Session 2010 - 12
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Other Bills before Parliament

Public Bill Committee: 24 May 2011

134

Finance (No. 3) Bill, continued

David Gauke

133

Schedule  17,  page  285,  line  3,  leave out ‘the day before’.

David Gauke

134

Schedule  19,  page  302,  line  30,  after ‘liabilities’ insert ‘(“M’s liabilities”)’.

David Gauke

135

Schedule  19,  page  302,  line  31,  after ‘to M’ insert ‘(“N’s liabilities”)’.

David Gauke

136

Schedule  19,  page  302,  line  34,  leave out ‘to N’.

David Gauke

137

Schedule  19,  page  302,  line  34,  leave out ‘to M’.

David Gauke

138

Schedule  19,  page  302,  line  43,  leave out ‘and’ and insert—

‘( )	a liability which M has to N to which sub-paragraph (2A) applies is to

be treated as a liability to which an asset of N corresponds, and’.

David Gauke

139

Schedule  19,  page  302,  line  47,  at end insert—

‘(2A)

This sub-paragraph applies to a liability which M has to N if—

(a)	as at the end of the chargeable period, the assets of the relevant group

include a financial asset in respect of an advance of cash made by M

to N,

(b)	underlying that asset, as collateral, are securities which have been

transferred by M to another person,

(c)	the liability is a financial liability in respect of M’s obligation to return

the securities or similar securities to N, and

(d)	the provision mentioned in sub-paragraph (1)(c) covers both the

financial asset mentioned in paragraph (a) and that financial liability.

Section 556 of CTA 2009 (meaning of securities and similar securities) applies

for the purposes of this sub-paragraph as it applies for the purposes of Chapter

10 of Part 6 of that Act.’.

David Gauke

140

Schedule  19,  page  303,  line  1,  leave out ‘to N’.

Public Bill Committee: 24 May 2011

135

Finance (No. 3) Bill, continued

David Gauke

141

Schedule  19,  page  303,  line  6,  leave out ‘to M’.

David Gauke

142

Schedule  19,  page  306,  line  34,  leave out paragraph (a) and insert—

‘(a)	an entity (“M”) within sub-paragraph (9) has liabilities to another

entity (“N”) not within that sub-paragraph, and N has assets which

correspond to those liabilities (“M’s liabilities”),’

David Gauke

143

Schedule  19,  page  306,  line  38,  after ‘to M’ insert ‘(“N’s liabilities”)’.

David Gauke

144

Schedule  19,  page  306,  line  41,  leave out ‘to N’.

David Gauke

145

Schedule  19,  page  306,  line  41,  leave out ‘to M’.

David Gauke

146

Schedule  19,  page  307,  line  1,  leave out ‘In’ and insert ‘For the purposes of’.

David Gauke

147

Schedule  19,  page  307,  line  3,  at end insert—

‘( )	if N is a relevant foreign bank covered by paragraph 17(17), liabilities

of M to N are to be ignored so far as N’s assets corresponding to those

liabilities are assets of the permanent establishment through which N

carries on a trade in the United Kingdom as determined at Step 2 in

paragraph 24(1),’.

David Gauke

148

Schedule  19,  page  307,  line  6,  leave out ‘and’ and insert—

‘( )	a liability which M has to N to which sub-paragraph (10A) applies is

to be treated as a liability to which an asset of N corresponds, and’.

David Gauke

149

Schedule  19,  page  307,  line  10,  at end insert—

‘(10A)

This sub-paragraph applies to a liability which M has to N if—

(a)	as at the end of the chargeable period, the assets of M include a

financial asset in respect of an advance of cash made by M to N,

(b)	underlying that asset, as collateral, are securities which have been

transferred by M to another person,

(c)	the liability is a financial liability in respect of M’s obligation to return

the securities or similar securities to N, and

Public Bill Committee: 24 May 2011

136

Finance (No. 3) Bill, continued

(d)	the provision mentioned in sub-paragraph (8)(c) covers both the

financial asset mentioned in paragraph (a) and that financial liability.

