Public Bill Committee: 8th May 2008

60

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

31

Schedule  3,  page  128,  line  13,  at end insert—

‘“entrepreneur’s relief limit” means £1 million or such greater sum as the

Treasury may from time to time by order specify,’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

62

Schedule  4,  page  131,  line  39,  leave out from begining to end of line 7 on page 132

and insert—

‘(3)	Where a claim is made under this section, the nil-rate band maximum at the

relevant time is to be treated for the relevant purposes as increased by the relevant

percentage specified in subsection (4) below (but subject to subsection (5) and

section 8C below).

(3A)	For the purposes of subsection (3) above—

(a)	where the claim specifies that it is made in relation to the death of the

survivor (“a death claim”)—

(i)	“the relevant time” is the time of the survivor’s death, and

(ii)	“the relevant purposes” are the purposes of the change to tax or

additional tax on or by reason of the death of the survivor;

and

(b)	where the claim specifies that it is made in relation to an immediately

chargeable lifetime transfer (meaning a chargeable transfer which is not

made on death and which was not a potential exempt transfer) (“a

lifetime claim”)—

(i)	“the relevant time” is the date on which that chargeable transfer

was made, and

(ii)	“the relevant purposes” are the purposes of the charge to tax on

that chargeable transfer (not being additional tax payable by

reason of the death of the survivor).

(4)	For the purposes of subsection (3) above, but subject to subsection (4A) below,

“the relevant percentage” is—

where—

E is the amount by which M is greater than VT in the case of the deceased person;

and

NRBM is the nil-rate band maximum at the relevant time.

(4A)	Where a claim has been made under this section in relation to an immediately

chargeable lifetime transfer (“the spent transfer”) and the survivor’s death did not

Public Bill Committee: 8th May 2008

61

Finance Bill, continued

occur within 7 years after the date on which that chargeable transfer was made

(“the spent transfer date”), then for the purpose of all claims under this section in

relation to occasions (whether immediately chargeable lifetime transfers or the

death of the survivor) on or after the seventh anniversary of the spent transfer date

the adjustment specified in subsection (4B) below shall be made for the purpose

of calculating the relevant percentage under subsection (4) above.

(4B)	Subject to subsection (4C) below, E for the purpose of the formula in subsection

(4) above shall be reduced by R per cent of itself where—

PNRB is the amount which would have been survivor’s nil-rate band maximum

at the time of the spent transfer if no claim had been made under this section in

relation to the spent transfer;

TNRB is the survivor’s nil-rate band maximum as computed in the light of the

claim made under this section in relation to the spent transfer; and

ELT is the amount by which the value transferred by the spent transfer, added to

the value transferred by any chargeable transfers made by the survivor within 7

years before the spent transfer, exceeded PNRB.

(4C)	Where an adjustment was made under subsection (4A) above in calculating the

relevant percentage in relation to the spent transfer, the adjustment specified in

subsection (4B) above shall be made in relation to the amount to which E was

adjusted on that occasion; and this subsection shall apply cumulatively where

lifetime claims have been made in relation to successive spent transfers each of

which has given rise to an adjustment under subsection (4B) above.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

61

Schedule  4,  page  131,  line  41,  leave out ‘on’ and insert ‘or additional tax on or by

reason of’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Mr Brooks Newmark

44

Schedule  4,  page  132,  line  25,  at end insert—

‘(8)	For the purposes of the operation of this section, section 18(2) shall be

ignored.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

63

Schedule  4,  page  132,  line  28,  leave out from beginning to ‘(if’ in line 30 and

insert—

‘(a)	in the case of a lifetime claim,

Public Bill Committee: 8th May 2008

62

Finance Bill, continued

(i)	by the survivor within the period of two years from the end of the

month in which a lifetime transfer was made, or such longer

period as an officer of Revenue and Customs may in the

particular case allow, or

(ii)	(if no such claim is made and the survivor dies before the end of

that period) by the personal representatives of the survivor

within the permitted period;

and;

(b)	in the case of a death claim,

(i)	by the personal representatives of the survivor within the

survivor within the permitted period, or

(ii)

’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Mr Brooks Newmark

45

Schedule  4,  page  133,  line  44,  at end insert—

‘2A(1)

Section 18 (transfers between spouses) is amended as follows.

(2)	After subsection (4) insert—

“(5)	Subsection (2) shall cease to have effect from 6 April 2008.”’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

64

Schedule  4,  page  135,  line  39,  at end insert—

‘(3A)

The amendment made by paragraph 6 has effect in relation to incorrect accounts,

information or documents delivered on or after the day on which this Act is

passed.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Mr Brooks Newmark

46

Schedule  4,  page  136,  line  36,  at end insert—

‘(6)	Where the deceased person died before 13 March 1975, section 8A applies as

if any property then left to the survivor was not charged to estate duty, whether

or not it was.’.

Public Bill Committee: 8th May 2008

63

Finance Bill, continued

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

John Thurso

7

Clause  9,  page  4,  line  39,  at end insert—

‘(5A)

Within six months of the commencement of this section, the Chancellor of the

Exchequer must lay before the House of Commons a statement setting out the

purpose of alcoholic liquor duty, and must seek the approval of the House of

Commons, by resolution, for such a statement.’.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

John Thurso

6

Clause  9,  page  4,  line  41,  at end add—

‘(7)	No further amendment may be made to section 5 of ALDA 1979 within three

years of the commencement of this section, unless the condition set out in

subsection (8) has been satisfied.

