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320

Finance Bill, continued

(10)	Condition D is that the property attracts a relevant VAT relief (see

section 809VA).

809VA

Public access rule: relevant VAT relief

(1)	Property “attracts a relevant VAT relief” if any of conditions 1 to 4 are

met.

(2)	Condition 1 is that article 5(1) of the Value Added Tax (Imported

Goods) Relief Order 1984 applies in relation to the importation of the

property by virtue of Group 9 of Schedule 2 to that Order (importation

of works of art or collectors’ pieces by museums etc).

(3)	Condition 2 is that article 5(1) would so apply if the following

requirements were disregarded—

(a)	the requirement that the importation be from a third country,

and

(b)	the requirement that the purpose of the importation be a

purpose other than sale.

(4)	Condition 3 is that article 576(3)(a) of Commission Regulation (EEC)

No 2454/93 (relief from import duties for works of art etc imported for

the purposes of exhibition, with a view to possible sale) applies in

relation to the importation of the property.

(5)	Condition 4 is that article 576(3)(a) would so apply if the requirement

that the importation be from a third country were disregarded.

(6)	Where the property does not meet condition B in section 809V at the

time of its importation it is to be assumed for the purposes of this

section that the property was imported on the day during the relevant

period when the property first meets that condition.

(7)	“The relevant period” and “importation” have the same meaning as in

section 809V and “imported” is to be read accordingly.

809VB

Personal use rule

(1)	Clothing, footwear, jewellery or watches meet the personal use rule if

they—

(a)	are property of a relevant person, and

(b)	are for the personal use of a relevant individual.

(2)	In this section—

(a)	“relevant person” has the meaning given by section 809L, and

(b)	“relevant individual” means an individual who is a relevant

person by virtue of section 809L(2)(a), (b), (c) or (d) (the

individual with income or gains, or a husband, wife, civil

partner, child or grandchild).

809VC

Repair rule

(1)	Property meets the repair rule for the whole of the relevant period if,

during the whole of that period, the property meets the repair

conditions.

(2)	Property meets the repair rule for a part of the relevant period if—

(a)	during the whole of that part of that period, the property meets

the repair conditions, and

Public Bill Committee: 12th June 2008

321

Finance Bill, continued

(b)	during the whole of the other part of that period, or the whole

of each other part of that period, the property meets the repair

conditions or the public access rule.

(3)	Property meets the repair conditions if the property—

(a)	is under repair or restoration,

(b)	is in transit from a place outside the United Kingdom to repair

rule premises, in transit between such premises, or in storage

at such premises, in advance of repair or restoration, or

(c)	is in storage at such premises, in transit between such

premises, or in transit from such premises to a place outside

the United Kingdom, following repair or restoration.

(4)	“Repair rule premises” means—

(a)	premises in the United Kingdom that are to be used, or have

been used, for the repair or restoration referred to in

subsection (3)(b) or (c), or

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

the restorer for the storage of property in advance of, or

following, repair or restoration of property by the restorer.

(5)	“Restorer” means the person who is to carry out, or has carried out, the

repair or restoration referred to in subsection (3)(b) or (c).

(6)	Property meets the repair conditions, or the public access rule, during

the whole of a period, or the whole of part of a period, if the property

meets those conditions or that rule—

(a)	on the whole of, or on part of, the first day of that period or

part period,

(b)	on the whole of, or on part of, the last day of that period or part

period, and

(c)	on the whole of each other day of that period or part period.

(7)	“The relevant period” has the same meaning as in section 809V.

809W	Temporary importation rule

(1)	Property meets the temporary importation rule if the total number of

countable days is 275 or fewer.

(2)	A “countable day” is a day on which, or on part of which, the property

is in the United Kingdom by virtue of being brought to, or received or

used in, the United Kingdom in circumstances in which section

809K(2)(a) applies (whether the current case, or a past case, when the

property was so brought, received or used).

(3)	A day is not a countable day if, on that day or any part of that day—

(a)	the property meets the personal use rule,

(b)	the property meets the repair rule, or

(c)	the notional remitted amount in relation to the property is less

than £1,000.

(4)	A day on which, or on part of which, the property meets the public

access rule (the “relevant day”) is not a countable day if any of

conditions A to C is met.

(5)	Condition A is that the property meets the public access rule during the

whole of the period of importation in which the relevant day falls.