Section 556 of CTA 2009 (meaning of securities and similar securities) applies

for the purposes of this sub-paragraph as it applies for the purposes of Chapter

10 of Part 6 of that Act.’.

David Gauke

150

Schedule  19,  page  307,  line  13,  leave out ‘to N’.

David Gauke

151

Schedule  19,  page  307,  line  18,  leave out ‘to M’.

David Gauke

152

Schedule  19,  page  310,  line  46,  leave out paragraph (a) and insert—

‘(a)	an entity (“M”) within sub-paragraph (9) has liabilities to another

entity (“N”) not within that sub-paragraph, and N has assets which

correspond to those liabilities (“M’s liabilities”),’

David Gauke

153

Schedule  19,  page  311,  line  3,  after ‘to M’ insert ‘(“N’s liabilities”)’.

David Gauke

154

Schedule  19,  page  311,  line  6,  leave out ‘to N’.

David Gauke

155

Schedule  19,  page  311,  line  6,  leave out ‘to M’.

David Gauke

156

Schedule  19,  page  311,  line  13,  leave out ‘In sub-paragraph (8)(c)’ and insert ‘For

the purposes of sub-paragraph (8)’.

David Gauke

157

Schedule  19,  page  311,  line  15,  at end insert—

‘( )	if N is a relevant foreign bank covered by paragraph 19(17), liabilities

of M to N are to be ignored so far as N’s assets corresponding to those

liabilities are assets of the permanent establishment through which N

carries on a trade in the United Kingdom as determined at Step 2 in

paragraph 24(1),’.

David Gauke

158

Schedule  19,  page  311,  line  18,  leave out ‘and’ and insert—

‘( )	a liability which M has to N to which sub-paragraph (10A) applies is

to be treated as a liability to which an asset of N corresponds, and’.

Public Bill Committee: 24 May 2011

137

Finance (No. 3) Bill, continued

David Gauke

159

Schedule  19,  page  311,  line  22,  at end insert—

‘(10A)

This sub-paragraph applies to a liability which M has to N if—

(a)	as at the end of the chargeable period, the assets of M include a

financial asset in respect of an advance of cash made by M to N,

(b)	underlying that asset, as collateral, are securities which have been

transferred by M to another person,

(c)	the liability is a financial liability in respect of M’s obligation to return

the securities or similar securities to N, and

(d)	the provision mentioned in sub-paragraph (8)(c) covers both the

financial asset mentioned in paragraph (a) and that financial liability.

Section 556 of CTA 2009 (meaning of securities and similar securities) applies

for the purposes of this sub-paragraph as it applies for the purposes of Chapter

10 of Part 6 of that Act.’.

David Gauke

160

Schedule  19,  page  311,  line  25,  leave out ‘to N’.

David Gauke

161

Schedule  19,  page  311,  line  30,  leave out ‘to M’.

David Gauke

162

Schedule  19,  page  312,  line  37,  after ‘liabilities’ insert ‘(“the relevant entity’s

liabilities”)’.

David Gauke

163

Schedule  19,  page  312,  line  39,  after ‘entity’ insert ‘(“N’s liabilities”)’.

David Gauke

164

Schedule  19,  page  312,  line  42,  leave out ‘to N’.

David Gauke

165

Schedule  19,  page  312,  line  43,  leave out ‘to the relevant entity’.

David Gauke

166

Schedule  19,  page  312,  line  47,  leave out ‘In’ and insert ‘For the purposes of’.

David Gauke

167

Schedule  19,  page  313,  line  3,  leave out ‘and’ and insert—

‘( )	a liability which the relevant entity has to N to which sub-paragraph

(2A) applies is to be treated as a liability to which an asset of N

corresponds, and’.

