Schedule 23 - Corporation tax relief for employee share acquisition

Part of Finance Bill – in a Public Bill Committee at 3:00 pm on 12 June 2003.

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Photo of Dawn Primarolo Dawn Primarolo Paymaster General (HM Treasury) 3:00, 12 June 2003

I understand the hon. Gentleman's point. His amendment seeks to put it beyond doubt that the value of options given up in the circumstances dealt with in paragraph 13 is disregarded from the calculation of the relief in the same way as it is disregarded when taxing the employee.

I am sorry to do this to the hon. Gentleman, but officials have consulted parliamentary counsel—always the ace in a Committee. Parliamentary counsel confirms that the additional words proposed in the amendment are not necessary to clarify the interpretation. However, it would assist the day-to-day application of the new relief if the point were clearly explained in the Inland Revenue guidance on the operation of the schedule.

I said that I was sorry to do that to the hon. Gentleman because, as far as Ministers are concerned, parliamentary counsel is all four aces when it comes to being the final arbiter on the drafting of Bills. Ministers challenge the interpretation at their peril. I sincerely hope that aspiring Ministers in the decades to come will also consider such challenges unwise.

Mr. Michael Jack (Fylde) rose—