Clause 99

Finance Bill – in a Public Bill Committee at 10:15 am on 7th June 2007.

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VAT: transfers of going concerns

Question proposed, That the clause stand part of the Bill.

Photo of David Gauke David Gauke Conservative, South West Hertfordshire

The clause relates to circumstances in which a business is transferred as a going concern, and it amends the VAT Act 1994 in which the transferor retains records. In the debate last year about section 21 of the Finance Act 2006, we considered the issue of records, again for the purposes of tackling MTIC fraud. The Paymaster General made it clear that the burden of additional record keeping would apply only to fraud matters, and that the power should be used specifically to tackle large-scale fraud such as MTIC fraud. She also said that it was impractical to try to limit the scope of the measure with the legal definition of MTIC, but that was none the less the purpose. Does the same thinking apply to clause 99? Will the Financial Secretary confirm that the Paymaster General’s undertaking regarding section 21 of the 2006 Act has been followed through?

Photo of John Healey John Healey The Financial Secretary to the Treasury

The clause is not connected with MTIC fraud; it is a simplification measure. It has been requested by business, it will be welcomed by business and it will benefit about 50,000 transfers of going concerns, 99 per cent. of which are among small concerns.

Question put and agreed to.

Clause 99 ordered to stand part of the Bill.

Clause 100 ordered to stand part of the Bill.