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Finance Bill, continued

(6)	Condition B is that—

(a)	the property does not meet the public access rule during the

whole of the period of importation in which the relevant day

falls, and

(b)	that period of importation—

(i)	begins with a period of no public access, and

(ii)	ends with a period of public access which

immediately follows that period of no public access.

(7)	Condition C is that—

(a)	the property does not meet the public access rule during the

whole of the period of importation in which the relevant day

falls, and

(b)	during the parts, or each of the parts of the period of

importation during which the property does not meet the

public access rule it meets the repair conditions.

(8)	Section 809VC(6) applies for the purposes of this section.

(9)	“Period of importation” means a period that—

(a)	begins when property is brought to, or received or used in, the

United Kingdom in circumstances in which section

809K(2)(a) applies, and

(b)	ends when the property ceases to be in the United Kingdom

after having been so brought, received or used.

(10)	“Period of no public access” means a period which is not a period of

public access and “period of public access” means a period during the

whole of which property meets the public access rule.

809X	Notional remitted amount’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

379

Schedule  7,  page  165,  leave out lines 10 to 20 and insert ‘it is for the purpose of public

display at a museum, gallery or other premises within subsection (8) below.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

380

Schedule  7,  page  166,  line  1,  leave out from ‘is’ to end of line 4 and insert ‘any

museum, gallery or other premises at which it is usual to display items for access to the

public and where the item will be on display to the public throughout the normal opening

hours of that place or where throughout such times it will be available for public access.’.

Jane Kennedy

316

Schedule  7,  page  168,  line  10,  leave out from ‘is’ to end of line and insert ‘such of

the individual’s specific employment income for that year as is’.

Public Bill Committee: 12th June 2008

323

Finance Bill, continued

Jane Kennedy

317

Schedule  7,  page  168,  leave out lines 13 to 16.

Jane Kennedy

357

Schedule  7,  page  168,  line  21,  at end insert—

‘(8)	“The Commissioners” means the Commissioners for Her Majesty’s Revenue and

Customs.”’.

Jane Kennedy

318

Schedule  7,  page  170,  line  31,  leave out sub-paragraph (3).

Jane Kennedy

319

Schedule  7,  page  171,  line  40,  at end insert—

‘(2A)

The reference in subsection (2) to an amount that counts as

employment income under any of the provisions mentioned there does

not include an amount which counts as employment income by virtue

of any provision of Chapter 3A or 3B of Part 7.’.

Jane Kennedy

320

Schedule  7,  page  172,  line  8,  leave out ‘section 41C’ and insert ‘sections 41C to

41E’.

Jane Kennedy

321

Schedule  7,  page  172,  line  13,  leave out ‘earnings are’ and insert ‘foreign securities

income is’.

Jane Kennedy

322

Schedule  7,  page  172,  line  16,  leave out from beginning to ‘treat’ in line 25.

Jane Kennedy

323

Schedule  7,  page  172,  line  26,  at end insert—

‘(7A)

But where—

(a)	the chargeable event is the disposal of the relevant securities

or the assignment or release of the relevant securities option,

and

(b)	the individual receives consideration for the disposal,

assignment or release of an amount equal to or exceeding the

market value of the relevant securities or securities option,

for the purposes of those sections treat the consideration (and not the

relevant securities or securities option) as deriving from the foreign

securities income.’.

Public Bill Committee: 12th June 2008

324

Finance Bill, continued

Jane Kennedy

324

Schedule  7,  page  173,  line  2,  leave out ‘an employment-related’ and insert ‘a’.

Jane Kennedy

325

Schedule  7,  page  173,  line  6,  leave out from ‘with’ to end of line.

Jane Kennedy

326

Schedule  7,  page  173,  line  8,  leave out from ‘otherwise,’ to end of line 10 and

insert ‘the relevant period is—

(i)	the tax year in which the notional loan (within the

meaning of Chapter 3C) is treated as made, or

(ii)	if the chargeable event occurs in that year, the period

beginning at the beginning of that year and ending

with the day of that event.’.

Jane Kennedy

327

Schedule  7,  page  173,  line  16,  leave out ‘such period as is just and reasonable’ and

insert ‘the tax year in which the chargeable event occurs’.

Jane Kennedy

328

Schedule  7,  page  173,  leave out line 25 and insert ‘For the purposes of this section an

option “vests”’.

Jane Kennedy

331

Schedule  7,  page  174,  line  21,  at end insert—

‘(8)	This section is subject to section 41E (foreign securities income: just

and reasonable apportionment).’.

