Clause 94
Finance Bill
10:15 am

David Gauke (Shadow Minister, Treasury; South West Hertfordshire, Conservative)

I have only one brief point to make about the clause, which aims to restrict the scope of the anti-avoidance measures introduced in the Finance Act 2007 by ensuring that when there is a transfer of an  interest in a property within an investment partnership, there will be no charge to SDLT. The measure will be retrospective and take effect for transactions that occurred on or after 19 July 2007. The concern that the anti-avoidance provisions will apply more than the Government intended, with regard to an interest in a property within an investment partnership, was made at some length this time last year in Committee by my hon. Friend the Member for Chipping Barnet (Mrs. Villiers), and in an intervention by my hon. Friend the Member for Ludlow (Mr. Dunne).

The clause represents one of those occasions when the concerns that they and various professional groups raised have been recognised. On the one hand, I welcome the Treasury’s recognition of those concerns, but this time last year, it was apparent that the legislation in the 2007 Finance Bill was flawed and would have an unfortunate effect. As a consequence, there has been a period of uncertainty, and I just wanted to put on record that it is regrettable that clause 94 is necessary because of flaws in last year’s legislation. They were known to the professionals and to the equivalent Committee last year.

Frank Cook (Stockton North, Labour)

We could have done without the rationale—but I shall put the question.

Further consideration adjourned.—[Mr. Blizzard.]