§ Mr. Diamond
I beg to move Amendment No. 338, in page 54, line 19, to leave out "that income" and to insert "those profits".
This is purely a drafting Amendment. I am sure that it is not necessary to spend time on it.
§ Mr. Barber
I do not quite understand how this is a mere drafting Amendment. If one looks back to the words "income" and "profits" in Clause 42(4), one sees that'profits' means income and chargeable gains".As Clause 45(2) was originally drafted, a company to which capital gains accrued in a fiduciary capacity would not have been liable to tax in respect of those capital gains, regardless of whether they accrued to it, in the words of the subsection, in "its own beneficial interest". Surely, the Amendment would make those capital gains liable to tax if they were received by the company in its own beneficial interest. That being the case, this does not appear to me to be a mere drafting Amendment. It brings into charge capital gains which, as the Bill is drafted, would not be brought into charge. Unless we can have a clear answer that this is not the case, as it seems patently to be from reading the Amendment, in line with the attitude which we have taken throughout the Bill concerning double taxation between companies and individual shareholders, we will have to divide against the Amendment.
§ Mr. Peyton
It seems from what is going on that my right hon. and hon. 2054 Friends have been seriously at fault in their handling of the Bill. What they should have done with their Amendments, many of which have been extraordinarily sensible and desirable, is not to have made speeches, but simply to have said that they were drafting Amendments. Then, we would undoubtedly have had a very different Bill.
I am at a complete loss to understand how the Chief Secretary can move an Amendment to substitute such very different words as "income" and "profits". If we could take it from the Chief Secretary that those words can normally be equated throughout the Bill, it would lead to some interesting consequences. I would not normally be bold enough to speak for my right hon. and hon. Friends, but they must be grateful to the Chief Secretary for the lesson which he has taught us that, under the heading of a drafting Amendment, almost anything is possible. I express my surprise and some disappointment that the Solicitor-General is not present to move a drafting Amendment, because that is normally his province.
§ Mr. Hirst
I agree with the general remarks of my hon. Friend the Member for Yeovil (Mr. Peyton) about the drafting. The same things as my hon. Friends have said have struck me forcibly. We want more explanation from the Chief Secretary.
I have done a little research on this matter and I find that the terms of what the hon. Gentleman calls this drafting Amendment appear also in Amendments No. 340, in Clause 52, page 64, line 34, and No. 610, in Clause 54, page 66, line 10. It gets curiouser and curiouser as we go on. We want to be assured of what is afoot. I do not pretend to know.
I know that in some European countries "income" and "profits" mean the same thing, but in the Bill the difference is significant. There is something extraordinarily subtle about this. I do not suggest that the Chief Secretary is withholding information from the Committee, but perhaps he has not been completely informed. In all my experience, I have never heard of so fundamental a change as this appears to be in several parts of the Bill being dismissed simply as a drafting Amendment to be taken by the Committee "on the nod".
§ Mr. Diamond
The task of those who pilot a Finance Bill through Committee is not the easiest task under the sun. I endeavour to deal shortly with a short point and at length with a more important point. I must, however, admit that this is the first time that I have engaged in this responsible duty. No doubt, I shall get better as the years go by.
The reason why I say that this is a drafting Amendment is that I have it on the best possible authority that it is purely a drafting Amendment—I repeat, "on the best possible authority", which everyone who has ever handled a brief will immediately appreciate. Let me, however, explain it in greater length to demonstrate that it is purely a drafting Amendment and that I was not attempting, as I am grateful to the Committee for accepting that I did not attempt, to deal with an Amendment of substance as if it were a drafting Amendment.
Under subsection (1), a company is chargeable to Corporation Tax on the whole of its profits. "Profits" is a comprehensive term which is earlier defined in Clause 42 to include not only ordinary income, but also chargeable capital gains. That is the first position. The closing lines of subsection (2) of the Clause do not refer to the word "profits" but refer to "income". It intends to refer to the same totality as previously and by error the word "income" crept in instead of "profits". So that instead of the word "income", there should be read at the end "profits". If that is substituted, the subsection would mean that any profits which the company receives as a trustee would not bear tax to the extent that the company has a beneficial interest therein.
