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57

 

House of Commons

 
 

Notices of Amendments

 

given on

 

Thursday 12 May 2011

 

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

 

Finance (No. 3) Committee 38-55

 

Public Bill Committee


 

Finance (No. 3) Bill

 

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


 

David Hanson

 

Kerry McCarthy

 

95

 

Page  18,  line  31,  leave out Clause 26.

 

David Hanson

 

Kerry McCarthy

 

96

 

Clause  27,  page  19,  line  3,  at end add—

 

‘(2)    

The Treasury shall prepare a report by 1 January 2012 on the impact of Schedule

 

3 on charities and community amateur sports clubs.’.

 

David Hanson

 

Kerry McCarthy

 

97

 

Clause  40,  page  26,  line  6,  at end add—

 

‘(7)    

The Treasury shall, within three months of the passing of this Act publish final

 

details of a new UK-wide Government contribution-based tax-free children’s

 

savings scheme for looked-after children.’.

 

David Hanson

 

Kerry McCarthy

 

98

 

Clause  40,  page  26,  line  6,  at end add—

 

‘(7)    

The Government will, by 30 September 2011, publish a report on—

 

(a)    

children’s savings accounts, and

 

(b)    

saving across society,

 

    

including the impact of Government policy.’.


 
 

Notices of Amendments: 12 May 2011                     

58

 

Finance (N, continued

 
 

David Hanson

 

Kerry McCarthy

 

99

 

Clause  43,  page  27,  line  18,  leave out subsection (6).

 

David Hanson

 

Kerry McCarthy

 

100

 

Clause  47,  page  28,  line  11,  at end add—

 

‘(2)    

Notwithstanding the provisions of paragraph 14 of Schedule 12, the Schedule will

 

not come into force until a full impact assessment on developing countries’ tax

 

revenue has been laid before and approved by the House of Commons.’.

 

David Hanson

 

Kerry McCarthy

 

101

 

Schedule  13,  page  213,  line  31,  leave out ‘on the day on which this Act is passed’

 

and insert ‘when a full impact assessment on developing countries’ tax revenue has been

 

laid before and approved by the House of Commons.’.

 

David Gauke

 

102

 

Schedule  2,  page  54,  line  6,  leave out ‘Subject to section 554B(5), in’ and insert

 

‘In’.

 

David Gauke

 

103

 

Schedule  2,  page  55,  line  21,  leave out from beginning to end of line 8 on page 56.

 

David Gauke

 

104

 

Schedule  2,  page  74,  line  8,  leave out ‘five’ and insert ‘ten’.

 

David Gauke

 

105

 

Schedule  2,  page  96,  line  29,  at end insert—

 

‘Chapter 3

 

Undertakings given by employers etc in relation to retirement

 

benefits etc

 

554Z15 

Application etc

 

(1)    

This Chapter applies if there is an undertaking (“the relevant

 

undertaking”) that a contribution to which subsection (2) would apply

 

will be paid.

 

(2)    

This subsection applies to a contribution if—

 

(a)    

the contribution is paid to an arrangement which is not a

 

registered pension scheme,

 

(b)    

in connection with that arrangement (directly or indirectly),

 

relevant benefits are to be provided (directly or indirectly) out

 

of the contribution by a relevant third person,


 
 

Notices of Amendments: 12 May 2011                     

59

 

Finance (N, continued

 
 

(c)    

the provision of the relevant benefits would be a relevant step,

 

and

 

(d)    

the contribution is neither a tax-relieved contribution nor tax-

 

exempt provision.

 

(3)    

In subsection (2)—

 

“relevant benefits” has the same meaning as in Chapter 2 of Part 6, but

 

ignoring section 393B(2)(a),

 

“relevant third person” means a person within section 554A(7)(a) to (c)

 

(ignoring this Chapter), and

 

“tax-exempt provision” and “tax-relieved contribution” have the

 

meaning given by paragraph 3(3) and (4) of Schedule 34 to FA 2004.

