House of Commons Amendments

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Public Bill Committee: 10th June 2008
282

Finance Bill, continued

(6)
Those adjustments may be made at any time, despite anything to the

contrary in any enactment relating to capital gains tax.”’.

Jane Kennedy

349


Schedule  7,  page  184,  line  6,  leave out paragraph 70.

Jane Kennedy

350


Schedule  7,  page  184,  line  20,  leave out paragraph 73.

Jane Kennedy

336


Schedule  7,  page  184,  line  35,  leave out ‘and 32’ and insert ‘to 32, 34C and 58B’.

Jane Kennedy

337


Schedule  7,  page  184,  line  37,  at end insert ‘(except employment-related securities

acquired pursuant to a securities option acquired before 6 April 2008).’.

Jane Kennedy

338


Schedule  7,  page  187,  line  21,  at end insert—

‘86A (1)
This paragraph applies in relation to employment-related securities if—

(a)
the date of the acquisition is on or after 6 April 2008 and on or before

31 July 2008, and

(b)
Chapter 2 of Part 7 of ITEPA 2003 (restricted securities) applies in

relation to the securities by virtue only of amendments made by this

Schedule.

      (2)
Section 431 of ITEPA 2003 (election for full or partial disapplication of

Chapter) has effect in relation to the employment-related securities as if in

subsection (5)(b) for “more than 14 days after the acquisition” there were

substituted “after 14 August 2008”.’.

New ClauseS

Gifts inter vivos

Jane Kennedy

NC6

To move the following Clause:—

‘(1)
Omit section 82(5) and (9) of FA 1985 (adjudication of certain gifts inter vivos).

(2)
Accordingly, omit paragraph 9 of Schedule 14 to FA 1999.

(3)
The amendments made by this section have effect in relation to instruments

executed on or after 13 March 2008, other than instruments effecting a land

transaction (within the meaning of paragraph 22 of Schedule 32).

(4)
For the purposes of section 14(4) of the Stamp Act 1891 (instruments not to be

given in evidence etc unless stamped in accordance with the law in force at the

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Finance Bill, continued

time of first execution), the law in force at the time of execution of such an

instrument shall be deemed to be the law as varied in accordance with this

section.’.

Abandonment expenditure: deductions from ring fence income

Jane Kennedy

NC7

To move the following Clause:—

‘(1)
FA 1991 is amended as follows.

(2)
Section 64 (relief for expenditure incurred by a participator in meeting defaulter’s

abandonment expenditure) is amended as follows.

(3)
In subsection (1)(a)—

(a)
omit “(as set out in section 107 of this Act)”, and

(b)
for “sub-paragraph (1)(a)” substitute “sub-paragraph (2)”.

(4)
In subsection (1)(b)—

(a)
for “sub-paragraph (4)” substitute “sub-paragraph (2)”, and

(b)
for “qualifying” substitute “contributing”.

(5)
In subsections (2), (3), (4) and (5) (in each place), for “qualifying” substitute

“contributing”.

(6)
Section 65 (reimbursement by defaulter in respect of certain abandonment

expenditure) is amended as follows.

(7)
In subsection (1)(a)—

(a)
omit “(as set out in section 107 of this Act)”, and

(b)
for “sub-paragraph (1)(a)” substitute “sub-paragraph (2)”.

(8)
In subsection (1)(b), for “sub-paragraph (4)” substitute “sub-paragraph (2)”.

(9)
In subsections (1) (in each place), (4), (5) (in each place), (6), (7) (in each place)

and (8), for “qualifying” substitute “contributing”.

(10)
The amendments made by this section have effect in relation to expenditure

incurred after 30 June 2008.’.

Qualifying expenditure: R&D relief and vaccine research relief

Jane Kennedy

NC8


To move the following Clause:—

‘(1)
Paragraph 5 of Schedule 20 to FA 2000 (R&D tax relief: staffing costs) is

amended as follows.

(2)
In sub-paragraph (1)(b), after “company;” insert—

“(ba)
the compulsory contributions paid by the company in respect

of benefits for directors or employees of the company under

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Finance Bill, continued

the social security legislation of an EEA State (other than the

United Kingdom) or Switzerland;”.

