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1381

 

House of Commons

 
 

Notices of Amendments

 

given up to and including

 

Wednesday 20th June 2007

 

New Amendments handed in are marked thus Parliamentary Star

 

Consideration of Bill


 

Finance Bill, as amended in the Committee and the Public Bill


 

Committee


 

New Clauses

 

Amendment of Provisional Collection of Taxes Act 1968

 

Mr David Cameron

 

Mr George Osborne

 

Mrs Theresa Villiers

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Mr David Gauke

 

NC1

 

To move the following Clause:—

 

‘(1)    

The Provisional Collection of Taxes Act 1968 (c. 2) is amended as follows.

 

(2)    

In subsection (4)(b), for the words “Standing Committee” there are substituted

 

the words “Public Bill Committee”.’.

 


 

Principles of good practice for retrospective taxation legislation

 

Mr David Cameron

 

Mr George Osborne

 

Mrs Theresa Villiers

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Mr David Gauke

 

NC2

 

To move the following Clause:—


 
 

Notices of Amendments: 20th June 2007                  

1382

 

Finance Bill, continued

 
 

‘(1)    

A Minister in charge of a Bill must, before Second Reading of the Bill—

 

(a)    

make a statement to the effect that, in his view, any retrospective taxation

 

provisions of the Bill are compatible with either of the relevant principles

 

of good practice (“a statement of compatibility”); or

5

(b)    

make a statement to the effect that, although he is unable to make a

 

statement of compatibility, the government nonetheless wishes the

 

House to proceed with the Bill.

 

(2)    

A statement under subsection (1) must be in writing and be published in such a

 

manner as the Minister making it considers appropriate.

10

(3)    

In this section, “retrospective taxation provisions” means provisions which—

 

(i)    

introduce any new tax, levy, impost or duty, or increase the rate or extend

 

the incidence of any existing tax, levy, impost or duty; and

 

(ii)    

take effect on a date earlier than the date on which the relevant enactment

 

enters into force.

15

(4)    

For the purpose of subsection (3) it is immaterial whether a Minister gives notice,

 

whether in Parliament or otherwise, of his intention to introduce a retrospective

 

taxation provision which takes effect on a date after the giving of that notice.

 

(5)    

In subsection (3)(i) “extend the incidence of any existing tax, levy, impost or

 

duty” includes the removal or attenuation of any relevant relief or drawback.

20

(6)    

In subsection (3)(ii) “take effect” includes the creation of a liability or obligation

 

to account for any increased charge to tax resulting from a provision of the kind

 

mentioned in subsection (3)(i), whether or not the date on which the increased

 

charge falls due for payment precedes the date on which the relevant enactment

 

is expressed to enter into force; and in this subsection “account for” includes any

25

decision by a company or business undertaking to absorb or pass on in the form

 

of higher customer prices or charges the additional costs to that company or

 

business undertaking arising from the increased charge to tax.

 

(7)    

“The relevant principles of good practice” mentioned in subsection (1) are—

 

(i)    

that it appears, whether as a result of a judgment given by a court or

30

otherwise, that some part of the law relating to taxation no longer

 

conforms to the reasonable expectations about its effect previously held

 

by taxation practitioners and that it is necessary to restore the position

 

retrospectively in order to protect the interests of the general body of

 

taxpayers;

35

(ii)    

that HMRC becomes aware of a new tax avoidance scheme and it is

 

necessary, in order to prevent a significant loss of tax revenue, to amend

 

the law retrospectively.

 

(8)    

In subsection (7) “taxation practitioners” includes the Treasury, HMRC, the

 

accountancy profession, professional tax advisers and groups representing the

40

interests of taxpayers; and “tax avoidance scheme” has the meaning given in the

 

Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) Regulations

 

2004 or the Tax Avoidance Schemes (Prescribed Descriptions of Arrangements)

 

Regulations 2006.

 

(9)    

A taxation provision introduced under the Provisional Collection of Taxes Act

45

1968 is not to be treated as having retrospective effect for the purposes of this

 

section unless the date on which the relevant resolution of the House of Commons

 

under either section 1 or section 5 of that Act is expressed to take effect is a date

 

earlier than the date on which the resolution under section 1 or, as the case may

 

be, section 5 is passed.

 

As Amendments to Mr David Cameron’s proposed New Clause (Principles of good

 

practice for retrospective taxation legislation) (NC2):—


 
 

Notices of Amendments: 20th June 2007                  

1383

 

Finance Bill, continued

 
 

Mr Christopher Chope

 

Mr Greg Knight

 

Mr Edward Leigh

 

Sir Nicholas Winterton

 

(a)

 

Parliamentary Star    

Line  2,  leave out ‘(a)’.

 

Mr Christopher Chope

 

Mr Greg Knight

 

Mr Edward Leigh

 

Sir Nicholas Winterton

 

(b)

 

Parliamentary Star    

Line  3,  leave out ‘either of’.

