Session 2010 - 12
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Other Bills before Parliament

Public Bill Committee: 7 June 2011

156

Finance (No. 3) Bill continued

David Gauke

135

Schedule  19,  page  302,  line  31,  after ‘to M’ insert ‘(“N’s liabilities”)’.

David Gauke

136

Schedule  19,  page  302,  line  34,  leave out ‘to N’.

David Gauke

137

Schedule  19,  page  302,  line  34,  leave out ‘to M’.

David Gauke

138

Schedule  19,  page  302,  line  43,  leave out ‘and’ and insert—

‘( )	a liability which M has to N to which sub-paragraph (2A) applies is to

be treated as a liability to which an asset of N corresponds, and’.

David Gauke

139

Schedule  19,  page  302,  line  47,  at end insert—

‘(2A)

This sub-paragraph applies to a liability which M has to N if—

(a)	as at the end of the chargeable period, the assets of the relevant group

include a financial asset in respect of an advance of cash made by M

to N,

(b)	underlying that asset, as collateral, are securities which have been

transferred by M to another person,

(c)	the liability is a financial liability in respect of M’s obligation to return

the securities or similar securities to N, and

(d)	the provision mentioned in sub-paragraph (1)(c) covers both the

financial asset mentioned in paragraph (a) and that financial liability.

Section 556 of CTA 2009 (meaning of securities and similar securities) applies

for the purposes of this sub-paragraph as it applies for the purposes of Chapter

10 of Part 6 of that Act.’.

David Gauke

140

Schedule  19,  page  303,  line  1,  leave out ‘to N’.

David Gauke

141

Schedule  19,  page  303,  line  6,  leave out ‘to M’.

David Gauke

142

Schedule  19,  page  306,  line  34,  leave out paragraph (a) and insert—

‘(a)	an entity (“M”) within sub-paragraph (9) has liabilities to another

entity (“N”) not within that sub-paragraph, and N has assets which

correspond to those liabilities (“M’s liabilities”),’

Public Bill Committee: 7 June 2011

157

Finance (No. 3) Bill continued

David Gauke

143

Schedule  19,  page  306,  line  38,  after ‘to M’ insert ‘(“N’s liabilities”)’.

David Gauke

144

Schedule  19,  page  306,  line  41,  leave out ‘to N’.

David Gauke

145

Schedule  19,  page  306,  line  41,  leave out ‘to M’.

David Gauke

146

Schedule  19,  page  307,  line  1,  leave out ‘In’ and insert ‘For the purposes of’.

David Gauke

147

Schedule  19,  page  307,  line  3,  at end insert—

‘( )	if N is a relevant foreign bank covered by paragraph 17(17), liabilities

of M to N are to be ignored so far as N’s assets corresponding to those

liabilities are assets of the permanent establishment through which N

carries on a trade in the United Kingdom as determined at Step 2 in

paragraph 24(1),’.

David Gauke

148

Schedule  19,  page  307,  line  6,  leave out ‘and’ and insert—

‘( )	a liability which M has to N to which sub-paragraph (10A) applies is

to be treated as a liability to which an asset of N corresponds, and’.

David Gauke

149

Schedule  19,  page  307,  line  10,  at end insert—

‘(10A)

This sub-paragraph applies to a liability which M has to N if—

(a)	as at the end of the chargeable period, the assets of M include a

financial asset in respect of an advance of cash made by M to N,

(b)	underlying that asset, as collateral, are securities which have been

transferred by M to another person,

(c)	the liability is a financial liability in respect of M’s obligation to return

the securities or similar securities to N, and

(d)	the provision mentioned in sub-paragraph (8)(c) covers both the

financial asset mentioned in paragraph (a) and that financial liability.

Section 556 of CTA 2009 (meaning of securities and similar securities) applies

for the purposes of this sub-paragraph as it applies for the purposes of Chapter

10 of Part 6 of that Act.’.

David Gauke

150

Schedule  19,  page  307,  line  13,  leave out ‘to N’.

Public Bill Committee: 7 June 2011

158

Finance (No. 3) Bill continued

David Gauke

151

Schedule  19,  page  307,  line  18,  leave out ‘to M’.

