House of Commons Public Bill Committee Proceedings

House of Commons

Session 2007 - 08
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Other Bills before Parliament

Report Stage Proceedings: 2nd July 2008
700

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  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

Not called  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

Agreed to  64

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

Mr Chancellor of the Exchequer

Agreed to  65

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

Mr Chancellor of the Exchequer

Agreed to  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

Agreed to  67

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

Mr Chancellor of the Exchequer

Agreed to  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’.

Report Stage Proceedings: 2nd July 2008
701

Finance Bill, continued

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  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

Agreed to  18

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

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  19

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

used,’.

Mr Chancellor of the Exchequer

Agreed to  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,’.

Mr Chancellor of the Exchequer

Agreed to  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

Agreed to  72

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

(a)
’.

Mr Chancellor of the Exchequer

Agreed to  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).”’.

Report Stage Proceedings: 2nd July 2008
702

Finance Bill, continued

Mr Chancellor of the Exchequer

Agreed to  74

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

Mr Chancellor of the Exchequer

Agreed to  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

Not called  96

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

Mr Chancellor of the Exchequer

Agreed to  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)—’.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

Not called  97

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

Mr Chancellor of the Exchequer

Agreed to  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

Agreed to  78

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

Report Stage Proceedings: 2nd July 2008
703

Finance Bill, continued

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

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

Not called  98

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

Mr Chancellor of the Exchequer

Agreed to  79

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

Mr Philip Hammond

Mr Mark Hoban

Mr David Gauke

Justine Greening

Not called  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

met were the references there to the asset to be read as references to the new

asset or the original asset.’.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

Not called  99

Page  221,  line  9  [Schedule  7],  leave out paragraph 148.

Mr Chancellor of the Exchequer

Agreed to  80

Page  223,  line  1  [Schedule  7],  leave out from ‘purposes of’ to end of line 2 and

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

Report Stage Proceedings: 2nd July 2008
704

Finance Bill, continued

Mr Chancellor of the Exchequer

Agreed to  81

Page  223,  line  7  [Schedule  7],  after ‘to’, insert ‘(or exceeding)’.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

Not called  100

Page  223,  line  14  [Schedule  7],  leave out paragraph 161.

Mr Chancellor of the Exchequer

Agreed to  82

Page  223,  line  41  [Schedule  7],  leave out from ‘purposes of’ to ‘treat’ in line 42 and

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

Mr Chancellor of the Exchequer

Agreed to  83

Page  224,  line  18  [Schedule  7],  leave out from ‘purposes of’ to ‘treat’ in line 19 and

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

Mr Chancellor of the Exchequer

Agreed to  84

Page  224,  line  40  [Schedule  7],  leave out from ‘purposes of’ to ‘treat’ in line 41 and

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

Mr Chancellor of the Exchequer

Agreed to  85

Page  225,  line  9  [Schedule  7],  after ‘gains’, insert ‘or offshore income gains’.

Mr Chancellor of the Exchequer

Agreed to  86

Page  225,  line  45  [Schedule  7],  at end insert—

‘(4A)
For those purposes treat income for a period as arising immediately

before the end of the period.’.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

Not called  101

Page  226,  line  1  [Schedule  7],  leave out paragraph 171.

Report Stage Proceedings: 2nd July 2008
705

Finance Bill, continued

Mr Chancellor of the Exchequer

Agreed to  87

Page  226,  line  2  [Schedule  7],  at end insert—

‘General

172
For the purposes of this Part of this Schedule, the market value of any asset is

its market value for the purposes of TCGA 1992.’.

Mr Jeremy Browne

Dr Vincent Cable

Mr Colin Breed

Dr John Pugh

Not called  95

Page  226,  line  2  [Schedule  7],  at end insert—

‘172
The amendments made by Part 2 of this Schedule shall have effect from 6th

April 2009.’.

Mr Chancellor of the Exchequer

Agreed to  30

Page  270,  line  35  [Schedule  17],  leave out from beginning to ‘and’ in line 36.

Mr Chancellor of the Exchequer

Agreed to  31

Page  271,  line  14  [Schedule  17],  after ‘period’, insert ‘and distributions received

by the company in the accounting period from companies resident in the United Kingdom

so far as referable (in accordance with section 432A of the Taxes Act 1988) to the

company’s basic life assurance and general annuity business’.

Mr Chancellor of the Exchequer

Agreed to  32

Page  272,  line  8  [Schedule  17],  at end insert—

‘Insurance special purpose vehicles

19A
In section 431A of ICTA (powers to amend), after subsection (2) insert—

“(2A)
The Treasury may by order make provision as to the application of the

Corporation Tax Acts in relation to insurance special purpose

vehicles.

(2B)
An order under subsection (2A) above may in particular contain

provision—

(a)
making amendments of any provision of the Corporation Tax

Acts, or

Report Stage Proceedings: 2nd July 2008
706

Finance Bill, continued

(b)
making provision for the life assurance provisions of the

Corporation Tax Acts to have effect in relation to any

specified description of insurance special purpose vehicles

subject to specified modifications or exceptions.

(2C)
An order under subsection (2A) above—

(a)
may make provision having effect in relation to accounting

periods current when it is made, and

(b)
if it is made in consequence of, or otherwise in connection

with, provision made by any enactment or instrument, may

make provision having effect in relation to the same times as

that enactment or instrument.”’.

Mr Chancellor of the Exchequer

Agreed to  33

Page  275,  line  31  [Schedule  17],  at end insert—

    ‘(3)
But that amendment does not have effect (and is to be treated as never having

had effect) in relation to a company if a relevant determination is made in

proceedings commenced by the company before 15 May 2008 and is not

reversed on an appeal or further appeal.

      (4)
A relevant determination is a determination that losses incurred in an

accounting period earlier than that in which 31 December 2002 was included

are to be taken into account for the purposes of section 89 of FA 1989 in

arriving at Case I profits for accounting periods—

(a)
beginning on or after 1 January 2003, and

(b)
ending on or before 31 December 2006.’.

Bill read the third time, on division, and passed.