Clause 49 - Meaning of “investment trust”

Part of Finance (No. 3) Bill – in a Public Bill Committee at 12:00 pm on 7th June 2011.

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Photo of David Hanson David Hanson Shadow Minister (Treasury) 12:00 pm, 7th June 2011

I will not detain the Committee for long. I want to ask the Minister a couple of questions about process, rather than content. It is a moveable feast, and I am on my own today. The Minister will know that the clause allows the Treasury to make regulations about the circumstances in which the commissioners for Her  Majesty’s Revenue and Customs may approve applications from a company to be an investment trust. At line 11 on page 30, the clause states:

“A statutory instrument containing the first regulations under this section may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.”

On page 31, clause 50 states that draft regulations must be

“laid before and approved by a resolution of the House of Commons.”

Are those to be negative or positive resolutions, and how will they be brought forward? Proposed new chapter 3A of part 13 of the Corporation Tax Act 2010 states that

“The Treasury may by regulations provide” that a transaction be specified. I am interested in the practicalities of that, to clarify how the Treasury intends to bring forward such regulations. I have no particular concerns about the proposals in clause 49, but I seek clarity on the resolution procedure and—if he knows the answer—on when the Minister expects such regulations to be brought forward after Royal Assent.