Session 2010 - 12
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Other Bills before Parliament




House of Commons


Thursday 9 June 2011


Public Bill Committee


New Amendments handed in are marked thus Parliamentary Star


Parliamentary Star - whiteAmendments which will comply with the required notice period at their next appearance


Finance (No. 3) Bill


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




The Amendments have been arranged in accordance with the order of the


Committee [10 May].


Ordered, That the order in which proceedings are taken shall be: Clauses 1 to 3;


Clauses 5 and 6; Clauses 8 and 9; Clauses 11 to 15; Schedule 1; Clauses 16 to 18; Clauses


20 to 26; Schedule 2; Clause 27; Schedule 3; Clause 28; Schedule 4; Clauses 29 and 30;


Schedule 5; Clauses 31 and 32; Schedule 6; Clauses 33 and 34; Schedules 7 and 8; Clauses


36 to 44; Schedule 9; Clause 45; Schedule 10; Clause 46; Schedule 11; Clause 47;


Schedule 12; Clause 48; Schedule 13; Clauses 49 to 52; Schedule 14; Clauses 53 to 64;


Schedule 15; Clause 65; Schedule 16; Clause 66; Schedule 17; Clause 67; Schedule 18;


Clauses 68 to 71; Schedule 19; Clauses 73 to 77; Schedule 20; Clauses 78 to 82; Schedule


21; Clause 83; Schedule 22; Clauses 84 to 86; Schedules 23 and 24; Clause 87; Schedule


25; Clauses 88 to 91; Schedule 26; new Clauses; new Schedules; Clauses 92 and 93.



Nic Dakin


Caroline Lucas


Zac Goldsmith


Stella Creasy


Dr Alan Whitehead




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



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


Public Bill Committee: 9 June 2011                     



Finance (No. 3) Bill , continued


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




Page  44,  line  32,  leave out Clause 79.





Foreign pensions of UK residents


David Gauke




To move the following Clause:—



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


provisions), after section 130 insert—



Interpreting provision about UK taxation of pensions etc



Subsection (3) applies if double taxation arrangements make the


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



The provision is that pensions and other similar remuneration which—



arise outside the United Kingdom, and



are paid to persons who are resident in the United Kingdom,



are not to be subject to United Kingdom tax.



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—



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



the relevant transfer or any transaction forming part of that


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



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.



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.



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


series of transactions as a result of which—



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


Public Bill Committee: 9 June 2011                     



Finance (No. 3) Bill , continued



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.



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





For the purposes of subsection (7)—



“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,



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



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


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



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




“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.”



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




To move the following Clause:—


‘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.’.



Public Bill Committee: 9 June 2011                     



Finance (No. 3) Bill , continued


VAT and charitable healthcare providers


Nic Dakin




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




To move the following Clause:—



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—



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


credit to consumers;



the timetable for imposition of the banking levy to prevent further


consumer detriment in the provision of high cost credit;



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


credit market for UK consumers; and



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.’.



Order of the House [26 April 2011]





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





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


Public Bill Committee: 9 June 2011                     



Finance (No. 3) Bill , continued



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 9 June 2011