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Public Bill Committee: 3rd June 2008                  

194

 

Finance Bill, continued

 
 

  “(5)  

Where HMRC have specified a portion of a penalty in a notice

 

given to an officer under sub-paragraph (1)—

 

(a)    

paragraph 11 applies to the specified portion as to a

 

penalty,

 

(b)    

the officer must pay the specified portion before the end of

 

the period of 30 days beginning with the day on which the

 

notice is given,

 

(c)    

paragraph 13(2), (3) and (5) apply as if the notice were an

 

assessment of a penalty,

 

(d)    

a further notice may be given in respect of a portion of any

 

additional amount assessed in a supplementary assessment

 

in respect of the penalty under paragraph 13(6),

 

(e)    

paragraphs 15(1) and (2), 16 and 17(1) to (3) and (6) apply

 

as if HMRC had decided that a penalty of the amount of the

 

specified portion is payable by the officer, and

 

(f)    

paragraph 21 applies as if the officer were liable to a

 

penalty.”’.

 


 

Mr Jeremy Browne

 

Dr Vincent Cable

 

Mr Colin Breed

 

Dr John Pugh

 

196

 

Schedule  41,  page  406,  line  13,  leave out ‘decision’ and insert ‘notice’.

 

Jane Kennedy

 

242

 

Parliamentary Star    

Schedule  41,  page  407,  line  33,  leave out from ‘company’ to ‘may’ in line 37 and

 

insert ‘, the officer is liable to pay such portion of the penalty (which may be 100%) as

 

HMRC’.

 

Jane Kennedy

 

243

 

Parliamentary Star    

Schedule  41,  page  408,  line  5,  leave out sub-paragraph (5) and insert—

 

    ‘(5)  

Where HMRC have specified a portion of a penalty in a notice given to an

 

officer under sub-paragraph (1)—

 

(a)    

paragraph 14 applies to the specified portion as to a penalty,

 

(b)    

the officer must pay the specified portion before the end of the period

 

of 30 days beginning with the day on which the notice is given,

 

(c)    

paragraph 16(3) to (5) and (7) apply as if the notice were an

 

assessment of a penalty,

 

(d)    

a further notice may be given in respect of a portion of any additional

 

amount assessed in a supplementary assessment in respect of the

 

penalty under paragraph 16(6),

 

(e)    

paragraphs 17 to 19 apply as if HMRC had decided that a penalty of

 

the amount of the specified portion is payable by the officer, and


 
 

Public Bill Committee: 3rd June 2008                  

195

 

Finance Bill, continued

 
 

(f)    

paragraph 23 applies as if the officer were liable to a penalty.’.

 


 

Mr Jeremy Browne

 

Dr Vincent Cable

 

Mr Colin Breed

 

Dr John Pugh

 

197

 

Clause  125,  page  77,  line  36,  after ‘Commissioners’, insert ‘or the person

 

concerned’.

 

Mr Jeremy Browne

 

Dr Vincent Cable

 

Mr Colin Breed

 

Dr John Pugh

 

198

 

Clause  125,  page  77,  line  36,  at end insert—

 

‘(2A)    

The person concerned may appeal to the First-tier Tribunal against a decision by

 

the Commissioners under subsection (2) if that decision can be reasonably shown

 

to have had a significant adverse effect on the financial stability of the person

 

concerned.’.

 


 

Mr Jeremy Browne

 

Dr Vincent Cable

 

Mr Colin Breed

 

Dr John Pugh

 

199

 

Clause  130,  page  83,  line  1,  leave out from ‘section’ to end of line 2 and add ‘may

 

not be made unless a draft of the regulations has been laid before, and approved by a

 

resolution of, the House of Commons.’.

 


 

Mr Jeremy Browne

 

Dr Vincent Cable

 

Mr Colin Breed

 

Dr John Pugh

 

47

 

Clause  22,  page  12,  line  4,  at end insert—

 

‘(1C)    

Subsection (1) does not apply to an individual who is enrolled in a higher

 

education institution in the United Kingdom.’.

 



 
 

Public Bill Committee: 3rd June 2008                  

196

 

Finance Bill, continued

 
 

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’.

 

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.’.

 

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)’.

 

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.’.

 



 
 

Public Bill Committee: 3rd June 2008                  

197

 

Finance Bill, continued

 
 

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

 

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”.


 
 

Public Bill Committee: 3rd June 2008                  

198

 

Finance Bill, continued

 
 

(10)    

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

 

incurred after 30 June 2008.’.

 


 

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.

 

(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.’.

 



 
 

Public Bill Committee: 3rd June 2008                  

199

 

Finance Bill, continued

 
 

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.”’.

 


 

Fuel duty regulator

 

Mr Stewart Hosie

 

NC4

 

To move the following Clause:—

 

‘In the HODA 1979 (c. 5) 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


 
 

Public Bill Committee: 3rd June 2008                  

200

 

Finance Bill, continued

 
 

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

 

(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.’.


 
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