HC Deb 31 May 1965 vol 713 cc1341-2
The Solicitor-General (Sir Dingle Foot)

I beg to move Amendment No. 411, in page 40, line 39, at the end to insert: (2) Any arrangements set out in an order made under the said section 347 either before the passing of this Act, or, in the case of an order of which a draft was laid before the House of Commons before the passing of this Act, made after the passing of this Act, shall so far as they provide (in whatever terms) for relief from tax chargeable in the United Kingdom on capital gains have effect in relation to capital gains tax. I can commend the Amendment to the Committee in a very few words. It is entirely uncontroversial. The purpose of the Clause is to provide relief against double taxation in respect of capital gains in the same way as we provide it under various agreements with other countries in respect of other forms of income.

As the Clause is drafted, it only enables the Government to enter into future agreements applicable to the Capital Gains Tax, but there are a number of existing agreements which define the right of each party to the agreement to tax capital gains. Since those provisions exist, it is clearly desirable that any relevant provisions in these agreements ought now to apply to the proposed Capital Gains Tax. I do not think that the Committee will wish me to elaborate this topic. I submit that this is obviously desirable, and I ask the Committee to accept the Amendment.

Amendment agreed to.

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

Mr. John Hall (Wycombe)

On a point of elucidation, may we take it that under the Clause relief will be given in respect of foreign taxes chargeable on a capital gain, including local income tax chargeable thereon?

The Solicitor-General

I think that I can give the hon. Gentleman that assurance.

Question put and agreed to.

Clause, as amended, ordered to stand part of the Bill.