(Except clauses 1,3,7,8,12,20,21,25,67 and 81 to 84, schedules 1, 18, 22 and 23, and new clauses relating to microgeneration) - Clause 27
Finance Bill
9:00 am
Julia Goldsworthy (Shadow Chief Secretary To the Treasury, Treasury; Falmouth and Camborne, Liberal Democrat)
I will not go over what the hon. Gentleman has just been through, but I do not think that there is any opposition to what the clause tries to achieve, in targeting the anti-avoidance and capital losses. However, there are concerns about exactly how widely drawn the clause is and whether it has sufficiently captured the differences between the approach of companies and individuals, and whether it can reflect those differences.
Furthermore, there are concerns, as the hon. Member for Fareham has said, about exactly how appropriate it is to contain so much detail in the guidance, especially if the guidance contradicts much of the substance of the legislation in trying to exclude specific groups. There are also concerns that, because the guidance is not in the Bill, it can be changed and it would not stand up to the test in a court of law.
I think that amendment No. 31 is trying to establish a motive test, which would be very helpful. My concern is exactly how easy, or impossible, it might be to assess against that motive. So I can see where the hon. Gentleman is trying to go with the amendment; I am sympathetic to what he is trying to achieve. I just have concerns about exactly how the amendment would make a difference, in terms of trying to establish a motive test. On that basis, we broadly support the hon. Gentleman, but we would be interested to hear what the Economic Secretary has to say about this issue.