Finance Bill — Economic and monetary union: taxes and duties — 6 Jul 1999

I beg to move amendment No. 30, in page 21, line 4, leave out subsection (7) and insert--

'(7) The amendments made by this section shall be deemed always to have had effect'.

Amendment agreed to .

I beg to move amendment No. 3, in page 24, line 21, leave out 'large'.

Mr. Deputy Speaker (Mr. Michael J. Martin):

With this, it will be convenient to discuss Government amendments Nos. 4 to 12.

Amendment agreed to.

Amendments made: No. 4, in page 24, leave out lines 24 and 25 and insert--

Amendment agreed to.

I beg to move amendment No. 15, in page 35, line 27, leave out 'sub-paragraph (2)' and insert

'the following provisions of this paragraph'.

Amendment agreed to.

Amendments made: No. 16, in page 35, line 32, leave out 'that is capable of' and insert

(8) In determining for the purposes of sub-paragraph (1C), (1E), (1F) or (2A) above whether a person is or becomes connected with the issuer, no account shall be taken of--

(a) the security mentioned in that sub-paragraph; or

(b) any security issued under the same prospectus as that security."

(2B) In paragraph 10 of that Schedule (issue of securities in separate tranches), after sub-paragraph (3) there shall be inserted the following sub-paragraph--

"(4) For the purpose of determining whether a security held by a person who is not connected with the issuer is a relevant discounted security by virtue of this paragraph, a security which--

(a) is a relevant discounted security, but

(b) would not be such a security but for paragraph 3(1C)(a) or (1E) above,

shall be assumed not to be a security falling within sub-paragraph (1)(b) above."

(2C) In paragraph 13 of that Schedule (excluded indexed securities), after sub-paragraph (8) there shall be inserted the following sub-paragraph--

"(9) In this paragraph references to redemption, in relation to a security, do not include references to redemption of the security on any such occasion as, by reason of sub- paragraph (1A) of paragraph 3 above, is not to be taken into account for the purpose of determining whether the security is a relevant discounted security by virtue of sub-paragraph (1)(b) of that paragraph."

(2D) In section 92 of that Act, after subsection (6) there shall be inserted the following subsections--

"(7) Where an asset representing a creditor relationship of a company--

(a) ceases at any time to be an asset to which this section applies, but

(b) does not cease at that time to represent a creditor relationship of that company,

the company shall be deemed for the purposes of the Taxation of Chargeable Gains Act 1992 and this Chapter to have disposed of the asset immediately before that time for the relevant consideration, and to have re-acquired it immediately after that time for the relevant consideration.

(8) Any deemed disposal and re-acquisition under subsection (7) above shall be treated for the purposes of that Act of 1992 as a transaction in the case of which--

(a) sections 127 to 130 of that Act would apply, apart from the provisions of section 116 of that Act, by virtue of any provision of Chapter II of Part IV of that Act;

(b) the asset in question represents both the original shares and the new holding for the purposes of those sections;

(c) the market value of the asset at the time of the transaction is an amount equal to the relevant consideration.

(9) Subject to subsection (10) below, in subsections (7) and (8) above 'the relevant consideration', in relation to an asset, means the amount that would have been taken, in accordance with the relevant accounting method, to be the value of the asset at the time of its deemed disposal if that method had been applied to the asset for tax purposes at all times until then.

(10) Subsection (5) above shall not apply in the case of a deemed disposal and re-acquisition under subsection (7) above; but the amount of the relevant consideration in such a case shall be treated for the purposes of the Taxation of Chargeable Gains Act 1992 as reduced by so much (if any) of the amount mentioned in subsection (9) above as is referable to interest which--

(a) is not paid or payable to the company before the time of the deemed disposal; but

I beg to move amendment No. 31, in page 90, line 6, after '122.', insert '(1)'.

Mr. Deputy Speaker:

With this, it will be convenient to discuss amendment No. 32, in page 90, line 10, at end insert--

Question put, That the amendment be made:--

The House divided: Ayes 134, Noes 336.

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