HC Deb 15 June 1965 vol 714 cc404-6

Question proposed, That the Clause stand part of the Bill.

Mr. William Clark

There is another matter which I should like the Minister to consider. Subsection (2) states that For the purposes of corporation tax the right to an allowance … shall be determined … by applying the law in force for the year of assessment in which the accounting period ends". This could give rise to a ludicrous position for a company if its year ends on, say, 6th April. Suppose that a company's year ends on 6th April, 1966. The year of assessment in which it falls is the year 1966/67. It may be that in the 1966 Budget, legislation will be brought forward which is operative in the year 1966/67. If the event that is spoken of in subsection (2) took place in 1965/66, this could lead to retrospective legislation. This, again, is a technical point. It depends upon the date on which a company's year ends.

I suggest that instead of providing that the criterion is to be the law in force for t he year of assessment, the criterion should he the law in force when the event occurred. This would restore the position that the event which it is sought to catch under the Clause would be governed by the law in force when the event took place. By the wording of the Clause, retrospective legislation is possible, particularly when a company's year ends on 6th April or later. I wonder whether the Minister would be kind enough to consider this matter and give a reply on Report rather than write to me.

Mr. Diamond

The hon. Gentleman has expressed his doubts with his usual clarity and lucidity, and it is only my own lack of immediate comprehension which prevents me from giving him an immediate answer, and encourages me to say that the better course would be to read carefully in HANSARD what he has said. I do not think that there is a difficulty; but if there is, I shall look at it very carefully and either, as he asked, write to him, or else introduce an Amendment on Report. If there is nothing to introduce on Report, I think that it would be courteous to write to the hon. Gentleman explaining why that is so.

Question put and agreed to.

Clause ordered to stand part of the Bill.

Mr. Diamond

It is my pleasant duty to move, That the Chairman do report Progress and ask leave to sit again. This is a very suitable hour at which to retire, having regard to the fact that we all want to be very fresh for the somewhat extensive labours which face us tomorrow, and which, I am sure, we shall get through all the more quickly if we retire at an early hour tonight. We have made rapid progress since we got over the major series of Amendments which, naturally, called forth a great deal of interesting discussion, and I hope, there- fore, that this Motion will be accepted by the Committee.

Mr. Heath

I find myself in agreement with the right hon. Gentleman in the happy approach that he has made to the Committee. We have added another nine Clauses to the Bill, although, as we realise, we started the Committee stage today an hour late. I think that the Committee can feel that we have made good progress in dealing with the Bill, and I support the Motion.

Question put and agreed to.

Committee report Progress; to sit again Tomorrow.