Session 2010 - 12
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145

House of Commons

Notices of Amendments

given on

Thursday 2 June 2011

For other Amendment(s) see the following page(s):

Finance (No. 3) Committee 129-141 and 143

Public Bill Committee

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Finance (No. 3) Bill

(except Clauses 4, 7, 10, 19, 35 and 72)

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David Gauke

185

Clause  53,  page  32,  leave out lines 18 to 32 and insert—

‘(7)	Where a person prepares or is required to prepare accounts in accordance with

new standards for a period of account, the Taxes Acts (other than this section)

have effect as if the person prepared or was required to prepare accounts, for that

period, in accordance with the corresponding old standards.

(8)	For the purposes of subsection (7)—’.

David Gauke

186

Clause  53,  page  33,  leave out lines 3 and 4.

Foreign pensions of UK residents

David Gauke

NC4

To move the following Clause:—

‘(1)	In Part 2 of TIOPA 2010 (double taxation relief), in Chapter 3 (miscellaneous

provisions), after section 130 insert—

“130A

Interpreting provision about UK taxation of pensions etc

(1)	Subsection (3) applies if double taxation arrangements make the

provision, however expressed, mentioned in subsection (2).

(2)	The provision is that pensions and other similar remuneration which—

(a)	arise outside the United Kingdom, and

Notices of Amendments: 2 June 2011

146

Finance (N, continued

(b)	are paid to persons who are resident in the United Kingdom,

are not to be subject to United Kingdom tax.

(3)	That provision does not prevent a pension or other similar remuneration

of a person resident in the United Kingdom being chargeable to income

tax if—

(a)	the pension or other similar remuneration is paid out of sums or

assets that were the subject of a relevant transfer or related sums

or assets, and

(b)	the relevant transfer or any transaction forming part of that

transfer was, or formed part of, a tax avoidance scheme.

(4)	But nothing in subsection (3) prevents credit being allowed under

Chapter 2 of this Part (double taxation relief by way of credit) against any

tax so charged.

(5)	In determining whether a pension or other similar remuneration is paid

out of sums or assets within subsection (3)(a), it is to be assumed that it

is paid out of such sums or assets in priority to any other sums or assets.

(6)	A “relevant transfer”, in respect of any sums or assets, is a transaction or

series of transactions as a result of which—

(a)	the sums or assets are transferred out of a pension scheme, and

(b)	the sums or assets or related sums or assets (or both) are

transferred into the pension scheme under which the pension or

other similar remuneration is paid.

(7)	A scheme is a “tax avoidance scheme” if the main purpose, or one of the

main purposes, of any party to the scheme in entering into the scheme is

to secure an income tax advantage for any person under this Part by virtue

of provision mentioned in subsection (2) made by double taxation

arrangements.

(8)	For the purposes of subsection (7)—

(a)	“scheme” includes any scheme, arrangements or understanding

of any kind whatever, whether or not legally enforceable,

involving a single transaction or two or more transactions,

(b)	it does not matter whether or not the double taxation

arrangements were in existence at the time the tax avoidance

scheme was entered into or given effect to, and

(c)	“income tax advantage” is to be construed in accordance with

section 572A(3) to (5) of ITA 2007.

(9)	In this section—

“pension” and “other similar remuneration” have the same meaning as in

the Model Tax Convention on Income and on Capital published (from

time to time) by the Organisation for Economic Cooperation and

Development;

“pension scheme” has the same meaning as in Part 4 of FA 2004 (see section

150 of that Act);

“related sums or assets”, in relation to other sums or assets (“the original

sums or assets”), means sums or assets which arise, or (directly or

indirectly) derive, from the original sums or assets or from sums or assets

which so arise or derive.”

Notices of Amendments: 2 June 2011

147

Finance (N, continued

(2)	The amendment made by this section has effect in relation to the tax year 2011-

12 and subsequent tax years (and it does not matter whether the tax avoidance

scheme was entered into or effected before, or on or after, 6 April 2011).’.

Mr David Hanson

Kerry McCarthy

187

Schedule  19,  page  297,  line  1,  at end insert—

‘(4)	The Secretary of State will review the steps for determining the amount of the

bank levy outlined in paragraph 6(2) and lay a report before the House of

Commons, before 31 December 2011. This review shall include the

Government’s analysis behind the rate and threshold chosen for the bank levy and

provide a forecast for the change in both gross and net yield that would be

achieved if the Secretary of State were to reduce the amounts in Step 5 from

£20,000,000,000 to £10,000,000,000.’.

Mr David Hanson

Kerry McCarthy

188

Clause  66,  page  39,  line  7,  at end add—

‘The Chancellor of the Exchequer must, no later than 1 April 2012, compile and

lay before the House of Commons a report containing an assessment of the impact

of this Clause and accompanying Schedule 17, including the impact in creating

marginal effective rates of taxation of over 100 per cent. (when considering the

impact of this Clause and the relevant income tax rates in force)’.

Mr David Hanson

Kerry McCarthy

189

Schedule  18,  page  290,  line  2,  leave out ‘£18,000’ and insert ‘£21,500’.

Mr David Hanson

Kerry McCarthy

190

Schedule  18,  page  290,  line  9,  leave out ‘£18,000’ and insert ‘£21,500’.

Mr David Hanson

Kerry McCarthy

191

Schedule  18,  page  290,  line  17,  leave out ‘£18,000’ and insert ‘£21,500’.

Mr David Hanson

Kerry McCarthy

192

Schedule  18,  page  290,  line  24,  leave out ‘£18,000’ and insert ‘£21,500’.

© Parliamentary copyright	Revised 3 June 2011