Constitutional Reform and Governance Bill

House of Commons

Session 2009 - 10
Internet Publications
Other Bills before Parliament

Constitutional Reform and Governance Bill

Constitutional Reform and Governance Bill
Schedule 13 — Transitional provision relating to Part 10
113

Tax consequences of transfers by virtue of paragraph 1(3)
2     (1)
For the purposes of the application of Part 5 of the Corporation Tax Act 2009
(loan relationships) in relation to a transfer by virtue of paragraph 1(3), the
Comptroller and Auditor General and NAO are to be treated as if, at the time
of the transfer, they were members of the same group.
5
      (2)
In sub-paragraph (1) the reference to being members of the same group is to
be read in accordance with section 335(6) of that Act.
3     (1)
For the purposes of Part 8 of the Corporation Tax Act 2009 (intangible fixed
assets)—
(a)
a transfer by virtue of paragraph 1(3) of a chargeable intangible asset
10
of the Comptroller and Auditor General is to be treated as a tax-
neutral transfer, and
(b)
an intangible fixed asset which is a pre-FA 2002 asset of the
Comptroller and Auditor General at the time it is transferred by
virtue of paragraph 1(3) is to be treated, on and after the transfer, as
15
a pre-FA 2002 asset in the hands of NAO.
      (2)
Expressions used in sub-paragraph (1) and in Part 8 have the same meanings
in sub-paragraph (1) as they have in Part 8.
4
For the purposes of the Taxation of Chargeable Gains Act 1992 (c. 12) a
disposal constituted by virtue of a transfer by paragraph 1(3) is to be taken
20
(in relation to both the Comptroller and Auditor General and NAO) to be for
a consideration such that no gain or loss accrues to the Comptroller and
Auditor General.
Old Comptroller and Auditor General to continue to be Comptroller and Auditor General
5     (1)
This paragraph applies to the person (“P”) who is the Comptroller and
25
Auditor General immediately before the appointed time.
      (2)
From the appointed time, P—
(a)
continues to be the Comptroller and Auditor General and is treated
as having been appointed to that office under this Part of this Act,
and
30
(b)
holds the office for ten years less the period equal to the period
during which P was the Comptroller and Auditor General before the
appointed time.
      (3)
P’s remuneration package under section 69 of this Act is to be determined
jointly by the Prime Minister and the person who chairs the Committee of
35
Public Accounts before the appointed time (but is not to cover any period
before the appointed time).
      (4)
In this paragraph “the appointed time” means the time appointed for the
purposes of this paragraph by an order made by the Treasury by statutory
instrument.
40
Provision of services
6     (1)
This paragraph applies in relation to anything done by or on behalf of the
Comptroller and Auditor General under a power that ceases to be
exercisable upon the coming into force of section 68 of this Act.

Constitutional Reform and Governance Bill
Schedule 13 — Transitional provision relating to Part 10
114

      (2)
So far as necessary or appropriate for continuing its effect after the coming
into force of section 68, the thing is treated as having been done by or on
behalf of the Comptroller and Auditor General under section 68.
7     (1)
Paragraph 3 of Schedule 12 does not apply in relation to the provision of any
services which, at the time that paragraph comes into force, the Comptroller
5
and Auditor General has a contractual duty to provide.
      (2)
But paragraph 8 of that Schedule applies in relation to any such services as
if they were NAO approved services.
Indemnification
8     (1)
The liabilities covered by section 76 of this Act include liabilities that—
10
(a)
arise before the coming into force of that section, or
(b)
arise in relation to any act or omission occurring before the coming
into force of that section.
      (2)
For this purpose, section 76(3)(d) covers former members of the staff of the
National Audit Office established by section 3 of the National Audit Act
15
1983 (c. 44).
NAO’s procedural rules before rules made under paragraph 18 of Schedule 11
9     (1)
This paragraph applies until the first set of rules under paragraph 18 of
Schedule 11 are made.
      (2)
It applies in relation to any matter to be decided by NAO for the purpose of
20
preparing or making that first set of rules or for the purposes of paragraph
10 of Schedule 12.
      (3)
The matter is to be decided—
(a)
at a meeting of NAO at which the chair of NAO and at least six other
members are present, and
25
(b)
by the majority of votes of the members present and voting on the
matter.
      (4)
But the matter may not be decided unless a majority of the members voting
on the matter are non-executive members.
      (5)
If the votes are tied, the chair of NAO is to have the casting vote, whether or
30
not the chair has already voted on the matter.

