HC Deb 16 July 1980 vol 988 cc1677-8
Mr. Peter Rees

I beg to move amendment No. 19, in page 21, line 38, leave out 'be amended as follows' and insert 'have effect with the amendments specified in subsections (2) and (3) below'.

Mr. Deputy Speaker

With this it will be convenient to take Government amendment No. 20.

Mr. Rees

In view of the lateness of the hour and, I hope, the transparency of the amendments, I hope that I may leave the matter without explanation. If any points occur to hon. Members. I shall endeavour to satisfy them.

Amendment agreed to.

Amendment made: No. 20, in page 22, line 16, at end insert— '(4) In section 457 of the Taxes Act (income under settlement treated as the settlor's income except as respects certain payments made for full consideration etc.) after subsection (4) there shall be inserted— (4A) Where for any year of assessment there is made to or for the benefit of a former member, or the widow or a dependant of a deceased former member, of a partnership an annual payment which—

  1. (a) is excluded from the operation of subsection (1) above by virtue of paragraph (a) of that subsection or by virtue of subsection (2) above; and
  2. (b) falls short of the limit applying for that year under section 16 of the Finance Act 1974 (amount of partnership retirement annuity treated as earned income),
any additional annual payment made to or for the benefit of that person shall, notwithstanding that it is not made under a liability incurred for full consideration, be excluded from the operation of subsection (1) above to the extent to which it makes good that shortfall.".'.—[Mr. Peter Rees.]

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