David Gauke

152

Schedule  19,  page  310,  line  46,  leave out paragraph (a) and insert—

‘(a)	an entity (“M”) within sub-paragraph (9) has liabilities to another

entity (“N”) not within that sub-paragraph, and N has assets which

correspond to those liabilities (“M’s liabilities”),’

David Gauke

153

Schedule  19,  page  311,  line  3,  after ‘to M’ insert ‘(“N’s liabilities”)’.

David Gauke

154

Schedule  19,  page  311,  line  6,  leave out ‘to N’.

David Gauke

155

Schedule  19,  page  311,  line  6,  leave out ‘to M’.

David Gauke

156

Schedule  19,  page  311,  line  13,  leave out ‘In sub-paragraph (8)(c)’ and insert ‘For

the purposes of sub-paragraph (8)’.

David Gauke

157

Schedule  19,  page  311,  line  15,  at end insert—

‘( )	if N is a relevant foreign bank covered by paragraph 19(17), liabilities

of M to N are to be ignored so far as N’s assets corresponding to those

liabilities are assets of the permanent establishment through which N

carries on a trade in the United Kingdom as determined at Step 2 in

paragraph 24(1),’.

David Gauke

158

Schedule  19,  page  311,  line  18,  leave out ‘and’ and insert—

‘( )	a liability which M has to N to which sub-paragraph (10A) applies is

to be treated as a liability to which an asset of N corresponds, and’.

David Gauke

159

Schedule  19,  page  311,  line  22,  at end insert—

‘(10A)

This sub-paragraph applies to a liability which M has to N if—

(a)	as at the end of the chargeable period, the assets of M include a

financial asset in respect of an advance of cash made by M to N,

(b)	underlying that asset, as collateral, are securities which have been

transferred by M to another person,

Public Bill Committee: 7 June 2011

159

Finance (No. 3) Bill continued

(c)	the liability is a financial liability in respect of M’s obligation to return

the securities or similar securities to N, and

(d)	the provision mentioned in sub-paragraph (8)(c) covers both the

financial asset mentioned in paragraph (a) and that financial liability.

Section 556 of CTA 2009 (meaning of securities and similar securities) applies

for the purposes of this sub-paragraph as it applies for the purposes of Chapter

10 of Part 6 of that Act.’.

David Gauke

160

Schedule  19,  page  311,  line  25,  leave out ‘to N’.

David Gauke

161

Schedule  19,  page  311,  line  30,  leave out ‘to M’.

David Gauke

162

Schedule  19,  page  312,  line  37,  after ‘liabilities’ insert ‘(“the relevant entity’s

liabilities”)’.

David Gauke

163

Schedule  19,  page  312,  line  39,  after ‘entity’ insert ‘(“N’s liabilities”)’.

David Gauke

164

Schedule  19,  page  312,  line  42,  leave out ‘to N’.

David Gauke

165

Schedule  19,  page  312,  line  43,  leave out ‘to the relevant entity’.

David Gauke

166

Schedule  19,  page  312,  line  47,  leave out ‘In’ and insert ‘For the purposes of’.

David Gauke

167

Schedule  19,  page  313,  line  3,  leave out ‘and’ and insert—

‘( )	a liability which the relevant entity has to N to which sub-paragraph

(2A) applies is to be treated as a liability to which an asset of N

corresponds, and’.

David Gauke

168

Schedule  19,  page  313,  line  7,  at end insert—

‘(2A)

This sub-paragraph applies to a liability which the relevant entity has to N if—

(a)	as at the end of the chargeable period, the assets of the relevant entity

include a financial asset in respect of an advance of cash made by the

relevant entity to N,

Public Bill Committee: 7 June 2011

160

Finance (No. 3) Bill continued

(b)	underlying that asset, as collateral, are securities which have been

transferred by the relevant entity to another person,

(c)	the liability is a financial liability in respect of the relevant entity’s

obligation to return the securities or similar securities to N, and

(d)	the provision mentioned in sub-paragraph (1)(c) covers both the

financial asset mentioned in paragraph (a) and that financial liability.

