House of Commons Amendments

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Public Bill Committee: 12th June 2008
313

Finance Bill, continued

Jane Kennedy

342

Schedule  7,  page  153,  leave out lines 27 to 31 and insert—

‘(4)
If the relevant tax increase would otherwise be less than £30,000, subsection (2)

has effect as if—

(a)
in addition to the income and gains actually nominated under section

809BA in the individual’s claim under section 809B for the relevant tax

year, an amount of income had been nominated so as to make the relevant

tax increase equal to £30,000, and

(b)
the individual’s income for that year were such that such a nomination

could have been made (if that is not the case).’.

Jane Kennedy

343

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

‘(6)
Nothing in subsection (4) affects what is regarded, for the purposes of

section 809H or 809I, as nominated under section 809BA.’.

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—

(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.’.

Jane Kennedy

344

Schedule  7,  page  154,  line  9,  leave out ‘809B(3)’ and insert ‘809BA’.

Jane Kennedy

345

Schedule  7,  page  154,  line  17,  at beginning insert ‘If section 809H applies,’.

Jane Kennedy

346

Schedule  7,  page  154,  line  29,  after ‘year’ insert ‘(other than income or chargeable

gains nominated under section 809BA)’.

Jane Kennedy

347

Schedule  7,  page  155,  line  34,  leave out ‘809B(3)’ and insert ‘809BA’.

Public Bill Committee: 12th June 2008
314

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

363


Schedule  7,  page  156,  line  35,  leave out from ‘is’ to end of line 36 and add

‘employed in the United Kingdom by a relevant person.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

364


Schedule  7,  page  157,  line  37,  after ‘(3)(a)’, insert ‘, subsection (11)’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

365


Schedule  7,  page  157,  line  41,  at end insert—

‘(11)
For the purpose of Condition A, property brought to, or received or used in, the

United Kingdom by or for the benefit of a relevant person is to be disregarded in

any of these cases—

(a)
if the property or service is enjoyed virtually to the entire exclusion of the

individual, his spouse or civil partner and his dependent children;

(b)
if full consideration in money or money’s worth is given by the

individual, his spouse or civil partner or his dependent children for the

enjoyment; or

(c)
the property or service is enjoyed by the individual, his spouse or civil

partner or his dependent children in the same way and on the same terms

as it may be enjoyed by the general public or by a section of the general

public.

(12)
The references in subsection (11) above to the spouse or civil partner of the

individual do not include—

(a)
a person to whom the individual is not for the time being married but may

later marry, or a person of whom the individual is not for the time being

the civil partner but of whom he may later be a civil partner, or

(b)
a spouse or civil partner from whom the individual is separated under an

order of a court or under a separation agreement or in such circumstances

that the separation is likely to be permanent, or

(c)
the widow or widower or surviving civil partner of the individual.

(13)
In this section—

(a)
“dependent child” means a child who—

(i)
is under the age of 18 years,

(ii)
is unmarried, and

(iii)
does not have a civil partner, and

(b)
“child” includes a stepchild.’.

Public Bill Committee: 12th June 2008
315

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

366


Schedule  7,  page  159,  line  33,  leave out ‘all relevant persons’ and insert ‘the

individual, his spouse or civil partner and his dependent children’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

367


Schedule  7,  page  159,  line  34,  leave out ‘a relevant person’ and insert ‘the

individual, his spouse or civil partner and his dependent children’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

368


Schedule  7,  page  159,  line  36,  leave out ‘relevant persons’ and insert ‘the

individual, his spouse or civil partner and his dependent children’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

369


Schedule  7,  page  159,  line  40,  at end insert—

‘(11)
The references in subsection (9) above to the spouse or civil partner of the

individual do not include—

(a)
a person to whom the individual is not for the time being married but may

later marry, or a person of whom the individual is not for the time being

the civil partner of whom he may later be a civil partner, or

(b)
a spouse or civil partner from whom the individual is separated under an

order of court or under a separation agreement or in such circumstances

that the separation is likely to be permanent, or

(c)
the widow or widower or surviving civil partner of the individual.

