Only a few days to go: We’re raising £25,000 to keep TheyWorkForYou running and make sure people across the UK can hold their elected representatives to account.

Donate to our crowdfunder

Schedule 40

Finance Bill – in a Public Bill Committee at 3:15 pm on 18th June 2009.

Alert me about debates like this

Oil: chargeable gains

Amendments made: 229, in schedule 40, page 315, line 8, leave out ‘only’ and insert ‘consideration’.

Amendment 230, in schedule 40, page 315, line 8, leave out ‘and C’ and insert ‘C and D’.

Amendment 231, in schedule 40, page 315, line 11, leave out ‘and D’ and insert ‘, C and E’.

Amendment 232, in schedule 40, page 315, line 12, leave out ‘a UK licence that relates to a developed area (“licence A”)’ and insert ‘one or more UK licences’.

Amendment 233, in schedule 40, page 315, line 14, after ‘length’ insert ‘(“disposal A”)’.

Amendment 234, in schedule 40, page 315, line 15, leave out ‘another UK licence that relates to a developed area (“licence B”)’ and insert ‘one or more UK licences’.

Amendment 235, in schedule 40, page 315, line 17, after ‘length’ insert ‘(“disposal B”)’.

Amendment 236, in schedule 40, page 315, line 17, at end insert—

‘(4A) Condition C is that either or both of the following paragraphs applies—

(a) the licence, or at least one of the licences, comprised in disposal A relates to a developed area;

(b) the licence, or at least one of the licences, comprised in disposal B relates to a developed area.’.

Amendment 237, in schedule 40, page 315, line 18, leave out from ‘Condition’ to end of line 29 and insert “D is that both—

(a) disposal A is the only consideration given for disposal B, and

(b) disposal B is the only consideration given for disposal A.

(6) Condition E is that either—

(a) disposal A is the only consideration given for disposal B, or

(b) disposal B is the only consideration given for disposal A,

(and accordingly one of the disposals is part of the consideration given for the other disposal).’

Amendment 238, in schedule 40, page 315, line 35, leave out ‘only’ and insert ‘consideration’.

Amendment 239, in schedule 40, page 315, line 36, leave out from ‘a’ to end of line 5 on page 316 and insert ‘licence-consideration swap.

(2) Each company participating in the swap is to be treated as follows.

(3) As regards the licence, or each licence, which the company disposes of, the company is to be treated as if it had disposed of that licence for a consideration of such amount as to secure that on the disposal neither a gain nor a loss accrues to the company.

(4) In a case where the company acquires only one licence, the company is to be treated as if it had acquired the licence for a consideration of the same amount as the deemed disposal consideration.

(5) In a case where the company acquires two or more licences, as regards each licence acquired, the company is to be treated as if it had acquired that licence for a consideration of—

where—

DDC is the deemed disposal consideration;

A is the value of the licence acquired;

TA is total value of all the licences acquired.

(6) In this section “deemed disposal consideration”, in relation to a company participating in the swap, means—

(a) the amount of the consideration for which the company is, under subsection (3), treated as having disposed of its licence (if the company disposes of only one licence), or

(b) the aggregate of all such amounts (if the company disposes of two or more licences).’.

Amendment 240, in schedule 40, page 316, line 7, after ‘swap’ insert ‘if—

(a) the no gain/no loss amount (“N”) of the company that receives the mixed consideration (“company R”) exceeds

(b) the amount of non-licence consideration (“C”) which company R receives’.

Amendment 241, in schedule 40, page 316, leave out lines 8 to 12 and insert—

‘(2) In a case where company R acquires only one licence, company R is to be treated as if it had acquired the licence for a consideration of—

N - C

(3) In a case where company R acquires two or more licences, as regards each licence acquired, company R is to be treated as if it had acquired the licence for a consideration of—

where—

A is the value of the licence acquired;

TA is total value of all the licences acquired.’.

Amendment 242, in schedule 40, page 316, line 13, leave out ‘its licence’ and insert ‘a licence under the swap’.

Amendment 243, in schedule 40, page 316, line 19, leave out from ‘acquires’ to ‘company’ in line 20 and insert

‘a licence under the swap (“company G”) subsequently disposes of the licence,’.

Amendment 244, in schedule 40, page 316, leave out lines 22 to 25 and insert—

‘(7) In this section the reference to the no gain/no loss amount of company R is a reference to—

(a) in a case where company R disposes of only one licence, company R’s no gain/no loss amount in relation to that disposal, or

(b) in a case where company R disposes of two or more licences, the aggregate of company R’s no gain/no loss amounts in relation to all of those disposals.’.

