HC Deb 19 March 1968 vol 761 cc288-9

I propose three amendments to the Corporation Tax provisions of the 1965 Finance Act. First, there has been an increase in the practice whereby companies offer shareholders the option of taking either a cash dividend or scrip in lieu. This is a device designed to avoid liability to Income Tax and Surtax. I propose that, where such an option is offered, the liability of the shareholder will in all cases be calculated as if he had taken the cash dividend. The other two are minor amendments. One concerns partnerships between individuals and companies, and the other concerns overseas life assurance companies selling annuities through branches in this country. In both instances, the original provisions fail to give full effect to their obvious intention, and could give relief for which there is no possible justification. These defects will be corrected.