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Public Bill Committee Proceedings: 9 June 2009            



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).



The Commissioners may grant the application only if they are satisfied


that the specified amount does not exceed the relevant amount.



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.



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



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





In subsection (8)—



after ““the relevant amount”” insert “—



in the case of an appeal in respect of the refusal of an


application under section 751A,”, and



after “mentioned in that subsection” insert “, and



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.”



In subsection (10)—



after “751A” insert “or 751AA”, and



after “751A(1)” insert “or 751AA(1)”.




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.



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




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Withdrawn  41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Withdrawn  161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’.


Public Bill Committee Proceedings: 9 June 2009            



Finance Bill, continued


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—



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).



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


Public Bill Committee Proceedings: 9 June 2009            



Finance Bill, continued


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.



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—



Accordingly, in section 367 of ITTOIA 2005 (priority between Chapters within


Part 4), in subsection (3)—



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


distributions)”, and



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


Clause, as amended, Agreed to.



[Adjourned until Thursday at 9.00 am.

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