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39

 

House of Commons

 
 

Tuesday 16 June 2009

 

Public Bill Committee Proceedings

 

Finance Bill


 

[Eleventh and Twelfth Sittings]


 

Clause 56 Agreed to.

 

Mr Stephen Timms

 

Agreed to  206

 

Clause  57,  page  27,  line  27,  leave out subsection (2).

 

Clause, as amended, Agreed to.

 

Clause 58 Agreed to.

 

Schedule 29 Agreed to.

 


 

Mr Stephen Timms

 

Not moved  207

 

Clause  59,  page  28,  line  16,  after ‘made’ insert ‘under the law of a territory outside

 

the United Kingdom’.

 

Mr Greg Hands

 

Mr Mark Hoban

 

Mr David Gauke

 

Not called  217

 

Clause  59,  page  28,  line  16,  after ‘made’, insert ‘by any taxing authority’.

 

Mr Stephen Timms

 

Not called  208

 

Clause  59,  page  29,  line  6,  after ‘made’ insert ‘under the law of a territory outside

 

the United Kingdom’.

 

Clause Agreed to.

 



 
 

Public Bill Committee Proceedings: 16 June 2009            

40

 

Finance Bill, continued

 
 

Mr Greg Hands

 

Mr Mark Hoban

 

Mr David Gauke

 

Withdrawn  218

 

Clause  60,  page  29,  line  34,  after ‘costs’, insert ‘, and

 

‘(c)    

the taxpayer has entered into a scheme or arrangement a main purpose of

 

which is to secure that the included funding costs are less than the

 

national funding costs’.’.

 

Mr Stephen Timms

 

Agreed to  209

 

Clause  60,  page  29,  line  36,  leave out ‘paragraph (b) and (c)’ and insert ‘subsection

 

(3)’.

 

Mr Stephen Timms

 

Agreed to  210

 

Clause  60,  page  30,  line  4,  leave out ‘paragraph (b) and (c) total’ and insert

 

‘subsection (3) total (before the application of subsection (3B))’.

 

Mr Stephen Timms

 

Agreed to  211

 

Clause  60,  page  30,  leave out lines 11 to 13.

 

Mr Stephen Timms

 

Agreed to  212

 

Clause  60,  page  30,  line  15,  at end insert—

 

‘“subsection (3) total” means the amount to be taken into account under

 

subsection (3) for the purposes of section 797(1).’.

 

Clause, as amended, Agreed to.

 

Clause 61 Agreed to.

 

Schedule 30 Agreed to.

 

Clause 62 Agreed to.

 

Schedule 31 Agreed to.

 

Clause 63 Agreed to.

 

Schedule 32 Agreed to.

 

Clause 64 Agreed to.

 

Schedule 33 Agreed to.

 

Clause 65 Agreed to.

 

Schedule 34 Agreed to.

 

Clause 66 Agreed to.

 



 
 

Public Bill Committee Proceedings: 16 June 2009            

41

 

Finance Bill, continued

 
 

Mr David Gauke

 

Mr Mark Hoban

 

Mr Greg Hands

 

Withdrawn  73

 

Clause  67,  page  32,  line  6,  leave out ‘12 January’ and insert ‘1 April’.

 

Mr David Gauke

 

Mr Mark Hoban

 

Mr Greg Hands

 

Not called  74

 

Clause  67,  page  32,  line  7,  leave out subsections (3) and (4).

 

Clause Agreed to.

 

Clauses 68 and 69 Agreed to.

 


 

Mr Stephen Timms

 

Agreed to  213

 

Clause  70,  page  34,  line  24,  leave out ‘section 105A’ and insert ‘sections 105A and

 

105B’.

 

Mr Stephen Timms

 

Agreed to  214

 

Clause  70,  page  34,  leave out lines 35 to 37 and insert—

 

‘(d)    

the net amount payable by P in relation to the lease by way of lease

 

premium is greater than zero.’.

 

Mr Stephen Timms

 

Agreed to  215

 

Clause  70,  page  34,  line  43,  leave out from ‘the’ to end of line 21 on page 35 and

 

insert ‘net amount payable by P in relation to the lease by way of lease premium.

