Session 2010 - 12
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49

 

House of Commons

 
 

Thursday 9 June 2011

 

Public Bill Committee Proceedings

 

Finance (No. 3) Bill


 

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


 

[THIRTEENTH AND FOURTEENTH Sittings]


 

Clauses 73 to 76 Agreed to.

 


 

Nic Dakin

 

Caroline Lucas

 

Zac Goldsmith

 

Stella Creasy

 

Dr Alan Whitehead

 

Negatived on division  184

 

Clause  77,  page  44,  line  5,  at end add—

 

‘(2)    

The Schedule shall come into force on a date specified by the Treasury by an

 

order made by Statutory Instrument, which may not be made until an impact

 

assessment of the effect of this Schedule has been laid before the House of

 

Commons; and approved by resolution of the House of Commons; and the dates

 

specified in paragraphs 8(3) and 9(5) of the Schedule shall be replaced by the date

 

specified in the order under this section if it is later.’.

 

Clause Agreed to.

 

Schedule 20 Agreed to.

 

Clause 78 Agreed to.

 


 

David Gauke

 

Not selected  183

 

Page  44,  line  32,  leave out Clause 79.

 

Clause Disagreed to.

 

Clauses 80 to 82 Agreed to.


 
 

Public Bill Committee Proceedings: 9 June 2011            

50

 

Finance (N, continued

 
 

Schedule 21 Agreed to.

 

Clause 83 Agreed to.

 

Schedule 22 Agreed to.

 

Clauses 84 to 86 Agreed to.

 

Schedules 23 and 24 Agreed to.

 

Clause 87 Agreed to.

 

Schedule 25 Agreed to.

 

Clauses 88 to 91 Agreed to.

 

Schedule 26 Agreed to.

 


 

NEW CLAUSES

 

Foreign pensions of UK residents

 

David Gauke

 

Added  NC4

 

To move the following Clause:—

 

‘(1)    

In Part 2 of TIOPA 2010 (double taxation relief), in Chapter 3 (miscellaneous

 

provisions), after section 130 insert—

 

“130A

Interpreting provision about UK taxation of pensions etc

 

(1)    

Subsection (3) applies if double taxation arrangements make the

 

provision, however expressed, mentioned in subsection (2).

 

(2)    

The provision is that pensions and other similar remuneration which—

 

(a)    

arise outside the United Kingdom, and

 

(b)    

are paid to persons who are resident in the United Kingdom,

 

    

are not to be subject to United Kingdom tax.

 

(3)    

That provision does not prevent a pension or other similar remuneration

 

of a person resident in the United Kingdom being chargeable to income

 

tax if—

 

(a)    

the pension or other similar remuneration is paid out of sums or

 

assets that were the subject of a relevant transfer or related sums

 

or assets, and

 

(b)    

the relevant transfer or any transaction forming part of that

 

transfer was, or formed part of, a tax avoidance scheme.

 

(4)    

But nothing in subsection (3) prevents credit being allowed under

 

Chapter 2 of this Part (double taxation relief by way of credit) against any

 

tax so charged.


 
 

Public Bill Committee Proceedings: 9 June 2011            

51

 

Finance (N, continued

 
 

(5)    

In determining whether a pension or other similar remuneration is paid

 

out of sums or assets within subsection (3)(a), it is to be assumed that it

 

is paid out of such sums or assets in priority to any other sums or assets.

 

(6)    

A “relevant transfer”, in respect of any sums or assets, is a transaction or

 

series of transactions as a result of which—

 

(a)    

the sums or assets are transferred out of a pension scheme, and

 

(b)    

the sums or assets or related sums or assets (or both) are

 

transferred into the pension scheme under which the pension or

 

other similar remuneration is paid.

 

(7)    

A scheme is a “tax avoidance scheme” if the main purpose, or one of the

 

main purposes, of any party to the scheme in entering into the scheme is

 

to secure an income tax advantage for any person under this Part by virtue

 

of provision mentioned in subsection (2) made by double taxation

 

arrangements.

 

(8)    

For the purposes of subsection (7)—

 

(a)    

“scheme” includes any scheme, arrangements or understanding

 

of any kind whatever, whether or not legally enforceable,

 

involving a single transaction or two or more transactions,

 

(b)    

it does not matter whether or not the double taxation

 

arrangements were in existence at the time the tax avoidance

 

scheme was entered into or given effect to, and

 

(c)    

“income tax advantage” is to be construed in accordance with

 

section 572A(3) to (5) of ITA 2007.

 

(9)    

In this section—

 

“pension” and “other similar remuneration” have the same meaning as in

 

the Model Tax Convention on Income and on Capital published (from

 

time to time) by the Organisation for Economic Cooperation and

 

Development;

 

“pension scheme” has the same meaning as in Part 4 of FA 2004 (see section

 

150 of that Act);

 

“related sums or assets”, in relation to other sums or assets (“the original

 

sums or assets”), means sums or assets which arise, or (directly or

 

indirectly) derive, from the original sums or assets or from sums or assets

 

which so arise or derive.”

 

(2)    

The amendment made by this section has effect in relation to the tax year 2011-

 

12 and subsequent tax years (and it does not matter whether the tax avoidance

 

scheme was entered into or effected before, or on or after, 6 April 2011).’.

 


 

Private finance initiative income

 

Caroline Lucas

 

Not selected  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


 
 

Public Bill Committee Proceedings: 9 June 2011            

52

 

Finance (N, continued

 
 

receiving payments under Private Finance Initiative contracts being based outside

 

the United Kingdom.’.

 


 

VAT and charitable healthcare providers

 

Nic Dakin

 

Withdrawn  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

 

Hugh Bayley

 

Nic Dakin

 

Mr John Leech

 

Withdrawn  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;

 

(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.’.

 



 
 

Public Bill Committee Proceedings: 9 June 2011            

53

 

Finance (N, continued

 
 

Clauses 92 and 93 Agreed to.

 

Bill, as amended, to be reported.

 


 
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