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351

 

SUPPLEMENT TO THE VOTES AND PROCEEDINGS

 
 

Tuesday 7 July 2009

 

Report Stage Proceedings

 

Finance Bill, As Amended


 

New Clauses

 

Transfers of trade to obtain terminal loss relief

 

Mr Chancellor of the Exchequer

 

Added  NC8

 

To move the following Clause:—

 

‘(1)    

In section 393A of ICTA (set off of losses against profits of same or earlier

 

accounting period), after subsection (2D) insert—

 

“(2E)    

But subsection (2A) above does not apply by reason of a company

 

ceasing to carry on a trade if—

 

(a)    

on the company ceasing to carry on the trade, any of the activities

 

of the trade begin to be carried on by a person who is not (or by

 

persons any or all of whom are not) within the charge to

 

corporation tax, and

 

(b)    

the company’s ceasing to carry on the trade is part of a scheme

 

or arrangement the main purpose, or one of the main purposes,

 

of which is to secure that subsection (2A) above applies to a loss

 

by reason of the cessation.”

 

(2)    

The amendment made by subsection (1) has effect in relation to cessations of a

 

trade on or after 21 May 2009.’.

 



 
 

Report Stage Proceedings: 7 July 2009                  

352

 

Finance Bill, continued

 
 

Implementation of section 1

 

Mr Frank Field

 

Mr Greg Pope

 

Kate Hoey

 

Mark Fisher

 

Ms Katy Clark

 

Ms Diane Abbott

 

Mr Dai Havard

 

Mr Peter Kilfoyle

 

Paul Flynn

 

Mike Wood

 

Kelvin Hopkins

 

Jim Dowd

 

Ms Gisela Stuart

 

Michael Connarty

 

David Taylor

 

Janet Anderson

 

Lynne Jones

 

Alan Simpson

 

John McDonnell

 

Bob Spink

 

Jeremy Corbyn

 

Mr David Drew

 

Dr Vincent Cable

 

Mr Jeremy Browne

 

Mrs Ann Cryer

 

Mr Austin Mitchell

 

Jim Dobbin

 

Siobhain McDonagh

 

Mr Roger Godsiff

 

Mr David Cameron

 

Mr George Osborne

 

Mr Philip Hammond

 

Mr David Gauke

 

Mr Mark Hoban

 

James Duddridge

 

Derek Wyatt

 

Andrew Mackinlay

 

Ms Karen Buck

 

Ms Sally Keeble

 

Mark Durkan

 

Stewart Hosie

 

Mr Dai Davies

 

Dr Richard Taylor

 

Lady Hermon

 

Negatived on division  Nc1

 

To move the following Clause:—

 

‘(1)    

The rates charged by virtue of section 1 shall not have effect until such date as

 

may be appointed by order made by the Treasury.

 

(2)    

No such order may be made until the Chancellor of the Exchequer lays before

 

Parliament a statement that, in his opinion, measures have been taken to ensure

 

that no person is worse off by reason of the person’s income not being sufficient

 

to secure that the effect of the abolition of the 10p starting rate has been entirely

 

offset by the reduction of the basic rate, which took effect in the tax year 2008-09.

 

(3)    

The power to make an order under subsection (1) shall be exercisable by statutory

 

instrument which shall be subject to annulment in pursuance of a resolution of the

 

House of Commons.’.

 


 

Anti-avoidance principle

 

Dr John Pugh

 

Mr Jeremy Browne

 

Not selected  Nc2

 

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 established 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 have been included for the sole,

 

principal, main or explicit purpose of securing a reduction in that liability to

 

taxation, duty 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 term of any legislation promoted for the specific purpose of


 
 

Report Stage Proceedings: 7 July 2009                  

353

 

Finance Bill, continued

 
 

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.’.

 


 

Office of Tax Simplification

 

Mr Mark Hoban

 

Mr David Gauke

 

Mr Greg Hands

 

Negatived on division  NC3

 

To move the following Clause:—

 

‘(1)    

The Treasury shall establish an Office of Tax Simplification.

