53

House of Commons

Thursday 8th 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 2008].

Jane Kennedy

53

Schedule  2,  page  109,  line  3,  at end insert—

‘(6A)

For the purpose of determining whether a company which has a qualifying

shareholding in a joint venture company is a trading company—

(a)	any holding by it of shares in the joint venture company is to be

disregarded, and

(b)	it is to be treated as carrying on an appropriate proportion of the activities

of the joint venture company or, where the joint venture company is the

holding company of a trading group, of the activities of that group;

and in paragraph (b) above “appropriate proportion” means a proportion

corresponding to the percentage of the ordinary share capital of the joint venture

company held by the company.’.

Jane Kennedy

54

Schedule  2,  page  109,  line  37,  at end insert—

‘(10A)

For the purpose of determining whether a group of companies is a trading group

in a case where any one or more members of the group has a qualifying

shareholding in a joint venture company which is not a member of the group—

(a)	every holding of shares in the joint venture company by a member of the

group having a qualifying shareholding in it is to be disregarded, and

Public Bill Committee: 8th May 2008

54

Finance Bill, continued

(b)	each member of the group having such a qualifying shareholding is to be

treated as carrying on an appropriate proportion of the activities of the

joint venture company or, where the joint venture company is a holding

company of a trading group, of the activities of that group;

and in paragraph (b) above “appropriate proportion” means a proportion

corresponding to the percentage of the ordinary share capital of the joint venture

company held by the member of the group.’.

Jane Kennedy

55

Schedule  2,  page  109,  line  38,  leave out from first ‘of’ to ‘are’ in line 39 and insert

‘this section the activities of the members of a group of companies’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

3

Schedule  2,  page  116,  leave out lines 11 to 29.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

John Thurso

4

Clause  7,  page  3,  line  23,  at end insert—

‘(2)	Within twelve months of the commencement of this section, the Treasury shall

compile and lay before the House of Commons a report containing an assessment

of the impact of the entrepreneurs’ relief limit on the rate of investment of serial

entrepreneurs.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

14

Schedule  3,  page  120,  line  20,  leave out from ‘use’ to ‘for’ in line 21.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

15

Schedule  3,  page  120,  line  22,  after ‘business’, insert ‘where such assets have been

in such use for a period of not less than two years at the time of the disposal’.

Public Bill Committee: 8th May 2008

55

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

17

Schedule  3,  page  120,  line  26,  leave out from ‘throughout’ to first ‘the’ in line 27

and insert ‘a 12-month period beginning not more than two years before’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

18

Schedule  3,  page  120,  line  30,  leave out from ‘throughout’ to first ‘the’ in line 31

and insert ‘a 12-month period beginning not more than two years before’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

16

Schedule  3,  page  120,  line  31,  leave out from ‘which’ to end of line 34 and insert

‘the disposal of the asset takes place’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

19

Schedule  3,  page  120,  line  37,  leave out from ‘throughout’ to second ‘the’ and

insert ‘a 12-month period beginning not more than two years before’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

21

Schedule  3,  page  120,  line  39,  leave out ‘the individual’s personal company’ and

insert ‘unlisted’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

23

Schedule  3,  page  120,  line  41,  leave out from ‘group’ to end of line 44.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

24

Schedule  3,  page  121,  line  1,  leave out from ‘the’ to end and insert ‘condition in’.

Public Bill Committee: 8th May 2008

56

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

25

Schedule  3,  page  121,  line  2,  leave out ‘are’ and insert ‘is’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

20

Schedule  3,  page  121,  line  2,  leave out from ‘throughout’ to end and insert ‘a 12-

month period beginning not more than two years before’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

26

Schedule  3,  page  121,  line  36,  after ‘possession’, insert ‘, including a defeasible

life interest,’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

27

Schedule  3,  page  122,  line  31,  leave out ‘as part of’ and insert ‘subsequently to’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

28

Schedule  3,  page  122,  leave out lines 37 to 39 and insert ‘date of the disposal referred

to in subsection (3)’.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

John Thurso

8

Schedule  3,  page  124,  line  5,  leave out ‘£1 million’ and insert ‘the entrepreneurs’

relief limit’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

29

Schedule  3,  page  124,  line  5,  leave out ‘£1 million’ and insert ‘the entrepreneur’s

relief limit’.

Public Bill Committee: 8th May 2008

57

Finance Bill, continued

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

John Thurso

9

Schedule  3,  page  124,  line  7,  leave out ‘£1 million’ and insert ‘the entrepreneurs’

relief limit’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

30

Schedule  3,  page  124,  line  7,  leave out ‘£1 million’ and insert ‘the entrepreneur’s

relief limit’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

32

Schedule  3,  page  124,  line  49,  at end insert—

‘(10)

The Treasury shall prepare and publish not later than 31st March 2010 an

assessment of the impact of the provisions of subsection (3) on the activity of

serial entrepreneurs.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

33

Schedule  3,  page  125,  line  41,  at end insert ‘in respect of any period commencing

on or after 6th April 2006’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

35

Schedule  3,  page  126,  line  7,  at end insert ‘and’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

34

Schedule  3,  page  126,  line  13,  leave out from ‘business’ to end of line 17.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

37

Schedule  3,  page  126,  line  24,  at end insert ‘and’.

Public Bill Committee: 8th May 2008

58

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

36

Schedule  3,  page  126,  leave out lines 28 to 31.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

John Thurso

10

Schedule  3,  page  127,  line  27,  at end insert—

‘169RA

Entrepreneurs’ relief limit

The entrepreneurs’ relief limit is £1 million.

169RB

Indexation of the entrepreneurs’ relief limit

(1)	This section applies if the retail prices index for the September before the start of

a tax year is higher than it was for the previous September.

(2)	The entrepreneurs’ relief limit for the tax year is the amount found as follows.

Step 1

Increase the entrepreneurs’ relief limit for the previous tax year by the same

percentage as the percentage increase in the retail prices index.

Step 2

If the result of Step 1 is a multiple of £10, it is the entrepreneurs’ relief limit for

the tax year.

If the result of Step 1 is not a multiple of £10, round it up to the nearest amount

which is a multiple of £10.

That amount is the entrepreneurs’ relief limit for the tax year.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

22

Schedule  3,  page  127,  leave out lines 37 to 42.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

38

Schedule  3,  page  127,  line  37,  leave out from ‘company”’ to end of line 42 and

insert ‘has the same meaning as in section 165(8).’.

Public Bill Committee: 8th May 2008

59

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

39

Schedule  3,  page  127,  line  39,  leave out ‘5%’ and insert ‘1%’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

40

Schedule  3,  page  127,  line  41,  leave out ‘5%’ and insert ‘1%’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

41

Schedule  3,  page  127,  line  42,  at end insert ‘, or

(c)	in which he holds shares under an approved HMRC

share scheme.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

42

Schedule  3,  page  127,  line  42,  at end insert ‘, or

(c)	in respect of shares in which he holds EMI qualifying

options.’.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

John Thurso

5

Schedule  3,  page  127,  line  42,  at end insert—

‘(3A)

Shares held by an individual through an employee profit sharing scheme or a

share-ownership scheme shall be exempt from the requirements of subsection

(3).’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

43

Schedule  3,  page  128,  line  9,  at end insert—

‘“EMI qualifying options” has the meaning given in section 527(4) of the

Income Tax (Earnings and Pensions) Act 2003,’.

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Revised 8 May 2008