(12)
In this section—

(a)
“dependent child” means a child who—

(i)
is under the age of 18 years,

(ii)
is unmarried, and

(iii)
does not have a civil partner, and

(b)
“child” includes a stepchild.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

370


Schedule  7,  page  160,  line  23,  leave out ‘all relevant persons’ and insert ‘the

individual, his spouse or civil partner and his dependent children’.

Public Bill Committee: 12th June 2008
316

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

371


Schedule  7,  page  160,  line  24,  leave out ‘a relevant person’ and insert ‘the

individual, his spouse or civil partner and his dependent children’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

372


Schedule  7,  page  160,  line  26,  leave out ‘relevant persons’ and insert ‘the

individual, his spouse or civil partner and his dependent children’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

373


Schedule  7,  page  160,  line  28,  at end insert—

‘(6A)
The references in subsection (6) above to the spouse or civil partner of the

individual do not include—

(a)
a person to whom the individual is not for the time being married but may

later marry, or a person of whom the individual is not for the time being

the civil partner but of whom he may later be a civil partner, or

(b)
a spouse or civil partner from whom the individual is separated under an

order of a court or under a separation agreement or in such circumstances

that the separation is likely to be permanent, or

(c)
the widow or widower or surviving civil partner of the individual.

(6B)
In this section—

(a)
“dependent child” means a child who—

(i)
is under the age of 18 years,

(ii)
is unmarried, and

(iii)
does not have a civil partner, and

(b)
“child” includes a stepchild.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

374


Schedule  7,  page  162,  line  42,  leave out from beginning to end of line 7 on page

163 and insert—

‘(4)
The kinds of income and capital are—

(a)
income and gains subject to a UK tax,

(b)
employment income subject to a foreign tax,

(c)
relevant foreign income subject to a foreign tax,

(d)
foreign chargeable gains subject to a foreign tax,

(e)
relevant foreign earnings (other than income within paragraph (b)),

Public Bill Committee: 12th June 2008
317

Finance Bill, continued

(f)
foreign specific employment income (other than income within

paragraph (b)),

(g)
relevant foreign income (other than income within paragraph (c)),

(h)
foreign chargeable gains (other than chargeable gains within paragraph

(d)), and

(i)
income or capital not within another paragraph of this subsection.

(4A)
Subsection (4) is subject to subsection (4B).

(4B)
Where an individual has insufficient information to be able to determine whether

foreign income or foreign gains has suffered foreign tax he shall not be deemed

to have made an incorrect return if he treats the funds as relating to the appropriate

income or gains paragraph with respect to which foreign tax has not been

suffered.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

375


Schedule  7,  page  164,  line  2,  at end insert—

‘(3)
This section shall not have effect with respect to gains accruing to an individual

on the disposal of an asset if the disposal took place prior to 6 April 2008.’.

Jane Kennedy

354

Schedule  7,  page  164,  line  12,  at end insert—

‘809SA
  Consideration for certain services

(1)
This section applies to income or chargeable gains if—

(a)
the income or gains would (but for subsection (2)) be taken to

be remitted to the United Kingdom because conditions A and

B in section 809K are met,

(b)
condition A in section 809K is met because a service is

provided in the United Kingdom (“the relevant UK service”),

and

(c)
condition B in section 809K is met because section

809K(3)(a) or (b) applies to the consideration for the relevant

UK service (“the relevant consideration”).

(2)
The income or chargeable gains are to be treated as not remitted to the

United Kingdom if the following conditions are met.

(3)
Condition A is that the relevant UK service relates wholly or mainly

to property situated outside the United Kingdom.

(4)
Condition B is that the whole of the relevant consideration is given by

way of one or more payments to one or more bank accounts held

outside the United Kingdom by or on behalf of the person who

provides the relevant UK service.

