Clause 46
Crossrail Bill
12:00 pm
Tom Harris (Parliamentary Under-Secretary, Department for Transport; Glasgow South, Labour)
The new clause will give effect to a new schedule relating to the tax treatment concerning statutory transfer schemes. New schedule 1 makes provision relating to tax consequences that could otherwise arise in relation to the transfers of property, rights and liabilities under transfer schemes made under schedule 12. Broadly, it ensures that inappropriate tax charges and reliefs are not triggered as a result of a transfer scheme and provides continuity of tax treatment where appropriate.
At a level of principle therefore, an understanding of schedule 12 is—it says in my briefing—quite straightforward. It is intended to cater for the various scenarios concerning the transfer of assets and liabilities in the context of construction and delivery of Crossrail. It is right to draw Members’ attention to the fact that because Crossrail will not be completed for a number of years, we are looking to take a power by statutory instrument to make further modifications to the tax treatment of transfer schemes.
We consider that that is necessary in order to deal with the inevitable but unforeseeable future adaptation of the tax system. Expressed at a level of principle, the schedule is straightforward, but the detail is somewhat technical and I do not propose to go into it in great depth. I hope that what I have said today and the explanation in my letter of 19 November 2007, which is available in the Committee Room, will persuade hon. Members to give these measures their support.