 

(4)    

In this Chapter references to an undertaking include references to—

 

(a)    

an undertaking which is not legally enforceable, and

 

(b)    

an undertaking which is to be performed only on or following

 

the meeting of a condition (including a condition which might

 

never be met).

 

554Z16 

Employer etc to be treated as relevant third person etc

 

(1)    

If B takes a step within section 554Z17 or 554Z18, Chapters 1 and 2

 

have effect in relation to the step—

 

(a)    

as if B were a relevant third person for the purposes of section

 

554A(1)(d), and

 

(b)    

as if the step were a relevant step within section 554B (if it

 

would not otherwise be).

 

(2)    

For the purpose of determining whether Chapter 2 applies by reason

 

of the step, Chapter 1 has effect—

 

(a)    

as if sections 554F to 554N, 554R to 554T, 554V and 554W

 

were omitted,

 

(b)    

if the step is within section 554Z17, as if sections 554P(2)(d),

 

(3) and (4) and 554Q(1)(c) and (d), (1A) and (1B) were

 

omitted, and

 

(c)    

if the step is within section 554Z18, as if sections 554P and

 

554Q were omitted.

 

(3)    

If Chapter 2 applies by reason of the step, Chapter 2 has effect as if

 

sections 554Z6 to 554Z11 were omitted.

 

(4)    

If Chapter 2 does not apply by reason of the step by virtue of section

 

554E(3) or (5A), section 554E(6) and (7) does not apply in relation to

 

the step.

 

(5)    

For further modifications of Chapters 1 and 2, see sections 554Z17(3)

 

and (4), 554Z18(5) and (6), 554Z19 and 554Z20.

 

(6)    

Regulations under section 554X may (in particular) make provision

 

covering cases in which Chapters 1 and 2 have effect as provided for

 

by this section.

 

(7)    

In this Chapter—

 

(a)    

references to B do not include references to B acting as a

 

trustee,


 
 

Notices of Amendments: 12 May 2011                     

60

 

Finance (N, continued

 
 

(b)    

if B is a company and is a member of a group of companies,

 

references to B are to be read as including references to any

 

other company which is a member of that group, and

 

(c)    

if B is a limited liability partnership, references to B are to be

 

read as including references to any company which is a

 

wholly-owned subsidiary (as defined in section 1159(2) of the

 

Companies Act 2006) of B.

 

554Z17 

Earmarking etc

 

(1)    

B takes a step within this section if—

 

(a)    

a sum of money or asset held by or on behalf of B is earmarked

 

(however informally) by B with a view to the relevant

 

undertaking being performed at a later time (wholly or partly)

 

out of—

 

(i)    

that sum of money or asset, or

 

(ii)    

any sum of money or asset which may arise or derive

 

(directly or indirectly) from it, or

 

(b)    

a sum of money or asset otherwise starts being held by or on

 

behalf of B, specifically with a view, so far as B is concerned,

 

to the relevant undertaking being performed at a later time

 

(wholly or partly) out of—

 

(i)    

that sum of money or asset, or

 

(ii)    

any sum of money or asset which may arise or derive

 

(directly or indirectly) from it.

 

(2)    

For the purposes of subsection (1)(b) it does not matter whether or not

 

the sum of money or asset in question has previously been held by or

 

on behalf of B on a basis which is different to that mentioned in

 

subsection (1)(b).

 

(3)    

Subsection (4) applies if, in the application of section 554P or 554Q in

 

any case, the relevant step mentioned in section 554P(2)(a) or

 

554Q(3)(a) is a step within this section taken by B.

 

(4)    

In section 554P(2)(c) or 554Q(3)(c) (as the case may be) the reference

 

to section 554B(1)(a) or (b) is to be read as a reference to subsection

 

(1)(a) or (b) above.

 

554Z18 

Provision of security

 

(1)    

B takes a step within this section if B provides security for the

 

performance of the relevant undertaking.

 

(2)    

For the purposes of this Part, the sum of money or asset which is the

 

subject of the step is to be taken to be—

 

(a)    

any sums of money which, as at the time the step is taken, are

 

the subject of the security, and

 

(b)    

any assets which, as at that time, are the subject of the

 

security,

 

    

and references to the sum of money or asset which is the subject of a

 

relevant step are to be read accordingly.

