House of Commons portcullis
House of Commons

Publications on the internet
Index of Amendments


Amendment Paper as at
Thursday 13th June 2002


New Amendments handed in are marked thus *


(Except Clauses 4, 19, 23, 26 to 29, 87 to 92, 131 and 134 and Schedules 1, 5 and 38)


The Amendments have been arranged in accordance with the Order of the Committee [14th May], as follows:—

Clauses 1 to 3, Clause 5, Schedule 2, Clause 6, Schedule 3, Clauses 7 to 12, Schedule 4, Clauses 13 to 18, Clauses 20 to 22, Clauses 24 and 25, Clauses 30 to 33, Clause 36, Clauses 34 and 35, Clause 37, Schedule 6, Clause 39, Clause 38, Clauses 40 to 42, Schedule 7, Clause 43, Schedule 8, Clause 44, Schedule 9, Clauses 45 and 46, Schedule 10, Clauses 47 to 50, Schedule 11, Clause 51, Clause 117, Clause 52, Schedule 12, Clause 53, Schedules 13 and 14, Clauses 54 and 55, Schedule 15, Clause 56, Schedules 16 and 17, Clause 57, Schedule 18, Clause 58, Schedule 19, Clauses 59 and 60, Schedule 20, Clauses 61 and 62, Schedule 21, Clause 63, Schedule 22, Clauses 64 to 66, Clause 101, Clauses 67 to 78, Schedule 23, Clause 79, Schedule 24, Clauses 80 and 81, Schedule 25, Clause 82, Schedules 26 to 28, Clauses 102 and 103, Clause 105, Clause 83, Schedules 29 and 30, Clause 104, Clause 84, Schedule 31, Clause 85, Schedule 32, Clause 86, Clauses 93 to 100, Clauses 106 and 107, Schedule 33, Clauses 108 and 109, Schedule 34, Clauses 110 and 111, Schedule 35, Clauses 112 to 114, Schedule 36, Clauses 115 and 116, Clauses 118 to 129, Schedule 37, Clause 130, Clauses 132 and 133, Clauses 135 to 140, New Clauses, New Schedules, Schedule 39.


Mr Michael Howard
Mr John Bercow
Mr Howard Flight
Mr Christopher Chope
Mr Peter Luff


Schedule     26,     page     344,     line     23,     at end insert—

    '(3A)   A derivative contract shall not be regarded as having an unallowable purpose in regard to a company where, on the application of that company, the Board have notified the company that the Board are satisfied that the derivative contract does not have an unallowable purpose.

    (3B)   Any application under subparagraph (3A) above shall be in writing and shall contain particulars of the contract to be entered into by the applicant 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.

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

    (3D)   If the Board notify the applicant that they are not satisfied as mentioned in subparagraph (3A) above or do not notify their decision to the applicant within the time required by subparagraph (3C) 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 subparagraph (3B) above, to the Special Commissioners; and in that event any notification by the Special Commissioners shall have effect for the purposes of subparagraph (3A) above as if it were a notification by the Board.

    (3E)   If any particulars furnished under this paragraph 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 subparagraph (3A) above shall be void.'.


Mr Michael Howard [R]
Mr John Bercow
Mr Howard Flight [R]
Mr Christopher Chope
Mr Peter Luff


Schedule     26,     page     324,     line     31,     at end insert—

    '(3)   Nothing in this Schedule shall cause or require the recognition of income chargeable to tax by reason of any transactions involving futures or options by the trustees of an authorised unit trust or by an open-ended investment company, and "company" and "derivative contract" shall be interpreted accordingly.'.


Mr Paul Boateng


Schedule     26,     page     332,     line     27,     leave out from 'which' to 'or' in line 28 and insert ', if the future were to run to delivery, would fall to be delivered at the date and price agreed when the contract is made,'.


Mr Paul Boateng


Schedule     26,     page     332,     line     33,     leave out paragraph (a) and insert—

            '(a)   where the contract for differences relates to fluctuations in the value or price of property described in the contract, the property so described, or'.


Mr Paul Boateng


Schedule     26,     page     333,     line     18,     leave out 'referred to' and insert 'described'.


Mr Paul Boateng


Schedule     26,     page     333,     line     23,     at end insert—

            '()   a future;

            ()   an option;'.


