23

House of Commons

Monday 12 July 2010

Committee of the whole House

New Amendments handed in are marked thus

Finance Bill

---

Note

The Amendments have been arranged in the order to be proposed by Mr

Chancellor of the Exchequer.

Mr Chancellor of the Exchequer

To move, That the order in which proceedings in the Committee of the whole House

on the Finance Bill are taken shall be: Clauses 1 and 2, Schedule 1, Clause 3, Schedule 2,

Clauses 4 to 6, Schedule 3, Clause 7, Schedule 4, Clause 8, Schedule 5, Clause 9, new

Clauses, new Schedules, Clauses 10 and 11.

John McDonnell

Kelvin Hopkins

Jeremy Corbyn

Mrs Linda Riordan

Katy Clark

Austin Mitchell

11

Clause  1,  page  1,  line  6,  at end insert—

‘(2)	Subsection (1) shall not have effect unless the Chancellor of the Exchequer has

laid before the House of Commons a report on the extent of avoidance and

evasion of corporation tax and on the measures he proposes to take to ensure the

payment of tax which is due.’.

Chris Leslie

20

Clause  1,  page  1,  line  6,  at end add—

‘(2)	Section 3 of the Finance Act 2010 (small profits rates and fractions for financial

year 2010) is amended as follows.

(3)	After subsection (3) insert a new subsection—

Committee of the whole House: 12 July 2010

24

Finance Bill, continued

“(3A)

For the financial year 2011 the small profits rate is 20 per cent. on profits

of companies other than ring fence profits.”.’.

Chris Leslie

Cathy Jamieson

Barry Gardiner

Chris Bryant

Tom Greatrex

Luciana Berger

21

Clause  1,  page  1,  line  6,  at end add—

‘(2)	The main rate of corporation tax for financial year 2011 will remain at 28 per cent.

on the profits of banking institutions as defined by section 2 of the Banking Act

2009.’.

Stephen Timms

Ms Angela Eagle

Mr Liam Byrne

Mr Alistair Darling

29

Clause  1,  page  1,  line  6,  at end add—

‘(2)	For the financial year 2011, the small profits rate is—

(a)	20% on profits of companies other than ring fence profits, and

(b)	19% on ring fence profits of companies.

(3)	For the purposes of Part 3 CTA 2010, for that year—

(a)	the standard fraction is 7/400ths, and

(b)	The ring fence fraction is 11/400ths.’.

Stephen Timms

Mr Alistair Darling

Mr Liam Byrne

Ms Angela Eagle

34

Clause  1,  page  1,  line  6,  at end add—

‘(2)	Prior to this rate taking effect, the Chancellor will place in the Library of the

House of Commons an assessment of the impact of this clause on the banking

sector.’.

Stephen Timms

Ms Angela Eagle

Mr Liam Byrne

Mr Alistair Darling

49

Clause  1,  page  1,  line  6,  at end add—

‘(2)	In section 2(2)(a) of the Finance Act 2010, after “companies”, add “not meeting

the condition in (c) below”.

(3)	At the end of section 2 of the Finance Act 2010 add—

“(c)	26 per cent. on profits of companies whose taxable profits will be

increased by more than 1 per cent. as a result of changes in

investment allowances.”.’.

Committee of the whole House: 12 July 2010

25

Finance Bill, continued

Andrew George

Roger Williams

Mr Mark Williams

Mr David Ward

50

Clause  1,  page  1,  line  6,  at end add—

‘(2)	This section shall not come into force until the Treasury has laid before the House

of Commons as assessment of the impact of this section on—

(a)	the banking sector, and

(b)	all other sectors to which corporation tax applies.’.

John McDonnell

Kelvin Hopkins

Jeremy Corbyn

Mrs Linda Riordan

Katy Clark

Austin Mitchell

12

Clause  2,  page  2,  line  4,  at end insert—

‘(2)	Schedule 1 shall not have effect unless the Chancellor of the Exchequer has laid

before the House of Commons a report on the extent of avoidance and evasion of

capital gains tax and on the measures he proposes to take to ensure the payment

of tax which is due.’.

Andrew George

Roger Williams

Mr Mark Williams

Mr David Ward

Mr John Leech

51

Schedule  1,  page  6,  line  12,  leave out ‘18%’ and insert ‘based upon the rate at

which income tax is chargeable in that tax year’.

Stephen Timms

Ms Angela Eagle

Mr Liam Byrne

Mr Alistair Darling

30

Schedule  1,  page  6,  leave out lines 13 to 16 and insert—

‘(3)	The rate of capital gains tax in respect of gains accruing in a tax year to—

(a)	the trustees of a settlement is 28%, and

(b)	The personal representatives of a deceased person is 18% for the first

£10,000 of gains and 28% thereafter.’.

Committee of the whole House: 12 July 2010

26

Finance Bill, continued

John McDonnell

Kelvin Hopkins

Jeremy Corbyn

Mrs Linda Riordan

Katy Clark

Austin Mitchell

5

Schedule  1,  page  6,  line  16,  leave out ‘28%’ and insert ‘40%’.

Stephen Timms

Ms Angela Eagle

Mr Liam Byrne

Mr Alistair Darling

31

Schedule  1,  page  6,  line  16,  leave out ‘28%’ and insert ‘25%’.

John McDonnell

Kelvin Hopkins

Jeremy Corbyn

Mrs Linda Riordan

Katy Clark

Austin Mitchell

6

Schedule  1,  page  6,  line  16,  at end insert—

‘(3A)

If income tax is chargeable at the additional rate in respect of any part of the

income of an individual for a tax year, the rate of capital gains tax in respect of

gains accruing to the individual in the year is 50%.’.

