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Index of Amendments

S.C.A.

Amendment Paper as at
Thursday 3rd May 2001

STANDING COMMITTEE A


New Amendments handed in are marked thus *

FINANCE BILL


(Except Clauses 1 to 3 and 16 to 53 and Schedules 4 to 11)

   

Mr Howard Flight
Mr James Clappison
Mr Peter Luff

33

Schedule     22,     page     202,     line     40,     leave out 'and' and insert 'or'.


   

Mr Howard Flight
Mr James Clappison
Mr Peter Luff

34

Clause     76,     page     49,     line     38,     leave out 'Those' and insert—

    'In subsection (7) of section 67 of the Finance Act 2000 for "6th April 2000" substitute "6th April 1998".

    (3) These'.

   

Mr Howard Flight
Mr James Clappison
Mr Peter Luff

35

Clause     76,     page     49,     line     39,     leave out 'amendments made' and insert 'provisions brought into effect'.


   

Mr Howard Flight
Mr James Clappison
Mr Peter Luff

41

Schedule     25,     page     217,     line     6,     at end insert—

'Conditions for shares to qualify as business assets

    (1A). (1) Paragraph 4 is amended as follows.

    (2) In sub-paragraph (2) for "if at any time" substitute "if at the time it was acquired".

    (3) In sub-paragraph (3) for "if at that time" substitute "if at the time it was acquired".

    (4) In sub-paragraph (4) for "if at that time" substitute "if at the time it was acquired".'.

   

Mr Howard Flight
Mr James Clappison
Mr Peter Luff

42

Schedule     25,     page     217,     leave out lines 11 to 14 and insert 'the trustees of the settlement'.


   

Mr Howard Flight
Mr James Clappison
Mr Peter Luff

36

Clause     78,     page     51,     line     13,     leave out 'tenth' and insert 'quarter'.

   

Mr Howard Flight
Mr James Clappison
Mr Peter Luff

37

Clause     78,     page     51,     leave out lines 16 to 22 and insert—

    '(b) a chargeable gain accruing on the disposal of an asset which was acquired for bona fide commercial reasons and whose acquisition or disposal does not form part of a scheme or arrangements of which the main purpose, or one of the main purposes, is avoidance of liability to income tax, capital gains tax or corporation tax,'.

   

Mr Howard Flight
Mr James Clappison
Mr Peter Luff

38

Clause     78,     page     51,     line     37,     leave out 'three' and insert 'six'.

   

Mr Howard Flight
Mr James Clappison
Mr Peter Luff

39

Clause     78,     page     52,     line     3,     after 'if', insert 'they are a trustee of a settlement for the benefit of persons named in paragraphs (a) and (b) of section 86 of the Inheritance Tax Act 1984, or'.

   

Mr Howard Flight
Mr James Clappison
Mr Peter Luff

40

Clause     78,     page     52,     line     3,     after 'if', insert 'they are a trustee of a settlement established for charitable purposes only, or'.


   

Mr Richard Ottaway
Mr James Clappison
Mr Howard Flight
Mr Peter Luff

1

Page     52,     line     17,     leave out Clause 79.


   

Mr Howard Flight
Mr James Clappison
Mr Peter Luff

43

Schedule     27,     page     226,     line     41,     after 'jointly', insert 'or in common'.


   

Mr Howard Flight
Mr Peter Luff
Mr James Clappison

44

Clause     83,     page     56,     line     14,     at beginning insert 'If the Board reasonably believes that neither of the conditions set out in section 349B is satisfied then'.

   

Mr Howard Flight
Mr Peter Luff
Mr James Clappison

45

Clause     83,     page     56,     line     25,     leave out 'Where' and insert 'This section applies where—

    (a) an application has not been made under section 349E, or

    (b) an application has been made under section 349E and the Board have refused to give notice that they are satisfied as required in subsection (1) of that section, or

    (c) an application has been made under section 349E and within 30 days of that application being received by the Board a payment of the nature mentioned in subsection (2)(a) is made.

