HC Deb 19 July 1894 vol 27 cc383-4
MR. T. M. HEALY (Louth, N.)

I beg to ask the Chancellor of the Exchequer whether the Inland Revenue have, without assigning any reason, declared that they will not exercise the discretion vested in them by a recent Act to allow Limited Liability Companies to compound for Stamp Duty on transfers by an annual payment, and therefore have refused in every case recently to allow a composition; and has this action been taken on instructions from the Treasury; and, if so, by what authority do the Treasury claim the power to direct a Department not to act on a Statute?

SIR W. HARCOURT

The facts are as stated in the first part of the question. The Board in this matter have exercised the discretion vested absolutely in them by Section 115 of the Stamp Act, 1891. The fact is that experience has shown the Board that it is not expedient that the composition for Stamp Duty authorised by the section referred to should be made with regard to Limited Liability Companies. The Treasury would, if time had permitted, have introduced a clause in an Omnibus Bill to repeal the section authorizing agreements for composition in the case of such companies. Pending this, the Board, by virtue, as I have said, of their discretionary power, do practically refuse to allow companies to compound.

MR. T. M. HEALY

The right hon. Gentleman has not answered the second paragraph of the question. What business have the Treasury to meddle in a matter of this kind with another Department which is held by Statute to be in their discretion?

SIR W. HARCOURT

The Department naturally consults the Treasury on the subject. The Board of Inland Revenue does now exercise this discretion with regard to allowing composition; but it has been decided to propose, when an opportunity occurs, to repeal the section of the Act authorizing this discretion in the case of these Limited Liability Companies. I had intended to introduce a clause into the Bill I have referred to that effect.

MR. T. M. HEALY

Is it the Treasury which repeals Acts of Parliament or Parliament itself?

SIR W. HARCOURT

The Treasury does not repeal Acts of Parliament at all The Act of Parliament gives discretion to the Inland Revenue to grant or refuse compensation, and the Inland Revenue have exercised that discretion by refusing, as they have statutory power to do.