Finance Bill 2016: Public Bill Committee

On 30 June, the Public Bill Committee agreed amendments to:

·        Schedule 1 (dividend nil rate, etc.);

·        Schedule 5 (pension flexibility);

·        Clause 37 (income-based carried interest); and

·        Clause 40 (deduction of income tax at source: tax avoidance).

The following were passed without amendment:

·        Clause 1 (income tax charge and rates for 2016–17);

·        Clause 2 (basic rate limit for 2017–18);

·        Clause 3 (personal allowance for 2017–18);

·        Clause 4 (savings allowance and savings nil rate, etc.);

·        Clause 5 (rates of tax on dividend income and abolition of dividend tax credits, etc.);

·        Clause 6 (structure of income tax rates);

·        Clause 19 and Schedule 4 (standard lifetime allowance from 2016–17);

·        Clause 20 (pensions bridging between retirement and state pension);

·        Clause 21 (dependants’ scheme pensions);

·        Clause 22 (pension flexibility);

·        Clause 23 (Netherlands Benefit Act for Victims of Persecution 1940–1945);

·        Clause 24 (fixed-rate deductions for use of home for business purposes);

·        Clause 25 (averaging profits of farmers, etc.);

·        Clause 26 (relief for finance costs related to residential property businesses);

·        Clause 27 (individual investment plans of deceased investors);

·        Clause 28 (EIS, SEIS and VCTs: exclusion of energy generation);

·        Clause 29 (EIS and VCTs: definition of certain periods);

·        Clause 30 (EIS and VCTs: election);

·        Clause 31 (VCTs: requirements for giving approval);

·        Clause 32 (income tax relief for irrecoverable peer-to-peer loans);

·        Clause 33 (transactions in securities: company distributions);

·        Clause 34 (transactions in securities: procedure for counteraction of advantage);

·        Clause 35 (distributions in a winding up);

·        Clause 36 (disguised investment management fees);

·        Clause 38 (income-based carried interest: persons coming to the UK);

·        Clause 39 (deduction of income tax at source);

·        Clause 45 and Schedule 7 (loan relationships and derivative contracts);

·        Clause 46 (loans to participators, etc.: rate of tax);

·        Clause 47 (loans to participators, etc.: trustees of charitable trusts);

·        Clause 48 (intangible fixed assets: pre-FA 2002 assets); and

·        Clause 49 (intangible fixed assets: transfers treated as at market value).

On 5 July, the Public Bill Committee agreed amendments to:

·        Clause 60 and Schedule 9 (profits from the exploitation of patents, etc.);

·        Schedule 15 (inheritance tax: increased nil-rate band);

·        Clause 86 (estate duty: objects of national, scientific, historic or artistic interest);

·        Clause 88 (charge to apprenticeship levy);

·        Clause 90 (apprenticeship levy: connected companies);

·        Clause 91 (apprenticeship levy: connected charities); and

·        Clause 109 (apprenticeship levy: general interpretation).

The following were passed without amendment:

·        Clause 50 and Schedule 8 (tax relief for production of orchestral concerts);

·        Clause 51 (television and video games tax relief: consequential amendments);

·        Clause 52 (banking companies: excluded entities);

·        Clause 53 (banking companies: restrictions on loss relief, etc.);

·        Clause 54 (reduction in rate of supplementary charge);

·        Clause 55 (investment allowance: disqualifying conditions);

·        Clause 56 (investment allowance: power to expand meaning of ‘relevant income’);

·        Clause 57 (onshore allowance: disqualifying conditions);

·        Clause 58 (cluster area allowance: disqualifying conditions);

·        Clause 59 (cluster area allowance: power to expand meaning of ‘relevant income’);

·        Clause 61 (power to make regulations about the taxation of securitisation companies);

·        Clause 62 and Schedule 10 (hybrid and other mismatches);

·        Clause 63 (insurance companies carrying on long-term business);

·        Clause 64 (taking over payment obligations as lessee of plant or machinery);

·        Clause 83 (inheritance tax: pension drawdown funds);

·        Clause 84 (inheritance tax: victims of persecution during Second World War era);

·        Clause 85 (inheritance tax: gifts for national purposes, etc.);

·        Clause 89 (apprenticeship levy: a person’s pay bill for a tax year);

·        Clause 92 (apprenticeship levy: anti-avoidance);

·        Clause 93 (application of other regimes to apprenticeship levy);

·        Clause 94 (apprenticeship levy: assessment, payment, etc.);

·        Clause 95 (apprenticeship levy: recovery from third parties);

·        Clause 96 (apprenticeship levy: real time information);

·        Clause 97 (apprenticeship levy: time limits for assessment);

·        Clause 98 (apprenticeship levy: no deduction in respect of levy to be made from earnings);

·        Clause 99 (apprenticeship levy: collectors and court proceedings);

·        Clause 100 (apprenticeship levy: records);

·        Clause 101 (apprenticeship levy: information and inspection powers);

·        Clause 102 (apprenticeship levy: penalties);

·        Clause 103 (apprenticeship levy: appeals);

·        Clause 104 (apprenticeship levy: tax agents: dishonest conduct);

·        Clause 105 (provisional collection of apprenticeship levy);

·        Clause 106 (apprenticeship levy: Crown application);

·        Clause 107 (apprenticeship levy: charities which are ‘connected’ with one another);

·        Clause 108 (apprenticeship levy: connection between charities: further provision); and

·        Clause 110 (apprenticeship levy: regulations).

The Committee will sit next on Thursday 7 July.