Schedule 29 - Gains and losses of a company from intangible fixed assets

Part of Finance Bill – in a Public Bill Committee at 10:45 am on 13th June 2002.

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Photo of Mr John Burnett Mr John Burnett Liberal Democrat, Torridge and West Devon 10:45 am, 13th June 2002

I should like to raise a small point of clarification with the Economic Secretary. Paragraph 56 is headed:

''Roll-over relief on reinvestment: application to group member''.

The Law Society has brought to my attention the fact that it is not clear from paragraph 56(2)(b) whether the disposing company still needs to be a member of the group when the expenditure on other assets is incurred. It should not be necessary for the disposing company to remain a member of the group and I look forward to hearing the Government's view on that from the Economic Secretary. If there is doubt, I hope that an appropriate amendment can be tabled on Report so that the model contained in section 175(2A) of the Taxation of Chargeable Gains Act 1992 can be followed in such circumstances. It is not wise to have the inflexibility that could be construed as being part of this provision and I hope that the Economic Secretary will give us his interpretation of the provision, and tell us whether he believes that the more benign construction is more appropriate and, if there is any doubt, that an amendment will be tabled on Report.