It does not affect in the slightest the question of trusteeship or beneficial interest. That aspect is fully protected. All that the subsection states is that whereas we were always talking about profits, we shall continue to talk about them and "income" had crept in inadvertently.
§ Mr. Norman Cole (Bedfordshire, South)
While I would not make the slightest suggestion about the hon. Member's being other than completely open, does he not nevertheless realise that if "income", which originally appeared in the Clause, and which has a limited connotation, 2056 is now to be substituted by "profits", it is rather more than a drafting alteration?
§ Mr. Diamond
I cannot accept that it is more than a drafting alteration. The hon. Member interprets "income" entirely differently from the way I interpret it. This is a drafting Amendment to make the Clause read consistently. The Clause as amended will read consistently. Unamended, it does not read consistently.
§ Mr. Barber
I am sure that it is not the wish of the Committee that we should pursue this matter now that the Chief Secretary has explained it. There is, however, no question of anybody having any difference of opinion as to the meaning of "income" and "profits." The word "income" appears in the Bill and it specifically excludes chargeable gains. In other words, wherever "income" appears it means that there is no charge to Corporation Tax in respect of chargeable gains. This is the whole point of the later words of Clause 42. This is, therefore, a change of substance.
The Chief Secretary may say that this is only a small matter, but the whole of subsection (2) is concerned with profits arising under a partnership and also with profits arising to a company in a fiduciary capacity. It then goes on, however, to say that certain things shall happen in respect of those profits as regards its own beneficial interest in that income. If it means what it says—and it certainly says "income"—"income", for the reasons which I have just mentioned, excludes chargeable gains. I see the reason for the change and, no doubt, this is an error, but it is certainly more than an error of drafting because it brings into charge to Corporation Tax chargeable gains which would not be within the charge to Corporation Tax if the word "income" remained. This is the whole purpose of the change which the Chief Secretary is making.
The hon. Gentleman is doing something to which we have objected in the past. Where a company receives income in a fiduciary capacity, as regards its own beneficial interest it is now to be charged to Corporation Tax in respect of that capital gain and later, if a member of the company sells the shares, there will be another instance of double taxation. However, as the hon. Gentleman has 2057 now explained the purpose of the Amendment, although it is an Amendment which runs counter to what we have tried to do in the past, we have expressed our views sufficiently forcibly in the Division Lobby on the general principle and, therefore, I do not think that we need on this occasion press the Amendment to a Division.
§ Amendment agreed to.
§ Question proposed, That the Clause, as amended, stand part of the Bill.
§ 8.15 p.m.
§ Mr. A. P. Costain (Folkestone and Hythe)
There is one issue on this Clause to which I ask the Chief Secretary to give his attention. If my contention is right and we cannot get a satisfactory explanation, this is one of the biggest flaws in the whole of the Bill.
As I read the Clause, I would expect to find an appeal procedure incorporated in it. I have discussed this matter with many of my accountant friends and some of the leading accountants in the country agree with my view.
Subsection (7) sets out the procedure and says:Corporation tax shall be under the care and management of the Commissioners of Inland Revenue (in this Part of this Act referred to as 'the Board'), and the Board may do all such acts as may be deemed necessary and expedient for raising, collecting, receiving and accounting for the tax in the like manner as they are authorised to do with relation to any other duties under their care and management."—and it goes on, and this is the most important part, to say:and all enactments relating to the assessing, collecting, receiving and accounting for income tax, so far as they are consistent with the provisions of this Part of this Act, shall apply in like manner as nearly as may be in relation to corporation tax.Those words are of the greatest importance. The Committee will know that while the provisions of Income Tax relating to assessing, collecting, receiving and accounting are specifically made to apply to Corporation Tax, the assessing procedure is dealt with in the Income Tax Act, 1952, Chapter 2, and the Income Tax Management Act, 1964, while collecting and receiving procedures are dealt with in the Income Tax Act, 1952, Chapter 4, and the Income Tax Management Act, 1964, and the procedure for accounting for Income Tax is dealt with 2058 in the Fourth Schedule of the Income Tax Act, 1952, the procedure for appeal is prescribed in the Income Tax Act, 1952, Chapter III. However, that chapter is not made to apply to Corporation Tax, and that is the strength of my submission. I am fortified by the fact that specific provisions for appeal are made in that Ninth Schedule.
