Session 2010 - 12
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Other Bills before Parliament

Consideration of Bill: 17 May 2011

2179

Localism Bill, continued

Chargeable gains: disposal on transfer to be treated as no gain/no loss disposal

6    (1)

For the purposes of the Taxation of Chargeable Gains Act 1992, a disposal

constituted by a transfer within sub-paragraph (2) is to be treated in relation to

the transferor and transferee as made for a consideration such that no gain or

loss accrues to the transferor.

(2)	A transfer is within this sub-paragraph if—

(a)	it is a transfer in accordance with a transfer scheme under section 161

of property, rights or liabilities of the Homes and Communities

Agency and the transferee is a public body, or

(b)	it is in accordance with a transfer scheme under section 162 and the

transferee is a public body.

(3)	In section 288(3A) of the Taxation of Chargeable Gains Act 1992 (meaning of

the “no gain/no loss provisions”) at the end insert—

“(m)	paragraph 6(1) of Schedule [Transfers and transfer schemes:

tax provisions] to the Localism Act 2011.”

Stamp duty

7	Stamp duty is not chargeable on a transfer scheme under section 162 if the

transferee is a public body.

Modifications of transfer schemes

8    (1)

This paragraph applies if—

(a)	a company delivers a company tax return,

(b)	subsequently an agreement is made modifying a transfer scheme under

section 161 or 162, and

(c)	as a result of that, the return is incorrect.

(2)	The return may be amended under paragraph 15 of Schedule 18 to the Finance

Act 1998 so as to remedy the error, ignoring any time limit which would

otherwise prevent that happening.

(3)	An amendment may not be made in reliance on sub-paragraph (2) more than

12 months after the end of the accounting period of the company during which

the agreement is made.

(4)	Sub-paragraphs (5) and (6) apply if the company does not amend the return so

as to remedy the error before the end of that 12 month period.

(5)	A discovery assessment or a discovery determination may be made in relation

to the error, ignoring any time limit which would otherwise prevent that

happening.

(6)	Such an assessment or determination may not be made in reliance on sub-

paragraph (5) more than 24 months after the end of the accounting period

mentioned in sub-paragraph (3).

(7)	Expressions used in this paragraph and in Schedule 18 to the Finance Act 1998

have in this paragraph the meaning they have in that Schedule.’.

Part 3

Transfers under scheme under section 171(1) or (4) or 187(1)

9    (1)

In this paragraph “transfer scheme” means a transfer scheme under section

171(1) or (4) or 187(1).

(2)	The Treasury may by regulations make provision for varying the way in which

a relevant tax has effect from time to time in relation to—

Consideration of Bill: 17 May 2011

2180

Localism Bill, continued

(a)	any property, rights or liabilities transferred in accordance with a

transfer scheme, or

(b)	anything done for the purposes of, or in relation to, or in consequence

of, the transfer of any property, rights or liabilities in accordance with

a transfer scheme.

(3)	The provision that may be made under sub-paragraph (2)(a) includes, in

particular, provision for—

(a)	a tax provision not to apply, or to apply with modifications, in relation

to any property, rights or liabilities transferred;

(b)	any property, rights or liabilities transferred to be treated in a specified

way for the purposes of a tax provision;

(c)	the Secretary of State or Mayor of London to be required or permitted,

with the consent of the Treasury, to determine, or to specify the

method for determining, anything which needs to be determined for

the purposes of any tax provision so far as relating to any property,

rights or liabilities transferred.

(4)	The provision that may be made under sub-paragraph (2)(b) includes, in

particular, provision for—

(a)	a tax provision not to apply, or to apply with modifications, in relation

to anything done for the purposes of, or in relation to, or in

consequence of, the transfer;

(b)	anything done for the purposes of, or in relation to, or in consequence

of, the transfer to have or not to have a specified consequence or to be

treated in a specified way;

(c)	the Secretary of State or Mayor of London to be required or permitted,

with the consent of the Treasury, to determine, or to specify the

method for determining, anything which needs to be determined for

the purposes of any tax provision so far as relating to anything done

for the purposes of, in relation to, or in consequence of, the transfer.

(5)	In this paragraph—

“relevant tax” means corporation tax, income tax, capital gains tax, stamp

duty, stamp duty land tax or stamp duty reserve tax, and

“tax provision” means a provision of an enactment about a relevant tax.

