§ Preliminary
§ 1. In this Schedule references to any subsections not otherwise identified are references to subsections of section 36 of this Act.
§ Husband and wife
§ 2.—(1) For any year of assessment during which a married woman is living with her husband subsections (1) to (4) shall apply to them as if the amounts of £1,000, £5,000 and £600 were divided between them—
- (a) in proportion to their respective taxable amounts for that year (disregarding for this purpose paragraphs (a) and (b) of subsection (4)); or
- (b) where the aggregate of those amounts does not exceed £1,000 and allowable losses accruing to either of them in a previous year are carried forward from that year, in such other proportion as they may agree.
§ (2) Sub-paragraph (1) above shall also apply for any year of assessment during a part of which (being a part beginning with 6th April) a married woman is living with her husband but—
- (a) her taxable amount for that year shall not include chargeable gains or allowable losses accruing to her in the remainder of the year and
- (b) subsection (1) to (4) shall apply to her (without the modificatin in sub-paragraph (1) above) for the remainder of the year as if it were a separate year of assessment.
§ 3.—(1) For any year of assessment during which or during a part of which (being a part beginning with 6th April) the individual is a married man whose wife is living with him and in relation to whom paragraph 3(1) of Schedule 10 to the Finance Act 1965 applies subsection (7) shall apply as if—
- (a) the chargeable gains accruing to him in the year included those accruing to her in the year or the part of the year; and
- (b) all the disposals of assets made by her in the year or the part of the year were made by him.
§ (2) Subsection (7) shall not apply for any year of assessment during which or during a part of which (being a part beginning with 6th April)—
- (a) the individual is a married man whose wife is living with him hut in relation to whom the said paragraph 3(1) does not apply; or
- (b) the individual is a married woman living with her husband.
§ Personal representatives
§ 4. For the year of assessment in which an individual dies and for the two next following years of assessment, subsections (1) to (4) and (7) shall apply to his personal representatives as they apply to an individual.
§ Trustees
§ 5.—(1) For any year of assessment during the whole or part of which settled property is held on trusts which secure that, during the lifetime of a mentally disabled person or a person in receipt of attendance allowance, any
| Division No. 270] | AYES | [10.37 p.m. |
| Adley, Robert | Biggs-Davison, John | Burden, F. A. |
| Aitken, Jonathan | Body, Richard | Butler, Adam (Bosworth) |
| Alison, Michael | Boscawen, Hon Robert | Carlisle, Mark |
| Amery, Rt Hon Julian | Bottomley, Peter | Chalker, Mrs Lynda |
| Atkins, Rt Hon H. (Spelthorne) | Bowden, A. (Brighton, Kemptown) | Channon, Paul |
| Atkinson, David (B'mouth, East) | Boyson, Dr Rhodes (Brent) | Churchill, W. S. |
| Awdry, Daniel | Braine, Sir Bernard | Clark, Alan (Plymouth, Sutton) |
| Bain, Mrs Margaret | Brittan, Leon | Clarke, Kenneth (Rushcliffe) |
| Baker, Kenneth | Brocklebank-Fowler, C. | Cooke, Robert (Bristol W) |
| Banks, Robert | Brooke, Hon Peter | Cope,John |
| Bell, Ronald | Brotherton, Michael | Cormack, Patrick |
| Bendall, Vivian | Brown, Sir Edward (Bath) | Costain, A. P. |
| Bennett, Sir Frederic (Torbay) | Bryan, Sir Paul | Craig, Rt Hon W. (Belfast E) |
| Bennett, Dr Reginald (Fareham) | Buck, Antony | Crowder, F. P. |
| Berry, Hon Anthony | Budgen, Nick | Dean, Paul (N Somerset) |
| Biffen, John | Bulmer, Esmond | Dodsworth, Geoffrey |
§ of the property which is applied, and any income arising from the property, is applied only or mainly for the benefit of that person, subsections (1) to (4) and (7) shall apply to the trustees of the settlement as they apply to an individual.
§ (2) In this paragraph "mentally disabled person" means a person who by reason of mental disorder within the meaning of the Mental Health Act 1959 is incapable of administering his property or managing his affairs and "attendance allowance" means an allowance under section 35 of the Social Security Act 1975 or the Social Security (Northern Ireland) Act 1975.