John McDonnell

Kelvin Hopkins

Jeremy Corbyn

Mrs Linda Riordan

Katy Clark

Austin Mitchell

7

Schedule  1,  page  6,  line  17,  after ‘If’, insert—

‘(a)	no income tax is chargeable at the additional rate in respect of any part of

the income of an individual for a tax year, but

(b)

’.

Andrew George

Roger Williams

Mr Mark Williams

Mr David Ward

Mr John Leech

52

Schedule  1,  page  6,  leave out lines 17 to 36.

Committee of the whole House: 12 July 2010

27

Finance Bill, continued

John McDonnell

Kelvin Hopkins

Jeremy Corbyn

Mrs Linda Riordan

Katy Clark

Austin Mitchell

8

Schedule  1,  page  6,  line  20,  leave out ‘28%’ and insert ‘40%’.

Stephen Timms

Ms Angela Eagle

Mr Liam Byrne

Mr Alistair Darling

32

Schedule  1,  page  6,  line  20,  leave out ‘28%’ and insert ‘25%’.

John McDonnell

Kelvin Hopkins

Jeremy Corbyn

Mrs Linda Riordan

Katy Clark

Austin Mitchell

9

Schedule  1,  page  6,  line  25,  leave out ‘28%’ and insert ‘40%’.

Stephen Timms

Ms Angela Eagle

Mr Liam Byrne

Mr Alistair Darling

33

Schedule  1,  page  6,  line  25,  leave out ‘28%’ and insert ‘25%’.

John McDonnell

Kelvin Hopkins

Jeremy Corbyn

Mrs Linda Riordan

Katy Clark

Austin Mitchell

10

Schedule  1,  page  9,  line  29,  at end insert ‘, provided that the Chancellor of the

Exchequer has laid before the House of Commons a report on the implications of aligning

rates of capital gains tax with rates of income tax.’.

Andrew George

Roger Williams

Mr Mark Williams

Mr David Ward

Mr John Leech

53

Schedule  1,  page  9,  line  39,  at end insert—

‘17A	The amendment made in paragraph 2 shall be subject to a review before 31

March 2013.’.

Committee of the whole House: 12 July 2010

28

Finance Bill, continued

Stewart Hosie

Jonathan Edwards

Angus Robertson

Mr Elfyn Llwyd

Caroline Lucas

Mr Mike Weir

13

Clause  3,  page  2,  line  7,  leave out subsection (1).

Andrew George

Roger Williams

Mr Mark Williams

Mr David Ward

Mr John Leech

54

Clause  3,  page  2,  line  7,  leave out ‘20’ and insert ‘18’.

Andrew George

Roger Williams

Mr Mark Williams

Mr David Ward

Mr John Leech

57

Clause  3,  page  2,  line  8,  at end insert—

‘(1A)

The amendment made in subsection (1) shall not apply to:

(a)	purchases of goods or services made by registered charities;

(b)	purchases of goods or services made by public authorities;

(c)	renovations of dwellings in council tax bands of F or below; and

(d)	non-exempt fuel sold to permanent residents living in rural locations

which the Chancellor shall, by order, define.’.

Chris Leslie

22

Clause  3,  page  2,  line  8,  at end insert—

‘(2)	Subsection (1) shall apply until 4 January 2012.’.

Stewart Hosie

Jonathan Edwards

Angus Robertson

Mr Elfyn Llwyd

Caroline Lucas

Mr Mike Weir

14

Clause  3,  page  2,  line  9,  leave out subsection (2).

Mr Liam Byrne

Ms Angela Eagle

Stephen Timms

Mr Alistair Darling

35

Clause  3,  page  2,  line  11,  at beginning insert ‘Subject to subsection (3A) below,’.

Committee of the whole House: 12 July 2010

29

Finance Bill, continued

Jon Trickett

Mr Dai Havard

Kelvin Hopkins

Jeremy Corbyn

Mrs Linda Riordan

Katy Clark

Richard Burden

Mr Clive Betts

Toby Perkins

Glenda Jackson

1

Clause  3,  page  2,  line  12,  after ‘made’, insert ‘on or after a specified date’.

Mr Liam Byrne

Ms Angela Eagle

Stephen Timms

Mr Alistair Darling

41

Clause  3,  page  2,  line  13,  at end insert ‘unless the report referred to in subsection

(6) has not been completed, in which case the date shall be 4 January 2012.’.

Mr Liam Byrne

Ms Angela Eagle

Stephen Timms

Mr Alistair Darling

36

Clause  3,  page  2,  line  13,  at end insert—

‘(3A)

The amendment made by subsection (1) shall not have effect in relation to any

supply made on or after 4 January 2011 to a charity where such supply is made to

that charity solely in relation to its charitable non-business activities.’.

Jon Trickett

Mr Dai Havard

Kelvin Hopkins

Jeremy Corbyn

Mrs Linda Riordan

Katy Clark

Richard Burden

Mr Clive Betts

Toby Perkins

Glenda Jackson

2

Clause  3,  page  2,  line  15,  after ‘imported’, insert ‘on or after a specified date’.

Mr Liam Byrne

Ms Angela Eagle

Stephen Timms

Mr Alistair Darling

42

Clause  3,  page  2,  line  15,  at end insert ‘unless the report referred to in subsection

(6) has not been completed, in which case the date shall be 4 January 2012.’.

---

Revised 12 July 2010