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| given up to and including |
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| New Amendments handed in are marked thus  |
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| Finance Bill, as amended in the Committee and the Public Bill
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| | Restriction on expenses of management |
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| Mr Chancellor of the Exchequer |
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| To move the following Clause:— |
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| | ‘(1) | Section 75 of ICTA (expenses of management: companies with investment |
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| | business) is amended as follows. |
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| | (2) | After subsection (2) insert— |
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| | “(2A) | A deduction is not to be allowed under that subsection for any particular |
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| | expenses of management if any part of those expenses is incurred directly |
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| | or indirectly in consequence of, or otherwise in connection with, any |
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| | arrangements the main purpose, or one of the main purposes, of which is |
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| | to secure the allowance of a deduction (or increased deduction) under that |
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| | subsection or any other tax advantage. |
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| | (2B) | Subsection (2A) above does not apply if, as a result of paragraph 7A of |
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| | Schedule 23A (manufactured payments under arrangements having an |
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| | unallowable purpose), the company incurring the expenses is not entitled |
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| | to a relevant tax relief (within the meaning of that paragraph) in respect |
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| | of, or referable to, the whole or any part of the expenses. |
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| | (2C) | The reference in subsection (2A) above to expenses of management |
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| | includes amounts treated by any provision as deductible under this |
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| | (3) | After subsection (5) insert— |
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| | “(5A) | For the purposes of subsection (5)(a) above investments are not held for |
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| | a business or other commercial purpose if they are held directly or |
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| | indirectly in consequence of, or otherwise in connection with, any |
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| | arrangements the main purpose, or one of the main purposes, of which is |
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| | to secure the allowance of a deduction (or increased deduction) under |
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| | subsection (1) above or any other tax advantage.” |
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| | (4) | After subsection (10) insert— |
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| | “arrangements” includes any agreement, understanding, scheme, |
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| | transaction or series of transactions (whether or not legally enforceable), |
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| | “tax advantage” has the meaning given by section 840ZA.” |
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| | (5) | The amendments made by this section have effect in relation to accounting |
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| | periods beginning on or after 20th June 2007, but have no effect in any case where |
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| | the particular management expenses in question were paid before that date. |
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| | (6) | In the case of an accounting period of a company beginning before, and ending |
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| | on or after, that date, those amendments have effect as if, for determining the |
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| | amounts that are deductible for the period under section 75(1) of ICTA, so much |
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| | of the period as falls before that date, and the rest of it, were separate accounting |
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| | Updating references to standing committees |
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| Mr Chancellor of the Exchequer |
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| To move the following Clause:— |
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| | ‘(1) | In section 1(4)(b) of the Provisional Collection of Taxes Act 1968 (c. 2) |
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| | (circumstances in which a resolution affecting income tax etc ceases to have |
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| | effect), for “Standing Committee” substitute “Public Bill Committee”. |
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| | (2) | In section 50(2)(a) of FA 1973 (corresponding provision for stamp duty), for |
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| | “Standing Committee” substitute “Public Bill Committee”.’. |
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| | Amendment of Provisional Collection of Taxes Act 1968 |
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| To move the following Clause:— |
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| | ‘(1) | The Provisional Collection of Taxes Act 1968 (c. 2) is amended as follows. |
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| | (2) | In subsection (4)(b), for the words “Standing Committee” there are substituted |
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| | the words “Public Bill Committee”.’. |
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| | Principles of good practice for retrospective taxation legislation |
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| To move the following Clause:— |
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| | ‘(1) | A Minister in charge of a Bill must, before Second Reading of the Bill— |
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| | (a) | make a statement to the effect that, in his view, any retrospective taxation |
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| | provisions of the Bill are compatible with either of the relevant principles |
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| | of good practice (“a statement of compatibility”); or |
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5 | | (b) | make a statement to the effect that, although he is unable to make a |
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| | statement of compatibility, the government nonetheless wishes the |
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| | House to proceed with the Bill. |
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| | (2) | A statement under subsection (1) must be in writing and be published in such a |
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| | manner as the Minister making it considers appropriate. |
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10 | | (3) | In this section, “retrospective taxation provisions” means provisions which— |
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| | (i) | introduce any new tax, levy, impost or duty, or increase the rate or extend |
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| | the incidence of any existing tax, levy, impost or duty; and |
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| | (ii) | take effect on a date earlier than the date on which the relevant enactment |
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15 | | (4) | For the purpose of subsection (3) it is immaterial whether a Minister gives notice, |
