§ Mr. Nicholas BrownI beg to move amendment No. 39, in page 64, line 28, at end insert
'save that this subsection shall not operate to prevent subsection (1) above from applying where the aggregate values of any benefits which any persons mentioned above receive or are entitled to receive does not exceed two and a half per cent. of the amount of the contribution.'.We discussed a similar issue to the one raised by the amendment during a debate on the Floor of the House on Tuesday 15 May, which ended with a Division. We have advanced similar arguments to the Government on gift aid, and they have reconsidered their position. When we discussed the matter on 15 May, the Financial Secretary 812 said that he accepted that the amendments had been moved in a helpful spirit and that he accepted the spirit behind them. Even though he had no disagreement with them in principle or in substance, the Government believed that the amendments would prove onerous, so they were rejected.We have returned to the point because the Government have had second thoughts about a similar issue, gift aid. If it is right to think again about the de minimis principle as it affects gifts aid, surely it is right to do so in respect of tax. I hope that the Government will have second thoughts about training and enterprise councils. The amendment is moved in a bipartisan spirit, and I hope that it will be accepted by the Government.
§ Mr. RyderAs the hon. Member for Newcastle upon Tyne, East (Mr. Brown) said, the amendment relates to a point that we discussed in Committee: that the relief for business contributions to training and enterprise councils and local enterprise councils will not apply if the contributor receives a benefit in connection with the making of the contribution.
The amendment is designed to provide that, if a company receives benefits connected with a particular contribution that do not exceed in aggregate value 2.5 per cent. of the amount of the contribution, they will not prevent the contribution from attracting relief. We have introduced a de minimis cut-off broadly of that kind in relation to the gift aid provisions to which the hon. Member for Newcastle upon Tyne, East referred, but with a ceiling of £250. The amendment, however, has no ceiling. We did not believe that it was necessary to complicate this much more specific and limited provision by providing a similar cut-off. It is much more likely that the de minims benefits will be received in connection with a donation to a charity rather than to a TEC—for example, free tickets to the opera in return for a donation to Covent Garden, or free attendance at charitable events.
Perhaps the most likely legitimate benefit that a company is likely to receive in return for a contribution to a TEC is some measure of free training for its work force. My right hon. Friend gave the hon. Member for Derby, South (Mrs. Beckett) an assurance both in our previous debate and subsequently by letter that the Inland Revenue will ignore benefits of that kind in individual cases. However, I recognise that the Opposition are concerned about the benefits rules in clause 76. I believe that their concern is misplaced, but I am ready to give the hon. Gentleman a firm undertaking that, if there is any suggestion that in practice the rules are inhibiting businesses from contributing to TECs and LECs, as we all want them to do, we shall return to the point.
§ Mr. Nicholas BrownThat is a very helpful assurance, which I welcome. Therefore, I beg to ask leave to withdraw the amendment.
§ Amendment, by leave, withdrawn.