If a Bill of this sort, colossal as it is and unjust as it is, were to contain no provision for appeals against Corporation Tax, there would be no need to have anything else in the Bill at all, because the Inland Revenue could assess any company to any amount it liked, and even if it made the greatest howler on earth, there would be no legislation to put that right, and all the problems of the Government about the nationalisation of steel would be solved by the making of tax assessments.
I ask the Chief Secretary to give us a clear assurance that there is an appeal procedure and to tell us where it can be found.
§ Mr. Diamond
I can give a categorical assurance. It would be unthinkable for there to be no appeal procedure incorported in the Bill. The hon. Gentleman has drawn attention to the last four lines of the Clause:… all enactments relating to the assessing, collecting, receiving and accounting for income taxI am advised that those words clearly mean that the appeal procedure is imported into the Corporation Tax along with these others and that there is no question but that those words carry that meaning.
The hon. Gentleman has discussed this matter with, I think he said, his professional advisers and he said that it did not jump to their eyes that the appeal procedure was in the Bill. It is right that it should be clearly seen by everybody to be in the Bill and if the Committee would wish it, my right hon. Friend will consider with his advisers whether it is necessary on Report to add a short Amendment making it absolutely clear that there is such a procedure, so that it will be clear beyond doubt that there is an appeal procedure as for Income Tax purposes.
§ Sir John Hobson (Warwick and Leamington)
I am grateful to the hon. 2059 Gentleman for taking that attitude and I am sure that it will be welcomed. It is desirable to include a reference to appeals, because Chapter 2 of Part II of the 1952 Act deals with returns and assessments and Chapter 4 with assessments, while in between appeals are dealt with.
It is plain that whole chapters of the Income Tax Act, 1952, are referred to, but the one in between, which is the relevant one dealing with appeals, is not. While it may be true that a strict interpretation would regard appeals as being included, I would have thought that there could be no disadvantage and great advantages in preventing anybody from taking the point that there was no appeal procedure.
We are, therefore, very grateful for the attitude which the Chief Secretary has taken and we hope that when he reconsiders the matter he will find every reason for putting in and no reason for leaving out a provision concerning appeals.
§ Mr. Barber
I shall say no more about the appeal provisions, because I am sure in the light of what has been said that we shall see a suitable Amendment on Report. However, I have another issue to raise. It is an issue on which I do not expect an answer tonight, but which I would like the Chief Secretary to consider. This time it is purely a matter of drafting in subsection (2).
This deals with profits arising from a partnership. Taking the example of two companies operating in partnership and assuming that each is entitled to one half of the partnership profits and that the partnership profits amount to £10,000, then as the subsection says:profits … arising under any partnershipeach company would be liable to Corporation Tax on the full £10,000.
I appreciate that this is obviously not the intention, but the words run like this:A company shall be chargeable to corporation tax on profits … arising under any partnership"—and those are the total profits—in any case in which it"—that is, one of the partners—would be so chargeable if the profits accrued to it directly …All I am saying is that there seems to be—and I have consulted legal luminaries 2060 more eminent than I can ever hope to be—some doubt and it seems to arise from the fact that the wordsaccruing for its benefitdo not appear, at any rate at first sight, to govern the wordsarising under any partnership.All I am asking is that another look will be taken at the wording to see whether there is any duplication of charge.
I draw the attention of the Committee to the extraordinary powers given by subsection (7) to the Inland Revenue. We are here dealing with a new tax, the Corporation Tax and I think that the whole Committee will agree that it is, therefore, right that we should scrutinise with care the powers given to the Inland Revenue, even though they may be the same powers given in other taxes. When one is coming to a a new tax—and, after all, we are told by the Chancellor that he is one of the greatest tax reformers for the last 100 years—we must consider them with care.
I ask the hon. Gentleman why it is necessary to have the words in subsection (7):and the Board may do all such acts as may be deemed necessary"?Why cannot we simply have:do all such acts as are necessary"?Who is to do the deeming? Why does the Inland Revenue need all the powers given by the words:with relation to any other duties under their care and management"?Why should not the duties be limited to those concerned with Income Tax and Capital Gains Tax, which are the only two taxes relevant to the Corporation Tax?
