Session 2010 - 12
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Other Bills before Parliament

167

House of Commons

Thursday 9 June 2011

Public Bill Committee

New Amendments handed in are marked thus

Amendments which will comply with the required notice period at their next appearance

Finance (No. 3) Bill

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

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Note

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

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

Public Bill Committee: 9 June 2011

168

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

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.

(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

Public Bill Committee: 9 June 2011

169

Finance (No. 3) Bill , continued

(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:—

‘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

170

Finance (No. 3) Bill , continued

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.’.

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.

Public Bill Committee: 9 June 2011

171

Finance (No. 3) Bill , continued

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 9 June 2011