§ Mr. NottThe purpose of this rather complicated series of amendments is to deal with problems which some close companies are facing on the transition from the old system of corporation tax to the new imputation system. They arise because profits which were earned while the old system was in force may be passed on to shareholders by way of dividend under the new imputation system. Difficulties can also arise directly out of the transitional provisions in last year's Finance Act dealing with the setting off of advance corporation tax against corporation tax.
We have placed an explanatory note about the amendments in the Library. I shall be happy to send special copies bearing a Treasury crest if hon. Members would wish to receive them tomorrow morning.
§ Amendment agreed to.
§ Amendment made: No. 10, in page 13, line 47, leave out ' Schedule ' and insert:
§ 'Part of that Schedule, and the transitional provisions in Part II of that Schedule shall have effect with respect to accounting periods of close companies beginning before 6th April 1973'.—[Mr. Nott.]