Clause 38
Finance Bill
4:45 pm
Kitty Ussher (Economic Secretary, HM Treasury; Burnley, Labour)
The hon. Gentleman has explained the effect of the amendment, so I shall not repeat that. I do not feel that the amendment is necessary for two reasons. First, it is normal in tax legislation for regulation-making powers to be introduced. The first exercise of the power is made by affirmative resolution. That is what form a substantive debate on the new scheme would take. Subsequent exercises are made by negative resolution. That follows the same format as that for UK authorised investment funds introduced in 2005. It is simply standard procedure.
Concerns have been raised that we might use this power to change the tax definition of what constitutes an offshore fund. That is not the case. I reassure hon. Members that the Government have no intention of changing the tax definition of what constitutes an offshore fund by means of secondary legislation. Indeed, the Government decided not to change the definition this year, having listened to industry, and are committed to further discussions before changing the definition in next year’s Finance Bill. It will therefore be properly scrutinised at that stage. I ask the hon. Gentleman to withdraw the amendment because it is unnecessary.