HC Deb 10 July 1973 vol 859 cc1457-8

12.45 a.m.

Mr. Patrick Jenkin

I beg to move Amendment No. 36, in page 23, leave out lines 38 to 42 and insert: (3) In subsection (2) above "relevant accounting period of the partnership" means any accounting period of the partnership ending on or after 6th March 1973 in which any such arrangements as are specified in subsection (1) above are in existence or to which any such arrangements apply; but, in relation to any such accounting period which begins before that date, any reference in subsection (2) above the company's share in the profits or loss of the accounting period or in any such charges on income as are referred to in subsection (2)(a) above shall be construed as a reference to such proportion only of that share as the part of that period beginning on 6th March 1973 bears to the whole of that period'.

Mr. Deputy Speaker

With this it will be convenient to take Government Amendments Nos. 37 and 38.

Mr. Jenkin

Amendment No. 36 corrects a drafting defect in that Clause 31 by an oversight did not contain a starting date. The amendment is designed to repair that omission. Amendments Nos. 37 and 38 meet points raised in Committee by my hon. Friend the Member for Cirencester and Tewkesbury (Mr. Ridley) and my hon. and learned Friend the Member for Dover (Mr. Peter Rees). It is necessary to extend the protection given to capital allowances on expenditure under artificial contracts from the effects of the more restrictive rules now being introduced for group relief and similar relief in partnerships involving companies. I hope that these amendments will be acceptable.

Amendment agreed to.

Amendment made: No. 37, in page 24, line 23, leave out from 1968 ' to end of line 24 and insert: 'or, as the case may require, Chapter I of Part III of the Finance Act 1971, in respect of expenditure incurred by the partnership on the provision of machinery or plant'.—[Mr. Patrick Jenkin.)

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