House of Commons Public Bill Committee Proceedings

House of Commons

Session 2007 - 08
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Other Bills before Parliament

Report Stage Proceedings: 31st March 2008
335

Housing and Regeneration Bill, continued

‘(5A)
Any regulations which provide for the appropriate person to approve a proposal

for a local housing authority to dispose of land must ensure that the authority has

the opportunity to make representations to the appropriate person before the

appropriate person decides whether or not to approve the proposal.’.

Secretary Hazel Blears

Agreed to  32

Page  120,  line  36,  leave out Clause 286.

Secretary Hazel Blears

Agreed to  33

Page  121,  line  6  [Clause  287],  after ‘3’, insert ‘or 3A’.

Secretary Hazel Blears

Agreed to  34

Page  121,  line  8  [Clause  287],  leave out ‘sub-paragraph (2) of that paragraph’ and

insert ‘sub-paragraph (1A);

(aa)
any provision in the lease for the tenant to acquire the landlord’s interest

provides for the tenant to acquire the interest on terms specified in the

lease and complying with such requirements as may be prescribed;

(ab)
the lease meets any other prescribed conditions;

(ac)
the lease does not fall within any prescribed exemptions’.

Secretary Hazel Blears

Agreed to  35

Page  121,  line  10  [Clause  287],  at end insert—

  ‘(1A)
The conditions referred to in sub-paragraph (1)(a) are that the lease—

(a)
was granted for a term of 99 years or more and is not (and cannot

become) terminable except in pursuance of a provision for re-entry or

forfeiture;

(b)
was granted at a premium, calculated by reference to the value of the

house or the cost of providing it, of not less than 25 per cent, or such

other percentage as may be prescribed, of the figure by reference to

which it was calculated;

(c)
provides for the tenant to acquire additional shares in the house on

terms specified in the lease and complying with such requirements as

may be prescribed;

(d)
does not restrict the tenant’s powers to mortgage or charge his interest

in the house;

(e)
if it enables the landlord to require payment for outstanding shares in

the house, does so only in such circumstances as may be prescribed;

and

(f)
states the landlord’s opinion that by virtue of this paragraph the lease

is excluded from the operation of this Part of this Act.’.

Report Stage Proceedings: 31st March 2008
336

Housing and Regeneration Bill, continued

Secretary Hazel Blears

Agreed to  36

Page  121,  line  24  [Clause  287],  leave out ‘paragraph 3(2)’ and insert ‘sub-

paragraph (1A)’.

Secretary Hazel Blears

Agreed to  37

Page  121,  line  25  [Clause  287],  leave out ‘paragraph 3(2)(g)’ and insert ‘paragraph

(f) of that sub-paragraph’.

Secretary Hazel Blears

Agreed to  38

Page  121  [Clause  287],  leave out lines 30 to 32.

Secretary Hazel Blears

Agreed to  39

Page  121,  line  41  [Clause  287],  at end insert—

‘(2)
In paragraph 5 of that Schedule to that Act (power to prescribe matters by

regulations)—

(a)
in sub-paragraph (1) for “Secretary of State” substitute “appropriate

national authority”, and

(b)
in sub-paragraph (2)—

(i)
in paragraph (b) for “Secretary of State” substitute “appropriate

national authority”,

(ii)
after “which” insert “, in the case of regulations made by the

Secretary of State,” and

(iii)
after “Parliament” insert “and, in the case of regulations made by

the Welsh Ministers, shall be subject to annulment in pursuance

of a resolution of the National Assembly for Wales”.

(3)
After paragraph 6 of that Schedule to that Act (interpretation) insert—

“7
In this Schedule “appropriate national authority” means—

(a)
in relation to England, the Secretary of State; and

(b)
in relation to Wales, the Welsh Ministers.”’.

Secretary Hazel Blears

Agreed to  40

Page  122,  line  25  [Clause  290],  at end insert—

‘(2A)
A request under subsection (2)(b) must—

(a)
be in writing;

(b)
state the reason it is being made; and

(c)
confirm that the landlord has not made to the tenant a grant of the kind

mentioned in section 138(1) in respect of the claim by the tenant to

exercise the right to buy in respect of the dwelling-house.’.

Secretary Hazel Blears

Agreed to  41

Page  122,  line  26  [Clause  290],  leave out ‘such a request’ and insert ‘a request

under subsection (2)(b)’.

Report Stage Proceedings: 31st March 2008
337

Housing and Regeneration Bill, continued

Lembit Öpik

Andrew George

Simon Hughes

Not called  14

Page  122,  line  38  [Clause  290],  after ‘the’, insert ‘earlier of—

(a)
the’.

Secretary Hazel Blears

Agreed to  42

Page  122,  line  38  [Clause  290],  at end insert—

‘(5A)
A review notice may not be served if the landlord has made a grant of the kind

mentioned in subsection (2A)(c).