(8)	The condition referred to in subsection (7) is that the Chancellor of the Exchequer

shall have compiled and laid before the House of Commons a report containing

an assessment of the impact of the increases in alcohol liquor duty on—

(a)	the competitiveness of licensed premises, and

(b)	the level of employment in alcohol-related industry,

and the House of Commons shall, by resolution, have approved that report.’.

Mr Philip Hammond

Mr Mark Hoban

Justine Greening

Mr David Gauke

58

Clause  9,  page  4,  line  41,  at end insert—

‘(7)	The Treasury must, not later than Budget Day 2009, lay before the House

revenue-neutral proposals for—

(a)	decreased rates of duty on beer of a strength not exceeding 2.5 per cent.

and cider of strength not exceeding 3.0 per cent.;

(b)	increased rates of duty on beer of a strength exceeding 5.9 per cent. and

cider of a strength exceeding 5.5 per cent.; and

(c)	a new category of duty on spirit-based ready-to-drinks, at a rate higher

than the duty on spirits.

(8)	For the purposes of subsection (7), “spirit-based ready-to-drinks” means—

(a)	spirits of any description which are of a strength exceeding 1.2 per cent.

but not exceeding 5.5 per cent.,

(b)	any such mixture, compound or preparation made with spirits as is of a

strength exceeding 1.2 per cent. but not exceeding 5.5 per cent., or

(c)	liquors contained, with any spirits, in any mixture which is of a strength

exceeding 1.2 per cent. but not exceeding 5.5 per cent.,

but does not include methylated spirits.’.

Public Bill Committee: 8th May 2008

64

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Justine Greening

Mr David Gauke

59

Clause  9,  page  4,  line  41,  at end insert—

‘(7)	The Treasury must, not later than Budget Day 2009, lay before the House its

assessment of the impact of the amendments made by this section on

consumption rates of alcoholic liquor (as defined in section 1 of ALDA 1979).’.

Stewart Hosie

60

Clause  9,  page  4,  line  41,  at end add—

‘(7)	The Treasury will, prior to the 2008 Pre-Budget statement—

(a)	publish an assessment of the level of revenue yield anticipated from

alcohol liquor duty based on it being levied on the rates of duty in this

section, and

(b)	publish an assessment of the level of alcohol liquor duty required to be

levied on each type of drink on an equitable basis based on the alcohol

content to generate the same level of revenue yield.’.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

56

Clause  17,  page  8,  line  38,  at end insert—

‘(1A)

The Treasury shall undertake a review of the excluded supplies provisions under

Part II of FA 2000.

(1B)	A review under subsection (1A) is subject to approval by resolution of the House

of Commons.’.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

57

Clause  17,  page  8,  line  40,  at end insert—

‘(3)	In sub-paragraph 2(1) of Schedule 6 to FA 2000 after “on”, insert “the level of

carbon dioxide emissions emitted by”.’.

Public Bill Committee: 8th May 2008

65

Finance Bill, continued

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

47

Clause  22,  page  12,  line  4,  at end insert—

‘(1C)

Subsection (1) does not apply to an individual who is enrolled in a higher

education institution in the United Kingdom.’.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

49

Schedule  7,  page  151,  line  30,  leave out ‘£2,000’ and insert ‘£5,435’.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

50

Schedule  7,  page  151,  line  36,  leave out ‘£2,000’ and insert ‘£5,435’.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

51

Schedule  7,  page  152,  line  2,  at end insert—

‘(4)	The Chancellor of the Exchequer shall review, on an annual basis, the amount

specified under subsection (1)(c).

(5)	Any review conducted under subsection (4) is subject to approval by resolution

of the House of Commons.’.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

48

Schedule  7,  page  153,  line  19,  at end insert ‘(excluding each year the individual

was enrolled in full-time higher education in the UK)’.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

52

Schedule  7,  page  153,  line  37,  at end insert—

‘(6)	Subsection (4) shall not have effect until—

(a)	the Treasury has laid before the House of Commons a report setting out

its assessment of the impact of the charge on—

Public Bill Committee: 8th May 2008

66

Finance Bill, continued

(i)	foreign nationals in low-paid employment,

(ii)	small businesses employing foreign nationals, and

(iii)

higher education institutions; and

(b)	the report has been approved by resolution of the House of Commons.’.

New ClauseS

Small business rates relief

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

John Thurso

NC1

To move the following Clause:—

‘(1)	A small business with a rateable value of less than £25,000 may claim a business

rate allowance.

(2)	The Treasury shall, by regulations, define the level of business rate allowance and

the circumstances in which that allowance may be claimed.

(3)	Regulations under subsection (2) shall be made by statutory instrument.

(4)	A statutory instrument containing regulations under subsection (2) may not be

made unless a draft of it has been laid before and approved by resolution of the

House of Commons.’.

Overpayment of tax credits

Mr Simon Hughes

Mr Jeremy Browne

NC2

To move the following Clause:—

‘If HMRC have overpaid tax credits to any person, they may not reclaim such

overpayments where—

(a)	the amount overpaid is £5,000 or less and the person’s annual income is

less than £10,000, or

(b)	the amount overpaid is £2,500 or less and the person’s annual income is

less than £20,000.’.

---

Revised 8 May 2008