HC Deb 13 July 1978 vol 953 cc1888-94


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—

  1. (a) in proportion to their respective taxable amounts for that year (disregarding for this purpose paragraphs (a) and (b) of subsection (4)); or
  2. 1889
  3. (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—

  1. (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
  2. (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—

  1. (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
  2. (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)—

  1. (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
  2. (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.


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)
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.

Schedule agreed to, and added to the Bill.

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