HC Deb 15 February 1949 vol 461 cc955-6
65. Lieut.-Colonel Lipton

asked the Chancellor of the Exchequer in what circumstances re-issues of capital require the permission of the Capital Issues Committee.

Mr. Glenvil Hall

If my hon. and gallant Friend has in mind a transaction involving the conversion and sale of existing shares of a previously inactive company, it would not require Treasury consent unless it fell within the terms of the Control of Borrowing Order, 1947, or of Regulation 6 of the Defence (Finance) Regulations, 1939, as modified by the Capital Issues Exemptions Order, 1947.

Lieut.-Colonel Lipton

Does that answer mean that in the example that, possibly, my right hon. Friend has in mind, the case of the Auroch Investment Company Limited, it is possible for a company to raise £500,000 capital on what looks like bonus terms without paying bonus tax, and without securing the consent of the Capital Issues Committee? Is that possible at the moment?

Mr. Glenvil Hall

That is possible.