House of Commons Public Bill Committee Proceedings

House of Commons

Session 2008 - 09
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Other Bills before Parliament

Public Bill Committee Proceedings: 9 June 2009
32

Finance Bill, continued


for the purpose of applying section 747(3) to (5) for determining the

sum (if any) chargeable on the UK resident company under section

747(4)(a) (but for no other purpose).

(4)
The Commissioners may grant the application only if they are satisfied

that the specified amount does not exceed the relevant amount.

(5)
In subsection (4) “the relevant amount” means the amount (if any) by

which it is just and reasonable that the chargeable profits should be

treated as reduced, having regard to the effect of Parts 3 and 4 of

Schedule 15 to FA 2009 on amounts brought into account for the

purposes of corporation tax by the payer, or any other company.”

24  (1)
Section 751B (supplementary) is amended as follows.

      (2)
In the heading, for “Section 751A” substitute “Sections 751A and 751AA”.

      (3)
In subsections (1), (2), (3) (in each place) and (5), after “751A” insert “or

751AA”.

      (4)
In subsection (8)—

(a)
after ““the relevant amount”” insert “—

(a)
in the case of an appeal in respect of the refusal of an

application under section 751A,”, and

(b)
after “mentioned in that subsection” insert “, and

(b)
in the case of an appeal in respect of the refusal of an

application under section 751AA, has the meaning

given by subsection (5) of that section.”

      (5)
In subsection (10)—

(a)
after “751A” insert “or 751AA”, and

(b)
after “751A(1)” insert “or 751AA(1)”.

Commencement

25  (1)
The amendments made by this Part have effect in relation to accounting

periods of controlled foreign companies ending on or after 1 January 2010.

      (2)
For this purpose “accounting period” and “controlled foreign company” have

the same meaning as they have for the purposes of Chapter 4 of Part 17 of

ICTA.’.

Schedule, as amended, Agreed to.

Clause 37 Agreed to.

Mr Jeremy Browne

Dr John Pugh

Withdrawn  41

Schedule  17,  page  189,  line  41,  leave out ‘£100’ and insert ‘£1’.

Mr Mark Hoban

Withdrawn  161

Schedule  17,  page  190,  line  10,  at end insert ‘or’.

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Mr Mark Hoban

Not called  160

Schedule  17,  page  190,  line  12,  leave out from ‘partnership’ to end of line 14.

Mr Mark Hoban

Not called  162

Schedule  17,  page  190,  line  33,  leave out ‘a’ and insert ‘an event or’.

Mr Jeremy Browne

Dr John Pugh

Not called  42

Schedule  17,  page  190,  line  34,  leave out paragraphs (a) and (b).

Mr Mark Hoban

Not called  163

Schedule  17,  page  191,  line  38,  at end insert—

‘“debenture” does not include a guarantee;

“transfer” does not include a transfer by way of security.’.

Mr Mark Hoban

Not called  164

Schedule  17,  page  192,  line  9,  at end insert ‘or six months after the regulations

referred to in paragraph 4(2) are made, whichever is the later’.

Mr Mark Hoban

Not called  165

Schedule  17,  page  192,  line  10,  after ‘Schedule’, insert ‘(with exception of those

made under paragraph 8(2)(e))’.

Schedule Agreed to.

Clause 38 Agreed to.

Schedule 18 Agreed to.

Mr Mark Hoban

Withdrawn  171

Clause  39,  page  19,  line  14,  at end insert ‘and accordingly section 397A shall not

apply in respect of such dividend’.

Mr Mark Hoban

Not called  174

Clause  39,  page  19,  leave out lines 15 to 18 and insert—

‘(3)
For the purposes of this section and subject to subsections (3A) and (3B) below,

an offshore fund satisfies the qualifying investments test if, on the last day of each

quarter of the offshore fund’s relevant period of account, the market value of the

fund’s qualifying investments does not exceed 60% of the market value of all of

the assets of the fund (excluding cash awaiting investment).

(3A)
The offshore fund shall not satisfy the qualifying investments test if it makes any

arrangements with regard to its investments where the purpose of such

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arrangements is wholly or mainly to satisfy the qualifying investments test on

such relevant quarter date and where, having regard to the offshore fund’s overall

investment strategy, the offshore fund would have been unlikely to satisfy the

qualifying investments test had the test been applied on any other date.

(3B)
Where any of the investments held by the offshore fund are “qualifying holdings”

(as defined in section 495 of the CTA 2009), such qualifying holding shall not

constitute a qualifying investment if the company, scheme or fund which might

otherwise constitute the qualifying holding has, for the 12 month period

preceding the date that the dividend is paid, provided written confirmation on a

quarterly basis to the offshore fund that its investment strategy is to invest in

assets which the company, scheme or fund anticipates will meet the qualifying

investments test and it is not aware that this strategy has been breached.’.

Mr Mark Hoban

Not called  175

Clause  39,  page  19,  line  23,  leave out from ‘means’ to end of line 31 and insert ‘the

accounting period ending prior to payment of the dividend.’.

Mr Stephen Timms

Agreed to  89

Clause  39,  page  19,  line  43,  at end insert—

‘(3A)
Accordingly, in section 367 of ITTOIA 2005 (priority between Chapters within

Part 4), in subsection (3)—

(a)
in paragraph (a), after “dividends)” insert “, 378A (offshore fund

distributions)”, and

(b)
in paragraph (b), insert at the end “or Chapter 4 (or both)”.’.

Clause, as amended, Agreed to.

[Adjourned until Thursday at 9.00 am.