§ Mr. Denzil Davies
I beg to move amendment no. 130, in page 56, line 5,'and the new sub-paragraph (2A) set out above applies where the disposition mentioned in that sub-paragraph is on or after that date.'The new sub-paragraph (2A) introduced by clause 60(1) ensures that the rules that govern availability of relief for Government securities held by discretionary trusts cannot be avoided by an appointment or advancement on new discretionary trusts. As it stands, the subparagraph operates where the advancement or appointment or new trusts took place on or after 27th March 1974. The amendment restricts the operation of the subparagraph so that it applies only when the appointment or advancement takes place on or after 20th April 1978.
I think that this amendment meets criticisms made in Committee by the hon. and learned Member for Dover and Deal (Mr. Rees) and others regarding the date of the operation of this part of the clause.
§ Mr. Peter Rees
Again, I rise to thank the Minister of State for having met the point put to him by myself and others of my right hon. and hon. Friends in Committee on the slightly retroactive effect of the clause. We were a little disturbed that those whose protected life interest trusts had been determined before the enactment of the Bill—in fact, before the Bill was introduced—might have had their status and the capital transfer tax consequences altered as a result of the Bill.
1843 The Minister, in his usual frank and open way, has listened to the arguments and been convinced by them. We are grateful that he has met our objections by moving amendment no. 130.
§ Amendment agreed to.