§ The Solicitor-GeneralI beg to move amendment No. 180, in page 86, line 21, leave out from 'year' to 'except' in line 23 and insert:
'an event occurs in respect of the settlement which could not have occurred'.
§ The Solicitor-GeneralThe Bill was amended in Committee to enable trustees of settlements set up before the introduction of capital transfer tax to elect for the existing capital transfer tax regime for discretionary trusts to continue to apply to their trusts for a limited period. It in effect postpones the implementation of the new regime that is introduced in the Bill. The seven amendments, which go together, extend the range of circumstances in which the election is available. They also effect the necessary consequential changes in relation to a trust tenure anniversary.
§ Mr. Robert SheldonWill the Solicitor-General tell us about the extension of the circumstances and what the circumstances apply to?
§ The Solicitor-GeneralThe provisions of part II of the schedule were introduced by the Government in Committee in fulfilment of an undertaking given at the time when the Bill was published. It has since been represented that the requirement that there must be a payment out of the trust if the period of election is to be extended to 1 April 1984 is far too restrictive. It will not cover the case where, for example, the proceedings before the court result in the creation of an interest in possession or an employee or charitable trust rather than a payment out, since none of those events will involve an actual payment out of the trust, and the original wording was limited to payments out.
I can enlarge on that if the right hon. Gentleman wishes.
§ Amendment agreed to.
§
Amendment made: No. 181, in page 86, line 24, at end insert
'and
(c) the event is one on which tax is (or, apart from Part H of Schedule 14 to this Act, would be) chargeable under this Chapter.'.—[Mr. Wakeham.]