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Index of Amendments

     

Amendment Paper as at
Wednesday 9th May 2001

CONSIDERATION OF BILL


New Amendments handed in are marked thus *

[R] Relevant registered interest declared

FINANCE BILL, NOT AMENDED IN THE COMMITTEE AND AS AMENDED IN THE STANDING COMMITTEE

NEW CLAUSES

Application of definitions of private residences and job-related accommodation

   

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

NC1

*To move the following Clause:—

    'Sections 222(1), (8) and (8A) of the Taxation of Chargeable Gains Act 1992 (which define private residence and job-related accommodation for the purposes of relief) shall be applied by the Inland Revenue in the exercise of all of its functions.'.


Children's tax credit: children under five years of age

   

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

NC2

*To move the following Clause—:

    '(1) After section 257AA(2) of the Taxes Act 1988 (which specifies the amount by reference to which the children's tax credit is calculated) insert—

    "(2AA) for a year of assessment during the whole or part of which is qualifying child under five years of age (or more than one) is resident with the claimant, subsection (2) above has effect as if the amount specified there were increased by £200."

    (2) After subsection (3) of that section (reduction of amount where claimant has income within the higher rate band) insert:

    "(3AA) Where subsection (2AA) above applies, the reference in subsection (3) above to the amount specified in subsection (2) above is to the higher amount applicable by virtue of subsection (2AA) above.".

    (3) After subsection (4) of that section (meaning of "qualifying child") insert:

    "(4AA) In this section 'qualifying child under five years of age', in relation to a year of assessment, means a qualifying child less than five years of age at the beginning of that tax year.".

    (4) In section 257C(1) and (3) of the Taxes Act 1988 (indexaton) for "257AA(2)" substitute "257AA(2) and (2A) and (2AA)".

    (5) Schedule 13B to the Taxes Act 1988 (children's tax credit: Provisions applicable where child lives with more than one adult in a year of assessment) is amended in accordance with Schedule 11A to this Act.

    (6) Subsections (1) to (3) and (5) above have effect for the year 2003-04 and subsequent years of assessment.

    (7) Subsection (4) above has effect for the purposes of the application of section 257AA of the Taxes Act 1988 for the year 2004-05 and subsequent years of assessment.'.


Exemption from Capital Gains Tax

   

Mr Richard Ottaway
Mr James Clappison
Mr Howard Flight [R]
Mr Peter Luff

NC3

*To move the following Clause:—

    '—. In section 271(1) of the Taxation of Chargeable Gains Act 1992 (concerning exemption from CGT) after subsection (j) insert—

    "(k) any gain accruing to a UK resident company, or to a non-resident company chargeable to UK corporation tax under section 10 of this Act, in respect of the disposal of a substantial shareholding in a trading company or a member of a trading group. For the purposes of this subsection a substantial shareholding is a shareholding of 20% or more held for a period of a year or more.".'.


Substantial shareholdings: deferral of capital gains tax

   

Mr Richard Ottaway
Mr James Clappison
Mr Howard Flight [R]
Mr Peter Luff

NC4

*To move the following Clause:—

    '.—In section 155 of the Taxation of Chargeable Gains Act 1992 (concerning classes of assets for roll-over relief) Class 9, after Head B, insert new subsection.

    "CLASS 9

    Substantial shareholdings in trading companies or members of a trading group. For the purposes of this section, a substantial shareholding is a shareholding of 20 per cent. or more held for a period of a year or more.".'.


Environmental protection rebates scheme

   

Mr David Heath
Mr Matthew Taylor
Mr Edward Davey
Mr A. J. Beith
Mr Malcolm Bruce
Mrs Ray Michie

NC5

*To move the following Clause:—

    '(1) The Treasury may by order made by statutory instrument introduce a scheme of rebates to those persons charged with the aggregates levy and who have employed environmental protection measures in the process of commercial exploitation of aggregate;

    (2) Environmental protection measures in this part are those measures which the Secretary of State shall by order determine to be in the interests of protecting or enhancing the environment;

    (3) No rebate under this scheme shall be made unless the environmental protection measures:

    (a) relate directly to the process of commercial exploitation of aggregate; and

    (b) shall have been verified and certified by an external body prescribed for that purpose by the Secretary of State;

    (4) A statutory instrument containing an order under this section shall not be made without prior consultation with those persons appearing to the Secretary of State to be representative of those having an interest in:

            (i) the commercial exploitation of aggregate;

            (ii) the protection of the natural environment;

            (iii) the local communities affected.

    (5) A statutory instrument containing an order under this section shall be laid before Parliament and approved by resolution of the House of Commons.'.


Extension of carry back of trading losses

   

Mr Charles Kennedy
Mr Matthew Taylor
Mr Colin Breed
Mr Edward Davey
Mr John Burnett
Mr Malcolm Bruce

NC6

*To move the following Clause:—

    '(1) Section 393A Income and Corporation Taxes Act 1988 (set-off of trading losses against profits of previous three years) shall be amended in accordance with subsections (2) and (3) below.

