House of Commons Amendments

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Public Bill Committee Proceedings: 19th June 2008
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Finance Bill, continued

(i)
begins with a period of no public access, and

(ii)
ends with a period of public access which

immediately follows that period of no public access.

(7)
Condition C is that—

(a)
the property does not meet the public access rule during the

whole of the period of importation in which the relevant day

falls, and

(b)
during the parts, or each of the parts of the period of

importation during which the property does not meet the

public access rule it meets the repair conditions.

(8)
Section 809VC(6) applies for the purposes of this section.

(9)
“Period of importation” means a period that—

(a)
begins when property is brought to, or received or used in, the

United Kingdom in circumstances in which section

809K(2)(a) applies, and

(b)
ends when the property ceases to be in the United Kingdom

after having been so brought, received or used.

(10)
“Period of no public access” means a period which is not a period of

public access and “period of public access” means a period during the

whole of which property meets the public access rule.

809X
Notional remitted amount’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  379

Schedule  7,  page  165,  leave out lines 10 to 20 and insert ‘it is for the purpose of public

display at a museum, gallery or other premises within subsection (8) below.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  380

Schedule  7,  page  166,  line  1,  leave out from ‘is’ to end of line 4 and insert ‘any

museum, gallery or other premises at which it is usual to display items for access to the

public and where the item will be on display to the public throughout the normal opening

hours of that place or where throughout such times it will be available for public access.’.

Jane Kennedy

Agreed to  490

Schedule  7,  page  167,  line  28,  at end insert—

‘( )
In subsection (2) “money” includes—

(a)
a traveller’s cheque,

(b)
a promissory note,

(c)
a bill of exchange, and

(d)
any other—

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(i)
instrument that is evidence of a debt, or

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

capable of being exchanged for money, goods or

services.’.

Jane Kennedy

Agreed to  316

Schedule  7,  page  168,  line  10,  leave out from ‘is’ to end of line and insert ‘such of

the individual’s specific employment income for that year as is’.

Jane Kennedy

Agreed to  317

Schedule  7,  page  168,  leave out lines 13 to 16.

Jane Kennedy

Agreed to  357

Schedule  7,  page  168,  line  21,  at end insert—

‘(8)
“The Commissioners” means the Commissioners for Her Majesty’s Revenue and

Customs.”’.

Jane Kennedy

Agreed to  318

Schedule  7,  page  170,  line  31,  leave out sub-paragraph (3).

Jane Kennedy

Agreed to  319

Schedule  7,  page  171,  line  40,  at end insert—

‘(2A)
The reference in subsection (2) to an amount that counts as

employment income under any of the provisions mentioned there does

not include an amount which counts as employment income by virtue

of any provision of Chapter 3A or 3B of Part 7.’.

Jane Kennedy

Agreed to  320

Schedule  7,  page  172,  line  8,  leave out ‘section 41C’ and insert ‘sections 41C to

41E’.

Jane Kennedy

Agreed to  321

Schedule  7,  page  172,  line  13,  leave out ‘earnings are’ and insert ‘foreign securities

income is’.

Jane Kennedy

Agreed to  322

Schedule  7,  page  172,  line  16,  leave out from beginning to ‘treat’ in line 25.

Jane Kennedy

Agreed to  323

Schedule  7,  page  172,  line  26,  at end insert—

‘(7A)
But where—

Public Bill Committee Proceedings: 19th June 2008
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(a)
the chargeable event is the disposal of the relevant securities

or the assignment or release of the relevant securities option,

and

(b)
the individual receives consideration for the disposal,

assignment or release of an amount equal to or exceeding the

market value of the relevant securities or securities option,


for the purposes of those sections treat the consideration (and not the

relevant securities or securities option) as deriving from the foreign

securities income.’.

Jane Kennedy

Agreed to  324

Schedule  7,  page  173,  line  2,  leave out ‘an employment-related’ and insert ‘a’.

Jane Kennedy

Agreed to  325

Schedule  7,  page  173,  line  6,  leave out from ‘with’ to end of line.

Jane Kennedy

Agreed to  326

Schedule  7,  page  173,  line  8,  leave out from ‘otherwise,’ to end of line 10 and

insert ‘the relevant period is—

(i)
the tax year in which the notional loan (within the

meaning of Chapter 3C) is treated as made, or

(ii)
if the chargeable event occurs in that year, the period

beginning at the beginning of that year and ending

with the day of that event.’.

