Schedule 5.—(RELIEF WHERE PREMIUM, ETC., TREATED AS RENT.) (Hansard, 26 June 1963)

§ The Solicitor-General
I beg to move, in page 79, line 30, to leave out "or (3)" and to insert "(3) or (4)".
The Amendment is consequential on the insertion in Clause 22 yesterday on recommittal of a new subsection dealing with premiums at the option of the tenant on consideration of a reduction in rent.

§ The Solicitor-General
I beg to move, in page 80, line 35, at the end to insert: and whether or not any such balance remains the tax shall be arrived at by applying the said rate or rates to so much of the chargeable sum as remains after deducting such amounts as, following the principle se; out in the said paragraph 2(a,iii), are deductible from that sum". This and the next five Amendments are consequential. They are drafting Amendments to the Schedule, which provides for what is called top slicing relief in respect of charges on premiums where the person charged has a rate of Income Tax and Surtax which would otherwise mean that the payment would be increased to more than one year's Income Taxin one year. The premium may have to be paid out for a period of years. If the person is an individual, the top slicing relief comes into effect. These drafting Amendments make the top slicing relief in respect of the premium charges which were not previously included in the Schedule.

§ Mr. Barber
I beg to move, in page 81, line 36, to leave out from "year" to the end of line 40 and to insert: of assessment for the purposes of surtax or at any subsequent time not later than six years after the end of the year of assessment, (2) Except in relation to a claim in respect of surtax, section 19 of this Act shall not apply as respects relief under this Schedule, and in relation to a claim in respect' of surtax shall apply as if references to the surveyor and the Commissioners concerned were references to the Special Commissioners, and as if proviso (c) were omitted. This Amendment to paragraph 6 of Schedule 5 allows a taxpayer to claim top slicing relief on a chargeable premium within six years after the end of the year of assessment for which the premium is chargeable. Under the Bill as drafted, a claim had to be made when the taxpayer made his Surtax return or appealed against an assesment—within 30 days of the notice of assesment. The time limit for claiming the corresponding Income Tax relief is six years. It is clearly desirable that the Surtax limit should be the same.

§ Mr. Mitchison
On a point of order, Mr. Deputy-Speaker. Both the Financial Secretary and the Economic Secretary rose to propose the Amendment. Which of them actually proposed it?

§ Mr. Deputy-Speaker (Sir William Anstruther-Gray)
The Financial Secretary did.

§ Mr. Diamond
As the Financial Secretary moved the Amendment, perhaps he can tell us why it appeared as a starred Amendment on the Order Paper yesterday.

§ Mr. Barber
My hon. Friend the Economic Secretary will deal with that when he replies to the debate.

§ Mr. Diamond
In those circumstances, I think we ought to allot the hon. Gentleman full marks for being so quick on the draw—

§ Mr. Boyd-Carpenter
Quick on the withdraw.

§ Mr. Diamond
—in getting out of having to explain to us why the Amendment appeared as a starred one as recently as yesterday on the Order Paper.

§ Mr. du Cann
As my hon. Friend would have explained had he been called upon to answer the question, the Amendment is purely drafting. A number of learned bodies have been good enough to make representations to us about these matters, and they have all had to be gone into with a very great deal of care. That was the explanation in this case. It was a reflection of the care with which the suggestions made to us were examined rather than the dilatoriness of those concerned with the examination. The parent Amendments are concerned with a very minor matter and are purely drafting.

§ Mr. du Cann
I beg to move, in page 86, line 17, at the end to insert: or would be so chargeable if he were not exempt from tax". Perhaps we may consider the following Amendment at the same time. Both Amendments are designed to correct a flaw in the original drafting. The point was brought to our attention by one of the learned professional bodies. These Amendments deal with rent charges payable to a charity, as, for example, the Church Commissioners. Clearly these ought not to continue to be subject to deduction of tax as they are in the original drafting, and the Amendments ensure that they shall not be.

§ Mr. du Cann
I beg to move, in page 86, line 37, after "(8)", to insert: after the words 'Schedule B, income' there shall be inserted the words '(other than yearly or other interest)' and". Again, this is a purely drafting Amendment, but again, for the information of the hon. Member for Sowerby, it was discovered—and we hope that it will be put right—by the Inland Revenue.