 

(3)    

If, when the step is taken, the security covers other undertakings as

 

well as the relevant undertaking, the sums of money and assets within

 

subsection (2)(a) and (b) are to be apportioned between the relevant

 

undertaking and the other undertakings on a just and reasonable basis.


 
 

Notices of Amendments: 12 May 2011                     

61

 

Finance (N, continued

 
 

(4)    

Subsections (2) and (3) are subject to section 554Z19(7).

 

(5)    

Section 554P does not apply in any case in which the relevant step

 

mentioned in section 554P(2)(a) would be a step within this section

 

taken by B.

 

(6)    

Section 554Q(3) does not apply in any case in which the relevant step

 

mentioned in section 554Q(3)(a) would be a step within this section

 

taken by B.

 

(7)    

In this Chapter references to providing security for the performance of

 

an undertaking are references to providing such security in any way,

 

however informal.

 

554Z19 

Valuation of step within section 554Z18

 

(1)    

This section applies if, by virtue of section 554Z16, Chapter 2 applies

 

by reason of a step taken by B within section 554Z18.

 

(2)    

Section 554Z2 has effect as if subsections (3) and (4) below were

 

substituted for subsections (1) to (6) of that section.

 

(3)    

The value of the relevant step is—

 

(a)    

the amount to be paid as a contribution under the relevant

 

undertaking determined, as at the time the step is taken, on a

 

just and reasonable basis assuming that any condition to be

 

met before any payment is made will be met, or

 

(b)    

if lower, the value of the security.

 

(4)    

For the purposes of subsection (3)(b) the value of the security—

 

(a)    

consists of—

 

(i)    

the total amount of the sums of money included in the

 

subject of the step (see section 554Z18(2)(a)), and

 

(ii)    

the total market value, as at the time the step is taken,

 

of the assets included in the subject of the step (see

 

section 554Z18(2)(b)), but

 

(b)    

is to be subject to a just and reasonable reduction to take

 

account of any term of the security which limits the total

 

amount which may be made available under the security for

 

the performance of the relevant undertaking to an amount

 

which is lower than the amount determined under paragraph

 

(a).

 

(5)    

The following subsections apply if, as at the end of the day of an

 

anniversary of the taking of the step (“the anniversary day”), B

 

continues to provide the security for the performance of the relevant

 

undertaking.

 

(6)    

This Part has effect as if B’s continuing to provide the security were a

 

new step (“the anniversary step”) within section 554Z18—

 

(a)    

which is taken by B at the end of the anniversary day, and

 

(b)    

by reason of which Chapter 2 is to apply by virtue of section

 

554Z16 (subject only to section 554A(4)).

 

(7)    

If the total amount of the sums of money which are the subject of the

 

security (“the security sums”) varies from time to time, for the purpose

 

of determining the sums of money included in the subject of the

 

anniversary step, in section 554Z18(2)(a) the reference to the time the


 
 

Notices of Amendments: 12 May 2011                     

62

 

Finance (N, continued

 
 

step is taken is to be read as a reference to the time during the

 

preceding year at which the total amount of the security sums is at its

 

highest.

 

(8)    

For the purposes of subsection (4)(a)(ii) the market value of any asset

 

included in the subject of the anniversary step may be determined as

 

at any time during the preceding year (so long as the asset is the subject

 

of the security, or one of the assets which is the subject of the security,

 

as at that time).

 

(9)    

In subsections (7) and (8) “the preceding year” means the year ending

 

with the anniversary day.

 

554Z20 

Relief for earmarking or security not followed by contribution or

 

relevant benefit

 

(1)    

This section applies if, by virtue of section 554Z16, Chapter 2 applies

 

by reason of a step taken by B within section 554Z17 or 554Z18.

 

(2)    

Section 554Z13 has effect in relation to the step with the following

 

modifications.