(But the chair of NAO is to be counted only once for the purposes of sub-
paragraph (4) above or paragraph 11(3) of Schedule 12.)
      (6)
It is for the chair of NAO to call a meeting of NAO by giving written notice
to the other members of the date, time and venue of the meeting.
35

Constitutional Reform and Governance Bill
Schedule 14 — Consequential amendments relating to Part 10
Part 2 — Amendments to Acts of Parliament
115

Schedule 14
Section 78

Consequential amendments relating to Part 10
Part 1
Meaning of “old NAO”
1
In this Schedule “old NAO” means the National Audit Office established by
5
section 3 of the National Audit Act 1983 (c. 44).
Part 2
Amendments to Acts of Parliament
Exchequer and Audit Departments Act 1866 (c. 39)
2
Omit sections 3 and 6.
10
Exchequer and Audit Departments Act 1957 (c. 45)
3     (1)
This is repealed.
      (2)
Sub-paragraph (1) does not affect the position of any person by virtue of
section 1(3A) of the 1957 Act.
Public Records Act 1958 (c. 51)
15
4
In Part 2 of the Table at the end of paragraph 3 in Schedule 1 the reference to
old NAO is to be read as a reference to NAO.
Superannuation Act 1972 (c. 11)
5     (1)
Before section 13(1) insert—
“(A1)
This section does not apply to a person appointed as Comptroller
20
and Auditor General under Part 10 of the Constitutional Reform and
Governance Act 2010.”
      (2)
Sub-paragraph (1) does not affect the position of the person mentioned in
paragraph 5(1) of Schedule 13 to this Act so far as section 13 of the 1972 Act
applies in relation to that person’s service as Comptroller and Auditor
25
General before the appointed time (see paragraph 5(4) of that Schedule).
6     (1)
In Schedule 1 in the list of “Other Bodies” omit “National Audit Office” and,
at the appropriate place, insert “Employee of the National Audit Office”.
      (2)
Sub-paragraph (1) does not affect the position of any person who was a
member of the staff of old NAO but who ceased to be a member before the
30
transfers under paragraph 1(3) of Schedule 13 to this Act occur.
House of Commons Disqualification Act 1975 (c. 24)
7
In Schedule 1—
(a)
in Part 2, at the appropriate place, insert “The National Audit Office”,
and
35

Constitutional Reform and Governance Bill
Schedule 14 — Consequential amendments relating to Part 10
Part 2 — Amendments to Acts of Parliament
116

