Amendments proposed to the Finance Bill, As Amended - continued House of Commons

back to previous text

Investment companies and trading companies

   

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

NC12

To move the following Clause:—

    '.—(1)   Schedule A1 to the Taxation of Chargeable Gains Act 1992 shall be amended as follows—

    (2)   In paragraph 6, subparagraphs (1)(a), (1A), (2)(a), (2A), (3)(a), (4), (5) and (6) shall cease to have effect.

    (3)   In paragraph 6(7), the words in brackets shall cease to have effect.

    (4)   In paragraph 22(1), the definitions of "trade", "trading company" and "trading group" shall cease to have effect.

    (5)   For paragraph 6A there shall be substituted—

      "6A(1) A company does not rank as a qualifying company for the purposes of paragraph 6 by reference to an individual at any time when it is his Private Investment Company;

      (2) A Private Investment Company is a company as a whole, or substantially the whole, of whose share capital is held by an individual or persons connected with him;

      (3) A company is not a Private Investment Company if, notwithstanding the previous subparagraph, it has five or more full time employees other than the individual concerned in subparagraph (1)."

    (6)   This section shall have effect from 6th April 2002.'.


Exemptions from stamp duty on the disposal of a substantial shareholding

   

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

NC13

To move the following Clause:—

    '.—(1)   This section applies where a company ("the transferor company") disposes of shares or an interest in shares ("the transferred shares") in another company ("the second company").

    (2)   If the first, second and third conditions (as defined below) are fulfilled, stamp duty under Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) shall not be chargeable on an instrument executed for the purposes of or in connection with the transfer of the transferred shares.

    (3)   An instrument on which stamp duty is not chargeable by virtue only of subsection (2) above shall not be taken to be duly stamped unless it is stamped with the duty to which it would be liable but for that subsection or it has, in accordance with section 12 of the Stamp Act 1891, been stamped with a particular stamp denoting that it is not chargeable with any duty.

    (4)   The first condition is that the transferor company satisfies the requirements relating to an investing company, and the second company satisfies the requirements relating to the company invested in, set out in Part 3 of Schedule 7AC to the Taxation of Chargeable Gains Act 1992 ("the 1992 Act").

    (5)   The second condition is that, were the disposal of the transferred shares to give rise to a gain, that gain would not be a chargeable gain by virtue of the terms of Schedule 7AC to the 1992 Act.

    (6)   The third condition is that the disposal is effected for bona fide commercial reasons and does not form part of a scheme or arrangement of which the main purpose, or one of the main purposes, is avoidance of liability to stamp duty, income tax, corporation tax or capital gains tax.

    (7)   This section applies to any instrument which is executed after the day this Act comes into force, unless it is executed in pursuance of an unconditional contract made on or before that day.'.


Tax Law Rewrite and tax simplification
   

Mr Michael Jack
Mr Edward Davey

NC14

To move the following Clause:—

       '.—Within twelve months of the passing of this Act, the Treasury shall lay a report before Parliament which shall include—

      (a) an assessment of the progress of the Tax Law Rewrite project; and

      (b) proposals for consulting national representative organisations in the field of taxation on the simplification of the tax system.'.


Investment income of sinking funds and service charge funds

   

Mr David Heath
Mr Edward Davey

NC15

To move the following Clause:—

    '.—(1)   The Income and Corporation Taxes Act 1988 (c.1) is amended as follows—

    (2)   In paragraph 2(2)(c) of Schedule A of section 15, at end insert—

          "(d) profits comprising investment income accrued on funds held on trust—

          (i) under section 42 of the Landlord and Tenant Act 1987 (c.31); or

          (ii) exclusively for the purpose of repair and refurbishment of property in the interests of tenants by registered social landlords or other exempt landlords under section 58 of that Act.".'.


ISAs and TESSAs: rollover of cash into securities

   

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

NC16

To move the following Clause:—

    '.—(1)   There shall be inserted into section 333 of the Taxes Act 1988 a new subsection as follows—

          (4A)   With effect from the effective date, where the kind of investment made by an individual in the account mentioned in subsection (1A) above, or in a tax-exempt special savings account mentioned in section 326A, is cash the individual may by an election made in writing to his plan manager elect for the kind of investment to be changed from cash to stocks and shares.

