HC Deb 24 June 1976 vol 913 cc1880-1

6.30 p.m.

Mr. Denzil Davies

I beg to move Amendment No. 77, in page 42, line 29, leave out from 'is' to end of line 30 and insert: 'neither—

  1. (i) a deemed disposal, nor
  2. (ii) if the relevant interest is a lease, a disposal which forms part of a transaction by which one lease is surrendered and a new lease is granted of the whole or substantially the whole, of the land in which the relevant interest subsisted

Mr. Speaker

With this amendment it may be convenient to take Government Amendment No. 79.

Mr. Davies

These amendments deal with charities. Under the Bill as originally drawn the sale and leaseback concession was not given to charities, nor would it be appropriate for them. But the possibility of the surrender of a lease triggering a charge to tax was raised in Committee. The amendment covers surrender and the grant of a new lease, so that the new lease itself will become the relevant interest for the future and subject to the rules regarding deferred liability; so the trigger does not operate in respect of surrender of the lease. This question was discussed in Committee and these two amendments are in response to remarks made by the right hon. Gentleman.

Mr. Graham Page

As the Government insist on taxing charities and on this imposition of DLT, any small relief is welcome. This clause is a small relief, and a very right and proper one as the clause is at present drawn, though we could wish that charities were not taxed at all under the Bill.

Amendment agreed to.

Amendment made: No. 79, in page 43, line 22, at end insert: '(4A) Immediately after a disposal of the relevant interest which forms part of a transaction falling within paragraph (ii) of subsection (1) above, that subsection, this subsection and section 27 below shall have effect as if the new lease were itself the relevant interest'.—[Mr. Denzil Davies.]

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