HC Deb 14 July 1977 vol 935 cc808-9

'(1) After paragraph 11(10) of Schedule 5 to the Finance Act 1975 (under which an interest in possession acquired by a company is not treated as such an interest unless the company's business consists wholly or mainly in the acquisition of interests in settled property) there shall be inserted— (10A) Where the acquisition mentioned in paragraph (b) of sub-paragraph (10) above was before 14th March 1975—

  1. (a) the condition mentioned in paragraph (a) of that sub-paragraph shall be treated as satisfied if the business of the company was at the time of the acquisition such as is described in that paragraph; and
  2. (b) that condition need not be satisfied if the company is authorised to carry on long term business under Part I of the Insurance Companies Act 1974 or Part II of the Insurance Companies (Northern Ireland) Order 1976.".

(2) This section shall be deemed to have come into force on 29th March 1977.'.—[Mr. Denzil Davies.]

Brought up, and read the First time.

The Minister of State, Treasury (Mr. Denzil Davies)

I beg to move, That the clause be read a Second time.

The clause deals with the capital transfer tax treatment of interest in settled property acquired by insurance companies and other companies. It meets the substance of a point that was raised in Committee on New Clause 131, which was tabled by the hon. Member for Cirencester and Tewkesbury (Mr. Ridley) and the hon. and learned Member for Dover and Deal (Mr. Rees). The new clause was not actually moved, but New Clause 40 meets the substance of the point that was raised in Committee in respect of settled property and insurance companies. It is a limited clause. It deals with a specific matter raised by the right hon. and learned Member for Surrey, East (Sir G. Howe) in a letter of 3rd June to my right hon. Friend the Chief Secretary.

Question put and agreed to.

Clause read a Second time, and added to the Bill.

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