HL Deb 26 July 1983 vol 443 cc1430-1

[References are to Bill [12] as printed by the Commons.

In the Schedules: Schedule 6, page 72, line 7, at end insert—

GROUP II—WORKS OF ART, ETC.

Item No.

  1. 1. The disposal of an object with respect to which estate duty is not chargeable by virtue of section 3(3) of the Finance Act 1953, section 34(1) of the Finance Act 1956 or the proviso to section 40(2) of the Finance Act 1930.
  2. 2. The disposal of an object with respect to which capital transfer tax is not chargeable by virtue of section 32(3)(a) or (4), 34(6)(a), or the words following paragraph (b) of section 34(6) of the Finance Act 1975.
  3. 3. The disposal of property with respect to which capital transfer tax is not chargeable by virtue of section 78(4) of the Finance Act 1976.
    4. 1431
  4. 4. The disposal of an asset in a case in which any gain accruing on that disposal is not a chargeable gain by virtue of section 147(2) of the Capital Gains Tax Act 1979.".

The Lord Chancellor

My Lords, I beg to move that this House doth agree with the Commons in their said amendment. This is the amendment to which I referred in moving the Second Reading of the Bill. I explained that it would be necessary to make the amendment to take account of a change in the existing law made by the Value Added Tax (Works of Art, etc.) Order 1983—which I think was then within the time of Prayers or possible Prayers. That order exempted disposals of works of art of national importance from VAT in circumstances in which such disposals were already exempt from capital transfer tax or capital gains tax. As I explained on the earlier occasion, it is necessary for the provisions of that order to be incorporated in the present consolidation Bill, and that is now achieved by the present amendment. I beg to move.

Moved, That this House doth agree with the Commons in the said amendment.—(The Lord Chancellor.)

Lord Elwyn-Jones

My Lords, since this amendment complies with the suggestions and proposals of the noble and learned Lord when we considered this matter in this House, on behalf of my noble friends and myself I approve of what has happened.

The Lord Chancellor

My Lords, I am much obliged to the noble and learned Lord.

On Question, Motion agreed to.