(6)	In sub-paragraph (5) “enactment” includes an enactment contained in an

instrument made under an Act.’.

Remaining new Clause relating to Part 7

Authority may be required to carry on commercial activities through a taxable body

Secretary Eric Pickles

NC20

To move the following Clause:—

‘(1)	The Greater London Authority Act 1999 is amended as follows.

(2)	After section 34 insert—

Consideration of Bill: 17 May 2011

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Localism Bill, continued

“34A	Restriction on exercise of certain powers except through a taxable

body

(1)	The Authority may carry on specified activities for a commercial purpose

only if it does so—

(a)	through a company that is a subsidiary of the Authority, or

(b)	in pursuance of an authorisation under section 38(1), through—

(i)	a body that is specified in section 38(2) and is within the

charge to corporation tax, or

(ii)	a company that is a subsidiary of a body specified in

section 38(2).

(2)	Subsection (3) applies if—

(a)	the Authority carries on a specified activity for a commercial

purpose otherwise than as permitted by subsection (1), and

(b)	the activity is actually carried on by a body (whether the

Authority or another) that, disregarding this section, is in respect

of the carrying-on of the activity exempt from corporation tax

and income tax.

(3)	The body mentioned in subsection (2)(b) is to be treated in respect of the

carrying-on of the activity as not being a local authority for the purposes

of—

(a)	section 984 of the Corporation Tax Act 2010 (exemption of local

authorities from corporation tax),

(b)	section 838 of the Income Tax Act 2007 (exemption of local

authorities from income tax), and

(c)	section 271 of the Taxation of Chargeable Gains Act 1992

(exemption of local authorities from capital gains tax).

(4)	In this section—

“company” means—

(a)	a company within the meaning given by section 1(1) of the

Companies Act 2006, or

(b)	a society registered or deemed to be registered under the Co-

operative and Community Benefit Societies and Credit Unions

Act 1965 or the Industrial and Provident Societies Act (Northern

Ireland) 1969, and

“specified activity” means an activity specified in an order made by the

Secretary of State with the consent of the Treasury.”

(3)	In section 420(8) (orders subject to annulment) after the entry for section 25

insert—

“section 34A;”.’.

Heidi Alexander

351

Page  138,  line  45  [Clause  158],  at end insert—

Consideration of Bill: 17 May 2011

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Localism Bill, continued

‘London Housing and Regeneration Board

“333ZDA

London Housing and Regeneration Board

(1)	The Authority must establish a London Housing and Regeneration Board within

six months of the Localism Act 2011 being passed.

(2)	The London Housing and Regeneration Board is to consist of such numbers

(being not less than six) as the Authority may from time to time appoint.

(3)	The Authority must appoint one of the members as the person with the function

of chairing the London Housing and Regeneration Board.

(4)	In appointing a person to be a member, the Authority—

(a)	must have regard to the desirability of appointing a person who has

experience of, and shown some capacity in, a matter relevant to the

exercise of the functions set out in this Chapter,

(b)	must be satisfied that the person will have no financial or other interest

likely to affect prejudicially the exercise of the person’s functions as a

member, and

(c)	must ensure that at least 50 per cent. of the number of members on the

Board are appointed representatives of London boroughs.

(5)	In exercising its housing and regeneration functions and powers subsequent to the

enactment of this Chapter the Authority must consult and obtain agreement from

the London Housing and Regeneration Board.”’.

Secretary Eric Pickles

205

Page  143,  line  31  [Clause  161],  at end insert—

‘(ba)

a company that is a subsidiary of the Greater London Authority,’.

Secretary Eric Pickles

206

Page  143,  line  38  [Clause  161],  at end insert—

‘“company” means—

(a)	a company within the meaning given by section 1(1) of the

Companies Act 2006, or

(b)	a society registered or deemed to be registered under the Co-

operative and Community Benefit Societies and Credit Unions

Act 1965 or the Industrial and Provident Societies Act (Northern

Ireland) 1969;’.

Secretary Eric Pickles

207

Page  143,  line  42  [Clause  161],  at end insert—

‘“subsidiary” has the meaning given by section 1159 of the Companies Act

2006.’.

Consideration of Bill: 17 May 2011

2183

Localism Bill, continued

Secretary Eric Pickles

208

Page  144,  line  8  [Clause  162],  at end insert—

‘(ba)

a company that is a subsidiary of the Greater London Authority,’.