(b)
in Part 3 omit “Comptroller and Auditor General” and “Member of
the staff of the National Audit Office” and, at the appropriate place,
insert “Employee of the National Audit Office”.
Northern Ireland Assembly Disqualification Act 1975 (c. 25)
8
In Schedule 1—
5
(a)
in Part 2, at the appropriate place, insert “The National Audit Office”,
and
(b)
in Part 3 omit “Comptroller and Auditor General” and “Member of
the staff of the National Audit Office” and, at the appropriate place,
insert “Employee of the National Audit Office”.
10
Parliamentary and other Pensions and Salaries Act 1976 (c. 48)
9     (1)
Omit section 6(3).
      (2)
Sub-paragraph (1) does not affect the position of any person by virtue of
section 1(3A) of the Exchequer and Audit Departments Act 1957 (c. 45).
Race Relations Act 1976 (c. 74)
15
10    (1)
In Part 2 of Schedule 1A, under the heading “Regulatory, audit and
inspection”—
(a)
at the appropriate place insert “The Comptroller and Auditor
General”;
(b)
the reference to old NAO is to be read as a reference to NAO.
20
      (2)
Sub-paragraphs (3) and (4) apply in relation to any function that was a
function of old NAO by virtue of Part 2 of Schedule 1A.
      (3)
Anything done by, on behalf of or in relation to old NAO has effect as if done
by, on behalf of or in relation to the relevant person, so far as necessary or
appropriate for continuing its effect after the coming into force of sub-
25
paragraph (1).
      (4)
Anything (including legal proceedings) which, immediately before the
coming into force of sub-paragraph (1), is in the process of being done by, on
behalf of or in relation to old NAO may be continued by, on behalf of or in
relation to the relevant person.
30
      (5)
“The relevant person” means—
(a)
in relation to matters within NAO’s functions, NAO;
(b)
in relation to matters within the Comptroller and Auditor General’s
functions, the Comptroller and Auditor General.
Interpretation Act 1978 (c. 30)
35
11
In Schedule 1, in the definition of “Comptroller and Auditor General”, omit
“appointed in pursuance of the Exchequer and Audit Departments Act
1866”.
National Audit Act 1983 (c. 44)
12    (1)
The following are omitted—
40
(a)
sections 1, 3(1) to (6), 4 and 5;

Constitutional Reform and Governance Bill
Schedule 14 — Consequential amendments relating to Part 10
Part 2 — Amendments to Acts of Parliament
117

(b)
paragraphs 1 to 3 of Schedule 2;
(c)
Schedule 3.
      (2)
Sub-paragraph (1) does not affect the position of any person by virtue of
paragraph 2(3) or (4) of Schedule 2 to the 1983 Act.
      (3)
The repeal of section 3(4) of the 1983 Act does not affect the position under
5
the Superannuation Act 1972 (c. 11) of any person who was a member of the
staff of old NAO but who ceased to be a member before the transfers under
paragraph 1(3) of Schedule 13 to this Act occur.
13
After section 7 insert—
“7A
Proposals made by Committee of Public Accounts
10
In determining whether to carry out any examination under this
Part, the Comptroller and Auditor General must have regard to any
proposals made by the Committee of Public Accounts.”
Finance Act 1989 (c. 26)
14    (1)
Amend section 182 as follows.
15
      (2)
In subsection (4)(a)(i) for “and any member of the staff of the National Audit
Office” substitute “, of the National Audit Office and any member or
employee of that Office or of any member of the staff of the National Audit
Office that was established by section 3 of the National Audit Act 1983”.
      (3)
After subsection (4)(a)(i) insert—
20
“(ia)
of the Comptroller and Auditor General for Northern
Ireland and any member of the staff of the Northern
Ireland Audit Office,”.
      (4)
In subsection (6) after “Comptroller” insert “and Auditor General, the
Comptroller and Auditor General for Northern Ireland”.
25
      (5)
Omit subsection (11)(a) and (b).
Social Security Administration Act 1992 (c. 5)
15    (1)
Amend section 123(8) as follows.
      (2)
After paragraph (a) insert—
“(aa)
any member or employee of the National Audit Office;
30
(ab)
any other person who carries out the administrative work of
the National Audit Office or who provides, or is employed in
the provision of, services to that Office;”.
      (3)
In paragraph (i) omit “the National Audit Office or”.
      (4)
In paragraph (j)—
35
(a)
for “either of those Offices” substitute “the Northern Ireland Audit
Office”;
(b)
for “either of them” substitute “that Office”.
      (5)
After paragraph (j) insert—
“(jza)
the following persons—
40

Constitutional Reform and Governance Bill
Schedule 14 — Consequential amendments relating to Part 10
Part 2 — Amendments to Acts of Parliament
118

