Clause 155 - Overseas life insurance companies
Finance Bill
5:00 pm
Mr Stephen O'Brien (Eddisbury, Conservative)
As I come to the last clause that I shall be dealing with before the Whitsun recess, I will be sharing a sigh of relief with all the other Committee members.
The clause gives the Treasury power to make regulations rewriting the tax treatment of overseas life insurance companies. It also applies to overseas life insurance companies the new rules on the treatment of permanent establishments contained in clauses 147 to 153 and schedules 26 and 27. The matter is of great concern. Some people have even argued that it is unacceptable to have the whole code by which overseas life insurance companies are taxed rewritten without adequate parliamentary scrutiny. The clause does not permit any consideration of the regulations by Parliament. It does not even contain any guidance as to the nature of the changes that might be made.
As a matter of principle, it would normally be my position, and that of Her Majesty's official Opposition, to consider voting against the clause in such circumstances, because that is critical, particularly when there is a code that affects a whole sector of business and when there has not been the necessary scrutiny, including sight of the general guidance and consideration of the regulations. However, I hope that the Paymaster General will provide an explanation, so I shall reserve my position until I have heard what she has to say.