 

(2)    

Its mandate shall be to—

 

(a)    

review tax law

 

(b)    

make proposals on tax law reform and simplification.

 

(3)    

Regulations shall specify the governance arrangements of the Office of Tax

 

Simplification.

 

(4)    

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

 

before, and approved by a resolution of, the House of Commons.’.

 


 

Holiday accommodation report

 

Mr Mark Hoban

 

Mr David Gauke

 

Mr Greg Hands

 

Not called  NC4

 

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)    

Any such report shall address the impact on the UK tourism industry.

 

(3)    

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.’.

 



 
 

Report Stage Proceedings: 7 July 2009                  

354

 

Finance Bill, continued

 
 

Pre-commencement notification

 

Stewart Hosie

 

Not called  NC5

 

To move the following Clause:—

 

‘(1)    

Part 7 of FA 2004 (disclosure of tax avoidance schemes) is amended as follows.

 

(2)    

In section 308 (duties of promoter) after subsection (5) insert—

 

“(5A)    

A person who is a promoter in relation to a notifiable proposal may seek

 

pre-commencement approval from HMRC as to whether the proposal is

 

in accordance with current legislation.

 

(5B)    

HMRC shall respond within a reasonable period of time to any request

 

for pre-commencement approval under subsection (5A).’.’.

 


 

Competitiveness of the tax system

 

Mr Mark Hoban

 

Mr David Gauke

 

Mr Greg Hands

 

Not called  NC6

 

To move the following Clause:—

 

‘Prior to the first reading of a Finance Bill, the Treasury will lay before

 

Parliament a report on the impact on the competitiveness of UK economy of—

 

(a)    

the measures set out in that Finance Bill,

 

(b)    

the rates of—

 

(i)    

corporation tax,

 

(ii)    

income tax,

 

(iii)    

national insurance,

 

(iv)    

capital gains tax,

 

(v)    

excise duties, and

 

(vi)    

vehicle excise duties,

 

(c)    

the complexity of the tax system, and

 

(d)    

the relationship between the HMRC and the taxpayer.’.

 


 

Pension death benefits in higher education

 

Mr Frank Field

 

Not moved  NC7

 

To move the following Clause:—

 

‘(1)    

Paragraph 15 of Schedule 28 to FA 2004 (meaning of “dependant”) is amended

 

as follows.

 

(2)    

In subsection (2)(a) at end insert—


 
 

Report Stage Proceedings: 7 July 2009                  

355

 

Finance Bill, continued

 
 

“(aa)    

has reached that age and is studying full-time for a higher

 

education qualification in medicine, veterinary science or

 

architecture or such other vocational courses as the Treasury

 

may prescribe by regulations, or”’.

 


 

Tax relief on donations to a registered political party

 

Martin Linton

 

Mr Gordon Prentice

 

Not selected  Nc9

 

To move the following Clause:—

 

‘(1)    

Tax relief shall be given to individuals who make donations to a registered

 

political party.

 

(2)    

To obtain tax relief under this section the following conditions must be

 

satisfied—

 

(a)    

the individual who made the donation is a permissible donor as defined

 

in the Political Parties, Elections and Referendums Act 2000,

 

(b)    

the registered political party to which the donation is made is a party

 

which, at the last general election preceding the donation, had at least two

 

members elected to the House of Commons,

 

(c)    

conditions A to F in section 416 of ITA 2007 (meaning of “qualifying

 

donation”) would have been met if the donations had been made to a

 

charity, and

 

(d)    

the donor has given a declaration in the manner specified by regulations

 

made by the Commissioners for Her Majesty’s Revenue and Customs

 

and containing any information and any statements required by

 

regulations.

 

(3)    

Regulations made by the Commissioners for Her Majesty’s Revenue and

 

Customs under subsection 2(d) may provide for declarations—

 

(a)    

to have effect,

 

(b)    

to cease to have effect, or

 

(c)    

to be treated as never having had effect.

 

    

in any circumstances and for any purposes specified by the regulations.

 

(4)    

Regulations under subsection 2(d)—

 

(a)    

shall be made by statutory instrument, and

 

(b)    

shall be subject to annulment pursuant to a resolution of the House of

 

Commons.

