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Public Bill Committee Proceedings: 22nd May 2007          

32

 

Finance Bill, continued

 
 

(aa)    

the consideration for the disposal does not consist wholly of

 

new qualifying holdings’.

 

Mr Stephen Timms

 

Agreed to  176

 

Schedule  16,  page  210,  line  35,  after ‘disposal’ insert ‘(but see subsection (3A))’.

 

Mr Stephen Timms

 

Agreed to  177

 

Schedule  16,  page  210,  line  37,  leave out ‘money obtained from’ and insert ‘any

 

monetary consideration for’.

 

Mr Stephen Timms

 

Agreed to  178

 

Schedule  16,  page  210,  line  41,  at end insert—

 

‘(3A)    

If the consideration for the disposal includes new qualifying holdings,

 

subsection (2)(a) has effect as if the reference to the holding were to

 

the appropriate proportion of the holding (the value of which is that

 

proportion of the value of the holding, determined in accordance with

 

subsection (3)).

 

(3B)    

The appropriate proportion is—equation: over[plus[times[char[T],char[C]],minus[times[char[N],char[Q],char[H]]]],times[char[

T],char[C]]]

 

    

where—

 

TC is the market value (at the time of the disposal) of the total

 

consideration for the disposal, and

 

NQH is the market value (at that time) of the new qualifying holdings.’.

 

Mr Stephen Timms

 

Agreed to  179

 

Schedule  16,  page  211,  line  4,  at end insert—

 

‘(4A)    

“New qualifying holdings” means shares or securities which (on

 

transfer to the company) are comprised in the company’s qualifying

 

holdings.’.

 

Mr Stephen Timms

 

Agreed to  180

 

Schedule  16,  page  211,  line  7,  at end insert—

 

‘(6)    

Nothing in this section applies in relation to disposals between

 

companies that are merging (within the meaning of section 323).’.

 

Schedule, as amended, Agreed to.

 

Clause 51 Agreed to.

 



 
 

Public Bill Committee Proceedings: 22nd May 2007          

33

 

Finance Bill, continued

 
 

Mr Stephen Timms

 

Agreed to  138

 

Schedule  17,  page  214,  line  11,  leave out ‘transfers’ and insert ‘disposes of’.

 

Mr Stephen Timms

 

Agreed to  139

 

Schedule  17,  page  214,  line  13,  after ‘S’ insert ‘to another company (“P”),’.

 

Mr Stephen Timms

 

Agreed to  140

 

Schedule  17,  page  214,  line  14,  leave out ‘on the date of the transfer of the asset, S’

 

and insert ‘on the date when it acquires the interest in S, P’.

 

Mr Stephen Timms

 

Agreed to  141

 

Schedule  17,  page  214,  line  15,  after ‘109’ insert ‘(as modified by paragraph 8 of

 

Schedule 17)’.

 

Mr Stephen Timms

 

Agreed to  142

 

Schedule  17,  page  214,  line  17,  leave out ‘transfer’and insert ‘disposal of the

 

asset’.

 

Mr Stephen Timms

 

Agreed to  143

 

Schedule  17,  page  214,  line  18,  leave out ‘S’ and insert ‘the group of which S is a

 

member’.

 

Mr Stephen Timms

 

Agreed to  144

 

Schedule  17,  page  214,  line  19,  at end insert—

 

‘( )    

P may give a notice under section 109 (as modified by paragraph 8 of Schedule

 

17) in accordance with subsection (1)(c) even if it does not expect to satisfy

 

Conditions 3 to 6 of Section 106 throughout the accounting period specified in

 

the notice.’.

 

Mr Stephen Timms

 

Agreed to  145

 

Schedule  17,  page  214,  line  21,  leave out ‘S’ and insert ‘the group of which S is a

 

member’.

 

Mr Stephen Timms

 

Agreed to  146

 

Schedule  17,  page  214,  line  22,  leave out ‘transferred’ and insert ‘disposed of’.

 

Mr Stephen Timms

 

Agreed to  147

 

Schedule  17,  page  214,  line  24,  leave out ‘transfer’ and insert ‘disposal’.