The consequence of the subsection is that one has first to look through all the existing enactments concerned with Income Tax, the whole lot, which are forthe assessing, collecting, receiving and accounting for income taxto see whether there is anything inconsistent, and, finally, one has to equate the conclusion one has reached to the concluding words of the subsectionas nearly as may be".With a brand new tax and a reforming Chancellor that is going too far. It is all right with existing taxation, when there 2061 are similar words which have been considered and interpreted, but the hon. Gentleman could have done a little better on this occasion.
Quite apart from these matters, the whole Clause, as the side note says, is concerned specifically with the general scheme of the Corporation Tax. The Committee will be aware from what my right hon. Friend the Member for Bexley (Mr. Heath) and I said yesterday that our main complaint against the proposals
§ of the Chancellor is not against the Corporation Tax as such, but against the scheme which he has sought to introduce. We made this abundantly clear yesterday, and as the Clause is concerned with the scheme of the Corporation Tax it is only right that I should advise my right hon. and hon. Friends to vote against it.
§ Question put, That the Clause, as amended, stand part of the Bill:—
§ The Committee divided: Ayes 278, Noes 272.2065
|Division No. 169.]||AYES||[8.27 p.m.|
|Abse, Leo||Ensor, David||Jones, Dan (Burnley)|
|Albu, Austen||Evans, Albert (Islington, S.W.)||Jones,Rt.Hn.Sir Elwyn(W.Ham,S.)|
|Allaun, Frank (Salford, E.)||Evans, loan (Birmingham, Yardley)||Jones, J. Idwal (Wrexham)|
|Alldritt, Walter||Fernyhough, E.||Jones, T. W. (Merioneth)|
|Allen, Scholefield (Crewe)||Finch, Harold (Bedwellty)||Kelley, Richard|
|Armstrong, Ernest||Fitch, Alan (Wigan)||Kenyon, Clifford|
|Atkinson, Norman||Fletcher, Sir Eric (Islington, E.)||Kerr, Mrs. Anne (R'ter & Chatham)|
|Bacon, Miss Alice||Fletcher, Ted (Darlington)||Kerr, Dr. David (W'worth, Central)|
|Bagier, Gordon A. T.||Fletcher, Raymond (Ilkeston)||Lawson, George|
|Barnett, Joel||Floud, Bernard||Leadbitter, Ted|
|Baxter, William||Foley, Maurice||Ledger, Ron|
|Beaney, Alan||Foot, Sir Dingle (Ipswich)||Lee, Rt. Hn. Frederick (Newton)|
|Bence, Cyril||Foot, Michael (Ebbw Vale)||Lee, Miss Jennie (Cannock)|
|Benn, Rt. Hn. Anthony Wedgwood||Ford, Ben||Lever, Harold (Cheetham)|
|Bennett, J. (Glasgow, Bridgeton)||Freeson, Reginald||Lewis, Arthur (West Ham, N.)|
|Binns, John||Galpern, Sir Myer||Lewis, Ron (Carlisle)|
|Bishop, E. S.||Garrett, W. E.||Lipton, Marcus|
|Blackburn, F.||Garrow, A.||Lomas, Kenneth|
|Blenkinsop, Arthur||Ginsburg, David||Loughlin, Charles|
|Boardman, H.||Gourlay, Harry||Mabon, Dr. J. Dickson|
|Boston, T. G.||Greenwood, Rt. Hn. Anthony||McCann, J.|
