Finance Bill 2002
Amendment 243 Page 467 Line 20
Amendment 244 Page 467 Line 22
Amendment 245 Page 468 Line 22
Amendment 246 Page 468 Line 32
Mr Paul Boateng (Labour, Brent South)
Schedule 35 , page 467, line 20, at end insert
Change of control due to interest of loan creditor
4A (1) Section 111 does not apply by reason of control of the acquiring company changing as a result of a loan creditor becoming, or ceasing to be, treated as having control of the company if the other persons who were previously treated as controlling the company continue to be so treated.
(2) In sub-paragraph (1) 'loan creditor' has the meaning given by section 417(7) to (9) of the Taxes Act 1988.
Mr Paul Boateng
Schedule 35, page 467, line 22, leave out sub-paragraph (1) and insert
(1) If any duty payable under section 111 or this Schedule 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 35, page 468, line 22, after 'company' insert 'and was above it in the group structure
Mr Paul Boateng
Schedule 35, page 468, line 32, at end insert'
'(aa) a company is 'above' another company in a group structure if it
controls?'
(i) that company, or
(ii) 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 relief for company acquisitions under clause 111. In particular, to allow for a change of control due to the interest of a loan creditor; interest; and recovery of section 76 relief from another group company.
DETAILS OF THE AMENDMENT
2. Amendment 243 ensures that section 76 relief is not withdrawn when control of the acquiring company changes as a result of a loan creditor becoming, or ceasing to be, treated as having control as long as the original shareholders still control the company.
3. Amendment 244 alters the date from which interest runs on the section 76 relief which has been withdrawn.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only be payable on any amount which has not been paid within the 30 day period after the section 76 relief has been withdrawn.
4. Amendments 245 and 246 limit the companies from which section 76 relief is recoverable, in the event of non-payment by the acquiring company, to a company which is 'above' the acquiring company in the group structure.
BACKGROUND
5. Clause 111 and Schedule 35 aim to discourage the setting up of companies to avoid the proper rate of stamp duty on UK land and buildings. Amendments 243 - 246 take account of representations made in response to this measure.