Budget Resolution 13. Business Investment Relief — 6 Sep 2017 at 18:44

Oliver Letwin MP, West Dorset voted to expand the range of circumstances under which those investing funds derived from foreign income and gains in the UK may do so without those foreign income and gains becoming subject to UK tax.

The majority of MPs voted to expand the range of circumstances under which those investing funds derived from foreign income and gains in the UK may do so without those foreign income and gains becoming subject to UK tax.

The motion supported by the majority of MPs in this vote was:

Section 809VA of Chapter A1 of Part 14 of the Income Tax Act 2007 which provided for Business investment relief was introduced by Schedule 12 PART 2 Paragraph 7 of the Finance Act 2012.

Business investment relief enables foreign income and gains to be invested in the UK without becoming subject to taxation under the "remittance basis" alternative tax treatment available to individuals who are resident, but not domiciled, in the UK. "Remittance basis" is an alternative to paying to UK tax on worldwide income and gains, and instead paying tax on UK income and gains and foreign income and gains if and when they are brought to the UK.[1]

While the motion which was the subject of this vote had a broader scope, it probably is intended to relate specifically to the provisions in Clause 15 of the Finance Act 2017 proposes amendments to the Business investment relief (BIR) scheme, the explanatory notes to the Bill[2] state:

"This clause introduces a number of changes to the rules governing BIR to encourage foreign investors to make greater investment into UK business."

Specific changes include:

  • to allow an investor to claim BIR on the acquisition of existing shares in a company in which they have made an investment.
  • allows an investor to claim BIR when investing in a stakeholder and trading company.
  • clarification of the position in relation to corporate members of partnerships.

The passing of the resolution which was the subject of this vote may enable provisions to be in operation before the Finance Bill is enacted[3].

The explanatory notes to the Ways and Means motions[4] state the motion which was the subject of this vote:

  • Authorises the Finance Bill to make provision (including with retrospective effect) about the conditions under which business investment relief in Chapter A1 of Part 14 of the Income Tax Act 2007 is available.

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Debate in Parliament |

Party Summary

Votes by party, red entries are votes against the majority for that party.

What is Tell? '+1 tell' means that in addition one member of that party was a teller for that division lobby.

What are Boths? An MP can vote both aye and no in the same division. The boths page explains this.

What is Turnout? This is measured against the total membership of the party at the time of the vote.

PartyMajority (Aye)Minority (No)BothTurnout
Con309 (+2 tell) 0098.1%
DUP10 00100.0%
Green0 10100.0%
Independent1 00100.0%
Lab0 243 (+2 tell)093.5%
LDem0 7058.3%
PC0 40100.0%
SNP0 31088.6%
Total:320 286095.0%

Rebel Voters - sorted by party

MPs for which their vote in this division differed from the majority vote of their party. You can see all votes in this division, or every eligible MP who could have voted in this division

Sort by: Name | Constituency | Party | Vote

NameConstituencyPartyVote
no rebellions

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