Clause 38 - Charges on income for the purposes of corporation tax
Finance Bill
4:30 pm
Rob Marris (Wolverhampton South West, Labour)
Again, the hon. Gentleman reads the explanatory notes differently from me. As I read them, they do not suggest that this is merely a tidying-up measure. I refer him to note 15 to clause 38:
“Certain disclosures under Part 7 FA 2004 have shown that annual payments are being used in schemes to create an artificial deduction which is not matched by any taxable income.”
That suggests to me that the provision is slightly more than a tidying-up exercise, and that it is open about that.