203

House of Commons

Thursday 5th June 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].

Jane Kennedy

148

Schedule  27,  page  322,  line  35,  at end insert—

‘(1)	Sub-paragraph (2) applies if—

(a)	an initial allowance has been made under Part 3 of CAA 2001 in respect

of qualifying enterprise zone expenditure, and

(b)	an event occurs in relation to the building on which the expenditure was

incurred which, if section 307 of that Act (withdrawal of allowance if

building not industrial building when first used etc) remained in force,

would result in the allowance being withdrawn.

(2)	Unless the event occurs more than 7 years after the end of the chargeable period

for which the allowance was made, the allowance is to be withdrawn as if that

section remained in force.’.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

185

Clause  85,  page  47,  line  33,  leave out paragraph (b).

Public Bill Committee: 5th June 2008

204

Finance Bill, continued

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

186

Clause  85,  page  47,  line  36,  leave out from ‘(2)’ to end of line 37 and add ‘may not

be made unless a draft of the regulations has been laid before, and approved by a

resolution of, the House of Commons.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Mr Brooks Newmark

218

Clause  86,  page  48,  line  29,  leave out subsection (4) and insert—

‘(4)	Where this section applies—

(a)	section 343(2) shall apply, but as if the words “and are subject to section

343A (company reconstructions involving business of leasing plant or

machinery)” were omitted; and

(b)	section 343A shall not apply.’.

Jane Kennedy

149

Clause  91,  page  52,  line  24,  leave out ‘, other than any rent,’.

Jane Kennedy

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

150

Clause  91,  page  52,  line  25,  leave out from ‘£40,000’ to end of line 26.

Jane Kennedy

151

Clause  91,  page  52,  line  33,  after ‘consideration’, insert ‘for the assignment or

surrender’.

Jane Kennedy

152

Clause  92,  page  54,  line  42,  at end insert—

‘( )	In Schedule 9 to that Act (SDLT: right to buy etc), after paragraph 4A insert—

Public Bill Committee: 5th June 2008

205

Finance Bill, continued

“Shared ownership lease: grant not linked with staircasing transactions etc

4B  (1)

For the purpose of determining the rate of tax chargeable on the grant

of a shared ownership lease of a dwelling, the grant shall be treated as

if it were not linked to—

(a)	any acquisition of an interest in the dwelling to which

paragraph 4A applies, or

(b)	a transfer of the reversion to the lessee or lessees under the

terms of the lease.

(2)	In this paragraph “shared ownership lease” has the same meaning as

in paragraph 4A.”

( )	In that Schedule, in paragraphs 10(1) and (2) and 11(b) (shared ownership trusts),

omit “additional”.

( )	In that Schedule, insert at the end—

“Shared ownership trust: declaration not linked with staircasing transactions etc

12	For the purpose of determining the rate of tax chargeable on the

declaration of a shared ownership trust, the declaration shall be treated

as if it were not linked to—

(a)	any equity-acquisition payment under the trust or any

consequent increase in the purchaser’s beneficial interest in

the trust property, or

(b)	a transfer to the purchaser of an interest in the trust property

upon the termination of the trust.”’.

Jane Kennedy

153

Clause  93,  page  55,  line  36,  at end insert ‘(but see sub-paragraph (6A))’.

Jane Kennedy

154

Clause  93,  page  56,  line  3,  at end insert—

‘(6A)

Sub-paragraph (4) does not apply where—

(a)	there is a change in the control of the purchaser because a loan creditor

(within the meaning of section 417(7) to (9) of the Taxes Act 1988)

obtains control of, or ceases to control, the purchaser, and

(b)	the other persons who controlled the purchaser before that change

continue to do so.’.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

187

Clause  93,  page  56,  leave out lines 4 to 6.

Public Bill Committee: 5th June 2008

206

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

159

Clause  93,  page  56,  line  6,  at end insert—

‘(8)	The provisions of sub-paragraph (4) shall not apply unless, at the effective date

of the transaction, there are arrangements in existence by virtue of which, at that

time or some later time, a person has or could obtain, or any persons together have

or could obtain, control of the purchaser but not of the vendor.’.

Jane Kennedy

155

Clause  93,  page  56,  line  7,  leave out ‘4A(1)’ and insert ‘4A’.

Jane Kennedy

156

Clause  93,  page  56,  line  8,  after ‘transactions),’, insert ‘—

(a)	in sub-paragraph (1),’.

