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Public Bill Committee: 16 June 2009                     

133

 

Finance Bill, continued

 
 

(c)    

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

 

the mixed consideration (“company R”) does not exceed

 

(d)    

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

 

company R receives’.

 

Mr Stephen Timms

 

246

 

Parliamentary Star    

Schedule  40,  page  316,  leave out lines 28 to 44 and insert—

 

‘(2)    

As regards the licence, or each licence, which company R acquires,

 

company R is to be treated as if it had acquired the licence for nil

 

consideration.

 

(3)    

In a case where company R disposes of only one licence, company R

 

is to be treated as if, on the disposal of the licence, there had arisen a

 

gain of—equation: plus[(*n*)char[C],minus[char[N]]]

 

(4)    

In a case where company R disposes of two or more licences, as

 

regards each licence disposed of, company R is to be treated as if, on

 

the disposal of the licence, there had arisen a gain of—equation: cross[id[plus[char[C],minus[char[N]]]],over[char[D],times[char[T],char[D]]]]

 

    

where—

 

D is the value of the licence disposed of;

 

TD is total value of all the licences disposed of.’.

 

Mr Stephen Timms

 

247

 

Parliamentary Star    

Schedule  40,  page  317,  line  2,  after ‘swap’ insert ‘—

 

(a)    

whatever the no gain/no loss amount (“N”) of the company

 

that gives the mixed consideration (“company G”), and

 

(b)    

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

 

which company G gives’.

 

Mr Stephen Timms

 

248

 

Parliamentary Star    

Schedule  40,  page  317,  leave out lines 3 to 7 and insert—

 

‘(2)    

In a case where company G acquires only one licence, company G is

 

to be treated as if it had acquired the licence for a consideration of—equation: plus[char[N],char[C]]

 

(3)    

In a case where company G acquires two or more licences, as regards

 

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

 

the licence for a consideration of—equation: cross[id[plus[char[N],char[C]]],over[char[A],times[char[T],char[A]]]]

 

    

where—

 

A is the value of the licence acquired;

 

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


 
 

Public Bill Committee: 16 June 2009                     

134

 

Finance Bill, continued

 
 

Mr Stephen Timms

 

249

 

Parliamentary Star    

Schedule  40,  page  317,  line  8,  leave out ‘its licence’ and insert ‘a licence under the

 

swap’.

 

Mr Stephen Timms

 

250

 

Parliamentary Star    

Schedule  40,  page  317,  line  14,  leave out from ‘acquires’ to ‘company’ in line 15

 

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

 

licence,’.

 

Mr Stephen Timms

 

251

 

Parliamentary Star    

Schedule  40,  page  317,  leave out lines 17 to 20 and insert—

 

‘(7)    

In this section the reference to the no gain/no loss amount of company

 

G is a reference to—

 

(a)    

in a case where company G disposes of only one licence,

 

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

 

disposal, or

 

(b)    

in a case where company G disposes of two or more licences,

 

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

 

relation to all of those disposals.’.

 

Mr Stephen Timms

 

252

 

Parliamentary Star    

Schedule  40,  page  317,  line  22,  at end insert—

 

  ‘(2A)  

In subsection (1), after “section 194” insert “and this section”.’.

 

Mr Stephen Timms

 

253

 

Parliamentary Star    

Schedule  40,  page  317,  line  32,  leave out ‘only’ and insert ‘consideration’.

 

Mr Stephen Timms

 

254

 

Parliamentary Star    

Schedule  40,  page  318,  line  2,  after ‘licence’ insert ‘, as determined at the time the

 

swap arrangements are entered into’.

 

Mr Stephen Timms

 

255

 

Parliamentary Star    

Schedule  40,  page  318,  line  2,  at end insert—

 

‘“swap arrangements”, in relation to a licence-consideration swap

 

or a mixed-consideration swap, means the arrangements under

 

which the swap takes place;”.

 

      (7)  

After subsection (5A) insert—

 

“(5B)    

In any of sections 195B to 195E, a reference to the value of a licence

 

comprised in disposal A or disposal B (see section 195A) is a reference

 

to the value of the licence as determined under the swap arrangements

 

at the time the swap arrangements are entered into.”.’.

 

Mr Stephen Timms

 

256

 

Parliamentary Star    

Schedule  40,  page  320,  line  36,  at end insert ‘and disposal consideration’.


 
 

Public Bill Committee: 16 June 2009                     

135

 

Finance Bill, continued

 
 

Mr Stephen Timms

 

257

 

Parliamentary Star    

Schedule  40,  page  320,  line  37,  leave out ‘198C’ and insert ‘198G’.

