House of Commons Public Bill Committee Proceedings

House of Commons

Session 2007 - 08
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Other Bills before Parliament

21

House of Commons

Tuesday 20th May 2008

Public Bill Committee Proceedings

Finance Bill

(Except Clauses 3, 5, 6, 15, 21, 49, 90 and 117

and new Clauses amending section 74 of the Finance Act 2003)

[Ninth and Tenth sittings]

Clauses 28 and 29 Agreed to.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Withdrawn  82

Schedule  11,  page  212,  leave out line 28.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  83

Schedule  11,  page  212,  leave out line 32.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  84

Schedule  11,  page  213,  leave out lines 1 to 5.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  85

Schedule  11,  page  213,  leave out line 16.

Public Bill Committee Proceedings: May 2008
22

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  86

Schedule  11,  page  213,  leave out line 20.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  87

Schedule  11,  page  213,  leave out lines 27 to 31.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  88

Schedule  11,  page  214,  leave out line 4.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  89

Schedule  11,  page  214,  leave out line 8.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  90

Schedule  11,  page  214,  leave out lines 15 to 19.

Schedule Agreed to.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Withdrawn  93

Clause  30,  page  14,  line  16,  leave out subsections (2) and (3).

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  94

Clause  30,  page  15,  leave out line 6.

Public Bill Committee Proceedings: May 2008
23

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  95

Clause  30,  page  15,  leave out lines 13 to 17.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Withdrawn  96

Clause  30,  page  15,  line  21,  at end insert—

‘(5A)
The amendments made by subsections (2) and (3) of this section shall not come

into force until the Treasury has laid before the House of Commons a report

which sets out how companies deemed to be in a group because they are owned

by a private equity and venture capital firms can become qualifying companies

under paragraph 8 of Part 3 of Schedule 5 to the Income Tax (Earnings and

Pensions) Act 2003.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  97

Clause  30,  page  15,  line  22,  after ‘by’, insert ‘subsections (4) and (5) of’.

Clause Agreed to.

Clause 31 Agreed to.

Jane Kennedy

Agreed to  123

Schedule  12,  page  215,  line  17,  after ‘company,’, insert ‘provided that—

(a)
the company is not an offshore fund (within the meaning of section 756A

of ICTA),’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Mr Brooks Newmark

Withdrawn  71

Schedule  12,  page  215,  line  18,  leave out ‘minority’ and insert ‘small’.

Jane Kennedy

Agreed to  124

Schedule  12,  page  215,  line  18,  after ‘(b)’, insert ‘the person’.

Public Bill Committee Proceedings: May 2008
24

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Mr Brooks Newmark

Not called  72

Schedule  12,  page  216,  line  17,  leave out ‘minority’ and insert ‘small’.

Jane Kennedy

Agreed to  125

Schedule  12,  page  216,  line  40,  after ‘company’, insert ‘that is not an offshore

fund’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Mr Brooks Newmark

Not called  73

Schedule  12,  page  217,  line  8,  leave out ‘minority’ and insert ‘small’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Mr Brooks Newmark

Not called  74

Schedule  12,  page  217,  line  9,  leave out ‘minority’ and insert ‘small’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Mr Brooks Newmark

Withdrawn  70

Schedule  12,  page  219,  line  16,  leave out paragraph 24.

Schedule, as amended, Agreed to.

Clauses 32 and 33 Agreed to.

Schedule 13 Agreed to.

Jane Kennedy

Agreed to  98

Schedule  14,  page  225,  leave out line 7 and insert—

‘1A(1)
Subsection (1C) of section 437 (general annuity business: income limit) is

amended as follows.

      (2)
In paragraph (b)(ii), omit “capital elements and”.

      (3)
Omit paragraph (c).

Public Bill Committee Proceedings: May 2008
25

Finance Bill, continued

      (4)
In paragraph (d), for the words after “2005” substitute “are so much of the

payments under the new annuities as would be within the exemption in

subsection (1) of that section if—

(i)
section 718 of that Act were omitted, and

(ii)
that exemption were an exemption applying in

relation to companies as well as individuals.”

