House of Commons Amendments

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

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


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


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.’.