 

Mr Stephen Timms

 

Agreed to  148

 

Schedule  17,  page  214,  line  25,  at end insert—


 
 

Public Bill Committee Proceedings: 22nd May 2007          

34

 

Finance Bill, continued

 
 

‘( )    

But if, at the end of the period of six months mentioned in subsection (1)(c),

 

Conditions 3 to 6 in section 106 are not satisfied in relation to P, subsection (2)

 

shall be treated as not having had effect.’.

 

Mr Stephen Timms

 

Agreed to  149

 

Schedule  17,  page  215,  line  13,  after ‘group’ insert ‘(“Group 1”)’.

 

Mr Stephen Timms

 

Agreed to  150

 

Schedule  17,  page  215,  line  16,  leave out ‘the group,’ and insert ‘Group 1,’.

 

Mr Stephen Timms

 

Agreed to  151

 

Schedule  17,  page  215,  line  19,  leave out ‘the principal company of a group’ and

 

insert ‘a member of another group (“Group 2”)’.

 

Mr Stephen Timms

 

Agreed to  152

 

Schedule  17,  page  215,  line  22,  leave out ‘it’ and insert ‘the company (or the

 

principal company of Group 2)’.

 

Mr Stephen Timms

 

Agreed to  153

 

Schedule  17,  page  215,  line  24,  leave out ‘the group,’ and insert ‘Group 1,’.

 

Mr Stephen Timms

 

Agreed to  154

 

Schedule  17,  page  215,  line  27,  leave out ‘the group.’ and insert ‘Group 1.’.

 

Mr Stephen Timms

 

Agreed to  155

 

Schedule  17,  page  215,  line  34,  leave out ‘the principal company’ and insert ‘a

 

member’.

 

Mr Stephen Timms

 

Agreed to  156

 

Schedule  17,  page  215,  line  36,  leave out ‘the group.’ and insert ‘Group 1.’.

 

Mr Stephen Timms

 

Agreed to  157

 

Schedule  17,  page  216,  line  3,  leave out ‘the principal company’ and insert ‘a

 

member’.

 

Mr Stephen Timms

 

Agreed to  158

 

Schedule  17,  page  216,  line  5,  leave out ‘the group.’ and insert ‘Group 1.’.

 

Schedule, as amended, Agreed to.

 



 
 

Public Bill Committee Proceedings: 22nd May 2007          

35

 

Finance Bill, continued

 
 

Mr Stephen Timms

 

Agreed to  84

 

Clause  52,  page  33,  line  32,  leave out sub-paragraph (ii) and insert—

 

‘(ii)    

to make a repayment of the capital (“the redemption payment”)

 

to the bond-holder during or at the end of the bond-term (whether

 

or not in instalments),’.

 

Mr Stephen Timms

 

Agreed to  85

 

Clause  52,  page  35,  line  50,  at end insert—

 

‘(7)    

For the purposes of section 417 of ICTA (close companies)—

 

(a)    

a bond-holder is a loan creditor in respect of the bond-issuer;

 

(b)    

arrangements falling within section 48A shall be disregarded in the

 

application of section 417(1)(d).

 

(8)    

For the purposes of Schedule 18 to ICTA (group relief)—

 

(a)    

a bond-holder is a loan creditor in respect of the bond-issuer;

 

(b)    

paragraph 1(5)(b) shall be disregarded in determining whether a person

 

is an equity holder by virtue of arrangements falling within section

 

48A.”’.

 

Clause, as amended, Agreed to.

 

Clauses 53 to 55 Agreed to.

 


 

Mr Stephen Timms

 

Agreed to  116

 

Clause  56,  page  38,  line  33,  at end insert—

 

‘(4)    

But the reference to offshore funds in section 760(3)(a) does not include any

 

arrangements which are not a collective investment scheme for the purposes of

 

that Part of that Act.”.’.

 

Mr Stephen Timms

 

Agreed to  117

 

Clause  56,  page  39,  line  5,  leave out subsection (7).

 

Clause, as amended, Agreed to.

 

Clause 57 Agreed to.

 

[Adjourned till Thursday at 9.00 a.m.


 
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