Finance Bill 2002
Amendment 35 Page 456 Line 40
Amendment 36 Page 456 Line 41
Amendment 37 Page 458 Line 20
Mr Chancellor of the Exchequer
35
Page 456, line 40 [Schedule 31], leave out ?and also include any debentures?.
Mr Chancellor of the Exchequer
36
Page 456, line 41 [Schedule 31], at end insert ?and also include any debentures?.
Mr Chancellor of the Exchequer
37
Page 458, line 20 [Schedule 31], leave out sub-paragraph (2).
EXPLANATORY NOTE
SUMMARY
1. The purpose of these amendments is to put an amendment that was made at Committee stage into the correct place in the Bill, and to remove a sub-paragraph in Schedule 31 that became both redundant and incorrect following Committee stage amendments.
DETAILS OF THE AMENDMENTS
2. Amendments 35 and 36 take the words ?and includes any debentures? out of a definition of ?assets? and into a definition of 'securities?. The words were inserted by an amendment at Committee stage, but the amendments cited the wrong line of the relevant page in the Bill, so they were attached to the wrong definition.
3. Amendment 37 removes a definition of loans from paragraph 12 of Schedule 7AD TCGA 1992 which is inserted by Schedule 31 to the Bill. A Committee stage amendment both modified another definition of ?loans? in the Schedule and made it apply for the purposes of the Schedule generally. This left the definition in paragraph 12 redundant and, since it was unmodified, incorrect.
BACKGROUND
4. The proposal to which Schedule 31 gives effect originated from Paul Myners? recommendations in his Review of Institutional Investment, all of which were accepted by the Government. One of Myners? findings was that the burden of the current rules has a significant inhibitory effect on the use of such investment vehicles by life insurance companies. The Schedule is intended to reduce this burden.
5. The Schedule was devised in consultation with the insurance industry and others. Since the Bill was published, the industry has suggested that some of their members investing in venture capital through limited partnerships would, because of the type of investments that are made (particularly in the USA), find it difficult to qualify. The amendments included here have also been discussed and agreed with the industry.