Clause 69
Finance (No.2) Bill
12:30 pm
Brooks Newmark (Braintree, Conservative)
I thank my hon. Friend for that intervention, which reflects the point that I made a couple of minutes ago. I want to touch on the second concern raised by the CIT. It says:
“We also mentioned that draft s184a disallows a loss arising on a degrouping deemed disposal (eg where another person acquires more than 25 per cent. of the chargeable company), but does not exempt any gain arising on a similar deemed disposal. We cannot discern the rationale for this and would appreciate an explanation. However, it seems to us to be another case ofthe principles applying only where it suits the Government. The above comments apply to the provisions as included in the Finance Bill, which are the same as the draft provisions.”
Finally it says:
“It is disappointing that there has been no change in the draft legislation.”
I am sure that the Paymaster General has seen the document. I respect the CIT, so I shall be interested to hear her comments on the two concerns that it has raised in respect of clause 69.