Clause 39
Finance Bill
6:45 pm
Peter Atkinson (Hexham, Conservative)
With this it will be convenient to discuss the following: amendment 174, in clause 39, page 19, leave out lines 15 to 18 and insert—
‘(3) For the purposes of this section and subject to subsections (3A) and (3B) below, an offshore fund satisfies the qualifying investments test if, on the last day of each quarter of the offshore fund’s relevant period of account, the market value of the fund’s qualifying investments does not exceed 60% of the market value of all of the assets of the fund (excluding cash awaiting investment).
(3A) The offshore fund shall not satisfy the qualifying investments test if it makes any arrangements with regard to its investments where the purpose of such arrangements is wholly or mainly to satisfy the qualifying investments test on such relevant quarter date and where, having regard to the offshore fund’s overall investment strategy, the offshore fund would have been unlikely to satisfy the qualifying investments test had the test been applied on any other date.
(3B) Where any of the investments held by the offshore fund are “qualifying holdings” (as defined in section 495 of the CTA 2009), such qualifying holding shall not constitute a qualifying investment if the company, scheme or fund which might otherwise constitute the qualifying holding has, for the 12 month period preceding the date that the dividend is paid, provided written confirmation on a quarterly basis to the offshore fund that its investment strategy is to invest in assets which the company, scheme or fund anticipates will meet the qualifying investments test and it is not aware that this strategy has been breached.’.
Amendment 175, in clause 39, page 19, line 23, leave out from ‘means’ to end of line 31 and insert
‘the accounting period ending prior to payment of the dividend.’.
Government amendment 89.
Amendment 172, in schedule 19, page 200, line 28, after ‘(6)’, insert ‘, section 378A’.