          (4B)   The election made as described in subsection (4A) above shall be irrevocable, so that once the kind of investment made by the individual has been changed from cash to stocks and shares, it may not be changed thenceforth from stocks and shares to cash (save in the case of cash held which is the proceeds of an investment in stocks and shares, where the individual intends to invest the cash in stocks and shares investment).

          (4C)   "cash" and "stocks and shares" shall have the same meaning for the purposes of subsections (4A) and (4B) above as they have in the Individual Savings Account Regulations 1988 (Statutory Instrument 1988/1870).".

    (2)   The effective date for the purposes of subsection (4A) of section 333 shall be 1st October 2002.'.


Investment income of sinking funds and service charge funds (No. 2)
   

Mr David Heath
Mr Edward Davey

NC17

To move the following Clause:—

       '.—Profits comprising investment income accrued on funds held on trust—

      (a) under section 42 of the Landlord and Tenant Act 1987 (c. 31), or

      (b) exclusively for the purpose of repair and refurbishment of property in the interests of tenants by registered social landlords or other exempt landlords under section 58 of that Act,

       are not chargeable to income tax or to corporation tax.'.


Timing of announcement of all income tax allowances
   

Mr Charles Kennedy
Matthew Taylor
Mr Edward Davey
Mr John Burnett
Dr John Pugh
Mr Andrew Stunnell

NC18

To move the following Clause:—

       'In section 257C(3) of the Taxes Act 1988, at the end—

       "The order shall be made by 31st December following the preceding September referred to in subsection (1).".'.


Simpler tax assessments for low-income pensioners
   

Mr Charles Kennedy
Matthew Taylor
Mr Edward Davey
Mr John Burnett
Dr John Pugh
Mr Andrew Stunnell

NC19

To move the following Clause:—

    '.—(1)   Section 8 of the Taxes Management Act 1970 shall be amended in accordance with the following provisions of this section.

    (2)   The following shall be inserted after subsection (1C)—

          "(1D)   A person whose total income for a year of assessment does not exceed £5,000 may be required, by a notice given to him by an inspector for the purpose of assessing him to income tax—

          (a) to make and deliver to the inspector, on or before the day mentioned in subsection (1A) above, a statement of his income and gains for the year, and

          (b) to deliver with the statement such information as may be required in pursuance of the notice.

          (1E)   A person who duly complies with a notice served on him in accordance with subsection (1D) above in relation to a year of assessment is not obliged in addition to comply with any notice served on him under subsection (1) above in relation to the same year of assessment.".

    (3)   In subsection (2), after "return under this section" there shall be inserted "or statement under subsection (1D) above".

    (4)   This section shall have effect for the year 2002-03 and subsequent years of assessment.'.


Rollover of cash from ISAs and TESSAs into securities
   

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

NC23

*To move the following Clause:—

    '.—(1)   There shall be inserted into the Individual Savings Account Regulations 1998 (S.I. 1998, No. 1870) following Regulation 9 (qualifying investments for an insurance component)—

             "Qualifying transfers from cash component to stocks and shares component

          9A.—(1)   This regulation permits investments originally made under the cash component of an account or under a TESSA only account to be transferred into the stocks and shares component of an account.

          (2)   Where on or after 1st October 2002 an account investor makes an election under this regulation in respect of an account then—

          (a) the amount of the qualifying investments then held under the cash component of the relevant account as is specified in the election; or

          (b) the amount of the funds then held under a TESSA only account as is specified in the election

             may be applied in purchasing investments which are qualifying investments for a stocks and shares component, within the meaning of regulation 7.

          (3)   The funds applied as mentioned in paragraph (2) shall be regarded as having always been validly made into the stocks and shares component of an account and any amount so transferred shall not count towards the subscription limits in regulation 4(2) and (3)(a) as the case may be.

          (4)   An election made under this regulation shall be made in writing to the relevant account manager and must fulfill the conditions set out in paragraphs (5) and (6) below.

          (5)   The election must satisfy such requirements under regulation 12 as would apply to an application to subscribe for a stocks and shares component of a new account.

          (6)   The election must specify—

          (a) the cash component of the account or TESSA only account, as the case may be, out of which the transfer is to be made; and

          (b) the amount of funds to be transferred (not to exceed the maximum amount then held in that account).

          (7)   The election made as described in paragraph (2) above shall be irrevocable."

    (2)   This section comes into force on 1st October 2002.'.

 
previous section 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 3 Jul 2002