1131

House of Commons

Wednesday 8 July 2009

Consideration of Bill

New Amendments handed in are marked thus

Finance Bill, As Amended

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Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

Lynne Jones

1

Page  11,  line  32  [Clause  17],  at end insert—

‘(4)	The Treasury shall, no later than the date of the Pre-Budget Report 2009, bring

forward plans to replace Air Passenger Duty with a per-plane tax.’.

Stewart Hosie

Mr Eric Illsey

Mr Jeremy Browne

Kelvin Hopkins

4

Page  12,  line  15  [Clause  20],  leave out subsection (2).

Dr John Pugh

Mr Jeremy Browne

39

Page  12,  line  16  [Clause  20],  leave out ‘for “15” substitute “22”’ and insert ‘after

“of”, insert “no more than”’.

Mr Eric Illsley

Kelvin Hopkins

Mr Parmjit Dhanda

Mr Edward O’Hara

David Taylor

John Cummings

Total signatories: 11

Mr Anthony Wright

Mr John Grogan

Patrick Hall

Janet Anderson

Mr Clive Betts

22

Page  12,  line  16  [Clause  20],  leave out ‘22’ and insert ‘16’.

Consideration of Bill: 8 July 2009

1132

Finance Bill, continued

Mr Eric Illsley

Kelvin Hopkins

Mr Parmjit Dhanda

Mr Edward O’Hara

David Taylor

John Cummings

Total signatories: 11

Mr Anthony Wright

Mr John Grogan

Patrick Hall

Janet Anderson

Mr Clive Betts

23

Page  12,  line  16  [Clause  20],  leave out ‘22’ and insert ‘17’.

Stewart Hosie

Mr Jeremy Browne

5

Page  12,  line  20  [Clause  20],  leave out ‘27 April 2009’ and insert ‘1 April 2010’.

Mr Eric Illsley

Kelvin Hopkins

Mr Parmjit Dhanda

Mr Edward O’Hara

David Taylor

John Cummings

Total signatories: 11

Mr Anthony Wright

Mr John Grogan

Patrick Hall

Janet Anderson

Mr Clive Betts

24

Page  12,  line  20  [Clause  20],  leave out ‘27 April 2009’ and insert ‘1 April 2011’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

31

Page  15,  line  40  [Clause  25],  leave out from ‘unless’ to end of line 9 on page 16

and insert ‘they have been made in accordance with section 257 of the Banking Act 2009’.

Mr Chancellor of the Exchequer

41

Page  28,  line  16  [Clause  59],  after ‘made’, insert ‘by a tax authority’.

Consideration of Bill: 8 July 2009

1133

Finance Bill, continued

Mr Chancellor of the Exchequer

42

Page  29,  line  6  [Clause  59],  after ‘made’, insert ‘by a tax authority’.

Alison Seabeck

54

Page  43,  line  33  [Clause  81],  after ‘5’, insert ‘and also includes Community Land

Trusts as defined by Section 79 of the Housing and Regeneration Act 2008’.

Mr David Heath

3

Page  46,  line  10  [Clause  91],  at end insert—

‘( )	In particular, the Charter must include policies in relation to prosecution and

alternatives to prosecution, and the circumstances in which monies collected but

legally returnable to any person may be retained pending futher investigation.’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

6

Page  46,  line  20  [Clause  91],  at end insert—

‘(3)	The Charter prepared under section 16A (1) of CRCA 2005 shall not come into

effect until it has been approved by a resolution of the House of Commons.’.

Mr Chancellor of the Exchequer

43

Page  46,  line  23  [Clause  92],  leave out ‘large’ and insert ‘qualifying’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

32

Page  46,  line  26  [Clause  92],  at end insert—

‘(3)	That Schedule will cease to have effect on the fourth anniversary of the day on

which this Act is passed.’.

Consideration of Bill: 8 July 2009

1134

Finance Bill, continued

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

14

Page  51,  line  23  [Clause  101],  at end insert—

‘(7A)

Repayment interest is not taxable.’.

Mr Chancellor of the Exchequer

44

Page  55,  line  1  [Clause  107],  leave out from beginning to ‘P’ in line 2.

Mr Chancellor of the Exchequer

45

Page  55,  line  4  [Clause  107],  leave out ‘whether before or after that date,’.

Mr Chancellor of the Exchequer

46

Page  55,  line  10  [Clause  107],  leave out ‘during’ and insert ‘between the date on

which P makes the request and the end of’.

Dr John Pugh

Mr Jeremy Browne

34

Page  202,  line  19  [Schedule  17],  at end insert ‘or part of a transaction of a value

exceeding £100 million’.

Dr John Pugh

Mr Jeremy Browne

35

Page  203  [Schedule  17],  leave out line 10.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

17

Page  289,  line  23  [Schedule  34],  at end insert—

‘Stock dividends

3A  (1)

Section 107 (conditions for tax-exempt business) is amended as follows.