(3)
Before sub-paragraph (1A) insert—

“(1ZB)
In sub-paragraph (1)(ba) “social security legislation” means

legislation relating to any of the branches of social security listed in

Article 3(1) of Regulation (EC) No 883/2004 of the European

Parliament and of the Council of 29 April 2004 on the co-ordination

of social security systems (as amended from time to time).”

(4)
Schedule 13 to FA 2002 (vaccine research relief) is amended as follows.

(5)
In paragraph 2 (qualifying expenditure)—

(a)
in sub-paragraph (1)(a), at the end insert “or”,

(b)
omit sub-paragraph (1)(c) (and the “or” before it), and

(c)
omit sub-paragraph (4).

(6)
In paragraph 6 (qualifying expenditure on sub-contracted research and

development), omit—

(a)
in sub-paragraph (1), the second sentence, and

(b)
sub-paragraph (3) (expenditure on research sub-contracted to a charity, a

university or a scientific research organisation).

(7)
Omit paragraph 12 (qualifying expenditure on contributions to independent

research and development).

(8)
Omit paragraph 25 (refunds of qualifying expenditure on contributions to

independent research and development).

(9)
Accordingly, in paragraph 3 of Schedule 8 to this Act (changes to rates of vaccine

research relief), omit sub-paragraphs (2)(e) and (3)(d).

(10)
The amendments made by this section have effect in relation to expenditure

incurred on or after such day as the Treasury may by order appoint.

(11)
Paragraph 10(4) of Schedule 13 to FA 2002 (time limit for giving notice of

election for connected persons treatment) does not apply to a notice of an election

under that paragraph in relation to sub-contractor payments if—

(a)
the sub-contractor falls within paragraph 6(3) of that Schedule (repealed

by this section) (charity, university or scientific research organisation),

and

(b)
the notice is given before the end of the period of 12 months beginning

with the day appointed under subsection (10).’.

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.

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Finance Bill, continued

(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.’.

Exemption for bingo

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

John Thurso

NC3

To move the following Clause:—

‘(1)
Group 4 (betting, gaming and lotteries) of Schedule 9 to the Value Added Tax Act

1994 is amended as follows.

(2)
After Note (5)(e) insert “, or

(f)
bingo which is played pursuant to a bingo operating licence.”.

(3)
After Note (11) insert—

“(12)
In Note (5)(f) “bingo operating licence” means such a licence as is

provided for in section 65(2)(b) of the Gambling Act 2005.”’.

Public Bill Committee: 10th June 2008
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Finance Bill, continued

Fuel duty regulator

Mr Stewart Hosie

NC4

To move the following Clause:—

‘In HODA 1979 in section 6 (excise duty on hydrocarbon oil) there is inserted

after subsection (1A)—

“(1AA)
In every Budget Statement and pre-Budget Report the Chancellor of the

Exchequer shall provide his forecast for the price of oil and set out

anticipated yield from fuel duty and VAT on fuel for that price and for a

range of prices up to 50 per cent. above his forecast.

(1AB)
In the 2008 pre-Budget Report the Chancellor of the Exchequer shall

bring forward a mechanism for—

(a)
using additional revenue from VAT on fuel above forecast to

offset fuel duty when the oil price rises above his forecast level;

(b)
providing specific fuel duty reductions targeted at fuel sold in

sparsely populated areas; and

(c)
providing specific fuel duty reductions targeted at fuel sold to

road haulage operators;


and the Chancellor of the Exchequer shall by order define “sparsely

populated areas” and “road haulage operators” for the purposes of this

subsection.

(1AC)
Whenever international oil prices return to the level estimated by the

forecast made in accordance with subsection (1AA), the offset described

in subsection (1AB) (a) to (c) is suspended until the price rises again or

the forecast price is amended by the next Budget or pre-Budget

Report.”.’.

Definition of residence

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

NC5

To move the following Clause:—

‘(1)
An individual is resident in the United Kingdom for income tax purposes if—

(a)
during the tax year in question the individual spends (in total) more than

31 days in the United Kingdom; and

(b)
during the three-year period that includes the tax year in question and the

two tax years immediately preceding it the individual has spent (in total)

183 or more days in the United Kingdom, including—

(i)
the total number of days spent in the United Kingdom in the tax

year in question,

(ii)
one-third of the days in the tax year immediately preceding the

tax year referred to in sub-paragraph (i), and

Public Bill Committee: 10th June 2008
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Finance Bill, continued

(iii)
one-sixth of the days in the tax year immediately preceding the

tax year referred to in sub-paragraph (ii).

