HL Deb 15 December 1964 vol 262 cc359-60

3.0 p.m.

LORD CONESFORD

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper. In doing so, may I disclose that I hold some British Government dated securities as a trustee.

[The Question was as follows:

To ask Her Majesty's Government whether the Statement made by the Chancellor of the Exchequer on December 8, 1964, means that the owner of British Government and other dated securities who holds them until maturity will be regarded as having then disposed of them and be liable to capital gains tax accordingly.]

LORD RHODES

My Lords, I do not know whether I ought not to disclose myself the same interest as that referred to by the noble Lord who put the Question. So far as the Question is concerned, I cannot add to the Answer which my right honourable friend the Chancellor of the Exchequer gave on December 8.

LORD CONESFORD

MY Lords, I thank the noble Lord for his Answer. Is the Minister aware that many trustees have hitherto considered British Government dated securities suitable investments for trust funds, but that Her Majesty's Government have now made it impossible to form any rational estimate of their value? Do Her Majesty's Government wish trustees to avoid such securities in future?

LORD RHODES

The answer to the last part of the question is, certainly not. I appreciate that it is important—I do not know how important it is—but I will certainly convey to my right honourable friend the Chancellor of the Exchequer what the noble Lord has said.

VISCOUNT ADDISON

My Lords, can the noble Lord say how many other countries already have a capital gains tax?

LORD RHODES

That is rather off the beam; it is not quite on the same Question, but I can answer. It is 28, and it embraces practically the whole of EFTA and the E.E.C., the United States of America and Japan.

LORD CONESFORD

My Lords, have any of those countries ever introduced the tax by the method adopted by Her Majesty's Government?

LORD RHODES

I do not suppose any of those countries was so tardy in tackling tax reform as the late Government were.