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| | whether in Parliament or otherwise, of his intention to introduce a retrospective |
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| | taxation provision which takes effect on a date after the giving of that notice. |
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| | (5) | In subsection (3)(i) “extend the incidence of any existing tax, levy, impost or |
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| | duty” includes the removal or attenuation of any relevant relief or drawback. |
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20 | | (6) | In subsection (3)(ii) “take effect” includes the creation of a liability or obligation |
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| | to account for any increased charge to tax resulting from a provision of the kind |
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| | mentioned in subsection (3)(i), whether or not the date on which the increased |
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| | charge falls due for payment precedes the date on which the relevant enactment |
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| | is expressed to enter into force; and in this subsection “account for” includes any |
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25 | | decision by a company or business undertaking to absorb or pass on in the form |
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| | of higher customer prices or charges the additional costs to that company or |
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| | business undertaking arising from the increased charge to tax. |
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| | (7) | “The relevant principles of good practice” mentioned in subsection (1) are— |
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| | (i) | that it appears, whether as a result of a judgment given by a court or |
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30 | | otherwise, that some part of the law relating to taxation no longer |
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| | conforms to the reasonable expectations about its effect previously held |
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| | by taxation practitioners and that it is necessary to restore the position |
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| | retrospectively in order to protect the interests of the general body of |
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35 | | (ii) | that HMRC becomes aware of a new tax avoidance scheme and it is |
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| | necessary, in order to prevent a significant loss of tax revenue, to amend |
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| | (8) | In subsection (7) “taxation practitioners” includes the Treasury, HMRC, the |
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| | accountancy profession, professional tax advisers and groups representing the |
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40 | | interests of taxpayers; and “tax avoidance scheme” has the meaning given in the |
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| | Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) Regulations |
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| | 2004 or the Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) |
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| | (9) | A taxation provision introduced under the Provisional Collection of Taxes Act |
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45 | | 1968 is not to be treated as having retrospective effect for the purposes of this |
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| | section unless the date on which the relevant resolution of the House of Commons |
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| | under either section 1 or section 5 of that Act is expressed to take effect is a date |
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| | earlier than the date on which the resolution under section 1 or, as the case may |
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| | As Amendments to Mr David Cameron’s proposed New Clause (Principles of good |
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| | practice for retrospective taxation legislation) (NC2):— |
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| Line 3, leave out ‘either of’. |
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| Line 4, leave out from ‘compatibility’ to end of line 7. |
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| | Report on HMRC’s performance in handling VAT applications |
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| To move the following Clause:— |
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| | ‘(1) | It shall be the duty of HMRC to prepare and lay before the House of Commons |
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| | an annual report on their performance in handling applications for— |
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| | (a) | registration for VAT, and |
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| | (b) | repayment by HMRC of VAT, |
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| | | including their performance in meeting any targets currently in force. |
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| | (2) | A report under subsection (1) shall include details of the average time taken by |
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| | HMRC to process applications under subsection (1)(a) and (b), together with a |
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| | description of any measures introduced by HMRC to reduce the average time, and |
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| | to improve their performance in meeting any such targets.’. |
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| | Duty on HMRC to expedite VAT registration and repayment applications |
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| To move the following Clause:— |
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| | ‘(1) | It shall be the duty of HMRC to determine applications for— |
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| | (a) | registration for VAT, and |
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| | (b) | repayment of VAT by HMRC |
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| | | within a maximum period of days from the receipt by them of the relevant |
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| | (2) | The Treasury must by Order specify the maximum period mentioned in |
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| | subsection (1), having first consulted HMRC and persons representing small |
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| | (3) | If an application of a kind mentioned in subsection (1) has not been determined |
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| | by HMRC before the expiry of the maximum period specified by the Treasury in |
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| | accordance with subsection (2), the applicant may apply to the Special |
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| | Commissioners for a declaration that the application is deemed to have been |
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| | (4) | The Special Commissioners must grant an application for a declaration under |
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| | subsection (3) unless they are satisfied that HMRC has reasonable grounds for |
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| | having failed to determine an application in accordance with subsections (1) and |
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| | (5) | Grounds shall be treated as reasonable under subsection (4) only if they relate to |
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| | circumstances beyond HMRC’s control.’. |
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| | Prohibition on use of tax revenue for nuclear research |
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| To move the following Clause:— |
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| | ‘None of the monies raised as a result of the financial provisions enacted in this |