(5B)
A person who makes a request under subsection (2)(b) must inform the district

valuer if a grant of the kind mentioned in subsection (2A)(c) is made during the

period of 14 days mentioned in subsection (4).

(5C)
Subsection (5D) applies if the district valuer is considering whether to serve a

review notice on the valuer’s own initiative.

(5D)
The landlord or the tenant must, if requested by the district valuer, inform the

valuer whether a grant of the kind mentioned in subsection (2A)(c) has been

made.’.

Lembit Öpik

Andrew George

Simon Hughes

Not called  15

Page  122,  line  38  [Clause  290],  at end insert ‘; or

(b)
the completion of the sale’.

Secretary Hazel Blears

Agreed to  43

Page  124,  line  14  [Clause  290],  at end insert—

‘(3A)
After section 128(5) (notice of determination or redetermination) insert—

“(5A)
The landlord shall, as soon as practicable, serve a copy of the notice on

the district valuer if—

(a)
the district valuer requests it; or

(b)
the landlord requests a review of the determination or

redetermination under section 128A(2)(b).

(5B)
The tenant shall, as soon as practicable, serve a copy of the notice on the

district valuer if the tenant requests a review of the determination or

redetermination under section 128A(2)(b).

(5C)
For the purposes of subsections (5A) and (5B) it does not matter whether

the request in question was made before, on or after the service of the

notice in accordance with subsection (5).’.

Report Stage Proceedings: 31st March 2008
338

Housing and Regeneration Bill, continued

Secretary Hazel Blears

Agreed to  44

Page  131,  line  37  [Clause  303],  at end insert—

‘( )
an order of the Secretary of State under paragraph 19(4) or 21(2) or (4)

of Schedule (Possession orders relating to certain tenancies),’.

Secretary Hazel Blears

Agreed to  45

Page  132,  line  5  [Clause  303],  at end insert—

‘( )
an order of the Secretary of State under paragraph 16(7), 18(4), 22(2) or

23(2) of Schedule (Possession orders relating to certain tenancies),’.

Secretary Hazel Blears

Agreed to  46

Page  132,  line  13  [Clause  303],  leave out from ‘containing’ to ‘may’ in line 14 and

insert ‘—

( )
an order of the Welsh Ministers under section 304,

( )
an order of the Welsh Ministers under paragraph 19(4) or 21(2) or (4) of

Schedule (Possession orders relating to certain tenancies), or

( )
regulations of the Welsh Ministers under section 266(3) or 277,’.

Secretary Hazel Blears

Agreed to  47

Page  132,  line  17  [Clause  303],  leave out from ‘containing’ to ‘is’ in line 19 and

insert ‘—

(a)
an order of the Welsh Ministers under paragraph 16(7), 18(4), 22(2) or

23(2) of Schedule (Possession orders relating to certain tenancies),

(b)
regulations of the Welsh Ministers under Chapter 1 of Part 3 (including

Schedule 8 but excluding section 266(3) or 277), or

(c)
regulations of the Welsh Ministers under section 284,’.

Secretary Hazel Blears

Agreed to  48

Page  133,  line  31  [Clause  308],  leave out ‘287’ and insert ‘(Service charges:

provision of information and designated accounts)’.

Secretary Hazel Blears

Agreed to  49

Page  133,  line  31  [Clause  308],  after ‘301’, insert ‘and Schedule (Service charges:

provision of information and designated accounts)’.

Report Stage Proceedings: 31st March 2008
339

Housing and Regeneration Bill, continued

Secretary Hazel Blears

Agreed to  50

Page  134,  line  5  [Clause  308],  after ‘Schedule 5’, insert ‘or section (Possession

orders relating to certain tenancies) and Schedule (Possession orders relating to certain

tenancies)’.

new schedules

Secretary Hazel Blears

Added  NS1

To move the following Schedule:—

‘Transfer Schemes: Tax

Overview

1
This Schedule makes provision about the fiscal effect of transfers under

schemes made under sections 53 and 67.

Key concepts

2    (1)
In this Schedule—

(a)
“transfer scheme” means a scheme under section 53 or 67, and

(b)
“transfer” means a transfer under a transfer scheme.

      (2)
In this Schedule “transfer between bodies” means a transfer—

(a)
from the Urban Regeneration Agency, the Commission for the New

Towns or the Housing Corporation, and

(b)
to the HCA or the Regulator of Social Housing.

      (3)
In this Schedule “transfer to government” means a transfer to—

(a)
a Minister of the Crown, or

(b)
the Welsh Ministers.

Other definitions

3    (1)
In this Schedule—

(a)
ICTA means the Income and Corporation Taxes Act 1988 (c. 1),

(b)
TCGA means the Taxation of Chargeable Gains Act 1992 (c. 12),

(c)
FA 1996 means the Finance Act 1996 (c. 8),

(d)
FA 2002 means the Finance Act 2002 (c. 23), and

(e)
HMRC means the Commissioners for Her Majesty’s Revenue and

Customs.