    (2) In subsection (2), after "(2A)", and before "below", insert the words "and (2D)".

    (3) After subsection (2C), insert the following new subsection—

    "(2D) this subsection shall have effect in relation to any loss incurred by a company which is not large (as defined by SI 1998/3175 as subsequently amended)—

    (a) as if in subsection (2) above, the words 'three years' were substituted for the words 'twelve months'; and

    (b) which is incurred in any accounting periods ending in the period beginning on 1 April 2000 and ending on or before 31 March 2003.".'.


Extension of carry back of excess interest costs

   

Mr Charles Kennedy
Mr Matthew Taylor
Mr Colin Breed
Mr Edward Davey
Mr John Burnett
Mr Malcolm Bruce

NC7

*To move the following Clause:—

    '(1) Chapter II of Part IV of the Finance Act 1996 (loan relationships) shall be amended in accordance with subsections (2) and (3) below.

    (2) In paragraph 3(7) of Schedule 8 (permitted period of twelve months for carry-back of deficits), after "means" and before "the period" insert "subject to paragraph 3(7A) below".

    (3) After paragraph 3(7) of Schedule 8, insert the following new paragraph—

    "3(7A) This paragraph shall have effect in relation to a deficit, incurred by a company which is not large (as defined by SI 1998/3175 as subsequently amended)—

    (a) as if in paragraph 3(7) above, the words 'three years' were substituted for each case of the words 'twelve months'; and

    (b) which is incurred in any accounting periods ending in the period beginning on 1 April 2000 and ending on or before 31 March 2003.".'.


Relief for furnished holiday lettings
   

Mr Charles Kennedy
Mr Matthew Taylor
Mr Edward Davey
Mr Andrew Sanders
Mr John Burnett
Mr Malcolm Bruce

NC8

*To move the following Clause:—

    '(1) Section 504 of the Income and Corporation Taxes Act 1988 (Letting of furnished holiday accommodation treated as a trade, supplementary provisions) shall be amended in accordance with subsections (2) and (3) below.

    (2) In subsection (3)(6) the figure "70" shall be replaced by the figure "30".

    (3) This section shall only apply for accounting periods ending in the period beginning on 1 April 2001 and ending on or before 31 March 2002.'.


   

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

1

*Page     12     [Clause     16],     leave out from line 18 to end of line 8 on page 41.

   

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

3

*Page     12,     line     37     [Clause     16],     at end insert—

    '(7) The provisions of this section shall cease to have effect on 5 April 2004 unless the Treasury makes provision by order made by statutory instrument for its continuation.

    (8) The Treasury shall not make an order under subsection (7) above unless a draft of the order has been laid before Parliament and approved by resolution of the House of Commons.'.


NEW SCHEDULE

   

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

NS1

*To move the following Schedule—

'Children's Tax Credit: Children under five years of age: supplementary

Introduction

    1. Schedule 13B to the Taxes Act 1988 (children's tax credit: provisions applicable where child lives with more than one adult in a year of assessment) is amended as follows.

Child living with married or unmarried couple

    2. After paragraph 3(2) (provisions applicable where neither partner has income above the basic rate limit entitlement where both partners claim in respect of a relevant child) insert—

    "(2AA) If a relevant child is a qualifying child under five years of age the reference in sub-paragraph (2)(b) above to the amount mentioned in section 257AA(2) is to the higher amount applicable by virtue of subsection (2A) of that section.".

Child living with more than one adult: other cases

    3.—(1) Paragraph 6 (provisions applicable in case of child living with more than one adult) is amended as follows.

    (2) After sub-paragraph (4) (apportionment of entitlement) insert—

    "(4AA) If the child is a qualifying child under five years of age the reference in sub-paragraph (4) above to the amount mentioned in section 257AA(2) is to the higher amount applicable by virtue of subsection (2A) of that section".

    (3) After sub-paragraph (7) (claim by person with more than one allotted proportion) insert—

    "(7A) Where sub-paragraph (7) above applies in relation to a person, and any child in respect of which a proportion has been, or could have been, allotted to that person is a qualifying child under five years of age the reference in that sub-paragraph to the amount mentioned in section 257AA(2) is to the higher amount applicable by virtue of subsection (2A) of that section".

Combined cases

    4. In paragraph 7 (provisions applicable where child lives with more than one couple or with one or more couples and one or more other adults), after sub-paragraph (2) insert—

    "(3) Where paragraph 6(4A) or (7A) above applies, the reference in sub-paragraph (2) above to the amount mentioned in section 257AA(2) is to the higher amount applicable by virtue of subsection (2A) of that section.".'.


   

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

2

*Page     102     [Schedule     4],     leave out from line 18 to end of line 17 on page 143.


 
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Prepared 9 May 2001