House of Commons Public Bill Committee Proceedings

Session 2010 - 12
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Other Bills before Parliament

Public Bill Committee Proceedings: 7 June 2011
42

Finance (N, continued

Mr David Hanson

Kerry McCarthy

Withdrawn  187

Schedule  19,  page  297,  line  1,  at end insert—

‘(4)
The Secretary of State will review the steps for determining the amount of the

bank levy outlined in paragraph 6(2) and lay a report before the House of

Commons, before 31 December 2011. This review shall include the

Government’s analysis behind the rate and threshold chosen for the bank levy and

provide a forecast for the change in both gross and net yield that would be

achieved if the Secretary of State were to reduce the amounts in Step 5 from

£20,000,000,000 to £10,000,000,000.’.

David Gauke

Agreed to  134

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

David Gauke

Agreed to  135

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

David Gauke

Agreed to  136

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

David Gauke

Agreed to  137

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

David Gauke

Agreed to  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

Agreed to  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.’.

Public Bill Committee Proceedings: 7 June 2011
43

Finance (N, continued

David Gauke

Agreed to  140

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

David Gauke

Agreed to  141

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

David Gauke

Agreed to  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

Agreed to  143

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

David Gauke

Agreed to  144

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

David Gauke

Agreed to  145

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

David Gauke

Agreed to  146

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

David Gauke

Agreed to  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

Agreed to  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

Agreed to  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,

Public Bill Committee Proceedings: 7 June 2011
44

Finance (N, continued

(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

Agreed to  150

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

David Gauke

Agreed to  151

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

David Gauke

Agreed to  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

Agreed to  153

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

David Gauke

Agreed to  154

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

David Gauke

Agreed to  155

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

David Gauke

Agreed to  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

Agreed to  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),’.

Public Bill Committee Proceedings: 7 June 2011
45

Finance (N, continued

David Gauke

Agreed to  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’.

David Gauke

Agreed to  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

Agreed to  160

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

David Gauke

Agreed to  161

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

David Gauke

Agreed to  162

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

liabilities”)’.

David Gauke

Agreed to  163

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

David Gauke

Agreed to  164

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

David Gauke

Agreed to  165

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

David Gauke

Agreed to  166

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

Public Bill Committee Proceedings: 7 June 2011
46

Finance (N, continued

David Gauke

Agreed to  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’.

David Gauke

Agreed to  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

Agreed to  169

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

David Gauke

Agreed to  170

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

relevant entity’s liabilities’.

David Gauke

Agreed to  171

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

David Gauke

Agreed to  172

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

David Gauke

Agreed to  173

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

David Gauke

Agreed to  174

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

David Gauke

Agreed to  175

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

Public Bill Committee Proceedings: 7 June 2011
47

Finance (N, continued

David Gauke

Agreed to  176

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

David Gauke

Agreed to  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

Agreed to  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

Agreed to  179

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

liabilities’.

David Gauke

Agreed to  180

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

David Gauke

Agreed to  181

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

‘(b)
a covered bond vehicle, or’.

David Gauke

Agreed to  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 Proceedings: 7 June 2011
48

Finance (N, 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;’.

Schedule, as amended, Agreed to.

[Adjourned until Thursday at 9.00 am



© Parliamentary copyright	Revised 8 June 2011