Jane Kennedy

Agreed to  327

Schedule  7,  page  173,  line  16,  leave out ‘such period as is just and reasonable’ and

insert ‘the tax year in which the chargeable event occurs’.

Jane Kennedy

Agreed to  328

Schedule  7,  page  173,  leave out line 25 and insert ‘For the purposes of this section an

option “vests”’.

Jane Kennedy

Agreed to  331

Schedule  7,  page  174,  line  21,  at end insert—

‘(8)
This section is subject to section 41E (foreign securities income: just

and reasonable apportionment).’.

Jane Kennedy

Agreed to  329

Schedule  7,  page  174,  line  33,  leave out ‘earnings’ and insert ‘employment

income’.

Jane Kennedy

Agreed to  330

Schedule  7,  page  174,  line  35,  leave out ‘those earnings that are’ and insert ‘that

Public Bill Committee Proceedings: 19th June 2008
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Finance Bill, continued

income that is’.

Jane Kennedy

Agreed to  332

Schedule  7,  page  174,  line  44,  at end insert—

‘41E
Foreign securities income: just and reasonable apportionment

(1)
This section applies if the proportion of the securities income that

would otherwise be regarded as “foreign” is not, having regard to all

the circumstances, one that is just and reasonable.

(2)
The amount of the securities income that is “foreign” is such amount

as is just and reasonable (rather than the amount calculated in

accordance with section 41C).’.

Jane Kennedy

Agreed to  333

Schedule  7,  page  176,  line  19,  at end insert—

‘31A
In section 446N (securities subject to restriction during relevant period), after

subsection (6) insert—

“(7)
If any of the employment income arising under section 426 by virtue

of the chargeable event is foreign securities income within the

meaning of section 41C, reduce the taxable amount mentioned in

subsection (5) by the amount of the foreign securities income.

(8)
If any of the employment income that would have arisen (if the non-

commercial interests mentioned in subsection (6) had been

disregarded) under section 426 by virtue of the chargeable event

would have been foreign securities income (within that meaning),

reduce the taxable amount mentioned in subsection (6) by the amount

of the foreign securities income.”’.

Jane Kennedy

Agreed to  334

Schedule  7,  page  176,  line  31,  at end insert—

‘34A
In section 698 (PAYE: special charges on employment-related securities),

after subsection (7) insert—

“(8)
This section is subject to section 700A (employment-related securities

etc: remittance basis).”

34B
In section 700 (PAYE: gains from securities options), after subsection (6)

insert—

“(7)
This section is subject to section 700A (employment-related securities

etc: remittance basis).”

34C
After that section insert—

“700A
Employment-related securities etc: remittance basis

(1)
This section applies if—

(a)
section 698 or 700 applies, and

(b)
part or all of the amount that counts as employment income is

foreign securities income or is likely to be foreign securities

income.

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(2)
The amount of the payment treated under section 696 as made is

limited to—

(a)
the amount that, on the basis of the best estimate that can

reasonably be made, is likely to count as employment income,

minus

(b)
the amount that, on the basis of such an estimate, is likely to

be foreign securities income.

(3)
References in this section to “foreign securities income” are to income

that is foreign securities income for the purposes of section 41A.”’.

Jane Kennedy

Agreed to  271

Schedule  7,  page  176,  line  40,  leave out ‘8(2)’ and insert ‘8’.

Jane Kennedy

Agreed to  272

Schedule  7,  page  176,  line  41,  leave out from ‘plan),’ to end of line 42 and insert

‘for sub-paragraph (2) substitute—

  “(2)
An employee is a UK resident taxpayer if—

(a)
the employee’s earnings from the employment by reference

to which the employee meets the employment requirement

are (or would be if there were any) general earnings to

which section 15 applies (earnings for year when employee

UK resident), and

(b)
those general earnings are (or would be if there were any)

earnings for a tax year in which the employee is ordinarily

resident in the United Kingdom.”’.

Jane Kennedy

Agreed to  273

Schedule  7,  page  176,  line  43,  leave out ‘6(2)(c)’ and insert ‘6(2)’.

