Session 2010 - 12
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Other Bills before Parliament


 
 

Public Bill Committee: 12 May 2011                     

51

 

Finance (No. 3) Bill, continued

 
 

David Gauke

 

76

 

Parliamentary Star - white    

Schedule  2,  page  75,  leave out lines 11 and 12.

 

David Gauke

 

77

 

Parliamentary Star - white    

Schedule  2,  page  75,  line  28,  leave out from beginning to ‘is’ in line 30 and insert

 

‘of 40 days starting with the day on which the relevant step mentioned in subsection (7)’.

 

David Gauke

 

78

 

Parliamentary Star - white    

Schedule  2,  page  77,  line  17,  leave out ‘554L’ and insert ‘554LA’.

 

David Gauke

 

79

 

Parliamentary Star - white    

Schedule  2,  page  77,  line  39,  leave out from beginning to end of line 40 and

 

insert—

 

‘(d)    

subsection (1A) does not apply.

 

(1A)    

This subsection applies if it is reasonable to suppose that, in essence—

 

(a)    

at the time of the acquisition of sum or asset T, the value of

 

sum or asset T is greater or less than the value of sum or asset

 

S, and

 

(b)    

the difference (or any part of the difference) in the values

 

might not have been expected applying the assumption that all

 

relevant connected persons are acting at arm’s length of each

 

other.

 

(1B)    

In subsection (1A)—

 

(a)    

the reference to sum or asset S is to sum or asset S so far as

 

sum or asset T is acquired out of it, and

 

(b)    

“relevant connected person” means a person with a

 

connection (direct or indirect) to the arrangement under which

 

sum or asset T is acquired.’.

 

David Gauke

 

80

 

Parliamentary Star - white    

Schedule  2,  page  77,  line  43,  at end insert—

 

‘(2A)    

Subsection (3) applies if, on its acquisition, sum or asset T is the

 

subject of a relevant step within section 554B taken by P.’.

 

David Gauke

 

81

 

Parliamentary Star - white    

Schedule  2,  page  77,  line  44,  leave out ‘mentioned in subsection (1)(d)’.

 

David Gauke

 

82

 

Parliamentary Star - white    

Schedule  2,  page  78,  line  4,  at end insert ‘and’.

 

David Gauke

 

83

 

Parliamentary Star - white    

Schedule  2,  page  78,  line  7,  leave out from ‘(b)’ to end of line 18.


 
 

Public Bill Committee: 12 May 2011                     

52

 

Finance (No. 3) Bill, continued

 
 

David Gauke

 

84

 

Parliamentary Star - white    

Schedule  2,  page  78,  line  20,  leave out from beginning to ‘and’ in line 23 and

 

insert—

 

‘(a)    

on its acquisition, sum or asset T—

 

(i)    

is the subject of a relevant step within section 554B

 

taken by P by reason of which Chapter 2 applies or

 

would apply apart from subsection (3) above or any of

 

sections 554H to 554LA, 554P or 554S, or

 

(ii)    

if sub-paragraph (i) does not apply, is held by or on

 

behalf of P on the same basis as that on which sum or

 

asset S was held by or on behalf of P immediately

 

before the acquisition,’.

 

David Gauke

 

85

 

Parliamentary Star - white    

Schedule  2,  page  84,  line  42,  at end insert—

 

‘(5A)    

And for that purpose, section 170(2) to (11) is to be read as if for “75

 

per cent” (wherever occurring) there were substituted “51 per cent”

 

(with section 1154(2) of CTA 2010 applying accordingly).’

 

David Gauke

 

86

 

Parliamentary Star - white    

Schedule  2,  page  88,  line  8,  after ‘section’ insert ‘or section 554Z6’.

 

David Gauke

 

87

 

Parliamentary Star - white    

Schedule  2,  page  88,  line  9,  leave out ‘sections 554Z5 to’ and insert ‘section 554Z5

 

or’.

 

David Gauke

 

88

 

Parliamentary Star - white    

Schedule  2,  page  88,  line  43,  after ‘(10)’ insert ‘or 554LA(4), (6) or (8)’.

