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1411

House of Commons

Notices of Amendments

given up to and including

Thursday 21st June 2007

New Amendments handed in are marked thus

Consideration of Bill

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

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Committee

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New Clauses

Restriction on expenses of management

Mr Chancellor of the Exchequer

NC5

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

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

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Notices of Amendments: 21st June 2007

1412

Finance Bill, continued

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.’.

Updating references to standing committees

Mr Chancellor of the Exchequer

NC13

To move the following Clause:—

‘(1)	In section 1(4)(b) of the Provisional Collection of Taxes Act 1968 (c. 2)

(circumstances in which a resolution affecting income tax etc ceases to have

effect), for “Standing Committee” substitute “Public Bill Committee”.

(2)	In section 50(2)(a) of FA 1973 (corresponding provision for stamp duty), for

“Standing Committee” substitute “Public Bill Committee”.’.

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.

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Notices of Amendments: 21st June 2007

1413

Finance Bill, continued

(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:—

‘(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;

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Notices of Amendments: 21st June 2007

1414

Finance Bill, continued

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):—

Mr Christopher Chope

Mr Greg Knight

Mr Edward Leigh

Sir Nicholas Winterton

(a)

Line  2,  leave out ‘(a)’.

Mr Christopher Chope

Mr Greg Knight

Mr Edward Leigh

Sir Nicholas Winterton

(b)

Line  3,  leave out ‘either of’.

Mr Christopher Chope

Mr Greg Knight

Mr Edward Leigh

Sir Nicholas Winterton

(c)

Line  4,  leave out from ‘compatibility’ to end of line 7.

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:—

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Notices of Amendments: 21st June 2007

1415

Finance Bill, continued

‘(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), together with a

description of any measures introduced by HMRC to reduce the average time, and

to improve their performance in meeting any such targets.’.

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 the 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 Commissioners 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.’.

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Notices of Amendments: 21st June 2007

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Finance Bill, continued

Prohibition on use of tax revenue for nuclear research

Jeremy Corbyn

Alan Simpson

John McDonnell

NC6

To move the following Clause:—

‘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.’.

Limitation on use of restrospective taxation legislation

Mr Christopher Chope

Mr Greg Knight

Mr Edward Leigh

Sir Nicholas Winterton

NC7

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)	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 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

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Notices of Amendments: 21st June 2007

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Finance Bill, continued

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

that 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

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

Sir Robert Smith

Total signatories: 7

John Thurso

NC8

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;

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Revised 22 June 2007