Finance Bill

House of Commons

Session 2010 - 11
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Finance Bill

Finance Bill
Schedule 4 — Expenses paid to MPs etc
22

Schedule 4
Section 7

Expenses paid to MPs etc
Accommodation expenses
1     (1)
ITEPA 2003 is amended as follows.
      (2)
For section 292 substitute—
5
“292
Accommodation expenses of MPs
(1)
No liability to income tax arises in respect of a payment made to a
member of the House of Commons under section 5(1) of the
Parliamentary Standards Act 2009 if the payment is—
(a)
expressed to be made in respect of accommodation expenses,
10
or
(b)
related to or in consequence of a payment expressed to be so
made.
(2)
“Accommodation expenses” means expenses necessarily incurred on
overnight accommodation that is required for the performance of the
15
member’s parliamentary duties in or about the Palace of
Westminster or the member’s constituency.
(3)
But the cost of an overnight stay in a hotel that was required only
because, on that night, the member had been required to be at the
House of Commons because the House was sitting late does not
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count as accommodation expenses for the purposes of this section,
unless the member had been required to be at the House because it
was sitting beyond 1 a.m.
(4)
Subsection (1) does not apply to a loan for a deposit payable at the
commencement of a tenancy.”
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      (3)
In section 360 (disallowance of certain accommodation expenses of MPs and
other representatives), insert at the end—
“(3)
In relation to a member of the House of Commons, subsection (3) of
section 292 applies for the purposes of this section as it applies for the
purposes of that section.”
30
      (4)
The amendment made by sub-paragraph (2) has effect in relation to
payments made under section 5(1) of the Parliamentary Standards Act 2009
on or after 7 May 2010.
      (5)
In relation to payments made on or after that date in accordance with a
resolution of the House of Commons passed before that date, ITEPA 2003
35
continues to have effect as if that amendment had not been made.
      (6)
The amendment made by sub-paragraph (3) has effect in relation to
expenses incurred on or after that date.

Finance Bill
Schedule 4 — Expenses paid to MPs etc
23

UK travel and subsistence expenses
2     (1)
In ITEPA 2003, after section 293 insert—
“293A
UK travel and subsistence expenses of MPs
(1)
No liability to income tax arises in respect of a payment made to a
member of the House of Commons under section 5(1) of the
5
Parliamentary Standards Act 2009 if the payment is expressed to be
made—
(a)
in respect of relevant UK travel expenses, or
(b)
in respect of relevant subsistence expenses.
(2)
“Relevant UK travel expenses” means expenses necessarily incurred
10
on journeys of the following kinds within the United Kingdom—
(a)
journeys made by the member that are necessary for the
performance of the member’s parliamentary duties, and
(b)
if the member shares caring responsibilities with a spouse or
partner, journeys made by the spouse or partner between the
15
member’s London Area residence and the member’s
constituency residence.
(3)
“Relevant subsistence expenses” means expenses necessarily
incurred on an evening meal (excluding alcoholic drinks) eaten on
the Parliamentary Estate, where the member is required to be at the
20
House of Commons because the House is sitting beyond 7.30 p.m.
(4)
“Caring responsibilities” and “London Area” have the same meaning
in subsection (2)(b) as they have in the scheme in effect for the time
being under section 5 of the Parliamentary Standards Act 2009.”
      (2)
The amendment made by sub-paragraph (1) has effect in relation to
25
payments made under section 5(1) of the Parliamentary Standards Act 2009
on or after 7 May 2010.
      (3)
In relation to payments made on or after that date in accordance with a
resolution of the House of Commons passed before that date, ITEPA 2003
continues to have effect as if that amendment had not been made.
30
European travel expenses
3     (1)
Section 294 of ITEPA 2003 (European travel expenses of MPs and other
representatives) is amended as follows.
      (2)
For subsection (1) substitute—
“(1)
No liability to income tax arises in respect of a sum that is paid to—
35
(a)
a member of the House of Commons under section 5(1) of the
Parliamentary Standards Act 2009,
(b)
a member of the Scottish Parliament under section 81(2) of
the Scotland Act 1998,
(c)
a member of the National Assembly for Wales under section
40
20(2) of the Government of Wales Act 2006 or a member of
the Welsh Assembly Government under section 53(2) of that
Act, or
(d)
a member of the Northern Ireland Assembly under section
47(2) of the Northern Ireland Act 1998,
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Finance Bill
Schedule 5 — Amounts not fully recognised for accounting purposes
24


and expressed to be made in respect of European travel expenses.”
      (3)
In subsection (3)(b), for sub-paragraph (iii) substitute—
“(iii)
any other country that is a member of the Council of
Europe.”
      (4)
The amendments made by this paragraph have effect in relation to sums
5
paid to members under the relevant Act on or after 7 May 2010.
      (5)
In relation to sums paid on or after that date in accordance with a resolution
of the House of Commons passed before that date, section 294 of ITEPA 2003
continues to have effect as if those amendments had not been made.
Schedule 5
10
Section 8