|Bowden, Rt. Hn. H. W. (Leics S.W.)||Gregory, Arnold||MacColl, James|
|Boyden, James||Griffiths, David (Rother Valley)||MacDermot, Niall|
|Braddock, Mrs. E. M.||Griffiffiths, Rt. Hn. James (Lianelly)||McGuire, Michael|
|Bradley, Tom||Griffiths, Will (M'chester, Exchange)||McInnes, James|
|Bray, Dr. Jeremy||Gunter, Rt. Hn. R. J.||McKay, Mrs. Margaret|
|Broughton, Dr. A. D. D.||Hale, Leslie||Mackenzie, Gregor (Rutherglen)|
|Brown, Hugh D. (Glasgow, Provan)||Hamilton, James (Bothwell)||Mackie, John (Enfield, E.)|
|Buchanan, Richard||Hamilton, William (West Fife)||McLeavy, Frank|
|Butler, Herbert (Hackney, C.)||Hamling, William (Woolwich, W.)||MacPherson, Malcolm|
|Butler, Mrs. Joyce (Wood Green)||Harper, Joseph||Mahon, Peter (Preston, S.)|
|Carmichael, Neil||Harrison, Walter (Wakefield)||Mahon, Simon (Bootle)|
|Carter-Jones, Lewis||Hart, Mrs. Judith||Mallalieu, E. L. (Brigg)|
|Castle, Rt. Hn. Barbara||Hattersley, Roy||Mallalieu,J.P.W.(Huddersfield,E.)|
|Chapman, Donald||Hazell, Bert||Mapp, Charles|
|Coleman, Donald||Healey, Rt. Hn. Denis||Mason, Roy|
|Conlan, Bernard||Henderson, Rt. Hn. Arthur||Mayhew, Christopher|
|Corbet, Mrs. Freda||Herbison, Rt. Hn. Margaret||Mellish, Robert|
|Cousins, Rt. Hn. Frank||Hill, J. (Midlothian)||Mendelson, J. J.|
|Craddock, George (Bradford, S.)||Hobden, Dennis (Brighton, K'town)||Mikardo, Ian|
|Crawshaw, Richard||Holman, Percy||Millan, Bruce|
|Cronin, John||Horner, John||Miller, Dr. M. S.|
|Crosland, Rt. Hn. Anthony||Houghton, Rt. Hn. Douglas||Milne, Edward (Blyth)|
|Crossman, Rt. Hn. R. H. S.||Howarth, Harry (Wellingborough)||Molloy, William|
|Cullen, Mrs. Alice||Howarth, Robert L. (Bolton, E.)||Monslow, Walter|
|Dalyell, Tam||Howell, Denis (Small Heath)||Morris, Alfred (Wythennshawe)|
|Darling, George||Howie, W.||Morris, Charles (Openshaw)|
|Davies, G. Elfed (Rhondda, E.)||Hoy, James||Morris, John (Aberavon)|
|Davies, Harold (Leek)||Hughes, Cledwyn (Anglesey)||Mulley,Rt.Hn.Frederlck(SheffieldPk)|
|Davies, Ifor (Gower)||Hughes, Emrys (S. Ayrshire)||Murray, Albert|
|Delargy, Hugh||Hughes, Hector (Aberdeen, N.)||Neal, Harold|
|Dell, Edmund||Hunter, Adam (Dunfermline)||Newens, Stan|
|Dempsey, James||Hunter, A. E. (Feltham)||Noel-Baker, Francis (Swindon)|
|Diamond, John||Hynd, H. (Accrington)||Noel-Baker,Rt.Hn.Phillp(Derby,S.)|
|Dodds, Norman||Irvine, A. J. (Edge Hill)||Norwood, Christopher|
|Doig, Peter||Irving, Sydney (Dartford)||Oakes, Gordon|
|Donnelly, Desmond||Jackson, Colin||Ogden, Eric|
|Driberg, Tom||Jay, Rt. Hn. Douglas||Oram, Albert E. (E. Ham, S.)|
|Duffy, Dr. A. E. P.||Jeger, George (Goole)||Orbach, Maurice|
|Dunn, James A.||Jeger,Mrs.Lena(H'b'n&St.P'cras,S.)||Orme, Stanley|
|Dunnett, Jack||Jenkins, Hugh (Putney)||Owen, Will|
|Edwards, Rt. Hn. Ness (Caerphilly)||Jenkins, Rt. Hn. Roy (Stechford)||Padley, Walter|