 

Mr Stephen Timms

 

258

 

Parliamentary Star    

Schedule  40,  page  320,  line  46,  leave out ‘P’s ring fence trade’ and insert ‘one or

 

more of the following trades—

 

(i)    

P’s ring fence trade;

 

(ii)    

if P is a member of a group of companies (within the

 

meaning given in section 170), a ring fence trade of

 

another member of that group’.

 

Mr Stephen Timms

 

259

 

Parliamentary Star    

Schedule  40,  page  321,  line  1,  at end insert—

 

‘(2A)    

If the disposal consists of—

 

(a)    

disposal of a licence to which section 195D(3) applies, or

 

(b)    

disposal of two or more licences to which section 195D(4)

 

applies,

 

    

the consideration for the disposal is to be taken to be the whole of the

 

non-licence consideration obtained on the disposal (which is referred

 

to as “C” in section 195D).

 

(2B)    

Accordingly, in sections 198A to 198G (including section 198A(4)),

 

any reference to the consideration obtained on the disposal has effect

 

subject to subsection (2A).’.

 

Mr Mark Hoban

 

Mr David Gauke

 

Mr Greg Hands

 

263

 

Parliamentary Star    

Schedule  40,  page  321,  line  34,  leave out ‘(6)’ and insert ‘(7)’.

 

Mr Mark Hoban

 

Mr David Gauke

 

Mr Greg Hands

 

262

 

Parliamentary Star    

Schedule  40,  page  321,  line  39,  at end insert—

 

‘(7)    

For the purposes of this section it shall be deemed that section 155 includes an

 

additional class, “Class 9 - well costs incurred as part of exploration or

 

exploitation activities”.’.

 

Mr Mark Hoban

 

Mr David Gauke

 

Mr Greg Hands

 

265

 

Parliamentary Star    

Schedule  40,  page  322,  line  7,  leave out ‘(6)’ and insert ‘(7)’.


 
 

Public Bill Committee: 16 June 2009                     

136

 

Finance Bill, continued

 
 

Mr Mark Hoban

 

Mr David Gauke

 

Mr Greg Hands

 

264

 

Parliamentary Star    

Schedule  40,  page  322,  line  12,  at end insert—

 

‘(7)    

For the purposes of this section it shall be deemed that section 155 includes an

 

additional class, “Class 9 - well costs incurred as part of exploration or

 

exploitation activities”.’.

 

Mr Mark Hoban

 

Mr David Gauke

 

Mr Greg Hands

 

266

 

Parliamentary Star    

Schedule  40,  page  322,  line  12,  at end insert—

 

‘198H

 Qualification for section 175 relief

 

(1)    

This section applies for the purposes of sections 198A to 198G.

 

(2)    

Section 175 shall apply for the purposes of this section as it applies for the

 

purposes of sections 152 to 158.’.

 


 

Mr Mark Hoban

 

Mr David Gauke

 

Mr Greg Hands

 

267

 

Parliamentary Star    

Schedule  44,  page  336,  line  37,  leave out ‘and’ and insert ‘or’. 

 


 

Mr David Gauke

 

Mr Mark Hoban

 

Mr Greg Hands

 

75

 

Clause  91,  page  45,  line  2,  leave out ‘aspire’ and insert ‘use all reasonable

 

endeavours to achieve’.

 

Mr David Gauke

 

Mr Mark Hoban

 

Mr Greg Hands

 

76

 

Clause  91,  page  45,  line  3,  at end insert ‘and set out the rights and responsibilities

 

of taxpayers and other persons with whom HMRC deals’.

 

Mr David Gauke

 

Mr Mark Hoban

 

Mr Greg Hands

 

77

 

Clause  91,  page  45,  line  5,  leave out ‘regularly’.


 
 

Public Bill Committee: 16 June 2009                     

137

 

Finance Bill, continued

 
 

Mr David Gauke

 

Mr Mark Hoban

 

Mr Greg Hands

 

78

 

Clause  91,  page  45,  line  5,  after ‘review’, insert ‘at least once every year’.

 

Mr David Gauke

 

Mr Mark Hoban

 

Mr Greg Hands

 

79

 

Clause  91,  page  45,  line  5,  after ‘review’, insert ‘at least once every 3 years’.

 

Mr David Gauke

 

Mr Mark Hoban

 

Mr Greg Hands

 

80

 

Clause  91,  page  45,  line  5,  leave out ‘and’ and insert—

 

‘(b)    

consult with stakeholders in carrying out the review, and’.

 


 

Mr Mark Hoban

 

Mr David Gauke

 

Mr Greg Hands

 

223

 

Parliamentary Star    

Schedule  46,  page  339,  line  6,  at end insert—

 

‘(3)    

The Treasury may by regulations define appropriate accounting arrangements.’.

 

Mr Mark Hoban

 

Mr David Gauke

 

Mr Greg Hands

 

219

 

Parliamentary Star    

Schedule  46,  page  339,  line  8,  leave out paragraph 2.