      (2)
In this Schedule a reference to a trade includes a reference to part of a trade.

Corporation tax: continuity of trade

4    (1)
This paragraph applies if as the result of a transfer scheme—

(a)
a transferor ceases a trade, and

(b)
a transferee commences it.

Report Stage Proceedings: 31st March 2008
340

Housing and Regeneration Bill, continued

      (2)
In connection with the computation of profits and losses for the purpose of

corporation tax in respect of periods wholly or partly after the commencement

of the transfer scheme—

(a)
the transferee shall be treated as having always carried on the trade,

and

(b)
the trade shall be considered separately from any other trade of the

transferee (with any necessary apportionment being made).

Corporation tax: capital allowances

5    (1)
This paragraph applies in respect of property transferred under a transfer

scheme from—

(a)
the Urban Regeneration Agency, or

(b)
the Commission for the New Towns.

      (2)
Where the property was used by the transferor, and is to be used by the

transferee, in connection with a trade, section 343(2) of ICTA (company

reconstructions: capital allowances) shall apply.

6
The following transfers shall be treated as giving rise to neither allowance nor

charge for the purposes of capital allowances in respect of a trade (and

allowances shall be calculated as if the transferee had always carried on the

trade)—

(a)
a transfer from the Housing Corporation, and

(b)
a transfer to government.

Corporation tax: capital gains

7    (1)
This paragraph applies in respect of property transferred under a transfer

scheme from—

(a)
the Urban Regeneration Agency,

(b)
the Commission for the New Towns, or

(c)
the Housing Corporation.

      (2)
Section 17 of TCGA (disposals and acquisitions treated as at market value)

shall not apply.

      (3)
For the purposes of TCGA the transfer (in relation to the transferor and the

transferee) is to be taken as being a disposal for a consideration such that

neither gain nor loss accrues.

8
A transfer shall be disregarded for the purposes of section 30 of TCGA (value-

shifting: tax-free benefits).

9
At the end of section 35(3)(d) of TCGA (re-basing to 1982) add—

“(xviii)
Schedule [Transfer schemes: tax] to the Housing and

Regeneration Act 2008.”

Corporation tax: intangible assets

10  (1)
This paragraph applies for the purposes of Schedule 29 to FA 2002 (intangible

assets).

      (2)
Expressions used in this paragraph have the same meaning as in that Schedule.

      (3)
A transfer between bodies of a chargeable intangible asset is a tax-neutral

transfer.

      (4)
An intangible fixed asset which is an existing asset of the transferor at the time

of a transfer between bodies is to be treated, on and after the transfer, as an

existing asset of the transferee.

Report Stage Proceedings: 31st March 2008
341

Housing and Regeneration Bill, continued

      (5)
A transfer to government of a chargeable intangible asset is to be treated as not

involving a realisation of the asset by the transferor.

Corporation tax: loan relationships

11  (1)
If as a result of a transfer the transferee replaces the transferor as a party to a

loan relationship, paragraph 12(2) of Schedule 9 to FA 1996 (transfer within

group: continuity of treatment) shall apply (whether or not the transferor and

transferee are bodies corporate).

      (2)
Expressions used in this paragraph have the same meaning as in that Schedule.

Stamp duty

12  (1)
Stamp duty shall not be chargeable on a transfer scheme.

      (2)
Stamp duty shall not be chargeable on a document certified by HMRC as

connected with a transfer scheme.

      (3)
A document which is not chargeable by virtue of this paragraph must be

stamped in accordance with section 12 of the Stamp Act 1891 (c. 39) with a

stamp denoting that it is not chargeable.’.

Secretary Hazel Blears

Added  NS2

To move the following Schedule:—

‘Possession orders relating to certain tenancies

Part 1

Amendments to the Housing Acts of 1985, 1988 and 1996

Housing Act 1985 (c. 68)

1
The Housing Act 1985 is amended as follows.

2    (1)
Section 82 (security of tenure: date on which secure tenancy comes to an end

as a result of a possession order etc.) is amended as follows.

      (2)
In subsection (1) for “by obtaining an order” substitute “as”.

      (3)
For subsections (1A) and (2) substitute—

“(1A)
The tenancy may be brought to an end by the landlord—

(a)
obtaining—

(i)
an order of the court for the possession of the

dwelling-house, and

(ii)
the execution of the order,

(b)
obtaining an order under subsection (3), or

(c)
obtaining a demotion order under section 82A.

(2)
In the case mentioned in subsection (1A)(a), the tenancy ends when

the order is executed.”

3    (1)
Section 85 (extended discretion of court in certain proceedings for possession)

is amended as follows.

      (2)
In subsection (3)(a) omit the words from “or payments” to “profits),”.