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Public Bill Committee Proceedings: 19th June 2008          

132

 

Finance Bill, continued

 
 

‘(1)    

If for any tax year—

 

(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

 

Withdrawn  NC19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—


 
 

Public Bill Committee Proceedings: 19th June 2008          

133

 

Finance Bill, continued

 
 

(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.

 

      (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

 

Not called  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—


 
 

Public Bill Committee Proceedings: 19th June 2008          

134

 

Finance Bill, continued

 
 

(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.

 

      (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

 

Withdrawn  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.’.

 


 

Gift aid averaging scheme

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

Withdrawn  NC27

 

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


 
 

Public Bill Committee Proceedings: 19th June 2008          

135

 

Finance Bill, continued

 
 

automatic refund of tax credits in respect of gift aid contributions using an

 

averaging process.’.

 


 

Mileage allowance payments

 

Mr Jeremy Browne

 

Dr Vincent Cable

 

Mr Colin Breed

 

Dr John Pugh

 

Withdrawn  NC22

 

To move the following Clause:—

 

‘(1)    

ITEPA 2003 is amended as follows.

 

(2)    

In section 229, at end insert—

 

“(5)    

Mileage allowances are to be treated as approved if they are paid—

 

(a)    

otherwise than in connection with an office or employment;

 

(b)    

to someone who is not employed by the payer or an associate of

 

the payer; and

 

(c)    

for less than 10,000 miles in any one year.”.

 

(3)    

In section 230, at end insert—

 

“(7)    

The Treasury shall publish annually a report setting out its assessment of

 

the impact of the rates in subsection (2) on the level of participation of

 

volunteers in community transport schemes.”’.

 


 

Bingo

 

Mr Jeremy Browne

 

Dr Vincent Cable

 

Mr Colin Breed

 

Dr John Pugh

 

Withdrawn  NC23

 

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 on the impact of the

 

double taxation of bingo on—

 

(a)    

the competitiveness of licensed bingo clubs, and

 

(b)    

the level of social access of individuals aged over 65.’.

 



 
 

Public Bill Committee Proceedings: 19th June 2008          

136

 

Finance Bill, continued

 
 

Vehicle mileage costs

 

Mr Philip Hammond

 

Mr Mark Hoban

 

Mr David Gauke

 

Justine Greening

 

Not moved  NC24

 

To move the following Clause:—

 

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

 

of the average cost of operating a motor vehicle (including associated running

 

costs and depreciation) per mile for a vehicle driving 10,000 miles per year for—

 

(a)    

a vehicle registered before 1st March 2001 paying pre-graduated Vehicle

 

Excise Duty with an engine size 1549cc below;

 

(b)    

a vehicle registered before 1st March 2001 paying pre-graduated Vehicle

 

Excise Duty with an engine size above 1549cc; and

 

(c)    

a vehicle registered after 1st March 2001 liable to pay graduated Vehicle

 

Excise Duty in each of the VED bands A-M with effect from 1st April

 

2009.’.

 


 

Clauses 159 and 160 Agreed to.

 

Bill, as amended, to be reported.

 


 
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