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§ Mr. Peter ReesI beg to move amendment No. 90, in page 44, line 23, after '(2)', insert ', (2A)'.
Mr. Deputy SpeakerWith this it will be convenient to take the following:
Government amendments Nos. 91 and 92.
Amendment No. 93, in page 44, line 32, after 'fees', insert
'or receiving royalties or licence fees except where such royalties or licence fees arise out of or accrue in respect of assets produced or made or caused to be so produced or made by the company in the course of its trade.'.Government amendments Nos. 94 to 96 and 193.
§ Mr. ReesThe amendments are designed principally to admit as qualifying trades the ordinary trade of retail and wholesale, which was a point much pressed on us in Committee. I said that I would consider it. There were certain difficulties. I hope that we have found a solution that will commend itself to the House.
Amendment No. 93 is in the name of my hon. Friend the Member for Surrey, North-West (Mr. Grylls). I appreciate the difficulties. We shall consider the matter, but it will not be possible to do anything this year. We may return to it next year.
I also draw the House's attention to Government amendment No. 96, which will also admit farming companies. I hope that this will please the House.
§ Mr. GryllsAmendment No. 93 has some importance. It is to ensure that film and video makers who produce the software are included. Where they are earning royalties on assets that they have produced in their business and trade, there is no logic in not including them. The industry needs encouraging. It would be sensible if new money could be included in the scheme.
I am delighted to hear that my hon. and learned Friend will look at the matter and perhaps make some provision in the next financial year.
Amemdment agreed to.
Amendments made:
No. 91, in page 44, line 27, leave out 'goods'.
No. 92, in page 44, line 28, at end insert—
('aa) dealing in goods otherwise than in the course of an ordinary trade of wholesale or retail distribution; or'.No. 94, in page 44, line 36, leave out'paragraph (a), (b), (c) or (d) above'and insert'any of the foregoing paragraphs'.No. 95, in page 44, line 39, at end insert—'(2A) For the purposes of paragraph (aa) of subsection (2) above—1309 No. 96, in page 46, line 6, leave out paragraph (a).—[Mr. Peter Rees.]and in determining for the purposes of that paragraph whether a trade is an ordinary trade of wholesale or retail distribution regard shall be had to the extent to which it has the features mentioned in Schedule (Relief for investment in new corporate trades: wholesale and retail distribution) to this Act, those in Part I being regarded as indications that the trade is such an ordinary trade and those in Part II being regarded as indications of the contrary.'.
- (a) a trade of wholesale distribution is one in which the goods are offered for sale and sold to persons for resale by them or for processing and resale by them;
- (b) a trade of retail distribution is one in which the goods are offered for sale and sold to members of the general public for their use or consumption;