§ Mr. DiamondI beg to move, Amendment 97, in page 25, line 6, at the end to insert:
'and in applying this definition to a chargeable period of a company "losses" means losses computed without regard to capital allowances'.It might be convenient to take at the same time Amendment No. 98, as the two go together. They are drafting Amendments designed to ensure that losses incurred by a company in the years prior to the year of claim are all calculated on the same basis. This is such an eminently reasonable proposition that I hope that I need not detain the Committee further with it.
§ Amendment agreed to.
1218§ Further Amendment made: In page 25, line 25, leave out from 'company' to end of line 26.—[Mr. Diamond.]
§ Mr. DiamondI beg to move Amendment No. 99, in page 26, line 9, after 'and', to insert:
'accordingly relief from income tax or from corporation tax may be restricted under this section by reference to losses some of which are incurred in years of assessment and some, computed without regard to capital allowances, are incurred in a company's chargeable periods'.This again is a drafting Amendment. It is designed to correct a possible doubt about the interpretation of the Clause. It is designed to meet the case where a hobby farmer has operated through a company for part of the five years in question—part of the five years before the year of claim—and in partnership or on his own account for the other part of the five years. It deals with the difficulty, and without it there would have been some doubt as to the manner in which the accounts should be prepared and the figures calculated in those varying situations.
§ Amendment agreed to.
§ Clause, as amended, ordered to stand part of the Bill.