House of Commons Amendments

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Notices of Amendments: 12th June 2008
358

Finance Bill, continued

(ii)
voucher, stamp or similar token or document which is

capable of being exchanged for money, goods or

services.’.

Jane Kennedy

491

Schedule  7,  page  186,  line  25,  at end insert—

    ‘(6)
In this paragraph “property” does not include money.

      (7)
“Money” has the same meaning as in section 809U of ITA 2007.’.

Jane Kennedy

492

Schedule  7,  page  187,  line  17,  at end insert ‘or

(d)
the interest ceases to be owned by the individual,’.

Jane Kennedy

493

Schedule  7,  page  187,  line  19,  at end insert—

  ‘(3A)
If—

(a)
before 12 March 2008, money was lent to the individual outside the

United Kingdom (“the subsequent loan”),

(b)
the subsequent loan was made for the purpose of enabling the

individual to repay—

(i)
the loan mentioned in sub-paragraph (1), or

(ii)
another loan in relation to which sub-paragraphs (2) and (3)

apply (by virtue of this sub-paragraph),


and for no other purpose, and

(c)
before 6 April 2008—

(i)
the money was received in the United Kingdom,

(ii)
the individual used the money to repay the loan referred to in

paragraph (b)(i) or (ii), and

(iii)
repayment of the subsequent loan was secured on the interest

referred to in sub-paragraph (1)(c),


sub-paragraphs (2) and (3) apply in relation to the subsequent loan (and for this

purpose references there to the debt or the loan are to be read as references to

the subsequent loan).’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

494

Schedule  7,  page  189,  line  36,  at end insert—

    ‘(5)
In computing gains to which this section applies, those gains shall, if the

company so elects, be calculated by reference to the value of the asset

concerned at 6 April 2008.

      (6)
An election under subsection (5) is irrevocable and shall be made within two

years of the end of the first accounting period ending after 5 April 2008.

      (7)
An election under subsection (5) shall be made in the way and form specified

by the Commissioners for Her Majesty’s Revenue and Customs.’.

Notices of Amendments: 12th June 2008
359

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

495

Schedule  7,  page  202,  line  30,  after ‘809Q’, insert ‘and 809S’.

Vehicle Mileage Allowance

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

NC9

To move the following Clause:—

‘The Treasury shall publish annually alongside the Pre-Budget report an estimate

of—

(a)
the average cost of operating a motor car (including depreciation and

financing costs) per mile for a vehicle driving 12,000 miles per year for

vehicles in Vehicle Excise Duty bands, B, C, D and E, and

(b)
the annual costs to the Exchequer of raising the statutory mileage rate to

the amount per mile which is equal to the arithmetic average of the

estimates provided under paragraph (a).’.

VAT on beverages

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

NC10

To move the following Clause:—

‘The Treasury shall, not later than six months after the passing of this Act, prepare

and lay before the House of Commons a report setting out the estimated costs to

the Exchequer, and the estimated health benefits to the population of the United

Kingdom, of reducing the amount of VAT payable on beverages containing fruit

juice to the lowest level permitted.’.

Fiscal impact of water charging in Northern Ireland

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

NC11

To move the following Clause:—

‘The Treasury shall, before the publication of the 2008 Pre-Budget Report,

prepare and lay before the House of Commons a report setting out its estimate of

the revenue gain for the Exchequer from the introduction of water charging in

Northern Ireland in each year to 2015.’.

Notices of Amendments: 12th June 2008
360

Finance Bill, continued

Gift aid averaging scheme

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

NC12

To move the following Clause:—

‘The Treasury shall, before the publication of the 2008 Pre-Budget Report,

prepare and lay before the House of Commons a feasibility study, including an

assessment of the cost and revenue implications, of implementing a system of

automatic refund gift aid contributions using an averaging process.’.

Report on impact of Finance Bill on older people

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

NC13

To move the following Clause:—

‘It shall be the duty of the Treasury to prepare and lay before the House of

Commons, at the time of publication of each Finance Bill, a report on the impact

on individuals aged 60 and over of the measures contained in that Finance Bill.’.

Report on impact of Finance Bill on people on low incomes

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

NC14

To move the following Clause:—

‘It shall be the duty of the Treasury to prepare and lay before the House of

Commons, at the time of publication of each Finance Bill, a report on the impact

on individuals in the lowest income decile of the population of the measures

contained in that Finance Bill.’.

Report on exemption from taxation of foreign profits

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

NC15

To move the following Clause:—

‘(1)
The Treasury shall, before the publication of the 2008 Pre-Budget report, prepare

and lay before the House of Commons a report on the effects of introducing a

measure to exempt from corporation tax all dividends from non-portfolio

investments paid to UK resident companies.

Notices of Amendments: 12th June 2008
361

Finance Bill, continued

(2)
For the purposes of this section, a non-portfolio investment is one where the UK

company holds at least 10 per cent. of the ordinary share capital of the investee

company.

(3)
The report under subsection (1) shall include consideration of the effect of such a

measure on—

(a)
the public finances;

(b)
UK companies;

(c)
the competitiveness of the UK economy;

(d)
the attractiveness of the UK as a location for multinational headquarters;

(e)
the impact on repartriation of foreign profits back to the UK and the

likely effects on investment; and

(f)
the extent to which special measures would be needed to protect against

diversion of profits through countries with a low rate of corporation tax.’.

