Finance Bill — House of Commons, 2017-10-11
Topic: Domestic Commerce
George Edward Howarth (Labour, Centre-left): With this it will be convenient to discuss the following: Clause stand part New clause 1—Review of conditions under which business investment relief is available— ‘(1) Chapter A1 of Part 14 of ITA 2007 (remittance basis) is amended as follows (2) After section 809VO (investments made from mixed funds), insert— "809VP  Review of conditions under which business investment relief is available  (1) Within six months of the coming into force of section 15 of the Finance (No. 2) Act 2017, the Commissioners for Her Majesty’s Revenue and Customs shall complete a review of the conditions under which business investment relief is available (2) For the purposes of this section "the conditions" means— (a) Condition A as defined in section 809VD, (b) Condition B as defined in section 809VF (3) The review shall make an estimate of the value of the reliefs granted as a result of the conditions in respect of each tax year for which the relief has been available (4) The review shall make an estimate of the change in the value of the reliefs granted as a result of— (a) changes to the conditions relating to eligible hybrid companies, (b) changes to the periods specified in sections 809VD and 809VH, (c) changes to the grace period in section 809VJ (5) The review shall make an assessment of the effectiveness of the conditions in relation to the stated policy aims of the Government in relation to business investment relief (6) The review shall prepare an analysis of the characteristics of beneficiaries of reliefs having particular regard to— (a) income distribution, (b) gender and other protected characteristics under the Equality Act 2010, (c) domicile (including deemed domicile) (7) A report of the review under this section shall be laid before the House of Commons within one calendar month of its completion."" This new clause requires HMRC to carry out a review of the conditions under which business investment relief is available, including estimates of the value of the reliefs (before and after the changes proposed in this Bill) and an analysis of the characteristics of those using the relief, including their domicile status. New clause 3—Review of the efficacy of the conditions for business investment relief— ‘(1) Chapter A1 of Part 14 of ITA 2007 (remittance basis) is amended as follows (2) After section 809VO (investments made from mixed funds), insert— "809VP  Review of efficacy of the conditions for business investment relief (1) Within two months of Royal Assent to the Finance (No. 2) Act 2017, the Commissioners for Her Majesty’s Revenue and Customs shall complete a review of the impact of the conditions for business investment relief in encouraging investment in the UK (2) The review shall make an estimate of additional investment as a result of the condition for business investment relief— (a) prior to Royal Assent being given to the Finance (No. 2) Act 2017, and (b) if the changes to those conditions in section 15 of the Finance (No. 2) Act were brought into force (3) The Chancellor of the Exchequer shall lay the report of this review before the House of Commons."" This new clause requires HMRC to carry out a review of efficacy of the conditions under which business investment relief is available and the Chancellor to lay it before the House of Commons.