Consideration of Bill: 1st July 2008

2920

Finance Bill, continued

‘(4A)

Subsection (2) does not apply if the relevant UK service relates (to any

extent) to the provision in the United Kingdom of—

(a)	a benefit that is treated as deriving from the income by virtue

of section 735, or

(b)	a relevant benefit within the meaning of section 87B of TCGA

1992 that is treated as deriving from the chargeable gains by

virtue of that section.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

21

Page  171,  line  21  [Schedule  7],  at end insert—

‘(4A)

The Treasury may by order define those services which qualify as relevant

services.

(4B)	The power to make an order under this section is exercisable by statutory

instrument.

(4C)	A statutory instrument containing an order under subsection (4A) may not be

made unless a draft of the instrument has been laid before, and approved by a

resolution of, the House of Commons.’.

Mr Chancellor of the Exchequer

54

Page  179,  line  29  [Schedule  7],  leave out ‘sections 809L to 809R’ and insert

‘Chapter A1 of Part 14’.

Mr Chancellor of the Exchequer

55

Page  180,  line  18  [Schedule  7],  leave out ‘sections 809L to 809R’ and insert

‘Chapter A1 of Part 14’.

Mr Chancellor of the Exchequer

56

Page  181,  line  34  [Schedule  7],  leave out from ‘purposes of’ to ‘treat’ in line 35 and

insert ‘Chapter A1 of Part 14 of ITA 2007 (remittance basis),’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Mr Brooks Newmark

110

Page  181,  line  35  [Schedule  7],  after ‘etc)’, insert—

Consideration of Bill: 1st July 2008

2921

Finance Bill, continued

(a)	the relevant securities or securities option shall not be treated as brought

to, or received or used in, the United Kingdom if the securities are, or the

securities option is, situated in the United Kingdom and cannot be

situated elsewhere, and

(b)

’.

Mr Chancellor of the Exchequer

57

Page  182,  line  1  [Schedule  7],  leave out ‘those sections’ and insert ‘that Chapter’.

Mr Chancellor of the Exchequer

58

Page  182,  line  11  [Schedule  7],  at end insert—

‘(11)

See Chapter A1 of Part 14 of ITA 2007 for the meaning of “remitted

to the United Kingdom” etc.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Mr Brooks Newmark

111

Page  183,  line  4  [Schedule  7],  at end insert—

‘(7A)

This section is subject to section 41E (foreign securities income: just and

reasonable apportionment).’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Mr Brooks Newmark

112

Page  184,  line  27  [Schedule  7],  after ‘if’, insert ‘the relevant period or’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Mr Brooks Newmark

113

Page  184  [Schedule  7],  leave out lines 30 to 32 and insert—

‘(2)	The relevant period or the amount of the securities income that is “foreign” is

such period or such amount as is just and reasonable (rather than the period

Consideration of Bill: 1st July 2008

2922

Finance Bill, continued

calculated in accordance with section 41B or the amount calculated in accordance

with section 41C).’.

Mr Chancellor of the Exchequer

59

Page  188,  line  37  [Schedule  7],  leave out ‘sections 809L to 809R’ and insert

‘Chapter A1 of Part 14’.

Mr Chancellor of the Exchequer

60

Page  191,  line  4  [Schedule  7],  leave out ‘sections 809L to 809T’ and insert

‘Chapter A1 of Part 14’.

Mr Chancellor of the Exchequer

61

Page  191,  line  19  [Schedule  7],  leave out from ‘in’ to end of line 20 and insert ‘—

(a)	the relevant tax year, or

(b)	any subsequent tax year except one in which the individual is

domiciled in the United Kingdom,

are not allowable losses.’.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

94

Page  196,  line  5  [Schedule  7],  leave out paragraphs 80 to 91 and insert—

‘80	The amendments made by Part 1 of this Schedule shall have effect from the

passing of this Act.’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

10

Page  196,  line  37  [Schedule  7],  at end insert—

‘(2A)

Nothing in section 832 of ITTOIA 2005 (as amended by this Schedule) applies

in relation to any of an individual’s relevant foreign income that—

(a)	arose in tax year 2007/08 or any earlier tax year; and

Consideration of Bill: 1st July 2008

2923

Finance Bill, continued

(b)	has been brought to, or received, or used in, the United Kingdom by or

for the benefit of any relevant person at any time before 6th April

2008.’.

Mr Chancellor of the Exchequer

62

Page  197,  line  25  [Schedule  7],  leave out sub-paragraphs (2) to (4) and insert—

‘(2)	If, before 6 April 2008, property (including money) consisting of or deriving

from an individual’s relevant foreign income was brought to or received or

used in the United Kingdom by or for the benefit of a relevant person, treat the

relevant foreign income as not remitted to the United Kingdom on or after that

date (if it otherwise would be regarded as so remitted).

(3)	If, before 12 March 2008, property (other than money) consisting of or

deriving from an individual’s relevant foreign income was acquired by a

relevant person, treat the relevant foreign income as not remitted to the United

Kingdom on or after 6 April 2008 (if it otherwise would be regarded as so

remitted).’.

