HC Deb 12 July 1989 vol 156 cc1031-2

Amendment proposed: No. 92, in page 25, line 23, at end insert— `(2A) Where subsection (1) above applies in the case of emoluments received, or (as the case may be) received in the United Kingdom, after the death of the person who held the office or employment concerned, the charge shall be a charge on his executors or administrators; and accordingly income tax—

  1. (a) shall be assessed and charged on the executors or administrators, and
  2. (b) shall be a debt due from and payable out of the deceased's estate.'.—[Mr. Norman Lamont.]

Madam Deputy Speaker

With this it will be convenient to take Government amendments Nos. 93 and 94.

Mr. Nicholas Brown (Newcastle upon Tyne, East)

As I understand it, the purpose of Government amendment No. 92 is to clarify what I believe the Committee already thought was the position—that clause 37 is intended to refer to a personal representative's earnings after the taxpayer has died, and that Government amendments Nos. 93 and 94 merely confirm the timing of the implementation of that section. If it does anything more than that, the Financial Secretary should tell us, but that is my understanding.

Sir William Clark

There is still some concern among employers as to the practical effects of the clause. Will my right hon. Friend confirm that consultation with employers will continue to ameliorate any difficulties caused by the new PAYE rules? If difficulties and practical problems are drawn to his attention, will he deal with them in such a way that no additional burden is placed on employers?

Mr. Norman Lamont

I give my hon. Friend the Member for Croydon, South (Sir W. Clark) that assurance. One or two potential problems have been revealed, but on the whole we have taken the view that the problems have been a little exaggerated. Obviously we are open to consultation and we intend to consult. If it is necessary to make changes in the legislation next year to ameliorate matters we shall do that.

The amendment goes further than the hon. Member for Newcastle upon Tyne, East (Mr. Brown) said. It ensures that a charge to tax can be made on earnings received after a taxpayer's death and provides that the tax on such earnings shall be charged on the personal representatives and be a due debt from the estate. The amendment represents an addition, which makes a provision for after death, rather than being an amendment that drafts or clarifies.

Amendment agreed to.

Amendment made: No. 93, in page 27, line 19, at end insert— '(3) This section shall not apply in the case of emoluments of an office or employment held by a person who died before 6th April 1989.'.—[Mr. Norman Lamont.]

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