Comparison of Divisions: Finance (No. 2) Bill [Ways and Means] — Schedule 20 — Inheritance tax: rules for trusts etc — 4 Jul 2006 at 18:00 with Division No. 104 on 29 Apr 2009 at 15:49

Amendments made: No. 70, page 384, line 38, at end insert-

'(2) For the purposes of sections 71A to 71G above, a deceased individual ("D") shall be taken to have been a parent of another individual ("Y") if, immediately before D died, D had-

(a) parental responsibility for Y under the law of England and Wales,

(b) parental responsibilities in relation to Y under the law of Scotland, or

(c) parental responsibility for Y under the law of Northern Ireland.

(3) In subsection (2)(a) above "parental responsibility" has the same meaning as in the Children Act 1989.

(4) In subsection (2)(b) above "parental responsibilities" has the meaning given by section 1(3) of the Children (Scotland) Act 1995.

(5) In subsection (2)(c) above "parental responsibility" has the same meaning as in the Children (Northern Ireland) Order 1995.".'.

No. 71, page 386, line 29, leave out '("B")'.

No. 72, page 386, line 30, leave out '("the current interest")'.

No. 73, page 386, line 33, leave out

'the following conditions are met'

and insert

'section 49BA or 49BB below so provides'.

No. 74, page 386, line 34, at end insert-

'49BA Transitional serial interest: interest to which person becomes entitled during period 22nd March 2006 to 5th April 2008

(1) Where a person ("B") is beneficially entitled to an interest in possession in settled property ("the current interest"), that interest is a transitional serial interest for the purposes of this Chapter if the following conditions are met.'.

No. 75, page 387, line 6, at end insert-

'49BB Transitional serial interest: interest to which person becomes entitled on death of spouse or civil partner on or after 6th April 2008

(1) Where a person ("E") is beneficially entitled to an interest in possession in settled property ("the successor interest"), that interest is a transitional serial interest for the purposes of this Chapter if the following conditions are met.

(2) Condition 1 is that-

(a) the settlement commenced before 22nd March 2006, and

(b) immediately before 22nd March 2006, the property then comprised in the settlement was property in which a person other than E was beneficially entitled to an interest in possession ("the previous interest").

(3) Condition 2 is that the previous interest came to an end on or after 6th April 2008 on the death of that other person ("F").

(4) Condition 3 is that, immediately before F died, F was the spouse or civil partner of E.

(5) Condition 4 is that E became beneficially entitled to the successor interest on F's death.

(6) Condition 5 is that-

(a) section 71A below does not apply to the property in which the successor interest subsists, and

(b) the successor interest is not a disabled person's interest.'.

No. 76, page 387, line 47, leave out '49B(1)(a)' and insert '49BA'.

No. 77, page 388, line 4, leave out '49B(1)(a)' and insert '49BA'.- [Dawn Primarolo.]

Amendment proposed: No. 5, page 388, line 18, at beginning insert-

'6 (1) In section 89 (trusts for disabled persons)-

(a) in subsection (4)(a) at end insert-

"(aa) a person who lacked capacity within the meaning of section 272 below, or";

(b) in subsection (4)(c), leave out "or middle" and insert "middle or lower"; and

(c) after subsection (4)(c) at end insert-

"(d) a person who satisfies the Commissioners for Her Majesty's Revenue and Customs that he had a condition that it was at that time reasonable to expect would have such effects on him as to lead to him becoming a person-

(i) falling within subsection (4)(a) or (aa) above, or

(ii) in receipt of an attendance allowance mentioned in subsection (4)(b) above, or

(iii) in receipt of a disability living allowance mentioned in subsection (4)(c) above.".'.- [Mrs. Villiers.]

Question put, That the amendment be made:-

The House divided: Ayes 215, Noes 276.

The majority of MPs voted in favour of the motion:^[1]

• This House
• regrets the Government's recent statement^[2] outlining the eligibility criteria for Gurkhas to reside in the United Kingdom;
• recognises the contribution the Gurkhas have made to the safety and freedom of the United Kingdom for the past 200 years;
• notes that more Gurkhas have laid down their lives for the United Kingdom than are estimated to want to live here;
• believes that Gurkhas who retired before 1997 should be treated fairly and in the same way as those who have retired since;
• is concerned that the Government's new guidelines will permit only a small minority of Gurkhas and their families to settle whilst preventing the vast majority;
• further believes that people who are prepared to fight and die for the United Kingdom should be entitled to live in the country; and
• calls upon the Government to withdraw its new guidelines immediately and bring forward revised proposals that extend an equal right of residence to all Gurkhas.

As a consequence, the alternative Government motion, which read:^[3]

• This House
• recognises that this Government is the only one since the Second World War to allow Gurkhas and their families settlement rights to the United Kingdom;
• notes that in 2004 the Government permitted settlement rights to Gurkhas discharged since 1997, following the transfer of the Brigade HQ from Hong Kong to the United Kingdom;
• further notes that under these rules around 6,000 Gurkhas and family members have been welcomed to the UK;
• acknowledges that the court judgement of September 2008 determined that the 1997 cut-off date was fair and rational, while seeking clarification of the criteria for settlement rights for those who retired before 1997;
• further notes that on 24 April the Government published new and more generous guidelines for the settlement applications of Gurkhas who retired before 1997;
• supports this revised guidance, which will make around 10,000 Gurkhas and family members eligible to settle in the UK;
• further notes that the Government undertakes actively to inform those who may be eligible in Nepal of these changes and to review the impact of the new guidance within 12 months;
• further notes that the contribution Gurkhas have made is already recognised by pensions paid to around 25,000 Gurkhas or their widows in Nepal that allow for a good standard of living there; and
• further notes that in the year 2000 Gurkha pensions were doubled and that, earlier in April 2009, in addition to an inflationary uplift of 14 per cent., those over 80 years old received a 20 per cent. increase in their pension.

... was never voted upon.

Although this extremely rare Government defeat in an opposition day motion is not binding (has no legal force)^[4] a Government minister made a statement later in the day to bring "forward the date for the determination of the outstanding applications to the end of May."^[5]

• [1] Christopher Huhne MP, House of Commons, 29 April 2009
• [2] Phil Woollas MP, Written Ministerial Statement, 29 April 2009
• [3] Phil Woolas MP, House of Commons, 29 April 2009
• [4] Home Secretary Jacqui Smith blamed for humiliating Gurkhas defeat in the Commons, Daily Mail, 30 April 2009
• [5] Phil Woolas MP, House of Commons, 29 April 2009