Clause 14 - Income tax deduction for payments to organisations
Finance Bill
6:30 pm
Mark Field (Shadow Minister, Treasury; Cities of London and Westminster, Conservative)
Sir Nicholas, clause 13 might have been lucky for you, but I am afraid that clause 14 will not be so lucky.
I should like to say a few words on clause 13 first, if I may. We welcome the Government's commitment to consulting the scientific research organisation industry on the manner in which the regulations are dealt with and we endorse the need for some clarification in statute.
Clauses 14 and 15 are designed to ensure that payments by the taxpayer to such organisations as are prescribed in clause 13 shall be tax deductible for income tax and corporation tax purposes. I have two questions on which I should be grateful for an answer from the Economic Secretary. First, why cannot the particular form of scientific research organisation be determined in this Finance Bill, notwithstanding the process of public consultation that is being undertaken? Secondly, what representations have the Government received that have persuaded them to amend the terms of the Income Tax (Trading and Other Income) Act 2005 so soon after it has been enacted? I appreciate that there is sometimes schizophrenic activity on the part of the Treasury, but it seems incredibly quick to have enacted a piece of legislation only a few months ago and now to seek to amend its terms in this way.