2
Omit sections 539 to 551A (corporation tax in respect of gains arising in

connection with life policies etc).’.

Jane Kennedy

Agreed to  99

Schedule  14,  page  226,  line  23,  at end insert ‘(further provisions about corporation

tax in respect of gains arising in connection with life policies etc).

6A
Omit sections 656 to 658 (purchased life annuities).’.

Jane Kennedy

Agreed to  100

Schedule  14,  page  227,  line  7,  at end insert—

‘(aa)
in FA 1991, section 76(1),’.

Jane Kennedy

Agreed to  101

Schedule  14,  page  227,  line  13,  after ‘1999,’ insert ‘section 80 and’.

Jane Kennedy

Agreed to  102

Schedule  14,  page  227,  line  18,  leave out ‘paragraph 25’ and insert ‘paragraphs 25

and 27’.

Jane Kennedy

Agreed to  103

Schedule  14,  page  227,  line  19,  after first ‘paragraph’ insert ‘(b) of section 473(2)

and the “or” before it, paragraphs 268(1) and (2), 269 and’.

Jane Kennedy

Agreed to  104

Schedule  14,  page  227,  line  21,  leave out ‘paragraph 111’ and insert ‘paragraphs

111 and 141’.

Schedule, as amended, Agreed to.

Clause 34 Agreed to.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Withdrawn  75

Schedule  15,  page  228,  line  39,  at end insert—

Public Bill Committee Proceedings: May 2008
26

Finance Bill, continued

‘(4)
This section shall not apply where an election under section 161(3) of the

Taxation of Chargeable Gains Act 1992 is made, and instead the market value of

the asset at the time of the appropriation shall, in computing the profits of the

trade for the purposes of tax, be treated as reduced by the amount of the

chargeable gain or increased by the amount of the loss referred to in subsection

(1) of section 161 of the Taxation of Chargeable Gains Act 1992, and where that

subsection and this section do not apply by reason of such an election, the profits

of the trade shall be computed accordingly.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  76

Schedule  15,  page  231,  line  6,  at end insert—

‘(4)
This paragraph shall not apply where an election under section 161(3) of the

Taxation of Chargeable Gains Act 1992 is made, and instead the market value of

the asset at the time of the appropriation shall, in computing the profits of the

trade for the purposes of tax, be treated as reduced by the amount of the

chargeable gain or increased by the amount of the loss referred to in subsection

(1) of section 161 of the Taxation of Chargeable Gains Act 1992, and where that

subsection and this paragraph do not apply by reason of such an election, the

profits of the trade shall be computed accordingly.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  77

Schedule  15,  page  231,  line  22,  leave out ‘paragraph 7 does not apply’ and insert

‘neither paragraph 7 nor section 173 of the Taxation of Chargeable Gains Act 1992

applies’.

Schedule Agreed to.

Clause 35 Agreed to.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Withdrawn  78

Schedule  16,  page  232,  line  14,  leave out paragraph 2.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  79

Schedule  16,  page  232,  line  28,  leave out paragraph 3.

Public Bill Committee Proceedings: May 2008
27

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  80

Schedule  16,  page  232,  line  28,  leave out paragraphs 3 to 6.

Schedule Agreed to.

Clauses 36 and 37 Agreed to.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Withdrawn  81

Clause  38,  page  18,  line  33,  at end insert ‘or otherwise altering or amending the

definition of an interest in an offshore fund and the circumstances in which an investor is

treated as disposing of an interest in an offshore fund’.

Clause Agreed to.

Clauses 39 and 40 Agreed to.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Withdrawn  92

Schedule  17,  page  242,  line  3,  leave out sub-paragraphs (5) and (6).

Jane Kennedy

Agreed to  105

Schedule  17,  page  242,  line  28,  at end insert—

  ‘(2A)
In paragraph (f) of that subsection, after “Scheme” insert “, or from another

insurance company,”.’.

Jane Kennedy

Agreed to  106

Schedule  17,  page  245,  line  6,  leave out sub-paragraph (4) and insert—

‘(4)
Omit paragraph 42 (and the heading before it).’.

.