New Clause 8 — Transfers of trade to obtain terminal loss relief

Part of Parliamentary Commissions of Inquiry – in the House of Commons at 4:00 pm on 7th July 2009.

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Photo of Michael Meacher Michael Meacher Labour, Oldham West and Royton 4:00 pm, 7th July 2009

I want to make one very brief central point, and it relates to what Stewart Hosie has just been saying. My right hon. Friend the Financial Secretary has explained that new clause 8 is necessary to block yet another loophole that would open up yet another lucrative tax avoidance mechanism, and I am absolutely sure that he is right. What is significant is that the Government have found it necessary to table the new clause now, and that is because the latest tax avoidance scam surfaced only after the Finance Bill was published.

Similar scams are being invented all the time, by extremely highly paid City accountants and lawyers. As a result, the Treasury has to scurry around trying to block them up as quickly as they are created.