121

House of Commons

Tuesday 16 June 2009

Public Bill Committee

New Amendments handed in are marked thus

Amendments which will comply with the required notice period at their next appearance

Finance Bill

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

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Note

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

[19 May 2009].

Mr Stephen Timms

206

Clause  57,  page  27,  line  27,  leave out subsection (2).

Mr Stephen Timms

207

Clause  59,  page  28,  line  16,  after ‘made’ insert ‘under the law of a territory outside

the United Kingdom’.

Mr Greg Hands

Mr Mark Hoban

Mr David Gauke

217

Clause  59,  page  28,  line  16,  after ‘made’, insert ‘by any taxing authority’.

Public Bill Committee: 16 June 2009

122

Finance Bill, continued

Mr Stephen Timms

208

Clause  59,  page  29,  line  6,  after ‘made’ insert ‘under the law of a territory outside

the United Kingdom’.

Mr Greg Hands

Mr Mark Hoban

Mr David Gauke

218

Clause  60,  page  29,  line  34,  after ‘costs’, insert ‘, and

‘(c)	the taxpayer has entered into a scheme or arrangement a main purpose of

which is to secure that the included funding costs are less than the

national funding costs’.’.

Mr Stephen Timms

209

Clause  60,  page  29,  line  36,  leave out ‘paragraph (b) and (c)’ and insert ‘subsection

(3)’.

Mr Stephen Timms

210

Clause  60,  page  30,  line  4,  leave out ‘paragraph (b) and (c) total’ and insert

‘subsection (3) total (before the application of subsection (3B))’.

Mr Stephen Timms

211

Clause  60,  page  30,  leave out lines 11 to 13.

Mr Stephen Timms

212

Clause  60,  page  30,  line  15,  at end insert—

‘“subsection (3) total” means the amount to be taken into account under

subsection (3) for the purposes of section 797(1).’.

Mr David Gauke

Mr Mark Hoban

Mr Greg Hands

73

Clause  67,  page  32,  line  6,  leave out ‘12 January’ and insert ‘1 April’.

Public Bill Committee: 16 June 2009

123

Finance Bill, continued

Mr David Gauke

Mr Mark Hoban

Mr Greg Hands

74

Clause  67,  page  32,  line  7,  leave out subsections (3) and (4).

Mr Stephen Timms

213

Clause  70,  page  34,  line  24,  leave out ‘section 105A’ and insert ‘sections 105A and

105B’.

Mr Stephen Timms

214

Clause  70,  page  34,  leave out lines 35 to 37 and insert—

‘(d)	the net amount payable by P in relation to the lease by way of lease

premium is greater than zero.’.

Mr Stephen Timms

215

Clause  70,  page  34,  line  43,  leave out from ‘the’ to end of line 21 on page 35 and

insert ‘net amount payable by P in relation to the lease by way of lease premium.

(3)	For provision about the application of this section in relation to certain

leases with break clauses, see section 105B.

(4)	For the purposes of this section the net amount payable by P in relation

to a lease by way of lease premium is—

(a)	the total amount (if any) that has been paid, or is or will become

payable, by P in relation to the lease by way of lease premium,

less

(b)	any amount within paragraph (a) that has been repaid or is or will

become repayable.

(5)	In this section and section 105B “lease premium” means any premium

payable—

(a)	under a lease, or

(b)	otherwise under the terms on which a lease is granted.

(6)	In the application of this section to Scotland, “premium” includes a

grassum.

105B	Lease premiums in the case of leases with break clauses

(1)	This section applies to a lease (“the original lease”) that contains one or

more relevant break clauses.

(2)	For the purposes of this section—

(a)	“break clause” means a provision of a lease that gives a person a

right to terminate it so that its term is shorter than it otherwise

would be, and

(b)	a break clause contained in the original lease is “relevant” if the

right to terminate the lease that it confers is capable of being

Public Bill Committee: 16 June 2009

124

Finance Bill, continued

exercised in such a way that the term of the original lease is 10

years or less.

(3)	For the purposes of section 105A—

(a)	the term of the original lease, and

(b)	the net amount payable by P in relation to the lease by way of

lease premium,

are to be determined on the assumption that any relevant break clause is

exercised in such a way that the term of the lease is as short as possible.

(4)	If a relevant break clause is not in fact exercised in such a way that the

term of the original lease is as short as possible, the parties to the lease

are treated for the purposes of section 105A as if they were parties to

another lease (a “notional lease”) the term of which—

(a)	begins immediately after the time at which the term of the

original lease would have ended, if that break clause had been so

exercised, and

(b)	ends at the time mentioned in subsection (5).

(5)	The term of a notional lease ends—

(a)	at the time the term of the original lease would end, on the

assumption that any relevant break clause that is exercisable only

after the beginning of the term of the notional lease is exercised

in such a way that the term of the original lease is as short as

possible, or

(b)	if earlier, the tenth anniversary of the beginning of the term of the

original lease.

(6)	For the purposes of section 105A, the net amount payable by P in relation

to a notional lease by way of lease premium is, in the case of a notional

lease the term of which ends under paragraph (a) of subsection (5)—

(a)	the net amount that would be payable by P in relation to the

original lease by way of lease premium on the assumption

mentioned in that paragraph, less

(b)	any part of that amount that has already been attributed to a

period in respect of a lease premium under section 105(4B)(b).

