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Session 2007 - 08 Publications on the internet General Committee Debates Finance Bill |
Finance Bill |
The Committee consisted of the following Members:Alan
Sandall, James Davies, Committee
Clerks † attended the
Committee Public Bill CommitteeThursday 19 June 2008(Afternoon)[Sir Nicholas Winterton in the Chair]Finance Bill(Except clauses 3, 5, 6, 15, 21, 49, 90 and 117 and new clauses amending section 74 of the Finance Act 2003)1
pm
The
Chairman: Order. I have managed a small amount of
chocolate between our last sitting and now, which is an intake of
glucose to ensure that I have the strength to see us through the next
three hours or so.
Schedule 7Remittance
basis Amendment
proposed [this day]: No. 362, in schedule 7, page 153,
leave out lines 1 to 12.—[Mr.
Hoban.] Question
again proposed, That the amendment be
made.
The
Financial Secretary to the Treasury (Jane Kennedy): I can
clarify that there are 16 double taxation agreements. None are A8
countries; I was asked a specific question about that. The only one
that may be cause for concern is the double taxation agreement with
Fiji, but we anticipate that very few taxpayers would be affected as a
result.
The
Chairman: That was a very brief, succinct speech, which I
am sure will be the order of the rest of this
afternoon. Mr.
Mark Hoban (Fareham) (Con): I think that small amounts of
chocolate are apparently the best quantities to eat.
We are all
relieved that it is Fiji, but there are Fijian soldiers serving in Her
Majesty’s armed forces, so I am sure that the MOD will be
reacting to that news and rushing forward with advice for Fijians
enlisted in the armed
forces. I
have listened to the arguments advanced by the Minister about personal
allowances. We do have a difference of view here. It was never part of
our proposals on the charging of a levy on non-doms to remove their
personal allowances. We think that the impact on taxpayers could be
quite significant, and it will lead to complexity. The Minister is a
great advocate of choice for individuals, and we welcome that
conversion to choice, but it is going to be challenging for some people
to comply with the rules. It would have been more reassuring for all
those engaged in the debate if the preparations of Her Majesty’s
Revenues and Customs had been further advanced to assist those on low
incomes to comply with
these rules, but I do not wish at this point to push the amendment to a
vote, so I beg to ask leave to withdraw the
amendment. Amendment,
by leave, withdrawn.
Amendments
made: No. 341, in schedule 7, page 153, line 25, leave out
‘809B(3)’ and insert
‘809BA’. No.
342, in schedule 7, page 153, leave out lines 27 to 31 and
insert— ‘(4) If the relevant
tax increase would otherwise be less than £30,000, subsection
(2) has effect as
if— (a) in addition to
the income and gains actually nominated under section 809BA in the
individual’s claim under section 809B for the relevant tax year,
an amount of income had been nominated so as to make the relevant tax
increase equal to £30,000,
and (b) the individual’s
income for that year were such that such a nomination could have been
made (if that is not the
case).’. No.
343, in schedule 7, page 153, line 37, at end
insert— ‘(6) Nothing in
subsection (4) affects what is regarded, for the purposes of section
809H or 809I, as nominated under section
809BA.’. No.
344, in schedule 7, page 154, line 9, leave out ‘809B(3)’
and insert
‘809BA’. No.
345, in schedule 7, page 154, line 17, at beginning insert ‘If
section 809H
applies,’. No.
346, in schedule 7, page 154, line 29, after ‘year’
insert ‘(other than income or
chargeable gains nominated under section
809BA)’. No.
347, in schedule 7, page 155, line 34, leave out
‘809B(3)’ and insert
‘809BA’.—[Jane
Kennedy.]
Mr.
Hoban: I beg to move amendment No. 363, in schedule 7,
page 156, line 35, leave out from ‘is’ to end of line 36
and add ‘employed in the United
Kingdom by a relevant
person.’.
The
Chairman: With this it will be convenient to discuss the
following amendments: No. 364, in schedule 7, page 157, line
37, after ‘(3)(a)’, insert ‘,
subsection
(11)’. Government
amendment No.
