HC Deb 15 July 1981 vol 8 cc1339-40
Sir William Clark

I beg to move amendment No. 155, in page 76, line 26, leave out from beginning to end of line 10 on page 77 and insert— (2) Subsection (1) above shall no, apply to the acquisition of an asset if—

  1. (a) there is no corresponding disposal of it, and
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  2. (b) there is no consideration in money or money's worth or the consideration is of an amount or value lower than the market value of the asset.'.

Mr. Deputy Speaker (Mr. Bryant Godman Irvine)

With this we may discuss the following amendments:

Government amendment No. 156.

No. 157, in page 76, line 34, at end insert— '(3) Where a company acquires shares or securities of another company, which is controlled by it, the provisions of subsection (1) shall not apply except where the main purpose, or one of the main purposes, of the transaction is the avoidance of liability to capital gains tax or corporation tax.'. No. 262, in page 76, line 38, at end insert '; but in such a case both the disposal and the acquisition shall, subject to the provisions of this Act, be deemed to be for a consideration equal to:

  1. (a) the actual consideration (if any) or, if there is none,
  2. (b) such an amount as would secure that neither a gain nor a loss would accrue to the excluded person making the disposal'.
Government amendments Nos. 158 and 159.

Mr. Peter Rees

I hope that my hon. Friend's point is adequately covered by amendments Nos. 156 and 158, which I commend to the House.

Mr. Deputy Speaker

We are dealing with amendment No. 155.

Sir William Clark

I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Amendments made: No. 156, in page 76, line 26, after '(2)', insert 'Except in the case specified in subsection (3A) below'. No. 158, in page 76, line 38, at end insert— '(3A) The exception referred to in subsection (2) above is the acquisition by an individual of tangible movable property or currency in circumstances where there is a corresponding disposal by an individual who is neither resident nor ordinarily resident in the United Kingdom; and for this purpose "tangible movable property" does not include commodities of a kind dealt with on a terminal market, or a mere right in or over any property.'. No. 159, in page 77, line 10, at end insert— '(1A) In section 32 of the Capital Gains Tax Act 1979 (allowance of expenditure in computation of gains) after subsection (4) there shall be added— (5) Where—

  1. (a) a person acquires an asset for no consideration in money or money's worth or for a consideration of an amount or value lower than the market value of the asset, and is not treated under any provision of this Act as acquiring it for a consideration other than the actual consideration, and
  2. (b) there is a corresponding disposal of the asset by a person who is neither resident nor ordinarily resident in the United Kingdom, and
  3. (c) a charge to income tax, corporation tax or capital gains tax arises in respect of the acquisition,
the sums allowable under this section as a deduction in the computation made on the first-mentioned person's disposal of the asset shall include a sum equal to the amount in respect of which the charge arises. (6) The condition in paragraph (c) of subsection (5) above shall be taken to be satisfied where under section 77(3) of the Finance Act 1981 chargeable gains are treated as accruing to a person in any year by reason of his acquisition of an asset in that or an earlier year; and the reference in subsection (5) above to the amount in respect of which the charge arises shall be taken to be a reference to the amount of the gains treated as accruing to him.".'.—[Mr. Peter Rees.]

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