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Finance Bill, continued

(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

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;

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Finance Bill, continued

(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.’.

Order of the House [21st APRIL 2008]

That the following provisions shall apply to the Finance Bill:

1.	Clauses 3, 5, 6, 15, 21, 49, 90 and 117 and new Clauses amending section 74

of the Finance Act 2003 be committed to a Committee of the whole House;

2.	the remainder of the Bill be committed to a Public Bill Committee; and

3.	when the provisions of the Bill considered by the Committee of the whole

House and the Public Bill Committee have been reported to the House, the

Bill be proceeded with as if it had been reported as a whole to the House from

the Public Bill Committee.

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Revised 6 May 2008