 

(5)    

Tax relief in relation to donations given by an individual in any fiscal year must

 

not exceed an amount to be set by regulations made by the Treasury.

 

(6)    

Tax relief shall not be given on higher rate income tax.

 

(7)    

Subject to subsections (5) and (6), the amount of tax relief shall be computed and

 

allocated to the political party to which the donation was given as if that party was

 

a charity to which Chapter 2 of Part 8 of ITA 2007 applies.’.

 



 
 

Report Stage Proceedings: 7 July 2009                  

356

 

Finance Bill, continued

 
 

Mr Frank Field

 

Mr Greg Pope

 

Lynne Jones

 

Alan Simpson

 

Ms Diane Abbott

 

John McDonnell

 

Kelvin Hopkins

 

Jeremy Corbyn

 

Mr David Drew

 

Dr Vincent Cable

 

Mr Jeremy Browne

 

Mrs Ann Cryer

 

Mr Austin Mitchell

 

Jim Dobbin

 

Siobhain McDonagh

 

Mr Roger Godsiff

 

Ms Karen Buck

 

Ms Sally Keeble

 

Mark Durkan

 

Steward Hosie

 

Bob Spink

 

Mr Dai Davies

 

Dr Richard Taylor

 

Lady Hermon

 

Not called  2

 

Page  1,  line  8  [Clause  1],  at end insert—

 

‘(3)    

This section is subject to section [Implementation of section 1].’.

 


 

Dr Vincent Cable

 

Mr Jeremy Browne

 

Mr Colin Breed

 

Dr John Pugh

 

Negatived on division  37

 

Page  2,  line  10  [Clause  3],  leave out ‘£6,475’ and insert ‘£10,000’.

 


 

Mr Mark Hoban

 

Mr David Gauke

 

Mr Greg Hands

 

Not called  40

 

Page  3,  line  7  [Clause  6],  at end insert—

 

‘(3A)    

At the end of section 646(8) of ITTOIA 2005 (adjustments between settlor and

 

trustees etc.), insert—

 

“(9)    

A settlor of a settlement in respect of which he is liable to pay income tax

 

under section 624 or 629 is entitled to receive credit for any income tax

 

paid by the trustees of such a settlement in calculating his income tax

 

liability and to be repaid any excess of that credit over that liability.

 

(10)    

A settlor who receives a credit under subsection (9) above is to that extent

 

not entitled to recover any tax from the trustees under subsection (1)

 

above.”

 

(3B)    

The amendment made by subsection (3A) shall be deemed to have effect from 6

 

April 2006.’.

 

Dr Vincent Cable

 

Mr Jeremy Browne

 

Mr Colin Breed

 

Dr John Pugh

 

Not called  36

 

Page  3,  line  31  [Clause  8],  at end insert—


 
 

Report Stage Proceedings: 7 July 2009                  

357

 

Finance Bill, continued

 
 

‘(2A)    

At the end of subsection 13(3) of ICTA 1988 (small companies’ relief), insert—

 

“(3A)    

Where in any accounting period the profits of a company do not exceed

 

1/12 of the lower relevant maximum amount, the company may claim a

 

further reduction (to be known as the “very small companies’ relief”) on

 

the amount of corporation tax payable under this section.

 

(3B)    

The Chancellor of the Exchequer shall, by regulations and within three

 

months of Royal Assent, prescribe the level of the very small companies’

 

relief.

 

(3C)    

Regulations made under subsection (3B) may not be made unless a draft

 

of the statutory instrument containing the regulations has been laid

 

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

 


 

Dr Vincent Cable

 

Mr Jeremy Browne

 

Mr Colin Breed

 

Dr John Pugh

 

Negatived on division  38

 

Page  4,  line  34  [Clause  11],  at end insert—

 

‘(3A)    

After subsection (1A) insert—

 

“(1AB)    

The rate under section 36 (1AA)(a) shall be reduced by 2 per cent. for the

 

tax year 2010-11 and by a further 2 per cent. for each subsequent tax

 

year.”’.

 

Further consideration adjourned until tomorrow.


 
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