Tenth Schedule.— (EXCESS PROFITS LEVY: EFFECT OF CERTAIN TRANSFERS OF GOING CONCERNS.) (Hansard, 26 May 1952)

§ Mr. Boyd-Carpenter
I beg to move, in page 103, line 4, at the end, to insert: (d) the transferor's borrowed money in that period had been borrowed money of the transferee and not of the transferor; and This Amendment, and the two immediately following it, are all drafting points which arose from my right hon. Friend's new Clause on borrowed money. Amendment agreed to.
Further Amendments made: In page 103, line 21, leave out "and (c)," and insert "(c) and (d)."
In line 23, after "capital," insert "borrowed money."—[Mr. Boyd-Carpenter.]

§ Mr. Boyd-Carpenter
I beg to move, in page 103, line 29, at the end, to insert: (3) Where under the preceding provisions of this paragraph the standard profits for a full year of the transferor and the transferee fall to be calculated on the assumption that, immediately after the transfer, the transferee has 1055 paid in cash by way of repayment of its share capital and the transferor has received in cash in respect of an issue of its share capital an amount equal to the value of any assets of the transferor not included in the transfer, it shall also be assumed, for the purpose of the calculation, that an amount equal to the liabilities of the transferor not included in the transfer has been so paid by the transferor and received by the transferee. This Amendment and the one immediately following, to line 40, and also the one to make an addition, in page 106, to line 24, are intended to clarify what happens when a business is transferred on the terms that the purchaser does not assume responsibility for the liabilities of the transferor. As originally drafted, we felt the Bill was a little obscure, and therefore these Amendments were put down to make it clear that, as the fact that only assets are being taken over will be reflected in increasing the purchase price, account of the fact that the purchase has been made on that basis will be taken in giving the purchasing company its standard. In other words, the standard of the purchasing company will be appropriately increased.
Amendment agreed to.
Further Amendments made: In page 104, line 40, at end, insert: (3) Where under the preceding provisions of this paragraph the transferee's standard profits, or standard profits for a full year, fall to be calculated on the assumption that the transferee has, immediately after the transfer, paid in cash by way of repayment of its share capital an amount equal to the value of any assets of the transferor not included in the transfer, it shall also be assumed, for the purpose of the calculation, that the transferee has, immediately after the transfer, received in cash in respect of an issue of its share capital an amount equal to the value of any liabilities of the transferor not included in the transfer. In line 48, at end, insert: and that the transferor had no borrowed money in any period beginning on the date of the transfer. In page 106, line 24, at end, insert: (3) Where under the preceding provisions of this paragraph the transferor's standard profits, or standard profits for a full year, fall to be calculated on the assumption that the transferor has, immediately after the transfer, received in cash in respect of an issue of its share capital an amount equal to the value of any of its assets not included in the transfer, it shall also be assumed, for the purpose of the calculation, that the transferor has, immediately after the transfer, paid in cash by way of repayment of its share capital an amount equal to the value of any of its liabilities not included in the transfer. 1056 In line 31, at end, insert: that the transferor had no borrowed money in any period beginning on the date of the transfer.—[Mr. Boyd-Carpenter.]

§ Mr. Boyd-Carpenter
I beg to move, in page 108, line 33, to leave out "subparagraph (2) of paragraph 3 or."
This Amendment and the one immediately following to line 39, bring the Tenth Schedule into line with my right hon. Friend's Amendment to the Eight Schedule, to give a company an option to withdraw a previous election in relation to an initial allowance.