482. No.
365, in schedule 7, page 157, line 41, at end
insert— ‘(11) For the
purpose of Condition A, property brought to, or received or used in,
the United Kingdom by or for the benefit of a relevant person is to be
disregarded in any of these
cases— (a) if the
property or service is enjoyed virtually to the entire exclusion of the
individual, his spouse or civil partner and his dependent
children; (b) if full
consideration in money or money’s worth is given by the
individual, his spouse or civil partner or his dependent children for
the enjoyment; or (c) the
property or service is enjoyed by the individual, his spouse or civil
partner or his dependent children in the same way and on the same terms
as it may be enjoyed by the general public or by a section of the
general public. (12) The
references in subsection (11) above to the spouse or civil partner of
the individual do not
include— (a) a person to
whom the individual is not for the time being married but may later
marry, or a person of whom the individual is not for the time being the
civil partner but of whom he may later be a civil partner,
or
(b) a spouse or civil partner from whom the
individual is separated under an order of a court or under a separation
agreement or in such circumstances that the separation is likely to be
permanent, or (c) the widow or
widower or surviving civil partner of the
individual. (13) In this
section— (a)
“dependent child” means a child
who— (i) is under the
age of 18 years, (ii) is
unmarried, and (iii) does not
have a civil partner, and (b)
“child” includes a
stepchild.’. Government
amendment No.
483. No.
366, in schedule 7, page 159, line 33, leave out ‘all relevant
persons’ and insert ‘the
individual, his spouse or civil partner and his dependent
children’. No.
367, in schedule 7, page 159, line 34, leave out ‘a relevant
person’ and insert ‘the
individual, his spouse or civil partner and his dependent
children’. No.
368, in schedule 7, page 159, line 36, leave out ‘relevant
persons’ and insert ‘the
individual, his spouse or civil partner and his dependent
children’. No.
369, in schedule 7, page 159, line 40, at end
insert— ‘(11) The references
in subsection (9) above to the spouse or civil partner of the
individual do not
include— (a) a person to
whom the individual is not for the time being married but may later
marry, or a person of whom the individual is not for the time being the
civil partner of whom he may later be a civil partner,
or (b) a spouse or civil
partner from whom the individual is separated under an order of court
or under a separation agreement or in such circumstances that the
separation is likely to be permanent,
or (c) the widow or widower or
surviving civil partner of the
individual. (12) In this
section— (a)
“dependent child” means a child
who— (i) is under the
age of 18 years, (ii) is
unmarried, and (iii) does not
have a civil partner, and (b)
“child” includes a
stepchild.’. No.
370, in schedule 7, page 160, line 23, leave out ‘all relevant
persons’ and insert ‘the
individual, his spouse or civil partner and his dependent
children’. No.
371, in schedule 7, page 160, line 24, leave out ‘a relevant
person’ and insert ‘the
individual, his spouse or civil partner and his dependent
children’. No.
372, in schedule 7, page 160, line 26, leave out ‘relevant
persons’ and insert ‘the
individual, his spouse or civil partner and his dependent
children’. No.
373, in schedule 7, page 160, line 28, at end
insert— ‘(6A) The references
in subsection (6) above to the spouse or civil partner of the
individual do not include—
(a) a person to whom the individual is not for the
time being married but may later marry, or a person of whom the
individual is not for the time being the civil partner but of whom he
may later be a civil partner,
or (b) a spouse or civil
partner from whom the individual is separated under an order of a court
or under a separation agreement or in such circumstances that the
separation is likely to be permanent,
or (c) the widow or widower or
surviving civil partner of the
individual. (6B) In this
section— (a)
“dependent child” means a child
who— (i) is under the
age of 18 years, (ii) is
unmarried, and (iii) does not
have a civil partner, and (b)
“child” includes a
stepchild.’. No.
374, in schedule 7, page 162, line 42, leave out from beginning to end
of line 7 on page 163 and
insert— ‘(4) The kinds of
income and capital
are— (a) income and
gains subject to a UK tax, (b)
employment income subject to a foreign
tax, (c) relevant foreign
income subject to a foreign
tax, (d) foreign chargeable
gains subject to a foreign
tax, (e) relevant foreign
earnings (other than income within paragraph
(b)), (f) foreign specific
employment income (other than income within paragraph
(b)), (g) relevant foreign
income (other than income within paragraph
(c)), (h) foreign chargeable
gains (other than chargeable gains within paragraph (d)),
and (i) income or capital not
within another paragraph of this
subsection. (4A) Subsection (4)
is subject to subsection
(4B). (4B) Where an individual
has insufficient information to be able to determine whether foreign
income or foreign gains has suffered foreign tax he shall not be deemed
to have made an incorrect return if he treats the funds as relating to
the appropriate income or gains paragraph with respect to which foreign
tax has not been
suffered.’. Government
amendments nos. 463, 464, 484, 485, 465 to 468 and
486. No.
495, in schedule 7, page 202, line 30, after ‘809Q’,
insert ‘and
809S’.
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