HC Deb 07 July 1971 vol 820 cc1428-9
Mr. Patrick Jenkin

I beg to move Amendment No. 48, in page 38, line 21, leave out from beginning to 'period' in line 23 and insert:

  1. '(a) belongs to him at some time in the chargeable period or its basis period, and
  2. (b) is in that period, or has at any previous time been, in use for the purposes of the trade, and
  3. (c) in that'.
Perhaps it will be convenient to discuss at the same time the related points in Amendment No. 49.

The Amendments are moved to correct a number of minor errors in drafting, and they deal with the "disposal value" of machinery and plant which ceases to be used in the taxpayer's trade.

Amendment No. 48 covers the point where an asset can be taken out of use in one year with the intention that it should come back into use later. In fact, if it never comes back into use and is then sold, as the Bill stands, it would come into the pool, since it was not in use at the time of the disposal. Clearly, it should do, and the Amendment puts the position right.

Amendment No. 49 makes it clear that disposal value has to be brought in only when the asset permanently ceases to be used. As the Clause stands, it implies that disposal value should be brought in on a temporary cessation of use. That was not our intention, and again the Amendment puts the position right.

Amendment agreed to.

Amendment made: No. 49, in line 25, leave out 'ceases (whether because of the permanent' and insert: 'permanently ceases (whether because of the '.—[Mr. Patrick Jenkin.]

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