§ 6.—(1) For any year of assessment during the whole or part of which any property is settled property, not being a year of assessment for which paragraph 5(1) above applies, subsections (1) to (4) and (7) shall apply to the trustees of a settlement as they apply to an individual but with the following modifications.
§ (2) In subsections (1), (4) and (7) for "£1,000" there shall be substituted "£500".
§
(3) For subsections (2) and (3) there shall he substituted—
(2) If an individual's taxable amount for a year of assessment exceeds £500 the amount of capital gains tax to which he is chargeable for that year shall not exceed one-half ot the excess.
§ (4) In subsection (7) for "£5,000" there shall be substituted "£2,500".
§ (5) This paragraph applies where the settlement was made before 7th June 1978.'.—[Mr. Bates.]
§ Brought up, and read the First and Second time.
§
Amendment (c) proposed to the proposed schedule, to leave out
'Where the settlement was made before June 1978'
and insert
'Whenever the settlement was made'.—[Mr. Lawson.]
§ Question put, That the amendment made:—
§ The House divided: Ayes 241, Noes 257.
| Drayson, Burnaby | King, Tom (Bridgwater) | Renton, Tim (Mid-Sussex) |
| Durant, Tony | Kitson, Sir Timothy | Rhodes James, R. |
| Dykes, Hugh | Knight, Mrs Jill | Rhys Williams, Sir Brandon |
| Eden, Rt Hon Sir John | Knox, David | Ridley, Hon Nicholas |
| Edwards, Nicholas (Pembroke) | Lamont, Norman | Ridsdale, Julian |
| Elliott, Sir William | Langford-Holt, Sir John | Rifkind, Malcolm |
| Emery, Peter | Latham, Michael (Melton) | Roberts, Wyn (Conway) |
| Eyre, Reginald | Lawrence, Ivan | Rodgers, Sir John (Sevenoaks) |
| Fairbairn, Nicholas | Lawson, Nigel | Rossi, Hugh (Hornsey) |
| Farr, John | Le Marchant, Spencer | Rost, Peter (SE Derbyshire) |
| Fell, Anthony | Lester, Jim (Beeston) | Royle, Sir Anthony |
| Finsberg, Geoffrey | Lloyd, Ian | Sainsbury, Tim |
| Fisher, Sir Nigel | Loveridge, John | St. John-Stevas, Norman |
| Fletcher-Cooke, Charles | Luce, Richard | Scott, Nicholas |
| Fookes, Miss Janet | McCrindle, Robert | Scott-Hopkins, James |
| Forman, Nigel | Macfarlane, Neil | Shaw, Giles (Pudsey) |
| Fox, Marcus | MacGregor, John | Shaw, Michael (Scarborough) |
| Galbraith Hon T. G. D. | MacKay, Andrew (Stechford) | Shelton, William (Streatham) |
| Gardiner, George (Reigate) | Macmillan, Rt Hon M. (Farnham) | Shepherd, Colin |
| Gardner, Edward (S Fylde) | McNair-Wilson, M. (Newbury) | Shersby, Michael |
| Gilmour, Rt Hon Sir Ian (Chesham) | McNair-Wilson, P. (New Forest) | Sims, Roger |
| Glyn, Dr Alan | Madel, David | Sinclair, Sir George |
| Godber, Rt Hon Joseph | Marshall, Michael (Arundel) | Skeet, T. H. H. |
| Goodhart, Philip | Marten, Neil | Smith, Dudley (Warwick) |
| Goodlad, Alastair | Mates, Michael | Smith, Timothy John (Ashfield) |
| Gorst, John | Mather, Carol | Speed, Keith |
| Gow, Ian (Eastbourne) | Maude, Angus | Spence, John |
