Public Bill Committee: 16 June 2009

128

Finance Bill, continued

(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

193

Schedule  35,  page  286,  line  13,  leave out ‘a quarterly’ and insert ‘an annual’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

194

Schedule  35,  page  286,  line  37,  leave out ‘a quarterly’ and insert ‘an annual’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

188

Schedule  35,  page  286,  line  42,  at end insert—

‘(2A)

To the extent such amount exceeds that referred to in paragraph 11(2) the

amount arrived at under paragraph 3(2) in relation to the arrangement is a

protected pension input amount to the extent that it is attributable to

contributions paid 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) 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 year.’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

189

Schedule  35,  page  286,  line  44,  leave out first ‘the’ and insert ‘a’.

Public Bill Committee: 16 June 2009

129

Finance Bill, continued

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

195

Schedule  35,  page  289,  line  20,  leave out ‘a quarterly’ and insert ‘an annual’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

197

Schedule  35,  page  290,  line  3,  leave out from ‘contributions’ to end of line and

insert ‘which—

(a)	are paid on a quarterly or more frequent basis pursuant to an agreement

for the payment of such contributions, or

(b)	if paid less frequently than quarterly, half of the sum of the two highest

contributions made in the periods 6 April to 21 April in each of the tax

years 2006-07, 200-08 and 2008-09 and for these purposes if only one

such contribution has been made in those three periods, half of that

amount.’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

196

Schedule  35,  page  290,  line  3,  leave out ‘a quarterly’ and insert ‘an annual’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

205

Schedule  35,  page  290,  line  21,  leave out paragraph 18.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

204

Schedule  35,  page  291,  line  7,  at end insert ‘but this Schedule shall not apply where

the individual concerned is aged 50 or over at some time in the tax years 2009-10 and

2010-11.’.

Mr Mark Todd

181

Clause  78,  page  39,  line  37,  leave out ‘rate’ and insert ‘amount’.

Public Bill Committee: 16 June 2009

130

Finance Bill, continued

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

260

Clause  81,  page  42,  leave out lines 22 to 25.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

261

Clause  81,  page  43,  leave out lines 8 to 11.

Mr Stephen Timms

229

Schedule  40,  page  315,  line  8,  leave out ‘only’ and insert ‘consideration’.

Mr Stephen Timms

230

Schedule  40,  page  315,  line  8,  leave out ‘and C’ and insert ‘C and D’.

Mr Stephen Timms

231

Schedule  40,  page  315,  line  11,  leave out ‘and D’ and insert ‘, C and E’.

Mr Stephen Timms

232

Schedule  40,  page  315,  line  12,  leave out ‘a UK licence that relates to a developed

area (“licence A”)’ and insert ‘one or more UK licences’.

Mr Stephen Timms

233

Schedule  40,  page  315,  line  14,  after ‘length’ insert ‘(“disposal A”)’.

Mr Stephen Timms

234

Schedule  40,  page  315,  line  15,  leave out ‘another UK licence that relates to a

developed area (“licence B”)’ and insert ‘one or more UK licences’.

Mr Stephen Timms

235

Schedule  40,  page  315,  line  17,  after ‘length’ insert ‘(“disposal B”)’.

Mr Stephen Timms

236

Schedule  40,  page  315,  line  17,  at end insert—

‘(4A)

Condition C is that either or both of the following paragraphs

applies—

(a)	the licence, or at least one of the licences, comprised in

disposal A relates to a developed area;

Public Bill Committee: 16 June 2009

131

Finance Bill, continued

(b)	the licence, or at least one of the licences, comprised in

disposal B relates to a developed area.’.

Mr Stephen Timms

237

Schedule  40,  page  315,  line  18,  leave out from ‘Condition’ to end of line 29 and

insert “D is that both—

(a)	disposal A is the only consideration given for disposal B, and

(b)	disposal B is the only consideration given for disposal A.

(6)	Condition E is that either—

(a)	disposal A is the only consideration given for disposal B, or

(b)	disposal B is the only consideration given for disposal A,

(and accordingly one of the disposals is part of the consideration given

for the other disposal).’

Mr Stephen Timms

238

Schedule  40,  page  315,  line  35,  leave out ‘only’ and insert ‘consideration’.

Mr Stephen Timms

239

Schedule  40,  page  315,  line  36,  leave out from ‘a’ to end of line 5 on page 316 and

insert ‘licence-consideration swap.

(2)	Each company participating in the swap is to be treated as follows.

(3)	As regards the licence, or each licence, which the company disposes

of, the company is to be treated as if it had disposed of that licence for

a consideration of such amount as to secure that on the disposal neither

a gain nor a loss accrues to the company.

(4)	In a case where the company acquires only one licence, the company

is to be treated as if it had acquired the licence for a consideration of

the same amount as the deemed disposal consideration.

(5)	In a case where the company acquires two or more licences, as regards

each licence acquired, the company is to be treated as if it had acquired

that licence for a consideration of—

where—

DDC is the deemed disposal consideration;

A is the value of the licence acquired;

TA is total value of all the licences acquired.

(6)	In this section “deemed disposal consideration”, in relation to a

company participating in the swap, means—

(a)	the amount of the consideration for which the company is,

under subsection (3), treated as having disposed of its licence

(if the company disposes of only one licence), or

(b)	the aggregate of all such amounts (if the company disposes of

two or more licences).’.

Public Bill Committee: 16 June 2009

132

Finance Bill, continued

Mr Stephen Timms

240

Schedule  40,  page  316,  line  7,  after ‘swap’ insert ‘if—

(c)	the no gain/no loss amount (“N”) of the company that receives

the mixed consideration (“company R”) exceeds

(d)	the amount of non-licence consideration (“C”) which

company R receives’.

Mr Stephen Timms

241

Schedule  40,  page  316,  leave out lines 8 to 12 and insert—

‘(2)	In a case where company R acquires only one licence, company R is

to be treated as if it had acquired the licence for a consideration of—

(3)	In a case where company R acquires two or more licences, as regards

each licence acquired, company R is to be treated as if it had acquired

the licence for a consideration of—

where—

A is the value of the licence acquired;

TA is total value of all the licences acquired.’.

Mr Stephen Timms

242

Schedule  40,  page  316,  line  13,  leave out ‘its licence’ and insert ‘a licence under

the swap’.

Mr Stephen Timms

243

Schedule  40,  page  316,  line  19,  leave out from ‘acquires’ to ‘company’ in line 20

and insert ‘a licence under the swap (“company G”) subsequently disposes of the

licence,’.

Mr Stephen Timms

244

Schedule  40,  page  316,  leave out lines 22 to 25 and insert—

‘(7)	In this section the reference to the no gain/no loss amount of company

R is a reference to—

(a)	in a case where company R disposes of only one licence,

company R’s no gain/no loss amount in relation to that

disposal, or

(b)	in a case where company R disposes of two or more licences,

the aggregate of company R’s no gain/no loss amounts in

relation to all of those disposals.’.

Mr Stephen Timms

245

Schedule  40,  page  316,  line  27,  after ‘swap’ insert ‘if—

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Revised 16 June 2009