Jane Kennedy

157

Clause  93,  page  56,  line  9,  at end insert—

‘(b)	after that sub-paragraph insert—

“(1A)

Sub-paragraph (1) has effect subject to sub-paragraph (3A).”,

(c)	in sub-paragraph (3)—

(i)	for “sub-paragraph (1)(a)” substitute “this paragraph”, and

(ii)	for “this sub-paragraph” substitute “this paragraph”, and

(d)	after sub-paragraph (3) insert—

“(3A)

Sub-paragraph (1) does not apply where—

(a)	there is a change in the control of the purchaser

because a loan creditor (within the meaning of section

417(7) to (9) of the Taxes Act 1988) obtains control

of, or ceases to control, the purchaser, and

(b)	the other persons who controlled the purchaser before

that change continue to do so.”’.

Jane Kennedy

158

Clause  93,  page  56,  line  12,  leave out from ‘2008’ to end of line 19.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

189

Clause  108,  page  68,  line  8,  at end insert—

Public Bill Committee: 5th June 2008

207

Finance Bill, continued

‘(1A)

The Chancellor of the Exchequer shall bring forward legislation to provide for

any transitional provisions required in connection with Schedule 36.

(1B)	That Schedule shall not come into force until the requirement under subsection

(1A) has been fulfilled.’.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

188

Clause  108,  page  68,  line  11,  leave out subsection (3).

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

162

Schedule  36,  page  352,  line  6,  after ‘An’, insert ‘authorised’.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

163

Schedule  36,  page  352,  line  14,  after ‘An’, insert ‘authorised’.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

164

Schedule  36,  page  352,  line  18,  after ‘is’, insert ‘in that person’s possession and’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

244

Schedule  36,  page  352,  line  40,  leave out ‘has’ and insert ‘and the taxpayer have’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

245

Schedule  36,  page  353,  line  1,  after ‘opportunity’, insert ‘to produce the

information or document and’.

Public Bill Committee: 5th June 2008

208

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

246

Schedule  36,  page  353,  line  3,  leave out ‘a summary of’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

247

Schedule  36,  page  353,  line  15,  at end insert—

‘(6)	No notice shall be given by the First-tier Tribunal unless the person to whom the

notice is addressed and the taxpayer have been given notice of a hearing at which

the Tribunal is to consider the issue of the notice and have been given an

opportunity to attend the hearing and make representations.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

248

Schedule  36,  page  354,  line  13,  leave out ‘may’ and insert ‘must’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

249

Schedule  36,  page  354,  line  22,  at end insert ‘(such period to be at least 30 days)’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

250

Schedule  36,  page  354,  line  30,  after ‘solely’, insert ‘or substantially’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

251

Schedule  36,  page  355,  line  4,  after ‘period’, insert ‘(such period to be at least 30

days)’.

Jane Kennedy

219

Schedule  36,  page  355,  line  12,  leave out ‘any’ and insert ‘a person’s’.

Jane Kennedy

220

Schedule  36,  page  355,  line  17,  leave out third ‘the’ and insert ‘that person’s’.

Public Bill Committee: 5th June 2008

209

Finance Bill, continued

Jane Kennedy

221

Schedule  36,  page  355,  line  18,  leave out ‘of any person’ and insert—

‘()	The powers under this paragraph do not include power to enter or inspect any

part of the premises that is used solely as a dwelling.

()	In this Schedule—

“business assets” means assets that an officer of Revenue and Customs has

reason to believe are owned, leased or used in connection with the

carrying on of a business by any person, excluding documents,

“business documents” means documents (or copies of documents)—

(a)	that relate to the carrying on of a business by any person, and

(b)	that form part of any person’s statutory records, and

“business premises”, in relation to a person, means premises (or any part of

premises) that an officer of Revenue and Customs has reason to believe

are (or is) used in connection with the carrying on of a business by or on

behalf of the person.

Power to inspect premises used in connection with taxable supplies etc

10A(1)

This paragraph applies where an officer of Revenue and Customs has reason

to believe that—

(a)	premises are used in connection with the supply of goods under

taxable supplies and goods to be so supplied are on those premises,

(b)	premises are used in connection with the acquisition of goods from

other member States under taxable acquisitions and goods to be so

acquired are on those premises, or

(c)	premises are used as a fiscal warehouse.

(2)	An officer of Revenue and Customs may enter the premises and inspect—

(a)	the premises,

(b)	any goods that are on the premises, and

(c)	any documents on the premises that appear to the officer to relate to

such goods.

(3)	The powers under this paragraph do not include power to enter or inspect any

part of the premises that is used solely as a dwelling.

(4)	Terms used both in sub-paragraph (1) and in VATA 1994 have the same

meaning in that sub-paragraph as they have in that Act.

Carrying out inspections

10B’.    

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

165

Schedule  36,  page  355,  line  18,  at end insert—

‘(1A)

For the purpose of this paragraph an inspection does not include the searching

of premises or any personal effects.’.

Jane Kennedy

222

Schedule  36,  page  355,  line  19,  leave out from ‘this’ to end of line 22 and insert

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Revised 5 June 2008