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75

 

House of Commons

 
 

Thursday 25 June 2009

 

Public Bill Committee Proceedings

 

Finance Bill


 

[Seventeenth and Eighteenth Sittings]


 

Clauses 112 to 117 Agreed to.

 

Schedule 59 Agreed to.

 

Clause 118 Agreed to.

 

Schedule 60 Agreed to.

 

Clauses 119 to 122 Agreed to.

 

Mr Stephen Timms

 

Agreed to  321

 

Schedule  61,  page  422,  line  16,  leave out from ‘2003)’ to end of line 19 and insert

 

‘except that it does not include a lease if the lease is for—

 

 

(a)    

a term of years of 21 years or less, or

 

(b)    

in Scotland, a period of 21 years or less.’.

 

Mr Stephen Timms

 

Agreed to  322

 

Schedule  61,  page  424,  line  15,  at beginning insert ‘in England and Wales,’.

 

Mr Stephen Timms

 

Agreed to  323

 

Schedule  61,  page  424,  line  23,  leave out paragraphs (a) and (b) and insert—

 

‘(a)    

is a first charge on, or a security ranking first granted over, the interest

 

transferred to Q,

 

(b)    

is in favour of the Commissioners for Her Majesty’s Revenue and

 

Customs, and’.

 

Mr Stephen Timms

 

Agreed to  324

 

Schedule  61,  page  426,  line  12,  leave out ‘imposed or security granted’ and insert

 

‘or security registered’.


 
 

Public Bill Committee Proceedings: 25 June 2009            

76

 

Finance Bill, continued

 
 

Mr Stephen Timms

 

Agreed to  325

 

Schedule  61,  page  430,  line  19,  leave out ‘imposed on it, or security granted over

 

it,’ and insert ‘or security registered’.

 

Mr Stephen Timms

 

Agreed to  326

 

Schedule  61,  page  430,  line  20,  leave out ‘that condition is complied with’ and

 

insert—

 

‘(a)    

Q provides HMRC with the prescribed evidence that condition G is

 

met in relation to the original land, and

 

(b)    

condition D is met’.

 

Mr Stephen Timms

 

Agreed to  327

 

Schedule  61,  page  430,  line  23,  leave out ‘imposed on it, or security granted over

 

it,’ and insert ‘or security registered’.

 

Mr Stephen Timms

 

Agreed to  328

 

Schedule  61,  page  430,  line  25,  after ‘that’, insert—

 

‘(a)    

condition G is met in relation to the original land, and

 

(b)    

’.

 

Mr Stephen Timms

 

Agreed to  329

 

Schedule  61,  page  430,  line  36,  after ‘charge’, insert ‘on land in England and

 

Wales’.

 

Mr Stephen Timms

 

Agreed to  330

 

Schedule  61,  page  430,  line  38,  leave out ‘and’.

 

Mr Stephen Timms

 

Agreed to  331

 

Schedule  61,  page  430,  line  39,  after ‘security’, insert ‘granted over land in

 

Scotland’.

 

Mr Stephen Timms

 

Agreed to  332

 

Schedule  61,  page  430,  line  40,  at end insert ‘and

 

‘(c)    

in the case of a charge on land in Northern Ireland, notify the Registrar

 

of Titles of the discharge.’.

 

Schedule, as amended, Agreed to.

 

Clauses 123 and 124 Agreed to.

 



 
 

Public Bill Committee Proceedings: 25 June 2009            

77

 

Finance Bill, continued

 
 

New Clauses

 

Taxation: general anti-avoidance principle

 

Mr Michael Meacher

 

Not selected  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.’.

 


 

Personal allowances for 2009-10 for those aged over 65

 

Mr David Gauke

 

Mr Mark Hoban

 

Mr Greg Hands

 

Not called  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”’.

 



 
 

Public Bill Committee Proceedings: 25 June 2009            

78

 

Finance Bill, continued

 
 

Thresholds for residential property

 

Mr David Gauke

 

Mr Mark Hoban

 

Mr Greg Hands

 

Second reading negatived on division  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.”’.

 


 

Publication of taxpayer ‘gold list’

 

Mr David Gauke

 

Mr Mark Hoban

 

Mr Greg Hands

 

 

Not called  NC4

 

To move the following Clause:—

 

‘(1)    

The Commissioners may publish a list of taxpayers who, in the opinion of the

 

Commissioners, have performed their tax paying and reporting obligations in an

 

exemplary manner.

 

(2)    

The details of a taxpayer identified under subsection (1) shall be as agreed

 

between the Commissioners and the taxpayer.

 

(3)    

In making an assessment of the inclusion of a taxpayer for publication under

 

subsection (1), the Commissioners shall take into account the size and complexity

 

of the taxpayers’ affairs.

 

(4)    

The Commissioners shall not refuse to list a taxpayer under subsection (1) on the

 

grounds that—

 

(a)    

the taxpayer has taken reasonable measures to minimise his tax liability,

 

or

 

(b)    

the taxpayer, acting in good faith, is in dispute with HM Revenue and

 

Customs.


 
 

Public Bill Committee Proceedings: 25 June 2009            

79

 

Finance Bill, continued

 
 

(5)    

The Commissioners must publish guidance as to the criteria that shall be used in

 

assessing whether a taxpayer should be identified under subsection (1).

