§ 13. Mr. Hugh Jenkinsasked the Chancellor of the Exchequer whether he is 1275 aware that in recent and proposed industrial mergers capital gains of several million pounds sterling have been and will be made by individual shareholders; and, in those cases where the shares have been transferred to Bermuda or the persons to Switzerland, if he will take steps to ensure that taxation is not avoided.
§ Mr. DiamondI am aware that substantial gains may be made as a result of industrial mergers. Tax avoidance schemes in this field, as in others, are kept under review, and amending legislation will be introduced if required.
§ Mr. JenkinsIn the case which I have in mind, is it not a fact that Dr. McDonald would have made a £7 million capital gain if the Plessey-B.S.R. merger had gone through, and, as Dr. McDonald has transferred his shares to Bermuda and himself to Switzerland, will my right hon. Friend say whether in such circumstances he would be able to levy capital gains tax?
§ Mr. DiamondMy hon. Friend knows that I am unable to deal with the affairs of any individual taxpayer.