House of Commons Amendments

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Public Bill Committee Proceedings: 19th June 2008
125

Finance Bill, continued

Abandonment expenditure: deductions from ring fence income

Jane Kennedy

Added  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”.

(10)
The amendments made by this section have effect in relation to expenditure

incurred after 30 June 2008.’.

Qualifying expenditure: R&D relief and vaccine research relief

Jane Kennedy

Added  NC8

To move the following Clause:—

‘(1)
Paragraph 5 of Schedule 20 to FA 2000 (R&D tax relief: staffing costs) is

amended as follows.

(2)
In sub-paragraph (1)(b), after “company;” insert—

“(ba)
the compulsory contributions paid by the company in respect

of benefits for directors or employees of the company under

the social security legislation of an EEA State (other than the

United Kingdom) or Switzerland;”.

(3)
Before sub-paragraph (1A) insert—

“(1ZB)
In sub-paragraph (1)(ba) “social security legislation” means

legislation relating to any of the branches of social security listed in

Article 3(1) of Regulation (EC) No 883/2004 of the European

Parliament and of the Council of 29 April 2004 on the co-ordination

of social security systems (as amended from time to time).”

Public Bill Committee Proceedings: 19th June 2008
126

Finance Bill, continued

(4)
Schedule 13 to FA 2002 (vaccine research relief) is amended as follows.

(5)
In paragraph 2 (qualifying expenditure)—

(a)
in sub-paragraph (1)(a), at the end insert “or”,

(b)
omit sub-paragraph (1)(c) (and the “or” before it), and

(c)
omit sub-paragraph (4).

(6)
In paragraph 6 (qualifying expenditure on sub-contracted research and

development), omit—

(a)
in sub-paragraph (1), the second sentence, and

(b)
sub-paragraph (3) (expenditure on research sub-contracted to a charity, a

university or a scientific research organisation).

(7)
Omit paragraph 12 (qualifying expenditure on contributions to independent

research and development).

(8)
Omit paragraph 25 (refunds of qualifying expenditure on contributions to

independent research and development).

(9)
Accordingly, in paragraph 3 of Schedule 8 to this Act (changes to rates of vaccine

research relief), omit sub-paragraphs (2)(e) and (3)(d).

(10)
The amendments made by this section have effect in relation to expenditure

incurred on or after such day as the Treasury may by order appoint.

(11)
Paragraph 10(4) of Schedule 13 to FA 2002 (time limit for giving notice of

election for connected persons treatment) does not apply to a notice of an election

under that paragraph in relation to sub-contractor payments if—

(a)
the sub-contractor falls within paragraph 6(3) of that Schedule (repealed

by this section) (charity, university or scientific research organisation),

and

(b)
the notice is given before the end of the period of 12 months beginning

with the day appointed under subsection (10).’.

Small business rates relief

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

John Thurso

Not selected  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.’.

Public Bill Committee Proceedings: 19th June 2008
127

Finance Bill, continued

Overpayment of tax credits

Mr Simon Hughes

Mr Jeremy Browne

Not selected  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.’.

Exemption for bingo

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

John Thurso

Not selected  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

Not called  NC4

To move the following Clause:—

‘In HODA 1979 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.

Public Bill Committee Proceedings: 19th June 2008
128

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

Not called  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;

Public Bill Committee Proceedings: 19th June 2008
129

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.’.

VAT on beverages

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Withdrawn  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

Not selected  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.’.

Public Bill Committee Proceedings: 19th June 2008
130

Finance Bill, continued

Report on impact of Finance Bill on older people

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Withdrawn  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

Not called  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

Withdrawn  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.

(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;

Public Bill Committee Proceedings: 19th June 2008
131

Finance Bill, continued

(c)
the competitiveness of the UK economy;

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

(e)
the impact on repatriation 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

Not selected  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

Withdrawn  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

Not moved  NC18

To move the following Clause:—