-paragraph (12) there is inserted—

“(12A) Sub-paragraph 12 shall not apply if in the taxable period both the following conditions are satisfied:

(a) the person in whose estate the relevant property is comprised for the purposes of IHTA 1984 as a result of section 49(1) of that Act (treatment of interests in possession) is the settlor of the relevant property which has become comprised in the settlement and he has a qualifying interest in possession in such relevant property; and

(b) the relevant property is held directly by the trustees and is the settled property in which the settlor has a qualifying interest in possession,

and if the above conditions are both satisfied in only part of the taxable period sub-paragraph (12) shall not apply to that part of the year of assessment in which they are not so satisfied;

and “settlor” shall have the meaning given to it by section 44 IHTA 1984 and “qualifying interest in possession” shall have the meaning given to it by section 59 IHTA 1984’.

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Trustee residence

Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Mr David Evennett

NC2

To move the following Clause:—

‘(1) Section 69 of the Taxation of Chargeable Gains Act 1992 is amended as follows.

(2) In subsection (2D) for the words after “were resident in the United Kingdom” substitute the words “in relation to the settlement unless the general administration of the trusts is ordinarily carried on outside the United Kingdom.”.’.

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Mr Stephen Timms

94

Schedule 27, page 293, line 38, column 2, leave out ‘2(2) to (5),’ and insert ‘2(2) and (3) to (5),’.

Mr Stephen Timms

95

Schedule 27, page 294, line 44, column 2, leave out ‘3,’.

Mr Stephen Timms

96

Schedule 27, page 294, column 2, leave out line 49.

Mr Stephen Timms

107

Schedule 27, page 299, line 36, leave out ‘14(1)(b),’ and insert ‘14(1)(b) and (4),’.

ORDER OF THE HOUSE [23RD APRIL 2007]

   That—

(1) Clauses Nos. 1, 3, 7, 8, 12, 20, 21, 25, 67 and 81 to 84, Schedules Nos 1, 18, 22 and 23, and new Clauses relating to microgeneration be committed to a Committee of the whole House;

(2) the remainder of the Bill be committed to a Public Bill Committee; and

(3) when the provisions of the Bill considered by the Committee of the whole House and the Public Bill Committee have been reported to the House, the Bill be proceeded with as if it had been reported as a whole to the House from the Public Bill Committee.

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RESOLUTION OF THE COMMITTEE [8TH MAY 2007]

   

   That the Committee shall meet—

    (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.,

   when the House is sitting.

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ORDER OF THE COMMITTEE [8TH MAY 2007]

   

   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.

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Prepared: 24 May 2007