Consideration of Bill: 7 July 2009

1104

Finance Bill, continued

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

18

Page  289,  line  23  [Schedule  34],  at end insert—

‘Conditions for tax-exempt business

3A  (1)

Section 107 (conditions for tax-exempt business) is amended as follows—

(2)	In subsection (8)(b) after “before”, insert “the third anniversary of ”.

(3)	The amendment made by sub-paragraph (2) has effect for distributions in

respect of accounting periods beginning on or after 1 January 2008 and ending

on or before 31 March 2010.

3B  (1)

Schedule 17 is amended as follows.

(2)	In paragraph 6 (4) after “before”, insert “the third anniversary of”.

(3)	The amendment made by sub-paragraph (2) has effect for distributions in

respect of accounting periods beginning on or after 1 January 2008 and ending

on or before 31 March 2010.’.

Mr Chancellor of the Exchequer

47

Page  290,  line  24  [Schedule  34],  at end insert—

‘Profit: financing-cost ratio

5A  (1)

In section 115 (profit: financing-cost ratio), after subsection (3) insert—

“(3A)

The Commissioners for Her Majesty’s Revenue and Customs may

waive a charge in respect of an accounting period where they think

that—

(a)	the company was in severe financial difficulties at a time in

the accounting period,

(b)	the result of the sum specified in subsection (2) is less than

1.25 in respect of the accounting period because of

circumstances that arose unexpectedly, and

(c)	in those circumstances, the company could not reasonably

have taken action to avoid the result being less than 1.25.

(3B)	The regulations may specify criteria to be applied by the

Commissioners in determining whether to waive a charge.”

(2)	The Commissioners may waive a charge in respect of accounting periods

ending before the day on which this Act is passed.’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

15

Page  290,  line  24  [Schedule  34],  at end insert—

‘Profit: financing-cost ratio

5A  (3)

Section 115 (4) is amended as follows.

Consideration of Bill: 7 July 2009

1105

Finance Bill, continued

(4)	In subsection 115 (4) (a) after “costs giving rise to”, insert “credits or”.

(5)	In subsection 115 (4) at end insert “but exclude—

(f)	financing costs falling within (a) to (e) above which are exceptional

due to their size or incidence.”.’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

16

Page  290,  line  29  [Schedule  34],  at end insert—

‘Termination by notice: Commissioners

6A  (1)

Section 129 is amended as follows.

(2)	In section 129 (2) (c) at end insert “but a breach of the conditon in section 107

(8) where the company is in financial difficulties shall not be treated as

serious”.

(3)	The amendment made by sub-paragraph (2) is to be treated as always having

had effect.’.

Mr Chancellor of the Exchequer

48

Page  291,  line  28  [Schedule  35],  at end insert ‘(but subject to paragraph 16A).’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

29

Page  293,  line  4  [Schedule  35],  leave out subsection (2).

Mr Mark Hoban

30

Page  295,  line  46  [Schedule  35],  at end insert—

‘(3)	When an individual establishes a protected pension input amount in respect of

any of the schemes listed in paragraphs 8 to 13 below and their arrangements

change, the protected input amount applies to the new arrangement.’.

Consideration of Bill: 7 July 2009

1106

Finance Bill, continued

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

25

Page  296,  line  25  [Schedule  35],  at end insert—

‘(3A)

Where contributions are not paid in accordance with subsection 3(c) above, the

protected pension input amount is the lower of £50,000 or the average of

contributions made over the last three years.’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

26

Page  297,  line  23  [Schedule  35],  at end insert—

‘(3A)

Where contributions are not paid in accordance with subsection 3(c) above, the

protected pension input amount is the lower of £50,000 or the average of

contributions made over the last three years.’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

27

Page  298,  line  25  [Schedule  35],  at end insert—

‘(3A)

Where contributions are not paid in accordance with subsection 3(c) above, the

protected pension input amount is the lower of £50,000 or the average of

contributions made over the last three years.’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

28

Page  299,  line  15  [Schedule  35],  at end insert—

‘(2A)

Where contributions are not paid in accordance with subsection 2(b) above, the

protected pension input amount is the lower of £50,000 or the average of

contributions made over the last three years.’.

