House of Commons Amendments

House of Commons

Session 2008 - 09
Internet Publications
Other Bills before Parliament

29

House of Commons

Tuesday 2 June 2009

Public Bill Committee

Finance Bill

(Except Clauses 7, 8, 9, 11, 14, 16, 20 and 92)

Note

The Amendments have been arranged according to the Order of the Committee

[19 May 2009].

Mr Jeremy Browne

4

Clause  17,  page  11,  line  4,  leave out from ‘substitute’ to end of line 29 and insert—

‘(1)
Aircraft flight duty is chargeable in respect of each freight and passenger aircraft

on each flight undertaken by that aircraft from a destination within the UK.’.

Mr Greg Hands

Mr Mark Hoban

Mr David Gauke

40


Clause  17,  page  11,  line  33,  at end insert—

‘(3A)
The Treasury shall, no later than the date of the Pre-Budget Report 2009, bring

forward plans to replace Air Passenger Duty with a per-plane tax on aircraft

currently subject to Air Passenger Duty.’.

Mr Jeremy Browne

3

Page  11,  line  1,  leave out Clause 17.

Public Bill Committee: 2 June 2009
30

Finance Bill, continued

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

31

Schedule  6,  page  90,  line  44,  leave out ‘£50,000’ and insert ‘£100,000’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

32

Schedule  6,  page  90,  line  46,  leave out ‘£50,000’ and insert ‘£100,000’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

37

Schedule  6,  page  91,  line  27,  leave out ‘24 November’ and insert ‘31 December’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

33

Schedule  6,  page  91,  line  31,  leave out ‘£50,000’ and insert ‘£100,000’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

28

Schedule  6,  page  91,  line  32,  leave out ‘24 November 2009’ and insert ‘31

December 2010’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

34

Schedule  6,  page  91,  line  33,  leave out ‘£50,000’ and insert ‘£100,000’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

29

Schedule  6,  page  91,  line  34,  leave out ‘24 November’ and insert ‘31 December’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

30

Schedule  6,  page  91,  line  37,  at end insert—

‘(3A)
The limits referred to in subsubparagraphs 3(a) and (b) shall not apply to the

accounting period immediately preceding the relevant accounting period in

which the trading loss arose.’.

Public Bill Committee: 2 June 2009
31

Finance Bill, continued

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

36

Schedule  6,  page  91,  line  38,  leave out subsections (4) and (5).

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

35

Schedule  6,  page  91,  line  41,  leave out ‘£50,000’ and insert ‘£100,000’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

38

Clause  25,  page  15,  leave out lines 37 to 38 and insert ‘the Treasury may by regulations

make provision for and in connection with the application of all relevant enactments as

follows.

(1A)
The Treasury may make regulations to—

(a)
give effect to the agreement referred to in subsection (1), and

(b)
give effect to subsection (3).

(1B)
Regulations under this section may include provision having effect in relation to

any time before they are made even if the provision creates or increases the

liability to tax of P or such other person as is referred to in subsection (3).

(1C)
Regulations under this section may include—

(a)
provision amending any relevant enactment, and

(b)
consequential, supplementary and transitional provisions.

(1D)
Regulations under this section are to be made by statutory instrument subject to

annulment in pursuance of a resolution of the House of Commons.’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

39

Clause  25,  page  16,  leave out lines 14 to 16.

Mr Stephen Timms

8

Schedule  7,  page  96,  line  29,  after ‘acquisition’, insert ‘by the company of a major

interest in the land’.

Public Bill Committee: 2 June 2009
32

Finance Bill, continued

Mr Stephen Timms

9

Schedule  7,  page  98,  line  28,  leave out ‘ “sub-contractor payment” substitute

“connected sub-contractor payment’ and insert ‘ “sub-contracted land remediation”

substitute “connected sub-contracted land remediation” ’.

Mr Stephen Timms

13

Schedule  8,  page  101,  line  4,  leave out from beginning to ‘is’ in line 5 and insert—

‘A1
Schedule 5B to TCGA 1992 (enterprise investment scheme: re-investment) is

amended as follows.

A2  (1)
Paragraph 1(2) (application of Schedule) is amended as follows.

      (2)
For paragraphs (g) and (h) substitute “and

(g)
all of the money raised by the issue of the shares (other than any of

them which are bonus shares) is, no later than the time mentioned in

section 175(3) of ITA 2007, employed wholly for the purpose of that

activity,”.

      (3)
In the words following the paragraphs, for “conditions in paragraphs (g) and

(h) above do” substitute “condition in paragraph (g) above does”.

A3  (1)
Paragraph 1A (failure of conditions of application) is amended as follows.

      (2)
In sub-paragraph (4)—

(a)
omit “or (h)”, and

(b)
for “sub-paragraph (4A) below” substitute “section 175(3) of ITA

2007”.

      (3)
Omit sub-paragraph (4A).

1    (1)
Paragraph 9 (other reconstructions and amalgamations)’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

27

Schedule  8,  page  101,  line  12,  at end insert—

  ‘(1B)
The individual may elect for section 135 or section 136 not to apply in respect

of the shares.’.

Mr Stephen Timms

14

Schedule  8,  page  101,  line  18,  at end insert—

‘1A
In paragraph 16 (information), omit sub-paragraph (4A).’.

