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

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

David Gauke

77

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

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

David Gauke

79

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

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

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

David Gauke

82

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

David Gauke

83

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

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

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

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

David Gauke

87

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

or’.

David Gauke

88

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

David Gauke

89

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

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

David Gauke

91

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

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

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

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.

© Parliamentary copyright	Revised 12 May 2011