    (2) Where this section applies and'.

   

Mr Howard Flight
Mr Peter Luff
Mr James Clappison

46

Clause     83,     page     56,     line     41,     at end insert—

    '349E. (1) The Board may, on the application of a company in the situation mentioned in section 349D (2)(a), notify that company that the Board are satisfied that the conditions in section 349B are satisfied.

    (2) Any application under subsection (1) above shall be made in writing and shall contain such particulars as are relevant and known to the company making the application and the Board may, within 30 days of the receipt of the application or of any further particulars previously required under this subsection, by notice require the applicant to furnish further particulars for the purpose of enabling the Board to make their decision; and if any such notice is not complied with within 30 days or such longer period as the Board may allow, the Board need not proceed further on the application.

    (3) The Board shall notify the applicant of their decision within 30 days of receiving the application or, if they give a notice under subsection (2) above, within 30 days of the notice being complied with.

    (4) If the Board notify the applicant that they are not satisfied as mentioned in subsection (1) above or do not notify their decision to the applicant within the time required by subsection (3) above, the applicant may within 30 days of the notification or of that time require the Board to transmit the application, together with any notice given and further particulars furnished under subsection (2) above, to the Special Commissioners; and in that event any notification by the Special Commissioners shall have effect for the purposes of subsection (1) above as if it were a notification by the Board.

    (5) If any particulars furnished under this section do not fully and accurately disclose all facts and considerations material for the decision of the Board or the Special Commissioners, any resulting notification that the Board or Commissioners are satisfied as mentioned in subsection (1) shall be void.'.


   

Mr Howard Flight
Mr Peter Luff
Mr James Clappison

47

Schedule     28,     page     243,     line     27,     after 'jointly', insert 'or separately'.

   

Mr Howard Flight
Mr Peter Luff
Mr James Clappison

48

Schedule     28,     page     249,     line     20,     at end insert—

    '( ) Before 31st December 2001 the Board of Inland Revenue shall present to the Chancellor of the Exchequer proposals to bring the law governing the procedure on completion of enquiries into company tax returns into line with that which applies for income tax self-assessment purposes as a result of paragraphs 8 to 10 above.'.


NEW CLAUSES

Limited liability partnerships: general

   

Mr Andrew Smith

NC16

*To move the following Clause:—

    '.—(1) For section 118ZA of the Taxes Act 1988 (treatment of limited liability partnerships) substitute—

"Treatment of limited liability partnerships.118ZA.—(1) For the purposes of the Tax Acts, where a limited liability partnership carries on a trade, profession or other business with a view to profit—

    (a) all the activities of the partnership are treated as carried on in partnership by its members (and not by the partnership as such),

    (b) anything done by, to or in relation to the partnership for the purposes of, or in connection with, any of its activities is treated as done by, to or in relation to the members as partners, and

    (c) the property of the partnership is treated as held by the members as partnership property.

    References in this subsection to the activities of the limited liability partnership are to anything that it does, whether or not in the course of carrying on a trade, profession or other business with a view to profit.

    (2) For all purposes, except as otherwise provided, in the Tax Acts—

    (a) references to a partnership include a limited liability partnership in relation to which subsection (1) above applies,

    (b) references to members of a partnership include members of such a limited liability partnership,

    (c) references to a company do not include such a limited liability partnership, and

    (d) references to members of a company do not include members of such a limited liability partnership.

    (3) Subsection (1) above continues to apply in relation to a limited liability partnership which no longer carries on any trade, profession or other business with a view to profit—

    (a) if the cessation is only temporary, or

    (b) during a period of winding up following a permanent cessation, provided—

            (i) the winding up is not for reasons connected in whole or in part with the avoidance of tax, and

            (ii) the period of winding up is not unreasonably prolonged,

      but subject to subsection (4) below.

