House of Commons Public Bill Committee Proceedings

House of Commons

Session 2006 - 07
Internet Publications
Other Bills before Parliament

Public Bill Committee Proceedings: 22nd May 2007
28

Finance Bill, continued

(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.’.

Schedule, as amended, Agreed to.

Clauses 42 and 43 Agreed to.

Schedule 12 Agreed to.

Clauses 44 to 46 Agreed to.

Mr Stephen Timms

Agreed to  102

Schedule  13,  page  180,  line  9,  after ‘that’, insert ‘or any other’.

Mr Stephen Timms

Agreed to  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

Agreed to  104

Schedule  13,  page  183,  line  21,  after ‘that’, insert ‘or any other’.

Schedule, as amended, Agreed to.

Schedule 14 Agreed to.

Clause 47 Agreed to.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Withdrawn  108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

Not called  109

Schedule  15,  page  196,  line  11,  leave out subsection (5).

Public Bill Committee Proceedings: 22nd May 2007
29

Finance Bill, continued

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Not called  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

Not called  111

Schedule  15,  page  196,  line  39,  leave out subsection (9).

Schedule Agreed to.

Clauses 48 to 50 Agreed to.

Julia Goldsworthy

Dr Vincent Cable

Mr Colin Breed

Withdrawn  181

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

Julia Goldsworthy

Dr Vincent Cable

Mr Colin Breed

Not called  182

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

Mr Stephen Timms

Agreed to  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

Agreed to  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—

Public Bill Committee Proceedings: 22nd May 2007
30

Finance Bill, continued

  “(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

Agreed to  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

Agreed to  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

Agreed to  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

Agreed to  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—

Public Bill Committee Proceedings: 22nd May 2007
31

Finance Bill, continued

“(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

Agreed to  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

Agreed to  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

Agreed to  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

Agreed to  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.”’.

Mr Stephen Timms

Agreed to  175

Schedule  16,  page  210,  line  27,  leave out ‘wholly for money’and insert ‘,