 

Mr Mark Hoban

 

Mr David Gauke

 

Mr Greg Hands

 

220

 

Parliamentary Star    

Schedule  46,  page  339,  line  19,  leave out ‘Type A or Type B’.

 

Mr Mark Hoban

 

Mr David Gauke

 

Mr Greg Hands

 

221

 

Parliamentary Star    

Schedule  46,  page  339,  line  21,  leave out subsection (2).

 

Mr Mark Hoban

 

Mr David Gauke

 

Mr Greg Hands

 

222

 

Parliamentary Star    

Schedule  46,  page  339,  line  24,  leave out ‘Type B’.


 
 

Public Bill Committee: 16 June 2009                     

138

 

Finance Bill, continued

 
 

Mr Mark Hoban

 

Mr David Gauke

 

Mr Greg Hands

 

224

 

Parliamentary Star    

Schedule  46,  page  341,  line  28,  at end insert—

 

‘(3)    

For the purposes of this Schedule a reasonable excuse for failure to comply

 

includes any circumstance where the failure is attributable to any matter outside

 

the person’s control or any matter of which a person could not reasonably be

 

expected to be aware.’.

 

Mr Mark Hoban

 

Mr David Gauke

 

Mr Greg Hands

 

225

 

Parliamentary Star    

Schedule  46,  page  341,  line  41,  at end insert—

 

‘(3)    

No penalty may be assessed under paragraphs 5 to 7 of this Schedule if the matter

 

in question has given rise to any civil or criminal penalty under any other

 

legislation or enactment whatsoever.’.

 

Mr Mark Hoban

 

Mr David Gauke

 

Mr Greg Hands

 

226

 

Parliamentary Star    

Schedule  46,  page  343,  line  4,  after ‘calculated’, insert ‘reasonably’.

 

Mr Mark Hoban

 

Mr David Gauke

 

Mr Greg Hands

 

227

 

Parliamentary Star    

Schedule  46,  page  343,  line  8,  at end insert—

 

‘(4)    

Accounting arrangements are to be regarded as enabling the liability to taxes and

 

duties of the company to be calculated reasonably accurately if the accuracy with

 

which those liabilities can be calculated is within the normal bounds of

 

materiality as that principle is defined for accounting purposes.’.

 

Mr David Gauke

 

Mr Mark Hoban

 

Mr Greg Hands

 

65

 

Schedule  46,  page  343,  line  20,  leave out ‘or officer’.

 


 

Mr David Gauke

 

Mr Mark Hoban

 

Mr Greg Hands

 

81

 

Clause  93,  page  45,  line  27,  leave out ‘£25,000’ and insert ‘the greater of—

 

(i)    

£25,000 or

 

(ii)    

a percentage of the person’s income as determined by an order

 

made by the Treasury.’.


 
 

Public Bill Committee: 16 June 2009                     

139

 

Finance Bill, continued

 
 

Mr David Gauke

 

Mr Mark Hoban

 

Mr Greg Hands

 

82

 

Clause  93,  page  45,  line  30,  after ‘deliberate’, insert ‘and concealed’.

 

Mr David Gauke

 

Mr Mark Hoban

 

Mr Greg Hands

 

83

 

Clause  93,  page  45,  leave out lines 32 to 40.

 

Mr David Gauke

 

Mr Mark Hoban

 

Mr Greg Hands

 

84

 

Clause  93,  page  46,  line  14,  at end insert—

 

‘(5A)    

No information may be published without the consent of the Chief Executive of

 

Her Majesty’s Revenue and Customs.’.

 

Mr David Gauke

 

Mr Mark Hoban

 

Mr Greg Hands

 

85

 

Clause  93,  page  46,  line  18,  at end insert ‘and

 

(c)    

inform the person of his right of appeal under subsection (11A) below’.

 

Mr David Gauke

 

Mr Mark Hoban

 

Mr Greg Hands

 

86

 

Clause  93,  page  46,  line  36,  at end insert—

 

‘(11A)    

No information may be published until the person has had the opportunity to

 

appeal to the First Tier Tribunal for an in-camera hearing against the decision to

 

publish details of that person.

 

(11B)    

The Treasury may by order made by statutory instrument make provision for and

 

in connection with appeals to the First Tier Tribunal under subsection (11A).’.

 


 

Mr David Gauke

 

Mr Mark Hoban

 

Mr Greg Hands

 

87

 

Clause  94,  page  47,  line  11,  leave out subsections (2) to (5).

 

Mr David Gauke

 

Mr Mark Hoban

 

Mr Greg Hands

 

88

 

Clause  94,  page  47,  line  19,  at end insert—

 

‘(3A)    

An order under this section may not—


 
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