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367

 

House of Commons

 
 

Tuesday 17th June 2008

 

Public Bill Committee

 

New Amendments handed in are marked thus Parliamentary Star

 

Other Amendments not tabled within the required notice period are marked thus Parliamentary Star - white

 

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].

 


 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

358

 

Clause  148,  page  90,  line  25,  leave out ‘paragraph (a)’ and insert ‘paragraphs (a)

 

and (b)’.

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

359

 

Clause  148,  page  90,  line  41,  leave out ‘(6)(b),’.

 

Jane Kennedy

 

309

 

Clause  148,  page  90,  line  41,  leave out ‘and (7B)’ and insert ‘, (7B) and (13)’.

 

Jane Kennedy

 

310

 

Clause  148,  page  90,  line  42,  leave out first ‘a right to’.


 
 

Public Bill Committee: 17th June 2008                  

368

 

Finance Bill, continued

 
 

Jane Kennedy

 

311

 

Clause  148,  page  90,  line  42,  leave out second ‘a right to’.

 

Jane Kennedy

 

312

 

Clause  148,  page  90,  line  44,  at end insert—

 

‘(c)    

subsections (7B) and (13) also have effect as if—

 

(i)    

references to a capital market investment were references to the

 

loan capital falling within paragraph (d) of section 78(7), and

 

(ii)    

references to a capital market arrangement were to the

 

arrangements under which that loan capital is raised.’.

 


 

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.’.

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

360

 

Clause  22,  page  12,  line  40,  at end add—

 

‘(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.’.

 


 

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

 

(b)    

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

 

immediately preceding that year.


 
 

Public Bill Committee: 17th June 2008                  

369

 

Finance Bill, continued

 
 

(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: 17th June 2008                  

370

 

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: 17th June 2008                  

371

 

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.’.


 
 

Public Bill Committee: 17th June 2008                  

372

 

Finance Bill, continued

 
 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

365

 

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

 

‘(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: 17th June 2008                  

373

 

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’.


 
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