Jane Kennedy

329

Schedule  7,  page  174,  line  33,  leave out ‘earnings’ and insert ‘employment

income’.

Jane Kennedy

330

Schedule  7,  page  174,  line  35,  leave out ‘those earnings that are’ and insert ‘that

income that is’.

Jane Kennedy

332

Schedule  7,  page  174,  line  44,  at end insert—

‘41E	Foreign securities income: just and reasonable apportionment

(1)	This section applies if the proportion of the securities income that

would otherwise be regarded as “foreign” is not, having regard to all

the circumstances, one that is just and reasonable.

Public Bill Committee: 12th June 2008

325

Finance Bill, continued

(2)	The amount of the securities income that is “foreign” is such amount

as is just and reasonable (rather than the amount calculated in

accordance with section 41C).’.

Jane Kennedy

333

Schedule  7,  page  176,  line  19,  at end insert—

‘31A	In section 446N (securities subject to restriction during relevant period), after

subsection (6) insert—

“(7)	If any of the employment income arising under section 426 by virtue

of the chargeable event is foreign securities income within the

meaning of section 41C, reduce the taxable amount mentioned in

subsection (5) by the amount of the foreign securities income.

(8)	If any of the employment income that would have arisen (if the non-

commercial interests mentioned in subsection (6) had been

disregarded) under section 426 by virtue of the chargeable event

would have been foreign securities income (within that meaning),

reduce the taxable amount mentioned in subsection (6) by the amount

of the foreign securities income.”’.

Jane Kennedy

334

Schedule  7,  page  176,  line  31,  at end insert—

‘34A	In section 698 (PAYE: special charges on employment-related securities),

after subsection (7) insert—

“(8)	This section is subject to section 700A (employment-related securities

etc: remittance basis).”

34B	In section 700 (PAYE: gains from securities options), after subsection (6)

insert—

“(7)	This section is subject to section 700A (employment-related securities

etc: remittance basis).”

34C	After that section insert—

“700A

Employment-related securities etc: remittance basis

(1)	This section applies if—

(a)	section 698 or 700 applies, and

(b)	part or all of the amount that counts as employment income is

foreign securities income or is likely to be foreign securities

income.

(2)	The amount of the payment treated under section 696 as made is

limited to—

(a)	the amount that, on the basis of the best estimate that can

reasonably be made, is likely to count as employment income,

minus

(b)	the amount that, on the basis of such an estimate, is likely to

be foreign securities income.

(3)	References in this section to “foreign securities income” are to income

that is foreign securities income for the purposes of section 41A.”’.

Public Bill Committee: 12th June 2008

326

Finance Bill, continued

Jane Kennedy

271

Schedule  7,  page  176,  line  40,  leave out ‘8(2)’ and insert ‘8’.

Jane Kennedy

272

Schedule  7,  page  176,  line  41,  leave out from ‘plan),’ to end of line 42 and insert

‘for sub-paragraph (2) substitute—

“(2)	An employee is a UK resident taxpayer if—

(a)	the employee’s earnings from the employment by reference

to which the employee meets the employment requirement

are (or would be if there were any) general earnings to

which section 15 applies (earnings for year when employee

UK resident), and

(b)	those general earnings are (or would be if there were any)

earnings for a tax year in which the employee is ordinarily

resident in the United Kingdom.”’.

Jane Kennedy

273

Schedule  7,  page  176,  line  43,  leave out ‘6(2)(c)’ and insert ‘6(2)’.

Jane Kennedy

274

Schedule  7,  page  176,  line  44,  leave out from ‘scheme),’ to end of line 45 and insert

‘for paragraph (c) substitute—

“(c)	E’s earnings from the office or employment within

paragraph (a) are (or would be if there were any) general

earnings to which section 15 applies (earnings for year

when employee UK resident),

(ca)	those general earnings are (or would be if there were any)

earnings for a tax year in which E is ordinarily resident in

the United Kingdom, and”.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

381

Schedule  7,  page  178,  line  2,  at end insert ‘where the source ceased after 5 April

2007’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

382

Schedule  7,  page  178,  leave out lines 40 to 45 and insert—

‘(1)	Deductions are allowed from the income mentioned in section 832(2) where—

(a)	the income is from a trade, profession or vocation carried on outside the

United Kingdom; and

(b)	the income is overseas property income.

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Revised 12 June 2008