Public Bill Committee: 24 May 2011

138

Finance (No. 3) Bill, continued

David Gauke

168

Schedule  19,  page  313,  line  7,  at end insert—

‘(2A)

This sub-paragraph applies to a liability which the relevant entity has to N if—

(a)	as at the end of the chargeable period, the assets of the relevant entity

include a financial asset in respect of an advance of cash made by the

relevant entity to N,

(b)	underlying that asset, as collateral, are securities which have been

transferred by the relevant entity to another person,

(c)	the liability is a financial liability in respect of the relevant entity’s

obligation to return the securities or similar securities to N, and

(d)	the provision mentioned in sub-paragraph (1)(c) covers both the

financial asset mentioned in paragraph (a) and that financial liability.

Section 556 of CTA 2009 (meaning of securities and similar securities) applies

for the purposes of this sub-paragraph as it applies for the purposes of Chapter

10 of Part 6 of that Act.’.

David Gauke

169

Schedule  19,  page  313,  line  9,  after ‘of the’ insert ‘relevant’.

David Gauke

170

Schedule  19,  page  313,  line  10,  leave out ‘its liabilities to N’ and insert ‘the

relevant entity’s liabilities’.

David Gauke

171

Schedule  19,  page  313,  line  16,  leave out ‘to the relevant entity’.

David Gauke

172

Schedule  19,  page  314,  line  30,  after ‘liabilities’ insert ‘(“the bank’s liabilities”)’.

David Gauke

173

Schedule  19,  page  314,  line  32,  after ‘bank’ insert ‘(“N’s liabilities”)’.

David Gauke

174

Schedule  19,  page  314,  line  35,  leave out ‘to N’.

David Gauke

175

Schedule  19,  page  314,  line  36,  leave out ‘to the bank’.

Public Bill Committee: 24 May 2011

139

Finance (No. 3) Bill, continued

David Gauke

176

Schedule  19,  page  314,  line  46,  leave out ‘In’ and insert ‘For the purposes of’.

David Gauke

177

Schedule  19,  page  315,  line  5,  leave out ‘and’ and insert—

‘( )	a liability which the relevant foreign bank has to N to which sub-

paragraph (3A) applies is to be treated as a liability to which an asset

of N corresponds, and’.

David Gauke

178

Schedule  19,  page  315,  line  9,  at end insert—

‘(3A)

This sub-paragraph applies to a liability which the relevant foreign bank has to

N if—

(a)	as at the end of the chargeable period, the assets of the relevant foreign

bank include a financial asset in respect of an advance of cash made

by the relevant foreign bank to N,

(b)	underlying that asset, as collateral, are securities which have been

transferred by the bank to another person,

(c)	the liability is a financial liability in respect of the bank’s obligation to

return the securities or similar securities to N, and

(d)	the provision mentioned in sub-paragraph (1)(c) covers both the

financial asset mentioned in paragraph (a) and that financial liability.

Section 556 of CTA 2009 (meaning of securities and similar securities) applies

for the purposes of this sub-paragraph as it applies for the purposes of Chapter

10 of Part 6 of that Act.’.

David Gauke

179

Schedule  19,  page  315,  line  25,  leave out ‘its liabilities to N’ and insert ‘the bank’s

liabilities’.

David Gauke

180

Schedule  19,  page  315,  line  30,  leave out ‘to the bank’.

David Gauke

181

Schedule  19,  page  328,  line  36,  leave out paragraph (b) and insert—

‘(b)	a covered bond vehicle, or’.

David Gauke

182

Schedule  19,  page  329,  line  3,  at end insert—

‘“covered bond vehicle” means a limited liability partnership—

(a)	which is a party to a capital market arrangement, or a transaction

in pursuance of a capital market arrangement,

(b)	whose trade or business (ignoring any incidental activities)

consists wholly of one or both of the following—

(i)	providing guarantees, and

Public Bill Committee: 24 May 2011

140

Finance (No. 3) Bill, continued

(ii)	acquiring, owning and managing assets directly or

indirectly forming the whole or part of the security for

the capital market arrangement, and

(c)	which is within the charge to corporation tax;’.

David Gauke

183

Page  44,  line  32,  leave out Clause 79.

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’.

© Parliamentary copyright	Revised 24 May 2011