Clause 96 - Gifts of real property to charity

Part of Finance Bill – in a Public Bill Committee at 4:00 pm on 13th June 2002.

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Photo of John Healey John Healey The Economic Secretary to the Treasury 4:00 pm, 13th June 2002

These amendments clarify the position of easements that are included as part of a gift of land and ensure that the provision correctly reflects the position in Scottish law.

Amendment No. 198 makes it clear that when a person makes a disposal to a charity of freehold or leasehold property, including any easement benefiting that land such as a right of access, that easement is included in the definition of the disposal of the whole of a beneficial interest in a qualifying interest in land. It also tidies up the drafting by inserting what was subsection (2) of proposed new section 587C of the Taxes Act 1988 into section 587B as new subsection (9AB). Amendment No. 202 consequently removes subsection (2) of proposed new section 587C. I am delighted that the hon. Member for Mid-Worcestershire (Mr. Luff) is with me on those points.

Amendments Nos. 199, 200 and 201 make some small changes to proposed new subsection (9C), which deals with the application of the provision to Scotland. They provide specific Scottish translations of the English and Welsh terminology concerning Scottish tenancies and clarify the position of Scottish missives of let.

Amendments Nos. 203 and 204 deal with the transitional provisions covering the position prior to the changes to Scottish land law to be introduced by the Abolition of Feudal Tenure etc. (Scotland) Act 2000. The existing subsection (7) is deleted because Scottish Ministers will not be able to effect the end of feudal tenure before Royal Assent of the Finance Bill. There is also a minor amendment to the wording in subsection (9) more closely to reflect the wording used in the Abolition of Feudal Tenure etc. (Scotland) Act 2000.

The amendments simply clarify some points in the clause and I ask the Committee to support them.

Amendment agreed to.

Amendments made: No. 199, in page 72, line 29, leave out 'and'.

No. 200 in page 72, line 31, leave out

'the interest of a tenant'

and insert

'a tenant's right over or interest'.

No. 201, in page 72, line 32, at end insert

', and

(c) references to an agreement for a lease do not include references to missives of let that constitute an actual lease.''.'.—[John Healey.]