 

David Gauke

 

89

 

Parliamentary Star - white    

Schedule  2,  page  89,  line  2,  leave out ‘B may grant A a right (“a relevant share

 

option”)’ and insert ‘a right (“a relevant share option”) may be granted to A’.

 

David Gauke

 

90

 

Parliamentary Star - white    

Schedule  2,  page  89,  line  36,  after ‘554L(10)’ insert ‘or 554LA(8)’.

 

David Gauke

 

91

 

Parliamentary Star - white    

Schedule  2,  page  90,  line  9,  leave out ‘which is three months after’ and insert

 

‘falling immediately after the period of three months starting with’.

 

David Gauke

 

92

 

Parliamentary Star - white    

Schedule  2,  page  90,  line  11,  after ‘at’ insert ‘the end of’.


 
 

Public Bill Committee: 12 May 2011                     

53

 

Finance (No. 3) Bill, continued

 
 

David Gauke

 

93

 

Parliamentary Star - white    

Schedule  2,  page  96,  line  20,  at end insert—

 

‘(10)    

In relation to times after the relief is given, the Tax Acts have effect as

 

if this Chapter had never applied by reason of the original relevant

 

step.’.

 

David Gauke

 

94

 

Parliamentary Star - white    

Schedule  2,  page  111,  line  18,  leave out from ‘earnings’ to end of line 28 and insert

 

‘of A from A’s employment with B within Chapter 1 of Part 3 of ITEPA 2003 for the pre-

 

6 April 2011 tax year, or

 

(ii)    

the tax payable by A for the pre-6 April 2011 tax year was

 

otherwise decided on the basis that the pre-6 April 2011 step

 

was to be treated as giving rise to earnings of A from A’s

 

employment with B within Chapter 1 of Part 3 of ITEPA 2003

 

for that tax year,

 

(e)    

before the chargeable step is taken, A or B has paid, or otherwise

 

accounted for, any tax which A or B is required to pay or otherwise

 

account for as a consequence of—

 

(i)    

the agreement mentioned in paragraph (d)(i), or

 

(ii)    

the tax payable by A for the pre-6 April 2011 tax year having

 

otherwise been decided on the basis mentioned in paragraph

 

(d)(ii), and

 

(f)    

after any reductions under sections 554Z3 to 554Z7 of ITEPA 2003, it

 

is determined on a just and reasonable basis that the value of the

 

chargeable step represents (or still represents after any such

 

reductions) to any extent—

 

(i)    

the earnings treated as arising from the pre-6 April 2011 step

 

as mentioned in paragraph (d)(i) or (ii), or

 

(ii)    

any return on those earnings since the taking of the pre-6 April

 

2011 step (whether income or capital, direct or indirect or

 

realised or unrealised).

 

      (2)  

After any reductions under sections 554Z3 to 554Z7 of ITEPA 2003, the value

 

of the chargeable step is to be reduced (but not below nil) by an amount

 

reflecting the extent to which, as determined under sub-paragraph (1)(f), that

 

value represents (or still represents) the earnings mentioned in sub-paragraph

 

(1)(f)(i) or any return on those earnings mentioned in sub-paragraph (1)(f)(ii).

 

      (3)  

In sub-paragraph (1)(f)(ii) “return” does not include any return so far as, it is

 

reasonable to suppose, the return exceeds the return which might have been

 

expected applying the assumption that all relevant connected persons are

 

acting at arm’s length of each other.

 

      (4)  

In sub-paragraph (3) “relevant connected person” means a person with a

 

connection (direct or indirect) to an arrangement (within the meaning of Part

 

7A of ITEPA 2003) by virtue of which the return arises.’.

 



 
 

Public Bill Committee: 12 May 2011                     

54

 

Finance (No. 3) Bill, continued

 
 

NEW CLAUSES

 

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.’.

 


 

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

 

Bridget Phillipson

 

Jim Fitzpatrick

 

Mrs Madeleine Moon

 

Yvonne Fovargue

 

Mr David Lammy

 

Hazel Blears

 

Fiona O’Donnell

 

Kelvin Hopkins

 

Mr Andrew Smith

 

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;


 
 

Public Bill Committee: 12 May 2011                     

55

 

Finance (No. 3) Bill, continued

 
 

(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.

 

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.

 


 
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Revised 12 May 2011