(7)	For the purposes of section 105A, the net amount payable by P in relation

to a notional lease by way of lease premium is, in the case of notional

lease the term of which ends under paragraph (b) of subsection (5), the

relevant proportion of—

(a)	the net amount that would be payable by P in relation to the

original lease by way of lease premium, on the assumption that

no break clause is exercised, less

(b)	any part of that amount that has already been attributed to a

period in respect of a lease premium under section 105(4B)(b).

(8)	In subsection (7) “the relevant proportion” means—

where—

D is the term of the notional lease (in days);

E is the sum of—

(a)	the term of the notional lease (in days), and

Public Bill Committee: 16 June 2009

125

Finance Bill, continued

(b)	the number of days by which the term of the original lease would

exceed 10 years, on the assumption that no break clause is

exercised.”’.

Mr Stephen Timms

216

Clause  70,  page  35,  line  32,  leave out ‘section 105A’ and insert ‘sections 105A and

105B’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

198

Schedule  35,  page  279,  line  18,  leave out ‘£20,000’ and insert ‘£50,000’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

199

Schedule  35,  page  279,  line  24,  leave out ‘£20,000’ and insert ‘£50,000’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

200

Schedule  35,  page  279,  line  25,  leave out ‘£20,000’ and insert ‘£50,000’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

201

Schedule  35,  page  280,  line  25,  leave out ‘£20,000’ and insert ‘£50,000’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

202

Schedule  35,  page  280,  line  36,  leave out from ‘year’ to end of line 38.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

203

Schedule  35,  page  280,  line  39,  leave out sub-paragraph (2).

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

228

Schedule  35,  page  283,  line  15,  leave out paragraphs 7 to 13 and insert—

Public Bill Committee: 16 June 2009

126

Finance Bill, continued

‘Protected pension input amounts

6A  (1)

A protected pension input amount in relation to an individual is any amount of

regular contributions exceeding the special annual allowance, having been

paid immediately prior to 22 April 2009 or where an application to pay regular

contributions was received by the scheme administrator prior to noon on 22

April 2009.

(2)	Regular premiums are—

(a)	quarterly or more frequent contributions in which case the protected

pension input amount is the highest amount of regular premium paid

in the tax-year immediately preceding the current tax-year multiplied

by the frequency of contributions, or

(b)	annual or recurring single contributions in which case the protected

pension input amount is the total contributions paid to the scheme or

arrangement over the three tax-years immediately preceding the

current tax-year dividend by three.

(3)	In the case of a defined benefit scheme, the pension input value of further

accruals for tax-years 2009-10 and 2010-11 is protected as long as there is no

material change to the scheme that results in the rate of benefit accrual

increasing.’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

182

Schedule  35,  page  283,  line  40,  after ‘paid’, insert ‘under this sub-paragraph or

under sub-paragraph (3A)’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

190

Schedule  35,  page  284,  line  3,  leave out ‘a quarterly’ and insert ‘an annual’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

183

Schedule  35,  page  284,  line  11,  at end insert—

‘(3A)

To the extent such amount exceeds that referred to in paragraph 8(3), relevant

added years contributions also include contributions paid—

(a)	with a view to securing that the calculation of benefits under the

arrangement is by reference to a period of service in excess of

pensionable service by the individual; and

(b)	which do not exceed the average amount of contributions made by the

individual in each of the three tax years ending 5 April 2009 (or if the

individual has not been a member of the pension scheme for those tax

years, the contributions made, in a case where he has been a member

for only one complete tax year, during that tax year, and the average

contributions, if he has been a member of this scheme for two

complete tax years, for those two tax years) or if provided that if in any

of those years the contribution exceeded the amount of the annual

allowance for that tax year (see section 228 of FA 2004) such

contribution shall be taken to be an amount equal to the annual

allowance for that tax year.’.

Public Bill Committee: 16 June 2009

127

Finance Bill, continued

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

184

Schedule  35,  page  284,  line  41,  after ‘paid’, insert ‘under this sub-paragraph or

under sub-paragraph (3A)’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

191

Schedule  35,  page  284,  line  46,  leave out ‘a quarterly’ and insert ‘an annual’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

185

Schedule  35,  page  285,  line  6,  at end insert—

‘(3A)

To the extent such amount exceeds that referred to in paragraph 9(3), relevant

added years contributions also include contributions paid—

(a)	with a view to securing that the calculation of benefits under the

arrangement is by reference to a period of service in excess of

pensionable service by the individual; and

(b)	which do not exceed the average amount of contributions made by the

individual in each of the three tax years ending 5 April 2009 (or if the

individual has not been a member of the pension scheme for those tax

years, the contributions made, in a case where he has been a member

for only one complete tax year, during that tax year, and the average

contributions, if he has been a member of this scheme for two

complete tax years, for those two tax years) or if provided that if in any

of those years the contribution exceeded the amount of the annual

allowance for that tax year (see section 228 of FA 2004) such

contribution shall be taken to be an amount equal to the annual

allowance for that tax year.’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

186

Schedule  35,  page  285,  line  39,  after ‘paid’, insert ‘under this sub-paragraph or

under sub-paragraph (3A)’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

192

Schedule  35,  page  285,  line  44,  leave out ‘a quarterly’ and insert ‘an annual’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

187

Schedule  35,  page  286,  line  4,  at end insert—

‘(3A)

To the extent such amount exceeds that referred to in paragraph 10(3) or 10(5),

relevant added years contributions also include contributions paid—

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Revised 16 June 2009