We have heard a great deal about what the Clause is concerned with, which is catching certain transactions and blocking loopholes, but there is some danger that a legitimate trade will also be caught in one of these blocked loopholes. When my right hon. Friend the Chancellor of the exchequer introduced his Budget he said with reference to these provisions: They will be designed to stop a profit being made out of tax by avoidance schemes, but will not penalise normal leasing arrangements."—[OFFICIAL REPORT, 14th April, 1964; Vol. 693, c. 244.] Unfortunately, normal leasing arrangements as now known have little to do with relations between lessor and lessee as most of us think of them.

I am reminded in talking of this of Greek law where I understand it is common for a landowner to own the land, a second owner to own the tree and a third owner to own the olives that grow on the tree. This is the sort of situation that arises under what we like to call leasing. It is common to have a company, for example, manufacturing internal telephones having associated with it another company which buys the product of the manufacturing company and then leases it. But it does not lease it to the user. It leases it to a third company which will be a rental company and which, in turn, will rent the internal telephone service to the ultimate consumer.