RELIEF FOR GIFTS OF BUSINESS ASSETS

HC Deb 13 July 1978 vol 953 cc1778-9

Mr. Denzil Davies

I beg to move, amendment no. 57, in page 31, leave out line 7 and insert— '(7) Subject to subsection (8) below, in this section and Schedule 7 to this Act'.

Mr. Deputy Speaker

With this we may take Government amendments nos. 58, 59 and 60.

Mr. Davies

These amendments extend the relief for gifts of business assets by expanding the word "trade" to include the activity of commercially managed woodlands. Section 33 of the Finance Act 1965 already recognises that the activity bears the characteristics of a trade by providing that the relief for the replacement of business assets should be available for assets used for the purpose of commercial woodlands. It seems reasonable to follow a similar course in clause 38 and schedule 7.

The amendments also put right a small technical defect in schedule 7. The Forestry Commission of Great Britain has brought it to our attention that clause 38 does not include the management of woodlands. This is something that we had not appreciated. I do not think that it was raised in Committee. Be that as it may, the amendments seek to put right that position. Again, it is a small measure of additional relief for woodlands.

Amendment agreed to.

Amendment made: No. 58, in page 31, line 12, at end insert— '(8) In this section and Schedule 7 to this Act and in determining whether a company is a trading company for the purposes of this section and that Schedule, the expression "trade" shall be taken to include the occupation of woodlands where the woodlands are managed by the occupier on a commercial basis and with a view to the realisation of profits.'.—[Mr. Bates.]