§ 15. Mr. Bruce-Gardyneasked the Chancellor of the Exchequer if he will seek to repeal the close company provisions of the Finance Act, 1965.
§ Mr. Patrick JenkinWe are reviewing the treatment of close companies as part 231 of our general review of company taxation.
§ Mr. Bruce-GardyneThat is welcome news. Can my hon. Friend assure the House that in this review the Government will bear in mind not only the generally inequitable impact of the last Government's taxation of family companies but also the disastrous effect which this sort of penal taxation on family companies has had, for instance, in Scotland, where one family company after another has been driven by taxation to merge into larger groups based in the South which have then all too often closed down their activities in Scotland?
§ Mr. JenkinI can assure my hon. Friend that we have these factors very much in mind.