121

House of Commons

Tuesday 20th May 2008

Public Bill Committee

New Amendments handed in are marked thus

Other Amendments not tabled within the required notice period are marked thus

Finance Bill

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(Except Clauses 3, 5, 6, 15, 21, 49, 90 and 117

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and new Clauses amending section 74 of the Finance Act 2003)

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Note

The Amendments have been arranged in accordance with the Order of the

Committee [6th May].

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

82

Schedule  11,  page  212,  leave out line 28.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

83

Schedule  11,  page  212,  leave out line 32.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

84

Schedule  11,  page  213,  leave out lines 1 to 5.

Public Bill Committee: 20th May 2008

122

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

85

Schedule  11,  page  213,  leave out line 16.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

86

Schedule  11,  page  213,  leave out line 20.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

87

Schedule  11,  page  213,  leave out lines 27 to 31.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

88

Schedule  11,  page  214,  leave out line 4.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

89

Schedule  11,  page  214,  leave out line 8.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

90

Schedule  11,  page  214,  leave out lines 15 to 19.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

93

Clause  30,  page  14,  line  16,  leave out subsections (2) and (3).

Public Bill Committee: 20th May 2008

123

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

94

Clause  30,  page  15,  leave out line 6.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

95

Clause  30,  page  15,  leave out lines 13 to 17.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

96

Clause  30,  page  15,  line  21,  at end insert—

‘(5A)

The amendments made by subsections (2) and (3) of this section shall not come

into force until the Treasury has laid before the House of Commons a report

which sets out how companies deemed to be in a group because they are owned

by a private equity and venture capital firms can become qualifying companies

under paragraph 8 of Part 3 of Schedule 5 to the Income Tax (Earnings and

Pensions) Act 2003.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

97

Clause  30,  page  15,  line  22,  after ‘by’, insert ‘subsections (4) and (5) of’.

Jane Kennedy

123

Schedule  12,  page  215,  line  17,  after ‘company,’, insert ‘provided that—

(a)	the company is not an offshore fund (within the meaning of section 756A

of ICTA),’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Mr Brooks Newmark

71

Schedule  12,  page  215,  line  18,  leave out ‘minority’ and insert ‘small’.

Jane Kennedy

124

Schedule  12,  page  215,  line  18,  after ‘(b)’, insert ‘the person’.

Public Bill Committee: 20th May 2008

124

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Mr Brooks Newmark

72

Schedule  12,  page  216,  line  17,  leave out ‘minority’ and insert ‘small’.

Jane Kennedy

125

Schedule  12,  page  216,  line  40,  after ‘company’, insert ‘that is not an offshore

fund’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Mr Brooks Newmark

73

Schedule  12,  page  217,  line  8,  leave out ‘minority’ and insert ‘small’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Mr Brooks Newmark

74

Schedule  12,  page  217,  line  9,  leave out ‘minority’ and insert ‘small’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Mr Brooks Newmark

70

Schedule  12,  page  219,  line  16,  leave out paragraph 24.

Jane Kennedy

98

Schedule  14,  page  225,  leave out line 7 and insert—

‘1A(1)

Subsection (1C) of section 437 (general annuity business: income limit) is

amended as follows.

(2)	In paragraph (b)(ii), omit “capital elements and”.

(3)	Omit paragraph (c).

(4)	In paragraph (d), for the words after “2005” substitute “are so much of the

payments under the new annuities as would be within the exemption in

subsection (1) of that section if—

(i)	section 718 of that Act were omitted, and

(ii)	that exemption were an exemption applying in

relation to companies as well as individuals.”

Public Bill Committee: 20th May 2008

125

Finance Bill, continued

2	Omit sections 539 to 551A (corporation tax in respect of gains arising in

connection with life policies etc).’.

Jane Kennedy

99

Schedule  14,  page  226,  line  23,  at end insert ‘(further provisions about corporation

tax in respect of gains arising in connection with life policies etc).

6A	Omit sections 656 to 658 (purchased life annuities).’.