|English, Michael||Johnson, Carol (Lewisham, S.)||Page, Derek (King's Lynn)|
|Ennals, David||Johnson,James(K'ston-on-Hull,W.)||Paget, R. T.|
|Palmer, Arthur||Rowland, Christopher||Urwin, T. W.|
|Pannell, Rt. Hn. Charles||Sheldon, Robert||Varley, Erie G.|
|Parglter, G. A.||Shinwell, Rt. Hn. E.||Wainwright, Edwin|
|Park, Trevor (Derbyshire, S.E.)||Shore, Peter (Stepney)||Walden, Brian (All Saints)|
|Parker, John||Short,Rt.Hn.E.(N'c'tle-on-Tyne,C.)||Walker, Harold (Doncaster)|
|Parkin, B. T.||Silkin, John (Deptford)||Wallace, George|
|Pavitt, Laurence||Silkin, S. C. (Camberwell, Dulwich)||Warbey, William|
|Pearson, Arthur (Pontypridd)||Silverman, Julius (Aston)||Watkins, Tudor|
|Peart, Rt. Hn. Fred||Skeffington, Arthur||Weitzman, David|
|Pentland, Norman||Slater, Mrs. Harriet (Stoke, N.)||Wells, William (Walsall, N.)|
|Perry, Ernest G.||Slater, Joseph (Sedgefield)||White, Mrs. Eirene|
|Popplewell, Ernest||Small, William||Whitlock, William|
|Prentice, R. E.||Smith, Ellis (Stoke, S.)||Wigg, Rt. Hn. George|
|Price, J. T. (Westhoughton)||Solomons, Henry||Wilkins, W. A.|
|Probert, Arthur||Soskice, Rt. Hn. Sir Frank||Willey, Rt. Hn. Frederick|
|Pursey, Cmdr. Harry||Stonehouse, John||Williams, Alan (Swansea, W.)|
|Randall, Harry||Stones, William||Williams, Clifford (Abertillery)|
|Rankin, John||Strauss, Rt. Hn. G. R. (Vauxhall)||Williams, Mrs. Shirley (Hitchin)|
|Redhead, Edward||Summerskill, Hn. Dr. Shirley||Williams, W. T. (Warrington)|
|Rees, Merlyn||Swain, Thomas||Willis, George (Edinburgh, E.)|
|Reynolds, G. W.||Swingler, Stephen||Wilson, Rt. Hn. Harold (Huyton)|
|Rhodes, Geoffrey||Symonds, J. B.||Wilson, William (Coventry, S.)|
|Richard, Ivor||Taylor, Bernard (Mansfield)||Winterbottom, R. E.|
|Roberts, Albert (Normanton)||Thomas, George (Cardiff, W.)||Woodburn, Rt. Hn. A.|
|Roberts, Goronwy (Caernarvon)||Thomas, lorwerth (Rhondda, W.)||Woof, Robert|
|Robertson, John (Paisley)||Thomson, George (Dundee, E.)||Wyatt, Woodrow|
|Rodgers, William (Stockton)||Thornton, Ernest|
|Rogers, George (Kensington, N.)||Tinn, James||TELLERS FOR THE AYES:|
|Rose, Paul B.||Tomney, Frank||Mr. O'Malley and Mr. Grey.|
|Ross, Rt. Hn. William||Tuck, Raphael|
|Agnew, Commander Sir Peter||Cooper, A. E.||Grimond, Rt. Hn. J.|
|Alison, Michael (Barkston Ash)||Cooper-Key, Sir Neill||Gurden, Harold|
|Allan, Robert (Paddington, S.)||Cordie, John||Hall, John (Wycombe)|
|Allason, James (Hemel Hempstead)||Corfield, F. V.||Hall-Davis, A. G. F.|
|Anstruther-Gray, Rt. Hn. Sir W.||Costain, A. P.||Hamilton, Marquess of (Fermanagh)|
|Astor, John||Courtney, Cdr. Anthony||Hamilton, M. (Salisbury)|
|Awdry, Daniel||Craddock, Sir Beresford (Spelthorne)||Harris, Frederic (Croydon, N.W.)|
|Baker, W. H. K.||Crawley, Aidan||Harris, Reader (Heston)|
|Balniel, Lord||Crosthwaite-Eyre, Col. Sir Oliver||Harrison, Brian (Maidon)|
