Finance Bill 2002
Amendment 238 Page 462 Line 22
Amendment 239 Page 463 Line 10
Amendment 240 Page 464 Line 12
Amendment 241 Page 464 Line 17
Amendment 242 Page 464 Line 19
Mr Paul Boateng (Labour, Brent South)
Schedule 34, page 462, line 22, at end insert?
?Relief not withdrawn in case of winding-up
2A (1) Section 109 does not apply if the transferee company ceases to be a member of the same group as the transferor company by reason of anything done for the purposes of, or in the course of, winding up the transferor company or another company that is above the transferor company in the group structure.
(2) For the purposes of this paragraph a company is ?above? the transferor company in the group structure if it is the parent (within the meaning of the relevant group relief provision)?
(a) of the transferor company, or
(b) of another company that is above the transferor company in the group structure.?.
Mr Paul Boateng
Schedule 34, page 463, line 10, leave out sub-paragraph (1) and insert?
?(1) If any duty payable under section 109 is not paid within the period of 30 days within which payment is to be made, interest is payable on the amount remaining unpaid.?.
Mr Paul Boateng
Schedule 34, page 464, line 12, leave out paragraph (a) and insert?
?(aa) the transferor company;
(ab) any company that, at any relevant time, was a member of the same group as the transferee company and was above it in the group structure;?.
Mr Paul Boateng
Schedule 34, page 464, line 17, leave out ?this ?purpose? and insert ?the
purposes of this paragraph?
(a)?.
Mr Paul Boateng
Schedule 34, page 464, line 19, at end insert?
?(b) a company is ?above? another company in a group structure if it is the parent (within the meaning of the relevant group relief provision)?
(i) of that company, or
(ii) of another company that is above that company in the group
structure.?.
EXPLANATORY NOTE
SUMMARY
1. The purpose of these amendments is to refine the supplementary provisions relating to withdrawal of group relief under clause 109. In particular, relief not withdrawn in case of liquidation; interest; and recovery of group relief from another group company.
DETAILS OF THE AMENDMENT
2. Amendment 238 ensures that group relief is not withdrawn where the transferor company leaves the group by way of liquidation, whether that is the liquidation of the transferor company or a company which is ?above? the transferor company in the group structure.
3. Amendment 239 alters the date from which interest runs on the group relief which has been withdrawn. It provides that interest will only be payable on any amount which has not been paid within the 30 day period after the group relief has been withdrawn.
4. Amendments 240, 241 and 242 limit the companies from which group relief is recoverable, in the event of non-payment by the transferee company, to the transferor company or any company which is ?above? the transferee in the group structure.
BACKGROUND
5. Clause 109 and Schedule 34 aim to discourage the setting up of companies to avoid stamp duty on UK land and buildings. Amendments 238 - 242 take account of representations made in response to this measure.
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