| Gower, Sir Raymond (Barry) | Maudling, Rt Hon Reginald | Spicer, Jim (W Dorset) |
| Grant, Anthony (Harrow C) | Maxwell-Hyslop, Robin | Spicer, Michael (S Worcester) |
| Grieve, Percy | Mayhew, Patrick | Sproat, Iain |
| Griffiths, Eldon | Meyer, Sir Anthony | Stainton, Keith |
| Grylls, Michael | Miller, Hal (Bromsgrove) | Stanbrook, Ivor |
| Hail-Davis, A. G. F | Mills, Peter | Stanley, John |
| Hamilton, Archibald (Epsom & Ewell) | Miscampbell, Norman | Steen, Arthory (Wavertree) |
| Hamilton, Michael (Salisbury) | Mitchell, David (Basingstoke) | Stewart, Rt Hon Donald |
| Hampson, Dr Keith | Moate, Roger | Stewart, Ian (Hitchin) |
| Hannam, John | Moore, John (Croydon C) | Stokes, John |
| Harrison, Col Sir Harwood (Eye) | More, Jasper (Ludlow) | Stradling Thomas, J. |
| Harvie Anderson, Rt Hon Miss | Morgan, Geraint | Tapsell, Peter |
| Haselhurst, Alan | Morgan-Giles, Rear-Admiral | Tebbit, Norman |
| Hastings, Stephen | Morris, Michael (Northampton S) | Temple-Morris, Peter |
| Havers, Rt Hon Sir Michael | Morrison, Charles (Devizes) | Thatcher, Rt Hon Margaret |
| Hawkins, Paul | Morrison, Hon Peter (Chester) | Thomas, Rt Hon P. (Hendon S) |
| Hayhoe, Barney | Neave, Airey | Townsend, Cyril D. |
| Higgins. Terence L. | Nelson, Anthony | Trotter, Neville |
| Hodgson, Robin | Neubert, Michael | van Straubenzee, W. R. |
| Holland, Philip | Newton, Tony | Vaughan, Dr Gerard |
| Hordern, Peter | Normanton, Tom | Viggers, Peter |
| Howell, David (Guildford) | Nott, John | Wakeham, John |
| Howell, Ralph (North Norfolk) | Onslow, Cranley | Walder, David (Clitheroe) |
| Hunt, David (Wirral) | Osborn, John | Walker, Rt Hon P. (Worcester) |
| Hunt, John (Ravensbourne) | Page, John (Harrow West) | Walker-Smith, Rt Hon Sir Derek |
| Hurd, Douglas | Page, Rt Hon R. Graham (Crosby) | Walters, Dennis |
| Hutchison, Michael Clark | Page, Richard (Workington) | Warren, Kenneth |
| Irving, Charles (Cheltenham) | Parkinson, Cecil | Weatherill, Bernard |
| James, David | Pattle, Geoffrey | Wells, John |
| Jenkin, Rt Hon P. (Wanst'd & W'df'd) | Percival, Ian | Whitney, Raymond |
| Jessel, Toby | Peyton, Rt Hon John | Wiggin, Jerry |
| Johnson Smith, G. (E. Grinstead) | Pink, R. Bonner | Wilson, Gordon (Dundee E) |
| Jones, Arthur (Daventry) | Prentice, Rt Hon Reg | Winterton, Nicholas |
| Jopling, Michael | Price, David (Eastleigh) | Wood, Rt Hon Richard |
| Joseph. Rt Hon Sir Keith | Raison, Timothy | |
| Kellett-Bowman, Mrs Elaine | Rathbone, Tim | TELLERS FOR THE AYES: |
| Kilfedder, James | Rees, Peter (Dover & Deal) | Sir George Young and |
| Kimball, Marcus | Reid, George | Lord James Douglas Hamilton |
| King, Evelyn (South Dorset) | Renton, Rt Hon Sir D. (Hunts) | |
| NOES | ||
| Abse, Leo | Boothroyd, Miss Betty | Carter-Jones, Lewis |
| Anderson, Donald | Bottomley, Rt Hon Arthur | Cartwright, John |
| Archer, Rt Hon Peter | Boyden, James (Bish Auck) | Castle, Rt Hon Barbara |