Mr Stephen Timms

15

Schedule  8,  page  102,  line  19,  at end insert—

‘Consequential repeals

5A
In consequence of the amendments made by paragraphs A2, A3 and 1A,

omit—

(a)
in FA 2001, in Schedule 15, paragraphs 26 to 28,

Public Bill Committee: 2 June 2009
33

Finance Bill, continued

(b)
in FA 2004, in Schedule 18, paragraph 13(1)(f), and

(c)
in ITA 2007, in Schedule 1, paragraph 345(2)(b), (3)(a) and (13)(b).’.

Mr Stephen Timms

16

Schedule  8,  page  102,  line  20,  at end insert—

‘5B
The amendments made by paragraphs A2, A3, 1A, 3, 4 and 5A have effect in

relation to shares issued on or after 22 April 2009.’.

Mr Stephen Timms

17

Schedule  8,  page  102,  line  32,  leave out paragraph 8.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

23

Schedule  9,  page  103,  line  2,  at end insert—

‘A1(1)
Section 832(1) of ICTA is amended as follows.

      (2)
For the definition of “ordinary share capital”, substitute—

“ordinary share capital”, in relation to a company, means all the issued share

capital (by whatever name called) of the company, other than relevant

preference shares (within the meaning of Schedule 18).’.

Mr Stephen Timms

10

Schedule  9,  page  103,  line  28,  leave out ‘in any circumstances’ and insert ‘by

virtue of any term subject to which the shares are issued or held’.

Mr Stephen Timms

11

Schedule  9,  page  103,  line  39,  leave out ‘in any circumstances’ and insert ‘by

virtue of any term subject to which the shares are issued or held’.

Mr Stephen Timms

12

Schedule  9,  page  104,  line  14,  leave out sub-paragraph (i).

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

22

Schedule  9,  page  104,  line  21,  at end insert—

  ‘(6A)
An order under sub-paragraph (5) must specify that no company may be

regarded as being or having been in severe financial difficulties in any

accounting period during which it agrees or agreed to contribute to, or

increases or increased the value of, the pension arrangements of any director

or former director a sum in excess of £1 million.’.

Public Bill Committee: 2 June 2009
34

Finance Bill, continued

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

21

Schedule  9,  page  104,  line  33,  at end insert—

‘1B
Notwithstanding anything else in this Schedule, in determining whether two or

more companies are members of the same group no account shall be taken of

any interest held by UK Financial Investments Limited.”’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

24

Schedule  9,  page  104,  line  39,  after ‘by’, insert ‘paragraphs 1 to 4 of’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

25

Schedule  9,  page  104,  line  43,  at end insert—

  ‘(6A)
If a company so elects, the amendments made by paragraph (A1) of this

Schedule, do not have effect in relation to shares issued by the company—

(a)
before the date on which this Act is passed;

(b)
on or after that date under an agreement entered into before that date.’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

26

Schedule  9,  page  104,  line  44,  after ‘6’, insert ‘or 6A’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

19

Schedule  11,  page  108,  line  30,  at end insert—

‘2A
In section 45D(4) for “110” insert “160”’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

20

Schedule  11,  page  109,  line  32,  at end insert—

  ‘(5A)
An order under subsection (5) may not be made until 2 years after this Act has

passed and any subsequent change will be subject to a 2 year notice period.’.

Public Bill Committee: 2 June 2009
35

Finance Bill, continued

Mr Stephen Timms

18

Schedule  12,  page  128,  line  5,  at end insert—

‘(1A)
In determining for the purposes of subsection (1)(c) whether subsection (1) of

section 171 would have applied, it is to be assumed that subsection (1A)(b) of that

section read—

“(b)
that, at the time of the disposal, company B is resident in the

United Kingdom, or carrying on a trade in the United Kingdom

through a permanent establishment there.” ’.

New Clauses

Taxation: general anti-avoidance principle

Mr Michael Meacher

NC1

To move the following Clause:—

‘(1)
If, when determining the liability of a person to taxation, duty or similar charge

due under statute in the United Kingdom, it shall be estimated that a step or steps

have been included in a transaction giving rise to that liability or to any claim for

an allowance, deduction or relief, with such steps having been included for the

sole or one of the main purposes of securing a reduction in that liability to

taxation, deduction or similar charge with no other material economic purpose for

the inclusion of such a step being capable of demonstration by the taxpayer, then,

subject to the sole exception that the step or steps in question are specifically

permitted under the terms of any legislation promoted for the specific purpose of

permitting such use, such step or steps shall be ignored when calculating the

resulting liability to taxation, duty or similar charge.

(2)
In the interpretation of this provision a construction that would promote the

purpose or object underlying the provision shall be preferred to a construction

that would not promote that purpose or object.’.

Personal allowances for 2009-10 for those aged over 65

Mr David Gauke

Mr Mark Hoban

Mr Greg Hands

NC2

To move the following Clause:—

‘(1)
For the tax year 2009-10 the amount specified in—

(a)
section 36 of ITA 2007, and

(b)
section 257(2) of ICTA,


(personal allowance for those aged 65 to 74) is replaced with “£11,490”.

(2)
For the tax year 2009-10 the amount specified in—