 

Mr Christopher Chope

 

Mr Greg Knight

 

Mr Edward Leigh

 

Sir Nicholas Winterton

 

(c)

 

Parliamentary Star    

Line  6,  leave out from ‘compatibility’ to end of line 8.

 


 

Report on HMRC’s performance in handling VAT applications

 

Mr David Cameron

 

Mr George Osborne

 

Mrs Theresa Villiers

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Mr David Gauke

 

nc3

 

To move the following Clause:—

 

‘(1)    

It shall be the duty of HMRC to prepare and lay before the House of Commons

 

an annual report on their performance in handling applications for—

 

(a)    

registration for VAT, and

 

(b)    

repayment by HMRC of VAT,

 

    

including their performance in meeting any targets currently in force.

 

(2)    

A report under subsection (1) shall include details of the average time taken by

 

HMRC to process applications under subsection (1)(a) and (b), and of any

 

measures introduced by HMRC to reduce the average time, and to improve their

 

performance in meeting any such targets.’.

 



 
 

Notices of Amendments: 20th June 2007                  

1384

 

Finance Bill, continued

 
 

Duty on HMRC to expedite VAT registration and repayment applications

 

Mr David Cameron

 

Mr George Osborne

 

Mrs Theresa Villiers

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Mr David Gauke

 

nc4

 

To move the following Clause:—

 

‘(1)    

It shall be the duty of HMRC to determine applications for—

 

(a)    

registration for VAT, and

 

(b)    

repayment of VAT by HMRC

 

    

within a maximum period of days from the receipt by them of the relevant

 

application.

 

(2)    

The Treasury must by Order specify the maximum period mentioned in

 

subsection (1), having first consulted HMRC and persons representing small

 

businesses.

 

(3)    

If an application of a kind mentioned in subsection (1) has not been determined

 

by HMRC before expiry of the maximum period specified by the Treasury in

 

accordance with subsection (2), the applicant may apply to the Special

 

Commissioners for a declaration that the application is deemed to have been

 

approved by HMRC.

 

(4)    

The Special Commissioner must grant an application for a declaration under

 

subsection (3) unless they are satisfied that HMRC has reasonable grounds for

 

having failed to determine an application in accordance with subsections (1) and

 

(2).

 

(5)    

Grounds shall be treated as reasonable under subsection (4) only if they relate to

 

circumstances beyond HMRC’s control.’.

 


 

Restriction on expenses of management

 

Mr Chancellor of the Exchequer

 

NC5

 

Parliamentary Star    

To move the following Clause:—

 

‘(1)    

Section 75 of ICTA (expenses of management: companies with investment

 

business) is amended as follows.

 

(2)    

After subsection (2) insert—

 

“(2A)    

A deduction is not to be allowed under that subsection for any particular

 

expenses of management if any part of those expenses is incurred directly

 

or indirectly in consequence of, or otherwise in connection with, any

 

arrangements the main purpose, or one of the main purposes, of which is

 

to secure the allowance of a deduction (or increased deduction) under that

 

subsection or any other tax advantage.

 

(2B)    

Subsection (2A) above does not apply if, as a result of paragraph 7A of

 

Schedule 23A (manufactured payments under arrangements having an

 

unallowable purpose), the company incurring the expenses is not entitled


 
 

Notices of Amendments: 20th June 2007                  

1385

 

Finance Bill, continued

 
 

to a relevant tax relief (within the meaning of that paragraph) in respect

 

of, or referable to, the whole or any part of the expenses.

 

(2C)    

The reference in subsection (2A) above to expenses of management

 

includes amounts treated by any provision as deductible under this

 

section.”

 

(3)    

After subsection (5) insert—

 

“(5A)    

For the purposes of subsection (5)(a) above investments are not held for

 

a business or other commercial purpose if they are held directly or

 

indirectly in consequence of, or otherwise in connection with, any

 

arrangements the main purpose, or one of the main purposes, of which is

 

to secure the allowance of a deduction (or increased deduction) under

 

subsection (1) above or any other tax advantage.”

 

(4)    

After subsection (10) insert—

 

“(11)    

In this section—

 

“arrangements” includes any agreement, understanding, scheme,

 

transaction or series of transactions (whether or not legally enforceable),

 

and

 

“tax advantage” has the meaning given by section 840ZA.”

 

(5)    

The amendments made by this section have effect in relation to accounting

 

periods beginning on or after 20th June 2007, but have no effect in any case where

 

the particular management expenses in question were paid before that date.

 

(6)    

In the case of an accounting period of a company beginning before, and ending

 

on or after, that date, those amendments have effect as if, for determining the

 

amounts that are deductible for the period under section 75(1) of ICTA, so much

 

of the period as falls before that date, and the rest of it, were separate accounting

 

periods.’.

 


 

Prohibition on use of revenue for nuclear research

 

Jeremy Corbyn

 

Alan Simpson

 

John McDonnell

 

NC6

 

Parliamentary Star    

To move the following Clause:—

 

‘That none of the monies raised as a result of the financial provisions enacted in

 

this Act shall be used for the furtherance of research or development of nuclear

 

submarine platforms for the carriage, or launch, of nuclear-armed ballistic

 

missiles; for the development of ballistic missiles capable of carrying nuclear

 

warheads; for the development of new-design nuclear warheads; or for connected

 

purposes.’.