Amounts not fully recognised for accounting purposes
Amendments of sections 311, 312 and 599A of CTA 2009
1     (1)
Section 311 of CTA 2009 (loan relationships: amounts not fully recognised
for accounting purposes) is amended as follows.
      (2)
In subsection (2)—
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(a)
in paragraph (b), for “or C” substitute “, C or D”, and
(b)
in paragraph (c), for “or securities” substitute “, securities or relevant
interest”.
      (3)
In subsection (3)(a), for “the period” substitute “any period”.
      (4)
In subsection (4)(a)—
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(a)
for “has at any time been” substitute “is at any time”, and
(b)
for “the period” substitute “any period”.
      (5)
In subsection (4A)(a)—
(a)
for “has issued” substitute “at any time issues”, and
(b)
for “the period” substitute “any period”.
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      (6)
After subsection (4A) insert—
“(4B)
Condition D is that, at any time—
(a)
the company acquires a relevant interest in another company,
a firm or a trust, or
(b)
an existing relevant interest of the company in another
30
company, a firm or a trust is varied.”
      (7)
In subsection (5), omit “for the period”.
      (8)
After subsection (5) insert—
“(5A)
In this section—
(a)
a reference to a relevant interest in a company is to an interest
35
in the company’s shares or other capital,
(b)
a reference to a relevant interest in a firm is to an entitlement
to share in the profits or capital of the firm, and

Finance Bill
Schedule 5 — Amounts not fully recognised for accounting purposes
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(c)
a reference to a relevant interest in a trust is to an interest
under the trust in any property subject to the trust.”
2     (1)
Section 312 of that Act (determination of credits and debits where amounts
not fully recognised) is amended as follows.
      (2)
In subsection (1), omit paragraph (b) and the “or” before it.
5
      (3)
After that subsection insert—
“(1A)
Subsection (1B) applies in a case where condition A in section 311(2)
is met.
(1B)
In determining the debits and credits which a company is to bring
into account for any period for the purposes of this Part in respect of
10
the debtor relationship by reference to which that condition is met,
the assumption in subsection (2) is to be made.”
      (4)
In subsection (4)(b)—
(a)
for “subsection (1)(a)” substitute “subsection (1)”, and
(b)
for “subsection (1)(b)” substitute “subsection (1B)”.
15
3     (1)
Section 599A of that Act (derivative contracts: amounts not fully recognised
for accounting purposes) is amended as follows.
      (2)
In subsection (2)—
(a)
in paragraph (b), for “or B” substitute “, B or C”, and
(b)
in paragraph (c), for “or securities” substitute “, securities or relevant
20
interest”.
      (3)
In subsection (3)(a)—
(a)
for “has at any time been” substitute “is at any time”, and
(b)
for “the period” substitute “any period”.
      (4)
In subsection (3)(b), for “relevant contribution” substitute “contribution”.
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      (5)
In subsection (4), omit “for the period”.
      (6)
In subsection (5)(a)—
(a)
for “has issued” substitute “at any time issues”, and
(b)
for “the period” substitute “any period”.
      (7)
After subsection (5) insert—
30
“(5A)
Condition C is that, at any time—
(a)
the company acquires a relevant interest in another company,
a firm or a trust, or
(b)
an existing relevant interest of the company in another
company, a firm or a trust is varied.
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(5B)
In this section—
(a)
a reference to a relevant interest in a company is to an interest
in the company’s shares or other capital,
(b)
a reference to a relevant interest in a firm is to an entitlement
to share in the profits or capital of the firm, and
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(c)
a reference to a relevant interest in a trust is to an interest
under the trust in any property subject to the trust.”

Finance Bill
Schedule 5 — Amounts not fully recognised for accounting purposes
26

Commencement
4     (1)
The amendments made by this Schedule have effect in relation to periods of
account beginning on or after 22 June 2010.
      (2)
But, for the purposes of sub-paragraph (1), a period of account beginning
before, and ending on or after, 22 June 2010 is to be treated as if so much of
5
the period as falls before that date, and so much of the period as falls on or
after that date, were separate periods of account.