HC Deb 13 July 1978 vol 953 c1747

4.11 p.m.

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

I beg to move amendment no. 12, in page 22, line 8, at end insert— '(2) In paragraph 9(4) of that Schedule (associated company to be disregarded for purposes of paragraph 9(3)) for the words "which has not carried on any trade or business at any time in that accounting period" there shall be substituted the words "which was not a trading company, or has not carried on any trade, at any time in that accounting period". (3) In paragraph 10(3)(b) of that Schedule (calculation of distributable investment income) for "£500" there shall be substituted "£1,000".'. This amendment gives effect to two undertakings given in Committee by my right hon. Friend the Chief Secretary. The new subsection (2) fulfils the purpose of amendment no. 478 moved in Committee by the hon. Member for Gloucestershire, South (Mr. Cope) to exclude the company which is not a trading company from counting as an associated company and therefore from reducing the limits below which the estate or trading income of the trading company with which it is associated is disregarded or abated for apportionment purposes. The new subsection (3) is on the lines of the second half of the same hon. Member's amendment no. 89 also moved in Committee. The figure is £1,000 as my right hon. Friend said it would be.

Amendment agreed to.

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