Session 2010 - 12
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Other Bills before Parliament

Public Bill Committee: 7 June 2011

163

Finance (No. 3) Bill continued

(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.”

(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).’.

Private finance initiative income

Caroline Lucas

NC1

To move the following Clause:—

Public Bill Committee: 7 June 2011

164

Finance (No. 3) Bill continued

‘The Treasury shall, within six months of the passing of this Act, report to

Parliament its assessment of the amount of tax revenue forgone by companies

receiving payments under Private Finance Initiative contracts being based outside

the United Kingdom.’.

VAT and charitable healthcare providers

Nic Dakin

NC2

To move the following Clause:—

‘The Treasury shall, within one year of the passing of this Act, lay a report before

Parliament on the treatment for Value Added Tax of supplies by charities to

bodies exercising functions on behalf of a Minister of the Crown of healthcare or

welfare services or associated goods’.

Review of the bank levy

Stella Creasy

David Miliband

Mrs Jenny Chapman

Steve Rotheram

Mr Graham Allen

Alex Cunningham

Hugh Bayley

Nic Dakin

Mr John Leech

NC3

To move the following Clause:—

‘(1)	The Government shall lay before Parliament a review of the bank levy which will

consider whether the levy should be applied to groups judged by the Financial

Services Authority (or its successor body) to have engaged in high cost credit

lending which is detrimental to consumers. This review shall consider the

following matters—

(a)	the impact such an application could have on the provision of high cost

credit to consumers;

(b)	the timetable for imposition of the banking levy to prevent further

consumer detriment in the provision of high cost credit;

(c)	the consequences of a failure by Government to intervene in the high cost

credit market for UK consumers; and

(d)	at what level the levy should be set at for such bodies so as to discourage

lending in a manner which is detrimental to consumers.’.

Public Bill Committee: 7 June 2011

165

Finance (No. 3) Bill continued

Order of the House [26 April 2011]

That—

1.	Clauses 4, 7, 10, 19, 35 and 72 be committed to a Committee of the whole

House.

2.	The remainder of the Bill be committed to a Public Bill Committee.

3.	When the provisions of the Bill considered by the Committee of the whole

House and the Public Bill Committee have been reported to the House, the

Bill be proceeded with as if it had been reported as a whole to the House from

the Public Bill Committee.

© Parliamentary copyright	Revised 7 June 2011