House of Commons Amendments

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

425

House of Commons

Thursday 19th June 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

(Except Clauses 3, 5, 6, 15, 21, 49, 90 and 117

and new Clauses amending section 74 of the Finance Act 2003)

Note

The Amendments have been arranged in accordance with the Order of the

Committee [6th May].

Clause 22.

Another Amendment (No. 360) proposed, in page 12, line 40, at the end to add the

words—

‘(9)
The Treasury shall lay before the House of Commons by 31 December 2008 a

report setting out the basis of a statutory residence rule to replace the existing

rules.’.—(Mr Mark Hoban.)

Question proposed, That the Amendment be made.

Jane Kennedy

339

Schedule  7,  page  151,  leave out lines 20 to 28 and insert—

‘(3)
Sections 42 and 43 of TMA 1970 (procedure and time limit for making

claims), except section 42(1A) of that Act, apply in relation to a claim

under this section as they apply in relation to a claim for relief.

809BA
Claim for remittance basis by long-term UK resident: nomination of

foreign income and gains to which section 809G(2) is to apply

(1)
This section applies to an individual for a tax year if the individual—

(a)
is aged 18 or over in that year, and

Public Bill Committee: 19th June 2008
426

Finance Bill, continued

(b)
has been UK resident in at least 7 of the 9 tax years

immediately preceding that year.

(2)
A claim under section 809B by the individual for that year must

contain a nomination of the income or chargeable gains of the

individual for that year to which section 809G(2) is to apply.

(3)
The income or chargeable gains nominated must be part (or all) of the

individual’s foreign income and gains for that year.

(4)
The income and chargeable gains nominated must be such that the

relevant tax increase does not exceed £30,000.

(5)
“The relevant tax increase” is—

(a)
the total amount of income tax and capital gains tax payable

by the individual for that year, minus

(b)
the total amount of income tax and capital gains tax that would

be payable by the individual for that year apart from section

809G(2).

(6)
See section 809Z for the meaning of an individual’s foreign income

and gains for a tax year.’.

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’.

Jane Kennedy

340

Schedule  7,  page  152,  leave out lines 1 and 2.

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.’.

Public Bill Committee: 19th June 2008
427

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

361

Schedule  7,  page  152,  line  8,  at end insert ‘or such income and gains do not exceed

the amount referred to in section 809C(1)(c),’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

362

Schedule  7,  page  153,  leave out lines 1 to 12.

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)’.

Jane Kennedy

341

Schedule  7,  page  153,  line  25,  leave out ‘809B(3)’ and insert ‘809BA’.

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—

Public Bill Committee: 19th June 2008
428

Finance Bill, continued

(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’.

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)’.

Jane Kennedy

482

Schedule  7,  page  157,  line  39,  at end insert—

‘(9A)
The cases in which income or chargeable gains are used in respect of

a debt include cases where income or chargeable gains are used to pay

interest on the debt.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

365

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

Public Bill Committee: 19th June 2008
429

Finance Bill, continued

‘(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.’.

Jane Kennedy

483

Schedule  7,  page  158,  line  12,  leave out ‘settlor or’.

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’.

Public Bill Committee: 19th June 2008
430

Finance Bill, continued

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’.

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’.

Public Bill Committee: 19th June 2008
431

Finance Bill, continued

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)),

(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.’.

Jane Kennedy

463

Schedule  7,  page  163,  leave out lines 20 to 23 and insert—