House of Commons Amendments

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

157

House of Commons

Notices of Amendments

given on

Thursday 22nd May 2008

For other Amendment(s) see the following page(s):

Finance Bill Committee 151-156

Public Bill Committee

Finance Bill

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

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

Jane Kennedy

144

Clause  66,  page  34,  line  26,  leave out from ‘effect’ to ‘for’ in line 27 and insert ‘for

the purpose of calculating the amount of any payments to be made under section 59A of

TMA 1970 on account of liability to income tax’.

Jane Kennedy

145

Clause  78,  page  42,  line  33,  at end insert—

‘(5)
The Treasury may by order substitute for the amount for the time being specified

in subsection (3) such other amount as it thinks fit.

(6)
An order under subsection (5) may make such incidental, supplemental,

consequential and transitional provision as the Treasury thinks fit.’.

Jane Kennedy

146

Schedule  24,  page  288,  line  34,  at end insert—

‘( )
In determining whether expenditure is AIA qualifying expenditure, any effect of

section 12 on the time at which it is to be treated as incurred is to be disregarded.’.

Jane Kennedy

147

Schedule  24,  page  290,  leave out lines 15 to 17.

Jane Kennedy

148

Schedule  27,  page  322,  line  35,  at end insert—

Notices of Amendments: 22nd May 2008
158

Finance Bill, continued

‘   (1)
Sub-paragraph (2) applies if—

(a)
an initial allowance has been made under Part 3 of CAA 2001 in

respect of qualifying enterprise zone expenditure, and

(b)
an event occurs in relation to the building on which the expenditure

was incurred which, if section 307 of that Act (withdrawal of

allowance if building not industrial building when first used etc)

remained in force, would result in the allowance being withdrawn.

      (2)
Unless the event occurs more than 7 years after the end of the chargeable

period for which the allowance was made, the allowance is to be withdrawn as

if that section remained in force.’.

Jane Kennedy

149

Clause  91,  page  52,  line  24,  leave out ‘, other than any rent,’.

Jane Kennedy

150

Clause  91,  page  52,  line  25,  leave out from ‘£40,000’ to end of line 26.

Jane Kennedy

151

Clause  91,  page  52,  line  33,  after ‘consideration’, insert ‘for the assignment or

surrender’.

Jane Kennedy

152

Clause  92,  page  54,  line  42,  at end insert—

‘( )
In Schedule 9 to that Act (SDLT: right to buy etc), after paragraph 4A insert—

“Shared ownership lease: grant not linked with staircasing transactions etc

4B  (1)
For the purpose of determining the rate of tax chargeable on the grant

of a shared ownership lease of a dwelling, the grant shall be treated as

if it were not linked to—

(a)
any acquisition of an interest in the dwelling to which

paragraph 4A applies, or

(b)
a transfer of the reversion to the lessee or lessees under the

terms of the lease.

      (2)
In this paragraph “shared ownership lease” has the same meaning as

in paragraph 4A.”

( )
In that Schedule, in paragraphs 10(1) and (2) and 11(b) (shared ownership trusts),

omit “additional”.

( )
In that Schedule, insert at the end—

“Shared ownership trust: declaration not linked with staircasing transactions etc

12
For the purpose of determining the rate of tax chargeable on the

declaration of a shared ownership trust, the declaration shall be treated

as if it were not linked to—

(a)
any equity-acquisition payment under the trust or any

consequent increase in the purchaser’s beneficial interest in

the trust property, or

Notices of Amendments: 22nd May 2008
159

Finance Bill, continued

(b)
a transfer to the purchaser of an interest in the trust property

upon the termination of the trust.”’.

Jane Kennedy

153

Clause  93,  page  55,  line  32,  at end insert ‘(but see subsection (6A))’.

Jane Kennedy

154

Clause  93,  page  56,  line  3,  at end insert—

  ‘(6A)
Sub-paragraph (4) does not apply where—

(a)
there is a change in the control of the purchaser because a loan creditor

(within the meaning of section 417(7) to (9) of the Taxes Act 1988)

obtains control of, or ceases to control, the purchaser, and

(b)
the other persons who controlled the purchaser before that change

continue to do so.’.

Jane Kennedy

155

Clause  93,  page  56,  line  7,  leave out ‘4A(1)’ and insert ‘4A’.

Jane Kennedy

156

Clause  93,  page  56,  line  8,  after ‘transactions),’, insert ‘—

(a)
in sub-paragraph (1),’.

Jane Kennedy

157

Clause  93,  page  56,  line  9,  at end insert—

‘(b)
after that sub-paragraph insert—

“(1A)
Sub-paragraph (1) has effect subject to sub-paragraph (3A).”,

(c)
in sub-paragraph (3)—

(i)
for “sub-paragraph (1)(a)” substitute “this paragraph”, and

(ii)
for “this sub-paragraph” substitute “this paragraph”, and

(d)
after sub-paragraph (3) insert—

“(3A)
Sub-paragraph (1) does not apply where—

(a)
there is a change in the control of the purchaser

because a loan creditor (within the meaning of section

417(7) to (9) of the Taxes Act 1988) obtains control

of, or ceases to control, the purchaser, and

(b)
the other persons who controlled the purchaser before

that change continue to do so.”’.

Jane Kennedy

158

Clause  93,  page  56,  line  12,  leave out from ‘2008’ to end of line 19.

Notices of Amendments: 22nd May 2008
160

Finance Bill, continued

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

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.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

159

Clause  93,  page  56,  line  6,  at end insert—

Notices of Amendments: 22nd May 2008
161

Finance Bill, continued

‘(8)
The provisions of sub-paragraph (4) shall not apply unless, at the effective date

of the transaction, there are arrangements in existence by virtue of which, at that

time or some later time, a person has or could obtain, or any persons together have

or could obtain, control of the purchaser but not of the vendor.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

160

Clause  74,  page  40,  line  12,  leave out subsection (3).

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

161

Clause  74,  page  40,  line  16,  leave out subsections (5) and (6).