 

(3)    

For provision about the application of this section in relation to certain

 

leases with break clauses, see section 105B.

 

(4)    

For the purposes of this section the net amount payable by P in relation

 

to a lease by way of lease premium is—

 

(a)    

the total amount (if any) that has been paid, or is or will become

 

payable, by P in relation to the lease by way of lease premium,

 

less

 

(b)    

any amount within paragraph (a) that has been repaid or is or will

 

become repayable.

 

(5)    

In this section and section 105B “lease premium” means any premium

 

payable—

 

(a)    

under a lease, or

 

(b)    

otherwise under the terms on which a lease is granted.

 

(6)    

In the application of this section to Scotland, “premium” includes a

 

grassum.


 
 

Public Bill Committee Proceedings: 16 June 2009            

42

 

Finance Bill, continued

 
 

105B  

Lease premiums in the case of leases with break clauses

 

(1)    

This section applies to a lease (“the original lease”) that contains one or

 

more relevant break clauses.

 

(2)    

For the purposes of this section—

 

(a)    

“break clause” means a provision of a lease that gives a person a

 

right to terminate it so that its term is shorter than it otherwise

 

would be, and

 

(b)    

a break clause contained in the original lease is “relevant” if the

 

right to terminate the lease that it confers is capable of being

 

exercised in such a way that the term of the original lease is 10

 

years or less.

 

(3)    

For the purposes of section 105A—

 

(a)    

the term of the original lease, and

 

(b)    

the net amount payable by P in relation to the lease by way of

 

lease premium,

 

    

are to be determined on the assumption that any relevant break clause is

 

exercised in such a way that the term of the lease is as short as possible.

 

(4)    

If a relevant break clause is not in fact exercised in such a way that the

 

term of the original lease is as short as possible, the parties to the lease

 

are treated for the purposes of section 105A as if they were parties to

 

another lease (a “notional lease”) the term of which—

 

(a)    

begins immediately after the time at which the term of the

 

original lease would have ended, if that break clause had been so

 

exercised, and

 

(b)    

ends at the time mentioned in subsection (5).

 

(5)    

The term of a notional lease ends—

 

(a)    

at the time the term of the original lease would end, on the

 

assumption that any relevant break clause that is exercisable only

 

after the beginning of the term of the notional lease is exercised

 

in such a way that the term of the original lease is as short as

 

possible, or

 

(b)    

if earlier, the tenth anniversary of the beginning of the term of the

 

original lease.

 

(6)    

For the purposes of section 105A, the net amount payable by P in relation

 

to a notional lease by way of lease premium is, in the case of a notional

 

lease the term of which ends under paragraph (a) of subsection (5)—

 

(a)    

the net amount that would be payable by P in relation to the

 

original lease by way of lease premium on the assumption

 

mentioned in that paragraph, less

 

(b)    

any part of that amount that has already been attributed to a

 

period in respect of a lease premium under section 105(4B)(b).

 

(7)    

For the purposes of section 105A, the net amount payable by P in relation

 

to a notional lease by way of lease premium is, in the case of notional

 

lease the term of which ends under paragraph (b) of subsection (5), the

 

relevant proportion of—

 

(a)    

the net amount that would be payable by P in relation to the

 

original lease by way of lease premium, on the assumption that

 

no break clause is exercised, less


 
 

Public Bill Committee Proceedings: 16 June 2009            

43

 

Finance Bill, continued

 
 

(b)    

any part of that amount that has already been attributed to a

 

period in respect of a lease premium under section 105(4B)(b).

 

(8)    

In subsection (7) “the relevant proportion” means—

D
E

 

    

where—

 

D is the term of the notional lease (in days);

 

E is the sum of—

 

(a)    

the term of the notional lease (in days), and

 

(b)    

the number of days by which the term of the original lease would

 

exceed 10 years, on the assumption that no break clause is

 

exercised.”’.

 

Mr Stephen Timms

 

Agreed to  216

 

Clause  70,  page  35,  line  32,  leave out ‘section 105A’ and insert ‘sections 105A and

 

105B’.

 

Clause, as amended, Agreed to.

 

[Adjourned until Thursday at 9.00 am.


 
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