(i)
any member of the staff of the National Audit Office
that was established by section 3 of the National
Audit Act 1983, or
(ii)
any other person who carried out the administrative
work of that Office, or who provided, or who was
5
employed in the provision of, services to that Office;”.
Taxation of Chargeable Gains Act 1992 (c. 12)
16
At the end of section 288(3A) insert—
“(l)
paragraph 4 of Schedule 13 to the Constitutional Reform and
Governance Act 2010.”
10
National Lottery etc. Act 1993 (c. 39)
17
In section 4B(4)(f) for “the National Audit Office” substitute “the
Comptroller and Auditor General”.
Government of Wales Act 1998 (c. 38)
18
Omit paragraph 1 of Schedule 12.
15
Government Resources and Accounts Act 2000 (c. 20)
19
Omit paragraph 18(2), (4) and (5) of Schedule 1.
Freedom of Information Act 2000 (c. 36)
20
In section 36(5)(i)—
(a)
the reference to old NAO is to be read as a reference to NAO;
20
(b)
after that reference insert “or the Comptroller and Auditor General”.
21    (1)
In Part 6 of Schedule 1—
(a)
at the appropriate place insert “The Comptroller and Auditor
General”;
(b)
the reference to old NAO is to be read as a reference to NAO.
25
      (2)
Sub-paragraphs (3) and (4) apply in relation to any function that was a
function of old NAO by virtue of Part 6 of Schedule 1.
      (3)
Anything done by, on behalf of or in relation to old NAO has effect as if done
by, on behalf of or in relation to the relevant person, so far as necessary or
appropriate for continuing its effect after the coming into force of sub-
30
paragraph (1).
      (4)
Anything (including legal proceedings) which, immediately before the
coming into force of sub-paragraph (1), is in the process of being done by, on
behalf of or in relation to old NAO may be continued by, on behalf of or in
relation to the relevant person.
35
      (5)
“The relevant person” means—
(a)
in relation to matters within NAO’s functions, NAO;
(b)
in relation to matters within the Comptroller and Auditor General’s
functions, the Comptroller and Auditor General.

Constitutional Reform and Governance Bill
Schedule 14 — Consequential amendments relating to Part 10
Part 3 — Amendments to other legislation
119

Constitutional Reform Act 2005 (c. 4)
22
Omit paragraph 7 of Schedule 6.
Government of Wales Act 2006 (c. 32)
23
In paragraphs 5 and 8 of Schedule 5 after “Comptroller and Auditor
General” insert “or the National Audit Office”.
5
Companies Act 2006 (c. 46)
24
Omit section 1230(3)(a).
25
In paragraph A32 of Part 2 of Schedule 2 and paragraph 47 of Schedule 11A
for “the National Audit Office” substitute “the Comptroller and Auditor
General”.
10
Corporate Manslaughter and Corporate Homicide Act 2007 (c. 19)
26    (1)
In Schedule 1 omit the reference to old NAO.
      (2)
In relation to any offence alleged to have been committed by old NAO before
the coming into force of sub-paragraph (1), proceedings may be brought or
continued against NAO as if anything done by, on behalf of or in relation to
15
old NAO had been done by, on behalf of or in relation to NAO.
Part 3
Amendments to other legislation
Court Funds Rules 1987 (S.I. 1987/821)
27
In rule 63(2) for “National Audit Office” substitute “Comptroller and
20
Auditor General”.
Official Secrets Act 1989 (Prescription) Order 1990 (S.I. 1990/200)
28
In Schedule 1, at the appropriate place, insert—

“National
The members

Audit Office
and

25

employees of

the Office”

29
In Schedule 2 for “Member of staff of the National Audit Office” substitute
“Member of staff of the National Audit Office that was established by section
3 of the National Audit Act 1983”.
30
Race Relations (Prescribed Public Bodies) (No. 2) Regulations 1994 (S.I. 1994/1986)
30
In the Schedule the reference to old NAO is to be read as a reference to NAO.