Amendment 245, in schedule 40, page 316, line 27, after ‘swap’ insert ‘if—

(a) the no gain/no loss amount (“N”) of the company that receives the mixed consideration (“company R”) does not exceed

(b) the amount of non-licence consideration (“C”) which company R receives’.

Amendment 246, in schedule 40, page 316, leave out lines 28 to 44 and insert—

‘(2) As regards the licence, or each licence, which company R acquires, company R is to be treated as if it had acquired the licence for nil consideration.

(3) In a case where company R disposes of only one licence, company R is to be treated as if, on the disposal of the licence, there had arisen a gain of—

C - N

(4) In a case where company R disposes of two or more licences, as regards each licence disposed of, company R is to be treated as if, on the disposal of the licence, there had arisen a gain of—

where—

D is the value of the licence disposed of;

TD is total value of all the licences disposed of.’.

Amendment 247, in schedule 40, page 317, line 2, after ‘swap’ insert ‘—

(a) whatever the no gain/no loss amount (“N”) of the company that gives the mixed consideration (“company G”), and

(b) whatever the amount of the non-licence consideration (“C”) which company G gives’.

Amendment 248, in schedule 40, page 317, leave out lines 3 to 7 and insert—

‘(2) In a case where company G acquires only one licence, company G is to be treated as if it had acquired the licence for a consideration of—

N + C

(3) In a case where company G acquires two or more licences, as regards each licence acquired, company G is to be treated as if it had acquired the licence for a consideration of—

where—

A is the value of the licence acquired;

TA is total value of all the licences acquired.’.

Amendment 249, in schedule 40, page 317, line 8, leave out ‘its licence’ and insert ‘a licence under the swap’.

Amendment 250, in schedule 40, page 317, line 14, leave out from ‘acquires’ to ‘company’ in line 15 and insert

‘a licence under the swap (“company R”) subsequently disposes of the licence,’.

Amendment 251, in schedule 40, page 317, leave out lines 17 to 20 and insert—

‘(7) In this section the reference to the no gain/no loss amount of company G is a reference to—

(a) in a case where company G disposes of only one licence, company G’s no gain/no loss amount in relation to that disposal, or

(b) in a case where company G disposes of two or more licences, the aggregate of company G’s no gain/no loss amounts in relation to all of those disposals.’.

Amendment 252, in schedule 40, page 317, line 22, at end insert—

‘(2A) In subsection (1), after “section 194” insert “and this section”.’.

Amendment 253, in schedule 40, page 317, line 32, leave out ‘only’ and insert ‘consideration’.

Amendment 254, in schedule 40, page 318, line 2, after ‘licence’ insert

‘, as determined at the time the swap arrangements are entered into’.

Amendment 255, in schedule 40, page 318, line 2, at end insert—

‘“swap arrangements”, in relation to a licence-consideration swap or a mixed-consideration swap, means the arrangements under which the swap takes place;”.

(7) After subsection (5A) insert—

“(5B) In any of sections 195B to 195E, a reference to the value of a licence comprised in disposal A or disposal B (see section 195A) is a reference to the value of the licence as determined under the swap arrangements at the time the swap arrangements are entered into.”.’.

Amendment 256, in schedule 40, page 320, line 36, at end insert ‘and disposal consideration’.

Amendment 257, in schedule 40, page 320, line 37, leave out ‘198C’ and insert ‘198G’.

Amendment 258, in schedule 40, page 320, line 46, leave out ‘P’s ring fence trade’ and insert

‘one or more of the following trades—

(i) P’s ring fence trade;

(ii) if P is a member of a group of companies (within the meaning given in section 170), a ring fence trade of another member of that group’.

Amendment 259, in schedule 40, page 321, line 1, at end insert—

‘(2A) If the disposal consists of—

(a) disposal of a licence to which section 195D(3) applies, or

(b) disposal of two or more licences to which section 195D(4) applies,

the consideration for the disposal is to be taken to be the whole of the non-licence consideration obtained on the disposal (which is referred to as “C” in section 195D).

(2B) Accordingly, in sections 198A to 198G (including section 198A(4)), any reference to the consideration obtained on the disposal has effect subject to subsection (2A).’.—(Ian Pearson.)

Photo of Greg Hands Greg Hands Shadow Minister (Treasury)

On a point of order, Mr. Atkinson. We have not had a chance to discuss whether the Opposition amendments are being withdrawn.

Photo of Peter Atkinson Peter Atkinson Conservative, Hexham

The Opposition amendments were not the lead amendments in the group. If the hon. Gentleman wants to press any to a vote, he should let me know and they can be moved at the appropriate point.

Schedule 40, as amended, agreed to.