(2)
An individual found to be resident under subsection (1) shall be liable for income

tax on both their UK income and capital gains and any foreign income and capital

gains remitted to the United Kingdom.

(3)
In determining whether an individual fulfils the definition of residence under

subsection (1) treat each day the individual is physically present in the United

Kingdom as a day spent by the individual in the United Kingdom.

(4)
But in determining that issue do not treat as a day spent by the individual in the

United Kingdom any day on which the individual—

(a)
arrives in and departs from the United Kingdom on the same day;

(b)
is present in the United Kingdom for less than 24 hours for transit only;

(c)
is present in the United Kingdom by virtue of being employed as a crew

member of a foreign vessel;

(d)
is unable to leave the United Kingdom on the same day owing to a

medical condition;

(e)
is enrolled in full-time higher education in the United Kingdom;

(f)
is an exempt individual.

(5)
The Treasury shall, by regulations, define an exempt individual.

(6)
Regulations under subsection (5) shall be made by statutory instrument.

(7)
A statutory instrument containing regulations under subsection (5) may not be

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

House of Commons.

(8)
On the coming into force of this section, Chapter 2 of ITA 2007 shall cease to

have effect.’.

Order of the House [21st APRIL 2008]

That the following provisions shall apply to the Finance Bill:

1.
Clauses 3, 5, 6, 15, 21, 49, 90 and 117 and new Clauses amending section 74

of the Finance Act 2003 be committed to a Committee of the whole House;

2.
the remainder of the Bill be committed to a Public Bill Committee; and

3.
when the provisions of the Bill considered by the Committee of the whole

House and the Public Bill Committee have been reported to the House, the

Bill be proceeded with as if it had been reported as a whole to the House from

the Public Bill Committee.

Resolution of the Committee [6th May 2008]

That the Committee shall meet—

(a)
on Tuesdays at 10.30 a.m. and 4.30 p.m., and

(b)
on Thursdays at 9.00 a.m. and 1.00 p.m.,

when the House is sitting.

Public Bill Committee: 10th June 2008
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Finance Bill, continued

Order of the Committee [6th may 2008]

That the order in which proceedings are taken shall be: Clauses 1 and 2; Schedule 1;

Clause 4; Schedule 2; Clause 7; Schedule 3; Clause 8; Schedule 4; Clauses 9 to 12;

Schedule 5; Clauses 13 and 14; Schedule 6; Clauses 16 to 20; Clause 24; Schedule 8;

Clause 25; Schedule 9; Clause 26; Schedule 10; Clauses 27 to 29; Schedule 11; Clauses

30 and 31; Schedule 12; Clauses 32 and 33; Schedules 13 and 14; Clause 34; Schedule

15; Clause 35; Schedule 16; Clauses 36 to 40; Schedule 17; Clause 41; Schedule 18;

Clauses 42 to 48 and 50; Schedule 19; Clauses 51 and 52; Schedule 20; Clauses 53 to 57;

Schedule 21; Clauses 58 and 59; Schedule 22; Clause 60; Schedule 23; Clauses 61 to 71;

Schedule 24; Clauses 72 to 76; Schedule 25; Clauses 77 to 79; Schedule 26; Clauses 80

and 81; Schedule 27; Clauses 82 to 88; Schedule 28; Clause 89; Schedule 29; Clause 91;

Schedule 30; Clauses 92 to 94; Schedule 31; Clauses 95 and 96; Schedule 32; Clauses 97

to 102; Schedule 33; Clauses 103 and 104; Schedule 34; Clauses 105 and 106; Schedule

35; Clauses 107 and 108; Schedule 36; Clauses 109 and 110; Schedule 37; Clause 111;

Schedule 38; Clauses 112 and 113; Schedule 39; Clauses 114 to 116; Schedule 40; Clause

118; Schedule 41; Clauses 119 and 120; Schedule 42; Clauses 121 to 124; Schedule 43;

Clauses 125 to 132; Schedule 44; Clauses 133 to 139; Schedule 45; Clauses 140 to 151;

Schedule 46; Clauses 152 to 158; Clauses 22 and 23; Schedule 7; new Clauses; new

Schedules; and Clauses 159 and 160.