Schedule 15 - Charge to income tax on benefits received by former owner of property
Finance Bill
5:45 pm
Mr Howard Flight (Shadow Chief Secretary To the Treasury, Economic Affairs; Arundel and South Downs, Conservative)
Thank you.
There are two points of principle that I ask the Paymaster General and the Revenue to look into and make sure that they are happy about. The first is in
relation to clause 44. As I stated, there are, as we understand it, two important existing exemptions from a gift with reservation which have been ignored in the drafting of schedule 15 and the adoption of the much wider scope of section 660A. The first question is whether that is intended. If so, that needs to be made clear. If it is not intended, and the amendment is not satisfactory, perhaps another route to address the problem might be found.
The second point is the subject of amendments Nos. 45 and 107. I understand what the Paymaster General says about the fact that, if the tax paid has already been offset by something else, it should not be double-used; that is fair enough. However, if that is not the point, it seems common sense that the provisions should allow tax for tax, or value for value. The amendments are not designed to open doors to particular wheezes; the point simply seemed a reasonably fair one to make on a common-sense basis.
There is no point in putting our amendments to the vote; the Government amendments address part of the issues. I would be grateful if my two specific points could be looked into further.
Amendment agreed to.
Amendments made: No. 130, in
schedule 15, page 344, line 19, leave out
'the property comprised in the settlement'
and insert 'that property'.
No. 131, in
schedule 15, page 344, line 36, leave out from beginning to 'attributable' in line 37 and insert
'any of the following provisions—
(a) section 547 of the Taxes Act 1988,
(b) section 660A of that Act,
(c) section 739 of that Act,
(d) section 77 of the Taxation of Chargeable Gains Act 1992 (c.12), and
(e) section 86 of that Act,
so far as the tax is'.—[Dawn Primarolo.]
Amendment proposed: No. 132, in
schedule 15, page 345, line 2, leave out 'this Schedule' and insert
'paragraphs 3(2) and 6(2) (the disposal condition)'.—[Dawn Primarolo.]