 



 
 

Notices of Amendments: 20th June 2007                  

1386

 

Finance Bill, continued

 
 

Limitation on use of restrospective taxation legislation

 

Mr Christopher Chope

 

Mr Greg Knight

 

Mr Edward Leigh

 

Sir Nicholas Winterton

 

NC7

 

Parliamentary Star    

To move the following Clause:—

 

‘(1)    

It is the duty of a Minister of the Crown to refrain from bringing restrospective

 

taxation legislation before Parliament unless one of the conditions mentioned in

 

subsection (2) is satisfied.

 

(2)    

The conditions mentioned in subsection (1) are—

 

(i)    

that it appears, whether as a result of a judgement given by a court or

 

otherwise, that some part of the law relating to taxation no longer

 

conforms to the reasonable expectations about its effect previously held

 

by taxation practitioners and that it is necessary to restore the position

 

retrospectively in order to protect the interests of the general body of

 

taxpayers;

 

(ii)    

the HMRC becomes aware of a new tax avoidance scheme and it is

 

necessary, in order to prevent a significant loss of tax revenue, to amend

 

the law restrospectively.

 

(3)    

In subsection (2) “taxation practitioners” includes the Treasury, HMRC, the

 

accountancy profession, professional tax advisers and groups representing the

 

interests of taxpayers; and “tax avoidance scheme” has the meaning given in the

 

Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) Regulations

 

2004 or the Tax Avoidance Schemes (Prescribed Descriptions of Arrangements)

 

Regulations 2006.

 

(4)    

In this section “restrospective taxation legislation” means legislation which—

 

(i)    

introduces any new tax, impost or duty, or increases the rate or extends

 

the incidence of any existing tax, levy, impost, or duty; and

 

(ii)    

takes effect on a date earlier than the date on which the relevant

 

enactment enters into force.

 

(5)    

For the purposes of subsection (4) it is immaterial whether a Minister gives

 

notice, whether in Parliament or otherwise, of his intention to introduce a

 

restrospective taxation provision which takes effect on a date after the giving of

 

this notice.

 

(6)    

In subsection (4)(i) “extends the incidence of any existing tax, levy, impost or

 

duty” includes the removal or attenuation of any relevant relief or drawback.

 

(7)    

In subsection (4)(ii) “takes effect” includes the creation of a liability or obligation

 

to account for any increased charge to tax resulting from a provision of the kind

 

mentioned in subsection (4)(i), whether or not the date on which the increased

 

charge falls due for payment precedes the date on which the relevant enactment

 

is expressed to enter into force; and in this subsection “account for” includes any

 

decision by a company or business undertaking to absorb or pass on in the form

 

of higher customer prices or charges the additional costs to that company or

 

business undertaking arising from the increased charge to tax.

 

(8)    

A taxation provision introduced under the Provisional Collection of Taxes Act

 

1968 is not to be treated as having restrospective effect for the purposes of this

 

section unless the date on which the relevant resolution of the House of Commons

 

under either section 1 or section 5 of that Act is expressed to take effect is a date


 
 

Notices of Amendments: 20th June 2007                  

1387

 

Finance Bill, continued

 
 

earlier than the date on which the resolution under section 1 or, as the case may

 

be, section 5 is passed.’.

 


 

Rural Fuel Discount Scheme

 

Danny Alexander

 

Mr Charles Kennedy

 

Mr Alistair Carmichael

 

Mr Alan Reid

 

Jo Swinson

 

Mr David Gauke

 

Total signatories: 7

 

Sir Robert Smith

 

NC8

 

Parliamentary Star    

To move the following Clause:—

 

‘(1)    

The Treasury shall by regulations provide for the introduction, by no later than

 

1st May 2008, of a Rural Fuel Discount Scheme.

 

(2)    

The purpose of the Scheme is to provide a rebate on road fuel duty to qualifying

 

persons at qualifying retail outlets.

 

(3)    

Qualifying persons under subsection (2) are persons residing in remote rural areas

 

and qualifying retail outlets are outlets located in remote rural areas.

 

(4)    

Regulations under subsection (1) may—

 

(a)    

specify the amount of the fuel duty rebate;

 

(b)    

define “remote rural areas” in such a way that the combined total of the

 

qualifying remote rural areas does not contain more than three per cent.

 

of the total population of the United Kingdom;

 

(c)    

specify how the rebate is to be applied, including—

 

(i)    

how a person’s eligibility for a rebate is to be verified at the point

 

of purchase of road fuel, and

 

(ii)    

how any administrative costs are to be defrayed;

 

(d)    

provide for it to be an offence for a person fraudulently to claim a rebate

 

to which he is not entitled;

 

(e)    

provide for a system of registration of eligible vehicles.’.

 



 
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