HC Deb 07 July 1971 vol 820 cc1447-8
Mr. Higgins

I beg to move Amendment No. 129, in page 119, column 3, leave out line 35 and insert: '"and section 166(1)" to "1970" and the word "together".'

This Amendment corrects an error in the repeals consequential on the abolition of the short-term gains tax (Case VII). As the law stands, an individual's gift of a chargeable asset with a value not exceeding £100 is ignored for capital gains tax and Case VII; but the £100 is an aggregate limit for all the gifts made by the individual in the year.

In view of the abolition of Case VII, the reference to that tax in the relevant provision needs to be repealed; but the Bill as it stands goes further than this and repeals the words which ensure that for capital gains tax the £100 limit applies to the aggregate gifts in the year. The result would be then an individual could make an unlimited number of tax-free gifts of £100 each—that is to say, he could give away a large holding in small parcels. The Amendment corrects this.

Amendment agreed to.

Amendment made: No. 81, in page 122, line 19, column 3, at beginning insert 'Section 42(3)'.—[Mr. Higgins.]

Mr. Higgins

I beg to move Amendment No. 70, in page 126, line 11, at end insert:

1965 c. 25. The Finance Act 1965. In section 33, in subsection (1) the words 'one and the same one, of;"; and subsection (4).
I think that it will be convenient to take this Amendment together with Amendment No. 72.

These are consequential Amendments on the inclusion in Committee of a new Clause to relax certain of the conditions in the capital gains tax "roll-over" relief for the replacement of business assets. The relaxations are affected by repealing certain words in the existing provision, and the Amendments add these repeals to the Repeals Schedule of the Bill. The Clause itself appears in the Bill, as amended in Committee, as Clause 23.

Amendment agreed to.

Amendments made: No. 108, in page 126, column 3, leave out lines 32 and 33.

No. 71, in page 126, column 3, line 35, at end insert: 'In section 498(4) the words "to the Commonwealth territories and", In section 500(1) the definition of "Commonwealth territory". In section 507, subsections (2) and (3).

'No. 72, in page 126, line 44, at end insert: 2. The repeals in section 33 of the Finance Act 1965 have effect with respect to acquisitions on or after 20th April 1971.—[Mr. Higgins.]

8.54 p.m.

Mr. Maurice Macmillan

Before we come on to Third Reading, Mr. Deputy Speaker, may I move the following verbal Amendments?

Mr. Deputy Speaker (Sir Robert Grant-Ferris) indicated assent.

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