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

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

26

Page     135     [Schedule     5],     leave out from beginning of line 38 to end of line 2 on page 136.


   

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

27

Page     136,     line     4     [Schedule     5],     leave out from 'vehicle' to end of line 6.

   

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

28

Page     136,     line     8     [Schedule     5],     leave out 'or (1A)(a)'.

   

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

29

Page     136,     line     14     [Schedule     5],     leave out 'or (1A)(b)'.

   

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

30

Page     136,     line     20     [Schedule     5],     leave out 'or (1A)(b)'.

   

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

31

Page     136,     line     25     [Schedule     5],     leave out 'or (1A)(a)'.

   

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

32

Page     136,     line     28     [Schedule     5],     leave out 'or (1A)(b)'.

   

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

33

Page     136,     line     31     [Schedule     5],     leave out 'or (1A)(a)'.

   

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

34

Page     136,     line     35     [Schedule     5],     leave out 'or (1A)(a)'.


   

Mr Chancellor of the Exchequer

12

Page     153,     line     36     [Schedule     8],     leave out paragraph 5 and insert—

    'Circumstances in which exemptions do not apply

    (1) Where in pursuance of arrangements to which this paragraph applies—

            (a)   an untaxed gain accrues to a company ("company A") on a disposal of shares, or an interest in shares or an asset related to shares, in another company ("company B"), and

            (b)   before the accrual of that gain—

            (i) company A acquired control of company B, or the same person or persons acquired control of both companies, or

            (ii) there was a significant change of trading activities affecting company B at a time when it was controlled by company A, or when both companies were controlled by the same person or persons,

    none of the exemptions in this Schedule applies to the disposal.

    (2) This paragraph applies to arrangements from which the sole or main benefit that (but for this paragraph) could be expected to arise is that the gain on the disposal would, by virtue of this Schedule, not be a chargeable gain.

    (3) For the purposes of sub-paragraph (1)(a) a gain is "untaxed" if the gain, or all of it but a part that is not substantial, represents profits that have not been brought into account (in the United Kingdom or elsewhere) for the purposes of tax on profits for a period ending on or before the date of the disposal.

    (4) The reference in sub-paragraph (3) to profits being brought into account for the purposes of tax on profits includes a reference to the case where—

            (a)   an amount in respect of those profits is apportioned to a company resident in the United Kingdom by virtue of subsection (3) of section 747 of the Taxes Act 1988 (imputation of chargeable profits etc of controlled foreign companies), and

            (b)   a sum is chargeable on that company in respect of that amount by virtue of subsection (4) of that section for an accounting period of that company ending on or before the date of the disposal.

    (5) For the purposes of sub-paragraph (1)(b)(ii) there is a "significant change of trading activities affecting company B" if—

            (a)   there is a major change in the nature or conduct of a trade carried on by company B or a 51% subsidiary of company B, or

            (b)   there is a major change in the scale of the activities of a trade carried on by company B or a 51% subsidiary of company B, or

            (c)   company B or a 51% subsidiary of company B begins to carry on a trade.

    (6) In this paragraph—

"arrangements" includes any scheme, agreement or understanding, whether or not legally enforceable;"major change in the nature or conduct of a trade" has the same meaning as in section 768 of the Taxes Act (change of ownership of company: disallowance of trading losses);"profits" means income or gains (including unrealised income or gains).'.
   

Mr Alex Salmond

46

*Page     197,     line     31     [Schedule     12],     at end insert ', subject to the specific inclusion of oil and gas exploration and appraisal as defined in section 837B of that Act.'.


   

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

5

Page     242     [Schedule     18],     leave out from beginning of line 24 to the end of line 37 on page 243 and insert—

    '4   Section 505 of the Taxes Act 1988 (charities: general) applies to registered clubs and qualifying purposes as it does to charities and charitable purposes.

    5   Section 25(10) of the Finance Act 1990 (c. 29) (gift aid) applies to a registered club in respect of any gift received by it as it applies to a charity in receipt of any qualifying donation.'.


   

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

6

Page     243     [Schedule     18],     leave out from beginning of line 42 to end of line 5 on page 245.


   

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

7

Page     245     [Schedule     18],     leave out lines 7 to 31 and insert—

    '9   In respect of all gifts and transfers to a registered club, which for the purposes of this Schedule include membership fees, the donor may make such claims and elections as would be available under any enactment if that registered club were a charity.'.


   

Mr Alex Salmond

44

Page     252     [Schedule     21],     leave out from beginning of line 5 to end of line 30 on page 257.


   

Mr Chancellor of the Exchequer

45

Page     375,     line     11     [Schedule     28],     leave out sub-paragraphs (4) and (5) and insert—

    '(4) If the sum of the amounts that would, on the assumptions in sub-paragraph (6)(a) and (b), have fallen to be brought into account as regards the contract in accordance with—

            (a)   Chapter 2 of Part 2 of the Finance Act 1993 (c.34), or

            (b)   Chapter 2 of Part 4 of the Finance Act 1994 (c.9),

    for the purposes of computing corporation tax for an old period of the company is different from the sum of the amounts that would, on the assumption in sub-paragraph (6)(c), have fallen to be brought into account as regards the contract in accordance with Schedule 26 for those purposes (if that Schedule had had effect in relation to that period), sub-paragraph (5) shall apply as regards the amount of that difference.

    (5) Where this sub-paragraph applies, the amount of the difference shall be brought into account—

            (a)   as a credit under Schedule 26 in the company's first new period, if a greater profit or smaller loss would have been brought into account for the old period under that Schedule, or

            (b)   as a debit under that Schedule in the company's first new period, if a smaller profit or greater loss would have been brought into account for the old period under that Schedule.

    (6) The assumptions referred to in sub-paragraph (4) are that—

            (a)   section 137 of the Finance Act 1993 (c.34),

            (b)   sections 165 to 168A of the Finance Act 1994 (c.9), and

            (c)   paragraphs 23 to 31 of Schedule 26,

    would not have had effect in the case of the contract.'.


   

Mr Chancellor of the Exchequer

14

Page     434,     line     22     [Schedule     29],     leave out sub-paragraph (4) and insert—

    '(4) Sub-paragraph (1) has effect subject to—

            (a)   paragraph 126 (application of Schedule to fungible assets), and

            (b)   paragraph 126A (certain assets acquired on transfer of a business treated as existing assets).'.


   

Mr Chancellor of the Exchequer

15

Page     437,     line     28     [Schedule     29],     at end insert—

    'Certain assets acquired on transfer of business treated as existing assets

    126A (1) This paragraph applies where—

            (a)   an asset that is an existing asset in the hands of a company ("the transferor company") is transferred to another company ("the transferee company"), and

            (b)   the transfer is one in relation to which—

            (i) section 139 of the Taxation of Chargeable Gains Act 1992 (reconstruction or amalgamation involving transfer of business), or

            (ii) section 140A of that Act (transfer of UK trade to company resident in another member State),

      applies with the effect that the transferor company is treated for the purposes of that Act as disposing of the asset for a consideration that secures that neither a gain nor a loss accrues to that company.

    (2) Where this paragraph applies the asset shall be treated for the purposes of this Schedule as an existing asset in the hands of the transferee company.

    (3) This paragraph does not apply where the transfer mentioned in sub-paragraph (1) occurred before 28th June 2002.'.

 
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