§ Sir William ClarkI beg to move amendment No. 161, in page '77, line 36, at end add
'but nothing in this proviso shall apply where the reorganisation was effected in relation to shares of a company which are quoted on a recognised stock exchange'.This is a capital gains tax matter on the reorganisation of capital. The amendment is intended to take the stock market rights issues outside the clause. I know that my hon. and learned Friend the Minister is well seized of the point. There does not appear to be any reason why stock market rights issues should not be allowed to take place on normal terms, so that the price paid for rights shares becomes base value for tax purposes.
§ Mr. Peter ReesAs the House would expect, my hon. Friend raises a point of great importance. I hope that, on reflection, he will feel that the principle of his amendment is met adequately by the insertion of the words
otherwise than by way of a bargain made at arm's length",which I proposed in Committee and which were accepted. I hope that on that basis he will withdraw the amendment.
§ Sir William ClarkIn view of that explanation, I beg to ask leave to withdraw the amendment.
§ Amendment, by leave, withdrawn.