Mr Chancellor of the Exchequer

63

Page  197,  line  40  [Schedule  7],  leave out ‘to (4)’ and insert ‘and (3)’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

11

Page  197,  line  42  [Schedule  7],  at end insert—

‘(5A)

Where the qualifying property referred to in condition C of section 809L was

gifted prior to 6th April 2008 one reads section 809L(4)(a) as follows: “is

brought to or received in the United Kingdom by a relevant person.”’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

12

Page  197,  line  42  [Schedule  7],  at end insert—

‘(5A)

Where the qualifying property referred to in condition C of section 809L was

brought to the UK prior to 6th April 2008 one reads section 809L(4)(a) as

follows: “is brought to or received in the United Kingdom by a relevant

person.”’.

Mr Chancellor of the Exchequer

64

Page  197,  line  43  [Schedule  7],  leave out sub-paragraph (6).

Consideration of Bill: 1st July 2008

2924

Finance Bill, continued

Mr Chancellor of the Exchequer

65

Page  198,  line  28  [Schedule  7],  after ‘Kingdom’, insert ‘(“the interest”)’.

Mr Chancellor of the Exchequer

66

Page  198,  line  29  [Schedule  7],  leave out ‘was secured on that interest’ and insert ‘,

or of payments made under a guarantee of that repayment (“the guarantee”), was secured

on the interest.’.

Mr Chancellor of the Exchequer

67

Page  198,  line  35  [Schedule  7],  after ‘made’, insert ‘, or any term of the guarantee,’.

Mr Chancellor of the Exchequer

68

Page  198,  line  36  [Schedule  7],  leave out paragraphs (b) and (c) and insert—

‘(b)	repayment of the debt, or of payments made under the guarantee,

ceases to be secured on the interest,

(c)	repayment of any other debt is secured on the interest or is guaranteed

by the guarantee, or’.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

17

Page  198  [Schedule  7],  leave out line 38 and insert ‘or’.

Mr Chancellor of the Exchequer

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

18

Page  199  [Schedule  7],  leave out line 5.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

19

Page  199,  line  6  [Schedule  7],  after ‘money’, insert ‘, or directed that the money be

used,’.

Mr Chancellor of the Exchequer

70

Page  199,  line  8  [Schedule  7],  leave out from ‘loan’ to end of line 9 and insert ‘, or

of payments made under a guarantee of that repayment, was secured on the interest,’.

Consideration of Bill: 1st July 2008

2925

Finance Bill, continued

Mr Chancellor of the Exchequer

71

Page  199,  line  14  [Schedule  7],  at end insert—

‘(6)	In this paragraph “guarantee” includes an indemnity, and “guaranteed” is to be

read accordingly.’.

Mr Chancellor of the Exchequer

72

Page  199,  line  29  [Schedule  7],  after ‘gain)’, insert ‘—

(a)

’.

Mr Chancellor of the Exchequer

73

Page  199,  line  32  [Schedule  7],  at end insert ‘, and

(b)	after subsection (7) insert—

“(8)	Nothing in subsection (7) affects the application of this

section in relation to an offshore income gain treated as

arising by virtue of section 762(3).”’.

Mr Chancellor of the Exchequer

74

Page  200,  line  30  [Schedule  7],  leave out from ‘Kingdom’ to ‘as’ in line 31.

Mr Chancellor of the Exchequer

75

Page  201,  line  18  [Schedule  7],  leave out from ‘purposes of’ to end of line 19 and

insert ‘Chapter A1 of Part 14 of ITA 2007 (remittance basis)—’.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

96

Page  201,  line  41  [Schedule  7],  leave out paragraph 98.

Mr Chancellor of the Exchequer

76

Page  203,  line  37  [Schedule  7],  leave out from ‘purposes of’ to end of line 38 and

insert ‘Chapter A1 of Part 14 of ITA 2007 (remittance basis)—’.

Consideration of Bill: 1st July 2008

2926

Finance Bill, continued

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

97

Page  204,  line  10  [Schedule  7],  leave out paragraph 105.

Mr Chancellor of the Exchequer

77

Page  206,  line  20  [Schedule  7],  leave out from ‘purposes of’ to ‘treat’ in line 21 and

insert ‘Chapter A1 of Part 14 of ITA 2007 (remittance basis),’.

Mr Chancellor of the Exchequer

78

Page  207,  line  25  [Schedule  7],  leave out from ‘if’ to ‘transfer’ in line 28 and insert

‘the trustees of a settlement (“the transferor settlement”)’.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

98

Page  209,  line  19  [Schedule  7],  leave out paragraph 115.

Mr Chancellor of the Exchequer

79

Page  212,  line  38  [Schedule  7],  leave out paragraph 124.

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

16

Page  214,  line  27  [Schedule  7],  at end insert—

‘(11A)

For the avoidance of doubt, where after 6th April 2008 a re-organisation has

taken place which meets the conditions in section 127 of TCGA 1992, the new

holding (or part of that holding) is a relevant asset if the condition in sub-

paragraph (10)(b) or the conditions in sub-paragraphs (11)(b) and (c) would be

---

Revised 1 July 2008