§ Mr. Ian Stewart
I beg to move amendment No. 2, in page 3, line 11 leave out'is to be paid or left unpaid'and insert'for the transfer or for shares or rights to shares disposed of under subsection (1) above in connection with the reorganisation is to be paid or left unpaid for any period or, in the case of shares or rights to shares, is to be full consideration or discounted'.
§ Mr. Stewart
This and the related group of amendments are purely technical. Their object is to ensure that the Government do not receive part of the proceeds of the issue. Because of the curious structure of the TSB group and its legal position, the central board could acquire the shares and, when selling them on to the public, become liable to capital gains tax because of the method that was followed. It is not the intention of the Government to obtain tax revenue in that way; the proceeds of the issue should go to the TSB. This amendment to schedule 2, with accompanying amendments to clause 2, will ensure that that does not happen.
§ Question put and agreed to.
Amendments made: No. 3, in page 3, line 13 after `above', insert
'relating to the transfer of assets by virtue of section 3(1)(b) or (c) below'.
No. 4, in page 3, line 17 after 'of', insert 'or in connection with'.
No. 5, in page 3, line 19 leave out from 'Treasury' to first 'the' in line 21 and insert
'(if they have not already done so under subsection (1) above), dispose of any shares or rights to shares in the new holding company which are held by or, as the case may be, vested in'.— [Mr. Ian Stewart.]