Consideration of Bill: 7 July 2009

1107

Finance Bill, continued

Mr Chancellor of the Exchequer

49

Page  302,  line  41  [Schedule  35],  at end insert—

‘Increased special annual allowance

16A(1)

This paragraph has effect where the mean of the infrequent money purchase

contributions amount for the tax years 2006-07, 2007-08 and 2008-09 (“the

relevant mean”) exceeds £20,000.

(2)	Where the relevant mean is less than £30,000, this Schedule has effect as if the

references in paragraph 1(4) and (5) to £20,000 were instead to the relevant

mean.

(3)	Where the relevant mean is £30,000 or more, this Schedule has effect as if

those references were instead to £30,000.

(4)	The “infrequent money purchase contributions amount” for a tax year is the

aggregate of any relevant contributions paid in the tax year—

(a)	under money purchase arrangements, other than cash balance

arrangements, under registered pension schemes, and

(b)	less frequently than on a quarterly basis;

(and so is nil if no such contributions were so paid).

(5)	But if the infrequent money purchase contributions amount for a tax year

would otherwise be greater than the annual allowance for the tax year, it is to

be taken to be the annual allowance for the tax year.

(6)	“Relevant contributions” means contributions which are—

(a)	relievable pension contributions by or on behalf of the individual, or

(b)	contributions paid by an employer of the individual in respect of the

individual.’.

Mr Chancellor of the Exchequer

50

Page  303,  line  18  [Schedule  35],  leave out ‘are members of’ and insert—

‘(a)	are or have been members of currently-relieved non-UK pension

schemes, or

(b)	have been members of overseas pension schemes that were not’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

33

Page  353,  line  21  [Schedule  46],  at end insert—

‘Annual report by Commissioners

2A	The Commissioners must, at least once a year, make a report on—

(a)	compliance by companies with paragraph 1 (1), and

(b)	the amount of additional tax collected as a consequence.

Consideration of Bill: 7 July 2009

1108

Finance Bill, continued

2B	The first report should be made not later than 18 months after the date on which

this Act is passed.’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

7

Page  366,  line  43  [Schedule  48],  leave out from ‘tax’ to end of line 1 on page 367.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

8

Page  368,  line  14  [Schedule  48],  leave out ‘Paragraphs (c) and (d) of sub-paragraph

2A do’ and insert ‘Paragraph (c) of sub-paragraph 2A does’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

9

Page  382,  line  41  [Schedule  51],  after ‘a’, insert ‘deliberate’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

10

Page  384,  line  11  [Schedule  51],  after ‘a’, insert ‘deliberate’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

11

Page  392  [Schedule  52],  leave out line 7.

Consideration of Bill: 7 July 2009

1109

Finance Bill, continued

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

12

Page  392  [Schedule  52],  leave out lines 10 to 16.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

13

Page  392,  line  46  [Schedule  52],  leave out sub-paragraph (7).

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

19

Page  410,  line  34  [Schedule  54],  leave out from first ‘is’ to end of line 35 and insert

‘the end of the accounting period in which the loss is incurred’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

20

Page  419,  line  21  [Schedule  55],  at end insert—

‘(3A)

The aggregate penalties against partners of a partnership under this paragraph

may not exceed the amount that could have been assessed on one partner.’.

Mr Mark Hoban

Mr David Gauke

Mr Greg Hands

21

Page  423,  line  14  [Schedule  56],  leave out ‘by’.

Mr Chancellor of the Exchequer

51

Page  425,  line  1  [Schedule  56],  leave out from beginning to ‘P’ in line 2.

Mr Chancellor of the Exchequer

52

Page  425,  line  4  [Schedule  56],  leave out ‘whether before or after that date,’.

Consideration of Bill: 7 July 2009

1110

Finance Bill, continued

Mr Chancellor of the Exchequer

53

Page  425,  line  6  [Schedule  56],  leave out ‘during’ and insert ‘between the date on

which P makes the request and the end of’.

Order of the House [6 MAY 2009]

That the following provisions shall apply to the Finance Bill:

1.	Clauses 7, 8, 9, 11, 14, 16, 20 and 92 be committed to a Committee of the

whole House;

2.	the remainder of the Bill be committed to a Public Bill Committee; and

3.	when the provisions of the Bill considered by the Committee of the whole

House and the Public Bill Committee have been reported to the House, the

Bill be proceeded with as if it had been reported as a whole to the House from

the Public Bill Committee.

---

Revised 7 July 2009