Mr Paul Boateng


Schedule     26,     page     334,     line     4,     leave out from 'terms' to 'not' in line 8 and insert 'provide—

            (a)   that, after setting off their obligations to each other under the contract, a cash payment is to be made by one party to the other in respect of the excess, if any, or

            (b)   that each party is liable to make to the other party a cash payment in respect of all that party's obligations to the other under the contract,

     and do'.


Mr Andrew Smith


Schedule     26,     page     337,     line     13,     leave out second 'or' and insert—

            '(aa)   so much of any exchange gain or loss arising to a company as results from any translation from one currency to another pursuant to section 93A(4) of the Finance Act 1993 (c.34) of the profit or loss of part of the company's business and falls within sub-paragraph (5A), or'.


Mr Andrew Smith


Schedule     26,     page     337,     line     18,     at beginning insert 'For the purposes of sub-paragraph (3)(a),'.


Mr Andrew Smith


Schedule     26,     page     337,     line     29,     at end insert—

    '(5A) For the purposes of sub-paragraph (3)(aa), an exchange gain or loss falls within this sub-paragraph to the extent that, in accordance with generally accepted accounting practice, an amount representing the whole or part of it is carried to or sustained by a reserve maintained by the company.'.


Mr Andrew Smith


Schedule     26,     page     341,     line     28,     at end insert—

    '(3) Sub-paragraph (4) has effect where, in the case of a derivative contract of a company,—

            (a)   the company uses, as respects the contract, a basis of accounting other than an authorised mark to market basis of accounting for an accounting period (the "preceding period"), but

            (b)   by virtue of sub-paragraph (2), the company must for the succeeding accounting period (the "first mark to market period") use, as respects the contract, an authorised mark to market basis of accounting as its authorised accounting method for the purposes of this Schedule.

    (4) Where this sub-paragraph has effect in relation to a derivative contract of a company, the company shall be deemed—

            (a)   to have disposed of the contract immediately before the end of the preceding period for a consideration of an amount equal to the fair value of the contract at that time, and

            (b)   to have reacquired it for the same consideration immediately after the beginning of the first mark to market period.'.


Mr Andrew Smith


Schedule     26,     page     344,     line     40,     at end insert—

    '(3) No debit may be brought into account by virtue of this paragraph if it is taken into account in arriving at the amount of expenditure in relation to which a debit may be given by Schedule 29 to the Finance Act 2002.'.


Mr Andrew Smith


Schedule     26,     page     345,     line     17,     at end insert—

    '(4A) In this paragraph "option" has the same meaning as in paragraph 12, apart from sub-paragraph (10).'.


Mr Andrew Smith


Schedule     26,     page     360,     line     42,     leave out sub-paragraph (3) and insert—

    '(3) Where—

            (a)   a company ceases to be party to a derivative contract in an accounting period (the "cessation period"),

            (b)   profits or losses arise to the company from the derivative contract or a related transaction in the cessation period, and

            (c)   the credits or debits brought into account for the purposes of this Schedule for the cessation period do not include credits or debits which represent the whole of those profits or losses,

    credits or debits in respect of so much of those profits or losses as are not represented by credits or debits brought into account for the cessation period shall continue to be brought into account under this Schedule over one or more subsequent accounting periods ("post-cessation periods") as in the case of a derivative contract to which the company is party in those periods and sub-paragraphs (3A) and (3B) shall apply.

    (3A) In any case falling within sub-paragraph (3), any question—

            (a)   whether, in a post-cessation period, the company is, or is to any extent, party to the contract for the purposes of a trade carried on by it, or

            (b)   whether, in a post-cessation period, the contract is to any extent referable to a particular business, or a particular class, category or description of business, carried on by the company,

    shall be determined by reference to the circumstances immediately before the company ceased to be party to the contract instead of the circumstances in the post-cessation period.

    (3B) In any case falling within sub-paragraph (3), any question—

            (a)   whether the contract has to any extent a particular purpose in a post-cessation period, or

            (b)   whether there is a connection between the company and any other person for a post-cessation period,

    shall be determined by reference to the circumstances in the cessation period instead of the circumstances in the post-cessation period.'.

contents continue
House of Commons home page Houses of Parliament home page House of Lords home page Search page Enquiries index

©Parliamentary copyright 2002
Prepared 13 Jun 2002