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| | Act shall be used for the furtherance of research or development of nuclear |
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| | submarine platforms for the carriage, or launch, of nuclear-armed ballistic |
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| | missiles; for the development of ballistic missiles capable of carrying nuclear |
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| | warheads; for the development of new-design nuclear warheads; or for connected |
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| | Limitation on use of restrospective taxation legislation |
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| To move the following Clause:— |
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| | ‘(1) | It is the duty of a Minister of the Crown to refrain from bringing restrospective |
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| | taxation legislation before Parliament unless one of the conditions mentioned in |
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| | subsection (2) is satisfied. |
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| | (2) | The conditions mentioned in subsection (1) are— |
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| | (i) | that it appears, whether as a result of a judgement given by a court or |
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| | otherwise, that some part of the law relating to taxation no longer |
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| | conforms to the reasonable expectations about its effect previously held |
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| | by taxation practitioners and that it is necessary to restore the position |
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| | retrospectively in order to protect the interests of the general body of |
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| | (ii) | that HMRC becomes aware of a new tax avoidance scheme and it is |
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| | necessary, in order to prevent a significant loss of tax revenue, to amend |
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| | the law restrospectively. |
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| | (3) | In subsection (2) “taxation practitioners” includes the Treasury, HMRC, the |
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| | accountancy profession, professional tax advisers and groups representing the |
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| | interests of taxpayers; and “tax avoidance scheme” has the meaning given in the |
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| | Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) Regulations |
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| | 2004 or the Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) |
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| | (4) | In this section “restrospective taxation legislation” means legislation which— |
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| | (i) | introduces any new tax, impost or duty, or increases the rate or extends |
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| | the incidence of any existing tax, levy, impost, or duty; and |
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| | (ii) | takes effect on a date earlier than the date on which the relevant |
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| | enactment enters into force. |
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| | (5) | For the purposes of subsection (4) it is immaterial whether a Minister gives |
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| | notice, whether in Parliament or otherwise, of his intention to introduce a |
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| | restrospective taxation provision which takes effect on a date after the giving of |
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| | (6) | In subsection (4)(i) “extends the incidence of any existing tax, levy, impost or |
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| | duty” includes the removal or attenuation of any relevant relief or drawback. |
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| | (7) | In subsection (4)(ii) “takes effect” includes the creation of a liability or obligation |
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| | to account for any increased charge to tax resulting from a provision of the kind |
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| | mentioned in subsection (4)(i), whether or not the date on which the increased |
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| | charge falls due for payment precedes the date on which the relevant enactment |
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| | is expressed to enter into force; and in this subsection “account for” includes any |
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| | decision by a company or business undertaking to absorb or pass on in the form |
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| | of higher customer prices or charges the additional costs to that company or |
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| | business undertaking arising from the increased charge to tax. |
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| | (8) | A taxation provision introduced under the Provisional Collection of Taxes Act |
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| | 1968 is not to be treated as having restrospective effect for the purposes of this |
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| | section unless the date on which the relevant resolution of the House of Commons |
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| | under either section 1 or section 5 of that Act is expressed to take effect is a date |
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| | earlier than the date on which the resolution under section 1 or, as the case may |
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| | be, section 5 is passed.’. |
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| | Rural Fuel Discount Scheme |
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| To move the following Clause:— |
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| | ‘(1) | The Treasury shall by regulations provide for the introduction, by no later than |
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| | 1st May 2008, of a Rural Fuel Discount Scheme. |
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| | (2) | The purpose of the Scheme is to provide a rebate on road fuel duty to qualifying |
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| | persons at qualifying retail outlets. |
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| | (3) | Qualifying persons under subsection (2) are persons residing in remote rural areas |
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| | and qualifying retail outlets are outlets located in remote rural areas. |
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| | (4) | Regulations under subsection (1) may— |
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| | (a) | specify the amount of the fuel duty rebate; |
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| | (b) | define “remote rural areas” in such a way that the combined total of the |
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| | qualifying remote rural areas does not contain more than three per cent. |
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| | of the total population of the United Kingdom; |
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| | (c) | specify how the rebate is to be applied, including— |
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| | (i) | how a person’s eligibility for a rebate is to be verified at the point |
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| | of purchase of road fuel, and |
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| | (ii) | how any administrative costs are to be defrayed; |
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| | (d) | provide for it to be an offence for a person fraudulently to claim a rebate |
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| | to which he is not entitled; |
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