International Accountancy Standards

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

NC16

To move the following Clause:—

‘The Treasury shall lay before Parliament not later than 31st October 2008 a

report on progress towards the introduction of International Accountancy

Standards for all government departments and public sector entities.’.

PAYE reporting

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

NC17

To move the following Clause:—

‘The Treasury shall commission and lay before the House of Commons, within

12 months of the passing of this Act, an independent report into the feasibility and

estimated cost of introducing a system of monthly reporting to HM Revenue and

Customs of payments and deductions through the Pay as You Earn system.’.

Harmonisation of income tax and national insurance contributions

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

NC18

To move the following Clause:—

‘(1)
If for any tax year—

Notices of Amendments: 12th June 2008
362

Finance Bill, continued

(a)
the personal allowance under section 35 of the Income Tax Act 2007 (c.

3) is set at an amount which is not equal to the amount of the primary

threshold under section 5 of the Social Security Contributions and

Benefits Act 1992 (c. 4), or

(b)
the sum of the personal allowance and the basic rate limit under sections

35 and 10(2) of the Income Tax Act 2007 (c. 3) is set at an amount which

is not equal to the upper earnings limit under section 5 of the Social

Security Contributions and Benefits Act 1992 (c. 4),


the Treasury shall within one month of the passing of the Act which sets the

personal allowance or basic rate limit lay before Parliament a report explaining

the matters set out in subsection (2).

(2)
Those matters are—

(a)
why the amounts have diverged for the year, and the expected future path

of the amounts in relation to each other; and

(b)
the estimated cost to—

(i)
employers, and

(ii)
HMRC,


of operating a system of divergent thresholds and the savings that are

expected to result from a convergence of those thresholds.’.

Retirement Income Fund

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

NC19

To move the following Clause:—

‘(1)
The Finance Act 2004 is amended as follows.

(2)
In section 164 at end add “and

(g)
payments into a Retirement Income Fund.”.

(3)
In section 165 there is inserted in Pension rule 6 after paragraph (c) “or

(d)
a withdrawal from a Retirement Income Fund.”.

(4)
In section 165 after Pension rule 7 there is inserted—

“Pension rule 8

Before a member makes a withdrawal from a Retirement Income Fund, he must

buy a relevant linked annuity which is linked to the retail prices index, which pays

an income equivalent to the Minimum Income Requirement.”.

(5)
In Schedule 28 after paragraph 16C there is inserted—

“Retirement Income Fund

16D(1)
Subject to sub-paragraphs (2) and (3) of this paragraph, a Retirement

Income Fund is a vehicle for the reinvestment of savings in retirement,

which—

(a)
has been established by a person designated by subsection (1)

of section 154; and

(b)
is a vehicle the investments in which are—

(i)
investments of a kind described in the Insurance

Companies Regulations 1994, Schedule X, Part 1, or

Notices of Amendments: 12th June 2008
363

Finance Bill, continued

(ii)
approved by HM Revenue and Customs.

      (2)
Funds held in the Retirement Income Fund as referred to in sub-

paragraph (1) may be withdrawn from the Retirement Income Fund by

the member as and when he elects.

      (3)
A member may not invest in a Retirement Income Fund unless the

requirements of Rule 8 of section 165 have been met.

      (4)
A Retirement Income Fund, and any income derived from it, must not

be capable of assignment or surrender by the member.

      (5)
Any withdrawal from the Fund by the member under sub-paragraph

(2) shall be assessable to tax under Schedule E (and section 203 shall

apply accordingly) and shall be treated as earned income of the

member.

Minimum Retirement Income

16E(1)
The amount of Minimum Retirement Income shall be set for each

financial year following consultation by the Chancellor of the

Exchequer by order.

      (2)
An order under this paragraph shall, in respect of each financial year

after that in which this section comes into force, be made on or before

31st January preceding the year in question.

      (3)
An order under this paragraph shall be made by statutory instrument

and shall be subject to annulment in pursuance of a resolution of either

House of Parliament.”’.

Dependant’s retirement income fund

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

NC20

To move the following Clause:—

‘(1)
The Finance Act 2004 is amended as follows.

(2)
In Schedule 28 after paragraph 22 insert—

“Dependant’s retirement income fund

22A(1)
Subject to sub-paragraphs (2) and (3) of this paragraph, a dependant’s

retirement income fund is a vehicle for the reinvestment of savings in

retirement which—

(a)
has been established by a person designated by subsection (1)

of section 154; and

(b)
is a vehicle the investments in which are—

(i)
investments of a kind described in the Insurance

Companies Regulations 1994, Schedule X, Part 1, or

(ii)
approved by HM Revenue and Customs.

Notices of Amendments: 12th June 2008
364

Finance Bill, continued

      (2)
Funds held in the retirement income fund as referred to in sub-

paragraph (1) may be withdrawn from the retirement income fund by

the members as and when he elects.

      (3)
A dependant may not invest in a dependant’s retirement income funds

unless the requirements of Rule 8 of section 165 have been met.

      (4)
A retirement income fund, and any income derived from it, must not

be capable of assignment or surrender by the member.

      (5)
Any withdrawal from the fund by the member under sub-paragraph (2)

shall be assessable to tax under Schedule E (and section 203 shall

apply accordingly) and shall be treated as earned income of the

member.”.’.

Missing trader fraud

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

NC21

To move the following Clause:—

‘HMRC shall lay a report before Parliament every three months on the measures

taken by the Government to combat missing trader intra community (MTIC)

fraud and the effects those measures are having on the VAT compliance system

generally.’.