Secretary Eric Pickles

209

Page  144,  line  17  [Clause  162],  at end insert—

‘“company” means—

(a)	a company within the meaning given by section 1(1) of the

Companies Act 2006, or

(b)	a society registered or deemed to be registered under the Co-

operative and Community Benefit Societies and Credit Unions

Act 1965 or the Industrial and Provident Societies Act (Northern

Ireland) 1969;’.

Secretary Eric Pickles

210

Page  144,  line  21  [Clause  162],  at end insert—

‘“subsidiary” has the meaning given by section 1159 of the Companies Act

2006.’.

Secretary Eric Pickles

211

Page  148,  line  1  [Clause  168],  leave out from ‘has’ to end of line.

Secretary Eric Pickles

212

Page  148,  line  7  [Clause  168],  at end insert ‘,

(e)	the Mayor has laid before the London Assembly, in accordance with

standing orders of the Greater London Authority, a document stating that

the Mayor is proposing to designate the area, and

(f)	the consideration period for the document has expired without the

London Assembly having rejected the proposal.’.

Heidi Alexander

352

Page  148,  line  7  [Clause  168],  at end insert—

‘(e)	a majority of those London borough councils whose borough contains

any part of the designated development area agree to the designation.’.

Secretary Eric Pickles

213

Page  148,  line  22  [Clause  168],  at end insert—

‘(4A)

For the purposes of subsection (3)(f)—

(a)	the “consideration period” for a document is the 21 days beginning with

the day the document is laid before the London Assembly in accordance

with standing orders of the Greater London Authority, and

Consideration of Bill: 17 May 2011

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Localism Bill, continued

(b)	the London Assembly rejects a proposal if it resolves to do so on a

motion—

(i)	considered at a meeting of the Assembly throughout which

members of the public are entitled to be present, and

(ii)	agreed to by at least two thirds of the Assembly members

voting.’.

Secretary Eric Pickles

214

Page  150,  line  12  [Clause  171],  at end insert ‘, or

(c)	a company that is a subsidiary of the Greater London Authority.’.

Secretary Eric Pickles

215

Page  150,  line  23  [Clause  171],  at end insert—

‘(8A)

In subsection (4)(c)—

“company” means—

(a)	a company within the meaning given by section 1(1) of the

Companies Act 2006, or

(b)	a society registered or deemed to be registered under the Co-

operative and Community Benefit Societies and Credit Unions

Act 1965 or the Industrial and Provident Societies Act (Northern

Ireland) 1969, and

“subsidiary” has the meaning given by section 1159 of the Companies Act

2006.’.

Secretary Eric Pickles

216

Page  151,  line  41  [Clause  173],  leave out from ‘has’ to end of line.

Secretary Eric Pickles

217

Page  157,  line  28  [Clause  185],  leave out from ‘has’ to end of line.

Secretary Eric Pickles

218

Page  158,  line  26  [Clause  187],  at end insert—

‘“company” means—

Consideration of Bill: 17 May 2011

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Localism Bill, continued

(a)	a company within the meaning given by section 1(1) of the

Companies Act 2006, or

(b)	a society registered or deemed to be registered under the Co-

operative and Community Benefit Societies and Credit Unions

Act 1965 or the Industrial and Provident Societies Act (Northern

Ireland) 1969;’.

Secretary Eric Pickles

219

Page  158,  line  31  [Clause  187],  at end insert—

‘(ba)

a company that is a subsidiary of the Greater London Authority,’.

Secretary Eric Pickles

220

Page  158,  line  34  [Clause  187],  at end insert—

‘“subsidiary” has the meaning given by section 1159 of the Companies Act

2006.’.

Remaining New clauses relating to Part 6

Capital receipts from disposal of housing land

Secretary Eric Pickles

NC19

To move the following Clause:—

In section 11 of the Local Government Act 2003 (use of capital receipts by a local

authority) after subsection (5) insert—

“(6)	The Secretary of State and a local authority in England may enter into an

agreement with the effect that a requirement imposed under subsection

(2)(b) does not apply to, or is modified in its application to, capital

receipts of the authority that are specified or described in the

agreement.”’.

Disestablishment of an arm’s length management organisation

Mr Clive Betts

Stephen Gilbert

Sarah Newton

NC3

To move the following Clause:—

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