    (4) Subsection (1) above ceases to apply in relation to a limited liability partnership—

    (a) on the appointment of a liquidator or (if earlier) the making of a winding-up order by the court, or

    (b) on the occurrence of any event under the law of a country or territory outside the United Kingdom corresponding to an event specified in paragraph (a) above.".

    (2) In the Taxation of Chargeable Gains Act 1992, for section 59A (limited liability partnerships) substitute—

"Limited liability partnerships.59A.—(1) Where a limited liability partnership carries on a trade or business with a view to profit—

    (a) assets held by the limited liability partnership are treated for the purposes of tax in respect of chargeable gains as held by its members as partners, and

    (b) any dealings by the limited liability partnership are treated for those purposes as dealings by its members in partnership (and not by the limited liability partnership as such);

    and tax in respect of chargeable gains accruing to the members of the limited liability partnership on the disposal of any of its assets shall be assessed and charged on them separately.

    (2) For all purposes, except as otherwise provided, in the enactments relating to tax in respect of chargeable gains—

    (a) references to a partnership include a limited liability partnership in relation to which subsection (1) above applies,

    (b) references to members of a partnership include members of such a limited liability partnership,

    (c) references to a company do not include such a limited liability partnership, and

    (d) references to members of a company do not include members of such a limited liability partnership.

    (3) Subsection (1) above continues to apply in relation to a limited liability partnership which no longer carries on any trade or business with a view to profit—

    (a) if the cessation is only temporary, or

    (b) during a period of winding up following a permanent cessation, provided—

            (i) the winding up is not for reasons connected in whole or in part with the avoidance of tax, and

            (ii) the period of winding up is not unreasonably prolonged,

      but subject to subsection (4) below.

    (4) Subsection (1) above ceases to apply in relation to a limited liability partnership—

    (a) on the appointment of a liquidator or (if earlier) the making of a winding-up order by the court, or

    (b) on the occurrence of any event under the law of a country or territory outside the United Kingdom corresponding to an event specified in paragraph (a) above.

    (5) Where subsection (1) above ceases to apply in relation to a limited liability partnership with the effect that tax is assessed and charged—

    (a) on the limited liability partnership (as a company) in respect of chargeable gains accruing on the disposal of any of its assets, and

    (b) on the members in respect of chargeable gains accruing on the disposal of any of their capital interests in the limited liability partnership,

    it shall be assessed and charged on the limited liability partnership as if subsection (1) above had never applied in relation to it.

    (6) Neither the commencement of the application of subsection (1) above nor the cessation of its application in relation to a limited liability partnership shall be taken as giving rise to the disposal of any assets by it or any of its members.".

    (3) In Chapter II of Part V of the Taxation of Chargeable Gains Act 1992 (relief for gifts of business assets), after section 169 insert—

"Cessation of trade by limited liability partnership.169A.—(1) This section applies where section 59A(1) ceases to apply to a limited liability partnership.

    (2) A member of the partnership who immediately before the time at which section 59A(1) ceases to apply holds an asset, or an interest in an asset, acquired by him—

    (a) on a disposal to members of a partnership, and

    (b) for a consideration which is treated as reduced under section 165(4)(b) or 260(3)(b),

    shall be treated as if a chargeable gain equal to the amount of the reduction accrued to him immediately before that time.".

    (4) In section 170(9) of the Taxation of Chargeable Gains Act 1992 (groups of companies: meaning of "company"), in paragraph (b) after "company" insert "(other than a limited liability partnership)".

    (5) Subsection (3) above shall be deemed to have come into force on 3rd May 2001 and applies where section 59A(1) of the Taxation of Chargeable Gains Act 1992 ceased or ceases to apply as mentioned in section 169A of that Act (as inserted by that subsection) on or after that date.

    (6) The other provisions of this section shall be deemed to have come into force on 6th April 2001.'

 
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