Date: 2023-04-18
Rosie Winterton: With this it will be convenient to consider the following: Clauses 6 to 10 stand part. Amendment 26, in schedule 1, page 280, line 32, leave out "a requirement relating to the making of the claim" and insert "the requirement to make a claim notification pursuant to either section 104AA, section 1045A or 1054A of CTA 2009 (as appropriate) or failed to provide the additional information as required by paragraph 83EA". This amendment would make clear that the power to remove a claim for R&D relief from a corporation tax return is only available to HMRC where a company has failed to make a claim notification (required pursuant to Part 1 of this Schedule) or  to submit the additional information (required pursuant to paragraph 13 of this Schedule). Government amendment 14. That schedule 1 be the First schedule to the Bill. Clauses 11 to 15 stand part. Clauses 121 to 125 stand part. That schedule 14 be the Fourteenth schedule to the Bill. Clauses 126 and 127 stand part. That schedule 15 be the Fifteenth schedule to the Bill. Clauses 128 to 173 stand part. Government amendment 12. Clauses 174 to 222 stand part. Government amendment 13. Clauses 223 to 260 stand part. Government amendments 15 to 20. That schedule 16 be the Sixteenth schedule to the Bill. Clause 261 stand part. That schedule 17 be the Seventeenth schedule to the Bill. Clauses 262 to 275 stand part. That schedule 18 be the Eighteenth schedule to the Bill. Clauses 276 and 277 stand part. New clause 1--Statement on efforts to support implementation of the Pillar 2 model rules-- '(1) The Chancellor of the Exchequer must, within three months of this Act being passed, make a statement to the House of Commons on how actions taken by the UK Government since October 2021 in relation to the implementation of the Pillar 2 model rules relate to the provisions of Part 3 of this Act. (2) The Chancellor of the Exchequer must provide updates to the statement at intervals after that statement has been made of-- (a) three months; (b) six months; and (c) nine months. (3) The statement, and the updates to it, must include-- (a) details of efforts by the UK Government to encourage more countries to implement the Pillar 2 rules; and (b) details of any discussions the UK Government has had with other countries about making the rules more effective.' This new clause would require the Chancellor to report every three months for a year on the UK Government's progress in working with other countries to extend and strengthen the global minimum corporate tax framework for large multinationals. New clause 3--Review of business taxes-- '(1) The Chancellor of the Exchequer must, within six months of this Act being passed-- (a) conduct a review of the business taxes, and (b) lay before the House of Commons a report setting out recommendations arising from the review. (2) The review must make recommendations on how to-- (a) use business taxes to encourage and increase the investment of profits and revenue; (b) ensure businesses have more certainty about the taxes to which they are subject; and (c) ensure that the system of capital allowances operates effectively to incentivise investment, including for small businesses. (3) In this section, "the business taxes" includes any tax in respect of which this Act makes provision that is paid by a business, including in particular provisions made under sections 5 to 15 of this Act.' This new clause would require the Chancellor to conduct a review of business taxes, and to make recommendations on how to increase certainty and investment, before the next Finance Bill is published. New clause 6--Review of energy (oil and gas) profits levy allowances-- '(1) The Chancellor of the Exchequer must, within three months of the passing of this Act-- (a) conduct a review of section 2(3) of the Energy (Oil and Gas) Profits Levy Act 2022, as introduced by subsection 12(2) of this Act, and (b) lay before the House of Commons a report arising from the review. (2) The review must include consideration of the implications for the public finances of the provisions in section 2(3)-- (a) were all the provisions in section (2)(3) to apply, and (b) were the provisions in section 2(3)(b) not to apply.' This new clause requires the Chancellor to review the investment allowances introduced as part of the energy profits levy, and to set out what would happen if the allowance for all expenditure, apart from that spent on de-carbonisation, were removed. New clause 7--Review of effects of Act on SME R&D tax credit-- '(1) The Chancellor of the Exchequer must lay before Parliament within six months of the passing of this Act a review of the impact of the measures contained in this Act on the rate of inflation and on small businesses. (2) The review must compare the regime for SME R&D tax credits and associated reliefs before and after 1 April 2023, with regard to the following-- (a) the viability and competitiveness of UK technology startup and scale-up businesses, (b) the number of jobs created and lost in the UK technology sector, and (c) long-term UK economic growth. (3) In this section, "technology startup" means a business trading for no more than three years; with an average headcount of staff of less than 50 during that three-year period; and which spends at least 15% of its costs on research and development activities. (4) In this section, "technology scale-up" means a business that has achieved growth of 20% or more in either employment or turnover year on year for at least two years and has a minimum employee count of 10 at the start of the observation period; and spends at least 15% of its costs on research and development activities.' This new clause would require the Government to produce an impact assessment of the effect of changes to SME R&D tax credits in this act on tech start-ups and scale-ups. New clause 8--Relief for R&D expenditure on data and cloud computing: assessment-- 'Within six months of this Act coming into force, the Chancellor of the Exchequer must publish an assessment of-- (a) the overall costs, (b) the overall benefits, and (c) the net cost or benefit of extending relief of R&D expenditure to profit-making cloud computing services.' New clause 10--Assessment of the impact of the de-carbonisation allowance-- '(1) The Chancellor of the Exchequer must, within six months of this Act coming into force, publish an assessment of-- (a) the financial cost of the de-carbonisation allowance to the Treasury, (b) the impact of the de-carbonisation allowance on overall investment in UK upstream petroleum production, and (c) the revenue that the energy (oil and gas) profits levy would yield if neither the de-carbonisation allowance nor the investment allowance had effect in respect of investment expenditure. (2) The assessment must cover the whole period that the allowance is in effect and also assess the revenue in each tax year. (3) The assessment must include an evaluation of the impact of the de-carbonisation allowance and the investment allowance on the United Kingdom's ability to meet its climate commitments, including-- (a) the target for 2050 set out in section 1 of the Climate Change Act 2008, (b) the duty under section 4 of the Climate Change Act 2008 to ensure that the net UK carbon account for a budgetary period does not exceed the carbon budget, and (c) the commitment given by the government of the United Kingdom in the Glasgow Climate Pact to pursue policies to limit global warming to 1.5 degrees Celsius and phase out inefficient fossil fuel subsidies.' This new clause would require the Government to produce an impact assessment of the de-carbonisation and investment allowances under the Energy Profits Levy, including on tax revenues and the UK's ability to meet its climate targets.