§ 6.45 p.m.
§ Mr. Diamond
I beg to move Amendment No. 182, Clause 51, in page 114, line 3, at the end to insert:(5A) Part I of Schedule 12 to this Act, except in so far as it relates to recovery of tax shall also have effect in relation to bodies from time to time established by or under any enactment for the carrying on of any industry or part of an industry, or for any undertaking, under national ownership or control as if they were companies within the meaning of the said Part I, and as if any such bodies charged with related functions (and in particular the Boards and Holding Company established under the Transport Act 1962) and subsidiaries of any of them formed a group, and as if also any two or more such bodies charged at different times with the same or related functions were members of a group:Provided that this subsection shall have effect subject to any enactment by virtue of which property rights, liabilities or activities of one such body fall to be treated for corporation tax as those of another.Part I of Schedule 12 contains in paragraph 2(1) the rule that the disposal of a chargeable asset by one member of a group to another member of that group is to be deemed to take place for a consideration of such amount that neither a gain nor a loss accrues to the member of the group making the disposal. In effect, therefore, the group is treated for Capital Gains Tax purposes as if it were one single person, with the consequence that no liability to tax arises in respect of transactions between members of the group, and there can, therefore, be no question of a Capital Gains Tax liability inhibiting the transfer of assets within the group in whatever way best promotes their efficient use.
Since the publication of the Bill, we have received representations to the effect that the benefits of Schedule 12 should extend beyond Companies' Act companies to certain industrial and provident societies and also to nationalised boards and undertakings. We have felt that these representations are well made and should be acceded to, and that is the purpose of the Amendment.
§ Amendment agreed to.