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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

 

Parliamentary Star - white    

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—


 
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