Clause 32
Finance Bill
Public Bill Committees, 20 May 2008, 12:00 pm
Mark Hoban (Shadow Minister, Treasury; Fareham, Conservative)
The simplification has been broadly welcomed by industry groups because it deals with situations perhaps involving partners in firms of accountants. Under previous legislation, it would have been assumed that their companies were associated by virtue of the fact that they were partners rather than because there was commercial interdependence between the companies. The provision, particularly in the advent of large partnerships comprising several hundred partners, is to be welcomed. However, other situations are still caught by section 13 of the Income and Corporation Taxes Act 1988 when, because people are connected, it deems that their companies are associated even though there is no commercial interdependence.
For example, let us consider companies that are owned separately by relatives. Can the Minister clarify whether discussions are taking place on simplifying that aspect of the rules? There are other ways in which to deal with the same issue in respect of the annual investment allowance.