|Barber, Rt. Hn. Anthony||Crowder, F. P.||Harrison, Col. Sir Harwood (Eye)|
|Barlow, Sir John||Cunningham, Sir Knox||Harvey, Sir Arthur Vere (Macclesf'd)|
|Batsford, Brian||Curran, Charles||Harvey, John (Walthamstow, E.)|
|Bennett, Sir Frederic (Torquay)||Currie, G. B. H.||Harvie Anderson, Miss|
|Bennett, Dr. Reginald (Gos & Fhm)||Dalkeith, Earl of||Hastings, Stephen|
|Berry, Hn. Anthony||Dance, James||Hawkins, Paul|
|Bessell, Peter||Davies, Dr. Wyndham (Perry Barr)||Hay, John|
|Biffen, John||Dean, Paul||Heald, Rt. Hn. Sir Lionel|
|Biggs-Davison, John||Deedes, Rt. Hn. W. F.||Heath, Rt. Hn. Edward|
|Bingham, R. M.||Digby, Simon Wingfield||Hendry, Forbes|
|Birch, Rt. Hn. Nigel||Doughty, Charles||Higgins, Terence L.|
|Black, Sir Cyril||Douglas-Home, Rt. Hn. Sir Alec||Hiley, Joseph|
|Blaker, Peter||Drayson, G. B.||Hill, J. E. B. (S. Norfolk)|
|Bossom, Hn. Clive||du Cann, Rt. Hn. Edward||Hirst, Geoffrey|
|Bowen, Roderic (Cardigan)||Eden, Sir John||Hobson, Rt. Hn. Sir John|
|Box, Donald||Elliot, Capt. Walter (Carshalton)||Hogg, Rt. Hn. Quintin|
|Boyd-Carpenter, Rt. Hn. J.||Elliott, R. W.(N'c'tle-upon-Tyne,N.)||Hopkins, Alan|
|Boyle, Rt. Hn. Sir Edward||Eyre, Reginald||Hordern, Peter|
|Braine, Bernard||Farr, John||Hornby, Richard|
|Brewis, John||Fell, Anthony||Howard, Hn. G. R. (St. Ives)|
|Brinton, Sir Tatton||Fisher, Nigel||Howe, Geoffrey (Bebington)|
|Bromley-Davenport,Lt.-Col.Sir Walter||Fletcher-Cooke, Charles (Darwen)||Hunt, John (Bromley)|
|Brooke, Rt. Hn. Henry||Fletcher-Cooke, Sir John (S'pton)||Iremonger, T. L.|
|Brown, Sir Edward (Bath)||Foster, Sir John||Irvine, Bryant Godman (Rye)|
|Bryan, Paul||Galbraith, Hn. T. G. D.||Jenkin, Patrick (Woodford)|
|Buchanan-Smith, Alick||Gammans, Lady||Jennings, J. C.|
|Buck, Antony||Gardner, Edward||Johnson Smith, G. (East Grinstead)|
|Bullus, Sir Eric||Gibson-Watt, David||Johnston, Russell (Inverness)|
|Burden, F. A.||Giles, Rear-Admiral Morgan||Jones, Arthur (Northants, S.)|
|Butcher, Sir Herbert||Gilmour, Ian (Norfolk, Central)||Jopling, Michael|
|Buxton, Ronald||Gilmour, Sir John (East Fife)||Joseph, Rt. Hn. Sir Keith|
|Campbell, Gordon||Glover, Sir Douglas||Kaberry, Sir Donald|
|Carlisle, Mark||Glyn, Sir Richard||Kerby, Capt. Henry|
|Carr, Rt. Hn. Robert||Goodhart, Philip||Kerr, Sir Hamilton (Cambridge)|
|Cary, Sir Robert||Goodhew, Victor||Kilfedder, James A.|
|Chataway, Christopher||Gower, Raymond||Kimball, Marcus|
|Chichester-Clarn, R.||Grant, Anthony||King, Evelyn (Dorset, S.)|
|Clark, Henry (Antrim, N.)||Grant-Ferris, R.||Kirk, Peter|
|Clark, William (Nottingham, S.)||Gresham Cooke, R.||Lagden, Godfrey|
|Clarke, Brig. Terence (Portsmth, W.)||Grieve, Percy||Lambton, Viscount|
|Cole, Norman||Griffiths, Eldon (Bury St. Edmunds)||Lancaster, Col. C. G.|
|Cooke, Robert||Griffiths, Peter (Smethwick)||Langford-Holt, Sir John|
|Lewis, Kenneth (Rutland)||Orr. Capt. L. P. S.||Talbot, John E.|