| Armstrong, Ernest | Bradley, Tom | Clemitson, Ivor |
| Ashley, Jack | Bray, Dr Jeremy | Cocks, Rt Hon Michael (Bristol S) |
| Atkins, Ronald (Preston N) | Brown, Hugh D. (Provan) | Coleman, Donald |
| Atkinson, Norman (H'gey, Tott'ham) | Brown, Robert C. (Newcastle W) | Cook, Robin F. (Edin C) |
| Bagier, Gordon A. T. | Brown, Ronald (Hackney S) | Corbett, Robin |
| Barnett, Guy (Greenwich) | Buchan, Norman | Cowans, Harry |
| Barnett, Rt Hon Joel (Heywood) | Buchanan, Richard | Cox, Thomas (Tooting) |
| Bates, Alt | Callaghan, Rt Hon J. (Cardiff SE) | Craigen, Jim (Maryhill) |
| Bean, R. E. | Callaghan, Jim (Middleton & P) | Crawshaw, Richard |
| Bidwell, Sydney | Campbell, Ian | Cronin, John |
| Bishop, Rt Hon Edward | Canavan, Dennis | Crowther, Stan (Rotherham) |
| Blenkinsop, Arthur | Carmichael, Neil | Cryer, Bob |
| Booth, Rt Hon Albert | Carter, Ray | Cunningham, G. (Islington S) |
| Cunningham, Dr J. (Whiteh) | Jones, Alec (Rhondda) | Robertson, George (Hamilton) |
| Davidson, Arthur | Jones, Dan (Burnley) | Robinson, Geoffrey |
| Davies, Bryan (Enfield N) | Judd, Frank | Roderick, Caerwyn |
| Davies, Rt Hon Denzil | Kerr, Russell | Rodgers, George (Chorley) |
| Davies, Ifor (Gower) | Kinnock, Neil | Rodgers, Rt Hon William (Stockton) |
| Davis, Clinton (Hackney C) | Lambie, David | Rooker, J. W. |
| Deakins, Eric | Lamond, James | Roper, John |
| de Freitas, Rt Hon Sir Geoffrey | Latham, Arthur (Paddington) | Rose, Paul B. |
| Dell, Rt Hon Edmund | Leadbitter, Ted | Ross, Stephen (Isle of Wight) |
| Dempsey, James | Lee, John | Ross, Rt Hon W. (Kilmarnock) |
| Dewar, Donald | Lestor, Miss John (Eton & Slough) | Rowlands, Ted |
| Dormand, J. D. | Lever, Rt Hon Harold | Ryman, John |
| Douglas-Mann, Bruce | Lewis, Ron (Carlisle) | Sandelson, Neville |
| Dunnett, Jack | Loyden, Eddie | Sever, John |
| Dunwoody, Mrs Gwyneth | Luard, Evan | Shaw, Arnold (Ilford South) |
| Eadie, Alex | Lyon, Alexander (York) | Sheldon, Rt Hon Robert |
| Edwards, Robert (Wolv SE) | Lyons, Edward (Bradford W) | Shore, Rt Hon Peter |
| Ellis, John (Brigg & Scun) | Mabon, Rt Hon Dr J. Dickson | Short, Mrs Renée (Wolv NE) |
| Ellis, Tom (Wrexham) | McCartney, Hugh | Silkin, Rt Hon John (Deptford) |
| English, Michael | McDonald, Dr Oonagh | Silkin, Rt Hon S. C. (Dulwich) |
| Evans, Fred (Caerphilly) | McElhone, Frank | Silverman, Julius |
| Evans, Ioan (Aberdare) | MacFarquhar, Roderick | Skinner, Dennis |
| Evans, John (Newton) | McGuire, Michael (Ince) | Smith, John (N Lanarkshire) |
| Ewing, Harry (Stirling) | MacKenzie, Rt Hon Gregor | Snape, Peter |
| Faulds, Andrew | McMillan, Tom (Glasgow C) | Spearing, Nigel |
| Fernyhough, Rt Hon E. | McNamara, Kevin | Spriggs, Leslie |
| Fitch, Alan (Wigan) | Madden, Max | Stallard, A. W. |
| Flannery, Martin | Magee, Bryan | Steel, Rt Hon David |
| Fletcher, Ted (Darlington) | Mahon, Simon | Stewart, Rt Hon M. (Fulham) |
| Ford, Ben | Mallalieu, J. P. W. | Stoddart, David |