(5)
Sections 275 to 275C of TCGA 1992 (location of assets) apply for the

purposes of subsection (3) as they apply for the purposes of TCGA

1992.’.

Public Bill Committee: 12th June 2008
318

Finance Bill, continued

Jane Kennedy

355

Schedule  7,  page  164,  line  19,  leave out from ‘rule’ to end of line 28 and insert

‘(see sections 809V and 809VA).

(4)
Clothing, footwear, jewellery and watches that derive from relevant

foreign income are exempt property if they meet the personal use rule

(see section 809VB).

(5)
Property of any description that derives from relevant foreign income

is exempt property if—

(a)
the property meets the repair rule (see section 809VC),

(b)
the property meets the temporary importation rule (see section

809W), or

(c)
the notional remitted amount (see section 809X) is less than

£1,000.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

376


Schedule  7,  page  164,  line  21,  leave out ‘that derive from relevant foreign income’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

377


Schedule  7,  page  164,  line  24,  leave out ‘that derives from relevant foreign

income’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

378


Schedule  7,  page  165,  line  4,  at end insert—

‘(6)
For the purpose of subsection (4) property is to be treated as not ceasing to meet

a relevant rule if it is lost, stolen, destroyed, scrapped or otherwise ceases to exist

or it is disposed of by way of gift other than to a relevant person; and property

gifted to a relevant person that is exempt property in the hands of that person

immediately after the gift shall not be treated as ceasing to be exempt property

solely by reason of that person subsequently ceasing to be a relevant person.

(7)
If exempt property ceases to meet one of the relevant rules because it is sold to

someone other than a connected person, the amount chargeable to tax shall be the

sale proceeds received and not the amount referred to in section 809O above.’.

Jane Kennedy

356

Schedule  7,  page  165,  line  5,  leave out from beginning to end of line 11 on page

167 and insert—

‘809V
Public access rule: general

(1)
Property meets the public access rule if conditions A to D are met.

Public Bill Committee: 12th June 2008
319

Finance Bill, continued

(2)
Condition A is that the property is—

(a)
a work of art,

(b)
a collectors’ item, or

(c)
an antique,


within the meaning of Council Directive 2006/112/EC (see, in

particular, Annex IX to that Directive).

(3)
Condition B is that—

(a)
the property is available for public access at an approved

establishment,

(b)
the property is to be available for public access at an approved

establishment and, in connection with its being so available, is

in transit to, or in storage at, public access rule premises, or

(c)
the property has been available for public access at an

approved establishment and, in connection with its having

been so available, is in transit from, or in storage at, public

access rule premises.

(4)
Property is “available for public access” at an approved establishment

if the property is—

(a)
on public display at the establishment,

(b)
held by the establishment and made available to the public on

request for viewing or for educational use, or

(c)
held by the establishment for public exhibition in connection

with the sale of the property.

(5)
An “approved establishment” is—

(a)
an approved museum, gallery or other institution within the

meaning of Group 9 of Schedule 2 to the Value Added Tax

(Imported Goods) Relief Order 1984, or

(b)
any other person, premises or institution designated (or of a

description designated) by the Commissioners.

(6)
“Public access rule premises” are—

(a)
premises in the United Kingdom at which the property is to

be, or has been, available for public access, or

(b)
other commercial premises in the United Kingdom used by

the approved establishment for the storage of property in

advance of its being, or after its having been, available for

public access at the approved establishment.

(7)
Condition C is that, during the relevant period, the property meets

condition B for no more than—

(a)
two years, or

(b)
such longer period as the Commissioners may specify.

(8)
“The relevant period” means the period—

(a)
beginning with the importation of the property, and

(b)
ending when it ceases to be in the United Kingdom after that

importation.

(9)
“Importation” means the property being brought to, or received or

used in, the United Kingdom in circumstances in which section

809K(2)(a) applies.