9

House of Commons

Tuesday 19 May 2009

Public Bill Committee

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 in the order to be proposed by Mr Stephen

Timms.

Mr Stephen Timms

That the Committee shall meet—

     on Tuesdays at 10.30 a.m. and 4.30 p.m., and

  on Thursdays (other than Thursday 4 June) at 9.00 a.m. and 1.00 p.m.,

when the House is sitting.

Mr Stephen Timms

To move, That the order in which proceedings are taken shall be: Clauses 1 to 5;

Schedule 1; Clause 6; Schedules 2 and 3; Clauses 10, 12, and 13; Schedule 4; Clauses 15

and 17; Schedule 5; Clauses 18, 19 and 21 to 23; Schedule 6; Clauses 24 to 26; Schedule

7; Clause 27; Schedule 8; Clause 28; Schedule 9; Clause 29; Schedule 10; Clause 30;

Schedule 11; Clause 31; Schedule 12; Clause 32; Schedule 13; Clauses 33 and 34;

Schedule 14; Clause 35; Schedule 15; Clause 36; Schedule 16; Clause 37; Schedule 17;

Clause 38; Schedule 18; Clauses 39 and 40; Schedule 19; Clause 41; Schedule 20; Clauses

42 and 43; Schedule 21; Clause 44; Schedule 22; Clauses 45 and 46; Schedule 23; Clauses

47 and 48; Schedule 24; Clause 49; Schedule 25; Clause 50; Schedule 26; Clause 51;

Schedule 27; Clauses 52 and 53; Schedule 28; Clauses 54 to 58; Schedule 29; Clauses 59

to 61; Schedule 30; Clause 62; Schedule 31; Clause 63; Schedule 32; Clause 64; Schedule

33; Clause 65; Schedule 34; Clauses 66 to 71; Schedule 35; Clauses 72 to 75; Schedule

36; Clauses 76 to 82; Schedule 37; Clause 83; Schedule 38; Clause 84; Schedule 39;

Clause 85; Schedule 40; Clause 86; Schedule 41; Clause 87; Schedule 42; Clause 88;

Schedule 43; Clause 89; Schedule 44; Clause 90; Schedule 45; Clause 91; Schedule 46;

Clauses 93 and 94; Schedule 47; Clause 95; Schedule 48; Clause 96; Schedule 49; Clause

97; Schedule 50; Clause 98; Schedule 51; Clause 99; Schedule 52; Clause 100; Schedule

53; Clause 101; Schedule 54; Clauses 102 to 105; Schedule 55; Clause106; Schedule 56;

Public Bill Committee: 19 May 2009

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Finance Bill, continued

Clauses 107 and 108; Schedule 57; Clause 109; Schedule 58; Clauses 110 to 117;

Schedule 59; Clause 118; Schedule 60; Clauses 119 to 122; Schedule 61; Clauses 123 and

124; new Clauses; new Schedules; Clauses 125 and 126.

Mr David Gauke

Mr Mark Hoban

Mr Greg Hands

1

Clause  2,  page  2,  line  2,  at end add—

‘(3)	The amount specified in Section 12 of ITA 2007 shall similarly be £37,400.’.

Mr Jeremy Browne

2

Clause  3,  page  2,  line  7,  at end insert—

‘(1A)

Within six months of the commencement of this section, the Treasury shall

publish an assessment of the level of the personal allowance, including in

particular an estimation of the net personal income level of an individual whose

personal income is taxable at no more than the basic rate if the amount specified

under subsection (1) were to read—

(a)

£7,000,

(b)

£8,000,

(c)

£9,000

(d)	£10,000.’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

5

Schedule  3,  page  75,  line  7,  at end insert—

‘(10)

Paragraphs 2(3) and (4) shall not apply where the supplier can demonstrate that

the terms of its contract does not permit additional VAT to be charged (i.e. if

the contract provides otherwise for the purposes of paragraph 21(2) of this

Schedule) and that at the time the contract was entered into the supplier had no

intention or knowledge that it would become connected with the person to

whom the supply is made.’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

6

Schedule  3,  page  77,  line  8,  after ‘persons)’, insert ‘save for section 839(5)(b)’.

Public Bill Committee: 19 May 2009

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Finance Bill, continued

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

7

Schedule  3,  page  77,  line  19,  at end insert—

‘(c)	may only apply to supplies made after the date of such order or where

supplies have been contracted to be made prior to such order and the

contract allows for additional consideration to be paid’.

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 Jeremy Browne

3

Page  11,  line  1,  leave out Clause 17.

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.’.

Public Bill Committee: 19 May 2009

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Finance Bill, continued

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—

(a)	section 37 of ITA 2007, and

(b)	section 257(3) of ICTA,

(personal allowance for those aged 75 and over) is replaced with “£11,640”’.

Thresholds for residential property

Mr David Gauke

Mr Mark Hoban

Mr Greg Hands

NC3

To move the following Clause:—

‘(1)	A land transaction is exempt from the charge to stamp duty land tax if—

(a)	it is a relevant acquisition of land which consists entirely of residential

property,

(b)	the relevant chargeable consideration for the transaction is not more than

£250,000, and

(c)	the purchaser is a first time purchaser.

(2)	In paragraph (1)(a) a “relevant acquisition of land” means an acquisition of a

major interest in land other than—

(a)	the grant of a lease for a term of less than 21 years, or

(b)	the assignment of a lease which has less than 21 years to run.

(3)	In paragraph (1)(b) the “relevant chargeable consideration for the transaction”

means—

(a)	the chargeable consideration for the transaction, or

(b)	where the transaction is one of a number of linked transactions, the total

of the chargeable consideration for all those transactions.

(4)	The Treasury shall by regulation define the meaning of “first time purchaser.”’.

Order of the House [6 MAY 2009]

That the following provisions shall apply to the Finance Bill:

1.	Clauses 7, 8, 9, 11, 14, 16, 20 and 92 be committed to a Committee of the

Public Bill Committee: 19 May 2009

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Finance Bill, continued

whole House;

2.	the remainder of the Bill be committed to a Public Bill Committee; and

3.	when the provisions of the Bill considered by the Committee of the whole

House and the Public Bill Committee have been reported to the House, the

Bill be proceeded with as if it had been reported as a whole to the House from

the Public Bill Committee.

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Revised 19 May 2009