| Fowler, Gerald (The Wrekin) | Marshall, Dr Edmund (Goole) | Stott, Roger |
| Fraser, John (Lambeth, N'w'd) | Marshall, Jim (Leicester S) | Strang, Gavin |
| Freeson, Rt Hon Reginald | Maynard, Miss Joan | Summerskill, Hon Dr Shirley |
| Freud, Clement | Meacher, Michael | Taylor, Mrs Ann (Bolton W) |
| Garrett, John (Norwich S) | Mikardo, Ian | Thomas, Dafydd (Merioneth) |
| Garrett, W. E. (Wallsend) | Millan, Rt Hon Bruce | Thomas, Jeffrey (Abertillery) |
| George, Bruce | Miller, Dr M. S. (E Kilbride) | Thomas, Mike (Newcastle E) |
| Gilbert, Rt Hon Dr John | Mitchell, Austin (Grimsby) | Thomas, Ron (Bristol NW) |
| Ginsburg, David | Mitchell, R. C. (Soton, Itchen) | Thorne, Stan (Preston South) |
| Golding, John | Molloy, William | Tilley, John |
| Gould, Bryan | Morris, Alfred (Wythenshawe) | Tinn, James |
| Grant, John (Islington C) | Morris, Rt Hon J. (Aberavon) | Tomlinson, John |
| Grocott, Bruce | Moyle, Roland | Tomney, Frank |
| Hamilton, James (Bothwell) | Mulley, Rt Hon Frederick | Torney, Tom |
| Hamilton, W. W. (Central Fife) | Murray, Rt Hon Ronald King | Urwin, T. W. |
| Hardy, Peter | Newens, Stanley | Varley, Rt Hon Eric G. |
| Harrison, Rt Hon Walter | Noble, Mike | Walker, Harold (Doncaster) |
| Hart, Rt Hon Judith | Oakes, Gordon | Walker, Terry (Kingswood) |
| Healey, Rt Hon Denis | Ogden, Eric | Ward, Michael |
| Heffer, Eric S. | O'Halloran, Michael | Watkins, David |
| Hooley, Frank | Orme, Rt Hon Stanley | Watkinson, John |
| Horam, John | Ovenden, John | Weetch, Ken |
| Howell, Rt Hon Denis (B'ham, Sm H) | Owen, Rt Hon Dr David | Weitzman, David |
| Howells, Geraint (Cardigan) | Padley, Walter | Wellbeloved, James |
| Hoyle, Doug (Nelson) | Palmer, Arthur | White, Frank R. (Bury) |
| Huckfield, Les | Pardoe, John | White, James (Pollok) |
| Hughes, Mark (Durham) | Park, George | Whitehead, Phillip |
| Hughes, Robert (Aberdeen N) | Parker, John | Whitlock, William |
| Hughes, Roy (Newport) | Parry, Robert | Willey, Rt Hon Frederick |
| Hunter, Adam | Pavitt, Laurie | Williams, Rt Hon Alan (Swansea W) |
| Irvine, Rt Hon Sir A. (Edge Hill) | Pendry, Tom | Williams, Rt Hon Shirley (Hertford) |
| Irving, Rt Hon S. (Dartford) | Penhaligon, David | Wilson, William (Coventry SE) |
| Jackson, Miss Margaret (Lincoln) | Phipps, Dr Colin | Wise, Mrs Audrey |
| Janner, Greville | Prescott, John | Woodall, Alec |
| Jay, Rt Hon Douglas | Price, C. (Lewisham W) | Woof, Robert |
| Jeger, Mrs Lena | Price, William (Rugby) | Wrigglesworth, Ian |
| Jenkins, Hugh (Putney) | Radice, Giles | Young, David (Bolton E) |
| John Brynmor | Rees, Rt Hon Merlyn (Leeds S) | |
| Johnson, James (Hull West) | Richardson, Miss Jo | TELLERS FOR THE NOES: |
| Johnson, Walter (Derby S) | Roberts, Albert (Normanton) | Mr. Ted Graham and |
| Johnston, Russell (Inverness) | Roberts, Gwilym (Cannock) | Mr. Joseph Dean. |
§ Question accordingly negatived.
1894§ Schedule agreed to, and added to the Bill.