Jane Kennedy

100

Schedule  14,  page  227,  line  7,  at end insert—

‘(aa)

in FA 1991, section 76(1),’.

Jane Kennedy

101

Schedule  14,  page  227,  line  13,  after ‘1999,’ insert ‘section 80 and’.

Jane Kennedy

102

Schedule  14,  page  227,  line  18,  leave out ‘paragraph 25’ and insert ‘paragraphs 25

and 27’.

Jane Kennedy

103

Schedule  14,  page  227,  line  19,  after first ‘paragraph’ insert ‘(b) of section 473(2)

and the “or” before it, paragraphs 268(1) and (2), 269 and’.

Jane Kennedy

104

Schedule  14,  page  227,  line  21,  leave out ‘paragraph 111’ and insert ‘paragraphs

111 and 141’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

75

Schedule  15,  page  228,  line  39,  at end insert—

‘(4)	This section shall not apply where an election under section 161(3) of the

Taxation of Chargeable Gains Act 1992 is made, and instead the market value of

the asset at the time of the appropriation shall, in computing the profits of the

trade for the purposes of tax, be treated as reduced by the amount of the

chargeable gain or increased by the amount of the loss referred to in subsection

(1) of section 161 of the Taxation of Chargeable Gains Act 1992, and where that

subsection and this section do not apply by reason of such an election, the profits

of the trade shall be computed accordingly.’.

Public Bill Committee: 20th May 2008

126

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

76

Schedule  15,  page  231,  line  6,  at end insert—

‘(4)	This paragraph shall not apply where an election under section 161(3) of the

Taxation of Chargeable Gains Act 1992 is made, and instead the market value of

the asset at the time of the appropriation shall, in computing the profits of the

trade for the purposes of tax, be treated as reduced by the amount of the

chargeable gain or increased by the amount of the loss referred to in subsection

(1) of section 161 of the Taxation of Chargeable Gains Act 1992, and where that

subsection and this paragraph do not apply by reason of such an election, the

profits of the trade shall be computed accordingly.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

77

Schedule  15,  page  231,  line  22,  leave out ‘paragraph 7 does not apply’ and insert

‘neither paragraph 7 nor section 173 of the Taxation of Chargeable Gains Act 1992

applies’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

78

Schedule  16,  page  232,  line  14,  leave out paragraph 2.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

79

Schedule  16,  page  232,  line  28,  leave out paragraph 3.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

80

Schedule  16,  page  232,  line  28,  leave out paragraphs 3 to 6.

Public Bill Committee: 20th May 2008

127

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

81

Clause  38,  page  18,  line  33,  at end insert ‘or otherwise altering or amending the

definition of an interest in an offshore fund and the circumstances in which an investor is

treated as disposing of an interest in an offshore fund’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

92

Schedule  17,  page  242,  line  3,  leave out sub-paragraphs (5) and (6).

Jane Kennedy

105

Schedule  17,  page  242,  line  28,  at end insert—

‘(2A)

In paragraph (f) of that subsection, after “Scheme” insert “, or from another

insurance company,”.’.

Jane Kennedy

106

Schedule  17,  page  245,  line  6,  leave out sub-paragraph (4) and insert—

‘(4)	Omit paragraph 42 (and the heading before it).’.

.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

91

Schedule  17,  page  247,  line  1,  leave out from beginning to end of line 43 on page

248.

Jane Kennedy

107

Schedule  17,  page  247,  line  17,  leave out from beginning to end of line 43 on page

248 and insert ‘carried on by the company,

(c)	income chargeable under Case V of Schedule D in respect of

any overseas property business treated as carried on by the

company under section 432AA,

(d)	other income of the company chargeable under Case V of

Schedule D,

(e)	distributions received by the company from companies

resident in the United Kingdom,

(f)	credits in respect of any creditor relationships (within the

meaning of Chapter 2 of Part 4 of the Finance Act 1996) of the

company,

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Revised 20 May 2008