 

(6)    

The Commissioners must consult with stakeholders before publishing any

 

guidance under subsection (5).’.

 


 

Mileage allowance payments

 

Dr Vincent Cable

 

Mr Jeremy Browne

 

Mr Colin Breed

 

Dr John Pugh

 

Second reading negatived on division  NC5

 

To move the following Clause:—

 

‘(1)    

Section 230 of ITEPA 2003 is amended as follows.

 

(2)    

In the table in subsection (2), for “40p” substitute “45p”.

 

(3)    

Insert at the end of subsection (6)—

 

“(7)    

The Treasury shall publish annually a report setting out its assessment of

 

the impact of the rates under subsection (2) on the level of participation

 

of volunteers in community transport schemes.

 

(8)    

A report under subsection (7) is subject to approval by resolution of the

 

House of Commons.”’.

 


 

IR35: income tax

 

Dr Vincent Cable

 

Mr Jeremy Browne

 

Mr Colin Breed

 

Dr John Pugh

 

Not selected  NC6

 

To move the following Clause:—

 

‘(1)    

Schedule 12 of FA 2000 shall cease to have effect.

 

(2)    

Part 2 of Chapter 8 of ITEPA 2003 shall cease to have effect.

 

(3)    

This section has effect from the day on which this Act is passed.’.

 



 
 

Public Bill Committee Proceedings: 25 June 2009            

80

 

Finance Bill, continued

 
 

Taxation status of Members of the House of Commons and House of Lords

 

Dr Vincent Cable

 

Mr Jeremy Browne

 

Mr Colin Breed

 

Dr John Pugh

 

Not selected  NC7

 

To move the following Clause:—

 

‘(1)    

A Member of the House of Commons or House of Lords is deemed to be resident,

 

ordinarily resident and domiciled in the United Kingdom and in no other country

 

for taxation purposes.

 

(2)    

This clause does not apply to a Member of the House of Lords who has been

 

granted leave of absence and remains on a leave of absence thereafter.

 

(3)    

This section has effect from the day on which this Act is passed.’.

 


 

Private residential exemption from capital gains tax

 

Dr Vincent Cable

 

Mr Jeremy Browne

 

Mr Colin Breed

 

Dr John Pugh

 

Withdrawn  NC8

 

To move the following Clause:—

 

‘(1)    

Part 7 of TCGA 1992 is amended as follows.

 

(2)    

In section 222(5) (relief on disposal of private residence) leave out paragraph (a)

 

and insert—

 

“(a)    

the Commissioners must notify, in writing, the individual of the

 

notice requirement in paragraph (aa),

 

(aa)    

the individual may include that question by giving notice to the

 

inspector within six months from the date on which the

 

notification under paragraph (a) was received but subject to a

 

right to vary that notice by a further notice to the inspector as

 

respects any period beginning not earlier than six months before

 

the giving of the further notice,”.

 

(3)    

Insert after section 223(2)—

 

“(2A)    

Subsections (1) and (2) do not apply where an individual has varied a

 

notice under section 222(5)(aa) to the effect that an individual’s previous

 

main residence has been redesignated as their main residence.”.

 

(4)    

The amendments made by this section have effect for the tax year 2010-11 and

 

subsequent tax years.’.

 



 
 

Public Bill Committee Proceedings: 25 June 2009            

81

 

Finance Bill, continued

 
 

Furnished holiday lettings

 

Dr Vincent Cable

 

Mr Jeremy Browne

 

Mr Colin Breed

 

Dr John Pugh

 

Withdrawn  NC9

 

To move the following Clause:—

 

‘(1)    

The Chancellor of the Exchequer shall, before the publication of the 2009 Pre-

 

Budget Report, have compiled and laid before the House of Commons a report

 

containing an assessment of the impact of—

 

(a)    

section 503 of ICTA, and

 

(b)    

chapter 6 of part 3 of ITTOIA 2005,

 

    

on the liability to tax of commercially-let furnished holiday accommodation.

 

(2)    

A Minister of the Crown must, not later than one month after the report has been

 

laid before the House of Commons, make a motion in that House in relation to the

 

report.’.

 


 

Office of Budget Responsibility

 

Mr Mark Hoban

 

Mr David Gauke

 

Mr Greg Hands

 

Not selected  NC10

 

To move the following Clause:—

 

‘(1)    

The Treasury shall establish an Office of Budget Responsibility.

 

(2)    

Its mandate shall be to work towards the establishment of—

 

(a)    

a balanced current budget adjusted for the economic cycle,

 

(b)    

falling debt as a percentage of GDP.

 

(3)    

Regulations shall specify the functions of the Office of Budget Responsibility

 

which must include—

 

(a)    

producing fiscal forecasts at least once a year in advance of the Budget,

 

(b)    

producing short term forecasts of the state of the public finances, which

 

must include the Office of Budget Responsibility’s best estimate of all

 

current and future government liabilities,

 

(c)    

a forward looking judgement of the sustainability of the public finances,

 

and

 

(d)    

to make recommendations to Parliament on delivering the mandate in

 

subsection (2).

 

(4)    

Regulations shall specify the governance arrangements of the Office of Budget

 

Responsibility.

 

(5)    

Regulations made under this section may not be made unless they have been laid

 

before, and approved by a resolution of, each House of Parliament.’.

 



 
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