Motion made, and Question proposed,
That charges to income tax under Case VII of Schedule D and to tax in respect of chargeable gains, including charges in respect of past acquisitions or disposals of assets, may be imposed by provisions relating to the apportionment of the cost of acquisition of any asset, including any new holding of shares or securities resulting from a reorganisation or reduction of a company's share capital or a conversion or exchange of securities.—[Mr. Callaghan.]
§ 1.10 a.m.
§ Mr. Iain Macleod (Enfield, West)
At any other time I would ask the Chancellor for something more than that uninformative nod. If I did tonight, I am not sure that I should get a lucid answer.
To save my having to explain his own Motion to him, would he agree that it has had to be put on the Order Paper because the Government have had second and wiser thoughts and that, otherwise, we should be discussing some Amendments that are out of date? If that is so, we have no objection and welcome the Motion.
§ The Financial Secretary to the Treasury (Mr. Niall MacDermot)
The purpose of it is to lay the foundation for some official Amendments and meet a point to which some Opposition Amendments are directed, dealing with the simplification of the Capital Gains Tax code in consequence of the reconstruction or reorganisation of a company's share capital. The Amendments cover the law in respect of both the Capital Gains Tax and also Case VII of Schedule D, in the case of short-term capital gains.
§ Question put and agreed to.
§ Resolution to be reported.
§ Report to be received this day; Committee to sit again this day.