HC Deb 15 July 1981 vol 8 c1310
Mr. Peter Rees

I beg to move amendment No. 119, in page 56, line 9, after 'gain', insert 'or loss'.

Mr. Deputy Speaker

With this it will be convenient to take the following amendments:

Government amendment No. 120.

No. 121, in page 56, line 11, leave out 'the amount of the relief' and insert 'the income tax from which the individual has been relieved'. Government amendments Nos. 122 and 123.

Mr. Rees

This amendment is designed purely to ensure that no one will suffer capital gains tax on disposing of his shares if he incurs a real commercial loss. It was brought to my attention that the Bill as at present drafted could have resulted in that rather unattractive position. The amendment meets that point. On that basis, I commend it to the House.

Amendment agreed to.

Amendments made: No. 120, in page 56, line 11, leave out from 'reduced' to end of line 12 and insert—

  1. '(a) where paragraph (b) below does not apply, by an amount equal to one-half of the amount of the relief;
  2. (b) where those sums exceed the consideration, by an amount equal to
    1. (i) the whole amount of the relief; or
    2. (ii) the excess, whichever is the less;
    but the foregoing provisions of this subsection shall not apply to a disposal falling within section 44(1) of the Capital Gains Tax Act 1979 (disposals between husband and wife)'.
No. 122, in page 56, line 13, leave out subsection (2) and insert '(2) Section 65 of the said Act of 1979 (pooling of shares etc.) shall not apply to shares in respect of which any relief has been given and not withdrawn; and any question whether a disposal relates to such shares or to other shares shall for the purposes of capital gains tax be determined as for the purposes of section 55 above. (3) Where an individual holds ordinary shares in a company and the relief has been given in respect of some but not others, then, if there is within the meaning of section 77 of the said Act of 1979 a reorganisation affecting those shares, section 78 of that Act shall apply separately to the shares in respect of which the relief has been given and to the other shares (so that the shares of each kind are treated as a separate holding of original shares and identified with a separate new holding).'. No. 123, in page 56, line 23, leave out subsection (4).—[Mr. Peter Rees.]

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