|Litchfield, Capt. John||Orr-Ewing, Sir Ian||Taylor, Sir Charles (Eastbourne)|
|Lloyd,Rt.Hn.Geoffrey(Sut'nC'dfield)||Osborn, John (Hallam)||Taylor, Edward M, (G'gow,Cathcart)|
|Lloyd, Ian (P'tsm'th, Langstone)||Osborne, Sir Cyril (Louth)||Taylor, Frank (Moss Side)|
|Longbottom, Charles||Page, John (Harrow, W.)||Teeling, Sir William|
|Longden, Gilbert||Page, R. Graham (Crosby)||Temple, John M.|
|Loveys, Walter H.||Pearson, Sir Frank (Clitheroe)||Thatcher, Mrs. Margaret|
|Lubbock, Eric||Percival, Ian||Thomas, Sir Leslie (Canterbury)|
|Lucas, Sir Jocelyn||Peyton, John||Thomas, Rt. Hn. Peter (Conway)|
|McAdden, Sir Stephen||Pickthorn, Rt. Hn. Sir Kenneth||Thompson, Sir Richard (Croydon,S.)|
|MacArthur, Ian||Pike, Miss Mervyn||Thorneycroft, Rt. Hn. Peter|
|Mackenzie, Alasdair (Ross&Crom'ty)||Pitt, Dame Edith||Thorpe, Jeremy|
|Maclean, Sir Fitzroy||Powell, Rt. Hn. J. Enoch||Tiley, Arthur (Bradford, W.)|
|McMaster, Stanley||Price, David (Eastleigh)||Tilney, John (Wavertree)|
|McNair-Wilson, Patrick||Prior, J. M. L.||Turton, Rt. Hn. R. H.|
|Maginnis, John E.||Quennell, Miss J. M.||Tweedsmuir, Lady|
|Maitland, Sir John||Ramsden, Rt. Hn. James||van Straubenzee, W. R.|
|Marples, Rt. Hn. Ernest||Redmayne, Rt. Hn. Sir Martin||Vaughan-Morgan, Rt. Hn. Sir John|
|Marten, Neil||Rees-Davies, W. R.||Vickers, Dame Joan|
|Maude, Angus||Renton, Rt. Hn. Sir David||Walder, David (High Peak)|
|Mawby, Ray||Ridsdale, Julian||Walker, Peter (Worcester)|
|Maxwell-Hyslop, R. J.||Roberts, Sir Peter (Heeley)||Walker-Smith, Rt. Hn. Sir Derek|
|Maydon, Lt.-Cmdr. S. L. C.||Robson Brown, Sir William||Walters, Dennis|
|Meyer, Sir Anthony||Rodgers, Sir John (Sevenoaks)||Ward, Dame Irene|
|Mills, Peter (Torrington)||Roots, William||Weatherill, Bernard|
|Mills, Stratton (Belfast, N.)||Royle, Anthony||Wells, John (Maidstone)|
|Miscampbell, Norman||Russell, Sir Ronald||Whitelaw, William|
|Mitchell, David||St. John-stevas, Norman||Williams, Sir Rolf Dudley (Exeter)|
|Monro, Hector||Scott-Hopkins, James||Wills, Sir Gerald (Bridgwater)|
|More, Jasper||Sharples, Richard||Wilson, Geoffrey (Truro)|
|Morgan, W. G.||Shepherd, William||Wise, A. R.|
|Morrison, Charles (Devizes)||Sinclair, Sir George||Wolrige-Gordon, Patrick|
|Mott-Radclyffe, Sir Charles||Smith, Dudley (Br'ntf'd & Chiswick)||Wood, Rt. Hn. Richard|
|Munro-Lucas-Tooth, Sir Hugh||Smyth, Rt. Hn. Brig. Sir John||Woodhouse, Hon. Christopher|
|Murton, Oscar||Spearman, Sir Alexander||Woodnutt, Mark|
|Neave, Airey||Speir, Sir Rupert||Wylie, N. R.|
|Nicholls, Sir Harmar||Stainton, Keith||Younger, Hn. George|
|Nicholson, Sir Godfrey||Stanley, Hn. Richard|
|Noble, Rt. Hn. Michael||Stodart, Anthony||TELLERS FOR THE NOES:|
|Nugent, Rt. Hn. Sir Richard||Stoddart-Scott, Col. Sir Malcolm||Mr. McLaren and Mr. Pym.|
|Onslow, Cranley||Studholme, Sir Henry|