Schedule 6 - Expenses of companies with

Finance Bill – in a Public Bill Committee at 5:30 pm on 11th May 2004.

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Photo of Dawn Primarolo Dawn Primarolo Paymaster General (HM Treasury) 5:30 pm, 11th May 2004

I beg to move amendment No. 83, in

schedule 6, page 277, leave out lines 41 to 45 and insert

'for ''an investment company'', wherever occurring, substitute ''a company with investment business''.'.

Schedule 60—I am sorry. I will start again; it has been a long day. I know that I often put lots of noughts on the end of things, but on this occasion it is inappropriate.

Schedule 6 contains the more important consequential adjustments arising from the changes to management expense rules. The amendment affects a provision dealing with an avoidance device known as loss buying. That is when a company changes ownership so that the new proprietors can take advantage of its unused management expenses. The amendment removes a misleading description of the provision being amended as a consequence of the reform of management expenses rules. It also ensures that the necessary change of wording is made each time that the words that need amendment occur in the provision—three in all.

The amendment is slightly more substantial than previous Government amendments, but it is designed to clarify and ensure that the descriptions of the provisions are accurate. I commend it to the Committee.

Amendment agreed to.

Schedule 6, as amended, agreed to.

Clause 42 ordered to stand part of the Bill.