§ Mr. Denzil DaviesI beg to move Amendment No. 37, in page 21, leave out lines 7 and 8.
§ Mr. DaviesAmendment No. 37 is a drafting amendment to correct a technical flaw. The point we raised by the hon. Member for Guildford (Mr. Howell). He said that there seemed to be a danger that certain words in Clause 36(4)(b) might negative the intention of the clause as a whole by removing a considerable range of assets from its scope. I said that it was not the intention to remove those assets from its scope. The hon. Gentleman was right. The clause may be read as having that effect. However, that was not the intention. Amendments Nos. 37 and 38 put the points right. I am grateful to the hon. Gentleman for raising the point.
§ Amendment agreed to.
§
Amendment made: No. 38, in page 21, line 10, at end insert:
'(c) expenditure in respect of which an allowance or allowances have been made in accordance with section 21 of the said Act of 1968 (alternative method of calculating writing-down allowances);'.—[Mr. Denzil Davies.]
§ Mr. Denzil DaviesI beg to move Amendment No. 39, in page 21, line 15, at end insert—
'(d) expenditure to which the person by whom it was incurred elects that subsection (1) above shall not apply.(5) Any election under subsection (4)(d) above shall be made by notice in writing to the inspector given within two years from the end of the first new chargeable period of the person concerned.'.12.30 a.m.This amendment gives the taxpayer the opportunity to choose whether or not to adopt the simplified system of dealing with capital allowances for expenditure incurred before 27th October 1970 by providing an election to be excluded in whole or in part from the effects of the clause.
This point was raised in Committee by the hon. Member for Hertfordshire, South (Mr. Parkinson). I undertook to look at the point and, if practicable, to include an option. It has proved to be practicable. This amendment fulfils the commitment that was made in Committee.
§ Amendment agreed to.