Schedule 17
Finance Bill
6:00 pm
Mark Hoban (Shadow Minister, Treasury; Fareham, Conservative)
I am not sure that it does. We emerge from this slightly more confused than when we started. It would appear from the note that PWC sent us that the position as it stood in the Finance Act 2007 reflected the law, as the special commissioners found to be the case. We have some case law here that is very clear that companies should have been able to carry forward losses that arose prior to 31 December 2002. The special commissioners have been very clear in their finding about the availability of these losses. To say that this is merely the reversal of an accidental repeal last year does not really address the concern that the special commissioners have ruled on this and it is likely to go further.
There is a policy decision in that if the special commissioners’ findings were accepted by higher courts, there would be a loss to the Exchequer of £50 million. We are looking for a bit more openness and clarity as to why we should support the amendment. While the mistake may have been accidental last year, the reality is that the law as it stands reflects the view of the special commissioners in this case. Unless the Minister can give us some more reassurance, we may have to press this to a Division.