Clause 35 - Elimination of double counting etc

Finance Bill – in a Public Bill Committee at 4:15 pm on 11th May 2004.

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Photo of Dawn Primarolo Dawn Primarolo Paymaster General (HM Treasury) 4:15 pm, 11th May 2004

I beg to move amendment No. 75, in

clause 35, page 36, line 1, leave out first 'paragraph' and insert 'Schedule'.

Photo of John Butterfill John Butterfill Conservative, Bournemouth West

With this it will be convenient to discuss Government amendments Nos. 76 to 78.

Photo of Dawn Primarolo Dawn Primarolo Paymaster General (HM Treasury)

Briefly, the amendments make detailed corrections to the clause to correct errors noticed since the Bill was published and to ensure that the clause has the intended effect. Amendments Nos. 75, 77 and 78 ensure that the definition of a paragraph 6C claim applies for the purposes of schedule 28AA as a whole. They correct the mechanism that allows lenders to make early claims for gross payment of interest. The correction is no more than a matter of terminology.

Amendment No. 76 corrects a detailed cross-reference. It inserts a cross-reference into a rule that will allow a company to make a late claim to a compensating adjustment when the need arises. That is part of ensuring that the extension of transfer pricing rules does not lead to double taxation.

I apologise to the Committee for the need to make the corrections, but they have been identified since the Bill's publication, and they will enable it to operate as intended. I commend them to the Committee.

Photo of Mark Prisk Mark Prisk Shadow Paymaster General

I welcome the amendments. It is quite clear that they are intended to correct errors in the body of the legislation. Accordingly, we have no objections to them.

Amendment agreed to.

Amendments made: No. 76, in

clause 35, page 36, line 15, leave out

'109(3)(b) of the Taxes Act 1988'

and insert

'111(3)(b) of the Finance Act 1998'.

No. 77, in

clause 35, page 39, line 4, leave out 'or 6C above' and insert

'above or a paragraph 6C claim'.

No. 78, in

clause 35, page 39, line 8, at end insert—

'(5) In paragraph 14(1) (general interpretation) insert the following definition at the appropriate place—

'' ''paragraph 6C claim'' has the meaning given by paragraph 6C(2) above;''.'.—[Dawn Primarolo.]

Clause 35, as amended, ordered to stand part of the Bill.