House of Commons

Session 2006-07 Publications on the internet Bill Home Page

Tuesday 5th June 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

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

234

Clause 70, page 44, line 13, leave out ‘its disposal by V’ and insert ‘the disposal referred to in subsection (a) above’.

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).’.

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

235

Clause 70, page 44, line 40, leave out ‘the largest amount (or aggregate amount)’.

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

236

Clause 70, page 44, line 42, after ‘(a)’, insert ‘the largest amount’.

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

237

Clause 70, page 44, line 44, after ‘(b)’, insert ‘the aggregate amount’.

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

238

Clause 70, page 45, line 7, at end insert—

‘(c) the exercise of a statutory right of enfranchisement, extension or enlargement of a leasehold interest.’.

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.’.

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

239

Clause 70, page 46, line 1, leave out ‘and 75’ and insert ‘75, and Schedule 7, Part 1’.

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),’.

Mr Stephen Timms

243

Clause 71, page 48, line 26, at end insert—

‘(13A) But the amendments made by subsections (6) and (10) do not have effect in respect of anything done in respect of a property-investment partnership established before the day on which this Act is passed if—

(a) the partnership does not acquire a chargeable interest on or after that day, and

(b) stamp duty land tax was paid in respect of each chargeable interest acquired before that day, by reference to chargeable consideration of not less than the market value.’.

Mr Stephen Timms

244

Clause 71, page 48, line 30, leave out ‘and’ and insert ‘to’.

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

247

Clause 87, page 61, line 8, at end insert ‘or within a reasonable time thereafter when an electronic return cannot be delivered by reason of the failure or non availability of an official computer system as defined in Regulation 189 of the Income Tax (Pay as You Earn) Regulations 2003’.

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

245

Clause 87, page 61, line 8, at end insert—

‘(c) on or before 31st January for a non-electronic return, if submitted by a person who is registered blind.’

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

246

Clause 87, page 61, line 16, at end insert—

‘(A1) This section shall not come into force until the Commissioners have conducted an independent review of the security and reliability of the HMRC electronic filing system’.

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Mr Stephen Timms

241

Clause 90, page 63, line 2, leave out subsection (1) and insert—

‘(1) In section 9(2) of TMA 1970 (returns to include self-assessment)—

(a) in paragraph (a) for “30th September” substitute “31st October”, and

(b) in paragraph (b) for “31st July” substitute “31st August”.’.

Mr Stephen Timms

242

Clause 90, page 63, line 11, at end insert—

‘(2A) In section 9A(6) of TMA 1970 (notice of enquiry: “the filing date”) for the words from “means” to the end substitute “means, in relation to a return, the last day for delivering it in accordance with section 8 or 8A.’.

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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,’.

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

248

Schedule 24, page 262, line 19, leave out ‘30’ and insert ‘60’.

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

251

* Clause 97, page 68, line 20, after ‘above’, insert ‘in respect of any supply made after the date on which the order has effect.’.

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

252

* Clause 97, page 68, line 22, at end add—

‘(9C) An order may not be made under this subsection unless a draft of the statutory instrument containing the order has been laid before, and approved by a resolution of, the House of Commons.’.

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Mr Stephen Timms

240

Schedule 25, page 275, line 41, leave out ‘charitable purposes only’ and insert ‘a purpose other than that of private gain (within the meaning of the Gambling Act 2005)’.

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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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Prepared: 5 June 2007