(2)	In subsection (8) omit “(a) by way of dividend, and (b)”.

Consideration of Bill: 8 July 2009

1135

Finance Bill, continued

(3)	After subsection (8) insert—

“(8A)

In this Part and for the purposes of section 973 of ITA 2007, a

distribution of the profits of the property rental business shall

include—

(a)	an amount distributed by way of dividend, and

(b)	an issue of shares to which section 249 (1)(a) of ICTA applies

and in case a falling within (b). the amount of the distribution shall be

the cash equivalent of share capital determined in accordance with

section 412 of ITTOIA 2005, but otherwise Chapter 5 of Part 4 of

ITTOIA 2005 shall not apply.”.

3B  (1)

Paragraph 6 of Schedule 17 is amended as follows.

(2)	In paragraph 6 (4), delete “by way of dividend and (c)”.

(3)	After paragraph 6 (4) insert—

“(4A)

In the application of section 107 (8A) for ‘profits’ substitute ‘UK

profits’ as defined in paragraph 6 (4).”.

(4)	Section 142 (1) of TCGA 1992 is amended by inserting “or section 107(8A)

(b) 2006” after the reference to “ITTOIA 2005”.’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

18

Page  289,  line  23  [Schedule  34],  at end insert—

‘Conditions for tax-exempt business

3A  (1)

Section 107 (conditions for tax-exempt business) is amended as follows—

(2)	In subsection (8)(b) after “before”, insert “the third anniversary of ”.

(3)	The amendment made by sub-paragraph (2) has effect for distributions in

respect of accounting periods beginning on or after 1 January 2008 and ending

on or before 31 March 2010.

3B  (1)

Schedule 17 is amended as follows.

(2)	In paragraph 6 (4) after “before”, insert “the third anniversary of”.

(3)	The amendment made by sub-paragraph (2) has effect for distributions in

respect of accounting periods beginning on or after 1 January 2008 and ending

on or before 31 March 2010.’.

Mr Chancellor of the Exchequer

47

Page  290,  line  24  [Schedule  34],  at end insert—

‘Profit: financing-cost ratio

5A  (1)

In section 115 (profit: financing-cost ratio), after subsection (3) insert—

“(3A)

The Commissioners for Her Majesty’s Revenue and Customs may

waive a charge in respect of an accounting period where they think

that—

Consideration of Bill: 8 July 2009

1136

Finance Bill, continued

(a)	the company was in severe financial difficulties at a time in

the accounting period,

(b)	the result of the sum specified in subsection (2) is less than

1.25 in respect of the accounting period because of

circumstances that arose unexpectedly, and

(c)	in those circumstances, the company could not reasonably

have taken action to avoid the result being less than 1.25.

(3B)	The regulations may specify criteria to be applied by the

Commissioners in determining whether to waive a charge.”

(2)	The Commissioners may waive a charge in respect of accounting periods

ending before the day on which this Act is passed.’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

15

Page  290,  line  24  [Schedule  34],  at end insert—

‘Profit: financing-cost ratio

5A  (3)

Section 115 (4) is amended as follows.

(4)	In subsection 115 (4) (a) after “costs giving rise to”, insert “credits or”.

(5)	In subsection 115 (4) at end insert “but exclude—

(f)	financing costs falling within (a) to (e) above which are exceptional

due to their size or incidence.”.’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

16

Page  290,  line  29  [Schedule  34],  at end insert—

‘Termination by notice: Commissioners

6A  (1)

Section 129 is amended as follows.

(2)	In section 129 (2) (c) at end insert “but a breach of the conditon in section 107

(8) where the company is in financial difficulties shall not be treated as

serious”.

(3)	The amendment made by sub-paragraph (2) is to be treated as always having

had effect.’.

Mr Chancellor of the Exchequer

48

Page  291,  line  28  [Schedule  35],  at end insert ‘(but subject to paragraph 16A).’.

Consideration of Bill: 8 July 2009

1137

Finance Bill, continued

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

29

Page  293,  line  4  [Schedule  35],  leave out subsection (2).

Mr Mark Hoban

30

Page  295,  line  46  [Schedule  35],  at end insert—

‘(3)	When an individual establishes a protected pension input amount in respect of

any of the schemes listed in paragraphs 8 to 13 below and their arrangements

change, the protected input amount applies to the new arrangement.’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

25

Page  296,  line  25  [Schedule  35],  at end insert—

‘(3A)

Where contributions are not paid in accordance with subsection 3(c) above, the

protected pension input amount is the lower of £50,000 or the average of

contributions made over the last three years.’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

26

Page  297,  line  23  [Schedule  35],  at end insert—

‘(3A)

Where contributions are not paid in accordance with subsection 3(c) above, the

protected pension input amount is the lower of £50,000 or the average of

contributions made over the last three years.’.

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Revised 8 July 2009