Section 556 of CTA 2009 (meaning of securities and similar securities) applies

for the purposes of this sub-paragraph as it applies for the purposes of Chapter

10 of Part 6 of that Act.’.

David Gauke

169

Schedule  19,  page  313,  line  9,  after ‘of the’ insert ‘relevant’.

David Gauke

170

Schedule  19,  page  313,  line  10,  leave out ‘its liabilities to N’ and insert ‘the

relevant entity’s liabilities’.

David Gauke

171

Schedule  19,  page  313,  line  16,  leave out ‘to the relevant entity’.

David Gauke

172

Schedule  19,  page  314,  line  30,  after ‘liabilities’ insert ‘(“the bank’s liabilities”)’.

David Gauke

173

Schedule  19,  page  314,  line  32,  after ‘bank’ insert ‘(“N’s liabilities”)’.

David Gauke

174

Schedule  19,  page  314,  line  35,  leave out ‘to N’.

David Gauke

175

Schedule  19,  page  314,  line  36,  leave out ‘to the bank’.

David Gauke

176

Schedule  19,  page  314,  line  46,  leave out ‘In’ and insert ‘For the purposes of’.

David Gauke

177

Schedule  19,  page  315,  line  5,  leave out ‘and’ and insert—

‘( )	a liability which the relevant foreign bank has to N to which sub-

paragraph (3A) applies is to be treated as a liability to which an asset

of N corresponds, and’.

Public Bill Committee: 7 June 2011

161

Finance (No. 3) Bill continued

David Gauke

178

Schedule  19,  page  315,  line  9,  at end insert—

‘(3A)

This sub-paragraph applies to a liability which the relevant foreign bank has to

N if—

(a)	as at the end of the chargeable period, the assets of the relevant foreign

bank include a financial asset in respect of an advance of cash made

by the relevant foreign bank to N,

(b)	underlying that asset, as collateral, are securities which have been

transferred by the bank to another person,

(c)	the liability is a financial liability in respect of the bank’s obligation to

return the securities or similar securities to N, and

(d)	the provision mentioned in sub-paragraph (1)(c) covers both the

financial asset mentioned in paragraph (a) and that financial liability.

Section 556 of CTA 2009 (meaning of securities and similar securities) applies

for the purposes of this sub-paragraph as it applies for the purposes of Chapter

10 of Part 6 of that Act.’.

David Gauke

179

Schedule  19,  page  315,  line  25,  leave out ‘its liabilities to N’ and insert ‘the bank’s

liabilities’.

David Gauke

180

Schedule  19,  page  315,  line  30,  leave out ‘to the bank’.

David Gauke

181

Schedule  19,  page  328,  line  36,  leave out paragraph (b) and insert—

‘(b)	a covered bond vehicle, or’.

David Gauke

182

Schedule  19,  page  329,  line  3,  at end insert—

‘“covered bond vehicle” means a limited liability partnership—

(a)	which is a party to a capital market arrangement, or a transaction

in pursuance of a capital market arrangement,

(b)	whose trade or business (ignoring any incidental activities)

consists wholly of one or both of the following—

(i)	providing guarantees, and

(ii)	acquiring, owning and managing assets directly or

indirectly forming the whole or part of the security for

the capital market arrangement, and

(c)	which is within the charge to corporation tax;’.

Public Bill Committee: 7 June 2011

162

Finance (No. 3) Bill continued

Nic Dakin

Caroline Lucas

Zac Goldsmith

Stella Creasy

Dr Alan Whitehead

184

Clause  77,  page  44,  line  5,  at end add—

‘(2)	The Schedule shall come into force on a date specified by the Treasury by an

order made by Statutory Instrument, which may not be made until an impact

assessment of the effect of this Schedule has been laid before the House of

Commons; and approved by resolution of the House of Commons; and the dates

specified in paragraphs 8(3) and 9(5) of the Schedule shall be replaced by the date

specified in the order under this section if it is later.’.

David Gauke

183

Page  44,  line  32,  leave out Clause 79.

NEW CLAUSES

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

(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.

© Parliamentary copyright	Revised 7 June 2011