Clause 84 - Interests in collective investment schemes

Part of Finance (No. 3) Bill – in a Public Bill Committee at 1:45 pm on 9th June 2011.

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Photo of Kerry McCarthy Kerry McCarthy Shadow Minister (Treasury) 1:45 pm, 9th June 2011

I have a couple of quick comments to make. The Government’s tax information and impact note and explanatory notes say that major reforms to the rules on stamp duty reserve tax for collective investment schemes were rejected after formal consultation in 2007, but the Government are now going ahead with minor changes after informal consultation since then.

The consultation embarked on in 2007 by the previous Government was very thorough. There were two separate consultations, one beginning in February and a follow-up in August. The conclusion was that there should be no major reforms of the legislation. Will the Minister provide more information about the informal consultation undertaken recently by the Treasury? Who was consulted and in what circumstances, and what was the scope of the consultation? As a result of responses received to that consultation, were any of the views set out in the original formal consultation of 2007 contradicted? What assessment has been made of the change in tax revenues resulting from the measure?