Capital Gains Indexation: Groups and Associated Companies

Schedule 9 – in the House of Commons at 12:30 am on 13 July 1988.

Alert me about debates like this

Amendments made: No. 47, in page 148, line 4, at beginning insert— `Subject to sub-paragraph (2A) below,'.

No. 48, in page 148, line 10, at beginning insert— 'Subject to sub-paragraph (2A) below,'.

No. 49, in page 148, line 18, at end insert— `(2A) Where—

  1. (a) there is a disposal by a company of a debt on a security owed by another company,
  2. (b) the debt constituted or formed part of the new holding received by the company making the disposal on a reorganisation, and
  3. (c) sub-paragraph (1) or (2) above would apply in relation to the disposal but for this sub-paragraph, neither of those sub-paragraphs shall apply in relation to the disposal, but any indexation allowance which, apart from this sub-paragraph, would be due on the disposal shall be reduced by such amount as appears to the inspector, or on appeal the Commissioners concerned, to be just and reasonable.'

No. 50, in page 148, line 24, after 'person' insert— '(aa) the company and that person are not linked companies immediately before the disposal,'.

No. 51, in page 148, line 30, leave out 'Where—

(a)' and insert— `This paragraph applies—(a) where'.

No. 52, in page 148, line 36, leave out 'and (b)' and insert— 'or(b) where—

  1. (i) there is a disposal by a company of a holding of shares of another company which is not a holding falling within paragraph (a) above,
  2. (ii) the holding constituted or formed part of the new holding received by the company making the disposal on a reorganisation, and
  3. (iii) but for section 78 of the Capital Gains Tax Act 1979 that reorganisation (or in a case where the holding disposed of derives, in whole or in part, from assets which were original shares in relation to an earlier reorganisation, that reorganisation or any such earlier reorganisation) would have involved a disposal in relation to which paragraph 1 above would have applied or this paragraph would have applied by virtue of paragraph (a) above,
if.'

No. 53, in page 148, line 39, at beginning insert—

'(1A) Where this paragraph applies'.

No. 54, in page 150, line 15, at end insert— '(1A) In this Scedule the expressions "reorganisation", "original shares" and "new holding" have the meanings given by section 77 of the Capital Gains Tax Act 1979 except that, in a case where sections 78 and 79 of that Act apply in circumstances other than a reorganisation (within the meaning of section 77 of that Act) by virtue of any other provision of Chapter II of Part IV of that Act (conversion of securities, company reconstructions and amalgamations etc.), those expressions shall be construed as they fall to be construed in sections 78 and 79 as they so apply.'—[Mr. Norman Lamont.]