Jane Kennedy

Agreed to  274

Schedule  7,  page  176,  line  44,  leave out from ‘scheme),’ to end of line 45 and insert

‘for paragraph (c) substitute—

“(c)
E’s earnings from the office or employment within

paragraph (a) are (or would be if there were any) general

earnings to which section 15 applies (earnings for year

when employee UK resident),

(ca)
those general earnings are (or would be if there were any)

earnings for a tax year in which E is ordinarily resident in

the United Kingdom, and”.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Withdrawn  381

Schedule  7,  page  178,  line  2,  at end insert ‘where the source ceased after 5 April

2007’.

Public Bill Committee Proceedings: 19th June 2008
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Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  382

Schedule  7,  page  178,  leave out lines 40 to 45 and insert—

‘(1)
Deductions are allowed from the income mentioned in section 832(2) where—

(a)
the income is from a trade, profession or vocation carried on outside the

United Kingdom; and

(b)
the income is overseas property income.

(2)
In the case of section 832B(1)(a) the same deductions are allowed as are allowed

under the Income Taxes Acts where the trade, profession or vocation is carried

out in the United Kingdom.

(3)
In the case of section 832B(1)(b) the same deductions are allowed as are allowed

under the Income Taxes Acts where the property business is carried on overseas

and taxed on the arising basis.”’.

Jane Kennedy

Agreed to  348

Schedule  7,  page  180,  line  25,  at end insert—

‘(3A)
Sections 42 and 43 of the Management Act (procedure and time limit

for making claims), except section 42(1A) of that Act, apply in

relation to an election under this section as they apply in relation to a

claim for relief.’.

Jane Kennedy

Agreed to  335

Schedule  7,  page  182,  line  40,  at end insert—

‘58A
In section 119A (increase in expenditure by reference to tax charged in relation

to employment-related securities), after subsection (5) insert—

“(5A)
See also section 119B (unremitted foreign securities income).”

58B
After that section insert—

“119B
Section 119A: unremitted foreign securities income

(1)
For the purposes of section 119A reduce the amount that counts as

employment income by so much of that amount (if any) as is

unremitted foreign securities income.

(2)
In this section “unremitted foreign securities income” means income

that—

(a)
is foreign securities income for the purposes of section 41A of

ITEPA 2003 (employment income from ERS charged on

remittance basis), and

(b)
has not been remitted to the United Kingdom by the end of the

tax year in which the disposal mentioned in section 119A(1)

occurs.

(3)
The following provisions apply if any of the unremitted foreign

securities income is remitted to the United Kingdom after the end of

the tax year referred to in subsection (2)(b).

(4)
The person liable for the capital gains tax on any chargeable gains

arising on the disposal may make a claim for section 119A(2) to have

Public Bill Committee Proceedings: 19th June 2008
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effect as if the remitted income had been remitted before the end of

that tax year.

(5)
All adjustments (by way of repayment of tax, assessment or otherwise)

are to be made which are necessary to give effect to a claim under

subsection (4).

(6)
Those adjustments may be made at any time, despite anything to the

contrary in any enactment relating to capital gains tax.”’.

Jane Kennedy

Agreed to  349

Schedule  7,  page  184,  line  6,  leave out paragraph 70.

Jane Kennedy

Agreed to  350

Schedule  7,  page  184,  line  20,  leave out paragraph 73.

Jane Kennedy

Agreed to  336

Schedule  7,  page  184,  line  35,  leave out ‘and 32’ and insert ‘to 32, 34C and 58B’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  399

Schedule  7,  page  184,  line  37,  leave out ‘2008’ and insert ‘2009’.

Jane Kennedy

Agreed to  337

Schedule  7,  page  184,  line  37,  at end insert ‘(except employment-related securities

acquired pursuant to a securities option acquired before 6 April 2008).’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  400

Schedule  7,  page  184,  line  39,  leave out ‘2008-09’ and insert ‘2009-10’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  401

Schedule  7,  page  184,  line  39,  at end insert ‘, except for the amendment made by

paragraph 1 to insert a new section 809G in Part 14 of ITA 2007, which has effect for the

tax year 2008-09 and subsequent tax years.’.

Jane Kennedy

Agreed to  491

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

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