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Public Bill Committee Proceedings: 15th May 2007          

12

 

Finance Bill, continued

 
 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Mr David Evennett

 

Withdrawn  64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

 

Not called  65

 

Schedule  4,  page  104,  line  23,  at end insert—

 

‘103E

Meaning of “qualifying arrangement”

 

(1)    

For the purposes of this chapter, an arrangement is a qualifying arrangement if—

 

(a)    

the individual as a partner in a firm or as member of an LLP carries on a

 

trade which is conducted on a commercial basis and with a view to the

 

realisation of profits and involves genuine financial risk; and

 

(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.

 

(2)    

An application under subsection (1) shall be in writing and shall contain

 

particulars of the arrangements.

 

(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.

 

(4)    

If any such further information is not provided within 30 days from the

 

notification, or such further time as the Commissioners allow, they need not

 

proceed further on the application.

 

(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.


 
 

Public Bill Committee Proceedings: 15th May 2007          

13

 

Finance Bill, continued

 
 

(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.

 

(8)    

The Commissioners for Her Majesty’s Revenue and Customs may by regulations

 

provide that any activities of a specified description shall be precluded from being

 

qualifying arrangements for the purpose of this section, where specified means

 

specified in the regulations.

 

(9)    

The regulations under subsection (8) above may—

 

(a)    

make provision having retrospective effect,

 

(b)    

contain incidental, supplemental, consequential and transitional

 

provisions and savings, and

 

(c)    

make different provisions for different cases or purposes.

 

(10)    

No regulations may be made under this section unless a draft of them has been

 

laid before and approved by a resolution of the House of Commons.’.

 

Schedule Agreed to on division.

 

[Adjourned till Thursday at 9.00 a.m.


 
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