 

(3)    

Subsection (1)(b) has effect as if for “not a relevant step in relation to

 

a relevant sum or asset” there were substituted “neither the payment of

 

the relevant contribution (or any part of it) nor the provision of any

 

relevant benefit”.

 

(4)    

Subsection (1)(c) has effect as if for the words from “no further

 

relevant step” to “any relevant sum or asset” there were substituted

 

“the relevant contribution (or any part of it) will not be paid or a

 

relevant benefit will not be provided”.

 

(5)    

Subsection (1) has effect as if subsection (6) below were substituted

 

for subsection (3).

 

(6)    

In subsection (1)—

 

(a)    

“the relevant contribution” means the contribution to be paid

 

under the relevant undertaking (within the meaning of

 

Chapter 3), and

 

(b)    

“relevant benefit” means a relevant benefit to be provided out

 

of the relevant contribution as mentioned in section

 

554Z15(2)(b) and (c).”’.

 

David Gauke

 

106

 

Schedule  2,  page  111,  line  5,  at end insert—

 

‘57A (1)  

This paragraph applies if—

 

(a)    

B takes a step within section 554Z18 of ITEPA 2003 before 6 April

 

2011 by providing security (“the early security”) for the performance

 

of an undertaking (“the early undertaking”),

 

(b)    

on or after 6 April 2011 at a time when B is continuing to provide the

 

early security, there is a change in the terms of the early undertaking

 

which does not amount to the giving of a new undertaking, and

 

(c)    

as a result of the change, the amount to be paid as a contribution (“the

 

early contribution”) under the early undertaking increases, or will

 

increase.

 

      (2)  

Chapter 3 of Part 7A of ITEPA 2003 has effect—


 
 

Notices of Amendments: 12 May 2011                     

63

 

Finance (N, continued

 
 

(a)    

as if the change in the terms of the early undertaking were a new

 

undertaking to pay a contribution covering the increase in the amount

 

of the early contribution as determined on a just and reasonable basis,

 

and

 

(b)    

as if B, in continuing to provide the early security, provides security

 

for the performance of the new undertaking at the time of the change

 

in the terms.

 

      (3)  

Section 554Z16(7) of ITEPA 2003 applies for the purposes of this paragraph

 

as it applies for the purposes of Chapter 3 of Part 7A of that Act.’.

 

David Gauke

 

107

 

Clause  31,  page  20,  leave out lines 14 and 15 and insert—

 

‘(c)    

subsection (2) may operate to prevent subsection (1) applying by virtue

 

of paragraph (b), unless subsection (2AB) applies.

 

(2AB)    

This subsection applies if company A’s ceasing to be a member of the first group

 

at the same time as one or more associated companies forms part of arrangements

 

the main purpose, or one of the main purposes, of which is the avoidance of a

 

liability to corporation tax.’

 

David Gauke

 

108

 

Schedule  8,  page  159,  line  11,  leave out from ‘earnings’ to end of line 12 and insert

 

‘specified in regulations made by the Treasury under this paragraph.’.

 

David Gauke

 

109

 

Schedule  8,  page  159,  leave out lines 13 to 33 and insert—

 

‘(4)    

In subsection (1)(b) “excluded amounts” means amounts specified in regulations

 

made by the Treasury under this subsection.’.

 

David Gauke

 

110

 

Schedule  8,  page  160,  leave out lines 40 to 43 and insert—

 

‘( )    

In subsection (1)—

 

“relevant earnings” has the same meaning as in subsection (1)(a) of section

 

270B (see subsection (3) of that section), and

 

“excluded amounts” has the same meaning as in subsection (1)(b) of section

 

270B (see subsection (4) of that section).’.

 

David Gauke

 

111

 

Schedule  8,  page  161,  line  38,  at end insert—

 

‘          

Regulations made under section 270B(3)(b) or (4) of ITEPA 2003 (inserted by

 

paragraph 3) on or before 31 December 2011 may have retrospective effect in

 

relation to the tax year 2011-12.’.

 

David Gauke

 

112

 

Schedule  10,  page  171,  line  22,  at end insert—

 

    ‘(4)  

But where an early commencement election is made in relation to a group—


 
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